Executive Summary.

The purpose of this report is to understand what is Operation Management and why it’s
important in an organization and its playing factors.
In the first question I have discussed about what is Operation Management and why it’s
important to an organization and what role does it play in organization and today’s world.
In the second question, I have explained about strategic planning and how its linked to my
company and its performance objectives.
In the third question I have talked about process and product layout , facility layout , project
management, quality assurance and how its plays part in my selected organization.
Table of contents.

Contents
Acknowledgement...........................................................................................................................3
Executive Summary.........................................................................................................................4
Introduction......................................................................................................................................6
Operation Management...................................................................................................................7
Importance of operation management.............................................................................................7
Strategic Planning............................................................................................................................8
Link between operation management and strategic planning..........................................................8
Performance Objectives...................................................................................................................8
Facility Layout...............................................................................................................................10
Process Layout...............................................................................................................................11
Project Management......................................................................................................................11
Quality Assurance..........................................................................................................................12
Conclusion.....................................................................................................................................13
Introduction.
Micro Cars is an automobile company based in Peliyagoda, Sri Lanka, founded in 1995. It was
established by automobile engineer, Dr. Lawrence Perara. Micro Cars is a fully owned subsidiary
of Micro Holdings.
Micro Cars was established by TAK engineer, Dr. Lawrence Perara. Micro's first introduction
was "Micro Privilege" which had 1,000 cc gasoline engines with inline 4 cylinders. After that it
produced Micro MPV Junior van and the Micro Trend hatchback, which were more advanced
than the first introduction.
As Sri Lanka's first ever car, the "Micro" is designed, developed, and prototyped to be
manufactured locally with at least 60% of local content. The prototype was prepared in 1999
with the running chassis making its debut run in December. The body was modeled in styling
clay and then transferred to composite for final analysis in June 2000.
The first Micro was made in mid-2001. The Board of Investment provided state support for the
car project. Its first car was legally registered only in 2003 after a lengthy battle with the motor
car registration department of the country. [citation needed] Micro Cars export products to
Nepal, Pakistan, India and Bangladesh. Micro Cars, which is a fully owned subsidiary of Micro
Holdings, is engaged in imports and assembly of the vehicle brands Geely, Ssangyong, Hafei and
Great Wall Motors of China.

(Micro Cars, https://en.wikipedia.org/wiki/Micro_Cars2017)

Operation Management.
Operation management is the managing process of an organization which transform inputs into
goods and services that add value for the customer.
Operation management maximizes efficiency while manufacturing goods and services that
effectively fulfil customer requirements. Endless operating decisions must be made that have
both long and short term effect on the company's ability to produce goods and services that
increase the value of customers. If the company has made good operating decisions in designing
and executing its change framework to address the issues of the clients, its prospect for long term
endurance are greatly enhanced. If the company makes better operation management decisions, it
will be able to produce affordable, functional, and attractive furniture that clients will buy at a
cost that will earn back profits for the company.

Importance of operation management

Operations management is one of the crucial parts of any association. Forbes magazine ones
detailed in 2011 that around seventy five percent of all CEO originated from an operation
management foundation. Not each one of these CEO inspected operation management. There are
many effects of operation management in various fields.
Engineering –Engineers are incredible with numbers and core interest. That does not mean they
are likewise incredible with operations. Operations examination is both quantitative and natural,
and designers without operations preparing can and do squander a huge number of dollars.
Finance – corporate finance people practices oversight over spending arranges, so having a few
operations learning can help this gathering use sound judgment. For instance, when operation
pioneer requests cash to de-bottleneck a technique, perceiving comprehending what this implies
reveals to you the aim is to build the objective is to extend the breaking point of a present
operation.
Information technology – A major part of IT inside an organization is to computerize
operations. Knowing the center principals of operations can help these individuals amass an
operations superhighway rather than clearing a bovine way. Associations tend to effortlessly
recognize the customary method for getting things done without question.
Marketing - At the point when the marketing people think of another item thought or
advancements idea, they need to speak to operations to see if it can be made usefully. In the
event that the appropriate response is no, operations supervisors are at times an irritable parcel
affecting them to discover an answer might be simpler if advancing can talk the dialect of
operations and comprehend their worries.
Strategic Planning.
An organization's strategic plan portrays its vision for achievement. It focuses on the inevitable
destiny of the association and how the future will be not the same as the association today. For
example, a product organization's strategic plan may be to give industry-particular arrangements
that are custom fitted to the novel needs of every industry for five key ventures. Another
imperative goal might be to have no under 70 of the fundamental 100 associations in each
industry as a customer.

Link between operation management and strategic planning.

A strategic plan characterizes what an association needs to do. An operational plan symbolizes
how it will do it. An association with a game plan however no system and an association with a
strategy yet no course of action for how to execute it are comparably disabled. Each component
in each plan must be linked to the next to ensure that the individual invest their energy taking a
shot at the correct exercises and that those exercises will make the association effective.
Every goal in an operational plan ought to link specifically to at least one objectives in the
association's strategic plan. If an operational goal can't be connected to a key association
objective, it apparently shouldn't be an operational goal. For instance, if an operational objective
of the product organization is to build up a 6th industry arrangement however there's no strategic
objective to extend to an additional industry, representatives will invest energy taking a shot at
something that isn't a primary sympathy toward the organization. The way of the responses for
the five key endeavors may continue as a result.

Performance Objectives.
Quality.
The greater part of the experts trust that it is the most imperative obviously, a bigger number of
has been made about it than some different operations execution objective over the span of the
up-to-date a quarter century. To the extent this prologue to the theme is concerned, quality is
discussed, all things considered, with respect to it meaning 'conformance'. That is, the most
essential meaning of value is that an item or administration is as it is ought to be. At the end of
the day, it fits in with its conclusions.
Internal: - Inside the operation quality has an alternate effect. In case conformance quality is
high in each one of the operations systems and activities not a lot of stumbles will be made. This
by and large implies that cost is saved, steadfastness increments and speed of response additions.
This is on account of, if an operation is persistently remedying botches, it thinks that it’s hard to
react rapidly to customer’s demands.
External: - The outside inside the operation quality has a substitute impact. On the off chance
that conformance quality is high in every one of the operations procedures and exercises not very
many mix-ups will be made. This for the most part implies that cost is spared, reliability
increments and speed of reaction increments. This all things considered infers that cost is saved,
unwavering quality augmentations and speed of response additions. This is in light of the fact
that, if an operation is continually changing bungles, it feels that it’s difficult to respond quickly
to customers’ demands.
Speed
Speed is a shorthand strategy for saying 'Speed of response'. It points toward the time between an
external or internal client asking for an item or administration, and them getting it. Afresh, there
are internal and external effects
Internal -The internal effects of speed have much to do with cost reduction. There are two
territories where speed decreases cost (diminishing inventories and lessening dangers). The
outlines used are from gathering however a comparable thing applies to organization operations.
For the most part, speedier throughput of information (or customers) will mean decreased costs.
External - Externally speed is vital because of the fact that it reacts rapidly to clients. This is by
and large observed positively by customer’s will's character more slanted to return with more
business. Now and again likewise it is possible to charge higher costs when administration is
quick.
Dependability
Dependability signifies 'being on time'. At the end of the day, clients get their items or
administrations on time. Disregarding the way that this definition sounds clear, it can be difficult
to gage. What absolutely is on time? Is it when the client required conveyance of the item or
administration? Is it when they expected conveyance? Is it when they were ensured conveyance?
Is it when they were guaranteed conveyance the second time after it fail to be conveyed the first
time? Once more, it has outside and inward effects.
Internal: - Internally dependability affects cost. The area recognizes three courses in which costs
are affected - by saving time (and along these lines money), by sparing cash straightforwardly,
and by giving an association the strength which permits it to enhance its wasteful aspects. What
the part does not stress is that very reliable structure can help expand speed execution.
External - Externally (regardless of how it is characterized) dependability is for the most part
viewed by clients as something to be thankful for. Completely being late with movement of
items and endeavors can be a noteworthy unsettling influence to customers. Especially with
business clients, dependability is an especially critical basic used to figure out if providers have
their agreements restored. Thus, once more, the external effects of this execution goal are to
expand the odds of customers coming back with more business.

Flexibility
This is a more unpredictable objective since we utilize "flexibility" to mean such an assortment
of different things. The imperative indicate recall is that flexibility dependably signifies 'having
the ability to change the operation some way or another'.
Internal -The internal influences related with this execution objective. The three most
fundamental are to be specific flexibility accelerates reaction, flexibility spares time (and along
these lines cash), and flexibility looks after dependability.
External - Externally there are different sorts of flexibility permit an operation to fit its items
and administrations to its clients somehow. Mix versatility allows an operation to make a wide
variety of things and organizations for its customers to investigate. Item/benefit flexibility
permits it grows new items and administrations uniting new thoughts which clients may discover
appealing. Volume and transport versatility allow the operation to adjust its yield levels and its
movement procedures to adjust to startling changes in what number of things and
administrations+ customers require, or when they require them, or where they require them.
Cost
There are two vital focuses here. The first is that the cost structure of various associations can
vary incredibly. Second, and specifically, the other four execution focuses on all contribute,
inside, to diminishing cost, to decreasing cost. This has been one of the noteworthy disclosures
inside operations.

Facility Layout.
Micro Cars wanted to match the production output of Toyota. On study, their limitations required
a different process that would work in accord with;
 Smaller Space.
 Smaller Cash Flow.
 Greater model variety.
 Smaller Client base.

The correct number of individuals in the line depends likewise on the client request. One of the
strategies to alter the yield of the line is by including or expelling specialists. The exceptionally
mechanized welding line was substantially quicker, having the capacity to create one case in a
little more than one moment. Curiously, instead of packing the line full with body (the Western
way), Micro Cars utilized a force framework. New body were discharged just at the speed at
which the mechanical production system could take them, consequently there were constantly sit
without moving stations with no skeleton in the welding line.
There are distinctive points of interest for part the line. One noteworthy reason was laborer
inspiration. At Micro Cars, each laborer not just can stop the line, yet should do as such if there
is an issue he can't gauge inside one process duration. Be that as it may, in a long line, this
implies delaying numerous different specialists, not every one of whom the laborer has a social
connection with. Henceforth, there is a sentiment pressure because of interfering with other
individuals' work, and thus a wavering to stop the line.

The second preferred standpoint is enhanced productivity. An issue does not stop the whole line,
but rather just a fragment. Subsequently, the danger of interruptions is spread and the
productivity of the line is expanded.

Process Layout.
The strategic and financial effect of product design and process choice orders that operation
work intimately with other legitimate abilities to settle on these choices. Operations are an
essential piece of these decisions since it grasps issues of era, straightforwardness of make,
benefit, and quality.
Under Micro Cars product designing process they go under five main methods such as
Concept Making - it's a design process which begins with a design concept having prepared out
the development goal, the target customer profile, and the other aspects of the vehicle.
Idea Development - in this process the designers sketch the design with pencils, pastels markers
and another sketching tool. Computers allow the designers to examine design ideas.
Color Development - in this process they decide the color of the car the interior and exterior.
Mock Up - mock up is a process where a creation of three-dimensional clay model work
together with designer to ensure an understanding role.
Decision Hall - decision hall is the final procedure where the customers angle is needed.

Project Management.
Project Management is basic to be powerful ideal utilization of asset and assumes a critical part
basic leadership handle a methodology used to perceive and measure general limit of generation
is alluded to as key scope organization. Key scope quantification is used for capital serious
resource like plant, hardware, work, and so on.
Key quantification is basic as it helps the relationship in meeting the future necessities of the
affiliation. Arranging guarantees that working expense is kept up at least conceivable level
without impacting the quality. It ensures the association stay aggressive and can accomplish the
long-haul advancement arrange.
For this strategic decision area of operations management, Micro Cars uses lean manufacturing,
which is likewise encapsulated in MPS. The company accentuates waste minimization to
maximize process efficiency and capacity utilization. Thus, Micro Cars supports business
efficiency and cost-effectiveness in its process and capacity design.
Quality Assurance.
Quality Assurance is a way how a business can outline the way a result of administration is
created or conveyed to limit the odds that yield will be sub-standard. Concentrate of value
affirmation is on the item advancement organizes.
To maximize quality, the company uses its Micro Production System (MPS). Quality is one of
the key features in MPS. Additionally, the firm addresses this strategic decision area of
operations management through continuous improvement, which is secured in The Toyota Way,
a set of management principles
Conclusion.
By doing this report I have learnt many things about operation management and how vital it is to
an organization and its factors and how operation management it linked to an organization.