MAN4FRM Ltd: Financial Resource Management and Decision Analysis

This essay provides an analysis of financial and resource management within the construction sector, focusing on MAN4FRM Ltd, a medium-sized private limited company involved in property investment, sales, and construction. It examines the advantages and disadvantages of operational management in the context of MAN4FRM Ltd, highlighting the importance of process transformation, value chain optimization, strategic planning, managerial culture, and organizational structure. The essay also addresses risk management and the challenges associated with outsourcing, emphasizing the need for effective oversight to prevent competitive disadvantages and maintain customer relationships. The conclusion underscores the significance of operational management in maximizing profitability, ensuring quality control, and effectively utilizing resources to meet the needs of the target consumer base.

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Running head: MANAGING FINANCIAL RESOURCES AND DECISION
MANAGING FINANCIAL RESOURCES AND DECISION
Name of the Student
Name of the University
Author’s Note

1MANAGING FINANCIAL RESOURCES AND DECISION
Table of Contents
Introduction......................................................................................................................................2
Advantages: Operational Management............................................................................................2
Disadvantages: Operational Management.......................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................7

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Introduction
Operation management is an effective tool to channelize optimally all the activities that
any organization accomplishes to meet its objectives1. Sales of residential accommodation as
well as construction of offices, shops and industrial building necessitates the implementation of
operational management strategies in case of MAN4FRM Ltd.
Advantages: Operational Management
 Process of transformation - Operational management works as a transformation process
starting from improvising the raw inputs of information along with the 5 M’s, namely
man, machine, method, money and materials and end up in adding value to its final
products and services. In between the input and transformation of them to final output
there exists product design, product control, process planning as well as maintenance2.
These transformational phases if executed effectively then it raises the operational
efficiency of the firm.
 Value Chain – Operational management rejuvenates the possibility of an effective value
chain to persist within the organization. In case of MAN4FRM Ltd, the dealers and
suppliers transfers the raw factor inputs to the factory and from there it goes for
warehousing after accomplishment of the final constructions3. The distribution of services
1 "The Handbook of Logistics and Distribution Management", in Google Books, , 2018,
<https://books.google.co.in/books?
hl=en&lr=&id=39RZAgAAQBAJ&oi=fnd&pg=PR3&dq=operational+management+disadvantages+and+advantage
s&ots=nItFTOyZpd&sig=ZmUcIJJzUoGVrYMLDZDXnLv9nDk#v=onepage&q=operational%20management
%20disadvantages%20and%20advantages&f=false> [accessed 8 November 2018].
2 "US9031703B2 - Operation management apparatus, operation management method, and operation management
program - Google Patents", in Patents.google.com, , 2018, <https://patents.google.com/patent/US9031703B2/en>
[accessed 8 November 2018].
3 "US20170174472A1 - Brake operation management in elevators - Google Patents", in Patents.google.com, , 2018,
<https://patents.google.com/patent/US20170174472A1/en> [accessed 8 November 2018].

3MANAGING FINANCIAL RESOURCES AND DECISION
regarding the shops, offices as well as industrial building takes place through deliverance
of quality information to the end consumers and overall reputation that the company is
being carrying throughout the years of its business.
 Planning vs. Strategy – Effective planning and strategizing the planning towards efficient
implementation renders operational advantage to any form in the build environment
sector. Notably, MAN4FRM Ltd, is such kind of firm which should not only think to
advance itself towards future profitability but also should focus on the alternative actions
that it can opt for accomplishing their objective through planning maneuver4.
 Managerial Culture - MAN4FRM Ltd. requires strong program oriented management
skills to monitor the wide range of variables that ensures that the projects will meet the
time schedules and budgetary requirements. The importance of meeting project
guidelines and deadlines are very important in case of MAN4FRM Ltd5. Effective
command on the operational management segment is of high demand in order to
accomplish delegated tasks and maintain a track of the influential variables that are allied
to the similar project simultaneously followed by scheduling, quality management, safety
management and cost control.
 Organizational structure – There exists hierarchical structure in MAN4FRM Ltd based on
the functional expertise from top management that works on decision making to the
bottom line labor force that implements the decisions. Hence, operational management
4 "Production operation management using Manufacturing Execution Systems (MES) - IEEE Conference
Publication", in Ieeexplore.ieee.org, , 2018, <https://ieeexplore.ieee.org/abstract/document/7416334> [accessed 8
November 2018].
5 "Google Patents", in Patents.google.com, , 2018, <https://patents.google.com/patent/US8966574B2/en> [accessed
8 November 2018].

4MANAGING FINANCIAL RESOURCES AND DECISION
should get channelized effectively from top to bottom and vice-versa in order to ensure
that the undertaken projects are moving off through the appointed timeline.
Figure 1: Cost reduction due to efficient Operation Management
Disadvantages: Operational Management
 Risk Management – Operational management initiatives if not undertaken properly then
it increases the risk related to security of men working on –sites. Proper security
initiatives are of crucial need to ensure safety of the labor force along with avoiding
conditions that may threaten their health. Other than this environmental damage, project
delays as well as economic downturns are indirectly affected due to poor relationship
with the local government, sub-contractors as well as other stakeholders.
 Outsourcing – The agility of MAN4FRM Ltd improves its service delivery based on
customer needs in terms of technology as well as design as preferred by the customers.
Since sometimes the functional areas gets too deeply entrenched and the customers are
always not enough fragile to cooperate it is essential to outsource of some of the business
activities to maximize profit as well as keep the consumers satisfied within the projected

5MANAGING FINANCIAL RESOURCES AND DECISION
deadlines of the construction task. The aspects of outsourcing that may make operational
management disadvantageous can be represented as follows:
 If enough of MAN4FRM Ltd services and product parts are outsourced to the
suppliers then other rival firms may buy them and create competitive products.
 Suppliers may subtly steer the target consumer base from MAN4FRM Ltd, if they
are extensively allowed to deal directly for their own business and hence
MAN4FRM Ltd may lose its consumers gradually6. These necessitates the fact
that the operation of the services should be effective examined by MAN4FRM
Ltd before outsourcing them unless MAN4FRM Ltd may get disconnected from
its consumers.
 Outsourcing to multiple suppliers may reduce the leakage risk however it will
enhance the managerial overhead. Moreover, there is linkage cost related to
outsourcing7.
Conclusion
The aspect of operational management consist of optimum allocation of resources,
overseeing future requirements, planning production strategy, effectively control and monitoring
of the intermediate processes in a design and cost efficient way, etc. Thus in case of a firm like
MAN4FRM Ltd, operational management is not only concerned with efficiently converting
labor, materials, capital and other resources into goods and services with the objective to
6 "An Operation Management Cloud Ecosystem for Smart Buildings Based on Internet of Things - IEEE Conference
Publication", in Ieeexplore.ieee.org, , 2018, <https://ieeexplore.ieee.org/abstract/document/8446174> [accessed 8
November 2018].
7 "World Class Manufacturing: The Next Decade", in Simonandschuster.com, , 2018,
<http://www.simonandschuster.com/books/World-Class-Manufacturing-The-Next-Decade/Richard-J-Schonberger/
9781476747347> [accessed 8 November 2018].

6MANAGING FINANCIAL RESOURCES AND DECISION
maximize the profit of the organization but also focuses in quality control, statistical process
control, human resources and their utilization followed by facility and support to target consumer
base.

7MANAGING FINANCIAL RESOURCES AND DECISION
References
"An Operation Management Cloud Ecosystem for Smart Buildings Based on Internet of Things -
IEEE Conference Publication". in , , 2018,
<https://ieeexplore.ieee.org/abstract/document/8446174> [accessed 8 November 2018].
"Google Patents". in , , 2018, <https://patents.google.com/patent/US8966574B2/en> [accessed 8
November 2018].
"Production operation management using Manufacturing Execution Systems (MES) - IEEE
Conference Publication". in , , 2018, <https://ieeexplore.ieee.org/abstract/document/7416334>
[accessed 8 November 2018].
"Supply Chain Management vs. Operations Management – Florida Tech Online". in , , 2018,
<https://www.floridatechonline.com/blog/process-improvement/supply-chain-management-vs-
operations-management/> [accessed 8 November 2018].
"The Handbook of Logistics and Distribution Management". in , , 2018,
<https://books.google.co.in/books?
hl=en&lr=&id=39RZAgAAQBAJ&oi=fnd&pg=PR3&dq=operational+management+disadvanta
ges+and+advantages&ots=nItFTOyZpd&sig=ZmUcIJJzUoGVrYMLDZDXnLv9nDk#v=onepag
e&q=operational%20management%20disadvantages%20and%20advantages&f=false> [accessed
8 November 2018].
"US20170174472A1 - Brake operation management in elevators - Google Patents". in , , 2018,
<https://patents.google.com/patent/US20170174472A1/en> [accessed 8 November 2018].
"US9031703B2 - Operation management apparatus, operation management method, and
operation management program - Google Patents". in , , 2018,
<https://patents.google.com/patent/US9031703B2/en> [accessed 8 November 2018].

8MANAGING FINANCIAL RESOURCES AND DECISION
"World Class Manufacturing: The Next Decade". in , , 2018,
<http://www.simonandschuster.com/books/World-Class-Manufacturing-The-Next-Decade/
Richard-J-Schonberger/9781476747347> [accessed 8 November 2018].