Understanding the Nature and Importance of Operational Management

Question: You should explain nature and importance of operational management and the linkage between operations management and strategic planning. You should also organise a typical production proccess and apply relevant techniques to the production of an operational plan for a typical business. Answer: Introduction Operations management is highly essential to be carried out by businesses from the point of view of delivering the finished products and services to their customers on timely basis. There has been higher overall significance of operations in an organisations success and this is mainly because of the fact that it contributes higher level of efficiency and ultimately leads to the attainment of higher productivity levels. However, the role of operational manager is crucial in ensuring that there has been higher level of efficiency being accomplished because the operational manager is responsible for designing organisational processes aimed at enhancing entire organisations performance. In addition to this, the operational manager is also required to make it sure that there has been the application of relevant technology in the process, and at the same time, the skills and abilities of employees are applied in a positive way in achieving organisational success. In addition to this, moder n day operational managers are required to make it sure that there is closer linkage of their operational strategies to that of their organisations strategies and vision. The application of relevant techniques and equipments are essential in ensuring that higher level of operational success is being achieved (Jones and Robinson, 2012). This report is focused towards performing an analysis of newer techniques and ideas that could be applied by Furniture Supplier Company for the purpose of achieving improvement and efficiency in their operational processes. The important areas to consider as a part of analysis are the importance of operational management, analysis of linkage between operations management and strategic planning, organisation of the production process and the analysis of relevant techniques aimed at producing the operational plan in improving efficiency. Understanding the Nature and Importance of Operational Management The role and importance played by operational managers for the purpose of achieving improvement in organisational processes is discussed as follows: Importance of Operations Management: Operations management has significant level of importance for an organisation. In respect to Furniture Supplier Company, the role of operations management is crucial because higher efficiency in it would result into the accomplishment of organisational goals in a positive way. Operations management is important because it streamlines the processes and contributes towards efficiency in the production processes. As a result, it could be possible to ensure timely delivery of finished products to final consumers. Further operations management is important because it decides the maintenance of quality of the products being produced and also the cost effectiveness level in such process. A highly efficient operational management process in respect to the given Furniture Manufacturing Company is also significant from the point of view of allowing it in meeting out the needs for leading furniture retailers in a positive way (Vidler, 2001). Analysis of the Operations Functions of Furniture Supplier Company: An analysis of Furniture Supplier Company indicates there are a range of operational areas that are carried out within the company in ensuring that the finished goods are made available to the leading retailers. The main operational functions within the Furniture Company are purchasing function which includes planning for the acquisition of raw materials in the form of woods in supporting the production process, IT function managing the use of information technology in production process, core operational function that manages the inbound logistics process and the raw materials as collected are utilised to process them so that finished products are being accomplished. The operational manager is responsible for the entire operational functions management and he/she utilises the organisational resources with a view to accomplish quality product in a cost efficient manner (Loader and Biggs, 2002). Evaluation Using Process Model: The management of operations of Furniture Supplier Company is performed in a specific manner. There are a range of processes being carried out, and an analysis of such processes of Furniture Supplier Company is performed through the application of flowchart process model as follows: The process map above indicates about the ways in which the development of finished products is performed at the Furniture Supplier Company. It indicates that the raw materials as received are subjected to inspection by the production team regarding their quality and this is followed by processing of raw materials to convert them into the finished products. The task of processing of raw materials is performed by way of utilising organisational resources including highly skilled human resources, efficient technologies in the process and also by way of establishing coordination within different team members. In these ways, the production process is being carried out at Furniture Supplier Company which allows it in providing high quality furniture products to its customers (Koontz, 2010). Understanding the Link between Operations Management and Strategic Planning This section of analysis is now focused towards assessing the link between operations management and strategic planning. The analysis of such links between operations management and strategic planning are assessed as follows: Importance of 3 Es to Organisation: This section of analysis is now focused towards assessing the importance of 3Es in respect to Furniture Supplier Company. The three Es are mainly classified as economy, efficiency and effectiveness. The role of these 3 Es is significant as economy factor is crucial which requires the focus towards minimising the cost of resources (Chai, 2009). In respect to Furniture Supplier Company, it provides furniture to retailers in bulk and thus, cost efficiency is essential. Thus the economy factor would allow it in delivering high quality services at minimal costs to its customers. The efficiency factor is important as it requires performing the tasks with reasonable efforts. In respect to Furniture Supplier Company, it is essential that the company is required to achieve efficiency in utilising its resources mainly the human resource and this can be efficiently performed by way of encouraging the employees in performing their roles and responsibilities in a right manner. The effectiveness factor is also important because it indicates the extent to which the objectives of the organisation are efficiently met. This requires doing the right things and in respect to Furniture Supplier Company, doing things in a correct way could be ensured in the form of making it compulsory to members across all the departments to perform their roles and responsibilities efficiently. By encouraging them to remain objective with respect to their roles in the organisation, the effectiveness factor could be achieved in a positive manner. Tension between Cost Minimisation and Quality Maximisation: This has been an important factor that creates tension within operations managers in performing their roles and responsibilities within organisation. The attainment of proper balance between cost and quality factor is important determining factor behind the successful performance of an organisation, and the role of operation manager is crucial in this respect. The operation manager is required to make sure that highest quality should be attained in the production process, and at the same time, the cost factor should be taken into consideration. However, this has been a tough job for the operational manager at Furniture Supplier Company to ensure that there is higher level of quality of furniture products being maintained and at the same time, cost effectiveness is also maintained. This is because a higher focus on quality would affect the cost factor as it would increase heavily, and contrary to this, a higher focus of cost efficiency would affect the quality factor in particular. As a result, there has often been tension being encountered in respect to these factors, and it is therefore essential that the operational manager should focus towards these aspects in achieving effectiveness within the company (Sharma, 2006). Evaluation of Significance of Five Performance Objectives: Performance objectives are important from the point of view of achieving determines goals of an organisation. The management of operations of an organisation can be carried out efficiently by way of establishing performance standards and objectives. There are five performance objectives that could be considered in enhancing the management of operations in organisations and they could be considered in respect to Furniture Supplier Company in enhancing their overall performance levels. These objectives are categorised as cost, dependability, flexibility, quality and speed. As for instance, Furniture Supplier Company should pursue the objective in relation to these five performance areas so that they could be positively accomplished and higher organisational success can be possible (Lewis and Slack, 2003). As for instance, with respect to the cost factor, the objective at Furniture Supplier Company should be to achieve cost efficiency in all the production processes that are carried out within it so that retailers can be offered with cost efficient furniture products. In respect to dependability, the objective at Furniture Supplier Company should be to make it sure that there should be lower overall dependability of the organisation over key resources in the production process such as human resources, information technology etc. This would allow the organisation in independently managing its operations, and such less dependency would leave little scope for the occurrence of monopoly. This would ensure efficient performance of the Furniture Suppliers in meeting out the needs and expectations of retailers for furniture products. Apart from this, flexibility is another important criterion that should be achieved especially in respect to operational management (Neely, 2007). Flexibility allows for adjusting the processes and also allows employees in making adjustment to their efforts in a way that is beneficial to the organisation. The objective regarding the flexibility at Furniture Supplier Company is mainly to make it sure that the employees are provided opportunity in performing their responsibility. This would allow them in contributing their maximum efforts in achieving higher organisational goals. Quality is also crucial from the point of view of achieving success because furniture products are assessed based on their quality factor. By focusing more on the quality, it could be possible to attract more and more customers and higher quality levels would ultimately be achieved. As a result, the performance objective in relation to quality should be to accomplish higher quality levels in the production process of the company (Kale, 2013). However, by maintaining quality levels, it is not sufficient to encourage retail furniture services providers to purchase the products until and unless they are provided to them on timely basis. This signifies that the speed factor is another important factor that must be given higher level of importance by the Furniture Supplier Company so that the retailers can be provided with furniture products on time. This requires efficiency in the production processes so that speed factor can be efficiently realised. In relation to this, the performance objective at Furniture Supplier Company is to maintain higher efficiency levels in speeding up the production process so that their customers can be provided with furniture products on timely basis (Lewis and Slack, 2003). These above indicated performance indicators are crucial from the point of view of achieving higher level of efficiency at Furniture Supplier Company and thereby in accomplishing organisational goals in a positive way. Understanding the Ways of Organising a Typical Production Process This section of analysis is focused towards understanding the organisation of the production process as a part of operations management. The important aspects in this regard are analysed as follows: Role of Linear Programming in Production Process: Linear programming is an important mathematical modelling technique that has its relevance not only in respect to mathematics, but it can also be applied in respect to different fields. As for instance, linear programming can also be applied in respect to operation research and especially in performing the production process. The most significant use of linear programming is that it allows for the most efficient allocation of limited resources such as material, machines etc. The application of this linear programming technique in respect to production process at Furniture Supplier Company could be performed in making use of its limited resources in a highly efficient manner. This is mainly the application of machines to achieve efficiency in generating positive outputs. The linear programming at Furniture Supplier Company can be applied by way of decomposing the production function into more basic linear production processes which is utilised in transforming inputs into outputs (Negishi, 2013). Critical Path Analysis and Network Planning: The critical path analysis is an important technique that is utilised mainly in the project management. However, its application is mainly ensured with a view to identify the critical path that should be followed in accomplishing the project goals. The critical path shows the activities that must be carried out so that performance of projects can be ensured in an efficient manner. In relation to the operation management at Furniture Supplier Company, this concept of critical path analysis can be applied in a positive manner in achieving operational efficiency. This method can be applied in the form of identifying the most significant activities in the production process that are crucial to achieving efficiency in furniture manufacturing. The critical path analysis is regarded as an important method of network planning which highlights the important processes needed to focus in performing the manufacturing process in a positive manner (Thor nley, 2013). Need for Operational Planning and Control: The production of furniture is not an easier task as there are various important factors that are required to be considered in the process. As for instance, furniture production requires the consideration of size factor, design factor, purpose for which the furniture is to be utilised and many more. It is essential that there should be adequate level of consideration that needs to be made especially with respect to operational planning and control so that the purpose can be efficiently satisfied. The operational planning is required in respect to quality and quantity of furniture to be produced along with the workforce needed in performing the production process. Applying Relevant Techniques to Production Process This section of analysis is focused towards the application of relevant techniques aimed at enhancing the production process especially in respect to Furniture Supplier Company. These aspects are analysed as follows: Possible Layouts in Producing Furniture: There can be certain important layouts that could be utilised for the purpose of performing the production of furniture. The important layouts in producing furniture are indicated as follows: The above layouts are quite effective from the point of view of designing furniture in a positive way and they can aid the manufacturing companies in designing important aspects in relation to the production of furniture. They can be utilised to design the size of the furniture based on the space available. Furniture companies such as Furniture Supplier Company in the above case can make use of the above layouts in designing and developing furniture. The layouts can be utilised in designing specific furniture suited to different rooms of different sizes at home and offices. Production of a Network Plan: The network plan is important from the point of view of managing different important operational areas of the organisation in a positive manner. The network plan in respect to the Furniture Manufacturing Company should include the different departments such as marketing, production, operation, administration etc and the employees within them that are essential in supporting the entire performance of the organisation. Within such network plan, the critical path should be identified that could be applied in order to identify the critical factors in the entire production process in achieving higher level of success and effectiveness within it (Tenne and Goh, 2010). Approaches to Project Management: The management of project requires the consideration of large number of factors aimed at accomplishing higher level of success in it. The project management approach that can be utilised for the purpose of quality control in sales is mainly to apply the performance based development approach whereby the performance in sales of furniture would be the determining factor to them. With respect to the control of quality in respect to stock and purchase process, there is a need to perform the application of technologies such as RFID so that the management of the entire purchasing and stock control processes can be ensured in a highly efficient manner (Wysocki, 2013). Conclusion This report includes a critical assessment of the operational management technique that needs to be considered in ensuring that the management of operations at the Furniture Supplier Company can be ensured in a positive manner. The analysis has resulted into the identification of large number of techniques that could be utilised in achieving higher level of effectiveness in performing the management of organisations processes in an efficient manner aimed at leading the organisation to higher level of success. On the basis of analysis as carried out, it has been evaluated that operations management is highly important to organisations. The analysis of operation function of Furniture Supplier Company indicated that it has been highly effective from the point of view of meeting out the needs and requirements of retailers for furniture products in a highly efficient manner. However, the operational manager at Furniture Supplier Company is required to make it sure that there is proper lev el of balance that should be maintained with respect to cost and quality factors. The role of performance objectives is identified as crucial because they help in deciding on the most important actions needed in ensuring that the strategic operational goals are positively accomplished. The analysis indicated that critical path method and networking programming are important tools especially in respect to operation management in organisation. The analysis also indicated that there is higher overall importance of layout in the manufacturing of furniture and this should be considered at Furniture Manufacturing Company in ensuring that there has been higher level of effectiveness that could be ensured in efficiently meeting out the needs and requirements of retailers for furniture. References Chai, N. (2009), Sustainability Performance Evaluation System in Government: A Balanced Scorecard Approach Towards Sustainable Development, Springer Science Business Media. Jones, P. and Robinson, P. (2012), Operations Management, Oxford University Press. Koontz, H. (2010), Essentials of Management, Tata McGraw-Hill Education. Kale, S. (2013), Production and Operations Management, McGraw-Hill Education. Loader, D. and Biggs, G. (2002), Managing Technology in the Operations Function, Butterworth-Heinemann. Lewis, M. and Slack, N. (2003), Operations Management, Psychology Press. Neely, A. (2007), Business Performance Measurement: Unifying Theory and Integrating Practice, Cambridge University Press. Negishi, T. (2013), Elements of Neo-Walrasian Economics: A Survey, Springer Science Business Media. Sharma, S.C. (2006), Introductory Operation Research, Discovery Publishing House. Tenne, Y. and Goh, C. (2010), Computational Intelligence in Expensive Optimization Problems, Springer Science Business Media. Thornley, G. (2013), Critical Path Analysis in Practice: Collected papers on project control, Routledge. Vidler, C. (2001), Operations Management, Heinemann. Wysocki, R.K. (2013), Effective Project Management: Traditional, Agile, Extreme, 7th ed., John Wiley Sons.