Managing Business Activities to Achieve Results - Essay Example

Running Head: Managing Business Activities to Achieve Results Q1 Operations management involves designing, executing and controlling business operations that transform available resources into finished goods & services that are desirable. This function is therefore very crucial in the implementation organisational business strategy. The operations function disseminates ideas across the entire organisation on how best to improve business process with aim of achieving not just efficiency but also quality and cost cutting. As the new Operations Manager of the McLaren Technology Centre looking at strategies through which the plant can improve its operational efficiency and ultimately compete on the proposition of quality products. Two crucial functions in the McLaren’s business operations strategy are R&D and Operations. Whereas the operations function is concerned with the transformation of resources into products, the R&D function concerns itself with the innovation and development of new technologies/product lines. The two functions work hand in hand in delivering quality products that are relevant to the fast changing market demand. This is consistent with McLaren’s strategic plan of constantly introducing new models or derivatives every year. Q1.2 With the main objective of the operations function being creation and delivery of goods & services with customers’ needs in mind, it is important for McLaren to analyse whether it is consistently achieving the same. The Inputs-Outputs transformation model is a system approach for operations management. This system is important operations managers at McLaren considering that the organisation aims at attaining competitive advantage through yearly introduction of new models or derivatives in the market place. Operations has three components i.e. inputs, transformation process and outputs. The transformation process refers to all activities involved in the conversion of inputs through value addition into outputs that satisfy customer needs. There are three resource types that may be transformed in the process of operations. Materials include the rubber and other physical inputs, information may include the innovations availed through R&D and customers include but not limited to companies involved in formula one racing. Proper utilization of materials, information and understanding of customer needs therefore enables organisations effectively achieve their operational goals. McLaren has invested heavily in R&D and this makes it compete favourably among peers in the market place. Q1.3 One manufacturing strategy used to determine and manage interactions between different organisational systems is the process approach to quality. Processes refer to integrated sets of actions that utilize different types of resources in converting inputs into valuable outputs. Crucial in the process approach to quality is the ability by the organisation to identify and characterise each process. Universal process affecters for McLaren and other organisations include methods, human capital, instrumentation, materials, the environment and metrics of process measurement. Quality gateways can tremendously help map business process and ultimately achieve targeted business objectives. A company is a single entity comprising of interconnected parts all of which have direct or indirect value addition to the final product/serviced produced for the market. Quality gateways define just what the business is doing, those responsible and standards through which business success should be measured and judged. McLaren’s value proposition is offering the best quality of automobiles while caring for the environment. It will be important for the operations strategy deliver just this and constantly improve on the quality of finished products in order to standard out when it comes to customer judgement on the metric of quality. Q2 The acronym SMART is used in business settings particularly when setting objectives or long term business goals. The essence is to have business goals that are characteristically specific in nature, easily measurable, available in a cost effective manner, relevant to the business strategy and time-bound. SMART objectives are particularly applicable in the operations function of business and therefore as an operations manager for the McLaren Technology Centre to set business objectives that are SMART. My two objectives as an operations manager are as below. 1. To attain all the certifications for appropriate use of corporate social responsibility and environmental friendly business operations by the end of year 2016. 2. To attain a plant production capacity of 100,000 units per year by the end of 2017. In order to achieve these ambitious objectives it is important for McLaren to have a solid operations plan. One appropriate concept is management by objectives (MBO) which involves identifying business objectives and defining them clearly for both management and employees not only to understand but agree to work towards their attainment. The steps for attainment of the plan will include gathering of necessary data, planning for demand through evaluation of past, current, future performance measures, planning for supply. The fourth step will involve pre-S&OP Meeting in which demand and supply plans are reconciled and issues communicated for necessary adjustments. Finally the plan will be presented to the management through a presentation in an Executive S&OP Meeting for consideration and approval. As the operations manager I will have a role of directing the strategy, explaining to the senior management team about the need for the objectives and leading the entire operations function in working towards meeting the objectives. Q2.3 in order to effectively the set objectives it is particularly important for a company to have in place systems that help in managing operations and measuring success. Two important systems for McLaren include ERP and CRM. Through implementation of an ERP the company ensures a smooth flow of information, centralisation and therefore closer control of activities such as purchasing and expenditure. Allow departments in the organisation are integrated and automated enabling timely access to information regardless of the location and ultimately delivering the agility for the organisation to swiftly respond to changes in customer needs and market conditions. CRM on the other hand will enable McLaren to effectively manage customer experiences and maintain customer information that is very important in today’s competitive world of business. The two systems will therefore tremendously support the company in achieving its set business objectives by availing real-time information that inform necessary strategic decisions. As a leading manufacturer of formula-one cars, McLaren has a huge responsibility to ensure its leadership position and therefore it requires up to date management operations strategy. Q2.4 Management of projects is very important in the realization of McLaren business strategies and objectives. Clear project planning and management will help the company is focussed on achievement of strategy and cost effective in its operations. The company will also be able to learn from mistakes made and make better decisions in future plans. Project management aims at McLaren include analysing existing opportunities, identifying goals, exploring available options, selecting the best out of the many options and having a very detailed plan of how to use the available resources effectively in realizing project objectives. It is not enough to have projects and objectives; the same should be managed and monitored sufficiently so as not lose track. One very important tool for the management and scheduling of complex projects is Critical Path Analysis (CPA/M). The CPM model facilitates the planning of project tasks as well as preparation of schedules and planning of necessary resources for all tasks. The tool also allows project managers to monitor achievement of project progress and take remedial actions where need be so as to ensure everything remains on course. Using the tool involves listing all the project activities and plotting them or representing them diagrammatically. The aim is perform different activities at different times and complimentarily so as to attain the best results in the ultimate. Q3.1 Quality refers the standard of a product or service as measured against other of the same kind. It therefore measures the degree of an organisation’s excellence in terms of product/service standard. The concept of quality management involves the need to continuously improve products, services and projects. The objective is to ensure that customer requirements are satisfactorily met. There are three important processes relevant to quality management; quality planning is concerned with the identification of relevant standards and how they can be met. Quality assurance executes quality activities in the course of production and quality control concerns itself with monitoring deliverables so as to ensure quality standards are complied to. McLaren has established itself as a high standard racing car manufacturer and therefore must continuously implement the quality management system so as to constantly exceed customer expectations and maintain its market leadership position. Benefits of implementing a quality management system for McLaren include enhanced customer satisfaction; prevention of costs associated with production errors, management responsibility to avail necessary resources and continued product quality improvement. The different costs include the cost of quality (COQ) which involves the sum total of all costs associated with quality such as appraisal, failure and prevention costs. The Cost of Poor Quality (COPQ), address costs associated with failing to meet expectations of customers while the Cost of Doing Nothing Different (CODND) refers to costs associated with failing to change standard practices even when they have been proved dysfunctional. Q3.2, Q 3.3 & Q 3.4 Total Quality Management (TQM) refers a management approach that focuses on customer satisfaction. The system ensures all members of the organisation take part in the process of improving products and services as well as organisational culture. In other words all employees of the company are involved continuous improvement. The approach takes advantage of information, business strategy and effective organisational communication to embed the culture of quality in all organisational activities. Using the TQM approach, the organisation integrates elements such customer focus to determine quality goals and total employee involvement in working towards the same common goals. The approach centres on process and integrates all organisational functions into a horizontal process that interconnects all of them. Other beneficial elements of TQM include a strategic and systematic approach to quality management, continual improvement of processes so as to attain the desired standards, fact-based decision making that ensures organisational performance is measured and clear communication that motivates teams apart from supporting effective change management. For McLaren I would suggest two improvements. Firstly the company should involve customers at all levels of strategy implementation and secondly conducting business in an environmental friendly manner. Implication of the suggested improvements include earning a legacy as a customer intimate and environmental caring organisations. While gaining the trust of customers the company will at the same time be growing its public image as one that cares for the environment in its manufacturing processes. As an operations manager I will lead the organisation’s operations and manufacturing practices in complying to international quality standards and setting new standards of business. Q4.1 & Q 4.2 An important aspect of any company’s business operations is ensuring workplace safety and health. It is therefore very important that McLaren sufficiently controls workplace risks so as to ensure employees are in an environment is enabling to high performance. This can be done through proactive identification possible harms, assessment of the possible harm and implementation of reasonable mitigating steps. A five step risk assessment includes identification of hazardous in the environment, deciding on the people and just how they may be harmed by the same and thirdly evaluation of the possible risks for purposes of taking appropriate precautions. The fourth step involves recording the findings of the assessment and finally reviewing the assessment and making necessary updates. The Health and Safety at Work etc Act 1974 requires organisations in the UK to ensure employees operate in safe workplaces. A number of other parliament acts place the health and safety of employees as well as the environment and organisations are obliged to comply. Employees come into actual situations such as manufacturing and testing of the cars and this has significant risks thus observing workplace safety and health standards are very important. As the operations manager in the McLaren Technology Centre I will be on the forefront when it comes to ensuring employee safety as well as manufacturing practices that care about environmental impact. Q4.3 & Q 4.4 As the new operations manager of the MTC, apart from leading and aligning the operations strategy with the company’s overall corporate strategy, I will also be charged with ensuring work place health and safety. My first step will involve reviewing the company’s health and safety policies to ensure they are effective and compliant with legislations. There are a number of procedures for reviewing and managing workplace health and safety that I will follow in doing the same. The goal is to ensure the company has a clear, effective and legally compliant occupational safety policy. The first step will be to understand the company’s workplace health policy and commitment and its level of compliance with the requirements of Section 20 of the Safety, Health and Welfare at Work Act of 2005. Step two involves planning, and is concerned with the development of capabilities and support instruments that ensure achievement of the policies objectives. I will also review the policy on its support mechanisms; effective implementation of an organisational healthy policy requires sufficient staff involvement and effective communication that is sustained. This should ensure employees as well as the management to make decisions that are informed. The fourth evaluation step will involve measurement of organisational performance in mitigating risks and ensuring employees are and finally auditing & reviewing performance. Hazard is anything that posses a healthy risk when one is exposed to it. Examples include falling objects in the workplace, buildings that have cracks and not well illuminated. Read More