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Proven manager of staff and resources with an excellent customer service ethos.
Experienced in roles with added responsibility and able to provide many services including general maintenance tasks.
Thorough understanding of health and safety, security procedures and company regulations, and first aid trained.
A focused and energetic manager who creates and maintains strong working relationships.
Computer literate to a high standard and competent with many software packages and databases.
Qualified business and budget management abilities, Capital Expenditure Workflow.
Diligent and experienced trainer.
Excellent planning and organisational skills, with pragmatic decision making capabilities.
From Tool Maker, to Royal Warden, Store Assistant, to Council Worker, Oil Field to Production Operative.
August 1981 - January 2014
Name: Maurice Derrett
Degree: FdA Leadership and Management
Year: 2 Semester: B
Module Code: BUS2007M
Module Title: Operations Management
Module Leader: Rob Garner
Assignment Title: Operations Management Report
Word limit: 3000 words
Operations Management Essay:
You are required to analyse an organisation of your choice and to produce a report, of approximately 3000 words, which:
Critically analyses how effectively the systems and processes are being deployed within the organisation have been aligned to deliver the organisation’s performance objectives, suggests ways in which the process might be better managed to improve the delivery of those objectives.
Identify the desired outputs of, and what constitutes effective performance for, the organisation.
Use the theoretical ideas or models that we examine in the module to systematically review the issues and choices faced by the ‘operations manager’ as they design, operate and improve their processes.
1. Executive Summary
3. Operative Strategy: The Role of the Operations Functions
4. Operations Performance: Its Objectives
5. Service Performance Objectives
6. Supply Chain Management
7. Process Design and Planning
8. Supply Chain Management
ii) Importance of feasibility studies
10. Inventory Management
11. Capacity Planning.
12. Control Systems.
vi) Poka Yoke
vii) Five S’s
13. Health and Safety
Definition: Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. Operations management is concerned with converting materials and labour into goods and services as efficiently as possible to maximize the profit of an organization.
The responsibility for all these resources which go in to the operation’s function falls on the shoulders of the operations manager. The operations manager will carry different names depending on which type of business they are employed in, for example in a factory it could be works manager, a supermarket would have a store manger, or even a public house would have a landlord (Slack, et al, 2007).
I worked for twenty years in a factory manufacturing springs, producing springs for all trades (for eight years I was shop floor foreman), so I can recognise the principles around operations management inside a busy working environment. Whilst the works manager had the last say in all that went on, it was my job to implement his wishes during the working day.
I have joined forces with my wife to start up our own little “cottage industry” manufacturing a fish product for sale to the supermarket, fish and chip shops and hotels. This product will be sustainable, tasty and high in omega-3 and totally bone free.
From the word cottage you will be able to see that at this moment it is planed to be only a small business enterprise (you don’t know about the future), but all management ideals will be adhered to as if it was a big company, so the principles of operation management will stay the same regardless of size. The only different aspect to a big company is the fact that a lot of the work done will be done by the operations manager, which could turn out to be confusing when you have roles that overlap (Slack, et al, 2007).
My wife was very lucky in being allowed to develop her idea for this product at the North Atlantic Fisheries College and she used this opportunity to research and design her new product, for she believes this will fill a niche in the market.
We both feel that our society needs a product that people can enjoy to eat and be of a health value as well. We have both become infuriated by the fish trade and the way they deal with the fish products that are common to all homes, the waste of good fish and the depletion of our now at risk fish stocks.
One main problem with the fish sold today is additives to the fish to make it last longer, look nicer and most common of all retain water. This is done by adding a substance known as sodium tripolyphosphate to the raw fish before they are packed and frozen.
Our position in the fish market will be one of an individualist nature; you may say an artisan manufacture. We can see this product doing well, so we will be working to capacity and this is down to the special qualities plus unique nature of the product.
The term Operations Strategy means the way you set up your business to be run on a day to day and end to end basis, it is this strategy which enables (or not) the profitable delivery of your product/service propositions to your market, but it is not a ‘mere’ support function. So when we look at our product we will have to be careful in our attempts to seek contracts that are realistic and achievable delivering on time. This has to be both efficient and effective within a balanced economy.
All operations strategies need to be designed to deliver the corporate and market strategy, it’s through its execution by people and organisations that deem if it’s a success or not. There is a clear ‘form follows function’ principal flowing from operations strategy through to organisational structure and operations. The main function of our operational process will be produce our new product to a set of ideals, the product must be well priced and produced sustainably, the price should be around £5.00 a Kilo, taste good, no bones easy and quick to cook.
When starting out in a new business venture as is the case here a business plan has to be made and followed. A business plan should include an assessment of your production and operations strategy. Operations have a steep learning curve, but many successful companies, such as Wal-Mart, have grown by leveraging their operational infrastructure. (About.com 2012)
THE CHALLENGES - The Operations Management environment
Long-term Direction & Capability - Market Disrupting
Supply Chain Management
Improving Operational Performance
Exceeding Customer Expectations
Beating the competition
Maintaining Operational Performance
Weekly / Monthly Planning
Solving Problems - Proactive
Delivering against Targets
Managing Day-to-Day Operations
Managing People, Processes and Systems
Daily / Weekly Decision Making
Fire-Fighting - Reactive
A campaign to highlight our product through marketing will be a must, you could use a pull marketing strategy with some push marketing if needed. Doing this will help in ensuring that the whole of the tangible product is produced without waste or spoilage.
We have to take in to account our three dimensions of operation strategy, these are as follows:
a) Our output volume – what amount will be produced?
We hope to be able to produce around 75kilos a day.
b) Will there be any sort of variety with the product?
We will look at producing one product to start with.
c) How do we deal with the level of demand – what variation will there be?
Once word of our product starts to filter through the different establishments we anticipate that demand will increase by a significant amount.
d) How can you keep this organisation strategy supported, what drives it?
The whole emphasis’ behind this strategy is based on our passion for a really healthy, sustainable, tasty, bone free fish products that are cheap and easily available to one and all.
This strategy is based on knowledge gain over years of real life experience; it has been shaped not one of a theoretical positioning.
Balance should be found between 4 perspectives to fulfil the mission of any public organization:
• Who are our clients?
• How do we create value for our clients?
• At which processes must we excel to satisfy clients while meeting budgetary constraints?
Learning, innovation, growth perspective
• How do we enable ourselves to grow and change, meeting ongoing demands?
• How did we add value for our clients while controlling costs?
Operations Performance “its objectives”
One major operations objective, especially where companies compete with prices is 'cost'. Low price is a universal attractive objective to customers, which can be achieved by producing goods at lower costs.
Quality reduces costs and increases dependability
High quality means the fewer mistakes made by each process in the operation, the less time will be needed to correct the mistakes and the less confusion and irritation will be spread. And also the high quality can influences customer satisfaction and leads to stable and efficient processes.
The Juran philosophy:
• Pursue quality on two levels:
1. The mission of the firm as a whole is to achieve high product quality.
2. The mission of each individual department is to achieve high production quality (North Lindsey 2012).
Quality Trilogy –
1. Quality planning: Process of preparing to meet quality goals. Involves understanding customer needs and developing product features.
2. Quality control: Process of meeting quality goals during operations. Control parameters. Measuring the deviation and taking action.
3. Quality improvement: Process for breaking through to unprecedented levels of performance. Identify areas of improvement and get the right people to bring about the change (North Lindsey 2012).
Speed supports Flexibility
As above I said speed means the elapsed time between customers requesting products or services and then receive them. Generally, people prefer faster delivery or service. For example, TNT Express' customers are willing to pay more for the services. Speed also reduces inventories and reduces risk; on the other hand, it means if the speed is faster, the products or the services will be accepted easier, the flexibility will strengthen.
Dependability reduce Cost
Ineffective use of time will translate into extra cost. Dependability does not spring any unwelcome surprises on their internal customers. They can be relied on to deliver exactly as planned. This eliminates wasteful disruption and allows the other micro operations to operate efficiently.
Flexibility supports cost and maintains dependability.
Flexibility adapts to changing circumstances quickly and without disrupting the rest of the operation. It can also change over between tasks quickly and without wasting time and capacity. It helps to keep the operation on schedule when unexpected events disrupt the operation's plans.
Cost is affected by the other performance objectives
Except the four objectives I mentioned above, speed also reduces the level of in-process inventory between micro operations, as well as reducing administrative overheads. All of these objectives have several internal effects, but each of them affects cost (Slack, et al., 2007).
The use of a Poke Yoke system cuts down mistakes to virtually nothing, Poke yoke is a process improvement tool, designed to enable employees and organisations to implement mistake and error proofing techniques on the shopfloor that can then be applied to any operation or piece of equipment.
Reliability: to be responsible to perform a service well and correctly.
Responsiveness: To respond quickly and willingly to help customers and give good service to their requests.
Assurance: The ability of an employee to have a good knowledge of their job, be courteous and exude confidence.
Empathy: To have good communication skills, know their feelings, to be understanding and caring and to give your undivided attention at all times.
(Parasauraman, 1985) (Zeitham, 1996).
Tangibles: This means your material assets.
Supply Chain Management:
What is supply chain management?
Supply chain management (SCM) is the combination of art and science that goes into improving the way your company finds the raw components it needs to make a product or service and deliver it to customers. The following are five basic components of SCM.
i) Plan: This is the strategic portion of SCM. Companies need a strategy for managing all the resources that go toward meeting customer demand for their product or service. A big piece of SCM planning is developing a set of metrics to monitor the supply chain so that it is efficient, costs less and delivers high quality and value to customers.
ii) Source: Next, companies must choose suppliers to deliver the goods and services they need to create their product. Therefore, supply chain managers must develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships. And then, SCM managers can put together processes for managing their goods and services inventory, including receiving and verifying shipments, transferring them to the manufacturing facilities and authorizing supplier payments.
iii) Make: This is the manufacturing step. Supply chain managers schedule the activities necessary for production, testing, packaging and preparation for delivery. This is the most metric-intensive portion of the supply chain—one where companies are able to measure quality levels, production output and worker productivity.
iv) Deliver: This is the part that many SCM insiders refer to as logistics, where companies coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments.
v) Return: This can be a problematic part of the supply chain for many companies. Supply chain planners have to create a responsive and flexible network for receiving defective and excess products back from their customers and supporting customers who have problems with delivered products.
Before we enter into our business venture, a feasibility study will have to be done.
Definition of Feasibility Studies:
A feasibility study looks at the viability of an idea with an emphasis on identifying potential problems and attempts to answer one main question: Will the idea work and should you proceed with it?
Before you begin writing your business plan you need to identify how, where, and to whom you intend to sell a service or product. You also need to assess your competition and figure out how much money you need to start your business and keep it running until it is established.
Feasibility studies address things like where and how the business will operate. They provide in-depth details about the business to determine if and how it can succeed, and serve as a valuable tool for developing a winning business plan.
Why Are Feasibility Studies so Important?
The information you gather and present in your feasibility study will help you:
• List in detail all the things you need to make the business work;
• Identify logistical and other business-related problems and solutions;
• Develop marketing strategies to convince a bank or investor that your business is worth considering as an investment; and
• Serve as a solid foundation for developing your business plan.
Even if you have a great business idea you still have to find a cost-effective way to market and sell your products and services. This is especially important for store-front retail businesses where location could make or break your business.
For example, most commercial space leases place restrictions on businesses that can have a dramatic impact on income. A lease may limit business hours/days, parking spaces, restrict the product or service you can offer, and in some cases, even limit the number of customers a business can receive each day.
Process Design and planning:
This is the process of taking a material and taking it to a finished product, in our case it would be raw fish being taken through its stages to the finished product. When we talk about the process design we mean what the customers needs in the finished product, what shape or form it must be and what is required from us when we come to produce it.
Process improvement: Kaizen
• Japanese for gradual and orderly continuous improvement over a long period of time with minimum financial investment, and with participation by everyone in the organization.
• Improvement in all areas of business serves to enhance quality of the firm.
• Three things required for successful kaizen program: operating practices, total involvement, and training.
• Operating practices expose opportunities for improvement. JIT reveals waste and inefficiency as well as poor quality.
• Every employee strives for improvement. Top management views improvement as part of strategy and supports it. Middle management can implement top management’s improvement goals by establishing, maintaining, and upgrading operating standards. Workers can engage through suggestions, small group activity.
• Middle management can help create conducive environment for improvement by improving cooperation amongst departments, and by making employees conscious of their responsibilities for improvement.
• Supervisors can direct their attention more on improvement than supervision, which will facilitate communication (North Lindsey 2012).
• The Deming cycle: Originally developed by Walter Shewart, but renamed in 1950s because Deming promoted it extensively.
(North Lindsey 2012)
Plan – Study the current system; identifying problems; testing theories of causes; and developing solutions.
Do – Plan is implemented on a trial basis. Data collected and documented.
Study – Determine whether the trial plan is working correctly by evaluating the results.
Act – Improvements are standardized and final plan is implemented.
Variation of PDSA cycle: FADE – Focus, Analyze, Develop, Execute cycle!
Juran’s breakthrough sequence:
1. Proof of the need
2. Project identification
3. Organization for breakthrough – two paths identified: symptom to cause (diagnostic) and cause to remedy (remedial) paths.
4. Diagnostic journey
5. Remedial journey
6. Holding the gains. (North Lindsey)
Inventory management is when you store your items between the point of supply and the point of demand. If you take an organisation, you may find it has an inventory that is very important to its needs and has another which plays only a small part in its day to day running.
You can take a hospital for an example, where sterilising materials is an important part to their inventory, but in a motor factory this would only be of a minor need.
There are four types of inventory management, these are.
i) Buffer: this is the traditional way of doing inventory management; in this case it would be assumed that when each stage of manufacture has been completed, the item will be placed in an inventory and it will continue doing this. On the next stage it will take the item out of inventory in to the next procedure, this in turn will go through to the next buffer inventory.
ii) Pipeline: This is when you have goods in an inventory waiting in for dispatch and it takes time for goods to reach the demand point from the supply area. This is when you have a pipeline ready at your point of dispatch to the time it reaches the retailer.
iii) Cycle: This when you have a continues cycle being used, most commonly used by bakeries.
iv) Anticipatory: This is all about anticipation, there are companies which depend on different times of the year to sell their goods and this form of inventory management helps with seasonal demand, chocolate eggs at Easter, decorations at Christmas are just two examples.
After discussions, we have decided that the best inventory management system for our business is the Just in Time and Kanban systems.
The just in time method we are using is quite a radical idea and this is still the case after it was adapted by some big businesses twenty five years ago.
In an ever changing world, there have been an increase in the number of strategies being brought to the manufacturing world and these are being adopted by the big companies. These strategies include Demand, Chase, Level, Lead, Lag and Match. If you use these you still have to remember the incorporate them in to the following three important sections.
1. Determine Service Level Requirements:
The first step in the capacity planning process is to categorize the work done by systems and to quantify users’ expectations for how that work gets done.
2. Analyze Current Capacity:
Next, the current capacity of the system must be analyzed to determine how it is meeting the needs of the users.
3. Planning for the future:
Finally, using forecasts of future business activity, future system requirements are determined. Implementing the required changes in system configuration will ensure that sufficient capacity will be available to maintain service levels, even as circumstances change in the future.
Kaizen: Kaizen is a system that involves every employee - from upper management to the cleaning crew. Everyone is encouraged to come up with small improvement suggestions on a regular basis. This is not a once a month or once a year activity. It is continuous. Japanese companies, such as Toyota and Canon, a total of 60 to 70 suggestions per employee per year are written down, shared and implemented. (Businessdictionary 2012)
Material Requirements Planning (MRP): Material Requirements Planning (MRP) is a production planning and inventory control system; it is concerned with both production scheduling and inventory control. This is a material control system that attempts to keep adequate inventory levels to assure that required materials are available when needed. MRP is applicable in situations of multiple items with complex bills of materials; it is not useful for job shops or for continuous processes that are tightly linked. (Businessdictionary 2012)
ERP: ERP (enterprise resource planning) is an industry term for the broad set of activities that helps a business manages the important parts of its business. The information made available through an ERP system provides visibility for key performance indicators (KPIs) required for meeting corporate objectives. Its software applications can be used to manage product planning, parts purchasing, inventories, interacting with suppliers, providing customer service, and tracking orders, it can also include application modules for the finance and human resources aspects of a business. (Businessdictionary 2012)
MUDA: Muda means waste, where waste is any activity that does not add value. Reducing or eliminating muda is, of course, one of the fundamental objectives of any quality-oriented person. (Businessdictionary)
Kanban: If you wan to use JIT then a means by which you can get it is Kanban. This is a signalling system, most often by the use of cards, which will start the supply or production of an item. (Businessdictionary 2012)
Poke Yoke: Poka-Yoke is fool proofing, which is the basis of the Zero Quality Control (ZQC) approach, which is a technique for avoiding and eliminating mistakes. Generally this technique is used in manufacturing process but has much wider uses, such as; offices - order and invoice processing, hospitals - drug dispensing, aircraft maintenance - particularly with processes having the potential of inducing catastrophic in-service failures. (Businessdictionary 2012)
Five S’s: Japanese names for cleanup activities in a workplace (1) Seiri: clearly separate necessary things from the unnecessary ones, and discard the latter. (2) Seiton: organize neatly so that whatever is needed is quickly located. (3) Seiso: cleanup, maintain tidiness and cleanliness. (4) Seiketsu: help workers to maintain the previous 3 S.' (5) Shitsuke: help workers to make a habit of them. (Businessdictionary 2012)
Health and Safety:
It is important to set up health and safety measures in our company, so we will have to do a risk assessment on the processes we will be using to produce our product.
The following is a guide to show you the areas that need to be looked at.
1. The Process
In most work environments, you (or your designated health and safety officer) can carry out the risk assessment yourself, calling in specialist help for specific hazards (eg to monitor levels of airborne particles or noise).
i) Identify the hazards
ii) Physically inspect your premises and the tasks carried out there.
iii) Ask employees and safety representatives what hazards they are aware of. Working as a small team, with an insider from each department to provide experience and an outsider for a fresh eye, can be useful.
iv) Check suppliers' instructions and information on equipment and materials.
v) Check your records of accidents and sickness. These may point to hazards.
vi) If your work varies, or you operate on different sites, include other hazards which you can expect to come across.
2. Decide who could be affected.
You are responsible for the health and safety of everyone who could be affected, not just your employees.
i)Visitors, contractors and new employees may be at extra risk. Bear in mind that they may not be aware of your safety procedures.
ii) Consider those who are particularly vulnerable (eg pregnant women, people who work alone and those with a disability).
3. Evaluate how likely it is that employees and others could be hurt and how effective your existing precautions are.
i) If there are any specific legal requirements affecting your industry, have you complied with them?
ii) Do you meet industry standards?
iii) What risk remains? How many people could it affect, and how badly?
4. Decide what you can do to eliminate or minimise the risk.
i) Ideally, you should eliminate the hazard altogether.
ii) Most risks can be reduced to acceptable levels with simple procedures and systems.
iii) Consider additional measures, which are reasonably practicable, to reduce the risk to an acceptable level. For example, warning signs or personal protective equipment.
5. Record the outcome of your health and safety risk assessment and any corrective action taken.
i) The written record can be a useful reminder of areas you may need to keep under review.
6. Review your assessment periodically (e.g. annually).
i) You will also need to amend your assessment when circumstances change (e.g. when you acquire new equipment). (is4profit)
The main purpose of all these initiatives is to facilitate the transfer of goods, from the point of procurement to the point of production, at the least possible cost. Although operations management depends a lot on the human factor, it does not aim at improving the efficiency of personnel associated with a project. The core objective of operations management is to ensure the availability of all the necessary inputs. The cost of procuring goods and services is also considered under operation management, but this is usually taken care of by the cost management team or strategy employed by the company.
Operations management is no longer limited to corporate organizations and is increasingly being employed by other organizations as well. Operations management is employed for effective distribution of relief material to victims of natural calamities, like floods and earthquakes. The increased use of operations management is a proof of the effectiveness of its concepts and theories in reducing operational costs and increasing the efficiency of business processes.
With this new and exciting venture we are hoping to use all the knowledge we have gleaned by writing this report. The whole concept of operational management was a mystery to me until I was introduced to it by Lincoln University.
About.com [online] accessed from: http://entrepreneurs.about.com/od/businessplan/a/operations.htm. Accessed on 16/05/12.
Businessdictionary.com. [online] Accessed from http://www.businessdictionary.com/definition/five-S-s.html#ixzz1vUnQsG2D. Accessed on 20/05/12:
Global-operations-strategy.com [online] accessed from: http://www.global-operations-strategy.com/operations-strategy.html. Accessed on 16/05/12.
Is4profit.com [online] accessed from: http://www.is4profit.com/business-advice/business-law/health-and-safety-risk-assessment/the-process.html. Accessed on 20/05/12
Northlindsey moodle [online] Accessed from: http://moodle.northlindsey.ac.uk/course/view.php?id=487. Accessed on 17/05/12
Pearsoned.co.uk [online] accessed from: http://wps.pearsoned.co.uk/ema_uk_he_slack_opsman_4/17/4472/1144836.cw/index.html. Accessed on 16/05/12.
Slack. N, Chambers. S, Johnston. R (2007), Operations Management, 5, Harlow, Pearson Education Limited.
Qualifications & Certifications
FdA Leadership & Management
University of Lincoln
Altwood Comprehensive, Maidenhead, Berkshire.
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