Operations Management in Business


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Introduction to Operations Management in Business

Operations management in business can be considered as a crucial element as it helps in carrying out the activities, decisions and responsibilities of managing resources that are available for the production and delivery of products and services. However, it assists in ensuring that the operations of business are effectual in making utilization of resources that are available within business. In the present report, operations management within business is discussed with regard to the Furniture Supplier Company. Business is engaged in providing finished products to leading furniture retailers. Research highlights the importance of operations management within business and also evaluates the process model for Furniture Supplier Company. At the end, critical path analysis and network planning has been done in order to evaluate the outcomes.

Task 1

1.1 Importance of operations management for business

Operations management is significant for Furniture Supplier Company because of the following reasons. These are as follows...

Enhancing the productivity

It is essential for operations management to ensure quality in the manufactured products. Therefore, it plays a significant role in enhancing the productivity and profitability of Furniture Supplier Company.

Improving the financial condition of enterprise

It can be assessed that management of supply chain is ensured through operations management. Thus, it helps in bringing advancement in order to carry out the processing for firm. Hence, the finished products are offered to retailers within minimum period of time and thus, it has impact on the financial condition of Furniture Supplier Company.

Helps organization in meeting client's priorities

Operations management play a crucial role in managing the demand and supply of firm in meeting the customer’s priorities effectively. Through such function, it is important in maintaining the balance between quality ordered and supplied by firm of furniture.

Managing product and service

The growth of product includes varied steps. It starts with the generation of idea and ends with the sale of products. However, for Furniture Supplier Company, operations management is crucial as with this, it can plan varied schedules that would assist the business in manufacturing product within stipulated time frame.

Optimal allocation of resources

Operations management helps in allocating the scarce resources to different activities and functions within business. The resources involves time and cost that are essential for the success of Furniture Supplier Company. Thus, proper allocation and management of resources helps in enhancing the productivity and profitability of firm.

1.2 Analysis of operations functions of Furniture Supplier Company

The different operations functions of business are as follows...

Time management

The operations functions is to plan the schedules in which the time taken by different activities of business are assessed. However, it ensures that the completion of activities is attained within set time scale so that project may not get delayed over specified time.

Cost management

It is an essential function of operation management. However, the cost allocated with varied business activities and functions is assigned with the help of operations management. It helps in managing the resources that are dedicated to the production and delivery of products and services. With the assistance of this, Furniture Supplier Company can minimize its expenses and thus, ensures to manage the overall cost of business.

Allocation of resources

Optimum allocation of resources is a crucial function of operations management. It helps in ensuring that production process of business runs in a smooth manner when its resources such as cost and time are allocated effectively as per the priority of varied tasks.

Managing quality

It is another function that is performed in operation management. It is essential for Furniture Supplier Company to measure its quality of finished products before selling it to the leading furniture retailers. It will help in enhancing the overall efficiency of production system so that the best products can be manufactured.

Managing change

It is essential to manage the change within firm so that different activities such as planning, monitoring, redesigning and controlling the activities need to be carried out effectively in order to gain the best results.

1.3 Evaluation of Furniture Supplier Company by using process model of the operations management

It can be evaluated that the process model of Furniture Supplier Company is effectual in making decisions. Such type of model involves varied activities such as input, transformation and output. Although, varied theories and models are used in order to assess the operations management of firm. However, it can be comprised of closed and open system, probabilistic, random and deterministic system. In this, the operation management of Furniture Supplier Company is an open system. It is because; it is essential for business to communicate at regular time intervals with the external business environment. In the input process, it requires raw material which is provided by the suppliers of business. Thus, all these raw materials are processed through the conversion process and thus, input is converted to output.

In the transformation process, it involves various factors such as people, environment, technology and structure which are essential in the completion of this step. The finished product is then transformed to customers in the form of output. Additionally, Furniture Supplier Company possess probabilistic process model. It is because business can determine the end outcomes in advance depending upon the future results. Thus, with the help of open process model, business can deliver the finished products to its clients that involve retailers that carry furniture business. However, the future demand for furniture products of enterprise can be estimated with the assistance of Probabilistic system. Through this, firm can keep an eye on its production capacity management.

2.1 Explanation of three E's

Three E's are essential for the success of business which involves effectiveness, economy and efficiency that are enumerated below...


It states the way of carrying out things as smoothly as possible. It involves the allocation of resources in suitable ways so that process can flow in a smooth manner. However, in order to attain efficiency in business operations, it is essential for business to eliminate the activities that causes delay while executing the operational process. Therefore, it is essential for business to attain efficiency by producing best outputs in the form of quality furniture. It results in attaining the desired results which will further enhance the productivity of Furniture Supplier Company.


It is crucial for business to make production in an effective manner so that it will incur less or minimum cost to the firm. However, economy defines carrying out activities in the cheapest way that is possible for the firm. Producing low cost materials is only possible when business makes bulk purchases and produces merchandise in high volume. Such type of element can only be attained when Furniture Supplier Company minimises its expenses which incurs from the activities such as manufacturing and delivering the final products. Through economy, business operations can ensure that that desired outcomes are achieved within specified time and cost.


In such type of element, it refers to making it effective so that client’s needs and requirements can be fulfilled by the manufactured products within firm. Thus, Furniture Supplier Company can assess the effectiveness on the basis of degree to which set targets and goals can be attained. Effectiveness ensures the success of enterprise in the long run. Thus, it results in improving the quality of output that is produced by organization.

Thus, it can be evaluated that the above mentioned three E's results in excellence which is only possible when Furniture Supplier Company manufactures its products with economy, effectiveness and efficiency.

2.2 Tension between cost minimization and quality maximization

It can be assessed that cost minimization and quality maximization are the crucial elements to attain success within firm. However, Furniture Supplier Company needs to maintain balance between both these factors in order to achieve the desired results. By carrying out this, business faces varied issues that results in developing tension among cost minimization and quality maximization. It is significant for business to manage its cost in short run so that it can achieve the desired results. At the initial level, it is difficult for business to execute the production in high quality. It is because; management of business do not know that the produced products will be accepted by clients or not. While, if the products are manufactured within small quantity then business will be able to manage the quality of products that have been produced. Thus, it can be evaluated that the quality of products can be maximized but the cost of production will be enhanced with this.

However, in the long run, Furniture Supplier Company can make production at a large scale. It will result in minimizing the cost of production. But it reduces the quality of product at the same time. Furthermore, if business integrates innovative technology for executing the production process then this will possess impact on both the facet. Although, it helps in enhancing the quality of furniture but the cost would be increased substantially with the usage of latest technology. Thus, tension between cost minimization and quality maximization arises when the raw material present to firm is costly. Business also requires skilled labour in order to carry out the job in an effectual manner. Such workers will be paid with high salaries and thus, it serves as the cost of firm. Thus, results in cost maximization and quality maximization. Therefore, in order to maintain proper balance between cost and quality, Furniture Supplier Company is required to allocate the resources effectively.

2.3 Evaluation of significance of five performance objectives

The significance of performance objectives such as cost, dependability, flexibility, quality and speed that underpins the operations management are as follows...


In order to achieve such performance objective, Furniture Supplier Company has to minimize its direct and indirect expenses. With the low cost objective, business can enhance its productivity. However, it has impact on sales and profitability of business. For instance, if business manages to minimize its expenditure then it would achieve the desired outcome within specified time period.


It is another crucial objective of firm. However, it covers the aspect of customer convenience. Dependability performance objective can be achieved only when Furniture Supplier Company makes timely delivery of products and services and satisfy the client’s needs. Thus, it would result in the reliable operations for organization that helps them in attaining the desired targets.


Such performance objective affects the business ability to adopt changes. It will improve the potential of operational management system of firm. However, with the change in preferences of clients, it is essential for Furniture Supplier Company to make alteration in its existing products or design new furniture outlay so that client’s needs can be satisfied.


It helps in ensuring the production of error free products as per the specification provided by clients. Through this, performance objective helps in enhancing the performance and sales of merchandise. Also, with the help of quality control measures, business can attain set standards.


Organization can attain this performance objective only when it takes short delivery time. However, it helps in facilitating the production process of business to run in a smooth manner. Through adopting a speedy process, Furniture Supplier Company helps in meeting the needs of clients in timely manner. It also assists in improving the brand image of firm in market and satisfies the requirements of target market.

Task 2

3.1 Explaining linear programming

Linear programming can be stated as a linear optimization that helps the business in achieving the best outcomes. It involves profit maximization and cost minimization objectives. It is considered as a mathematical model that can be used by Furniture Supplier Company in finding solution to the issues that arises because of inappropriate allocation of resources. However, the needs under this technique are demonstrated in linear relationship form. Further, such type of technique can be applied when linear association exists among variables. Such model helps organization in optimizing the results on the basis of unambiguous set of constraints. Through operational research, it helps in ensuring the use of linear programming in determining the solution to varied production and business issues.

3.2 Critical path analysis and networking planning

Critical path analysis and networking planning are as follows...

Critical path analysis

Furniture Supplier Company can schedule its activities with the help of project management tool that is known as critical path analysis. It helps the business to effectively manage its complex business activities. It is useful in assessing the actions that are crucial for the completion of project. With the help of this, project manager can determine the longest path that can be taken to complete the task within shortest time duration. However, the delay caused in one activity of project will have its impact on the overall completion of project. Critical path analysis helps the business to gain insight to whether or not it is carrying out its actions in a planned way. Furthermore, it enables Furniture Supplier Company to ensure that it makes timely delivery of products in order to attain satisfaction.

Network planning

It can be defined as the set of activities that are critical to success of project completion within specified time, cost and other resources. Networking planning can be done through adopting program evaluation and review technique. With the help of this, Furniture Supplier Company can determine the amount of time and cost allocated to varied activities. Thus, it helps in analysing the critical path activities.

3.3 Need for operational planning and control in producing furniture

It can be analyzed that operational planning and control is crucial in Furniture Supplier Company for the following reasons...

Project management

Here, operational planning is needed by firm for the aim of designing its project plans. However, business can manage its resources effectively with this. It also helps in making proper allocation of resources. Thus, Gantt chart method can be used in order to control the project. It helps Furniture Supplier Company to monitor the activities whether they are on right track or not.

Future forecasting

Furniture Supplier Company make estimation of future demand, sales and quantity of stock by operational planning. Thus, business is required to plan its future tactics on this basis.

Quality assurance

Organization needs operational planning and control for the aim of managing quality of its products and services. Business is needed to implement varied quality control techniques such as six sigma and variance analysis in order to maintain the quality standards within firm.

4.1 Designing layout for producing furniture and its operational outcomes

It can be considered that the possible layouts that are present to the firm are process, product and hybrid layout. In the product layout, the work situations and equipments are designed on the basis of product line that has to be manufactured. While in hybrid layout, it is the combination of product and process layout. For instance, the appropriate layout for Furniture Supplier Company is process layout under which similar activities are grouped together. In this, every department involves skilled employees that have expertise in executing particular activities. Thus, it helps in ensuring the quality assurance at every process. The layout of production process constitute with the attribute such as flexibility. It is because; with the change in product line, the process may also be changed. Through carrying out appropriate process, the end product can be prepared in order to satisfy the needs of clients.

4.2 Producing network plan and critical path

Network plan involves a range of activities that starts with executing the market research to the delivery of final product. Business can plan the activities so that it can keep a track on the time and cost that is attached with each action. In this, Furniture Supplier Company network plan is prepared for the packaging process.

4.3 Identification of approaches for project management and quality control

It can be evaluated that the approach that can be used for the aim of quality control can be of total quality management. Such type of method is critical in enhancing the ability of firm to deliver the products that have high quality. However, such approach focuses on the elements like customer focused, workers engagement and process centred and integrated system etc. in keeping the quality of product on track. Total quality management approach helps in providing training to workers so that tasks can be accomplished with proper standardization. Business can make use of this technique that emphasizes on process thinking. It helps Furniture Supplier Company to attain proper quality objective when it has systematic and strategic approach towards its vision, mission and goals. Moreover, continuous enhancement in the process by organization will help in managing and maintaining the quality of products within enterprise. TQM helps in defining the role of communication in upholding the superiority of furniture products and services.


It can be concluded from the research that operational management plays a crucial role in the success of firm. It helps business in enhancing the productivity, efficiency and quality so that the best results can be attained. However, three E's elements assist in enhancing the productivity and profitability of firm. Also, it can be evaluated that the five performance objectives underpin the operational management in Furniture Supplier Company. The network plan developed for the packaging process is designed that demonstrates the minimum and maximum time that is required for the aim to accomplish the project effectively.


  • Berger, A., 2011. Operations Management. GRIN Verlag.
  • Clegg, B. and Wan, Y., 2013. Managing enterprises and ERP systems: a contingency model for the enterprization of operations. International Journal of Operations & Production Management.
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  • Hazletta, A. S., McAdamb, R. and Walkerc, T., 2013. The role of operations management in public sector policy and practice alignment: a local government analysis. Production Planning & Control: The Management of Operations.
  • Jones, P. and Robinson, P., 2012. Operations management. Oxford University Press.
  • Kikwasi, G. J., 2011. An evaluation of construction skills in Tanzania. Engineering, Construction and Architectural Management.
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