Operations Management Strategies at Concept Design Services UK

This report provides a comprehensive analysis of operations management within Concept Design Services UK Ltd., a company specializing in the design and manufacture of home appliances. It delves into the roles and contributions of various departments, including operations, finance, marketing, manufacturing, distribution, planning, and design, highlighting their impact on product quality and overall organizational performance. The report examines both internal and external customer expectations, outlining the company's operational objectives related to quality, speed, dependability, flexibility, and cost. It further explores the application of Hill's Framework in aligning operations strategy with corporate decisions, detailing the transformational process and strategic approaches adopted by CDS, such as project processes, jobbing processes, batch production, mass production, and continuous production. The report concludes with recommendations aimed at enhancing operational efficiency, reducing costs, and improving productivity, providing valuable insights for the company's management team. Desklib provides a platform for students to access similar solved assignments and past papers.

Operations Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
a) Concept Design Services UK Ltd............................................................................................3
b) Operational Objectives............................................................................................................5
c) Operational processes..............................................................................................................9
d) Recommendations for improving operational processes.......................................................12
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Operation management is responsible for managing activities which are part of the
production. The focus of operation management is to design, planning, control, and improve
performance of organization (Bahmani-Firouzi and Azizipanah-Abarghooee, 2014). This report
will analyse role of operation management in Concepts design service which design and
manufacture different types of home appliances and distribute the worldwide. This report also
analyse the contribution of operation departments in organization and discuss on different types
of customers as well as their exceptions from company's output.
Furthermore, this report also describe operational module which used by company and
their objectives which help to understand the ability of operation management in the organization
(Wen, Tsai, and Chang, 2014). At last this report gives recommendation and suggestion to
improve operational efficiency within organization which help to administration for making their
products more cost effective and enhance their productivity.
a) Concept Design Services UK Ltd.
Concepts design services is company which make different types of home appliances
products. It focuses on designing different types of home appliances with high quality. From the
last few years, company is manufacturing and distributing products other design houses. Firm
has its own staff for designing its products (Kuzlu, 2015). Company's main objective is
manufacturing and designing home care products and offer a large range of products. Company
has different departments and their contribution helps the organization for maintaining high
quality products.
Operations management: Main aim of operation management is to add value to its
products. The area on operation management is includes designing, planning and of
organization's products and their services (Raza and Hanif, 2013). Another aspect of operation
department is to help company in developing their strategy according to the present market
trends (Lee, 2013). With the help of operation management, CDS tries to resolve their issues that
occur in between manufacturing and production process (Grace and Lo Iacono, 2015). Better
utilization of resources, adding value in customer services and reducing the cost of production
help organization in managing their supply chain management.
Finance department: Main aim of this department is to manage company's cash flows
and ensuring that there is availability of enough funds to meet all business transactions This

department also make credit polices for their suppliers (Johnston, and Marshall, 2016). The
contribution of finance department in CDS that is to help in managing their different activities.
Marketing department: Activities which are included in marketing department are
making strategy, conducting market research and development of product along with enhancing
the sales of company (Bahmani-Firouzi and Azizipanah-Abarghooee, 2014). By conducting the
market research, company tries to identify different types of market opportunities that help in
understanding the customer's need.
Manufacturing department:For manufacturing departments company use advance
technology such as robotic machines which make create quality in their products. In this
department all products are passes thorough similar process (Kuzlu, 2015). The main focuses of
manufacturing department is to increasing volume and reduce cost (Costa, Keane and Corry,
2013). This method helps to increase productivity within organization.
Distribution department: Main aim of distribution operations is to integrate the efforts of
all departments to distribution centre (Raza and Hanif, 2013). This department helps organization
to do planning of their distribution level. For their distribution level, company uses standard time
delivery concept in which they set specific duration for making deliveries. This concept helps
organization for making their customers more satisfied by their services and with the help of this,
they can attract more customers.
Planning department: This also helps the organization for better forecasting (Lee, 2013).
Planning departments are integrated with distribution so they deliver their products to their
customers on time. It assists the distribution department for setting their time to deliver products
to customers.
Design department: To maintain customer’s expectations, they always bring more
innovation in their products (Van Dooren, Bouckaert and Halligan, 2015). This department
focus on delivering high quality products. CDS also focuses on developing their products with
higher margin and also contain large range of products which describe their innovation in
products.
b) Operational Objectives
For a business firm customers also include that persons who work for company and help
to organization in their operations (Johnston and Marshall, 2016). The role of internal and
external customers is different and their expectation are as well.

Internal customers: Internal customers of CDS includes their employees, shareholder,
and also creditors of company Which help to organization for delivering quality in service for
their products.
External customers: With help of that revenue organization survive in the market
(Johnston and Marshall, 2016). The external customers play key role in success of every
organization. External customers are not directly liked to organization but their preferences and
expectation can influences performances of business.
Expectations of customers: The expectations of internal customers from CDS's output is
that company share their revenue of successful projects. The internal customers want to deliver
more quality in products so company can make more money from their business operations.
Shareholder of company want to earn profit and employees of organization want good pay and
perks (Johnston, and Marshall, 2016). Expectations of external customers is quality and
reasonable price. CDS always try to full fill demand of their customers so they make better
products and maintain long term growth in market.
Objectives of operations
Operation management is very essential part of CDS. The main aim of the operation
management is to add value in end product (Costa, Keane and Corry, 2013.). It also helps to
organization for attracting more customers by using different types of distribution techniques and
assist to organization for maintain their time.
Performance objectives
The performance objectives of the operation's management in Concepts design services are as
follows. Quality: The focus of operation management is to add quality in their services or
products (Van Dooren, Bouckaert and Halligan, 2015). The operation management help
to organization for maintaining quality in their products by offering different types of
techniques such double check of every products. This techniques help to organization for
making their products for defect free. Speed: The speed can also refer time taken by company in delivery of their products.
CDS always maintain speed in their productions and distribution (Johnston and Marshall,
2016). The company has effective techniques to maintain their speed. This helps to
company to manufacture more products to their customers within time.

 Dependability : Dependability means being on time. It defines company's operations are
conduct on time. If dependability of organization is according to the time and their
agreed costs. In CDS operation management help to organization for delivering their
products on time and maintain dependability (Raza and Hanif, 2013). Company also give
preferences to time and perform their functions as according to time which help to create
customers loyalty. Flexibility : It refers how fast company adopt the changes and make use in their
productions so they can achieve their targets (Van Dooren, Bouckaert and Halligan,
2015). This help to company to adopt the market trend so the organization produces
different types of products for their customers. The operation management of the
company help to achieve flexibility by making specific schedules for delivery and their
production department. Costs :The aim of operation management is delivery number of products at low price
(Lee, 2013.). The operation management of company try to balance their price and their
production. For a success business it is necessary to maintain their products more
reasonable so they make more customers. Operation management ensures that higher
products are produce with lower price.
Hill’s Framework
Hill’s framework reflects the operations strategy in the corporate decisions. According to this
framework, it is important for the operations executives to act in a strategic manner. The Hill’s
framework comprises of 5 steps.
Step 1: Corporate objectives
CDS has to develop certain corporate objectives which are based on growth, profits,
investments and their returns, social welfare and financial benefits of the company. These are set
for ensuring sustainability and survival in competitive markets.
Step 2- Marketing strategy
Marketing is an important operation when considering any industry. It helps in
communicating products and services efficiently. The marketing strategy is based on the type of
goods and services CDS is going to offer. Moreover, it helps in segmenting, targeting and
positioning customers according to their specific requirements. Innovation is the key element
required when devising market strategies.

Step 3- How do products win orders in the market?
There are two aspects that is qualifiers and winners which help in separating different
types of orders.
Qualifiers: The orders or products and services that are considerable from point of view of a
customer are considered as a qualifier. It basically means that those commodities that have
survived market competition and are present on the short lists.
Winners: Those orders of products and services which despite of facing superior competition
have survived and are facing huge demands are called as winners. They are categorised amongst
successful products and services. These also become a great source of profits in highly
competitive markets.
Step 4- Structural choice
Operations management is completely depended on the choices and options that
companies take into consideration. The design of structure must be efficient enough to manage
and handle complete business processes. From inventory to supply chain, CDS has to evaluate
alternative designs which can be implemented in its structure.
Step 5- Infrastructure
Work-force is the only thing that is going to perform the operations that are defined in
organisational structure of CDS. If productive and profitable employees are selected and trained
by the company then, efficiency levels will increase. Support services and training and
development activities can help in controlling quality of the workforce which automatically
results in managed operations.
Inputs are raw materials and supplies which are transformed by value addition process.
CDS generally produces home-wares which are segregated according to the desired quality.
Concept design helped CDS acquire audiences in remote areas where awareness for latest
fashionable trends and designs was minimum. The picture below describes general
transformational process which is designed according to the operational objectives (Operations
process model, 2017).

A directional flow will be achieved when objectives or targets are defined. It not only
helps in making effective strategies but also supports proper distribution of responsibilities and
duties to specific departments. Planning and organising of different processes are based on these
objectives (Wang, Lai and Shi, 2011). For strategic establishment of operational objectives,
process strategy approach is adopted by CDS which includes the following processes:
1. Project Processes
2. Jobbing Processes
3. Batch Production
4. Mass (Line) Production
5. Continuous Production
c) Operational processes
Operational processes that are categorised under operations management are mentioned
below. These include particular details and validation facts which help in concluding their
relevance to operational objectives.

Project processes
Being the foundational process in operations management, project process represents
specific needs of customers. CDS functions with its unique quality products. At times clients
demand specific product which has to be manufactured separately. These kind of projects are
processed in this part of operations. Despite of large capital investments, high production costs
and immense intervention from side of customers, projects processes are carried out on a large
scale (Larson and Gray, 2011). Employees with innovative and divergent skills are required for
successful implementation of project strategies.
CDS has to plan out its resources with special preferences given to this part of operations
management. Clients with specific needs and aspirations cannot be ignored because they incur
huge profits. The project process for every customer differs according to their demands. Since,
new products are manufactured every time a client orders, complete set of resources gets
changed. This makes the project process bit complex and expensive (Subramanian and
Ramanathan, 2012).
Jobbing Processes
CDS is a service oriented company which inhibits manufacturing units that are handled
by skilful and quality oriented human resource. This feature can only be accessed when jobbing
processes are clearly defined. Manufacturing is paralysed when jobbing process is neglected.
Lower volumes of variable products are processed in this section (Becker, Kugeler and
Rosemann, 2013). It doesn't require utilisation of all available resources in one project. The
organisation can easily complete production of different products within stipulated time but in
less quantity. For instance, CDS is required to manufacture plastic buckets for a customer. 100
buckets have to be manufactured in one day. The company will apply jobbing process because
they are capable of performing limited quantity tasks without making any delay. This section of
operations is just not confined to a particular type of product. After accomplishment of this
project it will automatically produce another set according to customer demands (Porter, 2011).
Flexibility relies with CDS when its business orientation is based on jobbing process.
This helps in achieving organisational objectives without much customer intervention.
Operational objectives are completely aligned with working methods of this process. Speed,
costs and flexibility are not compromised (Zuki and Mohamed, 2012). But only disadvantage

that CDS will suffer is quantity and profits. These are comparatively low, which indicates more
client acquisition for the organisation.
Batch Production
In order to avoid chaos and excessive costs, the clubbing process is carried out in CDS.
These categorised sets of products are called batches. Batch production is essential in cases of
heavy or bulk production. Small groups according to different features are made in batches
(Wang and et. al., 2012). It is not necessary that same home ware will be acceptable twice within
a year. Hence, batch production concept came into existence.
Short demands, fluctuating clients, diverse products and changing economic policies do
not effect company's economic structure when batch production is established. Resource
investment in this operation is minimum (Koren, 2010). Although installation of high costs
machinery and automated systems is required but it gives a good return for a very long time.
Hence, batch production is feasible and easily monitored within CDS operating systems. Home-
ware demands are largely dependent on fashion trends of customers. Batch production process
helps in achieving operational objective of high speed production with great flexibility for
fluctuating markets. This means that batch production is intermittent, but helpful in contributing
to operational objectives.
Mass (Line) Production
Voluminous quantities of commodities are managed in mass production. CDS acquires
economic stability when mass production is initialised. Huge markets are targeted with mass
production as it doesn't get affected by fluctuations in demands and expectations of customers.
Unlike batch productions where small quantities of product are manufactured, mass production
can be used at national and international level markets (Jahangirian and et. al., 2010). Repetitive
production creates a monotonous and mundane working environment for employees. But major
tasks are managed using heavy machineries that are self automated and require less human
intervention.
Mass productions are helpful in meeting these operational objectives only when huge
volumes of commodity is to be manufactured in same fashion (Wang and et. al., 2010). CDS's
conceptual product design could not be compromised for meeting bulk requirements. Hence, the
company adopted line production strategy for creating its complex design home-wares with great

efficiency and desired design outputs. When quality and quantity are accommodated without
conceiting organisational profits then, operational objectives are completely satisfied.
Continuous Production
Completely automated systems are installed in some factories in order to cope with
excessive supply of products (Brown, Bessant and Lamming, 2013). The processes that are
designed for this purpose are categorised under continuous production. Operations are carried
out for transforming raw materials. Very high volumes of products are manufactured using
continuous production because these bulk items cannot be mistaken (Martinez and et. al., 2010).
Employees are appointed in this production process but only for monitoring and maintenance
functions. Machineries are something that can become dysfunctional due to any technical reason.
For reporting such losses and maintenance problems, particular supervising staff is recruited.
Generally products like steel, paper, paints, plastics, etc. are produced in continuous
productions. CDS manufactures conceptually designed home-ware products with help of robotic
machinery. These help in attaining accurate and precise design along with appropriate quality
and quantity. CDS's bulk production is successful with help of continuous production. It gives
efficiency and quality control for product.
Although capacity of production that is offered in this process is great but heavy
investment for set up of plant, machinery and transportation is required. Another major drawback
which makes this process inefficient in fulfilling operational objectives is lack of error correction
capability (Wang, Lai and Shi, 2011). Often lack of monitoring results in large productions of
irrelevant products. This brings in huge loss which cannot be recovered easily. Hence, CDS has
to devise proper strategy before implementing continuous production process in its operational
plan.
d) Recommendations for improving operational processes
Concept Design Service (UK) Ltd. Has been working for providing customers unique
products that attribute good quality. Home-ware is something that every consumer requires for
performing their daily tasks. There are certain areas which need to be improvised for getting best
in class customer response. These are given below:
Development of Quality gateways: Quality gateway is one such step through which
quality of product can be controlled effectively. This includes recruiting specialised staff that
inhibits analytical qualities for performing a quality check. There are chances where certain

mechanical errors may ruin the whole batch (Zarei, Merati and Ghapanchi, 2010). CDS cannot
afford such losses. Hence, quality gateways are set up for transforming inputs without any errors.
At every stage of manufacturing, certain monitoring staff must be appointed so that error
production can be stopped eventually without incurring huge losses.
Correct choice of production process: CDS has to take correct decisions regarding
choices of manufacturing processes. Although this choice totally depends on type of customers
that are connected with the organisation. This makes CDS a business to business company.
Quantity of production relies on demands of other business. Indirect dealing with customers
brings less fluctuation. So, CDS can opt for assemble line production or jobbing processes for
efficient functioning.
Processing discipline and data measuring systems: Managerial decisions are totally
dependent on data records of complete processing system. When disciplinary processes are
initiated within operations management, then probability of loss of data decreases. Coordination
between different functions of operations is important (Subramanian and Ramanathan, 2012).
This cannot happen without disciplinary actions and data recording. Changes can be effectively
driven when processing of products is strictly monitored and recorded for future references.
Use of upgraded technology: If CDS uses upgraded techniques for producing its home-
ware commodities then, more number of customers will be attracted to work with the
organisation. Hence, CDS can improve its operational processes without investing huge capitals
by applying upgraded technology.
Obtaining timely feedbacks from stakeholders: No product can be rated successful
unless positive feedbacks and comments are not received. Timely analysis of value chain by
acquiring opinions from stakeholders is necessary. CDS has to perform this action because its a
business to business enterprise. Competition in this sector is increasing. In order to secure its
place, its is necessary to take a survey of current product conditions and market status of
company (Larson and Gray, 2011). It will help in imbibing effective changes.
CONCLUSION
Concept Design Services is one such British organisation which has been producing
exemplary products that are based on conceptual design. This report includes the basics of
operations management and its relation with other organisational departments. Without
objectives and targets, functioning of a business is not possible. Similarly, operational objectives