Analysis of Current Trends and Challenges in Operations Management

This report provides an overview of current trends and challenges in operational management. It discusses the significance of operational management in achieving organizational goals and highlights key trends such as global competition, time reduction through technological advancements, and the importance of business process improvements. The report also addresses challenges like maintaining sustainability and commitment in a competitive market. It references studies by various authors to support its findings and emphasizes the need for organizations to adapt to these trends and overcome challenges to succeed. The analysis covers the impact of these factors on operational strategies, the importance of customer satisfaction, and the role of commitment in achieving market leadership.

CURRENT TRENDS AND
CHALLENGES IN
OPERATION
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Current trends of operational management.................................................................................3
Challenges in operational management......................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Operational management is a set of activities and procedures that are helpful for the
workforces of an organisation to execute their business functions in an order to mark up a great
success and achieve the desired set of goals. Similar to this, the report is providing information
about the current trends and challenges faced by organisation in managing their business
operations.
Current trends of operational management
According to the study of Hill and Hill (2012) whose study depicts that the decision of
organisation for adopting the policies, structuring and processes of operational management are
highly significant to their overall functioning and activities of gaining achievements. In addition
to this, the operational management helps the organisational management to perform the entire
task assigned to them. Thus, it is necessary for them to follow and execute their business
functions as per the procedures, structures and strategies defined in the operational management.
Along with this, the information provided by Oakland (2014), addressed that it is essential for
the managerial aspects like employees, managers and workers to determine a perfect strategy for
completing the entire business operations allotted under them by planning the action plan defined
as per the operational management processes.
On the contrary to this, Davenport (2013) depicted that operational management is
practical and futuristic thus, the management of an organisation has to make decisions and take
actions at the moment of completing the task. This process helps them in determining the
possible results and outcomes from the processing the operations defined as per the operational
management. For this, they need to assess the information about the present operational
strategies prevailing in the market and consider them to plan their set of actions. In that context,
the following are the trends of operational management which are to presently applied and
utilised in the market: Global competition – The rising level of competition has forced the managerial
participants of every company to identify and address the most effective, productive and
profitable set of operations and functions for their business. This would help them in
defeating the competition and mark up greater level of success and overall achievements.
For instance, the business operations of Ritz Carlton Hotel is mainly focused on

maintaining the level of customers' satisfaction and improving overall employees'
performance which has gained them with acquiring greater market share and values. Time reduction - The adaptation of new, innovative and advance set of technologies is
highly increasing and has become the most preferred trend of operational management.
The main purpose for introducing and using new set of engineering and IT applications
are to reduce the level of time consumed and required in executing the entire set of
operations (Anderson, Anderson and Parker, 2016). Like, Amazon was the first company
to introduce the tracking facilities for the packages and assigning the delivery date.
 Business processes - It has become necessary for an enterprise to maintain their flow and
direction of business operations in order to maintain their customers' attention and retain
their market share. The recent up gradation in technologies have forced the organisation
to invest funds in improving their business operations and overall management, which are
like:
◦ Computer-Aided Design (CAD)
◦ Direct/Indirect Computer Aided Manufacturing(DCAM or ICAM)
◦ Flexible Manufacturing System (FMS)
◦ Computer Integrated Manufacturing (CIM)
Challenges in operational management
It has been evident from the explanation of Monczka and et.al. (2015), that an
organisation and their operational management team has to face many challenges in executing
and completing the whole set of business functions. Thus, it has become essential for them to
serve better services and gain higher form of customer satisfaction in order to achieve planned
list of goals and objectives. In addition to this, the efficiency of the organisational management
to overcome such challenges helps them to acquire greater part of market share. The challenges
generally helps the managerial members to develop their effectiveness and overall working
abilities of their workforces in order to attain high level of achievements.
In the current era of globalisation, the recent types of improvements and changes has
implemented and introduced many critical situations for every kind of business and for each
sector. As specified by Smith, Bruyns and Evans (2011) which clears that the capabilities of an
organisation for facing and overcoming the approaching challenges are directly linked with its
proficiency of leading the market and gaining better set of results. Their study has evaluated the

forms of challenges that are mostly encountered by the operational management team and their
organisation which are: Sustainability – It is highly essential for an organisation to maintain its presence in their
targeted market and employed sector. For this, their management needs to focus and
direct their efforts on maintaining the customers' participation and overall satisfaction.
Their customers are the connecting feature which assist them in holding up their market
position and its long run existence (Clegg and Wan, 2013). For instance, Nestle has
addressed numerous challenges in their aimed market and faced higher level of
competition but still has able to manage their sustainability in the market. As their main
target was on identifying the best kind of approaches and practices that are helpful in
organisation's sustainability.
 Commitment – The research done by Brown, Bessant and Lamming (2013) has
witnessed that a company is able to lead the market only when their management is able
to maintain their operational commitments and approaches of functioning. Being,
focused on accomplishing the operational task help the company in facing the challenge
during placing better set of business functions. For instance, Apple has maintained their
business their entire set of commitment made to their targeted market. They have
brought great form of innovative and creative features in their products which has helped
them to retain their customers' attention and market attraction.
CONCLUSION
The report is articulating about the importance for an organisation to function as per the
current trends of operational management. This would help them in achieving greater form of
business results and objectives. Along with this, the report has concluded about the types and
level of challenges faced by the organisation.

REFERENCES
Books and Journals
Brown, S., Bessant, J. R. and Lamming, R., 2013. Strategic operations management. Routledge.
Clegg, B. and Wan, Y., 2013. Managing enterprises and ERP systems: a contingency model for
the enterprization of operations. International Journal of Operations & Production
Management. 33(11/12). pp. 1458 – 1489.
Davenport, T. H., 2013. Process innovation: reengineering work through information
technology. Harvard Business Press.
Hill, A. and Hill, T., 2012. Operations management. Palgrave Macmillan.
Monczka, R. and et.al., 2015.Purchasing and supply chain management. Cengage
Learning.Melnyk, S. A., Cooper, M. B. and Hartley, J. L., 2011. Managing operations
across the supply chain. New York, NY: McGraw-Hill Irwin.
Oakland, J. S., 2014. Total quality management and operational excellence: text with cases.
Routledge.
Smith, D., Bruyns, C. and Evans, S. M., 2011. A project manager's optimism and stress
management and IT project success. International Journal of Managing Projects in
Business. 4(1). pp. 10 – 27.
Online
Anderson, M. A., Anderson, E. J. and Parker, G. 2016. Why Operations Management is
Important for Your Company. [Online]. Available through :
<http://www.dummies.com/how-to/content/why-operations-management-is-important-for-
your-co.html>. [Accessed on 4th July 2016].