Information and Operation Management - Essay Example

Question The Operations Manager in Context a) Explain the broad role and responsibilities of “Operations” within an organisation b) Focusing specifically on case materials, compare and contrast the activities and objectives of the three differing functional activities of: (1) production operations management; (2) supply chain management; (3) Business information management c) Ian Harnett, Director of Purchasing at JLR recently said “We use British-based suppliers where possible and as long as they’ re competitive and can deliver to our rigorous quality cost and delivery metrics’. Discuss the term Strategic Resonance in relation to this message The company operates in automotive industry, whereas its major operations relate to vehicle design, engineering, and manufacturing. Thus, the core operations of JLR are performed in automobile manufacturing and assembly plants, whereas are developed, produced and assembled vehicle parts. These operations are performed at three vehicle manufacturing plants and two design and engineering centres. In addition to design and manufacturing operations, the company performs many other operations across business functions, such as supply chain management, financial management, HR management, IT management, inbound and outbound logistics, distribution, marketing and sales, CSR, customer service, etc. Production operations management related to planning and management of key production manufacturing activities. In case of JLR these activities include everything from the moment of transforming available raw materials (input) to ready products (outputs). Quality of the products produced is one of the most critical factors in production operations. As the company’s management is focused on sustainable production and operations, it is worth to mention that in addition to managing manufacturing process, the company manages the environmental impact caused in result of JLR’s operations. In addition to the above mentioned activities of production operations management at JLR, the company aims to develop new products and find new sustainable product solutions. Therefore, the key objectives of production operations management at JLR include the following: ensuring the availability of development and manufacturing capacity, product design and manufacturing, tests, assembly, control and improvement of the quality level of the final product, etc. Supply chain management implies different functions and activities from those defined in production operations. Supply chain includes the following main activities: materials management, inventory management, scheduling and releasing, logistics, order management, physical distribution, and purchasing/procurement. These functions are all crucial for JLR’s business and that is why it requires responsible approach. The key objectives that managers pursue in supply chain management include the following: establishing and developing long-term relationships with partners/suppliers, improving lead time in order to benefit the supply chain at different levels, managing inventory to reduce costs and increase space utilisation, effective management of material and information flows, vehicle distribution, risk management, etc. Business information management is also important aspect in JLR’s business as it drives both strategic and operational excellence in the company. Without relevant information and relevant analytics/forecasts the company would eventually fail producing either too much or not enough vehicles. The major functions of business information managers would be evaluation of demand, analysing key market trends, getting of a real-time insight into customers’ preferences and decision-making process. Business information management enable firm to adapt business processes and meet consumer’s demand for specific type/model of vehicle. Therefore, the key objectives are: ability to respond to market conditions and demand, increased customer satisfaction, optimisation of manufacturing decisions. In relation to Ian Harnett’s citation related to British-based suppliers, it is possible to illustrate the concept of strategic resonance. The company seeks for strategic fit between its supplier’s capabilities and its own needs. JLR has specific requirements and expectations to its British-based suppliers in terms of quality and delivery metrics, as the JLR’s own strategy and operations capabilities depend on these factors. Therefore, Ian Harnett stresses the importance of strategic fit, whereas firm seek for strategic fit with suppliers. Question 2: Sustainable Operations Management a) Describe in specific detail, the core sustainable management objectives of JLR’s UK operations b) Critically evaluate JLR’s approach to responsible management. You should aim to explore organisational, economic and social sustainability The company places sustainable business development at the core of its operations, whereas social and environmental responsibility are integral elements of the corporate strategy. The company’s core sustainable management objectives are set around the major strategic goal to develop and produce sustainable products, which enable to reduce environmental impacts throughout the full cycle of the vehicles. In order to achieve this goal, the company has set a number of core sustainable management objectives for the JLR’s UK operations aiming to achieve these by 2020. One of the primary objectives set by the company is to deliver sustainable infrastructure and operations. For this purpose, JLR management has developed building requirements for the new build and refurbished projects. Second important objective is to reduce CO2 emissions from the UK vehicle manufacturing operations. The company has set a plan to reduce CO2 per vehicle to 0.84 tonnes but it has already reduced it to 0.73 due to various efforts related to improvements of efficient energy use. Also, the company is working on development of a long-term energy strategy devoted to renewable energy, energy efficiency and substitution. Another important objective set by the company is reduction of water use in manufacturing process. While the company initially set a plan to reduce water use to 3.12 m2 per vehicle produced, it has cut already water use to 2.57 m2. One more important objective related to waste elimination and improved resource efficiency. The company set objective to reduce waste to landfill from manufacturing processes and reach zero waste to landfill in result of product development operations. Both these objectives are achieved. One more important objective that was set by the company is to reduce the environmental impact of both inbound and outbound logistics operations across the globe. The company declared that this objective also has been achieved already. In addition to sustainable operations, the company’s management recognises the necessity to focus on people who work for the company. Therefore, some of the people-oriented sustainable objectives include the following: employee engagement, training on sustainability, promotion of gender and ethnic diversity at work, offering training and development opportunities, ensuring healthy and safe working conditions. Also, the company sets various social objectives such as building long-term education partnerships in local communities. Thus, the company aims to engage approximately 200,000 people in UK for participating in education programmes every year. In 2013, the company has attracted 328,000 young people for its education programs. As the above listed objectives indicate, the JLR’s approach to responsible management and corporate social responsibility is mainly focused on environmental footprint of the company. From organisational sustainability perspective, the company managers quite well. It has clearly defined corporate strategy, strategic priorities with regard to sustainability that are attached to specific targets. However, the company fails to provide an overview of key challenges, threats and risks for the upcoming 3-5 years, which might indicate on too positive reporting practice. Economic dimension of sustainability relates to the impact of organisation on economic performance of the business and its stakeholders. In its sustainability reports, the JLR’s management hardly concerns economic indicators, as this information is disclosed in corporate financial statements. However, from a responsible management approach, major economic impacts of the business on different stakeholders and throughout society would be a good practice. Therefore, JLR’s management needs to disclose economic aspects related not only to direct economic performance, but also indirect economic impacts. Social dimension of sustainability implies the impacts of business on the social systems within which the company operates. In its reports and on the website the company highlights some positive impacts on general society and employees, revealing practices on workforce diversity promotion and employment/career opportunities. While there is not much information devoted to human rights issues, labor practices, etc., JLR is recognised to be a responsible employer, caring about its people, its customers, and involved communities. Recently, the company has gained Queens Elizabeth award for sustainable business achievement, which also indicated on the responsible management approach and focus on CSR practices. While the company’s major focus is made on environmental issues and less focus on social aspects, taking into consideration the nature of the business and its potential environmental impact it is possible to conclude that the management has prioritised sustainable objectives in the most effective and beneficial way. Read More