Operations Management Report: Next Plc, Approaches, and Factors

This report provides a comprehensive analysis of operations management within the context of Next Plc. It delves into various approaches such as Just in Time, Total Quality Management (TQM), Lean Management, and Six Sigma, illustrating their impact on the company's performance. The report then explores the role of a store manager as a classic example of an operations manager, outlining key responsibilities including finance, operations, strategy, and forecasting. Furthermore, it emphasizes the importance of operations management in the store, highlighting how it enhances productivity, efficiency, and customer satisfaction. The report also examines external factors influencing operations management, such as political, economic, sociological, and technological factors, and their effect on decision-making. Finally, the report discusses factors impacting decision-making as a store manager including new entrants, substitutes, customers, suppliers, and competitive rivalry, providing a holistic view of the challenges and opportunities in the field.

OPERATIONS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
1 Approaches of the operations management.............................................................................1
2 Store manager's role as classic example of an operations manager........................................1
3 Importance of operations management in your store...............................................................2
4 Key outside factors effecting operations management............................................................3
There are various outside factors that can have effect on the operations management of
Marks and Spence which is described below:.............................................................................3
5 Factors impact on decision making as a store manager...........................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Operations managements is that area of management that deals in designing and
controlling the process of productions and also redesigning the business operations like in the
production of goods or services. Report will include Next Plc as organisation, it is a British
multinational retailer specialises in selling clothes, footwear, home products and luxury food
products. This report highlights the various fields in operations management that includes
different approaches of operations management, roles as a store manager and also the importance
of Operations Management.
TASK 2
1 Approaches of the operations management
Different approaches of the operations' management used by the Next Plcin its stores
includes Just in Time, Total Quality Management, Lean Management and Six Sigma. All of
these approaches have improved the performance and the growth of the company in its stores by
their proper application (Harvey, Heineke and Lewis, 2016). Next Plc have strengthened their
relations with the suppliers and with their local communities and also have improved their efforts
of fair trading practices which have enhanced their brand value and also ensured good working
conditions throughout the supply chain but it have resulted in making their supply chain is very
complex. TQM, Next Plc have put their emphasis on their TQM efforts by which they were able
to prevent more wastage and cut costs even more, but this have made them to achieve their
targets and objectives more harder. Next Plc has focused on the continuous improvement with
the application of lean management, it has ensured minimizing costs without compromising with
quality. It has been possible with distinct techniques such as flow charts, work place redesigning,
JIT, TQM, and total productivity maintenance, but it is also followed by the limitation such as
low productivity, prolonged cycle time, costly organisation etc (Walker and et.al., 2015).
Total quality management
The main advantage of using TQM approach is that it helps Next Plc in minimising cost
and enhancing customer satisfaction. The organisation applies this technique that aids in
minimising field service and warranty cost. By this way it become able tooffer high quality
products and services to its consumers
But this is very experience process because Next Plc has to give additonal training to
staff members and have invest amount for discouraging creativity.

Lean management
Next Plc can implement this operation management approach, this is beneficial in order
to minimise wastage and help in raising satisfaction level of customers.
But due to inconsistencies in delivery this is ineffective and it hinders building
relationship with consumers.
Six sigma
It is another operation management approach that helps in controlling over quality and
supports Next Plc in identifying errors. By this way, entity can rectify mistakes soon and can
raise quality of products.
But sometimes it creates rigidity. Furthermore it is highly expenses approach thus, by
implementing this method cost would get increased.
2 Store manager's role as classic example of an operations manager
Our role as a store manager is a classic example of an operations manager in Next Plccan
be explained as the operations management is a branch that deals with the managing of the
operations and the process within the organisation (Maylor and et.al., 2018). Operation managers
optimises the operations by making the use of the capital and the resources of the organisation.
The various functions to be performed the operations managers include:
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 Finance: The operations managers of Next Plcensures that organisations finance is been
utilized properly to carry out functions properly.
 Operations: Operations in the operations management is mainly concerned with
planning, organising, directing and controlling all the activities of an organisation.
 Strategy: Store manager of Next Plc have to frame strategy and have to ensure that these
strategies can help in meeting with overall goal of business. Strategy in operations
management is a planning which helps in optimising the resources and also helps in
achieving competitive edge over others.
 Forecasting: This is another function of store manager of Next Pc, indiviudal has to
forecast demand and accordingly have to design operational activities. Operations
management, forecasts the estimation of the customers demand so that their production
can be done accordingly.
Store managements is vitally important aspect in the Marks and Spencer. It is the
supervision of assets (inventory) and stock items. Functions of store management in Next Plc
include:
 Receiving of incoming consignments (goods)
 Safe keeping of goods (custody)
 Disposal of undesirable goods
 Inventory Managements
 Record maintenance.
In Next Plc Store manager has to perform various functions of operations management as
store manager is responsible making the efficient use of finance for its inventory management,
formulating the strategies for the disposal and safe guarding of goods. Store manager of Plc is
also involved in the forecasting as it has to receive, safe guard, maintain records and inventory as
per the customers demand. So we can say store management is the classical example of
operations management (Hitt and Duane Ireland., 2017).
3 Importance of operations management in your store
Operations Management is very important in Next Plc because it is a process that involves
planning, managing, controlling, organizing, and supervising the production and manufacturing
fictions. Operations management involved in making the good use of resources like labour, raw
material, money and other resources.
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 It has improved the over all productivity as the ratio of input is termed as productivity.
 It has set the efficiency level of the managers as well as to the employees within the
organisation. This discipline focuses on using available resources in the best possible way
to achieve the goals so it improved the productivity in Marks and Spencer.
 Operations management has made it possible to manage various business activities in an
organisation and also design the product as per the customer requirements. Operations
management has helped in optimum utilization of its resources by decreasing wastage
and defects in the production in Next Plc.
 Operations management have improved the supply chain of Next Plc with the fair trade
with its suppliers. It is found that the manufacturing of raw materials and their
management of sales is done efficiently by managing the operations.
When operations management manages the operations properly it results in the smooth
functioning of the other dependents and when organisations operations are not properly managed
other departments suffer. So operations managers have to manage their operations properly and
effectively.
4 Key outside factors effecting operations management
There are various outside factors that can have effect on the operations management of
Marks and Spence which is described below:
a) Political: NEXT PLC have to take in to account the political situation of a country and
even the world in relation to the country (Haksever and Render, 2018). All the policies like
tax laws, tariff, exchange rates etc. that Govt. levies falls under this category. It will increase
their business across the globe, but also change in the policies of any country will effect Next
Plc both positively and negatively. For example If there is instable government then it may
create pressure on business thus, this will negatively affect Next Plc.
b) Economic Factors: It includes the determinants of an economy and its conditions. The
interest rates, inflation rates, monetary or fiscal policies, imports and exports etc, all these
determine the direction the economy might move so, operations managers have to analyse this
factor in order to build strategies for running the smooth business by increasing their efforts
on JIT, TQM, Six sigma and Lean management, but it is very complex and time consuming
which operational managers have to consider. For example if there is stable employment rate
and high value of economic then it will help in improving spending power of consumers. That
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will affect Next Plc positively because by this way spending power of consumers will be
increased.
c) Sociological Factors: Each and every country is different and even have unique mind set
and different culture which have the impact on the business, so this is also an important factor
for operational managers of Next Plc for operating their business globally. They have analyse
the tastes and preferences of the customers and design the product accordingly. Such analysis
needs to be done research on high level. For example: if people demand for trendy cloths and
Next plc fail to offer them same goods then it will affect its sales.
d) Technological Factors: Technology changes every minute therefore Next Plc need to stay
connected with the up grading technologies. So the operational managers have update their
production, packaging and manufacturing levels to face the competition, but such technology
up gradations may prove costly to the company.
5 Factors impact on decision making as a store manager
The factors which have impact on decision making as a store manager are:
 New Entrants: New entrants will decrease the profitability of the product of the
organisation as store manager it has to take the decisions like the government policy in
the country in which the business is operating, capital requirements for managing its
inventory and disposals, product differentiations, switching costs, access to various
distribution channels, these are the decisions which a store manager has take in order to
makes entries of other products difficult(Choi, Cheng and Zhao, 2016).
 Substitutes: As a store manager, he has take decisions like what will be the competitive
advantage over other substitutes, buyers switching costs, packaging to attract the
customers, pricing decisions, perceived level of product differentiation.
 Customers: Store manager has to the decision on the buyers switching cost, size of the
orders, total number of customers to be reached.
 Suppliers: Suppliers are described as the market inputs, so the store managers need to the
strength of their distribution channel, suppliers competition, the impacts of cost and
differentiation, suppliers switching costs.
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 Competitive rivalry: Store managers have to take the decisions regarding, to sustain
competitive advantage through innovations, level of competition between online and
offline companies, national and international companies.
There are many factors that affect decision making of store manager in Next Plc, if there
is high competition or poor economic condition. Then in such condition store manager of
company has to make changes in its marketing and pricing decision. they have to improve
heir marketing tactics so that entity can reach to mass audience . This will help in raising
demand. Another example, is that if technological advancement is here then store manager
of Next plc has to ensure implementing new technique so that it can raise quality and can
provide efficient products to consumers.
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REFERENCES
Books and Journals
Haksever, C. and Render, B., 2018. Service and Operations Management. World Scientific
Books.
Harvey, J., Heineke, J. and Lewis, M., 2016. Editorial for Journal of Operations Management
special issue on" Professional Service Operations Management (PSOM)". Journal of
Operations Management. 42. pp.4-8.
Walker, H. and et.al., 2015. Theoretical perspectives in operations management: an analysis of
the literature. International Journal of Operations & Production Management.35(8).
pp.1182-1206.
Maylor, H., Meredith, J.R., Söderlund, J. and Browning, T., 2018. Old theories, new contexts:
extending operations management theories to projects. International Journal of
Operations & Production Management.38(6). pp.1274-1288.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship. pp.45-63.Choi,
T.M., Cheng, T.C.E. and Zhao, X., 2016. Multi‐methodological research in operations
management. Production and Operations Management.25(3). pp.379-389.
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