Operations Management Report

This report is a comprehensive case study of Burberry's operations management. It examines the importance of operations management, analyzes Burberry's operational functions using a process model, and assesses the impact of the tension between cost minimization and quality maximization. The report also evaluates the significance of five performance objectives underpinning operations management: cost, quality, dependability, speed, and flexibility. Furthermore, it explores the contribution of linear programming in production processes, evaluates critical path analysis and network planning, and analyzes the need for operational planning and control. The report concludes by producing a set of clearly defined operational outcomes, a network plan indicating the critical path, and assessing the use of quality management techniques in improving the organization's operations. The report includes illustrations such as an activity table, a critical path diagram, and a network diagram to support its analysis.

Operations management

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
LO1 .................................................................................................................................................3
1.1Importance of operation management....................................................................................3
1.2 Analyzing operation functions of Burberry..........................................................................3
1.3 Evaluating operation management of Burberry using process model...................................4
LO 2.................................................................................................................................................5
2.1 Analyzing the importance of three Es’ for operation management of Burberry...................5
2.2 Assessing the impact of tension between cost minimization and quality maximization.......5
2.3 Evaluating significance of the five performance objectives that underpin operation
management ................................................................................................................................6
LO3 .................................................................................................................................................6
3.1 Assessing contribution of linear programming in production processes...............................6
3.2 Evaluating critical path analysis and network planning........................................................7
3.3 Analyzing the need of operational planning and control ......................................................7
LO 4.................................................................................................................................................8
4.1 Producing set of clearly defined operational outcome...........................................................8
4.2 Producing a network plan indicating critical path ................................................................8
4.3 Assessing use of quality management techniques in improving operation of organization . 8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10
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ILLUSTRATION INDEX
Illustration 1: Activity table...........................................................................................................11
Illustration 2: Critical path ............................................................................................................11
Illustration 3: Network diagram.....................................................................................................12
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INTRODUCTION
Operation management refers to the process of converting inputs into desired output in
accordance with organizational objectives. It assists management to speed up in the flow of
production and create competitive edge of the business. Present report is based on Burberry
which provides number of fashion products to buyers. The organization is situated in UK and
operate with inclusion of effective processes of operation management. Present report lays
emphasis on importance of operation management in companies along with analysis of operation
functions. Furthermore, critical path and network planning are evaluated. In addition to this, role
of quality management techniques has been assessed in improving operation of organization.
LO1
1.1Importance of operation management
Operation management is the imperative aspect of business because it facilitates to
reduce cost of production and manage waste material through which overall profitability can be
enhanced. Similarly, with the help of operation management Burberry can attain its long as well
as short term objectives by meeting expectations of large number of buyers. It enables
management to setting new outlet and expanding business as well as improving effectiveness and
efficiency of business (Allen, Todd and Alting, 2009). It reflects that operation management is
the most effective way to integrate all business activities and create competitive edge of the
business in the marketplace. Furthermore, operation management serves role as strategic
management through which differentiation can be brought in the products and services. Not only
this but operation management facilitates to bring perfection in workforce by the help of
implementation of effective programs like training and development (Anh and Matsui, 2011).
Similarly, organization perform activities of operation management so as to bring improvement
in quality of products and services. It leads to increase number of buyers and create leading
position of the same.
1.2 Analyzing operation functions of Burberry
There are several functions of operation management in Burberry. These are explained as
follows-
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 Production planning and control-Under this operation manager of Burberry plan for
production of fashion products and defines schedule as well as routes of production
activities. However, extra activities are deleted so as to speed up in the flow of
production (Bakliwal, 2011). Quality and cost control- Operation management of Burberry ensure total quality of
products in accordance with set procedures (Craighead and Meredith, 2008). Here, it is
also ensured that finished goods are free from any kind of defects and quality standards
are complied. Inventory management- function of operation management facilitates to manage the
inventory system in an effectual manner (Fitsimmons, 2009). Under this, management
ensures that raw material are provided on right time by considering holding as well as
shortage cost.
 Supply chain management-This is another most important function of operation
management under which operation manager ensures that proper raw material is provided
in production process (Johnston, 2005). Furthermore, factors like arrival of raw material
and delivery of finished goods are considered utmost.
1.3 Evaluating operation management of Burberry using process model
Process model is very important for company as it consists of different steps through
which production activities are determined. In the given case of Burberry “alignment process
model” has been applied so that management can effective handle strategic, tactical and
implementation processes (Kloppenborg, 2011). By using this model corporation can effectively
plan for its expansion. Furthermore, random system analysis, deterministic through and open as
well closed system are also used to evaluate operation management of corporation. Here,
deterministic model is used in Burberry so as to ensure certainty of future business activities.
Owing to this, accounting, model and economic order quantity model is also used. Similarly,
probabilistic model consists of simulation, queuing models (Schneider, 2003). By applying this
models corporation can select the best project in order to ensurer optimum utilization of limited
resources. In the same way open and closes system is also used in operation management
through which inputs are transformed into desired output. All these models ensure proper
interaction of internal environment of Burberry with external one.
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LO 2
2.1 Analyzing the importance of three Es’ for operation management of Burberry
Three E's of operation management consists of economy, efficiency and effectiveness
which are directly associated with growth and prospective of corporation. Here, the first one is
economic element which depicts that products and services can be purchased at lower prices.
However, quality remain at the top even at low price so that customer can get high level of
satisfaction (Slack, Chambers and Johnston, 2007). The second element is efficiency which
reflects that how effectively company is operating. For example, whether Burberry provides
unique product and services to end users or not. Similarly, quality of workforce is also improved
with the help of training and development programs. It proves to be effective in delivering good
quality of after sale services so as to create competitive edge of the firm in the marketplace.
Third E is effectiveness that shows that Burberry meet expectations of customers. Furthermore,
corporation has wide range of products and services which in turn need of all kind of buyers can
be satisfied in an effectual manner. Therefore, all three E's play vital role in operation of
Burberry (The 4 E's of Excellence, 2015).
2.2 Assessing the impact of tension between cost minimization and quality maximization
The concept of cost minimization and quality maximization create tension in the
organization. In order to enhance quality of product and services, it is very important for
corporation to increase cost. For examine if Burberry want to reduce cost of production then
management will likely to focus on compromise with quality. It is done through reducing some
of production activities in order to save time as well as cost taken during production process
(Young, 2009). It is showing that for decreasing cost, quality will also be hampered. However,
quality maintenance require high cost due to technological upgrdation. This aspect is providing
evidence that low cost strategy is not suitable for quality maximization. For improving quality,
bringing innovation and creativity organization also incur cost. At this juncture, costly sources of
finance might be accessed that tend to increase overall cost. On the other hand, organization like
Burberry has to maintain its quality as it deals in fashion segment. However, it should focus upon
cost reduction also so as to increase overall rate of return.
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2.3 Evaluating significance of the five performance objectives that underpin operation
management
The five performance objectives that underpin operation management of Burberry are
explained as follows- Cost-It is the first and foremost objectives wherein management try to reduce the cost of
production so as to increase profitability. This performance objectives indicate that how
organization is performing in the marketplace and how it is putting efforts to increase
customer base (Anh, and Matsui, 2011). Quality-Quality is another imperative aspect associated with operation management.
Under this Burberry ensure that it maintain quality of products and services to as to retain
buyers for longer time span (Fitsimmons, 2009). Dependability-The production activities of corporation are interlinked to each other.
Owing to this, operation management of company seek proper alignment of
organizational goals with each department. It aids to operate business in smooth way. Speed-Operation management has the main objectives of speed and for the same efforts
are put reduce additional production activities. Furthermore, management seek balance
between demand and supply of fashion products (Massis, 2010).
 Flexibility-This objective of operation management shows that flexibility need to be
maintained so as to bring change in current working condition. It facilitates to determine
long run growth and success of Burberry.
LO3
3.1 Assessing contribution of linear programming in production processes
Linear programming is the technique used by organization to reduce cost of production
and enhance profitability. It is the mathematical model that determines linear relationship
between different variables. By using this technique resources are allocated among different
operational activities. Here, management ensures that less resources are used in order to derive
maximum profitability (Theoharakis and et.al., 2007). It enables management to carry out all
business activities effectively and reach the end objectives of the same in an effectual manner.
For example, Burberry wants to open its new outlet in grooming/beauty segment in order to
increase competition in that particular industry (Linear Programming: Introduction, 2012).
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However, efforts are put to bring innovation in creation in current work environment. Owing to
this, linear programming has been used so that management of Burberry can easily establish its
business with greater profitability. It serves as the optimization technique which leads to increase
overall rate of return of corporation (Vaidya and et.al., 2013). The concept of linear
programming helps in determining growth potential of Burberry so as to create its competitive
edge int eh marketplace.
3.2 Evaluating critical path analysis and network planning
Critical path analysis is techniques used to manage project in less time in an effectual
manner. According to the given case scenario Burberry seeks to open its new outlet in beauty
segment. It is the step taken to diversify the overall risk so that corporation can ensure its long
run survival in the marketplace (Allen, Todd and Alting, 2009). By using critical path analysis
organization complete the project in minimum time with use of longest path. The main purpose
behind longest path is to cover all important project activities for saving overall time. On the
other hand, network planning is the initial process which consists of list of activities to be
covered into project. It consists of detail related to time and cost taken for each activity along
preceding relationship. Network plan is shown with the help of table and diagram which
provides deep understanding related to working of expansion project. Network diagram supports
project manager to allocate task and resources among team members (Anh and Matsui, 2011).
This aspect of completing project aid team members so as to finish all project activities in given
time span.
3.3 Analyzing the need of operational planning and control
Operational planning and control is very important in an organization as it helps to
manage business activities and integrate them so as to achieve desired objectives. The process of
operational planning for Burberry consists of input, production system and finished good in the
from of services. Similarly, operation control is used to evaluate the performance of project in
given time span so as to carry out all business activities effectively (Bakliwal, 2011).
Furthermore, operation planning facilitates to assess demand of grooming services in the
marketplace and expectations of buyers for the same. On the other hand, it is the only operation
management through which organization can volume of sales is estimated along with total
inventory. In the same way planning is the done for allocating resources so as to conduct all
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project activities in right manner. Apart from this, operational control is used for the purpose of
maintaining good quality and speed up in the flow of production. Therefore, operational planning
and control is imperative in organization (Craighead and Meredith, 2008).
LO 4
4.1 Producing set of clearly defined operational outcome
The operational outcome from current diversified expansion project of Burberry tend to
focus on high quality of product and services. As the organization already deals in premium
segment and it has unique positioning in the marketplace. Owing to this, standard of services will
be kept high. This aid to generate positive attitude among buyers and enables them to access
services provided by new outlet of corporation (Fitsimmons, 2009). Furthermore, establishment
of new outlet in proves to be effective in creating competition for beauty industry of UK. This
aspect will increase profitability as well as sales turnover so as to ensure continuous growth of
company in the marketplace. In addition to this, market share of organization will be increased
due to high quality of services. Also, use of different techniques like six sigma, process layout
and critical path make it possible to maximize profitability with compromising with quality of
services. It provides to be effective in reducing time taken for executing the new project and
starting operation of the same (Johnston, 2005).
4.2 Producing a network plan indicating critical path
For the current diversified expansion project of Burberry, critical path method has been
used so that project can be completed on right time. The following table is indicating activity
table consisting list of activities to be covered in a project. It assists corporation to carry out all
its project task accordingly. It shows that management or project manager start project with
analysis of current trend in beauty segment or industry of UK. It has been estimated that it will
take 5 days and accordingly time of each activities has been specified. However, activity table
has been shown through network diagram also which depicts connectivity in each activity. Also,
network diagram or Gantt chart is showing sequence of all activities.
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10
Task Task Name Start Finish Predecessors
1 5 days
2 Assessing need of buyers 15 days 1
3 Process design 15 days 1
4 Inventory management 10 days 3
5 Designing process 10 days 2
6 Allocating resources 10 days Fri 4/1/16 4,5
7 Supply chain management 12 days Fri 4/1/16 4
8 Monitoring and control 15 days Mon 5/9/16 6,7
9 Evaluating production process 16 days 8
10 Execution 5 days Tue 6/7/16 3,9
Duratio
n
Analysing current trends in beauty
segment
Fri
2/19/16
Thu
2/25/16
Fri
2/26/16
Thu
3/17/16
Fri
2/26/16
Thu
3/17/16
Fri
3/18/16
Thu
3/31/16
Fri
3/18/16
Thu
3/31/16
Thu
4/14/16
Mon
4/18/16
Tue
4/19/16
Tue
5/10/16
Tue
5/31/16
Wed
6/1/16
Illustration 1: Activity table

The network diagram of project has been specified as follows. It depicts that critical path
covers 1+3+4+7+8+9+10=78. The total project takes time length of 113 days but after
application of critical path method time has been reduced to 78 days.
The above diagram is showing network diagram wherein all project activities are shown
along with time. It assists project manager to complete all project activities on right time. Hence,
78 days will be taken to implement new diversified expansion project of Burberry.
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Illustration 2: Critical path
Illustration 3: Network diagram

4.3 Assessing use of quality management techniques in improving operation of organization
Quality management techniques plays vital role in bringing improvement in operation of
organization. This is because it is applied on products and services to be rendered to end users.
The current scenario reflects that Burberry's expansion project is to set new outlet in beauty
segment. At this juncture, total quality management will be used which leads to increase
customers' satisfaction level. Management of corporation will set standard process at the end so
that rendered services can be checked against the same (Kloppenborg, 2011). Similarly, six
sigma can be used for quality control where management set margin for expected number of
defects. After applying the technique on actual production cycle company can check quality of
services. This is because findings of six sigma depicts that where company can improve. Apart
from this, accordingly management can provide training to its workforce by implementing new
techniques at workplace. This leads to create competitive edge of corporation in the marketplace
and the same will increase competition of beauty segment of country (Slack, Chambers and
Johnston, 2007).
CONCLUSION
The aforementioned report depicts that operation management is the crucial aspect which
aid to give upward direction to business. It assists management to reduce cost of production and
create competitive edge of the business. It can also be said that, network diagram and critical
path are two imperative techniques through which project can be completed in less time span.
However, it may incur cost at initial stage but determine long term growth of corporation.
Moreover, six sigma and total quality management are effective tools to control the quality of
product and services so as to retain buyers for longer time span.
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REFERENCES
Journals and books
Allen, K. D., Todd, H. R. and Alting, L., 2009. Fundamental Principles of Manufacturing
Processes. Industrial Press Inc.
Anh, C. P. and Matsui, Y., 2011. Relationship between quality management information and
operational performance: International perspective. Management Research Review.
34(5). pp.519 – 540.
Bakliwal, L.V., 2011. Production and Operation Management. Pinnacle Technology.
Craighead, W. C. and Meredith, J., 2008. Operations management research: evolution and
alternative future paths. International Journal of Operations & Production Management.
28(8). pp.710-726.
Fitsimmons, G., 2009. Resource management: materials, equipment, facilities. Bottom Line:
Managing Library Finances. 22(3). pp.86 -88.
Johnston, R., 2005. Service operations management: return to roots. International Journal of
Operations & Production Management. 25(12). pp.1278 – 1297.
Kloppenborg, T., 2011. Contemporary Project Management. Cengage Learning.
Massis, E. B., 2010. Project management in the library. New Library World. 111(11/12). pp.526
– 529.
Schneider, M., 2003. Operations Management. Cengage Learning.
Slack, N., Chambers, S. and Johnston, R., 2007. Operations management. Prentice
Hall/Financial Times. Lowson, H. R., 2004. Strategic Operations Management: The New
Competitive Advantage. Routledge
Theoharakis and et.al., 2007. Insights into factors affecting production and operations
management (POM) journal evaluation. Journal of operations management. 25(4).
pp.932-955.
Vaidya, D. R. and et.al., 2013. Analysis Plant Layout for Effective Production. International
Journal of Engineering and Advanced Technology (IJEAT). 2(3). pp. 500-504.
Young, T. S., 2009. Essentials of Operations Management. SAGE Publications Inc.
Online
Linear Programming: Introduction. 2012. [Online]. Available through:
<http://www.purplemath.com/modules/linprog.htm>. [Accessed on 19th February 2016].
The 4 E's of Excellence. 2015. [Online]. Available through:
<https://www.sunzu.com/articles/the-4-e-s-of-excellence-183480/>. [Accessed on 19th
February 2016].
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