Operations Management Definition - Essay Example

Defining “Operations Management” and the application of “planning & control” techniques” enter the Number or College Name of Professor 23rd January, 2012. 1. Introduction Human beings cannot live life alone without performing any activities. We need to eat, drink, study and live our lives. Time plays an important role in it. The activities cannot be stopped. In our everyday lives, we are bound to perform different activities and tasks throughout the day. These activities are important for us to perform for the attainment of different things like money, satisfaction etc. For performing the activities it is necessary to do them in an organized manner. We have to abide by the system and set of laws and also time. Similarly, businesses have to perform certain activities for completion of the manufacturing of goods and services. The activities which are required for the completion of or in other words the manufacturing of goods and services have to get completed efficiently. These activities can be observed as processes and the way we are managing the quality and planning for it is included in project and operations management. This assignment explores what are the projects and operations, roles and responsibilities of operations manager and the application of planning and controlling techniques. 2. Defining “Operations Management”. Project: According to Westland (n.d., pp. 1), project is defined as to perform certain activities for the completion or execution of work which is planned to get delivered within a specific time. Projects have specific characteristics. For example, they are unique i.e. every project is different from the other. Another example is that there is certain amount of money in which they have to be completed in a specific time. Operations: According to Shim and Siegel (1999, pp.2), operations can be defined as the labor undertaken for making goods and services available. They have to be completed in time set by the customer and the manufacturer. Project and Operations Management According to Shim and Siegel (1999, pp.2), project and operations management is the management of all the processes or in other words, activities which are associated to the manufacturing of goods and services. According to Westland (n.d., pp.1), the project can be completed with the help of certain apparatus and dexterity. With the help of talented people and good management project can be completed with success. With the help of dexterity, cleverness and skill the risks associated with in a project can be reduced. Experienced people are hired in management for this purpose. The tools or apparatus used to complete a project related to building a house may include pens, gauges, nails, wood, budgeting, CAD software and checklists etc. Methods or processes used for completing a project are divided in different and small tasks. Roles and responsibilities of an operations manager: In my opinion, the operations manager has to ensure that the course of different activities contributes to the triumphant completion of the project and this leads to the production of goods and services. According to Kubba (2010, pp. 457- 460), delay and inefficiency becomes a part of the projects due to lack of planning and poor communication becoming a part of it. The indirect and direct responsibilities of the operations manager include communication as a very important part of it and can be regarded as a fundamental activity. Becker, Kugler and Rosemann (2003, pp. 1-6) discussed the Porter’s value chain in their famous book. According to that in a business setup there are three types of actions. All three of them are interconnected and they are nothing if they stand unaccompanied. The first one is the primary activity, second is the supporting services or activities and the third is the corporate activity. Primary activities generate worth or price and hence they are important for the economic side of the company. Supporting services have no relationship with finished products but without them the primary activities cannot be performed. Corporate activities add in to the creation of cost, value or worth in the company. Direct responsibilities of the operations manager includes taking the decision or making the choices, communication, the pledge of providing quality process, quantity and quality assurance the supply of resources, also dealing with the human resource department, asset management and cost management. For example, in an IT or software house or animation productions the responsibility of the operations manager is to design the software or animation, manage the software or animation and improve the software or animation (Shim and Siegel, 1999, pp. 4-6). Broad roles and responsibilities of the operations management include ensuring that the tools used to produce goods and services are of good eminence and acceptable standard. The operations manager has to make sure that he works within the financial plan, for this purpose he has to coordinate with the finance department. He is responsible for making operation policy in that he makes use of the available resources for the completion of the project (Shim and Siegel, 1999, pp. 4-6). The operations managers have to work with the supporting departments of the organization like finance, IT, HR etc. For example he works with the IT department in order to have the best possible software for keeping confidential data in. Another example is that he works with the HR department for recruiting the best people he requires in there. Operations manager has to do planning or development and controlling or scheming of different processes or activities in order to provide the services and goods to the clientele. Process planning like management is an art. It is to carry out a reasonable model of tasks or errands with creativity. In every business, big or small, there are some tasks to be done. These tasks are not done merely by doing or completing activities without any plan. Planning is the most important part in running any business. When it comes to planning, a systematic method or model should be adopted by the project team to get the things completed and done in time. Planning makes it possible to go about things in a clearer manner and to get the desired results. Becker, Kugler and Rosemann (2003, pp. 1-6) state that changes in the economic environment make the organization think about ways to remain stable in the market. A process is the series of activities or tricks which are time bound. A business process or method is a particular process which is governed by the objectives of a company and the business environment. Processes that come in any association or company are different in its kind. The recognition of the important and unimportant processes is very important chore when it comes to process planning. According to Kanabar and Warburton (2008 pp. 5-6), the process planning refines the goals of the projects and makes it methodical. According to Meredith (2009, pp.188-189) the process planning is significant for worth and value improvement. It is the process planning which makes the development and progression of a good plan possible. 3. The application of “planning & control” techniques Management in any form is of momentous importance when it comes to businesses. Management is important in keeping the activities and tasks going in order, keeping the customers satisfied by providing timely services and goods, are important to keep the businesses running in profit. Management is a complex activity. Before setting up any business, the person who sets up that should have ample amount of management knowledge, experience and top of it ‘skill, ability or talent’ for interacting with people. In my opinion, management is a skill and is therefore regarded as an art. As the expression of different artists in same artwork is different, similarly management skills differ from person to person. According to the Business Dictionary (2012), management includes preparation or planning, scheming or controlling, monitoring or checking etc of the resources. There are different activities which an organization has to perform. These activities may be divided into planning, controlling and monitoring. Therefore management is necessary in order to make these activities function in order. According to the Business Dictionary, planning is the essential supervision function which is concerned with the development of plans for the maximization of profits by using the available resources (Planning, 2012). Controlling is to preserve and uphold a specific standard and take the right action at the right time to make things better (Controlling, 2012). Monitoring is to ensure that the things are done as planned and everything is going in time to achieve the set targets (Monitoring, 2012). Nature of Planning and Control in Barclays Bank Barclays Bank is an international financial institution or bank. Barclays Bank is involved in management of assets, credit cards, banking and investment banking at large. It is the third largest group in banking and finance business. It operates nationally and internationally and has offices in all the major countries of the world (Padmalatha, 2011, pp.559 - 565). The banking is carried out by online banking, telephone banking, ATM machines, branch network and good management (Padmalatha, 2011, pp.559 - 565). Barclays Bank has state of the art and high tech facilities to ensure that their customers get the best possible services. They design services according to the requirement of all the age groups of people including kids, teenagers, and students, middle-aged and old aged people (Padmalatha, 2011, pp. 563). The direct responsibilities of the operations manager of the Barclays Bank includes choice making, communiqué, process assurance, quantity and class assurance, also dealing with the human resource department, asset management and cost management. The operations manager has to plan and control the “processes” involved in the production of goods and services. Therefore, he has to plan as it is the most important factor of the banking Industry. Banking industry is full of competition. One bank introduces a policy or beneficial schemes then all the others also try to be in the race by launching even more attractive schemes. It is not possible for them to live without getting into the competition. The banks when offer a service then they have to make sure that the quality of the procedure, development or processes are managed well by the operation management. Moreover, planning and controlling are the essential management utility therefore its inclusion is mandatory for every bank. For example, they offer different kinds of account types, loans and saving schemes. People can make BBA (Barclays Bank Account), YPA (Young Persons Account), BPA (Barclays plus Account) and CCA (Cash Card Account), Student Account, Student Barclays Card, Graduate Package, and Higher Education Account. Barclays also provides loan options for its appreciated customers which are collectively called Barclays Personal Loan comprising of Barclays Secured Loans and Barclays Unsecured Personal Loans, further it provides Career Development Loan and Professional Studies Loan. Barclays Bank also provides different services on its Online Banking, Mortgage, Open Plan, Protection and Pensions, Travel Services, Platinum Banking and Saving Services (Padmalatha, 2011, pp. 563). If we consider only the Barclays Bank Account then we can understand the importance of planning and control in it. This is the central type of account of Barclays Bank which can be set up by you going to their bank and also over the internet. This basic account can be promoted on any service required by the customers. A cheque book is issued when this type of account is set up (Padmalatha, 2011, pp.560). The person who sets up this account needs his account to be managed and it is the duty of the bank to manage it as well. For this purpose the operations management takes care of that the bank has all the required details of the customer. The information provided by the client is verified as well. The role or responsibility of operations management includes keeping the record of the information of transactions made by the customers and providing the customer with the best quality of management. 4. Conclusion Operations Management engages the activities, actions or tricks which are used for the production of goods and services, these activities are known as processes. The roles and responsibilities of the operations management include corresponding, scheduling or planning, quality and controlling. Planning and controlling are necessary or mandatory for the profit maximization of any business. To understand the planning and controlling, I used the example of Barclays Banks because finance cannot be sliced away from our lives and it is a part of our daily routine as well. As Brigham and Houston (2012, pp.4-6) state that human life cannot get free of money related stuff as daily transactions are a part of our lives. My definition of operations management With the information gathered, I conclude that operations management is to plan, co-ordinate, organize and control the procedure and process which is used for the production of goods and services and to ensure the upholding of a specific standard for them. Key Planning and Control tasks The key planning and controlling tasks involved in operations of the Barclays bank is complex in nature. They include to plan the budget for different activities, to plan different polices according to the current economic time and for anticipating the future, development of the back up plans and policies, the management needs to control the behavior of staff with the customers and that the customer satisfaction is maintained by providing timely services and also to maintain a record of transactions. 5. References Becker, J., Kugeler, M., Rosemann, M., 2003. Process management: a guide for the design of business processes, Springer. Brigham, E., F., Houston, J., F., 2012. Fundamentals of financial management, Cengage Learning. Business Dictionary, 2012. The Business Dictionary. [online] Available at < http://www.businessdictionary.com/definition/financial-management.html > [Accessed 22 Jan 2012]. Controlling, 2012. The Business Dictionary. [online] Available at < http://www.businessdictionary.com/definition/controlling.html > [Accessed 22 Jan 2012]. Kanabar, V., Warburton, R., D., H., 2008. MBA Fundamentals Project Management”, Kaplan Publishing. Kubba, S., 2010. Green Construction Project Management and Cost Oversight, Taylor & Francis. Meredith, S., 2009. Operations Management for MBAs, Wiley, Vol. 4. Monitoring, 2012. The Business Dictionary. [online] Available at < http://www.businessdictionary.com/definition/monitoring.html > [Accessed 22 Jan 2012]. Planning, 2012. The Business Dictionary. [online] Available at < http://www.businessdictionary.com/definition/planning.html > [Accessed 22 Jan 2012]. Padmalatha, S., 2011. Management of banking and financial services, Pearson Education India. Shim, J., K., Siegel. J., G., 1999. Operations management, U.S., Barron Educational Series, Inc. Westland, J., (n.d). Project Management Guidebook, Method123. Read More