Case Study: Operations Management Analysis of New Zealand Post (504)

This case study provides an analysis of operations management within New Zealand Post, a state-owned organization providing postal services. It examines the application of operations management principles, including reality, organization, change, management of passion, and accountability, to address operational issues like declining performance and inconsistent employee behavior. The analysis also incorporates the APICS OMBOK framework for managing operating practices and discusses continuous improvement principles and models such as PDCA. Furthermore, the study explores internal and external compliance requirements for New Zealand Post, culminating in conclusions and recommendations for enhancing operational efficiency and effectiveness. Desklib offers a variety of past papers and solved assignments for students.

Running head: OPERATIONS MANAGEMENT IN NEW ZEALAND POST
OPERATIONS MANAGEMENT IN NEW ZEALAND POST
Name of the Student
Name of the University
Author Note

1OPERATIONS MANAGEMENT IN NEW ZEALAND POST
Table of Contents
Introduction....................................................................................................................2
Analysis..........................................................................................................................2
1) Discussion and application of principles and practices of Operations
management...........................................................................................................................2
a) i) Definition of OM principles...........................................................................2
ii) Application to New Zealand Post......................................................................4
iii) Contribution of principles on operational efficiency........................................5
b) i) Definition of OM practices.............................................................................5
ii) Application to New Zealand Post......................................................................6
iii) Contribution of practices on operational efficiency.........................................7
2) Discussion of 4 principles, 2 models and techniques of continuous improvement
................................................................................................................................................7
3) Discussion of internal and external compliance based requirements for New
Zealand Post...........................................................................................................................9
Conclusions..................................................................................................................10
Recommendations........................................................................................................11
References....................................................................................................................13

2OPERATIONS MANAGEMENT IN NEW ZEALAND POST
Introduction
New Zealand Post is a state-owned organization that aims at providing postal services
in different parts of New Zealand. The New Zealand Post Office is a government based
agency that offers different types of services including, telecommunications, banking and
postal. The organization had however started facing major economic issues by the year 1980
(Nzpost.co.nz., 2019). New Zealand Post had been able to turn the losses of The New
Zealand Post Office into profits in the first year of its operations in the industry. The
organization had been able to gain a profit of 72 million New Zealand Dollars when it first
started its operations. The organization had started its life with more than 1200 post offices
that were later on turned into Post Shops (Nzpost.co.nz., 2019).
The technological changes that have taken place are influencing the postal services
that are provided by an organization like New Zealand Post. The organization has thereby
faced the largest upheaval based on the lack of demands related to letter based services. New
Zealand Post has been able to gain the topmost position in the postal services that are offered
in the country (Choi, Chan & Yue, 2017). The company has been delivering greater than one
billion letters each year almost ten years ago. However, the recent changes that have taken
place in the industry have reduced the profitability levels and revenues of the organization.
The company has lost a revenue of around 30 million per year due to the changes in the
industry (Chan et al., 2017).
Analysis
1) Discussion and application of principles and practices of Operations management
a) i) Definition of OM principles
As discussed by Grant, D. B., Trautrims, A., & Wong, C. Y. (2017), operations
management related principles mainly involve different types of activities that are performed

3OPERATIONS MANAGEMENT IN NEW ZEALAND POST
by the modern organizations that include, planning, supervising and organizing different
processes and further making required improvements for the higher levels of profitability.
The different adjustments that are made by various organizations for the purpose of
supporting strategic goals are considered to be a major part of the operations management
base process (Guha & Kumar, 2018). The five major principles related to operations
management that can be implemented by modern organizations are as follows,
 Reality – Operations management based processes need to focus on problems
rather than techniques or tools that are implemented. The tools related to
operations management cannot be considered to be universal solutions to
different issues that are faced by the organizations (Heizer, 2016).
 Organizations – The manufacturing processes in the organization are
interconnected in nature and successful operations management is based on
the ways by which the methods can be managed (Hitt, Xu & Carnes, 2016).
 Change – Change is considered to be an important part of the operations
management related activities that are performed by the organizations. The
organizations need to consider the changes that have taken place in the
external environment. Embracing the changes is considered to be the most
important part of the successful management of the organizational operations
(Hübner, Holzapfel & Kuhn, 2015).
 Management of passion – The passion levels of employees is considered to be
a huge driver of growth of the organizations. The managers of an organization
need to play a major role in the ways by which passion of the employees can
be used in order to increase the profitability of the organizations (Karlsson,
2016).

4OPERATIONS MANAGEMENT IN NEW ZEALAND POST
 Accountability – The managers have the major responsibility of setting the
metrics and rules that are based on definition of the responsibilities of
subordinates. Managers also need to keep check on the ways by which goals
are met by the employees. The overall goals of the organization need to be
effectively aligned with the goals that have been set by the employees
(Kenworthy & Balakrishnan, 2016).
ii) Application to New Zealand Post
New Zealand Post is currently facing some major operational issues that can be
solved in an effective manner with the help of the five major principles that have been
discussed. The major issues are related to the decrease in performance levels and change in
the behaviour of the frontline leadership based employees (Mahadevan, 2015). The
inconsistency that has been depicted by the employees in different areas of the operations is
considered to be an issue that is affecting the organization. The reallocation of resources and
process related to the reframing of internal strategies that have been set by the company have
been able to affect the operations management based systems (Matthias et al., 2017).
The first principle of operations management has an impact on the ways by which
New Zealand Post can change its focus and try to solve the problems. The development of
chain of processes is the second principle that is able to affect the implementation of
consistency in work process of employees. New Zealand Post needs to embrace the changes
that have taken place in the external environment and has to develop the processes according
to changed demands and needs (Min-jung & Remy, 2018). The passion of employees of New
Zealand Post can be managed by the organization in order to improve the performance of
frontline employees. The leadership and managers of New Zealand Post will also play a
major role in solving the issues that are faced by operations management based department
(Piran et al., 2016).

5OPERATIONS MANAGEMENT IN NEW ZEALAND POST
iii) Contribution of principles on operational efficiency
The five principles of operations management are able to increase the levels of
efficiency of New Zealand Post. The effectiveness of the organization will also be increased
with the help of the proper implementation of principles. The principles are able to provide
major levels of contribution to the ways by which the issues faced by the organization can be
resolved (Qin & Nembhard, 2015). The leadership of the organization will also be able to
improve with the help of proper implementation of the five major principles of operations
management that have been discussed. New Zealand Post will be able to improve its
operations in the industry with the help of the principles and their application (Qin,
Nembhard & Barnes II, 2015).
b) i) Definition of OM practices
As discussed by Schönsleben (2016), operating practices mainly refer to methods that
are related to the operations of a business that provides different services or products. The
daily practices that are implemented by the organization are considered to be the most
important part of the operations. The safety related to the employees and organizational
processes that are observed by the companies are termed as the operating practices. Operating
practices can also be considered to be ingrained within different methods of the organization
that help in promoting safety in a proper way.
According to Slack and Brandon-Jones (2018), the procedures and guidelines need to
be developed carefully by an organization in order to maintain the operating practices in an
effective manner. Operating practices of an organization can also be developed as a part of
risk management based programs. Operating practices can be divided into two major
categories that are core operations that are based on risk management related practices,
warehouse management, distribution management, inventory practices and logistics based

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practices. The facilitating practices on the other hand are based on HR based activities and
the marketing related activities as well.
APICS OMBOK framework or operations management body of knowledge
framework can be implemented for the purpose of managing the operating practices. The
APICS OMBOK framework is able to provide an outline related to the different knowledge
areas which can be used to manage different processes for the production and delivery of
common services and products. The descriptions that are a part of this framework are able to
provide an overview based on different aspects of the organization (Apics.org., 2019).
Operations management is considered to be a dynamic field the APICS OMBOK
framework is able to help in implementation of different changing perceptions that are a part
of the industry. APICS OMBOK framework mainly includes different basic tools that can be
commonly used in the emerging technologies related to operations management (Apics.org.,
2019). Operations management is mainly able to focus on systematic direction that can be
provided to different processes that are involved in production, sourcing and the delivery of
services and products. Different technical aspects that are related to effective production have
been considered in the APICS OMBUK framework (Apics.org., 2019).
ii) Application to New Zealand Post
As discussed by Swink et al. (2017), the principles that are related to APICS OMBUK
framework can be used in an effective manner with the help of proper implementation in the
process of resource allocation and implementation of the internal strategies. Corporate
management will be improved in an effective manner with the help of the practices of this
framework. The costs related to operations can be reduced effectively with the help of
practices that have been developed as a part of this framework.

7OPERATIONS MANAGEMENT IN NEW ZEALAND POST
iii) Contribution of practices on operational efficiency
The APICS OMBUK framework is able to contribute to the improvement of different
parts of the operations management related activities. The knowledge based tools that are a
part of this framework have an impact on the proper allocation of different types of resources.
The appropriate resource allocation is able to reduce the cost based on operations. The
efficiency of the organization will also increase with the help of proper tools that are used in
the operations (Tsay et al., 2018).
2) Discussion of 4 principles, 2 models and techniques of continuous improvement
The four principles of continuous improvement have an impact on the operations of
different organizations.
Principle 1 – Stop fixing and start improving – This principle is based on the ways by
which an organization needs to aim at reducing the focus on methods and processes and start
implementing creativity and innovation in an effective way. The improvement of existing
processes is provided with more importance (Turkulainen, Kauppi & Nermes, 2017).
Principle 2 – This principle of continuous improvement aims at stating that the best
practices of the organization are the existing ones and they can be improved effectively in
order to embrace change (Wisner, 2016).
Principle 3 – The changes that can be implemented in behaviour are considered to be
more important in comparison to the changes which are implemented in the processes. The
changes in an organization have to be driven at pragmatic levels and the frontline and middle
managers have an influence on the processes (Wei & Zhang, 2018).
Principle 4 – The levels of failure that are faced by the organization are able to
provide major opportunities that are related to success that can be gained. The experiments

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that are conducted by the organizations are able to provide major growth opportunities (Wei
& Zhang, 2018).
The two major models of continuous improvement that can be implemented by
modern organizations are as follows,
 PDCA or Plan-Do-Check-Act model – As discussed by Turkulainen, Kauppi
and Nermes, (2017), the first step of the procedure is “Plan” which is based on
recognising the opportunities and plan the change that can be implemented.
The second step is “Do” which is based on the ways by which the change can
be tested and a small scale based study will be conducted. The third step is
“Check” which is based on the review of the test, analysing the results and
identifying the learnings. The fourth step is “Act” which is related to the
implementation of the actions that can be taken in order to implement the
learnings that have been gained from the previous step (Slack & Brandon-
Jones, 2018).
 TQM or total quality management – As discussed by Qin, Nembhard and
Barnes II (2015), total quality management or TQM is considered to be a
process that helps the organization to achieve high levels of excellence. Total
quality management in the organization is able to support constant attainment
of the satisfaction levels of the consumers with the help of an integrated
system that is based on the techniques, tools and levels of training. The
continuous improvement in an organization is based on the proper
development of a total quality management based process (Min-jung & Remy,
2018).

9OPERATIONS MANAGEMENT IN NEW ZEALAND POST
The two models and techniques of continuous improvement can be implemented by
New Zealand Post in order to improve the different organizational processes in an effective
manner. The quality of services that are offered to the customers are influenced by the
process of continuous improvement that is implemented in an effective way. The
organization will be able to improve the leadership of frontline employees in order to solve
the various issues that are faced by New Zealand Post (Kenworthy & Balakrishnan, 2016).
3) Discussion of internal and external compliance based requirements for New Zealand
Post
As opined by Hübner, Holzapfel and Kuhn (2015), New Zealand Post can operate in
the market in a profitable way with the help of proper compliance based on the internal as
well as the external requirements of the organization. The internal compliance based
requirements are as follows,
The operational procedures and policies have an impact on the ways by
which New Zealand Post is able to develop various strategies as well
as organizational operations (Hitt, Xu & Carnes, 2016).
The quality based standards are considered to be highly important for
an organization that operates in the service providing industry. The
postal services need to be offered in such a manner so that the
company is able to develop an advantage in the industry. (Grant,
Trautrims & Wong, 2017)
The ethical considerations are also important for the operating
procedures that are developed by New Zealand Post. The organization
will be able to operate in a profitable manner with the help of ethical
sustainable operations (Choi, Chan & Yue, 2017).

10OPERATIONS MANAGEMENT IN NEW ZEALAND POST
The external compliance based requirements that need to be implemented by New
Zealand Post are as follows,
The safety and health related factors of the employees are considered to be
highly important for the effective operations of New Zealand Post. The
legislations need to be implemented by the organization in order to maintain
the leadership based position (Hübner, Holzapfel & Kuhn, 2015).
Financial factors are also highly important for the ways by which New
Zealand Post is able to improve the levels of operations and procedures with
the help of proper compliance with the financial requirements. The financial
requirements are considered to be highly important for the proper operations
of New Zealand Post (Kenworthy & Balakrishnan, 2016).
The management of the environment is another major factor that is related to
the compliance of external factors. The environmental factors are able to affect
the operations and services offered by New Zealand Post in an effective
manner (Min-jung & Remy, 2018).
Conclusions
The operations management based principles that have been suggested by Randall
Schaeffer can be implemented by New Zealand Post in order to improve the operations and
issues that are faced. The leadership related issues that are faced by the organization can be
solved with the help of the five major operational management based principles that are
implemented. The principles will play a major role in improving the work process of the
managers and improve their productivity as well.
The operating practices that are a part of the APICS OMBUK framework will also be
able to play a major role in the ways by which New Zealand Post is able to solve the issues

11OPERATIONS MANAGEMENT IN NEW ZEALAND POST
that are related to proper allocation of resources and reframing of the internal strategies. The
framework based on APICS OMBUK is able to support the organization in order to the
improve its position in the industry.
The internal as well as external compliances that are related to the operations of New
Zealand Post are able to affect the ways by which the organization is able to maintain the
position that has been developed in the industry. The organization needs to comply with
different aspects related to the compliances in order to develop effective operational
practices. The operational practices are able to play a major role in solving different issues
that are being faced by New Zealand Post.
Recommendations
The operational plan of New Zealand Post will be based on the two major strategic
goals of the organization. The two strategic goals or tactical goals are as follows,
Tactical goal 1 – New Zealand Post needs to develop its position as an
environment friendly organization. Tactical objectives – The company can
encourage customers to recycle the packaging materials. The deliveries in
different urban areas can be managed with the help of electric vehicles.
Justification – The strategic goal or tactical goal based on the improvement of
the environmental image of New Zealand Post is related to the ways by which
the organization is able to operate in the industry. The levels of sustainability
of the organization is considered to be an important factor that is related to the
first strategic goal.
Tactical goal 2 – The safety consciousness based image of New Zealand
Post can be improved in order to develop an advantage of the organization.
Tactical objectives – The levels of fatalities that can happen in the work

12OPERATIONS MANAGEMENT IN NEW ZEALAND POST
process of employees in the organization can be reduced to zero within the
next few years. The reduction of injuries in the work process of the employees
is a major factor that is able to affect the operations of the New Zealand Post.
Justification – The second strategic goal that has been set is also able to act as
an important factor in developing a safety based image of the organization.
The major goal of New Zealand Post is based on the ways by which the
organization is able to maintain its advantage in the industry in an effective
manner. The advantage that can be developed by New Zealand Post in the
industry is affected by the second strategic goal that has been set by the
organization in the postal delivery based industry.
New Zealand Post can implement the two strategic or tactical goals in order to meet
the overall objectives that have been set by the organization. Operational management based
objectives of New Zealand Post are fulfilled with the help of implementation of the tactical
goals.

13OPERATIONS MANAGEMENT IN NEW ZEALAND POST
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