OPERATION MANAGEMENT

Operation management



Operation Management

Introduction

We can define operations management as the area of Business Administration dedicated to both research and the implementation of all those actions that tend to generate greater value added through the planning, organization, direction and control in the production of both goods and of services, all aimed at increasing quality, productivity, improve customer satisfaction for customers and reduce costs (Flynn et al.1990, pp.250-84).

In this paper, we will critically analyze two business firms from UK, one of them is Holiday Inn hotel (a service firm), and the other one is Lantex Manufacturing Company limited (a manufacturing firm). The paper will emphasize on Identification of the different types of quality process in both of these firms and will critically examine whether each firm's approach is sufficiently intended to cater its customers' needs. The critical examination of these firms will be based upon the Crosby (1984) 14 steps for quality improvement and Juran (1998) trilogy approach to quality. In addition, the paper will critically argue the use of TQM for process strategy, performance management, and supply chain management in both of these firms. The paper will end up with the evaluation and recommendation for both of these firms.

In order to elaborate the operations management in the above mentioned firms, it is important to define and understand the Crosby's 14 steps to improvement and Juran's trilogy approach to quality.

Crosby's 14 Steps to Improvement

Management commitment.

Develop a quality improvement team.

Quality measurement.

Cost of quality evaluation.

Quality awareness

Corrective action.

Zero defects planning.

Employee education.

Zero defects day.

Goal setting.

Error - cause removal.

Recognition.

Quality councils.

Do it again.

Juran's trilogy approach to quality

This approach defines the following:

I.Quality planning.

II.Quality control.

III.Quality improvement

By considering the above mentioned points of both the approaches, we will now analyze the operations management of Holiday Inn and Lantex manufacturing Company.

Operation Management at Holiday Inn

Operations managers do not work only in companies that produce goods, but they are also present in the industries of service. In the case of private service industries, operations managers are employed in hotels, restaurants, airlines, banks and retail stores. In all these enterprises, operations managers, much like their counterparts in firms that produce goods, are responsible for providing services (Davies, Mabin and Balderstone 2005, pp.506-24).

Most authors agree that the operations strategy is a functional strategy that should guide business strategy and result in a consistent pattern of decision making. Operational management is based on the strategy of the organization and involves the development of operational (tactical) objectives and action plans, which must be strictly enforced and continuously monitored. Operational management is carried out in five main areas:

A.Finance (financial planning);

B.Logistics and marketing;

C.Personnel (recruitment, selection, training, retraining, assessment activities, training, personnel rotation);

D.Information Support Activity (analysis of internal and external environment, marketing research, etc.);

E.Interim management works (construction of network diagrams, Gantt charts, scheduling the movement of resources).

Operational planning is usually carried out for up to 1 year. The aim of operative management is the realization of the targets and the fight against deviations from them. In case of an unexpected deviation from the performance targets, management of the organization ...