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The Role and Importance of Effective operation Management.

Task 19.1 (a)

As Implementer: One of the important tasks of operations of business is to execute strategy. Most
companies will have some kind of strategy but it is the operation which puts it into practice. It acts as an
implementer of strategy for future success of business.

As a supporter: Another role of operations is to support strategy that is it must develop its recourses to
offer the capabilities which are needed to permit the organization to attain its strategic goals. So that
there should not be any failure of decisions taken by organisation for future success.

As Driver: The Third most role of the operations part of the business is to drive strategy by giving it a
long-term competitive edge. More significantly an operation which has developed the capabilities to
manage with whatever the market requires in the future is providing the organization with the means for
its future achievements. So the development should be continuous.

The Key Benefits of operation management are:

Doing things right gives a quality advantage. It enhances product or service in the market and avoid
customer complaints thus helps to the business to maintain parity with its competitors and brings benefit
to the organization.

Doing things fast gives a speed advantage. It helps to overcome internal problems by maintaining
dependability. So if the product or services are given on time helps to satisfy the customers thus
increase the market share and brings benefit to the organization.

Doing things on time gives a dependability advantage. It prevents late delivery of product or services in
the market which causes disruption, time and effort wastage, thus save the cost and gain reputation in
the market.

Changing what you do gives flexibility advantage. It helps to work according to priorities required in the
market about product or services. Wide range of product or service gives customer to have verity of
choices so helps to increase market share.

Doing things cheaply gives a cost advantage. By saving the time of deliveries of product or services it
helps to save cost. Having trained peoples gives a quality product and thus reduce the cost of
production.

So by the role of implementer, supporter and driver of operation management helps the organization to
be as good as competitors and be clearly best in the industry helps to achieve a set of business goals in
a dynamic competitive environment.

Sources: The Strategic Role and objectives of operations. Chapter 2

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Task 19.b Analyse the strategic objectives of the organisation.

Strategic objectives are the long term action plans which a organization aim to achieve in long run.
Strategic objectives symbolize a promise to achieving specific performance goal in long run. Objectives
rely even more particularly on the analysis in enhancing certain strengths, overcoming specific
weaknesses, capitalizing on opportunities, and addressing the threats. By creating such a fit between the
demands of the industry and the skills and competencies of the organization, a firm increases its ability
to compete successfully in the marketplace.

Organizations may set specific objectives including such things as increasing of market share,
decreasing customer complaints, cutting costs by 20 percent.

Consider a syringe (used for injection) making company.

Objective: Increase market share and increase profit continuously.

Strategies

1. Contract with local newspaper to advertise about the use of new syringes every time to
avoid transferable diseases such as aids.
2. Refurbish existing storage space to accommodate extra stocks which will fulfil the market
demands.
3. Increase the number of machines producing the product.
4. Contact with Hospitals and clinics use their syringes.
5. Improving the quality of needles. And it should pass all the requirements of safety
organisations.
6. Implementing the new range of needles may be made of plastics which are not causing
septic. Thus implanting wide range of product helps to increase market share.
7. Implementation of new technology for packing of syringes which would be fully atomized
and pack large number of quantities in less time.
8. For in house testing facilities of the product purchase of required testing machineries and
making quality control department more equipped to certify the product which meets the
competitive market.
9. Proper training provision for all the level of staffs for handling the project is proper way in
the changed production and services.

As the awareness/education is growing day by day peoples start using new packed syringes
every time means increased consumption thus increased market share and increased revenue
and so strategic objective can be achieved by the organisation in long run.
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Task 19.c – Evaluate the success of operational objective meeting
organizational objectives.
Organizational Objective: Organizational objectives are long-range objectives. They provide as the
goals for management in achieving the organizational mission.  The type commander set organizational
objectives.   You   can   find   those objectives   in   your   command’s   five-year   plan, yearly schedule,
and quarterly schedule. For example increasing market share, decreasing customer complaints, and
cutting costs by 20 percent.

Operational Objective: Short or long term goal whose attainment moves an organization achieving its
strategy. Such as:

Quality - Doing things right direction to meet customer specification. The quality should be such like it
should meet customer satisfaction.
Dependability - Delivery time and production time should meet the market demands.
Flexibility – implementation of new changes as per priorities. Give a support to decide the priorities, as
per market demands.
Cost – producing the product at optimum cost. Optimum cost which meets competitors cost.
Speed – making things on time as per requirement. Reducing the cycle time for production reducing the
cost and meet the market demands.

I am taking an example of superstore whose organizational objectives are

1. Getting a reputation in market.

2. Giving best service to their customers.
3. Increasing its turnover by 20 percent.

And to achieve this operation manager is having these objectives.

1. Making the store is clean and tidy Décor is appropriate and attractive.(quality)
2. Making the Goods are in good condition Staff are courteous, friendly and helpful.(quality)
3. Making arrangement for Minimising the time for the total transaction of going to the supermarket,
making the purchases and returning.(speed)
4. The immediate availability of goods.(speed)
5. Predictability of opening hours.(Dependability)
6. Proportion of goods out of stock kept to a minimum.(Dependability)
7. Keeping to reasonable queuing times. (Dependability)
8. Constant availability of parking.(Dependability)
9. The introduction of new goods.(flexibility)
10. A wide range of goods stocked.(flexibility)
11. The ability to adjust the number of customers served.(flexibility)
12. The ability to get out-of-stock items.(flexibility)
13. Enhancing the technology and facilities.(cost)
14. Increasing the number of staffs.(cost)
From the above operational objective we can see that from these operational objective the organization
able to enhancing the quality of product and services thus getting a reputation in the market and thus
can able to increase its turnover by 20 percent and so in this way operational objectives helps in
achieving organizational objectives.

Sources:

Dr. Jonathan Farrell. (). The Strategic Role of Operations. Available: http://www.farrell-associates.com.au/Ops
%20Mgmt/Slides/MGSM890%20Session%203%20-%202pp.pdf.. Last accessed 05/02/2009.