Operations Management Report

This assignment involves a research report analyzing how a specific operation (HPC Compressed Air Systems) competes in its market. The student is tasked with identifying the company's performance objectives (speed, quality, flexibility, dependability, price) through primary data collection (an interview with a regional sales manager). The report then explores how the operation maintains its desired performance level, examining successful and less successful process control methods. The student must reference relevant academic material from the module to support their analysis and propose improvements to the operation's control mechanisms to prevent performance slippage. The interview transcript provided offers insights into HPC's approach to quality management, dependability, capacity planning, demand forecasting, and operational layout, illustrating the practical application of operational management theories.

Assignment brief December 2016
You are required to research, via primary data collection, an operation to identify how it
competes in its market, specifically what are the performance objectives that they
pursue? This must be presented with reference to academic material, fully referenced,
from the module.
Once the performance objectives have been identified, from your primary research
information, how does the operation maintain the desired level of performance? Provide
substantial evidence identifying process control methods that are successful and less
successfully employed. This will be an exploration of academic theory in practice and
you must reference the theories being explored; that is, those being used to aid your
understanding.
Could control be improved? If so how? This element requires you to consider key
topic/s from the module to explain where and how the operation could prevent
performance slippage.
EXAMPLE OF INTERVIEW QUESTION AND ANSWERS (PART B)
Interview with Martin Taylor, Regional Sales Manager at HPC Compressed Air Systems.
• Interviewer: Focusing upon performance objectives of Speed, Quality, Flexibility,
Dependability and Price, what does HPC perform on in their operations?
Interviewee: HPC products have a high capital investment and so HPC focus on quality in their
operations. We adopt a Quality Management Systems so we align our products to customer and
regulatory requirements. The system increases customer satisfaction through the high focus upon
quality within operations. It is important for HPC to provide a product that is free of errors and
conforms to standards set. We also maintain quality standards through focusing on customer
needs through holding regular meetings and product reviews to provide air compressor units
which are able to meet a set specification. We also provide quality through after sales service
with strategies such as; the installation process, total care servicing and end of life replacement
• Interviewer: What is your other performance objective?
Interviewee: Dependability and completing installation on time is one of the objectives we
compete on at HPC. It is fundamental to ensure the installation of units is on time, along with
maintenance checks. We have Ethernet connections set up within machines which sends warning
signals to Head Office and the customer if the machine requires maintenance. Two engineers are
emploted who oversee the delivery of air compressed units and manufacturing process. It is
important for us to have a strong relationship with suppliers to achieve dependability and ensure
production and maintenance checks are completed. We carry out annual checks of our suppliers
as it is important for our suppliers to be dependable, as we guarantee to customers that the

installation and maintenance process will be carried out efficiently.
• Interviewer: Why do you not compete on the other performance objectives?
Interviewee: We focus upon flexibility and quality as this is what we compete on in the industry.
Cost is not prioritised due to the high capital investment of machinery, employees and
equipment. We can’t compete on speed as the manufacturing process is complex and each
operation is specific to a customer which slows down the process.
• Interviewer: What capacity plan do you use in HPC’s operations?
Interviewee: At HPC we absorb demand and we let customers know of any delays in operations.
We use gantt charts to manage projects, service administrations organise activities. Installation is
booked in an online system at HPC so we can allocate tasks and not double book.
• Interviewer: How do you forecast demand for HPC?
Interviewee: We use a range of techniques such as previously yearly sales figues and monthly
reports to predict current and future sales periods. Using quantitative data to predict demand is
beneficial as HPC is able to allocate resources to busy periods.
• Interviewer: Within the Four V’s, is each V high or low? – Volume, Variety,
Visibility, Variation.
Interviewee: HPC has a low volume of demand as each air compressor unit is associated with a
large amount of manpower and equipment. Each engineer as a role within the process so there is
a high variety of tasks. Demand for air compressor units fluctuate throughout the year so there is
a differing level of demand. There is high visibility with customers and they are able to organise
meetings and site visits.
• Interviewer: What kind of service do you offer to your customers?
Interviewee: HPC offer a professional service. We have a personal relationship with customers
and air compressor units are highly customised to customers needs. We adopt a jobbing process
in operations as each unit can be specialised. Engineers are trained within HPC through training
days and work shops to gain more knowledge and ensure they are good.
• Interviewer: What kind of layout do you adopt from a fixed position layout, a
process layout, a cell layout and a product layout?
Interviewee: We adopt a fixed position layout, engineers can go round the air compressor unit
and conduct their tasks. A fixed position layout is good as scheduling ensures tasks are
undertaken at a specific time to maintain dependability.