Operations Management in Business: Furniture Supplier Company Report

This report provides a comprehensive analysis of operations management within the context of the Furniture Supplier Company. It begins by highlighting the importance of operations management for businesses, emphasizing its role in enhancing productivity, improving financial conditions, meeting client priorities, managing products and services, and optimizing resource allocation. The report then delves into the specific operations functions of the Furniture Supplier Company, including time management, cost management, resource allocation, quality management, and change management. It evaluates the company using a process model, identifying it as an open and probabilistic system, and explaining the input, transformation, and output processes. The report further explains the 'three E's' of business success—efficiency, economy, and effectiveness—and discusses the tension between cost minimization and quality maximization. Finally, it evaluates the significance of five performance objectives: cost, dependability, flexibility, quality, and speed, and includes an overview of linear programming, critical path analysis, and network planning, along with approaches for project management and quality control, to evaluate the outcomes.

OPERATIONS MANAGEMENT IN
BUSINESS
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TABLE OF CONTENTS
INTRODUCTION............................................................................................................................4
TASK 1............................................................................................................................................4
1.1 Importance of operations management for business..............................................................4
1.2 Analysis of operations functions of Furniture Supplier Company.........................................5
1.3 Evaluation of Furniture Supplier Company by using process model of the operations
management.................................................................................................................................6
2.1 Explanation of three E's.........................................................................................................6
2.2 Tension between cost minimization and quality maximization.............................................7
2.3 Evaluation of significance of five performance objectives....................................................8
TASK 2............................................................................................................................................9
3.1 Explaining linear programming.............................................................................................9
3.2 Critical path analysis and networking planning...................................................................10
3.3 Need for operational planning and control in producing furniture......................................10
4.1 Designing layout for producing furniture and its operational outcomes..............................11
4.2 Producing network plan and critical path.............................................................................11
4.3 Identification of approaches for project management and quality control..........................12
CONCLUSION..............................................................................................................................13
REFERENCES...............................................................................................................................14
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ILLUSTRATION INDEX
Illustration 1: Network diagram.....................................................................................................12
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INTRODUCTION
Operations management in business can be considered as a crucial element as it helps in
carrying out the activities, decisions and responsibilities of managing resources that are available
for the production and delivery of products and services. However, it assists in ensuring that the
operations of business are effectual in making utilization of resources that are available within
business (Berger, 2011). In the present report, operations management within business is
discussed with regard to the Furniture Supplier Company. Business is engaged in providing
finished products to leading furniture retailers. Research highlights the importance of operations
management within business and also evaluates the process model for Furniture Supplier
Company. At the end, critical path analysis and network planning has been done in order to
evaluate the outcomes.
TASK 1
1.1 Importance of operations management for business
Operations management is significant for Furniture Supplier Company because of the
following reasons. These are as follows- Enhancing the productivity- It is essential for operations management to ensure quality in
the manufactured products. Therefore, it plays a significant role in enhancing the
productivity and profitability of Furniture Supplier Company (Mahadevan, 2010). Improving the financial condition of enterprise- It can be assessed that management of
supply chain is ensured through operations management. Thus, it helps in bringing
advancement in order to carry out the processing for firm. Hence, the finished products
are offered to retailers within minimum period of time and thus, it has impact on the
financial condition of Furniture Supplier Company (Neave, 2013). Helps organization in meeting client's priorities- Operations management play a crucial
role in managing the demand and supply of firm in meeting the customer’s priorities
effectively. Through such function, it is important in maintaining the balance between
quality ordered and supplied by firm of furniture (Ram, 2010). Managing product and service- The growth of product includes varied steps. It starts with
the generation of idea and ends with the sale of products. However, for Furniture Supplier
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Company, operations management is crucial as with this, it can plan varied schedules that
would assist the business in manufacturing product within stipulated time frame.
 Optimal allocation of resources- Operations management helps in allocating the scarce
resources to different activities and functions within business. The resources involves
time and cost that are essential for the success of Furniture Supplier Company. Thus,
proper allocation and management of resources helps in enhancing the productivity and
profitability of firm (Loosemore and et.al., 2011).
1.2 Analysis of operations functions of Furniture Supplier Company
The different operations functions of business are as follows- Time management- The operations functions is to plan the schedules in which the time
taken by different activities of business are assessed. However, it ensures that the
completion of activities is attained within set time scale so that project may not get
delayed over specified time (McCrie, 2011). Cost management- It is an essential function of operation management. However, the cost
allocated with varied business activities and functions is assigned with the help of
operations management. It helps in managing the resources that are dedicated to the
production and delivery of products and services. With the assistance of this, Furniture
Supplier Company can minimize its expenses and thus, ensures to manage the overall
cost of business (Parker, 2012). Allocation of resources- Optimum allocation of resources is a crucial function of
operations management. It helps in ensuring that production process of business runs in a
smooth manner when its resources such as cost and time are allocated effectively as per
the priority of varied tasks (Lao and et.al., 2012). Managing quality- It is another function that is performed in operation management. It is
essential for Furniture Supplier Company to measure its quality of finished products
before selling it to the leading furniture retailers. It will help in enhancing the overall
efficiency of production system so that the best products can be manufactured.
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 Managing change- It is essential to manage the change within firm so that different
activities such as planning, monitoring, redesigning and controlling the activities need to
be carried out effectively in order to gain the best results (Kikwasi, 2011).
1.3 Evaluation of Furniture Supplier Company by using process model of the operations
management
It can be evaluated that the process model of Furniture Supplier Company is effectual in
making decisions. Such type of model involves varied activities such as input, transformation
and output. Although, varied theories and models are used in order to assess the operations
management of firm. However, it can be comprised of closed and open system, probabilistic,
random and deterministic system. In this, the operation management of Furniture Supplier
Company is an open system. It is because; it is essential for business to communicate at regular
time intervals with the external business environment (Little, 2011). In the input process, it
requires raw material which is provided by the suppliers of business. Thus, all these raw
materials are processed through the conversion process and thus, input is converted to output.
In the transformation process, it involves various factors such as people, environment,
technology and structure which are essential in the completion of this step. The finished product
is then transformed to customers in the form of output. Additionally, Furniture Supplier
Company possess probabilistic process model. It is because business can determine the end
outcomes in advance depending upon the future results. Thus, with the help of open process
model, business can deliver the finished products to its clients that involve retailers that carry
furniture business. However, the future demand for furniture products of enterprise can be
estimated with the assistance of Probabilistic system (Clegg and Wan, 2013). Through this, firm
can keep an eye on its production capacity management.
2.1 Explanation of three E's
Three E's are essential for the success of business which involves effectiveness, economy
and efficiency that are enumerated below- Efficiency- It states the way of carrying out things as smoothly as possible. It involves the
allocation of resources in suitable ways so that process can flow in a smooth manner.
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However, in order to attain efficiency in business operations, it is essential for business to
eliminate the activities that causes delay while executing the operational process.
Therefore, it is essential for business to attain efficiency by producing best outputs in the
form of quality furniture. It results in attaining the desired results which will further
enhance the productivity of Furniture Supplier Company (Massis, 2010). Economy- It is crucial for business to make production in an effective manner so that it
will incur less or minimum cost to the firm. However, economy defines carrying out
activities in the cheapest way that is possible for the firm. Producing low cost materials is
only possible when business makes bulk purchases and produces merchandise in high
volume. Such type of element can only be attained when Furniture Supplier Company
minimises its expenses which incurs from the activities such as manufacturing and
delivering the final products. Through economy, business operations can ensure that that
desired outcomes are achieved within specified time and cost (The 4 E's of Excellence,
2013).
 Effectiveness- In such type of element, it refers to making it effective so that client’s
needs and requirements can be fulfilled by the manufactured products within firm. Thus,
Furniture Supplier Company can assess the effectiveness on the basis of degree to which
set targets and goals can be attained. Effectiveness ensures the success of enterprise in the
long run. Thus, it results in improving the quality of output that is produced by
organization (Söderlund, 2012).
Thus, it can be evaluated that the above mentioned three E's results in excellence which is
only possible when Furniture Supplier Company manufactures its products with economy,
effectiveness and efficiency.
2.2 Tension between cost minimization and quality maximization
It can be assessed that cost minimization and quality maximization are the crucial
elements to attain success within firm. However, Furniture Supplier Company needs to maintain
balance between both these factors in order to achieve the desired results. By carrying out this,
business faces varied issues that results in developing tension among cost minimization and
quality maximization. It is significant for business to manage its cost in short run so that it can
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achieve the desired results. At the initial level, it is difficult for business to execute the
production in high quality. It is because; management of business do not know that the produced
products will be accepted by clients or not. While, if the products are manufactured within small
quantity then business will be able to manage the quality of products that have been produced
(Eriksson, Hilletofth and Hilmola, 2013). Thus, it can be evaluated that the quality of products
can be maximized but the cost of production will be enhanced with this.
However, in the long run, Furniture Supplier Company can make production at a large
scale. It will result in minimizing the cost of production. But it reduces the quality of product at
the same time. Furthermore, if business integrates innovative technology for executing the
production process then this will possess impact on both the facet. Although, it helps in
enhancing the quality of furniture but the cost would be increased substantially with the usage of
latest technology. Thus, tension between cost minimization and quality maximization arises
when the raw material present to firm is costly. Business also requires skilled labour in order to
carry out the job in an effectual manner. Such workers will be paid with high salaries and thus, it
serves as the cost of firm (Hazletta, McAdamb and Walkerc, 2013). Thus, results in cost
maximization and quality maximization. Therefore, in order to maintain proper balance between
cost and quality, Furniture Supplier Company is required to allocate the resources effectively.
2.3 Evaluation of significance of five performance objectives
The significance of performance objectives such as cost, dependability, flexibility, quality
and speed that underpins the operations management are as follows- Cost- In order to achieve such performance objective, Furniture Supplier Company has to
minimize its direct and indirect expenses. With the low cost objective, business can
enhance its productivity. However, it has impact on sales and profitability of business.
For instance, if business manages to minimize its expenditure then it would achieve the
desired outcome within specified time period (Smith, Bruyns and Evans, 2011). Dependability- It is another crucial objective of firm. However, it covers the aspect of
customer convenience. Dependability performance objective can be achieved only when
Furniture Supplier Company makes timely delivery of products and services and satisfy
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the client’s needs. Thus, it would result in the reliable operations for organization that
helps them in attaining the desired targets. Flexibility- Such performance objective affects the business ability to adopt changes. It
will improve the potential of operational management system of firm. However, with the
change in preferences of clients, it is essential for Furniture Supplier Company to make
alteration in its existing products or design new furniture outlay so that client’s needs can
be satisfied (Jones and Robinson, 2012). Quality- It helps in ensuring the production of error free products as per the specification
provided by clients. Through this, performance objective helps in enhancing the
performance and sales of merchandise. Also, with the help of quality control measures,
business can attain set standards.
 Speed- Organization can attain this performance objective only when it takes short
delivery time. However, it helps in facilitating the production process of business to run
in a smooth manner. Through adopting a speedy process, Furniture Supplier Company
helps in meeting the needs of clients in timely manner. It also assists in improving the
brand image of firm in market and satisfies the requirements of target market (Richard
and et. al., 2008).
TASK 2
3.1 Explaining linear programming
Linear programming can be stated as a linear optimization that helps the business in
achieving the best outcomes. It involves profit maximization and cost minimization objectives. It
is considered as a mathematical model that can be used by Furniture Supplier Company in
finding solution to the issues that arises because of inappropriate allocation of resources.
However, the needs under this technique are demonstrated in linear relationship form. Further,
such type of technique can be applied when linear association exists among variables. Such
model helps organization in optimizing the results on the basis of unambiguous set of constraints
(Lao and et.al., 2012). Through operational research, it helps in ensuring the use of linear
programming in determining the solution to varied production and business issues.
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3.2 Critical path analysis and networking planning
Critical path analysis and networking planning are as follows-
Critical path analysis- Furniture Supplier Company can schedule its activities with the
help of project management tool that is known as critical path analysis. It helps the business to
effectively manage its complex business activities. It is useful in assessing the actions that are
crucial for the completion of project. With the help of this, project manager can determine the
longest path that can be taken to complete the task within shortest time duration. However, the
delay caused in one activity of project will have its impact on the overall completion of project.
Critical path analysis helps the business to gain insight to whether or not it is carrying out its
actions in a planned way (Kikwasi, 2011). Furthermore, it enables Furniture Supplier Company
to ensure that it makes timely delivery of products in order to attain satisfaction.
Network planning- It can be defined as the set of activities that are critical to success of
project completion within specified time, cost and other resources. Networking planning can be
done through adopting program evaluation and review technique. With the help of this, Furniture
Supplier Company can determine the amount of time and cost allocated to varied activities. Thus,
it helps in analysing the critical path activities (Parker, 2012).
3.3 Need for operational planning and control in producing furniture
It can be analyzed that operational planning and control is crucial in Furniture Supplier
Company for the following reasons- Project management- Here, operational planning is needed by firm for the aim of
designing its project plans. However, business can manage its resources effectively with
this. It also helps in making proper allocation of resources. Thus, Gantt chart method can
be used in order to control the project. It helps Furniture Supplier Company to monitor
the activities whether they are on right track or not (McCrie, 2011). Future forecasting- Furniture Supplier Company make estimation of future demand, sales
and quantity of stock by operational planning. Thus, business is required to plan its future
tactics on this basis (Söderlund, 2012).
 Quality assurance- Organization needs operational planning and control for the aim of
managing quality of its products and services. Business is needed to implement varied
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quality control techniques such as six sigma and variance analysis in order to maintain the
quality standards within firm (Neave, 2013).
4.1 Designing layout for producing furniture and its operational outcomes
It can be considered that the possible layouts that are present to the firm are process,
product and hybrid layout. In the product layout, the work situations and equipments are
designed on the basis of product line that has to be manufactured. While in hybrid layout, it is the
combination of product and process layout. For instance, the appropriate layout for Furniture
Supplier Company is process layout under which similar activities are grouped together. In this,
every department involves skilled employees that have expertise in executing particular
activities. Thus, it helps in ensuring the quality assurance at every process (Mahadevan, 2010).
The layout of production process constitute with the attribute such as flexibility. It is because;
with the change in product line, the process may also be changed. Through carrying out
appropriate process, the end product can be prepared in order to satisfy the needs of clients.
4.2 Producing network plan and critical path
Network plan involves a range of activities that starts with executing the market research
to the delivery of final product. Business can plan the activities so that it can keep a track on the
time and cost that is attached with each action. In this, Furniture Supplier Company network plan
is prepared for the packaging process (Berger, 2011).
Table 1: Network plan for packaging process of Furniture Supplier Company
Network plan for
packaging process for
furniture supplier
company
S.
No. Activity Activity Name Duration
1 Market research for determining the accessibility of types of
packaging process A 16
2 Search of alternatives B 10
3 Evaluation of alternatives C 8
4 Choosing the suitable packaging D 7
5 Primary packaging E 18
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6 Secondary packaging F 20
7 Sustainable packaging G 23
8 Quality checking H 8
9 Market testing I 25
10 Change management J 12
11 Finalization K 9
Total estimated time (Days)
1
5
6
D
a
y
s
The above table showcases that the maximum time required to accomplish the packaging
process is 156 days.
Illustration 1: Network
From the above figure, it can be observed that project can be accomplished in minimum
148 days. Through critical path analysis, longest path with having shortest duration for finishing
the packaging process is ascertained.
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4.3 Identification of approaches for project management and quality control
It can be evaluated that the approach that can be used for the aim of quality control can be
of total quality management. Such type of method is critical in enhancing the ability of firm to
deliver the products that have high quality. However, such approach focuses on the elements like
customer focused, workers engagement and process centred and integrated system etc. in keeping
the quality of product on track. Total quality management approach helps in providing training to
workers so that tasks can be accomplished with proper standardization (Total Quality
Management (TQM, 2014). Business can make use of this technique that emphasizes on process
thinking. It helps Furniture Supplier Company to attain proper quality objective when it has
systematic and strategic approach towards its vision, mission and goals. Moreover, continuous
enhancement in the process by organization will help in managing and maintaining the quality of
products within enterprise. TQM helps in defining the role of communication in upholding the
superiority of furniture products and services.
CONCLUSION
It can be concluded from the research that operational management plays a crucial role in
the success of firm. It helps business in enhancing the productivity, efficiency and quality so that
the best results can be attained. However, three E's elements assist in enhancing the productivity
and profitability of firm. Also, it can be evaluated that the five performance objectives underpin
the operational management in Furniture Supplier Company. The network plan developed for the
packaging process is designed that demonstrates the minimum and maximum time that is
required for the aim to accomplish the project effectively.
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REFERENCES
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Parker, D., 2012. Service Operations Management: The Total Experience. Edward Elgar
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Online
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