Operations Management Report

Final report

Operations management is an activity related to the development, use and improvement of production systems, on the basis of which the main products or services of the company are produced.

The main role in ensuring the competitiveness of the company is played by operational management, because it provides maximum effective use of materials, human resources, equipment and production facilities in the process of manufacturing products or providing services and managing them. (McNamara, 2013)

As an example, to illustrate the operating system we can take the airline, which includes a number of components, like weather forecasting, airline capacity planning, pilots and stewardess qualification and more. All these operations are interconnected, formalized, carried out by a single collective and subordinated to a single goal - maximizing the effectiveness of the company's operations.

Process strategy is an organization’s approach to transform resources into goods and services. It is the pattern of decisions made in managing processes so that they will achieve their competitive priorities. It involves the use of an organization’s resources to provide something of value. Major process decisions include: process structure; customer involvement; resource flexibility; capital intensity. (Jaisa, 2013)

Process strategy generates additional input and helps build commitment to the end plan. It is essential to involve employees in the planning of strategy and direction for the organization. Employees will provide input to the strategic planning process through feedback surveys, focus groups, meetings, etc. regarding their ideas for organizational direction, etc. It is followed by the top down communication. Senior management will share the strategic plan with employees. They will communicate to all employees how their engagement will help ensure success in the execution of these strategies. (Stanleigh,2015)

Six Sigma is a method that provides organizations tools to improve the capability of their business processes. This increase in performance and decrease in process variation lead to defect reduction and improvement in profits, employee morale, and quality of products or services. (Kubiak, Benbow, 2009)

It is claimed that the Six Sigma programme brings competitive advantages to companies that implement it. The main functionality of Six Sigma projects is to improve operational effectiveness and efficiency. A continual improvement of operational effectiveness and efficiency is vital in order to avoid competitive disadvantage, however it is all but straightforward to convert the results into sustainable profitability. It is more about staying in the race than about getting ahead. In order to use Six Sigma strategically, a company should do more than just conduct Six Sigma projects by the book, but develop the competencies that the programme can bring to an organization. These competencies – disciplined and effective problem solving and decision behavior – have the potential to be a source of competitive advantage, when integrated with a company's strategy. (De Mast, 2007)

For example, if the firm's addition of a third shift to its current two-shift plan still does not produce enough output, and subcontracting arrangements cannot be made, one feasible alternative is to add capital equipment and modify the layout of the plant (long-term actions). It may even be desirable to add additional plant space or to construct a new facility (long-term alternatives).

The theory of constraints, developed by Dr. Eliyahu Moshe Goldratt in the 1980s, identifies factors preventing your company from reaching its goals. The theory measures operational performance in key areas and uses the results to streamline operations. While another constraint always replaces the one you identify and remove, repeated applications of the theory can result in continuous improvement, increasing efficiency and allowing your company to achieve higher profits.

For example, the theory of constraints assumes that your business performance can't improve because of some specific problems or inefficiencies that are holding you back. You can find the constraints by looking for undesirable effects. When you make changes to remove the main constraint, your performance improves but another main constraint limits further improvement. (Markgraf, 2009)

Lean system, often simply "lean", is a systematic method for waste minimization within a manufacturing system without sacrificing productivity. Lean also takes into account waste created through overburden and waste created through unevenness in workloads. Working from the perspective of the client who consumes a product or service, "value" is any action or process that a customer would be willing to pay for. (Womack, Jones, 1990)

Just-in-time manufacturing has the capacity, when properly adapted to the organization, to strengthen the organization’s competitiveness in the marketplace substantially by reducing wastes and improving product quality and efficiency of production. (Yasuhiro, 1993)

In order to define the scope of a project, it is necessary to first establish the project objectives. The objective of a project may be to produce a new product, create a new service to provide within the organization, or develop a new bit of software. There are many numbers of objectives that could be central to a given project - and it is the role of the project manager to see that their team or contractors deliver a result that meets the specified functions and features. (Waterson, 2012)

Selecting a project manager is a very important step as even the qualities of this particular individual can have a direct impact on the outcome of the engagement. After all, many qualified people can do the mechanics of project management, but not everyone is a project leader. A person may have the best logical and analytical mind in the group and yet lack the qualities that lead a project to a successful conclusion. Because the project manager must interact with many people (such as sponsors, senior management, client, and team members), it is important that that person have good “people skills.” (Collanty, 2010)

Choosing the correct people for a project is almost as important as the project itself. Without a knowledgeable team, the project will be much more difficult. Team development includes developing individual and group competencies to enhance project performance. By coming together as a true team, the project will be more successful. Significant improvements in team morale will cause an increase in team mentality. (Mathis, 2004)

Organizational structures are one of the core elements that fall into consideration when measuring the influence of environmental factors in project management: they can seriously affect resource availability and determine the style of project management. Also it is important for any growing company to provide guidance and clarity on specific human resources issues, such as managerial authority. Small-business owners should begin thinking about a formal structure early in the growth stage of their business. (Ingram, 2017)