UGB165 Report: Operations Management Strategies at Watson Engineering

This report examines the operations management strategies of Watson Engineering Tooling Company, established in 1980 in North East England. The company focuses on high-quality manufacturing of specialist equipment like calipers and scribes. The report analyzes the company's strategic ...Read More

UGB165

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Operations management plays a crucial role in administering business practices for
managing improvement in services. It is based on increasing efficiency in supply chain
management which aid in reducing waste and making optimum utilization of resources. When
managing operation focus of business in on making proper work cycle for converting labor and
raw material in to satisfactory finished good and services. It is the improvement and management
practice which assist the enterprise in maximizing profitable return and financial stability.
The assessment is based on analysis of newly appointed operations managers of
Engineering company that is Watson Engineering Tooling company which was set up by
graduate Engineer in 1980 in North East of England. The focus of firm is on maintaining high
quality in manufacturing of equipment like Calipers, scribes and other specialist items which are
sometimes customized according to need of engineering industry. The management of company
is focused on continuous motivation of employees which is the basic satisfaction which helps the
managers in managing employees' motivation. The focus of engineering firm is on gaining
loyalty and commitment of workers by rewarding and motivating them to work consistently.
The study will outline different operation strategies which are used by management for
managing improvement and systemic flow in manufacturing and supply of goods. It will
determine company wide operations' improvement strategy of Watson tooling firm. Thus, it will
suggest recommendation over tools and techniques which can be implemented by organization
for future betterment.
MAIN BODY
Operations management is the implication of the best tools or strategy for administering
and controlling business practices. In this focus of firm is on setting broad objectives with regard
to goals and objectives of organization. Watson Engineering Tooling company is managing
stable growth and success which was measure when the engineering industry faced a decline
because of increasing competition and globalization the organization was able to maintain its
command because of its long term business strategic plans. However, it was determined that
long term plans of company are effective but it is necessary for the management to have radical
strategy to cope up with dynamic business environment in case of major fluctuation or financial
crisis.
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Operations strategic decision of Watson Tooling company are based on stripping down
services, making use of one technology, close connection with suppliers and fast turnaround.
The strategic decision of operations management of firm are based on market requirements that
is low prices, basic services and reliability. In accordance with analysis it is predicted that
Watson engineering firm is based on long term planning rather than deriving short term
objectives. However, it can be said that operation management is for short term capacity
decision of Watson that is for 1 to 12 months while long term capacity decision are made with
the help of strategy as it is related of 1 to 10 years.
When making use operational strategy or model the company aim at making long term
view which helps the business in determining forthcoming challenges and opportunities which
need to managed by over coming weaknesses. It helps the firm in visualizing the need of
changes with regard to goals and objectives of an enterprise (Manatos, Sarrico and Rosa, 2017).
In accordance with this, firm aim at performing Swot analysis which helps the management in
determining strengths which can help in overlapping weakness whereas opportunities which aid
in overshadowing threats. Thus, for making strategical decision with all analysis Watson
Tooling company aim at evaluating capability of senior and junior staff members.
Difference between operation strategies and operations management
Graduate engineer of Watson engineering firm believes and understands the difference
between management of operations and strategy. As per the beliefs it is identified that
management is concrete and strategy are philosophical. Therefore, at the time of management
focus of management of company is on analyzing improvement measures in purchasing
procedure. This helps the business in maintaining cost effective, time and quality management.
On the other hand, in strategy the business aim at deriving ways of developing strategic alliance
with supplies which is the crucial part of whole engineering industry.
Implication of management and operational strategy in Watson engineering enterprise is
done on the basis of 5 competitive objectives derived by executive of company that is quality
which is the foremost requirement to be met (Adams, Gabler and Landers, 2017). Next is speed
which the focus of management is on time management by aligning employee activities in one
common direction. It is done to meet delivering requirements within time constraints and to
manage dependability on operation and supply chain. Further it is important for the business to
have flexibility in operations management because it is only managing practice which helps
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company in dealing with dynamic trends of trends. Being able to change business process is core
efficiency which assist the firm in attaining competitive advantage and making optimum
utilization of resources. Last competitive objective set by graduate engineer of Watson firm is
cost efficiency which denotes ability of company to be productive. Thus, in accordance with
different in managing and operations strategy and 5 core objectives of company it can be said
that the company implied use of different models and tool to cope up with change and meet
market expectations.
Four perspective on operations strategy
Implication of model in Watson Tooling enterprise is based on four perspective that is
corporate strategy where the manger aim at determining values and impact of business
operations. Further, operational experience is another aspect which is incorporated by
management for strategical decision making as it helps in deriving effective of regular operation
of engineering firm. Likewise, the strategy is based on resources like what is the particular use
and efficiency of tool. It is necessary to be calculated by Watson tooling company because it
derives the need of making relevant changes for managing cost effective and improved
productivity (Hill and Hill, 2017). Last but not the least strategic decision of graduate engineer of
organization are based on market requirement because the executive believes that deriving
position and expectation of market is basic step which helps the company in managing
improvement in entire process of manufacturing.
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The perspective approach of strategical decision making in Watson Tolling company
revolves around Top down and bottom up orientation. In this Top down orientation is over on
over view of business over achievements and goals. With the help of this the firm is able to
derive efficiency and needs of business from its operation. However, bottom up orientation of
Watson Engineering firm aid the firm in evaluating a check over day to day experience and
functioning (Qi, Wang and Yeung, 2017). It helps the company in managing daily changes to
attain sustainability and competitive advantage by establishing control over supply chain
management.
Four Stage Model of operation contribution in Watson Tooling firm
The operation manager of Watson Engineering company has implemented the use of four
stage operation contribution model which helps the organization in managing continuous
improvement.
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Illustration 1: Four perspective on operations strategy
(Source: Laari, Töyli and Ojala, 2017)

 Correct the worst problem: In accordance with this model the enterprise is able to derive
the worst problems at initial level which helps in overlapping various threats which can
hinder effectiveness of finished tools. For example, measuring which is the biggest
concern of engineering organization. However, in this management aim at keeping
different scaling tools because measure of every tools needs to be precise. However,
checking measuring on different scales before further processing helps the business in
minimizing risk at initial level which eliminates the risk of time management and
operational capabilities.
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Illustrat
ion 2: Four stage model of economic contribution
(Source: Yablonsky, 2017)

 Adopt the best practice: The second step of four stage model in engineering firm is
adoption of the best practice for which the firm derive use of various technical tools like,
lathe tool which is casting machine, boiler which is used for melt metal, etc. Use of these
tools by Watson firm is on the basis of competitors as the focus of management is to
increase value of goods in order to deliver best engineering tools. Link strategy with operations: Third stage of operations contribution model is linking
strategy with operation where the focus of workers is on making precise use of tools and
techniques in order to manufacture the best products without any hindrances and
interruption (Fernandes and et.al., 2017). This functional management at this stage
determines the best strategy of firm in industry because it is related final production
which needs to be cost effective and appropriate with regard to market requirements.
 Given an operations advantage: Last stage of the model is best and result stage of the
business because in this Watson Engineering firm is able to derive advantage from
management. It is supported by external factors and helps the business in redefining
expectations of industry.
In accordance with analysis of 4 stage model contribution in Watson Tooling company it
can be said that the firm aim at managing continuous improvement in service by implying use of
the best resources and strategies. In addition, the management of company aim at improving cost
effectiveness in manufacturing process by stressing on optimum utilization of resources and lean
management.
5 P's of implementing operations strategy
Watson tooling company implied that use of 5 p's to managing effective operational
control because it enables alignment of 5 variables which are discussed below: Purpose: It is based on shared perspective of engineering company that is motivation,
boundaries and work requirements. When developing operational strategy or making
operational decision focus of operational manager is one determining employee interest
because the individual are core assets of an enterprise (Backman, Verbeke and Schulz,
2017). Further, boundaries helps the firm in deriving success level and goals which needs
to achieved in particular time span. Point of Entry: In this graduate executive of firm assist employee and senior management
in deriving point and process of implementing particular strategy, because the person is in
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direct touch with market requirements and expectations. In this focus of engineer is on
managing cost effectiveness and attaining competitive advantage. Process: It is the formulation stage where the focus f non executives of organization is on
making implementation of strategy explicit where there is no chance of confusion which
can lead to error or mismanagement. The non executive aim at stating each and every
decision and process to be followed to employee for clarifying strategical process of an
enterprise. Project management: It is based on management of strategical decision or strategy which
aid in managing employee activities towards one specific business goal and objective.
 Participation: It is the concern of strategical implication where it is important for the
management to involve with different functional units for monitoring effectiveness of
decision (Aligning Purpose, Principles, Processes, People, and Performance, 2018). The
senior management and executive engineer of Watson owns regular participation with
workers which assist in gaining their loyalty and managing effective in supply chain.
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Illustration 3: 5 P's of implementing operations strategy
(Source: Aligning Purpose, Principles, Processes, People, and
Performance, 2018)

Total quality management approach
Apart from these strategical operation management model Watson Tooling organization
make use of Total quality management approach which aid the business in managing continuous
improvement. The approach is based on all the aspects of business that is competitive advantage,
accomplishment of business objectives, stakeholder satisfaction, optimum utilization of
resources, lean management and sustainability. The approach helps to incorporate employees
practice towards one goal by committing the highest business standard to accomplish stakeholder
satisfaction.
In accordance with implication of TQM approach Watson tooling company is able to
manufacture products as per individual customer requirements. With regard to this the company
aim at improvising tools like boiler, measurement scales, calipers, scribes, etc. Further, TQM
approach promotes total employee involvement of engineering firm which helps the business in
managing shared perspective and common business goals (Bajaj, Garg and Sethi, 2018). This
factor of model assist the firm in attaining total employee commitment.
Apart from this, TQM promotes process centered thinking in Watson engineering firm
which enables series of steps by taking input from suppliers and transforming into finished goods
that is output for delivering to buyers. Total Quality management supports integrated system of
where the organization structure of Watson engineering firm are vertically connected with each
other. However, it can be outlined that TQM approach within engineering firm supports smooth
flow of logistics which assist the business in maintaining sustainability in supply chain (Reddy,
Reddy and Takhelmayum, 2017). As per implication of TQM approach it can be implied that the
companies objectives of evolving new engineering based entity will be attained because it
supports objectives of Watson firm that is supply of quality goods to global customers,
maintaining cost effectiveness and delivering within time constraints.
The most beneficial and effective aspect of TQM approach of Watson engineering firm in
fact based decision making, communication and continual improvement. In improvement
measures focus of employees of every department is on seeking new and innovative way of
managing changes and creativity in working pattern to attain competitive advantage. Apparently,
communication play a key role in overcoming weakness by grabbing opportunities and reducing
manual errors at work (Düren, 2017). Watson engineering firm support employees' participation
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and regular interaction because it assists in maintaining morale and motivation among staff
members working at different level of organization.
Implication of different operational strategical tools denoted efficiency and dedication of
Watson firm to evolve as market leader and serve customer satisfaction. Likewise, from the
analysis it is determined that no matter changes and different most the focus of firm never shifts
from cost effectiveness, quality improvement and employee satisfaction.
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Illustration 4: Total quality management
(Source: Total Quality Management (TQM), 2018)

CONCLUSION
The assessment summarized analysis of newly appointed operation manager about
Watson Engineering company which is an invention of Graduate engineer. It outlined analysis
of product range and operational management strategies used business to attain competitive
advantage and evolve as market leader. The study discussed about various strategical decision
and objectives of company like long tern and short term capacity decision making.
Further, from the study it is derived that Watson engineering company make use of 5 P
approach which helps the management in aligning employee activities in one direction. With the
helps of this approach the organisation is able establish coordination and employee motivation
hand in hand. Apart from this the study concluded about total quality management model which
is sued by form for managing effective communication, customer centred services, employee
motivation, cost effectiveness, continuous improvement and buyers satisfaction. Strategic
management of all these aspects assist the organisation in managing sustainability in supply
chain and accomplishing competitive objectives.
The assessment outlined about implication of four stage model of economic contribution
which is used by Watson engineering company. This model assist operational department in
determining problem initial level which aid in managing of smooth logistic process. Hence, it
identified four perspective which are considered by management for making operational
decision. Hence, it can conclude by stating that business focusing on managing continuous
improvement and effectiveness by making use of different tragical model and approaches.
As per the analysis, it is determined that there is a need of making modification in
business process of Watson engineering company which can be done by implementing use of
more relevant strategical model and decision which are discussed below:
The strategy hierarchy
It offers aligning of strategical business decision in three implied steps that is corporate,
business and functional. In accordance with corporate strategy operational team of Watson
would be able to focus on business and acquiring needs. This is the best analysis which can help
engineering firm in determining investment and ways of allocation cash which will be effective
for the organisation in regulating smooth flow of cash to mage systemic logistics with cost
effectiveness (Düren, 2017). Decision of corporate strategy are influenced by economic, social
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and political environment. This strategical implication will aid the organisation in managing
shared values and work ethics.
Business strategic decision need to implied in organisation because it will assist operation
management team of Watson in setting realistic mission which needs to be achieved. Further, it
helps the employee is deriving strategic objectives which need to attained and lastly it aims at
analysing way to complete certain task. This influences decision of firm on the basis of changing
market expectation, increasing competition, financial constraints and advancement in
technology. Regular check over these strategic decision is effective change for Watson
engineering firm because it will promote optimum use of funds and technology within
operational team which will boost manufacturing services of engineering organisation.
Implication of functional strategy should be complied by Watson company because it
suggests contribution of strategic objectives and management of resources. This should e
considered by an enterprise because it is regulated by use of technology, skills of employees and
performance of business operations.
Implication of competitive factors with performance of objectives
It is important for Watson company to incorporate competitive factors with performance
of objectives. In accordance with low price it is important for the engineering firm to focus on
cost effectiveness because of the goods will be manufactured at high price and will be offered at
low to attain retain customer then it will be huge loss to business. On the other hand, It is
important for the firm to keep quality standard parallel to competitive and performance factors.
Likewise, fast delivery is competitive factor where it is important for the Watson company to
assure speedy logistics flow in order to ensure task completion within time constraints.
The company should aim at reliable delivery because it helps in attaining customer
satisfaction for which the company should have focused dependability of functions. Hence, in
accordance with analysis it is determined the company lacks flexibility which restricts its
innovation therefore it is important for the management to adopt flexible working of every
department which ill allow the company in managing creativity and innovation in manufacturing
department (Yablonsky, 2017). Henceforth, the organisation should focus on its wide range of
products for evolving as market leader by serving satisfactory services.
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REFERENCES
Books and Journals
Adams, F.G., Gabler, C.B. and Landers, V.M., 2017, June. Green Logistics Competency: A
Resource Hierarchy View of Supply Chain Sustainability. In Academy of Marketing
Science World Marketing Congress (pp. 31-40). Springer, Cham.
Backman, C.A., Verbeke, A. and Schulz, R.A., 2017. The drivers of corporate climate change
strategies and public policy: a new resource-based view perspective. Business &
Society. 56(4). pp.545-575.
Bajaj, S., Garg, R. and Sethi, M., 2018. Total quality management: a critical literature review
using Pareto analysis. International Journal of Productivity and Performance
Management. 67(1). pp.128-154.
Düren, P., 2017. Total quality management in academic libraries–best practices. Qualitative and
Quantitative Methods in Libraries. 1(1). pp.43-50.
Fernandes, A.C. and et.al., 2017. Supply chain management and quality management integration:
A conceptual model proposal. International Journal of Quality & Reliability
Management. 34(1). pp.53-67.
Hill, A. and Hill, T., 2017. Essential operations management. Macmillan International Higher
Education.
Laari, S., Töyli, J. and Ojala, L., 2017. Supply chain perspective on competitive strategies and
green supply chain management strategies. Journal of cleaner production. 141.
pp.1303-1315.
Manatos, M.J., Sarrico, C.S. and Rosa, M.J., 2017. The integration of quality management in
higher education institutions: a systematic literature review. Total Quality Management
& Business Excellence. 28(1-2). pp.159-175.
Qi, Y., Wang, Z. and Yeung, H.Y.J., 2017. The impact of operations and supply chain strategies
on integration and performance. International Journal of Production Economics. 185.
pp.162-174.
Reddy, M.S., Reddy, Y.R. and Takhelmayum, G., 2017. Study on the Performance
Characteristics and its Practices of Total Quality Management. IJASRE. 3.
Yablonsky, S.A., 2017. Multidimensional cloud-enabled innovations for financial
services. International Journal of Business Excellence. 11(4). pp.464-486.
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Online
Total Quality Management (TQM). 2018. [Online]. Available through:
<https://www.toolshero.com/quality-management/total-quality-management-tqm/>.
Aligning Purpose, Principles, Processes, People, and Performance. 2018. [Online]. Available
through: <https://www.12manage.com/description_pryor_5_ps_model.html>.
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