How Effectively Processes Deliver Company's Performance Goals - Essay Example

?Analyze an Organization of Your Choice and Produce a Report Critically analyze how effectively the systems and processes being deployed within the organization have aligned to deliver the organization’s performance objectives: Business operations can be defined as the function which plans and estimates the day to day activities within an organization. Operations refer to the most important functions in an organization, as it manages all the activities in the organization. Ideally, business operations ensure the following factors. All internal groups are integrated into the same plan with well prescribed roles and responsibilities All internal operating groups perform together as one unit, to make sure operational integrity, development of business, risk management and resource management, allocation of resources, and overall the finest practices. Successful communication among other functional departments within the company. Participating in business planning for developing strategies. Working within the constraints of an integrated budget, and combining all fiscal practices, while following other recognized policies, procedures and controls. “While operations are generally well understood and structured in most large organizations, business operations in many small to medium sized companies tend to be less clear. It is not unusual to see functional lines or boundaries blur together or; departmental responsibility and accountability shared by many people within one organization” (Defining Business Operations within the Organization 2006, p. 2). The systems and processes play a very significant role in accomplishing the goals and objectives of the organization. The organizations emphasize in their reports about how much they rely on the operation and systems. The operations of business changes from organization to organization. It concentrates on the volume and character of the business. It depends, whether the company focuses on products or services, and whether the operation is small or large. Here we have accepted SAMBRO International as our choice for the organization analysis. “Sambro International Ltd is a private company categorized under Hobby, Toy, and Game Shops and located in Manchester, United Kingdom” (Sambro International Limited 2012). It has established as one of the major companies in toy manufacturing in Britain. It is a privately owned manufacturing firm, founded in 1996. The company has two different sections. 1) New World Toys 2) Stocklot. New World Toys produces and distributes their elite certified goods, and their own brand goods. Stocklot is the company which deals in clearaning stock in European and UK countries, through multiple retail channels. Stocklot mainly focuses on the trading of big brands, and children's character merchandise at very low prices. The company keeps growing with its innovative operation technologies and use of advanced systems, to develop production processes. The processes and systems are executed to attain strategic goals of the industry. The mainly significant thing is that they should make sure that these processes are in line with the envisaged strategic goals. Emphasis on design, execution, and measure are necessary for the improvement of business operations and processes. The cycle of this process is a never ending process and an ever lasting process, as it aims at continuous improvement. Certain steps and taken in designing and executing the right technology based machineries for document supervision, project application, integration, and workflows, to assist process administration and alter process. These are the theories followed by the Sambro International for their uninterrupted flow of production. “One frequent question is how operations differ from project managers. The main difference is that, project managers are focus on the success of their projects, while the operational wing focuses on the success of the office” (Barry 2010). The Role of Operations in Business: The role of operations within an organization is unavoidable. The major responsibilities are: Operational Change agent Budgetary People Leadership These major responsibilities are briefly elaborated as follows, Operational: The group for operational drives, perfect implementation across all actions. The operation group is in charge of allocating capital, managing and securing freelancers, functioning with HR and recruiters, to carry on with new employees. Resolving the disputes between the departments is also handled by the operation group in the organization. Change Agent: The organization consists of people from different countries and different culture, and the operations group has to force them for a cultural and behavioral change. They work under the favorable, to confront the whole thing and work to change the status of the company. “The label “Change Agent” is often accompanied by misunderstanding, cynicism and stereotyping. Managers, employees, and HR professionals alike have questioned the value of this role of operation in their organization. However, as organizations of all kinds face unrelenting changes in their environment, the need for individuals who are capable of turning strategy into reality has created a new legitimacy for the change agent role, which is often located within the Human Resource function” (What is the Change Agent Role? n.d., p. 1). Efficiency is their major focus; hence they always try to get better ways to get the things done. Budgetary: The fiscal function and performance of the company is managed by the operations group. They develop the budget, to maintain the strategic business goals, along with the finance team. People: The Human Resource activities are also rely on the operations team, as they have to manage, and correct people at the correct place. They want to ensure the availability of workers in free pool, that is, what is reserved for unexpected work loads. Every employee’s roles and responsibility is clearly defined by the operation wing. Leadership: The operation team must take the leadership of all the activities of the organization. They must make suggestions when critical business decision is to be taken. The team has the responsibility to resolve all the issues within the organization. “Leadership skills and communication skills are integral for an Operations Manager, to be successful in planning and implementing long term and short term goals for the company. An Operations Manager has the role of discussing and explaining the development plan in detail to the top brass management of a company” (OpsMan 2010). 2. Suggest the ways in which the process might be better managed, to improve the delivery of those objectives: “In order to survive and succeed, firms need to set strategic directions, establish goals, execute decisions, and monitor their state and behavior, as they move towards their goal. Once a firm becomes large enough, that a single manager cannot sense the firm’s current state, and cannot control its behavior alone, the firm must use performance measurement and control systems to replace the eyes and ears of the beleaguered manager. Over the past few decades, firms have used information technology to provide this “sense and control” capability. Several dozens of vendors provide business performance measurement information technology solutions” (Kellen 2003). The Sambro International Ltd. can adopt the following techniques for achieving its objectives, and for the smooth functioning of its operations. Quality Management: Over the past few years, many firms have adopt various quality programs, such as Six Sigma, Quality circles, Total Quality Management (TQM), The Baldridge National Quality Program, and European Foundation Quality Management (EFQM) to improve the quality of the manufacturing and service offerings. The central objective of all of these programs is, measuring the business performance. Sambro International Ltd. is continuously increasing the quality standards of toy industry, whether it's with their own products, or with the toys they supply around the world. Economic Value Added: It is an overall evaluation of financial performance; EVA is equally a precise performance measure, and the root for a larger performance measurement structure. EVA is a financial performance metric that is most openly connected to the formation of investor value, over time. “EVA is net operating profit, less an appropriate charge, for the opportunity cost of all capital invested in an enterprise. Mathematically it is: EVA = (Net Operating Profit after Taxes) – (Capital X Cost of Capital)” (Kellen 2003). It is planned to give managers better information and inspiration to formulate decisions, so that it will produce the greatest shareholder capital. The EVA structure is naturally used as a manager motivation plan. Using EVA only can be the basis for managers to spend in less risky, cost-reducing activities, rather than in expansion activities, and as a wholesome financial model, EVA cannot be as a medium in articulating a plan. Activity-Based Costing:   Activity-based costing (ABC) was introduced to give a better insight into how overhead costs should be paid to individual goods or customers. In general, businesses make easy adjustments to assign operating cost; costs that do not precisely represent how the cost or product utilize those overhead actions. Using this approach, companies gain sufficient knowledge in profitable and profitless activities based on a customer, or from a product point of view. ABC is a technique of estimating which of the firm’s activities produce revenues in deducting costs, and as a consequence, present eager insight into what really provide value for customers. Companies with large expenses may profit from an ABC measurement scheme. Corporate Governance: “Corporate Governance' is the system by which an organization is directed and controlled at its most senior levels, in order to achieve its objectives and meet the necessary standards of accountability, probity, and openness. The requirement for improved corporate governance has increased significantly in recent years, following various reports, including the Turnbull Report” (Assurance Framework Relating to Risk Management n.d.). The Corporate Governance includes the following:   Defining plans, policies and setting objectives, The placement of suitable staff, to meet the objectives and in evaluating the progress towards those objectives. The setting of objectives for the allocation of resources. The employees of the Sambro Ltd. need to be convinced that the processes and procedures are in position which is efficient and necessary in successively running the business. Management By Objectives: It is a process of setting the objectives for an organization, so that the managers and employees accept the objectives, and moreover they learn to know what they should do in an organization. The benefits are, Employees understand what the managers expect from them. Develops participative decision making skills. Evaluation of actual performance with the set standards. Fulfillment of duties and responsibilities at the right time. Management Information System: Information is very essential in an organization. It helps in building a sound relationship between the managers and the employees. Management Information System provides the data that are required to control the organization efficiently and effectively. Therefore, it involves people, information and technology. "MIS provides several benefits to the business organization: the means of effective and efficient coordination between departments; quick and reliable referencing; access to relevant data and documents; use of less labour; improvement in organizational and departmental techniques; management of day-to-day activities (as accounts, stock control, payroll, etc.); day-to-day assistance in a department and closer contact with the rest of the world” (A Comprehensive Course in Principles of Business n.d., p. 100). 3. The Desired Outputs of Operations: The outputs are the results of certain inputs. The operations in business aim at some specific results, and they are Cost Effectiveness: Cost effectiveness is one of the main, desired outputs of operation. The budget is done by the operation wing, with the help of finance managers. Maximum utilization of available resources is the theory for the operational group, as they go for every chance to cut down the cost. The efficiency of the operations group can be measured by the profit the company gets. Quality: The quality of the product or service is the axis for any company for its survival and existence in the market for a longer time. The processes start from the selecting of raw materials to the packing of finished goods, and they heavily rely on the operations in the firm. The necessary quality control measures are defined by the operations group, and they have the responsibility to deliver quality products and services. Delivery Speed: The delivery speed of finished goods to the stores will directly affect the inventory control system of the company. The operation team has to find appropriate logistics to maximize the delivery speed. New product introduction is also facilitated by the operations. The market experiences high competition now a day and the delay in the introduction of new products or services affect the stability and growth of the company. Delivery Flexibility: The delivery of finished goods and services should vary according to the demand for the products. Delivery flexibility refers to the ability to control the delivery according to the situations. Delivery flexibility will make the stock keepers relax, and so they will be loyal customers of the products and services. Greenness: The new revolution about greenness is also applicable to the business organizations. The operational wing has the responsibility to maintain greenness. The neatness of the surroundings and the adoption of eco friendly processes are the key to greenness. Delivery Reliability: The Delivery Reliability refers to the credibility of the company, in relation with the delivery of goods and services on time. Whether the business runs on credit or cash, the delivery of finished goods should be on time. Coping with Changes in Demand: The operation group should always have an eye on the present market scenario. They must be able to predict or for see the demand for products, and make changes in planning accordingly. “Operations management is also challenging. Promoting the creativity which will allow organizations to respond to so many changes is becoming the prime task of operations managers” (Slack et al. n.d.). 4. Use the theoretical ideas or models that we examine in the unit to systematically review the issues and choices faced by the ‘operations manager’ as they design, operate and improve their processes. The main function of an operations manager is to plan and organize every activity connected to the production of goods and services. “Aspects of operations management, then, include products or services to emphasize; facility size and location with respect to customers and suppliers; marketing strategies to attract clients/customers; techniques and equipments to use, to make the goods, or to provide the services; work force management and training; and measurements of quality assurance” (Operations Management 2012). Operations managers introduces new ideas and techniques to raise productivity, and decrease costs, adopt flexibility to face frequent changing of customer needs, improve the product quality, and provide good customer service. There are various issues faced by the operations manager in making new designs and processes. Issues Related to System Design: This issue begins with the development of the product. It is possible only by carefully analyzing the needs and tastes of the customers. Sambro Ltd. has to make a study of the tastes of children, and design the products accordingly. For this, they have to keep a keen watch on the television industry to design the comic characters that will have a good response among children’s. “Product design is a critical task because it determines the characteristics and features of the product, as well as how the product functions. Product design determines a product's cost and quality, as well as its features and performances. These are important factors on which customers make purchasing decisions. In recent years, new design models such as Design for Manufacturing and Assembly (DFMA) have been implemented to improve product quality and lower costs” (Operations Management 2012). Product design explains how the creation is done. The procedure design decision has two main parts; they are the scale economy component and the technical component. The technical component contains selecting tools and choosing a series for a variety of phases of operational production. The scale economy component includes, applying the correct amount of tools to create the organization's labor force more creative. Issues Related to Facility Design: They should design the product in such a way that is convenient to the customers. Legal conditions, government policies, transportation cost are involved in this. According to the managing director, Nikki Samuels says that “value for money concept and ability to be flexible in production has ensured that our pocket money ranges and cost effective craft and stationery have sold well. We provide top brands to fit any budget which pleases both the retail trade and the consumer. As we have an experienced and imaginative design team, we can produce new concepts to fit any license. We are delighted with the new Disney properties" (Sambro Take on Disney 2008). Issues Related to Planning the System: It includes changing the system according to the changing environment. It is a long term decision making process by carefully analyzing the changes in new technology. “Sambro is producing TWF thumb masks and wrestling rings, which are due to go on sale shortly in Asda, Toys R Us and The Entertainer in the UK” (People Moves: Film Roman Names New Studio Head 1986). Long-range decisions could contain the number of services necessary to meet customer requirements, or studying how technical changes might influence the techniques used to produce goods and services. The time horizon for long-term planning differs with the organization, and it is reliant on both difficulty and size of the proposed changes. Typically, however, enduring planning may include developing training programs, determining work force size, determining the amount of material to order on an aggregate basis, working with suppliers to improve product quality, and improving delivery systems. Short-term scheduling, conversely, is concerned with the production planning for particular job orders. Issues Related to Managing the System: Managing the system relates to working with individuals to promote participation and develop managerial performance. Participative teamwork and management are vital to successful operations, as are training, leadership and culture. Additionally, material management and quality are two important areas of concern. “Sambro International ltd continues to expand they employ more than 60 people, working on everything from designing the well defined packaging to operating, about “300,000 sq.ft. of warehouse space” (About Sambro International 2008). Material management contains decisions about the control, procurement, handling, distribution of materials and storage. Material management has become more significant because, in many organizations, the costs of purchased materials include excess of the whole production cost. Questions about amounts and timing of material orders require to be addressed here additionally, when industries weigh the qualities of different suppliers. Conclusion: The operation management includes the input such as management, customer, information and other assets. The management and the workers are involved to produce output. They should set standards and find out the difference between the set standard with the actual. The systems and process should be managed in such way that it should contribute to the achievement of the organization. Reference List About Sambro International. 2008. Sambro International. 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