Understanding Operations, Logistics and Supply Chain Management

This report discusses the theories and concepts of Total Quality Management (TQM) and lean manufacturing in the context of operations, logistics, and supply chain management. It explores the implementation strategies and benefits of TQM and lean manufacturing in companies like Rolls-Royce. The report also highlights the importance of the triple bottom line concept in corporate social responsibility.

Understanding Operations,
Logistics and Supply
Chain Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
Corresponding theories and concepts of TQM.............................4
Corresponding theories and concepts of lean manufacturing.....5
Triple bottom line........................................................................7
RECOMMANDATION...................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The operation management is a process in which the business administration
create the highest level of efficiency and convert the raw material into goods to maximize the
profit. It involves directing, planning, creating, coordinating and controlling all the resources
which are required to produce goods. As it is important for the business to organize it helps
effectively control, manage and supervise peoples, services and goods. The operational process
is creating a set of target that produces a specific product or service. This report is based on the
case study of Rolls-Royce Company in respect to its operation management and logistic
management practices. The organization is “ Rolls-Royce” which is founded in 1998 in UK and
the founder of the company is Henry Royce and Charles Rolls. Its one of the multinational car
manufacturing company having headquarter in London. The common brands under which
company sells its car are phantom, Cullinan, Ghost, Wraith and Dawn. (Murphy and Murphy,
2018). Rolls-Royce become more popular and successful in the launch of the new brand
Phantom as the company is the largest producer of cars. Henceforth, report is introduced the
logistic management which is a part of supply chain process that implement, control the
efficient, plans, effective flow of products and services to meet the customers requirements from
the point of origin to the point of consumption with the aspect of providing satisfaction to the
customers. It deals with the flow of data and manage the tools, stock, manufacturing,
transportation, production packaging, warehousing, order fulfillment, scheduling and security.
The objective of logistic management is to fulfill the requirement of the customers with effective
cost manner. It is also studied in the report Supply chain management is handling the entire
manufacturing process-starting from the delivery of the product till final consumption by the
consumers.
Furthermore, this report will also consider theory of Total Quality Management (TQM) which
defines the management focus towards the long-term success by having lower-level workers
with higher-ranking executive director and give direction to improve the quality of the product
so that the customers are satisfaction with the goods and services provided by them and the
organization can increase the market competitions. TQM is important because it improves the
workflow and the quality of the products and fulfill the customers expectations so that they can
satisfy their needs and wants. Another theory is Lean Manufacturing model which focuses
towards the process by which a company can minimize the wastage and maximize the
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productivity so that the organization can increase the market share and compete with the
competitors.
MAIN BODY
Corresponding theories and concepts of TQM
Total Quality Management is a continual process of detecting, reducing and eliminating
errors in manufacturing, well organizing supply chain management, improving customer's
experience and ensuring that the employees are work efficiently with proper speed with training
(Bolaton, 2016). It is a participative, systematic approach to planning and implementing a
constant organizational improvement process. Rolls-Royce uses TQM to improve the customer
oriented approach or process and aims for continuous improvement of business operations. Rolls
Royce always known for its high quality products through its ability to deliver reliability and
innovative products which integrates with various customers need and expectations. By doing so
they ensure continuous improvement in their offerings.
The key principles of TQM used by Rolls-Royce are :
· Customer centric approach: Rolls-Royce has the customer centric approach in its
organization as the consumers are the ultimate judge to determine whether the products and
services are of superior quality or not. No matter how many resources have been pooled in the
training of employees by the company, upgrading machines, technology advancements, etc but
at the end of the day the consumers are the final judge in deciding upon the quality of product.
Rolls-Royce is known for taking timely suggestions and opinions from their customers and
incorporating the same in their production process.
· Employee involvement: The firm ensures the totCorresponding theories and concepts of
TQMal employee involvement in achieving objectives and goals which lead to employee
empowerment and active participation of all employees in decision-making and all
quality addressing related problems. Here they involve employees in decision making
activities and ensure implementations of quality management successfully.
· Strategic approach to improvements: Rolls-Royce adopts the strategic approach towards
quality improvements to achieve vision and mission of the company.
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· Integrated system: Rolls-Royce ensures that every employee in their organization must
have understanding of the quality policies, standards, objectives and processes. To achieve
excellence and customers expectations it is very important to promote quality work.
The benefits arising from the implementation of TQM in Rolls-Royce are:
· This increases the awareness of quality culture in the organization.
· Special attention on teamwork achieved by the company.
· TQM leads to a commitment towards continuous improvements the employees of the
organization work accordingly to achieve Rolls-Royce objectives and goals and work
towards the achievement of the company vision and mission.
There are few essential requirements for successful implementation of TQM which Rolls-
Royce follows are commitment towards the quality improvement (Pambreni, 2019). An
understood commitment from the top management, breaking down the barriers of quality
improvements and changing attitude towards the environment must be needed. Another one is
proper training with respect to attitude and culture, continuous improvements and customer
focus are also important for implementation.
Following are the Total quality management beliefs that are followed by Rolls-Royce:· Satisfaction level of the consumers are the measurement of quality.· Look everyone with same perspective, or we can say deal everyone as an owner.· Continuous improvements in the quality of the products must be required for betterment
of the business.· The key of quality improvements are the effective analysis of the processes.· Rolls-Royce ensures the consistent, active and enabling leadership by managers at each
level of the organization.
Corresponding theories and concepts of lean manufacturing
Second topic chosen in this report is cost. Cost is a very important factor of concern in
every business because it has a direct impact on the profitability of the company. Every company
has a distinct department known as operations or operations management whose duty is to
monitor and control the cost of operations during production process. Every manager remain
concern about the cost associated with the operations and ways to minimise the same because
only by minimising the costs the companies can achieve efficiency and improvise its
profitability. In operations management, there is a theory or concept known as lean production or
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manufacturing (Alhuraish, Robledo, and Kobi, 2017). This is an approach of operations
management where basic and main concern is given on how to cut on various extraordinary
costs which reduces the profitability of the company. This act of cost cutting involves improving
processes right from product design till distribution to minimise wastages. Three main
components of lean system include simple design of the product, improvements in the
production system and continuous repetition of the above two. Lean production aims at reducing
unnecessary wastages during production without compromising any productivity. This concept
help in achieving goals such as quality improvement, waste elimination, effectiveness and
efficiency in operations of the company (Bai, Satir, and Sarkis, 2019). A good controlling
system can be established to achieve zero defects goals. A critique in against of this system
states that there are many companies introduces lean system in their operations but couldn't reap
its benefits due to its improper implementation. Sometimes management introduces lean system
throughout the organisation without consulting their staff members in advance where the
purpose of lean manufacturing can't be fulfilled because from management perspective it is good
idea but actual problem can't be addressed. If lean system is forcefully imposed on workers then
also they will never produce the very purpose of lean manufacturing. There is need of smartness
and expertise from the operations managers in implementing this concept because if the system
achieves more efficiency and accordingly more products but the productivity is in excess of
demand in the market will create wastage only. So the balance must be maintain between
demand and productivity (Zhang, Narkhede, and Chaple, 2017). Rolls-Royce Limited, a UK
based company has introduced this concept in its car manufacturing Phantom to achieve world
class manufacturing which helps in improving methods. The results are quite satisfactory where
more opportunities with more focused efforts are explored and appropriate attention has been
given towards the role of people and structure within the whole organisation. This has been
applied since 2000 in Rolls-Royce and right from that it has experience many benefits like
quality, processes and logistics improvements. Another company in the same industry or
competitor of Rolls-Royce, which is Bentley Motors Limited who has implemented the lean
manufacturing system in the production processes in order to improvise various processes
involved in its production and cost reduction therein (Ramadas, and Satish, 2018). They have
also benefited from the system in the same way in terms of quality improvements, waste
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elimination and accordingly improving profitability. They have also introduces the lean
production system many years ago.
Triple bottom line
It states that the company should commit focusing on social and environmental aspect as
they considered the economic factor for the company as profits. The corporates should commit
the corporate social responsible and the impact on environment over the time. The main concept
of the line is not to ignore the people and planet and not just focusing on the profits by the
production of the products operational activities. Economics approach state the bottom line of
the company from the operations I.e. profits which share if the bottom line is used or not. When
it shows from the bottom line pointy of view, profits will empower and sustain to all the
stakeholders. Triple bottom line shows the advance goal and sustainability in businesses, which
companies usually ignore beyond the profits of environmental and social issues which are
caused due to operational activities. Companies actions impact is held on all the people who are
connected with which include supplier of raw material, customers, employees to CEO of the
company. All of them are considered as the people who are offered with healthy work space,
safety, opportunities and education and not exploit any rules and regulation of the government.
Whereas, triple bottom line companies take the initiated to develop the ecological surroundings.
The companies should acquire the Going Green initiative to use the products and update the
ecological products which can be reused by people which should be more profitable for the
companies in long run. Triple bottom line shows the true cost of the entire operation cycle and
the actions that regards to environment. The dispose of harmful toxic chemicals or plastics used
by the company should be ignored and renewable items should be used to protect the
environment.
RECOMMANDATION
The company should focus on the customer orientation and the quality of the product
which are demanded by their customer base. The company should improve technology and
updated production process techniques to reduce the cost and time with effective working of
employees. Rolls-Royce should also hire the efficient working employees to achieve the target
goal and cost effective process can be maintained by the company to offer the quality and
control price product in the market. The company should acquire the lean management system to
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reduce the wastage and the cost effective product for the betterment of customers and to move
towards ecosystem.
CONCLUSION
From the above information it can be concluded that Total Quality Management (TQM)
Model and lean manufacturing theories are discussed in the report and setting the plan about the
quality management of the product without wastage of the goods and improve the production
process as to maximize the profits and reduce the cost of the product. The company also look
into Lean management system which reduces the cost and wastage of the production raw
material to avoid the environmental harm and initiate with ecosystem by hiring the effective
employees and using updated technology for the smooth work flow of operation.
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REFERENCES
Books and Journals
Alhuraish, I., Robledo, C. and Kobi, A., 2017. A comparative exploration of lean manufacturing
and six sigma in terms of their critical success factors. Journal of cleaner
production, 164, pp.325-337.
Bai, C., Satir, A. and Sarkis, J., 2019. Investing in lean manufacturing practices: an
environmental and operational perspective. International Journal of Production
Research, 57(4), pp.1037-1051.
Bolatan, and et.al., 2016. The impact of technology transfer performance on total quality
management and quality performance. Procedia-Social and Behavioral Sciences. 235.
pp.746-755.
Murphy, P.E. and Murphy, C.E., 2018. Sustainable Living: Rolls-Royce. In Progressive
Business Models (pp. 263-286). Palgrave Macmillan, Cham.
Pambreni, and et.al., 2019. The influence of total quality management toward organization
performance. Management Science Letters. 9(9). pp.1397-1406.
Ramadas, T. and Satish, K. P., 2018. Identification and modeling of employee barriers while
implementing lean manufacturing in small-and medium-scale enterprises. International
Journal of Productivity and Performance Management.
Zhang, L., Narkhede, B. E. and Chaple, A. P., 2017. Evaluating lean manufacturing barriers: an
interpretive process. Journal of Manufacturing Technology Management.
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