Operations Management

Using the Principle of Operation Management to reactivate a firm: A Case study of WHSmith

Introduction2

Discussion2

Task 1: Key Elements, Nature & Importance2

Definition and Importance2

Key Elements of OM3

Time, cost, quality, and law4

The role of OM in achieving strategic objectives4

Systems and sub-systems diagrams for WHSmith operation processes4

Task 2: Relationship between OM and strategic planning8

Implementation of the 3Es in WHSmith: EFFECTIVNESS & ECONOMY8

Implementation of the 3Es in WHSmith: EFFICIENCY9

Cost minimization and Quality maximization10

Five Performance Objectives underpinning Operations Management11

Task 3: Relevant techniques in Production Process12

Operational Planning and Control12

Linear Programming13

Network Plan and Critical Path for Operations13

Operational Outcomes and Maintenance of Quality14

Using the Principle of Operation Management to reactivate a firm: A Case study of WHSmith

Introduction

One of the largest retailers with over six hundred High Street stores and six hundred stores at train stations, service areas, and airports are under the network of WHSmith. These stores varied from the categories of entertainment, news, books, and impulse purchase. This assignment is based on using the fundamental principles of operations management in order to reactive a firm i.e. a case study on WHSmith. The purpose of this assignment is to provide fundamental understanding about strategic role and importance of operations management for the effective and efficient production of goods and services for WHSmith. This assignment uses the case study of WH Smith as a strategic point to address different tasks that explains key elements, nature, and importance of Operations Management in the organization.

Discussion

Task 1: Key Elements, Nature & Importance

Definition and Importance

Operations management can be defined as the procedure whereby sources, flowing within a described and definite system, are assimilated and modified by a managed way to add value in compliance with guidelines conveyed by management (Kumar & Suresh, 2009, pp.09). Operations management comprises of a number of functional areas which contribute in the business operations of any organisation. These functions include inventory management, production planning and scheduling, quality assurance and improvement, procurement, logistics and forecasting.

Key Elements of OM

Input, processes, and outputs are three basic elements of operations management of any organisation. Inputs are those resources that are core requirement to manufacture any product or operate any services. These include natural or raw materials, employment of capital, and labour workforce. Processes are those business actions that are executed on inputs for their transformation into complete finished products. Outputs are final part of key elements that are finished products which results from the processing of inputs (Flake et al., 2013, n.p).

At WHSmith, the introduction of e-commerce stimulates business operations through streamlining of different number of operational areas. The use of EDI (Electronic Data Interchange) facilitates in order placement, confirmation of receipts, transmission of invoices and shipping notes from stock replenishment on shelves for sales of items like a book. It uses direct-form-supplier supply chain model.

Time, cost, quality, and law

Cost, quality, time, delivery, and law provisions are important part of designing any product or service with maximum efficiency for customers. These specifications or expectations are part of customer benefits that can also be compared for the competitive advantage ...