Operations Management: Operational Planning and Management Level 4 Assignment

Unit 7 Operational Planning and Management Assignment Brief

Introduction

Operations management is everywhere, in every organisation, in every service experienced and in every product consumed. It is the administration of business practices to create the highest level of efficiency possible in an organisation. It is concerned with converting materials and labour into goods and services as efficiently as possible to maximise profits.

The aim of this unit is to enable students to explore how operations management manages all business activities to efficiently create and deliver products and services. This includes the transformation of inputs into outputs of finished goods and services and activities throughout the supply chain. Students will explore the approach to quality management and continuous improvement in the production process. They will review how operations managers have to look externally as well as at internal processes, considering suppliers’ performance and customers throughout the  supply chain.

By the end of the unit students will have an insight into the complex nature of operations, processes and supply chain management, fundamental for understanding the holistic work environment in any industry and organisation.

Learning Outcomes 

By the end of this unit students will be able to:

LO1   Examine the interrelationships of operations management with the other functions within an organisation

LO2   Explain the importance of operations management in achieving effective organisational performance

LO3   Apply quality management approaches to solve practical operations management problems

LO4   Assess the role of supply chain management in supporting an organisation to satisfy customer requirements.

Essential Content 

LO1 Examine the interrelationships of operations management with the other functions within an organisation 

Operations, core and support functions: 

Definition of ‘operations’ and ‘operations management’

Defining the operations function and management of activities to create and deliver products and services that include control and distribution systems, transformation process, process design, capacity management, logistics and inventory management

Core functions of operations e.g. marketing, product/service development

Support functions, including accounting and finance, human resources (HR), information systems and process technology

Interrelationships between operations, core and support functions

Career opportunities and roles in operations management e.g. operations manager, logistics manager, supply chain specialist, operations analyst  Skills and competencies required:

• soft skills e.g. logical approach, quality conformance, communication skills, ethical awareness
• technical skills e.g. collaborative planning and forecasting, assessing and prioritising risks, business continuity planning and mitigation, integrating and improving systems technologies
• managing business recovery, uncertainty and seeking innovative solutions to business needs in a post-pandemic world
• managing interrelationships e.g. how to manage potential conflict, hold-ups.

Input-transformation-output process: 

Inputs, including raw materials, information and customers

Transforming resources of facilities and staff

Outputs of products and services, including facilitating services, serviceconscious manufacturing and the servitisation of organisations e.g. offer  to customers of maintenance, maintenance support and training updates

The process hierarchy – levels of process, the operation, supply network and individual processes

Impact of the ‘four Vs’ (volume, variety, variation, visibility) on operations and processes.

LO2 Explain the importance of operations management in achieving effective organisational performance 

Importance of operations: 

The value of operations management for sustainable success, maximising profitability, productivity and efficiency

The benefits of effective operations management e.g. quality, productivity, customer satisfaction, reduced cost

The importance of meeting stakeholder requirements

Improvement and innovation in operations function for driving organisational improvement, quality and organisational reputation.

Challenges faced in operations management: 

The impact of the post-pandemic world on the supply chain e.g. material shortages, disruption to distribution networks, delivery times of goods and services

Factors affecting pricing models, the increased volatility and rising costs of  raw materials

Dealing with post-Brexit trade barriers and regulations, and the impact this has had on operations and supply chains e.g, labour shortages, additional costs, complexity and risk of delay associated with new checks

Increased customer expectations relating to quality, sustainability and variety

Social and environmental issues e.g. political disruption, climate change,  natural disasters

Addressing the challenges of reducing greenhouse gas emissions in supply chains, reducing impacts on air, land, biodiverse and geological resources

Globalisation e.g. shipping costs, energy costs

Partnership relationships and reputation management.

Organisational performance measurement: 

Performance objectives of operations management e.g. quality, speed, dependability, flexibility, cost

Setting performance targets and key performance indicators (KPIs) to measure success

Defining key performance metrics, including financial, customer satisfaction, employee satisfaction, productivity and response rate

Balanced scorecard approach to performance measurement: financial, customer, internal processes and learning and growth.

LO3 Apply quality management approaches to solve practical operations management problems

Importance of quality: 

Increased customer satisfaction, including loyalty and retention

Improved organisational performance e.g. market share, waste reduction,  impact on costs and revenue, improved operation processes

The impact that quality has on reputation and employee motivation and engagement.

Different approaches to quality and continuous improvement: 

Process management to improve efficiency, compliance and output

Total quality management (TQM) and developments from Deming’s original  14 points for quality control for meeting customers’ requirements, including employee involvement, process review and redesign, competitive benchmarking, ‘right first time’ and constant measurement of results

Quality systems approach to achieve quality management that documents structure, processes, roles and responsibilities, policies and procedures

ISO 9001, including the seven quality management principles

Dimensions of TQM e.g. continuous improvement, process control, management and leadership, teamwork

Theories of TQM: Crosby, Juran, European Foundation for Quality Management

TQM methodologies including six sigma and DMAIC (define, measure, analyse, improve, control), lean manufacturing, zero defects, just-in-time, quick response manufacturing

Best practice in TQM e.g. continuous improvement, customer focus, clear implementation strategy.

Monitoring and controlling operations:

Frequency of monitoring and evaluating

Reporting results

Deviating from the operational plan and replanning activity

Use of control techniques e.g. push and pull control, trial and error control.

LO4 Assess the role of supply chain management in supporting an organisation to satisfy customer requirements 

The scope of supply chain management: 

The difference between supply chains and supply networks

Internal and external supply chains

Tangible and intangible supply chains

Lean supply networks, efficiency and the functional product vs agile supply networks, responsiveness and the innovative product.

Supply chain performance objectives: 

Different objectives of quality and speed, including responsiveness to customer demand and the impact on inventory, dependability, flexibility/agility, cost, sustainability.

Managing supply chain relationships: 

In-house vs outsourcing of activities

Contract-based/transactional relationships vs long-term/partnership relationships

Characteristics, advantages and disadvantages of these relationships

Supply-side management and the four key approaches of multiple, single, delegated and parallel sourcing

Ethical global sourcing, both benefits and risks, including the ethical and sustainable considerations and standards of sources e.g. human rights,  modern-day slavery, corruption and bribery

Development of new pricing approaches, flexibility and capabilities to create long-term competitive advantages

Demand-side management components, including logistics services, which includes in-house and outsourcing and customer relationship management (CRM)

Approaches to stakeholder and supplier relationship management, including effective networking, collaborative working techniques and negotiation.

Learning Outcomes and Assessment Criteria 

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