Northern Business Academy: Operations Management Report Analysis

This report, submitted by Manghalaambiigai Vijaya Segaran, analyzes operations management within a business context. It defines operations management as the organization and monitoring of production and service activities, emphasizing its importance in managing goods, services, and employees to maintain product quality and reduce costs. The report discusses the 'three Es' – efficiency, effectiveness, and economy – as key performance factors. It explores the trade-off between cost minimization and quality maximization, and the role of quality management techniques like Porter's Five Forces analysis in establishing business strategy. Furthermore, it highlights the significance of adaptability and flexibility in today's business environment, and outlines the five key performance objectives: quality, cost, speed, dependability, and flexibility. The report references several sources to support its analysis.

Learner Name Manghalaambiigai Vijaya Segaran
Learner Registration No. 220324005
Study Centre Name Northern Business Academy
Qualification Title OTHM Level 6 Diploma in Business Management
Unit Reference No. LPM 3015
Unit Title Operations Management
Word Count 873 Words
Submission Date 27 June 2022
Declaration of authenticity:
1. I declare that the attached submission is my own original work. No significant part of it has been
submitted for any other assignment and I have acknowledged in my notes and bibliography all written
and electronic sources used.
2. I acknowledge that my assignment will be subject to electronic scrutiny for academic honesty.
3. I understand that failure to meet these guidelines may instigate the centre’s malpractice procedures
and risk failure of the unit and / or qualification.
V. Mangala
_______________
Learner signature
Date: 27 June 2022
_________________
Tutor signature
Date:

Task 1
Operations management is the process of organizing, directing, and monitoring the production
and manufacturing activities as well as the provision of services. In a firm, operations
management is essential since it helps with the effective management, control, and monitoring of
goods, services, and employees. Operations management oversees the efficient delivery of the
goods in addition to planning and scheduling what needs to be done when. People achieve more
and work more productively with Operations management.
Operation Management is so important to maintain Product Quality. Operations management is
the first department in a normal company to examine a product's dependability and durability.
Operations management looks out for the quality of goods or products that would satisfy
customers both before and after delivery. A high-quality product gives you an advantage over
rival businesses. On the other hand Through productivity, quality products and customer
satisfaction, cost incurred on products servicing is maximally reduced. This simultaneously leads
to increased revenue. Only operations management can make this possible. In reducing operating
cost, there is also waste reduction. Exact number/size of products is produced as requested via a
proper operations management.
2.Value of the Three E’s
Efficiency, effectiveness, and economy, sometimes known as the "three Es," are three important
performance factors to assess in this regard. An company can make sure it is offering good value
for money by using these three Es.

Efficiency: Optimizing the process by which inputs are converted into outputs, maximizing the
output generated from units of resource utilized.
Effectiveness: The degree to which an organization achieves its goals; the link between intended
and actual results (outputs)
Economy: Maximizing the resources (inputs) that an organization possesses; attaining the right
amount and quality of resources at the lowest cost achievable.
3.Cost Minimization And Quality Maximization
The optimum trade-off between cost and quality is one of the fundamental goals of operations
management because cost and quality are inherently incompatible. To give the consumer the best
deal possible, cost reduction involves reducing production expenses and other costs associated
with value delivery. Price-sensitive client segments can be targeted since cost savings in the
manufacturing process are transferred to the final consumer. The majority of the company has
embraced a cost-cutting plan as a new market penetration strategy and to increase their market
share in the current market.
Not all companies select high-quality goods. Additionally, their profit margins are lower.
However, the company is indifferent with finding high quality as long as there are customers
who need its cheap, low-grade products

4. Quality management techniques
By identifying the structure of an industry, the Five Forces analysis is frequently used to
establish company strategy. In any area of the economy, a company's long-term profitability can
be increased by using Porter's model to analyse the level of industry rivalry.
A corporation loses power the more rivals there are and the more identical goods and services
they provide. A company has more power to demand higher pricing and bargain for better terms
in order to boost sales and profits when there is no competitive rivalry.
In todays complex and uncertain world,the businesses must prioritise adaptability as a must-have
organisational trait in order to position themselves for long-term success in this changing
environment. Traditional measures of business fitness are no longer adequate. To be adaptable
today and survive tomorrow, they must change their perspective and transform quickly and at
scale
In order to position themselves for long-term success in this changing environment,
organisations must prioritise flexibility as a necessary organisational feature in today's
complicated and uncertain world. Traditional company fitness metrics are no longer sufficient.
They must alter their viewpoint and shift swiftly and at scale in order to be adaptive today and
survive tomorrow.

5. Five performance objectives of operations
Management
The same five key performance objectives apply to all operations. Among them include quality,
price, delivery, dependability, and flexibility. These five objectives typically have balanced
internal and outward effects.
Quality
Quality is described as consistent adherence to consumers' expectations, which has a big impact
on whether they are satisfied or not. In addition, quality affects client satisfaction significantly
and, in some ways, is the most obvious component of what an organisation does. Quality can
therefore contribute to lower costs and greater dependability.
Cost /Dost Down
The less they have to spend on production, the less they can charge their customers. Even
businesses that do not engage in price competition will strive to maintain low prices. Where
expenses are incurred has a significant impact on how much operations management can reduce
costs.
Speed
Speed is the amount of time it takes for customers to order goods or services and receive them.
The main advantage of prompt delivery of goods and services to the operation's (external)
customers is that the sooner they can obtain the good or service, the more likely they are to
purchase it, the higher the price they will pay, or the greater the profit they will make.

Services
Being dependable means delivering on your promises to clients and finishing duties on time,
whether they are urgent or predetermined. Only after the product or service has been delivered
can customers assess the reliability of a business.
Flexibility
Flexibility in delivery: capacity to alter delivery timing and/or production level to create varying
quantities of goods and services throughout time

References
Korsen, E.B.H., Ingvaldsen, J.A.2022 https://smallbusiness.chron.com/relationship-operations-
management-overall-organizational-strategy-25424.html
Yao, J. S., and Chiang, J. 2003. “https://exeedcollege.com/blog/importance-of-operations-management-
in-business organizations/#:~:text=Operations%20management%20is%20important%20in,industry
%20as%20it%20may%20concern.
Ančić I, Šestan A (2015)https://www.sweetprocess.com/operations-management/
Ballini F, Bozzo R (2015).https://books.google.com.my/books?
hl=en&lr=&id=UnaHbbTO6JcC&oi=fnd&pg=PA1&dq=operation+management&ots=DaIGSy6Pds&sig=04Y
rx5moyLQbmwe5128UCe_wo00&redir_esc=y#v=onepage&q=operation%20management&f=false