OPERATIONS MANAGEMENT

Operations Management

Operations Management

Introduction

This report focuses on the case studies of the Levi Jeans workers and the California Auto Club reengineering customer service. It looks at operations management as a source for gaining a competitive advantage and overcoming potential problems experienced within and organisation or workplace.

Capacity & Location

It is fair to say that pre-introduction of the new teamwork system, Levi's had in place the ideals of scientific management.

Around the turn of the Twentieth Century, Frederick Winslow Taylor had developed a set of ideas designed to get employees in manufacturing industries to produce more output. Taylor's objective was to attain high productivity by eliminating inefficient motions in human labour. Hence he divided work process into the smallest elements or motions based on 'time and motion studies', separated intellectual and manual work, searched for the 'first class' employee, who would then be trained and specialised on specific tasks, and provided them with good tools and paid elevated incentives for their high-quality performance.

Taylor and his disciples cited the search for efficiency, 'one best way' to do a job, as justification for such changes. Because scientific management consultants claimed they understood the "natural laws" of human behaviour and endurance, they argued that the implementation of scientific management would benefit both workers and society at-large.

Operations Strategy

Today consumers, investors, governments and even employees have become more sophisticated and are aware of good corporate behavior, or lack thereof. In this new business environment, a company's reputation has become one of its most valuable assets, and CSR has become one of the key components of corporate reputation.

Positive CSR experiences build confidence and goodwill with stakeholders. Many organizations have developed clear CSR efforts as strategic branding and management approach in achieving a win-win outcome. LS&CO was one of the pioneers who had a vision to align cooperate governance and operations of a private business with societal and community needs and beliefs, a move that was endorsed by its CEO, the corporate board, and other employees within the organization.

However during uncertain times, CSR which was once believed to spearhead enlightened benevolence and utopian management was clearly standing in the way of dollars and cents, which had always proven to be the only winning formula for survival. In addition, in situations of unclear directions and the lack of initiatives to increase the fraction of independent directors, there was a deprivation of voices to oppose the reigning party.

In 1993 Levi's hired a consulting firm to analyse the problems, concluding the company should start from scratch and include all parties in redesign of pay structures and work processes. In hindsight, it is simple to say that Levi's should not have phased out the old system as it seemed to be working. Having said this, with the introduction of the new system, there could have been greater emphasis placed on getting it right. What could Levi's had done better?

Operations Competitive Dimensions

Ultimately, traditional Key-Performance Indicators (KPI) such as sales, market shares and brand values should be the underlying concern of any profit-oriented private entities ...