Operation Management Report: BFM, BA, and Performance Objectives

This report delves into the realm of operation management, analyzing its significance within organizations and its practical application through case studies of British Furniture Manufactures (BFM) and British Airways (BA). It examines the core functions of operation management, including production planning and control, inventory management, and supply chain logistics, using process models to evaluate BFM's operations. The report explores the importance of efficiency, effectiveness, and economy (the Three Es) for both companies, assessing the impact of balancing cost minimization with quality maximization. Furthermore, it evaluates the significance of five performance objectives and applies techniques like linear programming and critical path analysis to enhance production processes. The report concludes with operational outcomes, network plans, and the justification for quality management techniques to improve operations within BFM, providing a comprehensive overview of operation management principles.

Operation Management
1

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
1.1 Importance of operation management in organizations ............................................................3
1.2 Analysis of operation functions of British Furniture Manufactures .........................................4
1.3 Evaluation of operation management of BFM by using process model ...................................5
TASK 2 ................................................................................................................................................6
2.1 Importance of Three Es to BA and BFM..................................................................................6
2.2 Assessment of impact of the tension between cost minimization and quality maximization in
BA and BFM ...................................................................................................................................7
2.3 Evaluation of significance of five performance objectives that underpin operation
management of organizations..........................................................................................................8
TASK 3 ................................................................................................................................................8
3.1 Linear programming adding values in production process of BFM..........................................8
3.2 Evaluation of critical path analysis and network planning .......................................................9
3.3 Justification for need of operational planning and control in production process of BFM.......9
TASK 4...............................................................................................................................................10
4.1 Operational outcomes for BFM Company ..............................................................................10
4.2 Network plan............................................................................................................................11
4.3 Justification for quality management techniques to improve operations in BFM...................13
CONCLUSION .................................................................................................................................14
References..........................................................................................................................................15
2

INTRODUCTION
Operation management is an domain of management which is related to planning, designing
and controlling over the different process of production or manufacturing. This help in redesigning
of the operations of business that assist in improving the existing process of manufacturing products
or services (Greene and et.al., 2013). Operation management gives the assurance to the
organizations to successfully transform the inputs into the outputs by appropriate manner. Here, the
input can be material, men, machines etc. The related activities of operation management are
inventory control, control over quality, logistics and supply chain management and evaluation of
existing process (McNamara, 2015).
The following research has related to the operation management where the different key
features will be cover under this report. The major aspects that will be under cover by present study
will be nature and importance of operation management, relation between operation management
and strategic planning, production process and techniques to improve existing operations within the
firm (Subramanian and Ramanathan, 2012).
TASK 1
1.1 Importance of operation management in organizations
Operation management:
It is refers to those activities, responsibilities and decisions regarding managing the
resources and other supportive things. It helps in deliver the products and services within minimum
time by maintaining good quality (What is operation management. 2015). With the help of this, the
process of creation of outputs from the inputs has managed in proper manner (Dhoul, 2014). During
the transformation of input into output, operation management added value at every step of
production for the customers.
Importance of operation management in organizations:
Operation management generally counts in the one out of the three strategic functions of
every company. It means that it help in formulating the strategies for the organizations as well as
increase the probability of long time survival in competitive market. Its importance in the
enterprises can be understand by examples (The Role of Operations Management in the
Organization. 2015).
British Furniture Manufactures (BFM) is a furniture manufacturing company of UK. The
firm has supplied the variety of furnitures to the customer's at affordable prices with good quality
and latest trends. For managing the retailers, suppliers and ancillary corporations and maintain the
3

coordination with them, operation management played an essential role. Along with this, operation
management has also used in different areas such as inventory management, quality checking,
develop cost effective products, process control etc (Cho and Chan, 2013).
On the other in other hand, in the case of British Airways (BA), it has operated its business
in the different areas of world. The following company has provided the airlines services to the
customers. To manage the variety of operations such as a flight scheduling, determining the focal
pointy for all incoming and outgoing flights etc has done with the help of operation management
(Moghaddam, Seifi and Niknam, 2012).
Therefore, from the above discussion, it has been clear that operation management is an
integral part of every organization. Its roles and importance has varied with types of industry and
nature of the services or products.
1.2 Analysis of operation functions of British Furniture Manufactures
Operation function is known as a best practice in manufacturing and service industry. It
brings collectively the requires inputs with process of production for making the desire outputs as
per the customer needs and desires. It has developed a channel where the new ideas and suggestions
have carried out within the organization for improving the existing processes or achieve the
objectives of business (Dean, Fath and Chen, 2014). In the case of BFM, it develops a unique
selling point of the products for the customers. For this, the list of operation functions and their
analysis is as follows.
Production planning and control: Before starting the manufacturing of any type of furniture, a
production planning and control process has always run. From the analysis, it has found that with
the help of production planning and control function, BFM has able to deliver the goods on time
and regular bases. It has reduced the investment on the inventory as well as decrease overall
production costs (Mohammadi, Soleymani and Mozafari, 2014). This function has ensure that
production process has flow smoothly and control over wastage of resources.
Inventory management: It is a part of operation function of BFM where the firm has manage the
proper stock of raw material, semi finished goods and finished products in right number. From the
investigation of inventory management function, it has determined that it has assist the BFM to
enhanced revenue, reducing the holding and handling costs, increase the cash flow and decrease the
probability of blocking of working capital amount (Bititci and et.al., 2012).
Supply chain and logistic: In order to meet the demand of the market, it is important for BFM to
use supply chain and logistic function. This operation function has value creator for the firm in
terms of giving the competitive advantages. During the analysis of this function, it has explored that
4

it has lower down the expenses of BFM, better coordination with the business partners, better sales
forecasting, able to build supplier and distribution networking etc (Bahmani-Firouzi and
Azizipanah-Abarghooee, 2014).
1.3 Evaluation of operation management of BFM by using process model
Input-transformation-output process model is an framework which define the operation of
transforming the input into output in terms of products or services. For evaluating the operation
management of BFM, input-transformation-output model has used. The elements of this framework
are input, transformation process and output (Branca and Catalao-Lopes, 2011). The assessment of
operation management of company is as follows.
Input: For manufacturing the furniture, the several types of inputs are require such as raw materials,
customers, information, manpower, machines and other supportive resources. The combination of
men, machines and other supportive facilities helps in transforming the physical properties of raw
material into the shapes and design of furniture. In this context, the information about the customer
preference such as style, design, weight, colour etc have considered during preparing the goods
(Gunasekaran and Ngai, 2012).
Transformation process: Here, the three things are taking place: design, improvement and planning
and control. In transformation process, the designing of the furniture has prepared which has
continuously improved to meet the customer satisfaction level and market trends. In addition to this,
the planning and control process has also run where different planning and controlling actions have
taken place to keep the manufacturing process under control (Ashby, Leat and Hudson-Smith,
2012). The whole activity is called operation strategy because design, improvement and planning
and control are depending on each other.
Output: When the combination of inputs goes to transforming stage, the finished good is coming in
the form of output. This has soled by BFM to its customers after quality testing. This process is not
end at this stage because after buying the goods, the service user has sent some feedbacks to the
company in terms of claims, complains, after sales of services etc (Castillo-Villar, Smith and
Simonton, 2012). Such type of customer responses have considered at the time of manufacturing of
goods by BFM.
5

TASK 2
2.1 Importance of Three Es to BA and BFM
Efficiency, effectiveness as well as economy plays effective role in BA and BFM. The
importance of these three E's are as follows
Value of Effectiveness : This aspect aids the BA to design the goal and objectives in the aviation
market. It also contributes effective role to improve performance of its fights schedule and
maintenance (Shamsuzzoha and et.al., 2014). It helps firm to increase the quality of operational
work in United Kingdom. On the other side, effectiveness also help the BFM to increase its
efficiency in the furniture market which directly enhance the quality of working. These things also
contribute effective role to provide good products for consumers in the United Kingdom (Simintiras
and et.al., 2015).
6
Illustration 1: Input-transformation-output process model
(Source: OPERATIONS MANAGEMENT, CUSTOMER SERVICE, IS & HR. 2015)

Value of Efficiency : Efficiency also also aid BA for utilization of better resources and equipment
to provide better flight services to consumers in the nation. This process aid the firm to reduce
waste of fuel which reduces its expenses in the United Kingdom. On the contrary note, efficiency
also help the BFM to increase speed of furniture manufacturing in the nation. This process also
provides better quality furniture to consumers in the UK (Thomas, Kumar and Annappa, 2014). It
enable firm to reduce usage of raw material by using perfect ratio of unprocessed material in the
plant.
Value of Economy: It is most valuable factor for both organisations in the United Kingdom.
Currently economy of UK is running on stable mode. Generally, effective economy also help the
BA to provide better air service for consumers in lower cost (Kumar and Kaur, 2011). Other wise
services can be affected by increasing rate of fuel. It also aids to maintain efficiency of organisation
by scheduling of national and international planes in proper manner in the country. According to (),
economy also impact operations of BFM (Akintunde, 2008). It also help the firm to render furniture
in low price for customers in the United Kingdom. Otherwise, sales of furniture can be reduced due
to enhancement rate of raw material which directly affect the profit of organisation.
2.2 Assessment of impact of the tension between cost minimization and quality maximization in BA
and BFM
There are various effects come due to tension between cost minimisation and quality
maximisation in BA and BFM in the United Kingdom. Tension between cost minimisation and
quality maximisation also affect the growth of organisations. This process also creates negative
impact on the firms (Braithwaite and Christopher, 2015).
For example, If BA is charging higher prices to consumer instead of lower grade services to
its consumers then This process also affect market position of organisation in the aviation industry.
It also reduces frequency of customers in the airline market which directly impact on its profits in
the nation. BA also feels huge problem to manage its general operations due to shortage of
monetary funds in the United Kingdom (Rowbotham, Azhashemi and Galloway, 2012).
Organisation has to aware about those things to balance cycle between cost minimisation and
quality maximisation to provide better air services in the nation.
On the other side, if BFM takes high charges instead of inferior quality furniture to its
consumers in UK then organisation also faces many difficulties to manage its complaints of
customers in country (Mahadev, 2010). This process also creates negative image for firm in the
mind of people. It reduces market share of BFM in the United Kingdom. In addition, it also
decrease the revenues of organisation in furniture market. So corporation has to maintain its chain
7

to handle cost and quality cycle in the nation (Bamford and Forrester, 2010).
2.3 Evaluation of significance of five performance objectives that underpin operation management
of organizations
Quality: British Airways also faces less issues to provide better air services in the nation. This
process also increases the frequency of consumers in the United Kingdom. On the other side, it also
help to improve market share of BFM services which increases its sales in this sector (Rastogi,
2010).
Speed: British Airways also gives quick response to its consumers regarding ticket booking which
help to build good trust on the people in nation. On the contrary note, BFM increases its speed in
production by managing its resources. This process also help the firm to give fast delivery of its
products for consumers in UK (Wood, 2012).
Dependability: British Airways gets huge help to reduce the dependability by maintaining better air
network in the world. This process also increases its efficiency of firm. According to (), British
Furniture Manufactures is facing problem due to long process furniture production which increases
dependability on the manufacturing. These things enhances waiting time of customer. It also affect
its services in the nation (Besterfield and et.al., 2011).
Flexibility and Cost: Cost reduction also helps British Airways to reduce expenses by following
proper quality methods like TQM and continuous improvements which contribute effective role to
improve airline services in UK. This process renders better flexibility to handle its operations. On
the other side, British Furniture Manufactures also utilizes critical path method to reduce
transportation and logistics cost in nation. This process also gives huge reliability to manage its
whole functions like production and operation in the United Kingdom (Wilson, 2015).
TASK 3
3.1 Linear programming adding values in production process of BFM
With the help of linear programming model, the different types of problems has solved such
as production, transportation, pricing of goods etc. It is a mathematical model which represent the
relationship between two or more than two objectives. The following framework adding values in
production process of BFM (Thornley, 2013). This can be understand by an example. Suppose
company wants to schedule the process of production. So, with the help of liner programming
model, BFM will calculated monthly scheduling of production. With the help of this method, the
efficient and low cost production scheduling will be created for different productions. It can be used
several time by firm to reduce the overall production cost of the final products. Therefore, linear
programming model help the BFM to deliver the goods to the customers at affordable prices (Lock,
8

2014). Another roles playing by linear programming models are taking the decision regarding
product mix, staffing, control over inventory, capacity planning and allocation of resources. Hence,
from the above discussion, it can be concluded that linear programming is adding value in
production process of BFM operations (Greene and et.al., 2013).
3.2 Evaluation of critical path analysis and network planning
In production process, critical path analysis and network planning both are playing essential
roles. In the case of BFM, CPM is used to schedule the activities of production process in effective
manner. With the help of this, company can construct a framework for the production process where
the entire activities of the plan enlisted in a proper sequence. After this, a time duration for each and
every task has allotted (Moghaddam, Seifi and Niknam, 2012). This time frame defines the
completion time of activities. From the evaluation of CPM in production process of BFM, it has
been found that it help the company to define the dependencies of different tasks on each other. This
also assist the firm management to schedule the different activities of production process of
furniture (Mohammadi, Soleymani and Mozafari, 2014). By using it, BFA has easily allocated the
resources to those tasks which are delaying due to the lack of resources.
On the other hand, in networking planning
3.3 Justification for need of operational planning and control in production process of BFM
To achieve the effective, economical and efficient operational production process then it is
needed to integrate production planning and controlling system with the production process. It is
making the control over the flow of the different manufacturing process (Bahmani-Firouzi and
Azizipanah-Abarghooee, 2014). In the case of BFM, production planning and controlling process
help the company to resolve the problem regarding the low productivity, management of inventory
level, allocation and utilization of resources etc. There are some reasons which justify the need of
operational planning and control process in production process of BFM. These reasons are as
follows.
 It ensure the firm to effective and optimum utilization of the capacity of production lines
and other supportive machines.
 It has maintained the scheduling of the equipments and production process to decrease the
ideal time of machines as well as labours (Subramanian and Ramanathan, 2012).
 It has reduced the probability of over or under stocking situation during the inventory
management within the firm of raw material, semi finished and finished goods.
 With the help of operational planning and control process, it has easy for management of
BFM to deliver the goods within the given time to the destination.
9

 It assist the firm to keep the production duration at optimum level i.e. minimizing the delay
in manufacturing the goods (Shamsuzzoha and et.al., 2014).
 By using operational planning and control of production process, BFM can easily control
over the wastage of resources.
 The operational planning and control in production process help the organization to decrease
the operating costs and this will lower down the overall cost of the final goods (Bititci and
et.al., 2012).
 With the help of this, the management can take the better decisions regarding increase or
decrease the volume of production as per the demand in the market.
 It has maintained the flow of work which avoid the bottlenecks situations or rework on the
completed products.
 It ensure the management to provide the better services to the customers by delivering the
goods with the schedule time and quality (Ashby, Leat and Hudson-Smith, 2012).
TASK 4
4.1 Operational outcomes for BFM Company
Operational outcomes are those outcomes which are getting from the transformation
process. Some times these operational results added the value in the products for the customers. In
the case of BFM Company, the operational outcomes are as follows.
Maximize profitability: By using the operational planning during the production of goods, BFM has
maximized the profitability. For example, the effective utilization of resources in proper manner
help the firm to manufactured the furnitures in large volume from the available material. The more
availability of the goods in the market within minimum time to the customers (Castillo-Villar, Smith
and Simonton, 2012). The increase sales of furniture will give more profit to BFM within minimum
duration.
Improve quality: By following operational plan during production process, the quality of the final
products can be easily improved. For example, during operational planning of manufacturing the
furniture, by introducing quality checking features at every stage, the quality of the final outcomes
cab be maintained (Gunasekaran and Ngai, 2012).
Optimum allocation of resources: With the help of operational planning in production process, it
has easy to optimize the allocation of resources for BFM. For example, in the production planning
process, there may be some activities which are delay due to the lack of resources. Therefore, by
identified those tasks, the more resources can be allocate and utilize them in effective manner, the
delay in the production process can be reduced (Dean, Fath and Chen, 2014).
10

Easy to adopt changes of external world: By using operational planning, BFM can manage and
absorbs the new changes of external world. This can be understood by an example. Suppose, there
are some new trends related to the furniture introducing in the market. In such situation, to
manufacture the goods according to the new fashions and designs, company has to bring the
changes in the operational plan. For example, the changes in the operational planning may be
related to rearrangements of machines, change the facility location etc (Branca and Catalao-Lopes,
2011).
4.2 Network plan
Task
Mode Task Name Duration Start Finish Predecessors Early
Start
Early
Finish
Auto
Scheduled
Decide test
market area 1 day Wed
11/25/15
Wed
11/25/15
Wed
11/25/15
Wed
11/25/15
Auto
Scheduled
Agree
marketing
strategy
2 days Wed
11/25/15
Thu
11/26/15
Wed
11/25/15
Thu
11/26/15
Auto
Scheduled
Agree
production
specification
3 days Wed
11/25/15
Fri
11/27/15
Wed
11/25/15
Fri
11/27/15
Auto
Scheduled
Decide
brand name 1 day Fri
11/27/15
Fri
11/27/15 2 Fri
11/27/15
Fri
11/27/15
Auto
Scheduled
Prepare
advertising
plan
2 days Thu
11/26/15
Fri
11/27/15 1 Thu
11/26/15
Fri
11/27/15
Auto
Scheduled
Agree
advertising
package
3 days Mon
11/30/15
Wed
12/2/15 5 Mon
11/30/15
Wed
12/2/15
Auto
Scheduled
Design
packaging 2 days Mon
11/30/15
Tue
12/1/15 4 Mon
11/30/15
Tue
12/1/15
Auto
Scheduled
Production
of test batch 5 days Mon
11/30/15
Fri
12/4/15 3 Mon
11/30/15
Fri
12/4/15
11

Auto
Scheduled
Package and
distribute 10 days Mon
12/7/15
Fri
12/18/15 7,8 Mon
12/7/15
Fri
12/18/15
Auto
Scheduled
Monitor
media
support
3 days Thu
12/3/15
Mon
12/7/15 6 Thu
12/3/15
Mon
12/7/15
Network diagram:
Figure 1: Network plan
Gantt chart:
12