Operations Management for Competitive Advantage: A Report

This report provides a comprehensive analysis of operations management (OM) and its crucial role in achieving competitive advantage, using Rolls-Royce as a case study. The report begins by detailing the strategic importance of OM in driving business success, outlining how effective operations contribute to financial planning, forecast-based planning, externally oriented planning, and strategic management. It then explores various analytical and philosophical approaches to OM problems, including Business Process Redesign (BPR), Reconfigurable Manufacturing Systems, Six Sigma, and Lean Manufacturing, discussing their applications and benefits. The report further examines OM challenges in both service and non-service sectors, highlighting issues such as managing overheads, monitoring performance, people demand, rising operational costs, and the importance of customer satisfaction. It constructs arguments for feasible OM strategies and proposes solutions to identified problems, emphasizing continuous improvement and innovation. Finally, the report recognizes and discusses topical issues in OM, such as concerns over productivity, the need to improve process quality, and customer satisfaction, providing insights from OM specialists. Overall, the report underscores the significance of efficient OM practices in driving profitability and sustaining competitive advantage in the business landscape.

Operations Management for
competitive advantage

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explain in detail the strategic role of operations to achieving competitive advantage..........1
Describe in detail analytical and philosophical approaches to OM problems........................2
Analyse operation management problems that arise in service and non service sector.........3
Construct an argument about feasible OM strategies and offer appropriate responses and
solution to OM problems........................................................................................................4
Recognise and discuss topical issues in OM and with OM specialist....................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Operation management is the procedure through which business will manage its practices
in order to create the effective and higher outcomes as per their potential. It is the process of
management through which they have designed and control the production and the working
norms to get develop the production of the products and services. It is the function of the
management that is responsible to get manage the overall process of creation and innovation of
the good and services that are served by the company to their customers (Erik, 2018). The
operation management involve the planning, coordination, staffing, controlling the different
resources that are more needed to get product effective services. This report is based on the
Rolls-Royce Motor Cars that is the automobile company and was established in 1998 and its
founder is Bayerische Motoren werke AG. This report includes the strategic role of the operation
to achieve the competitive advantage, detail analytical and philosophical approaches of operation
management, analysis of operation management problem in service and non service sector,
feasible OM strategies and topical issues in operation management.
MAIN BODY
Explain in detail the strategic role of operations to achieving competitive advantage
The strategic role of operation management have bring the benefits in lot of discipline
that lead more improvisation that also get facilitate the decision making process that emphasis
the probability to achieve better goals and objectives. As operation is the process that make the
system in both effective and efficient manner and also get manages that things get done in
perfection. In the recent scenario, development and making of strategy are more important as it
facilitate the sustainability within the business by which the targets get accomplished with more
easiness. The strategy will help the Rolls-Royce to get shift the attention to the major
technicalities that are required plan the long term goals and reflects the well being of the
company (Futaki, 2018). There are some of the strategic roles of operation that achieved the
competitive advantage and are as defined below as:
Basic financial planning: Rolls-Royce trace the formal planning by which the annual
budgeting has been performed that reduces the financial issues. It is the overall procedures under
which the revenue will get forecast, capital and cost to get identify the expense and costing of all
bases as per requirement.
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Forecast-based planning: It is more required that to reduce the complexity from the
business by which demand has been analysed to implicit the effective strategies within the Rolls-
Royce (Ruan, 2019). In this they have performed the documentation with that has measured the
technicality of the number of products and services that exceed the intellectual clutch.
Externally oriented planning: As in the change in the environment with that have
induce the render forecast the market to get more absolute changes. The experienced will provide
more accuracy and efficient understanding by which the selective change has been induced. In
this the key determinants will get induce more success by which new planning will get make by
which effective result get achieved (Futaki, 2018).
Strategic management: It is the single process by which the Rolls-Royce has managed
the different prospect by performing more strategy with diversified and multinational
manufacturing while making the specified operation. They have induce different mechanism
with that have plan the framework to get facilitate the decision making, make the process to
stimulate effectual planning and reinforce the value system that helps to make valuable changes.
Describe in detail analytical and philosophical approaches to OM problems
There are some of the different approaches that get used by the operation management of
the Rolls-Royce and are as defined below as:
Business process redesigns (BPR): It is an approach of OM through which the change
management which is more relatable to appropriate task needed to obtain the specific result that
are radically redesigned or re-engineering (Hu, 2018).
(Source: Business Process Reengineering, 2017)
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It has been recognised as the redesigned or the re-engineering to overhaul the Rolls-
Royce by with its key business by which the objective get accomplished in that the performance
of the company get more developed. It helps to gain the return on investment, quality of the
services and the cost control as well.
Reconfigurable manufacturing systems: It is the process that consist the different
characteristic as like modularity in which the control on the machines and tools will get more
modular by which more meaning will get added and the other redundancy get decreased. The
inerrability in which the rapid and effective change gets brings on the machinery parts (Itkin,
2018). It also get customised more flexibility by which more values get added to enlarge the
scalability of the business.
Six sigma: It includes the set of techniques and the tools that get used to improvise the
overall processes as it is the disciplined that is based on statistical data to get driven the
achievable approach to make continuous improvement by parallel removing the defect from the
production and operation process. It includes the measure process through which the
performance will get enhance by which the goal has been set that get achieved after the certain
period of time (Mutha, 2018). It is the theory that is based on the different principles under
which Rolls-Royce have make continuous focus on their customers, understand the need and
demand of the market, ensure that smooth process get flow, reduces the waste by removing the
defects and get ensure that systematic efforts get induce that enhanced the performance rate.
Lean manufacturing: It is the methodology that has huge focus to get minimise the waste
by simultaneously maximise the productivity of the business. Waste is something that will
induce negative impact on the business and with that the customer also not willing to pay that
amount. There are some of the different principles of the lean manufacturing within the Rolls-
Royce as like value, streams, perfection, pull and flow by which rate of affordability get more
developed. It has been used to reduce the wastage and the unnecessary inventory, speed up the
response time, extended the autonomy of the employee, ensure that all the products get quality
test and shorten the life cycle of production by which the more profit get gained by the business
(Iwai, 2018).
Analyse operation management problems that arise in service and non service sector
There are some different challenges that get faced by the service sector industry as like
Rolls-Royce in the operation management and that are as defined below as:
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Managing overheads: It is the over amount that get in the form of admin expenses,
utility charges, rent and the insurance etc. These are the loss that gets damage the image of the
business as like getting delay in utility payments, business equipments etc. For this Rolls-Royce
must have cut back the spending by recognition the requirement of the customers.
Monitoring performance: The performances of the employee affect the team and its
morale thus the productivity will also has huge impact. In this Rolls-Royce have set the
standardised indicators with that measure the performance of each employee and their working
effectiveness and on the basis of that provide the rewards (Kumrai, 2018).
There are some different challenges that get faced by the non- service sector industry as
like The Brilliant Club in the operation management and that are as defined below as:
People demand and higher expectation: The need and the relationship in between the
customer and the organisation has been changes a lot as the time passes the expectation of the
customer will keep on increasing. To get deliver the services as per the need and the demand of
the customer is the biggest challenge The field services are more in pressure as they it is more
difficult to get induce best with usage of best technology to collect better result (Miyamoto,
2018).
Rising cost of operations: It is also be biggest challenge in the non-service sector
industry as they have to manage the cost while operating different function and manage the
record making with that induce the appropriate expenses. The inaccurate information that
happens by human error will induce more cost quickly.
Construct an argument about feasible OM strategies and offer appropriate responses and solution
to OM problems
The operational management strategy defines the different methods under which the
Rolls-Royce has reach to their objective on timely basis. In this they have develop the strategy
by which have examine the effective and reliable system by analysing the utilisation of resources
and the work process as well (Manzini, 2018). In this the Rolls-Royce have provide the
continuous development and innovation in their products and services by which the customer
also get attract as with same the optimise supply chain get manages by which more profit gained
by the business. In addition this the inventory also get more managed under which the loss and
wastage get reduce by which the adequate outcome get achieved. In addition to this, Rolls-Royce
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make the perspective about the market requirement and on the basis of that have collect the
recent trends that get changes on random and continuous basis.
Recognise and discuss topical issues in OM and with OM specialist
There are some of the different topical issues in the operation management with the
operation management specialist of the Rolls-Royce and that are as defined below as
Concerned over productivity
As the operation management of the Rolls-Royce has feel a lot of pressure and get make
the better output from the efforts of the employee with more sufficiency. In this they have try to
“up to speed" and with that try to get improvise the faster and better growth and development of
the company with that have ensure that the continuous success has been gained by making more
effectual changes within the different operations (Suprayitno, 2018). The operation management
department of the Rolls-Royce have turn on the new software and from that make the support to
the performance of all the employees by which the error rate get decreased with that more
advanced profit get gained by the company.
Need to improve process quality
In thus the compliance issues and the error that is performed by the employee will make
huge cost to the Rolls-Royce and with that their profit ratio gets decreased. As in this from the
operation management the errors of the employee will get reduces while using the technologies
and in thus the safety get provide to them by which more relatedness get induced. In this Rolls-
Royce have uses the custom validations and uses the software to make stronger validity.
Worried about customer satisfaction
It is major issue as to satisfied the customer in by investigating the satisfactory aspect of
the customer by making the report and with that have make the KPI as key performance indicator
and make the service management group with that try to get satisfy the customer and make the
happier experience of them.
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CONCLUSION
It has been concluded from the above report that the operation management is more
important for the business as it manages the rate of production of the business by which the
profitable ratio will get more developed by which efficient outcome get achieved. There are
some different roles of the strategic operation management that helps to achieve the competitive
advantage by which more profits will get gain by the business in effective manner. There are
some of the different approaches of the operation management as like lean manufacturing, six
sigma, reconfigurable manufacturing system and Business process redesigns that is more helpful
to make more perfectness within the operation. In addition to this an argument that is about the
strategies of the operation management and the topical issues of the OM.
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REFERENCES
Books and Journals
Erik, W.L., 2018. Project management: the managerial process. McGraw-Hill.
Futaki, H. and Kobayashi, K., NEC Corp, 2018. Radio communication system, radio station,
network operation management apparatus, and network optimization method. U.S. Patent
10,015,703.
Futaki, H. and et. al., NEC Corp, 2018. Method and system for controlling radio parameter,
network operation management apparatus, and radio station. U.S. Patent 10,034,189.
Hu, Z.Z. and et. al., 2018. BIM-based integrated delivery technologies for intelligent MEP
management in the operation and maintenance phase. Advances in Engineering Software,
115, pp.1-16.
Itkin, Y. and Goldenberg, D., Mellanox Technologies Ltd, 2018. Simultaneous operation of
remote management and link aggregation. U.S. Patent 9,998,359.
Iwai, K., Panasonic Intellectual Property Management Co Ltd, 2018. Sales clerk operation
management apparatus, sales clerk operation management system, and sales clerk
operation management method. U.S. Patent 10,049,333.
Kumrai, T. and et. al., 2018. Optimising operation management for multi-micro-grids control.
IET Cyber-Physical Systems: Theory & Applications, 3(1), pp.24-33.
Manzini, M. and et. al., 2018. An integrated framework for design, management and operation of
reconfigurable assembly systems. Omega, 78, pp.69-84.
Miyamoto, K., Fujifilm Corp, 2018. Operation management system, control system and
operation control method. U.S. Patent 9,860,746.
Mutha, M.B. and et. al., CommVault Systems Inc, 2018. Secondary storage operation
instruction tags in information management systems. U.S. Patent 9,933,964.
Ruan, J. and et. al., 2019. A life cycle framework of green IoT-based agriculture and its finance,
operation, and management issues. IEEE communications magazine, 57(3), pp.90-96.
Suprayitno, H. and Soemitro, R.A.A., 2018. Preliminary Reflexion on Basic Principle of
Infrastructure Asset Management. Jurnal Manajemen Aset Infrastruktur & Fasilitas,
2(1).
ONLINE
Business Process Reengineering, 2017. [Online] Available through: <
http://consultus.hr/business-process-reingeneering/>.
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