Comprehensive Report on Operations Management for BHP Billiton Company

This report provides an in-depth analysis of operations management within BHP Billiton, a multinational mining, metals, and petroleum company. The report begins with an introduction to operations management, defining its role in enhancing efficiency and profitability. It then delves into the challenges faced by BHP Billiton, including technological integration issues, the impact of globalization, changing customer expectations, job design, quality management, and global manufacturing complexities. The second part of the report focuses on the impact of operational success on the business, examining factors such as goods and services design, supply chain design, and resource management. The report concludes with a summary of the key findings, highlighting the importance of effective operations management for the company's overall success.

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Operations Management
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Operations Management
Contents
Introduction.................................................................................................................................................3
Task 1 Impact of challenges on business.....................................................................................................3
Challenging technologies........................................................................................................................3
Continued globalization of markets including 1st and 2nd world entrants.................................................4
Changing customers’ expectations..........................................................................................................4
Changing job designs...............................................................................................................................5
Quality management...............................................................................................................................5
Global manufacturing..............................................................................................................................5
Task 2 Impact of success on the operations within the business organization (BHP Billiton).....................6
Goods and services design.......................................................................................................................6
Supply chain design:................................................................................................................................7
Resource management.............................................................................................................................8
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

Operations Management
Introduction
Mechanism which refers to the administration of the business operations and practices so
as to generate highest level of efficiency within the business organization can be termed as
operations management. Primarily the key idea has been made focused on the management and
administration of the operations or the methodologies which can be settled by the business
organization for developing and enhancing the proficiency. This will in-turn lead accomplish a a
hike in the level of effectiveness in the functionalities and operations executed by the business
corporation. The process of operations management likewise comprises of the transformation of
the raw materials and data into products and ventures so as to attain the best level of productivity
leading to a higher profitability. The core concern of the concept is maintaining the balance
between the expenses and the revenues so as to attain the most raised net profit for the business
corporation. As described in details the procedure also involves the management which makes
the optimum utilization of human resource, materials, mechanisms and tools and the creativity.
The concept is a way more widespread term and manages varied range of complex
functionalities within the business corporation. Making decisions regarding the implementation
or installing the plants, mechanisms and strategies for extending the corporation and also
utilizing the structure of data for innovation systems etc. are some relevant examples of
operations management. The business entity also faces number of issues while executing various
operations which are associated with this concept. Maintaining inventory levels, managing the
WIP levels and raw materials procurement and dealing with raw materials and quality control are
some of the functions which are being executed within the procedure of operations management.
Additionally it also includes directing, outlining, controlling, the different methodologies within
the business entity. The below summarized is analysis which has been executed over the concept
of operations management for BHP Billiton (Heizer, 2016). The business corporation is a
multinational brand name in the sector of Anglo-Australian multinational mining, metals and
petroleum. The business corporation is a dual-listed public company which is headquartered in
Melbourne, Victoria, Australia. Moreover the further report has been analyzed on challenges
which can be faced by the operations management section within the organization.
Task 1 Impact of challenges on business
The below described are some of the operational issues which can be faced by BHP Billiton:
Challenging technologies
Technological modification and up-gradation is the factor which has been considered as
very much empirical for each and every business corporation. Technology is the term which has
various impacts on the business operations and also allows enjoying both the tangible and
intangible benefits (Oksbdc 2015). These benefits aid the firm in attaining better productivity,
quality products, and customer satisfaction through better delivery of products etc. As every coin
has two phases, same is here, there are both positive and negative impacts of the technological

Operations Management
changes within the business corporation. The below presented are the issues of the challenges
which can be faced by BHP Billiton:
Integration issues: It is not necessary all the time that the new technology released will match the
older or to the existing systems. And this will lead to build a double data entry in the systems
which will look in multiple places (Casey 2015). So integration of the new technology with the
older one can be proven as a challenge for BHP Billiton.
Backup and disaster recovery challenges: If accidentally any of the file gets deleted, due to the
power cut, server crash or any other technological miss-happening then the business entity can
suffer the problem of data loss. So having a data recovery system is very much essential for the
entity and the same can come-up as an issue for the corporation.
Continued globalization of markets including 1st and 2nd world entrants
Globalization of markets means turning the marketing level to the international regions or
extending the limits to all over the globe (Slack, 2015). The concept provides the markets with
number of international platforms to deal in which in-turn enhances the quality, efficiency and
effectiveness of the products and services. This all is due to the emergence of improved and
contemporary mechanisms and methodologies. Modernization and globalization are the key
players of the concept which aids the markets and the business environment of the business
corporation. The below mentioned are some of the challenges which can be faced by BHP
Billiton while going international:
While trading in the international markets the business entity will have to cope-up with the
political environment of the different regions. For instance, the business entity will have to face a
challenge as the tax laws and other norms of each and every region in which BHP Billiton is
dealing (Krajewski, Ritzman and Malhotra, \2013). Moreover, the business entity will also have
to face the challenges due to cultural differences.
Changing customers’ expectations
Customers are considered as the king of the markets and hence their needs and
requirements are one of the significant factors in influencing the business entity and the
operations within the same. The products and services are designed and developed after
considering the requirements of the consumers which enable the entity in accomplishing the
desired objectives and targets. The demand and supply of the products and services totally
depend on the consumer preferences, their likes, expectations, income levels etc. These are the
relevant and significant factor which is considered as liable in influencing the success and
growth of BHP Billiton. The below mentioned are some of the challenges which can be faced by
the customer’s expectations:
The customer using a brand always has an expectation of an upgrade and innovation. This, if
fulfilled by the business corporation will aid he business entity in the form of number of benefits.
But if the firm fails to fulfill the expectations the entity may suffer severe losses such as a

Operations Management
decrease in the market share as the consumers will try to switch to the competitors brand. This
will also bring the sales bars to a diminishing level (Hitt, Carnes and 2016).
Changing job designs
Job design is the concept which is concerned with the outlining and organizing the duties and
responsibilities so as to accomplish the desired objectives for the business organization. The
process also comprise of the methods and connections that are considered as very much essential
for a success of a job. Job design have various impacts on the business organization and its
operations. The below mentioned are some of the challenges which can be faced by BHP Billiton
due to changing job design:
If the employees at BHP Billiton are performing and are feeling frustrated due to challenging job
design ten there can be a development of demotivation in the employees and a lack of interest
can rise. This will be proven problematic for the business entity (Khanna, 2015). Employee
turnover ratio and retaining the same will incur heavy expenses for the firm and will be proven
as a challenge.
Moreover, frequent shifting of the employees develops frustration in their job routine and which
can also be the reason for the loosening of the interest and determination in the work. This will
have negative impacts over the business organization.
Quality management
Quality of the products has been considered as one of the significant factor which will drag the
business entity to the top of success and growth in the business environment. This variable is an
empirical aspect which aids the business entity in providing customer satisfaction (Brown,
Bessant and Lamming, 2013). This factor if positively attained will be proven beneficial for the
business entity as it aids in enhancing and increasing the market share, building the goodwill,
brand equity etc. and the same will be in the case of BHP Billiton. But this all can turn to
negative and will impose number of negative impacts over the business entity and the same
demonstrated as follows:
As quality of the products is the first component and is a priority which is preferred by the
consumers. And if BHP Billiton fails to adhere with the management of quality of the product
and the management of the same then the business entity will have to face number of negative
consequences. For instance, the consumers will be un-satisfied and will try and think to switch to
other brands (Mahadevan, 2015). This will bring down the market share, sales graph to a
diminishing level and will so tend the company to suffer losses. And all this can develop the
concept of quality management as a challenge for the business corporation.
Global manufacturing
Global Manufacturing is the concept which comprises of the process and procedures
under which the business entity produces the components, sub-assemblies, assemblies, and
finished products for another company (Bianchi and Åhlström, 2014). This done by leveraging

Operations Management
raw material, manufacturing capabilities, cost, and an efficient supply chain that spans all over
the globe. This process can be proven very much disadvantageous for the business entity in some
cases. For instance, in case of BHP Billiton the business entity can send the mining products for
purification and other refining purposes to some other organization. This can be proven
expensive. This will bring an increase in the cost of goods sold which will automatically increase
the price of the goods. This can tend to a decrease in the demand for the products and will also
affect the market share of the business corporation.
Task 2 Impact of success on the operations within the business organization (BHP Billiton)
The operations are the functions and the activities which are executed within the
organizational structure. The success and growth of an entity totally depends and are also
connected on the same (Schwarz, Hall and Shibli, 2015). There are various operations which are
considered as very much significant in the path of the success and growth. The below mentioned
are some of the operations which are inter-linked with the business entity and are liable in
influencing the success and growth of the business corporation:
Goods and services design:
The products are the outcomes which enable the business entity to earn the revenues and also aid
them in attaining the desired objectives and goals. The goods and services are the players which
are held liable for influencing the growth and success of the business. Products are the offerings
which are served by the firm after considering the requirements and needs of the consumers
(Brown et al., 2013). The satisfaction level of the consumers depends on a number of
components of the products. One of an empirical factor of the products is the design of the same.
The design of the product defines the identity which develops a distinct image of the same in the
market (Schönsleben, 2016). Moreover, if BHP Billiton is focusing on the design of the products
then it will be aiding the business entity to develop a distinct image of the brand. This will help
the entity in sustaining and gaining a competitive advantage over the competitors. The below
mentioned are some of the factors of the products design which aids the success and growth of
the business entity:
Increase in the customer satisfaction level: The products and the services, if designed
according to the demands and requirements of the consumers will provide them satisfaction. The
more the satisfaction level, the more will be the demand for the nest time. Moreover, the
consumers will be brand loyal which will be demonstrating a hike in goodwill (McCrie, 20150.
This will be proven beneficial in the path of success and growth of the business entity.
Increase in the market share: The product design aids the business entity in attracting and
influencing the consumers. The demand for the product depicts the market size of the business
entity (Akalin, Huang and Willems, 2016). And as the product entity experiences an increase in
the demand the market size ad share of the corporation will be high. So the BHP Billiton should

Operations Management
design and develop the products for satisfying the consumers so as to increase the market
demand which will finally result in an enhancement in the market share. An increase in the
market share defines a
Increasing brand equity and goodwill: The customer satisfaction level have a direct link with
the brand equity and goodwill of the firm (Fernie and Sparks, 2014). The more the customer
satisfaction the more will be the brand equity and the goodwill. A high level of goodwill
demonstrates the stability of the business entity and a stable business corporation is understood
to be a successful one.
Supply chain design:
Supply chain has been considered as an integral part of any of the business corporation
and is also essential in the success, growth and customer satisfaction (Wisner, 2016). The below
mentioned are some of the benefits for the customers which in-turn will reflect in the success and
growth of BHP Billiton:
The customers have an expectation of the correct product to be delivered and assortment
of the same should be done which will be done, which brings enhancement in the satisfaction
level. Moreover the orders should also be delivered at the right location and also the time of the
delivery should be perfect (Bamford et al., 2015). The after sales service is an additional feature
of the process which is required to be adhered by the company for increasing the satisfaction
level of the consumers. All of the above mentioned are the points which enhance the satisfaction
level of the consumers and will contribute in the success and growth of BHP Billiton
The supply chain brings varied range of cost to a diminishing level which are presented as
below:
 Brings purchasing cost to a decreasing level: The retailers are largely depended on the
mechanism of supply chain and for a quick delivery of the expensive products so as to
avoid holding costly inventories in the stores and outlets any longer that required
necessary (Galliers and Leidner, 2014).
 Decreases production cost: There is a dependency of the manufacturers on the delivery
of the materials to the manufacturing units so as to avoid the material shortages and that
would bring the production process to a stop.
 The raw material sources from providers are changed to transitional items and completed
products through assembling offices (Anderson, Anderson and Parker, 2013). The
completed items are sent to conveyance focuses and from that point to retailers and at last
to clients. Nonetheless, the supply chains, particularly of vast makers, can have essential,
auxiliary, and tertiary providers moreover.
Resource management
The resources are the modes which can be utilized by the business entity for revenue
generation. BHP Billiton is the multinational corporation which has a wide range of resources

Operations Management
and the same are segmented in various divisions. For instance, tangible and intangible resources,
is the main segmentation for the business corporation which can be proven beneficial for
executing and adopting the approaches of resources management (Ferguson and Souza, 2016).
These resources are considered as very much significant for the business entity and are also very
much liable in contributing towards the growth and success. The resource management involves
the adoption of strategies and approaches which will enable the business corporation to make the
optimum utilization of the resources. Financial resources are one of the significant resources
which can be plays an integral part in the success and growth of the firm. This resource enables
the business entity to invest more on the best and contemporary promotional mediums and
platforms, which will develop a great awareness for the product in the market. Also, the entity
will be able to hire a potential and expertise level of workforce which will serve the business
entity to their best level (Bouchery et al., 2016). Moreover, a good financial stability will enable
the business corporation to purchase a high quality of raw materials and which will in-turn will
provide them with good quality of finished products. Human resource is the another segment
which is also considered as one of the empirical factors in the concept of resource management.
Human resource management will serve the business with the outcomes such as the attainment of
the desired objectives and targets, increase in the goodwill, and enhancement of brand equity.
One of the most valuable assets of the business organization is the workforce and the same is
liable and held responsible for the execution of the overall operations and the functionalities. A
well-managed human resource will lead the business organization to the gain a competitive
advantage over the competitors and a competitive edge in the business environment. And hence
the resource management within BHP Billiton can be considered as relevant and responsible
factor which contributes in success and growth (Gupta and Starr, 2014).
Conclusion
In the limelight of the above executed analysis it has been inferred that the operations
management is the concept which has been considered as a significant term in the success and
growth of the business entity. The above presented report has been made focused on BHP
Billiton which deals in mining activities. Moreover, the report has been segmented in two
divisions, in first division the report includes some challenges which can be faced by the
business entity and are liable in influencing the business operations in future. The second part
comprises of the operations which are liable and are considered as significant for influencing the
success and growth of the business corporation, There are number of operations in the business
organization which contribute their working in the path of success and growth of the businesss
entity and the same has been described I the above report.

Operations Management
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Management, 41(10), pp.107-109.

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