BUS 202 International Business Operations- Productivity and Profitabil

Answer

Identify and describe why Operations Management has increased in importance in recent times

Introduction:

The overarching term operation management is the multi-disciplinary fields that keep a constant control over the entire aspects of organizational operations. The organizational value of a company is not only to provide superior quality of products and services. At the same time, the business experts have to control on the supply of products as well as services in order to grab the attention of customers. While purchasing a particular product customer should never wait for a long time while receiving the services. Therefore, the operation managers have to play a major role in delivering the entire products within stipulated time to the customers for gaining their trust and reliability. As a result, the impact of operation management in the further progress of business has become an emerging topic based on which the success of an organization is immensely dependent.

1: Importance of benefits of operation management in decision making: 

Improve the productivity and profitability of business:

Operation management is the systematic chain where large number of employees is appointed within delivery process (Dumas et al. 2013). The entire structure of operation management is highly dependent on several divisions. The divisions include product design team, process design team, quality management team, logistics and shipping department (Slack 2015). After designing a particular product, the business experts never allow the employees to deliver the products to the customers. Before reaching the entire product to the doorstep of customers the organization has check the delivery process by maintaining a proper operation chain to judge its quality. Therefore, the probability of risk factors decreases. On the other, the customers get least opportunity make any complaint regarding the product or service quality. Automatically the productivity increases. The success of a business organization is highly dependent on the productivity (Krajewski, Ritzman and Malhotra 2013). The revenue would be increased only when the organization would be able to increase the level of productivity. The entire process of operation management is the systematic chain where the employees are appointed in delivering the products and services within time.

Maintain a balance between customers’ supply and demand:

It has already been stated that providing quality of products and services is not the only way out for gaining organizational image and reputation. The customers while using the product expect an effective service system from the company so that they do not have to wait to receive their products for a long time. The operation division of Woolworths is very much active as well as systematic (Chon and Yu 2012). The entire chain of operation management from product designing to product shipping of Woolworths is effective in making communication with each other. In addition, the operation managers of this organization have appointed large number of employees in this specific division. As a result, the customers get quick services. One of the most recognizable points in operation process of Woolworths is the existence of quality management department. Before delivering the products to customers’ the quality management team intends recheck the reliability of products (Becker, Kugeler and Rosemann 2013). Automatically, the service providers receive limited number of complaints from the customers.

Make awareness on public regarding the quality control system:

Quality control system is otherwise named as refurbishment department. Samsung has primary gained immense recognition and appreciation from the customers due to the establishment of refurbishment department. This particular department can be considered as one of the most effective division that can resolve any kind of complaints coming from the customers (Dumas et al. 2013). It has been observed that after purchasing a particular product the customers has faced major issues while using it. Therefore, the recognizable company such Samsung has opened a refurbishment department within quality control system. The primary aim of this particular department is to make an effective investigation regarding the product issue that a specific customer has highlighted. If the product issue becomes genuine, this particular department takes the responsibility of resolving the issue in free of cost. Therefore, the customers do not have to show their dissatisfaction if any kind of issue arises in using products (Jeston and Nelis 2014). Therefore, without having the presence of operation management the customers’ complaints and issues cannot be resolved.

2: Impact of operation management on business progress: 

Maintain the product delivery within time:

Product designing, product packaging and quality checking are not the only responsibility of operation management (Agus and Shukri Hajinoor 2012). An efficient operation manager has to take the responsibility of supplying the products to customers as well. However, large number of small and medium enterprises is existing in Australia who does not have the department of operation management due to economic constraints (Myers 2013). It has been observed that due to the lack of operation management the customers of SMEs fail to get services within proper time. Automatically the customers tend to show their reluctance in purchasing necessary products and services for the customers. That is the reason most of the multinational companies tend to implement operation management at their workplace.

Handles any kind of customers’ complaints more systematically and efficiently:

The primary responsibility of quality control system is not only to check the product quality before product delivery. The specific department aims to handle any kind of customers’ complaints. Numerous promotional activities are one of the most effective reasons that highly influence the consumer behavior. Being influenced by promotion, the customers tend to purchase the products (Schaper et al. 2014). If the customers’ expectation does not match with the product potentiality the customers tend to make complaints. Quality control team is the concerned department among the entire operation management that keeps handles the customers’ complaints from every perspective.

Keep a constant data regarding the customers’ feedback after using the service:

Operation managers intend to appoint some of the concerned employees who collect necessary feedback from the customers regarding product as well as service quality. Based on the data collection from the customers the operation managers tend to form new business strategy and policy (Agus and Shukri Hajinoor 2012). After launching a new product in the market, the employees of Woolworths tend to collect necessary response from the customers. Based on that particular response the operation management focuses to reform new business strategy and policy. Therefore, the existence of operation management within a business organization is important not only to deliver the product within time but also to gather necessary response from the customers to reform business strategy and policy.

3: Major factors that highly affects in making an effective operation management at the workplace: 

Lack of economic strength for implementing sufficient workforce in operation process:

It is undeniable that the existence of operation management within the business process has become one of the most integral parts of business. Some of the major factors are there that constantly make a major hindrance for implementing operation management at the workplace. As already stated this particular department needs sufficient number of employees for controlling the entire operation process (Chen et al. 2012). In order to hire sufficient number of employees at the workplace an organization should have sufficient financial strength. Most of the small and medium enterprises fail to appoint sufficient number of employees. As a result, the business experts fail to establish this particular department.

Lack of using advanced technology:

The operation management needs to implement advancement of technology for decreasing operation cost and saving time at the same time. In order to implement advancement of technology the business experts as well as employees need to have proper skill and competency in operating technological devices. Due to the lack of proper training the employees fail to control any sudden technological barriers (Weske 2012). This kind of crisis ultimately demolishes the rhythmic flow of business. At the same time, while implementing advanced technology at the workplace, business organizations need economic strength as well. Therefore, the two primary factors such as lack of proper technological skill and lack of economic strength are the two primary factors that affects in establishing operation management (Galindo and Batta 2013).

Lack of skill and competency:

While associating with the operation management the managers and the employees both should have professional skill and competency. If an individual employee does not have professional training, this individual fails to fulfill the needs and demands of customers (Galindo and Batta 2013). However, it has been observed in several times that large number of business employees are deprived of getting a proper training and development course. In this kind of situation, they fail to maintain a proper balance supply delivering the products to the appropriate destination (Deshpande et al. 2012). Business experts have to face innumerable difficulties in gaining the brand identity and image.

Recommendations: 

Use the advancement of technology:

It is undeniable that operation management needs to implement advancement of technology with the help of which the employees can reduce their operation cost. While designing the product and maintaining product packaging the organization needs and use advanced technology rather than enforcing large number of work force (Wong et al. 2012). At the same time, while transporting the products and services the advancement of technology can help the operation managers to keep a constant update regarding the product delivery system.

For an example, with the help of global positioning system, the business managers can get an update where the transport is exactly located and how much time the suppliers need to reach the product to proper destination. This particular update can help the operation managers immensely to get knowledge about product delivery process (Zailani et al. 2012). Based on that, the managers can give necessary feedback to the customers as well. Therefore, the advancement of technology ultimately reduces operation cost, labor cost and time as well. As a result, the organization is successful to enhance the financial growth. Economic strength is highly important for running the entire business process successfully in the market.

Implement sufficient workforce for maintaining a balance between the customers’ demand and supply:

With the dynamic change of business environment the current needs and demands of customers are changing gradually. The emergence of operation management has been established for fulfilling some of the major perspectives. People belonging to various geographical boundaries tend to use the products and services of a particular organization (Deshpande et al. 2012). Therefore, the business experts have to appoint sufficient workforce at the workplace so that customers needs and demands can be fulfilled. On the other hand, the entire operation management is possessed with several sub departments. In order to run every single department of operation management equally the human resource department has to appoint sufficient number of workforce.

Providing effective training and development session:

It has been observed that large number of business organizations have faced major issue in running an operation management department effectively due to the inefficiency of employees. While delivering the products within time, the concerned employees associated with supply chain management process need to have proper professional training and development course (Schönsleben 2016). However, it has been noticed that employees due to the lack of communication skill fail to communicate with the customers properly before delivering the products due to their religious barrier, cultural barrier and psychological barriers. In this kind of situation, the business experts can provide an effective training and development session to those employees who are associated with operation management so that those employees can enhance their professional skill and competency.

Conclusion: 

This particular study has provided in-depth overview about the importance of operation management for running a particular business organization effectively in the market. With the presence of an efficient operation manager a particular organization tend to deliver the products and services by maintaining a systematic business strategy. From designing to product delivery the operation managers tend to involve sufficient workforce. At the same time, after delivering the products collection of customers’ feedback is highly important. An efficient operation manager takes the major responsibility in keeping entire control over the business process from product designing to product delivery.   

Reference List:

Agus, A. and Shukri Hajinoor, M., 2012. Lean production supply chain management as driver towards enhancing product quality and business performance: Case study of manufacturing companies in Malaysia. International Journal of Quality & Reliability Management, 29(1), pp.92-121.

Becker, J., Kugeler, M. and Rosemann, M. eds., 2013. Process management: a guide for the design of business processes. Springer Science & Business Media.

Chen, C.C., Shih, H.S., Shyur, H.J. and Wu, K.S., 2012. A business strategy selection of green supply chain management via an analytic network process. Computers & Mathematics with Applications, 64(8), pp.2544-2557.

Chon, K.S. and Yu, L., 2012. The international hospitality business: Management and operations. Routledge.

Deshpande, P.M. and Srinivasan, S., International Business Machines Corporation, 2012. Automatically processing dynamic business rules in a content management system. U.S. Patent 8,140,362.

Dumas, M., La Rosa, M., Mendling, J. and Reijers, H.A., 2013. Fundamentals of business process management (Vol. 1, p. 2). Heidelberg: Springer.

Galindo, G. and Batta, R., 2013. Review of recent developments in OR/MS research in disaster operations management. European Journal of Operational Research, 230(2), pp.201-211.

Jeston, J. and Nelis, J., 2014. Business process management. Routledge.

Krajewski, L.J., Ritzman, L.P. and Malhotra, M.K., 2013. Operations management: Processes and supply chains (Vol. 1). New York: Pearson.

Myers, M.D., 2013. Qualitative research in business and management. Sage.

Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small business.

Schönsleben, P., 2016. Integral logistics management: operations and supply chain management within and across companies. CRC Press.

Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.

Weske, M., 2012. Business process management architectures. In Business Process Management (pp. 333-371). Springer Berlin Heidelberg.

Wong, C.W., Lai, K.H., Shang, K.C., Lu, C.S. and Leung, T.K.P., 2012. Green operations and the moderating role of environmental management capability of suppliers on manufacturing firm performance. International Journal of Production Economics, 140(1), pp.283-294

Zailani, S., Jeyaraman, K., Vengadasan, G. and Premkumar, R., 2012. Sustainable supply chain management (SSCM) in Malaysia: A survey. International Journal of Production Economics, 140(1), pp.330-340.