Operations and Processes Management - McPherson Charles Solicitor - Essay Example

? OPERATIONS MANAGEMENT Introduction Operation management is a kind of management approach where the components of an organization are aligned to the customers needs. It enables maximum utility of the human resources and flexibility in the management of the organization. Thus the main of the operations management is the optimization of all processes in an organization. Operations and processes Operations and processes management Operations function is basically a section of an organization responsible for producing both products and services. Operation function is vital in every organization because of its core duty of being involved in production of both products and services (Michael 2003). Process management can also be defined in terms of management where the mangers receive more experience on managing various types of operations in an organization. Operational and process management is applicable in industries because every function in an industry requires a process for it to be accomplished. Process perspective in business The process perspective is crucial in the management of any business. The process perspective is used by organizations to develop a model where business is analyzed at various levels. Processes are modeled to appropriately serve the business purpose. It involves shaping the processes to ensure customers’ needs are satisfied (Michael 2003). Strategic impact in operations and process management Operations and process management can be very crucial in the success of a business in terms of revenues, the capacity, investment and the cost incurred in the process of doing business. All the parameters that contribute a success or failure in business should all be under control for a business to be having stability and the ability to be determining its future. The operations function of a business should be laid down to enable a future orientation that will hold. Management of process Business objectives and the process are different and are focused in a certain way. Basically the operations of different businesses may be different thus the management for each of them would just be different according to their capacities. A process with very high capacity should be flexible enough to handle the challenges posed by the complexity of the system. While managing businesses of varied processes, the customer’s perception of the activities should be treated with the utmost sensitivity. Therefore managing the customer’s perception would be vital in realizing a proper process is in place. A combination of various processes and low level of variety would result in low cost. In managing these activities, it is important to consider designing the operation, the processes and services, planning and delivery of the process. Also more important in consideration is the process of managing the performance. Operations Strategy A strategy formation has four major steps to follow; they include definition of the tasks, assessment of the competences, determination of the orders in terms of the winners and the qualifiers and the firm positioning. The priorities for competitive approach include the costing, consideration of the quality, the speed of implementing the process and the process flexibility. Reducing the cost of operations includes installation of automated machines which in turn improve delivery of activities in various processes. Basically such improvements are implemented in the inventory, and record-keeping. Quality is basically based on the customers’ satisfaction which implies that every employee is empowered to deliver good services to the customers and for the industries as the manufacturing, the goods produced are ought to be of high quality (Knapp 2010). This can be achieved a frequent check in through a report tracking in the organization. Each process may be evaluated in terms of its quality. Time of delivery, variety of products and services would be crucial in serving the customers interest and diversity. They will have the choice of selecting their best products in a more flexible way. Speed of delivery thus is very important in achieving a more stable process that would serve the customers better (Summers 2008). Role of operations in the corporate strategy Operations are essential supporting strategies of a firm in a demarcated way. Basically the strategies are essential in conducting more distinct strategies that would ensure better services are delivered to the customer than what the competitors do. Figure of operations strategy Strategies should be diverse in ideologies and innovations. For instance the use of internet in marketing has proved to be worth. Such opportunities are provided by companies such as the eBay. The capacity in the eBay market is unlimited thus the customers have the opportunity to take part in the business. Compared to other markets, the marginal profit is minimal since the seller and the buyer have a direct interaction. The internet market offers new strategic exploitation of the old market by addition of new activities (Summers 2008). Innovation is advantageous because of its competitive market approach. From information such as in the internet, the customers can access the information on the prices while the competitors can fix themselves fast in the market through innovation. The benefits acquired from internet however may not be a long term solution to the business. The customers’ demands can be satisfied through application of the following quantities; make-to-order where the customers obtain what they want by specifying the kind of products and services they want (Summers 2008). Make-to-stock is specifically carried out a projected amount of customer demands is specified. Assemble-to-order considers the customer requirements in the way the products may be delivered to them. Products and services strategy The kind of process that can be followed in an organization may defend on the volume of the products being anticipated to be produced. For a small production, a batch process would be suitable however a large production process may require a more sophisticated process in a continuous process. Service strategy can be categorized in terms of the kind of skills required. Professional service requires intensive labour (Knapp 2010). The service shop requires less professional team but all labour intensive. The mass service and the service factory however have less labour intensity. Diagram of service-process matrix Figure 1 In consideration to the capacity and facility in the operation strategy, the question on how and when the execution of the process should be handled should arise. The customer base should also the major criteria in which the facilities should be chosen. The location of the facility should be unveiled after a strategic decision has been made. This may be influenced by the human resource development in the region or the location of the facility. The strategies on how the workers will be managed are also important in the human resource management through the operation strategy. Process design Case study: McPherson Charles Solicitor The only way that a manager can make an institution out of the capacities of the employees is through process design. Control s also possibly easier when the process design is put in place. Process cannot be redesign any how unless an objective design is in place. Basically the process design is considered an important element in delivery of the services by the company. since the objective of most of the team operating may be protect the turf, there is a risk of the organization facing a serious control problem since some process are threatened through integration (Knapp 2010). Processes may require to be controlled in one way but the management takes a different dimension thus cultivating confusion in the system. There the organization has to organization its management and assign responsibilities to each of the members of the team execute in a professional manner. Training of the employees would be necessary to ensure the company’s operations are executed in way that is prescribed by the owner of the process. The focus on the process is basically because the vertical management may not function well when focusing on handling customers such as in the law firm. The management would involve managing the people executing the work and not the following the hierarchy. A unit manager performs the duty of ensuring the work is delivered as per the organization policy. The elements of the process design as basically meant to ensure the workers deliberate their attention more on the customers. They should be able to conduct their activities through negotiation and collaborating with the customer. Basically the customer would want to feel the freedom and trust on the sensitivity of the matter the company handles. Execution of duties is based on negotiations rather than exercising authority. Thus the management is advised to take initiative of coaching the staff to serve the customers rather than taking control over them (Knapp 2010). The quality of the work being delivered to the customers should always be the priority. To begin with, the process of design should start with the identification of the problem or the challenge that faces the company. This should be in line with the strategic and operational goals. A systematic approach to this is conducted to choose the most important challenges that need to be dealt with. The approach to the problem should be taken into account based on the structure of the company. in the feature is the McPherson Charles Solicitor being a law firm require more attention on how the customer are treated and also deal with the threat the competitors pose. There the approaches to solving a problem in the management should be aligned with the current challenge. The approaches should be integrated to the system. A good management process takes time to achieve. Process management in the McPherson Charles Solicitor The qualities of the management practices being carried out in the McPherson Charles Solicitor includes 1. Well stated time of operation which is basically a routine for each of the company’s employees. 2. The process description is deliberately stated for the customer to have knowledge on how the business is conducted. The value of each of the process is explained. 3. Though the functional organization is present in the company, their effects are lightly affecting the service to the customers. 4. The feedback on the process is fundamentally important in treatment of the customers thus they are required to provide a feedback on how the process during the time of use. The feedback can be either negative and positive 5. The owner has the responsibility of ensuring the boundaries do prevent the business operations from being conducted effectively. 6. The management is based on the customer thus the issue of bureaucracy less applied but the process follows a systematic management which does not the process from being fully operational. 7. The owner has a clear link to the whole process Critical to quality The quality of a process design may consider the following approaches with the effect of the service quality being considered. The convenience of the process creates the milestones the success of the business (Knapp 2010). McPherson Charles Solicitor, depend on the attributes to satisfy its customers. The reliability of the process is the key application that the customers want in any kind of a business thus the quality the quality and speed of delivery play a very important role in the process. Basically other considerations that are important to the customers include the treatment that they receive and the interaction with the front line employees of the company. In the case where the reliability is not achieved, the failure recovery should be offered. This would ensure a satisfactory treatment is compromised between the customer and the organization. That can be achieved if the interaction with the customer is phenomenal. Inventory Management Case study: supplies4medics.com In 1990s, supplies4medics.com was a major supplier of electronic equipment to the hospitals and the medical firms. 25% of the total value was carried in the inventory services (Knapp 2010). The company applied various mean of negotiating for the inventory which included cutting the cost incurred in the inventory. It included reducing the inventory to 15% of the total value. Most of its inventory services were carried out through the DHL. However there was a verge to use other mean such as the internet so as the cost of facility could be reduced. The role of the inventory services includes consideration of the safety of the stock and various assignments of the inventories. The type of the customers’ demands, the cost and the time for planning are essential in considering the development of the inventory services. The major costs that might be incurred while carrying out the inventory services includes the cost of ordering the goods, the cost of receiving and the inspection carried out on the goods, the cost of holding the goods before transit and the cost resulting from the shortage. The main objective of the inventory is the customer satisfaction without the challenge of under-stocking. It is also to increase the efficiency of doing business through a provision for the customer’s demands and high level of quality. Usually the inventory can cost up to the 35% of the value of a product thus saving from the inventory may be quite beneficial to any company. In the case of the supplies4medics.com where they supply medicine across Europe, there is more likely to be cost cutting if the inventory management is conducted in a better way(Grewal 2010). The functions of the inve3ntoriee are basically to satisfy the customers’ needs, this is seen when considering the purchase price of the products and the economies incurred in the production process. There are uncertainties in the business thus the inventories play an important role in helping the business recover from the uncertainties (Kamauff 2009). Thus the supplies of the goods are constantly supplied to the market with a save in the transportation cost. Basically the inventory stands with the principle of quality, cost, speed and flexibility. The type of the inventory determines the quality of products being delivered. For instance the low inventory may result in the products of high quality. The location of the inventory also matters basically on how the Inventory costs The cost of procurement in the company includes: the shipping cost, order processing, and handling of the materials. The carrying costs incurred include the capital cost, the inventory risk, the services and the spaces used in undertaking the inventory. Other cost incurred is the lost sales and the cost of orders that are taken back. Demand The demand in the market can be classified as independent and depends. The independent demand falls under the items that are ready to be taken to the customers. In the independent demands, forecasting of the market plays a crucial role in the decision making (Kamauff 2009). To avoid uncertainties, usually extra units of the items ought to be added to the inventory. The dependent demand caters for the raw materials and other components that are crucial in a production process. Management system The main function of the inventory management system is the design of Order Quality also known as the EOQ (economic Order Quantity), order timing (the reorder point). Economic Order Quantity The main objective of the inventory is to minimize the holding capacity and efficiency in the supply. EOQ is used the basis of setting up the cost of inventory  Where D is the demands of items annually - The setup cost - The cost of holding a single unit of an inventory, Reorder point A replenishment order is done after a reorder point is reached. Thus the reorder point can be calculated from the demand and the lead time  Where - the lead time, When the order is depleted beyond ROP, the order replenishment is made. During a smooth process the order quality can be assessed through a determination of the EOQ and the ROP frequently (Slack 2012). Planning the uncertainties would always be crucial considering the lead times, the demand changes and the safety of stocks (Slack 2012). ABC classification A Items: high quality control and accuracy in record keeping B Items: regular activity in the management of the business C Items: the control basically simple. The inventories are usually done on a larger preview. Quality Management Case study: Turnaround at the preston plant-408 A Turnaround at the preston plant-408 is basically one of the major achievements from quality management. The plant was purchased in 2000; its primary purpose was the manufacture of the coated papers which were majorly used in the ink jet printers. These were the major output of the plant. Early, the business are been experiencing a number of problems. The company had received complains from its major customer basically on the quality of the products. The first attempt to solve the problem was made in 1999 but was not successful. When the Rendall Corporation bought the company in 2000, a yearly loss of $2 million was being witnessed. More challenges were due as the major customer HP continued with the quality complain. Complains went to extend in which the company was told to make a fresh for the supply of the products. The major problem with the company was basically the magnitude at which complains from the HP was being handled. The customer complains were being handled with negligence until a new management was put in place. Basically the turnaround on the quality and the way the customers were being treated. Basically the following activities of quality management might have fuelled the company to a turnaround. The quality assurance, quality control and quality planning ensures the organization has the proper procedures that follow in managing the quality of the products. The quality management in the organization should be given a total independence from the project management (Muller 2011). The quality of a product is influenced by the quality of the production unit in the company. Therefore the quality assurance in the process would guarantee a more precise production process (Muller 2011). In a more complex production process the application of individual skills is essential. The accelerated system is essential in achieving a faster development in the quality of a product. To avoid wrong imposture of inappropriate systems, it would be essential to asses the importance of developing a proper system that would be viable. The process can be presented can be presented in a diagram as figure 1 Figure 2 Conclusion Operation management is a very crucial management knowledge which essential in managing organization to achieve its goals in a more effective manner. Customers satisfactory is basically the main objective of any organization, operation management therefore is suitable is accomplishing this. References Antony Wild, T. W, 2002, Best Practice in Inventory Management, Oxford: Butterworth- Heinemann. Best, K, 2006, Design management: managing design strategy, process and implementation, London: AVA Publishing. Colin Gray, W. H, Boston, 2009, Building Design Management: Chicago, Routledge. Grewal, S, 2010, Manufacturing Process Design and Costing: An Integrated Approach, New York: Springer. Howard S. Gitlow, R. O, 2004, Quality Management, New York: McGraw-Hill/Irwin. Kamauff, J. (2009). Manager's Guide to Operations Management. New York: McGraw- Hill Professional. Knapp, D, 2010, The ITSm Process Design Guide: Developing, Reengineering, and Improving Service Management, Michigan : J. Ross Publishing. Lee J. Krajewski, L. P. (2005). Operations management: processes and value chains. Boston: Pearson/Prentice Hall. Michael Lewis, N. S. (2003). Operations Management: Critical Perspectives on Business and Management. Vatican: Routledge. Muller, M, 2011, Essentials of Inventory Management, Chicago : AMACOM Div American Mgmt Assn. Nigel Slack, S. C. (2009). Operations and Process Management: Principles and Practice for Strategic Impact. London: Prentice Hall/Financial Times. Rose, K, 2005, Project Quality Management: Why, What And How, Michigan : J. Ross Publishing. Saxena, R. S, 2009, Inventory Management: Controlling in a Fluctuating Demand Environment, New Delhi: Global India Publications. Slack, N, Brandon-jones, A, 2012, Operation and Process Management,London: Pearson Education Limited Summers, D. C, 2008, Quality Management: Creating and Sustaining Organizational Effectiveness, London: Pearson/Prentice Hall. Toomey, J. W, 2000, Inventory Management: Principles, Concepts and Techniques, New York: Springer. Read More