Operations Management Report: Key Approaches and Influencing Factors

This report provides a comprehensive analysis of operations management, focusing on key approaches and their practical applications within a business context. It begins with an introduction to operations management, highlighting its role in enhancing efficiency and profitability. The report then delves into essential operational approaches such as Total Quality Management (TQM), Just-in-Time (JIT) inventory management, and the Kaizen approach, illustrating how these strategies can be implemented to improve processes and reduce waste. Furthermore, the report examines the significance of operations management in reducing resource wastage, lowering storage costs, retaining customers, and increasing profitability. It also explores the external factors, including business environment, corporate social responsibility (CSR), culture, ethics, stakeholder expectations, and customer preferences, that influence operational decisions. The report uses Marks & Spencer (M&S) as a case study, providing real-world examples of how these concepts are applied in a global business setting, and concludes by emphasizing the critical role of operations management in achieving organizational goals. The references include various sources related to operations management, supply chain, and systematic literature review.

MANAGEMENT AND
OPERATIONS

• Introduction
• Key approaches of operations management
• Importance of operations management
• Factors affecting operations management and decisions
• Conclusion
• References
Table of content

Introduction
Management and operations are refers to numerous
tasks or practices which help in eliminating the
unnecessary course of actions which reduce the
wastage of organizational resources and time. It
contains various approaches which increases the
efficiency and profitability level of business.

Operation Management refers to the area of planning and controlling the production
process of converting the raw material and information into finished g products and
services. It mainly focus on increasing the level of efficiency for maximization of profits
and balancing production costs with minimum wastage of resources.
Major key Operations of M&S
Production: M&S known for its high quality and innovative products and deals in
diversified product lines to satisfy the versatile demands of consumers.
Key approaches of operations management

 Supply chain network: For smooth availability of products and services in market, organizations needs
effective network of suppliers who act as a bridge between producer and customer. M&S is a large global
enterprise which serves stylish clothing and other items with help of over 2000 suppliers internationally and
approx 600 stores located in UK which enables them to provide fresh and trendy products on perfect time.
 Inventory Management: Inventory play an essential role in operations as customers come up with certain
demands of particular products at a peculiar time for that every organization has to maintain required stock..
M&S always preserve some stock in order to supply or deliver the quantity when demand arises.
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Different Approaches of Operation Management
 TOTAL QUALITY MANAGEMENT(TQM): It refers to the process of continuous improvement in quality by
addressing and reducing any lapse or flaw in production and try to enhance the customer experience which is an ultimate
goal for any organization. In easy terms TQM stands for Customer focus, Regular Enhancements and Total Involvement
of Employees. For sustain the quality level, M&S leader will play a role of motivator to inspire its members to take
initiative for drawing customer attention and treat them with respect and honour. While manger will evaluate the product
quality at various dimension like performance, durability, response, serviceability to provide certain actions and measure
in improving performance.
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 JUST IN TIME: This approach explains how to manage the
inventory to avoid the problem of excess and shortage of material or
stock. It is a method used when goods are ordered and received
depends on need arises in production process. In case of M&S, leader
will consider the implementation process perform by fellow members
to maintain the efficiency level of inventory. Whereas, manager will
formulate the plan and make use of tools or methods (FIFO,LIFO)
and ensure the reduction in cost of storage.

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KAIZEN Approach: It is an Japanese term which explains the management philosophy focus
on the need of continuous improvement and process of re engineering (rethinking and
redesigning of business process model) in consideration of whole change. M&S leader will help
the group in identifying the waste and focus on eliminating the same from the workplace also
lead them towards experience working in lean environment. While manger constantly maintain
the purpose regarding improvement of production with the motive of reaching the edge of
competitiveness.

Importance of operations management
• Operations Management concerned with the management practices which are
implemented for the achievement of highest efficiency and effectiveness possible in
working of organisation which result in higher profit margin. It is a branch of
management which focus on how to earn maximum revenue with least possible cost. It
also take into account that waste should be minimum and raw material must be utilised
efficiently so that there would be less wastage of raw material.

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Reducing wastage of resources: Just in time assure smooth supply chain management.
Raw material should be ordered before the conversion of current raw material into final
goods. This approach would also aid in reducing wastage of resources. Company have to
formulate proper inventory management strategy so that there would be no wastage of
resources. Inventory management should be performed in such a manner that there
would be neither excess of inventory that consume storage and leads to wastage nor
scarcity of raw material during production process.
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Reducing cost of storage: Implementation of Just in Time management approach would help
company in efficient and effective management of stock. Just in Time approach focus on
efficient management of inventory (Matthias and et. al., 2017). There should be optimum
utilisation of raw material. Just in Time approach ensure that there should be proper inventory
management in an organisation. Just in time would reduce the burden of storing excess stock
there cost of storage get decreased.

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• Retaining customers: TQM would aid in differentiating firm's products from rival
products that would create an edge over the competition. Distinguished products would
assist company in achieving brand loyal customer which would reduce consumer switch
over cost. It accelerate the growth of firm and bring loyal customers who assist companies
in achieving the position of market leader.