Concepts of Operation Management - Essay Example

Running head: OPERATION MANAGEMENT Operation Management [Writer’s name] [Intuition’s name] Operation Management Introduction Production is the creation of goods and services. Operation management is the set of the activities that creates value in the form of goods and services by transforming inputs into output. (users.business.uconn.edu/raggarwal/myppts/Chapter%201) Concepts of Operation Management: 1. Supply Chain Management: Supply chain is a broad terms that encompass the management of order production, order placing, order accomplishment and distribution of goods, services or information (Nigel etal 2004 p13). As firms, banks and other organizations strive to increase their competitiveness via product customization, high quality, cost reduction and speed to market, they place added emphasis on the supply chain (Sunil 2006 p45). The HSBC supply chain business teams are paying attention to providing trade solutions for huge supply chains. These solutions are intended to add value to huge buyers/suppliers as well as their trading counterparties. With a blend of professional trade expertise and global contact, HSBC has the potential to develop and put into practice solutions across your supplier/buyer network. HSBC can make specially a solution to fulfill the customer’s requirement to the smallest detail. An extensive variety of solutions are available to the customers. Some of these include: Paperless Trade: HSBC is the leader in paperless trade technology. HSBC runs a complete paperless, open account proposal with a big buyer and suppliers that are Asian based (James 2005). This system is based on open communications infrastructure in order to support connectivity amid the buyer, suppliers, the bank as well as additional supply chain vendors for instance freight forwarders, customs bodies, etc. Document Imaging: This solution is simpler to put into practice; this involves a paper document presentation by means of suppliers to HSBC. HSBC will then scan the submitted documents into an image depository for viewing and acceptance via the buyer. Suppliers will have complete online right of entry to their purchase order particulars, transaction status as well as HSBC’s financing products. Branch office integration and purchase order reporting for the buyer are also achievable. ADCI: Automated Documentary credit issuance is a secure supply product for HSBC through value added network, encrypted e-mail or file transfer protocol. HSBC will accept customer’s PO and automatically pools the purchase order into documentary credit templates meant for automated issuance. To accomplish this, HSBC works closely with the client to create an orders database, specially designed around the requirements of the client as well as the processes. Finance: HSBC recognizes that trade finance is a significant part of any supply chain. They are already functioning with existing corporate clients to offer a wide range of pre- and post-shipment finance and guarantees products covering all their platforms along with documentary credit and open account-based trade. Integration and Reporting: HSBC has proficiency in providing modified back office integration to make certain the faultless two-way flow of trade information involving HSBC and the client's back office (Sunil 2006). Purchase order reporting is obtainable and can be modified the customer’s requirements. . Insourcing: If the customer is a large and guaranteed supplier, HSBC can organize and dispatch export documents on their behalf by using a blend of technology and expertise (Qingyu 2007), in this manner, allowing the customer to gain advantage from significant cost savings and increased resource flexibility. HSBC E-Commerce and Operating System HSBC is one of the largest banking and financial service organizations in the world .In 2004, HSBC launched an initiative to reduce the cost of supporting 300,000 desktops computers by 20 percent rigorous standardization. To help achieve this goal, the company deployed Microsoft system centre solutions as integral part of its new environment. Microsoft systems management server 2003 facilitates centralized software deployment ,roaming user desktop, and the ability to track software usage to the individual user, while operation manager 2005 provides the granular monitoring capabilities needed to ensure that the globally distributed servers computers supporting the new desktop environment remain up and running smoothly.(http://download.microsoft.com/download/8/4/c/84c9f6ff-af8b-4c39-8789-7dc50f0e0ee1/HSBC.doc). With their internet banking delivery channel, HSBC can offer a range of cash management solutions such as account information, international trade services, payment advising etc to meet customer’s local as well as global needs. Customer can access these services from their PC or laptop anywhere around the globe. With HSBC trade skill and global reach, their supply chain business teams can implement solutions across customer entire supplier/buyer network. Advantages by Using Supply Chain Management for HSBC. In order to gain advantage in this aggressive and emerging market, HSBC are following three strategies. Investing record amount of capital in building information architectures, technology infrastructures, and online banking products that will oppose the threat from non banks and deeply revolutionize the way banks service retail customer. Looking for associates in the online financial supply chain that connects clients, mediators, banks as well as third party service providers. These financial supply chains see to afford the pre-eminent cost and value to the end customer. Shifting from a mass production model to a mass customization model. The purpose is to capture customer loyalty by means of providing a constantly increasing number of consumers with the luxury of extra convenient, customer cantered services that until now have been obtainable only to top priority accounts. 2. Quality Management system: Heightened global competition has made its imperative for banks and organisations to deliver product-goods and services-of consistently high quality .The principles of quality management recognises that consistent product quality results from designing and executing business processes so as to remove error and waste (Qingyu 2007 p15). One does not sure quality just by testing the end product. Quality may be in the eyes of the beholder, but to create good or a service, operation managers must define what the beholder expects. Quality Management at HSBC. Managing Quality at HSBC is a very old trend. Quality Management at HSBC has very strong hold. Like many International banks and financial institutions, HSBC has always managed data and information; in simpler words, managing knowledge is its specialty. On the other hand, being proficient to get the most out of the hi-tech capabilities to capture, build up and share knowledge globally is only a small part of the dilemma. Valuable and intellectual functioning in up-to-the-minute knowledge enabled atmosphere is as much about the approach of workers and their managers as it is about software tools that recommend modern collaborative working. Knowledge management and total quality management at HSBC have not been successful to a great extent in the hard-edged world of monetary services, where the reason for any big business initiative has to be clear. This is why Knowledge management work in such companies can still be called revolutionary even though the values are no longer up to date (Kaoru 1985 p12). The longer KM practitioners are mostly incapable to establish apparent associations between flourishing knowledge management, improvements in presentation and total quality management at HSBC the bigger the problem that it gets tossed into the yesterday's trend bucket alongside, management by moving around, business-process re-engineering, total-quality management, investors in public and the education institute. In 2002, HSBC produced a modest dedicated knowledge management and total quality management at HSBC unit positioned within a newly re-group human resources function. Keep in mind, HSBC is a factual giant in the monetary -world after Citigroup, it employs over 250,000 people in 80 countries, with impressive and extremely successful an institution dating back over 150 years. Successes come through in the short span of time that the knowledge management and total quality management at HSBC unit was entirely upbeat and successively included the introduction and progress of a group-wide e-directory, originating the introduction of an electronic expertise-location tool (Juran etal 1993 p45). They also conducted the first ever knowledge audit, and introduced numerous knowledge-acquisition projects to play down the business risks and capture proficiency. All of which led to extensively raising the reputation of KM and TQM at HSBC issues. A team of committed and qualified HSBC representatives are available to give advice to existing in addition to possible customers on HSBC complete variety of facilities. Customers will profit from the banking hours as they are flexible, and they will also experience high quality banking. HSBC will be the first and foremost to put forward both corporate as well as retail banking services. It will offer corporate clients collecting/receiving and delivery services of trade furthermore they will also guarantee documents. It is in addition a one-stop-shop for personal banking customers to put forward applications for fresh accounts, loans, credit cards, cheque books, HSBC current accounts along with Charge Card in addition to additional products and services. Specialist opinion can be approved for investment, insurance, mortgage, offshore, and also business banking. An Internet booth is also offered for consumers as well as an ATM (The HSBC Group 2004). HSBC is the best at delivering its customers their product s, it believes in quality delivery as First and foremost, throughout service quality and relationship management. Cultural arrangement is vital: they know that their success is completely dependent on their clients' success which means giving the costumer quality delivery of products. their range of products and their ability to support product development sets us separately they are continually recruiting, monitoring, training, investing in their systems to make certain that they stay at the forefront of the game. The strategy of HSBC is to be the finest by being client-and relationship-focused in this way it gives the customer quality delivery. HSBC want to develop at a belligerent rate, however simply in the bounds of service delivery new as well as existing clients alike, along with focus on the long run (Hongkong and Shanghai Banking Corporation Limited 2005). HSBC has invested a great deal in computers, software meant for specialist and additional kind of automation. Nonetheless, at the same time as the technological revolution has altered the channel of delivery of the financial service industry, there is little sign that this investment has provided any sustained competitive advantage for the HSBC. Recommendations of Quality Management for HSBC: Pure Internet bank has limited number of customers. Bank has to expand its networks worldwide. As this industry requires personal contact as well for trust and security.2 Bank cannot provide many services and products. So bank has to start such products and services for one click solution. 3 Promotions and publicity is the central part of the business. Outsourcing this part can generate more effect on customers with same expenses.4 Increase these expense every year.5 Market survey and market research to get customers choices and requirements.6 Offer product according to different region's demand and also different services can be offered according to local people need and requirements.7 Start special type of such account. This account can act like debit account and credit account. By using such account customer can pay bill without insufficient money. This can promote clients and bank by getting interest on invested capital for customers. 8 Joint venture with small online banking players and get those customers and serve them with current service methods.9 Joint alliances with big companies for ATM usage.10 Gather data of the high-income people and try to contact those customers and negotiate deal with them by sending representative to their home on their convenience. 11 Negotiate terms and conditions with other companies where this bank can use its money at efficient way. Establish special such department, which specially negotiates rates with different companies by face-to-face contact. 12. Give several authorities to operational level managers to when dealing with clients or solving problems of customers so that customers can be satisfied with immediate effect. References Nigel Slack; Stuart Chambers; Robert Johnston 2004; Operations Management FT Prentice Hall; 4Rev Ed edition p1 Qingyu Zhang 2007; E-supply Chain Technologies and Management Idea Group Pub p15 http://download.microsoft.com/download/8/4/c/84c9f6ff-af8b-4c39-8789-7dc50f0e0ee1/HSBC.doc retrieved on 15 March 2007 users.business.uconn.edu/raggarwal/myppts/Chapter%201 retrieved on 15 March 2007 Sunil Chopra 2006; Supply Chain Management: Strategy, Planning, and Operation, Third Edition Prentice Hall, p45. Kaoru Ishikawa 1985, what is Total Quality Control? Prentice-Hall p12 M. Juran and Frank M. Gryna 1993; Quality Planning and Analysis, third edition. McGraw-Hill, p45 Hongkong and Shanghai Banking Corporation Limited (HSBC) (2005): The China Business Profile. Seventeenth edition, second quarter 2005. Hong Kong The HSBC Group 2004, A brief history James Capel 2005;Europe's last convergence play. London: HSBC. 12 p. Appendix Fig 1.Supply chain management System Fig 1.1 Financial Supply Chain management: Present and Future Fig 2. Quality management system. Fig 2.2 Quality management cycle Read More