Contribution to Operations Management

Questions: Outline the similarities and differences between manufacturing and services in terms of operations management. Identify the competitive priorities (CSFs) in a service organization of your choice. What is the role of the operations manager in ensuring that these CSFs are achieved in the organization? Considering the importance of 'Quality Management', describe how the principles of quality are applied in your organization and how they can potentially contribute to operations management. What Information Systems are used in your organization to support the value chain internal functions and the supply chain? How does technology contribute to achieve competitive advantage? Investigate the types of qualitative forecasting techniques used in your organization. How do senior managers identify the appropriate forecasting technique to use in different circumstances? Do you think these techniques are used appropriately in your organization? Describe the basic layout types for both manufacturing and service facilities, and identify when each is best used. Answers: 1.An Operation Management refers to a set of activity which creates value and change in terms of goods and services through transforming the transformation process of the organization. Operations management maintains design, operation and improvement productivity system of the organization. Manufacturing of operation management refers to a methodology to review the end-to-end process of manufacture with a view for optimizing efficiency. Manufacturing indicates the production of goods produced by the organization which consumer buys in the market. It includes analysis of performance, quality and compliance and Human Machine Interface (HMI). The Service refers to the product which the organization provides to its consumers. Services include a variety of the organizations production which it provides to the customer with specialist knowledge of consulting and accounting (Fitzsimmons 2013) Similarity between Manufacturing and Services Mission Statement: There are various methods in the organization which shows that the service and manufacturing operations are same in nature. Both have creation of mission statements consistently and make a vision to run the organization with a great success for perceiving by customers. Both play an important role in the marketing industry (Bozarth 2016). Production: The similarity of manufacturing and service is not so far. The organization produces both tangible and intangible assets for customers as well as the consumer also helps in the manufacture of these services to the organization where products are usually separated from consumption. Sometimes manufacturing and services operations both involve low interaction of customers by which the company may face difficulties in the production area (Malhotra 2013). Consumption: Both manufacturing and services operations are produced and consumed at a time because having manufactured the goods, the organization further provide this to the consumer as the service by which it can make profit in the market (Krajewski 2013). Interaction of customers: If the production is more, customers should involve more with the organization product. As a result, manufacturing process may take place quickly as well as services are provided at a large quantity to the customers. For this, we can say that manufacturing and services operations are similar in nature (Ritzman 2013). Difference between Manufacturing and Services Critical Attributes: Most of the services can define as an interaction which is physical and social in nature. The interaction between the service provider and the manufacture indicates a critical attributes of services at the time of production of goods in the organization (Spalanzani 2012). Psychological Utilities: The service is an act, performance, deeds or a relationship which creates Psychological and time utilities for customers. On the other hand, manufacture does not create such type of utility in the organization (Gunasekaran 2012). Production: Basically, manufacturing includes physical products whereas services of operations include intangible products. The manufacturing product can be inventoried. However, the services product cannot be inventoried. These are the basic difference between manufacturing and the service operations. As there are some similarities of production in terms of manufacturing and the service process, the method of production is different because the manufacturing goods are produced on long responsive time whereas the services indicates short responsive time in the organization (Handfield 2016). Time consumption: The manufacturing of operations management includes long responsive time an intensive capital whereas the service includes short responsive time as well as labor intensive. Manufacturing involves low contact customer but services involved high customer contact in the organization (McAdam 2013). 2.Identification of Competitive Priorities (CSF) in the Organization Competitive Priorities are a critical and operational dimension which the organization and supply chain must possess to maintain the competition in the market. Identification of Critical Success Factors (SCFs) refers to a most important outcome at the time of evaluation of SWOT analysis in the organization. It is also known as competitive priorities. Most of the organizations use the concept of CSFs and Toyota Yaris of UAE is one of them. The factors include quality, economy, performance and special local needs. This can be identified in different ways in the company. There are three ways to identify the CSF in the company (Ika and Diallo 2012). Collection of Data: In order to identify the critical success factors in the organization, some questionnaires have to be followed by the organization. Firstly, it contains the questionnaire of exhaustive list for the success of the project. Data collection of CSF is to measure through Relative Importance Index (RII) method in the organization. It has found that 39 factors of success were considered by the RII method (Thuillier 2012). Figure 1: CSF of Toyota Yaris. Source: (www.csf.gov.in). Analysis of Data:Data is to be analyzed by the RII method in the company to make the critical success factors in the market. This analysis can be done by using RII method as well as done independently for the three respondent categories such as owner, consultant and contractor. The company has to calculate its overall average which can be done in such categories (Bhuasiri and Xaymoungkhoun 2012). RII (Overall Average) = N1 RII of contractor + N2 RII of consultant + N3 RII of owner / N1 + N2 + N3 Where, N1 = number of contractors, N2 = number of consultants, N3 = number of owners. Agreement Analysis: In order to maintain the rank of above three participants in the company, the Company makes an agreement to analyze the critical success factors in the market. The company maintains a good ranking agreement which indicates that the critical success factors must involve with agreement analysis to show the best production in the market of UAE (Zo, Rho and Ciganek 2012). Figure 3: Data Analysis of Toyota Yaris. Source: (www.csf.gov.in). Role of Operations Manager in ensuring the CSF achievement Operations manager plays an important role in ensuring the CSF achievement in the organization. It includes various roles towards operations manager of Toyota Yaris in UAE such as product, quality, process, location, layout, human resource, supply chain, inventory, schedule and maintenance. Operations manager maintains all these strategies in the company. It must see the production process with its quality and process. The products are producing at genuine place where it can be sold by customers. The manager makes some layout decision for the development of the company. He also works as a human resource and maintains some departmental works in the company. Toyota Yaris in UAE has best supply chain in the market by which the inventory system is properly maintained. Inventory helps in the production process and must make a schedule to launch the product in the market. Overall it has found that operations manager maintains the growth of the company in the country (Ram and Wu 2013). 3. Importance of Quality Management Quality management is one of the challenges for the company to produce and deliver the quality product and services to customers. Quality management is very significant for the success of Toyota Yaris in UAE. The importance of quality management is highlighted bellow; The customer can get more involvement with the companys product by having a good quality management across the country (William Cooper Procter 2016) It increases the profit margin of the company by producing best quality of product in the market. The number of consumer must increases by having the best quality of products in the market where product can be sold at a great quantity (Gebba 2014). The customer does not complains about the companys product because they are satisfied and also buying the products accordingly. The company makes best layout decision with the help of best quality management in the marketing strategy (Corkindale 2013). Principle of Quality Management applied to the Company Quality management is needed in the company to produce best quality goods and sell it to the market at a great quantity. There are some vital principles of quality management which are applied to the companys production (de Waal 2016). Increase in Design and Quality: The Company follows the concept of total quality management and producing goods as per demand of the customers. The customer demands more for those goods because quality management increases its design in the market (Frijns 2016). High Value Perceived: the Company produces goods at some higher perceived value and increasing the profit margin across the country. The principle of quality management is applied to maintain high growth in the marketing strategy (Balasubramanian 2016). Increase in Revenue: Now the company increases its revenue by applying the concept of total quality management in the market. Quality management helps the company to produce goods in best quality which the customer like most and buy them at a great quantity (Ika 2012). Lower Cost: The Company can decrease its manufacturing and services cost with the help of total quality management principle in the marketing strategy of UAE (Sundarakani 2016). Contribution to Operations Management Operations manager is more involved with the quality management in the company because it handles all departmental works of the company including production process, decision making and human resource behavior. Operations manager maintains production, for this, the quality management potentially contributes the resources in the company. Operations manager fulfills the satisfaction of customers with the help of quality management. It makes a contribution from prevention to inspection for best supply of the product in the market. The operation manager makes recognition of the management responsibility for quality product by the concept of total quality management of Toyota Yaris in UAE (Sundarakani 2012). 4.Information System to Support the Value Chain Internal Function and Supply Chain A chain value analysis refers to a strategic tool which used for analyzing the internal firm activities. It recognizes the activities which are the more valuable to the company. The company follows the concept of Porters generic chain value which includes primary, support and margin activities. It has to identify its every production process part to conduct a chain value analysis. It helps in the improvement of the company into worldwide market segmentation (Malhotra 2013). Such improvement indicates the saving of cost as well as improvement in productive capacity which includes the competitive advantage faced by the company. Value chain internal function indicates the well working performance of the company in UAE which helps to support the departmental work of the company maintained by operations manager (Krajewski Ritzman 2013). Figure 4: Porters Generic Value Chain Source: (www.marketing91.com). In todays era, the supply chain plays an important role in the growth of the business. The supply chain of Toyota Yaris is the best Chain of supply in UAE like each year from 2010 to 2013. In spite of having the financial and business news reports it has been noticed that the company has a network facility and distribution option which performs the procurement functions of material. The industry is pushing up the partners of manufacturer and supply chain in regards of a small carbon footstep. Now the company is accelerating the introduction of new product by acquiring licenses and business of 3rd party (Chopra Meindl 2016). 5.Contribution of Technology to Achieve Competitive Advantage Now Toyota Yaris is running well within the country and making some forecasting process for well development in coming days. In the 21st Century, technology is one of the basic necessities to grow up the company into worldwide market. Supply chain and value chain helps to contribute best latest technology to the company by which it can increase its working performance across the country. The company faces competition in the market with the help of these technologies. Now market becomes competitive and the company is growing consistently with the help of competitive advantage of best supply chain in the market (Taylor 2012) Nowadays, market is perfectly competitive and all marketers are facing competition to increase their profit margin. The company contains some latest tools and technologies to face competition in the market. Competitive advantage is considered the companys goals, objective of operations manager and production of efficient and effective goods in the market. It includes operational excellence, better competitive analysis and less cost superior products. These all are the basic necessity which contributes technology to the company to achieve the competitive advantage in the marketing segmentation. It shows higher sales as well as higher profit in comparison to its competitors in the market of UAE (Riasi 2015). Figure 5: Competitive Advantage. Source: (www.competitiveadvantage.com). 6.Basic Layout Types for Manufacturing and Services Operations Layout refers to a facility which communicates and interacts between workers and their supervisor as well as between workers and customers. It makes minimization of movement and cost of material handling. Layout utilizes labor cost and fulfills the gap efficiently. There are some basic types of layout in the organization which are discussed bellow; Process or Functional Layout: In this layout, equipment of material handling is flexible as well as operators are highly skilled. The process layout is basically suitable for non repetitive jobs. The time of production is relatively long in this layout. There are two techniques to design the process layout such as block diagramming and relationship diagramming. These are based on visual data representation. The best time to use this layout is when the process of inventory is relatively high and when the material flow is intermittent. It may used while planning, controlling and scheduling some challenges function equipments (Bukchin 2014). Product or Line Layout: A process or functional layout refers to equipment and a machine which have arranged in accordance with operations consequence of the product. Only a particular product can produce once at a time in process layout operating area. The layout is used where the low production volume is needed to facilitate the product of the organization. The layout production volume is high as well as raw material and components are of uniform quality in the production layout. This layout is best to use when production time for a product is specifically short and when a little direct supervision may require (Tzur 2014). Fixed Position Layout: Basically, this layout has least importance in todays manufacturing industry because the major components are in a fixed location. Movement of material may reduce in this type of layout as well as there is a minimization of capital investment. This layout is best to used when the materials volume are needed dynamic equipment. It requires when there is a requirement of stationary project design (Hasan 2012). Group or Cellular Layout: A group or cellular layout is basically temporary arrangement layout where operations are required for production of particular equipment. This layout is best to used when the system of operations may contains a moderate product varieties in moderates volumes accordingly. When a different machine is brought together to make production, this layout is much helpful for the production (Sarkis and Shankar 2012). Hybrids Layout: Basically, Hybrid Layout is considered as the most manufacturing process which is used as a combination of layout types. It makes modification and combination of some aspects of products and layout process. This layout is best to used when there is a production of manufacturing process with a different combination of various types of layouts such as group layout, flexible system of manufacturing and assembly lines of mixed-model (Van Gisbergen, Blakely and Zelnik 2015). 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