Operations Management Report: Caterham Cars, LO3 & LO4 Analysis

This report provides a comprehensive overview of operations management, exploring various approaches such as Lean Production, Six Sigma, and Total Quality Management (TQM). It delves into the importance and value of operations management, including process design, logistics, and effective distribution systems. The report also examines key business environment factors like Corporate Social Responsibility (CSR), culture, ethics, and sustainability, and their impact on managerial decision-making. The analysis includes a case study on Caterham Cars to illustrate the practical application of these concepts, concluding with recommendations for implementing TQM and managing logistics for improved market share and profitability. References to academic sources are included to support the analysis.

Management and Operations
LO3 & LO4

Table Of Content
 Introduction
 Operational management approaches
 Importance and values of operations management
 Business environment factors
 Conclusion

INTRODUCTION
Operations management is the
business practices which help the
managers to evaluate possible
efficiency within business
operations. It is the basic process
of converting raw material into
finished goods and also ensure
that, they generate maximise
output in comparison to actual
input.

Key approaches to operations management
There are different kind of approaches
which are undertaken into account by
organisation to maintain operational
activities of company effectively.
Lean production: This is the kind of
approach where organisation focuses on
cost cutting while maintaining quality. It
is used in every aspect of business from
design, through production.

Contd..
Roles of leaders: In this case leader has to figure out the flaw in production
department and provide solution for reducing the waste for betterment and
growth of the company. Further the major role of leaders to encourage
employees to achieve the desire goal in the given time frame.
Roles of managers: Here the role of manager in Caterham cars is to maintain
the productivity by proper structure. Hence management can involve
employees in the continuous process of improvement and should avoid
waste for gaining maximum profit for the company.

Contd.
Six sigma: It is a method which provide
organisation tool to improve the
capability of the business process. This
also increase the perfection and decrease
the process of variation which in result
leads towards quality product and service.
In this leaders ensure about efficiency by
motivating employees where as manager
provide proper training to achieve six
sigma approach.

Contd..
Roles of leaders: Leaders should focus on the infrastructural activities of the
company and empower worker for better use of tool and methodology which
help in introducing proper use resources effectively. Along with this, leaders has
to manage the resources to manage the demand and supply of the company.
Roles of managers: The main role of leaders to provide intense training and
development programmes for efficient use of Six sigma. Manager of Caterham
should take initiative and provide necessary statistical tool and other Six Sigma
methodologies across organizational boundaries.

Contd..
TQM: Total quality management is the
continual process of detecting and
reducing or eliminating error from
the company. In this leaders guide
workers whereas manager provide
resources for completion of work.
Both leaders and manager have the
reponsbility to achieve desire aims
and objectiev effectively.

The importance and value of operations
management
The main purpose of administration indicates to the process and activity of
managing and controlling the business enterprise function which acts and
operate for making profit and execute the business effectively.
Process design: This is the prime function which is essential for the company
to maintain in order to provide quality product and services. This is crucial
for the Caterham Cars to redesign the process and make changes for
expansion and growth.

Contd..
Logistic and inventory: It is essential for Caterham to improvise the
organisation and put focus on logistic and inventory as they are the most
essential aspect for firm to maintain.

Contd..
Effective distribution system: Nowadays having efficacious distribution system aid
firm to earn profit and improve the market share effectively. It is essential for the
Caterham to maintain and chose most proper distribution system as it is directly
responsible for the maintaining demand and supply present in the market.
Management by objective: In this case company provide define set of target to
Caterham employees and appraisal are set on the basis of objectives. The manager
and leaders set define target and it is the reasonability of employee to achieve the
desire goal in a given time frame.

Identify the business environment factors which
affect the overall operational management as well as
decision making process of managers or leaders
Corporate Social Responsibilities
(CSR): It is very essential factor
for the managers to manage their
operations at very large scale. In
order to improve social, financial or
environment performance of
Caterham Cars, managers consider
this factor and formulate strategies
accordingly.