Operational management of an enterprise concerned with main function i.e. controlling and designing the whole process of production. Managers in this department provides essential facilities to all departments of a company in a proper way. This would help in carrying out entire operations. Along with this, they help in utilising available resources of organisation like raw materials, manpower, capital, labour and more (Robichaud and Anantatmula, 2010.). All these procedures help in making continuous improvement in organisational system through which better outcomes can be occurred. The main function of operational manager is to make better products by converting raw materials into finished one. Present assignment focuses on how employers of a firm make project and complete assignment in a given time period. For this assistance, Morphy Richards Company has been taken. It is a UK based organisation which deals in electronic market and sells home appliances like refrigerator, washing machine, heater and more. This time it wants to enter into TV sector, so a Project Life Cycle has discussed in report also.
P1 Critical review regarding implementation of operations principle in organisation context
In an organisation, the main function of operational management is to formulate an action plan in a proper way. Along with this, they build strong strategies and policies in order to execute plan appropriately. They use special techniques and approaches which helps in completing a project successfully (Ramasesh and Browning, 2014) . Since all departments of a company are interrelated with each other, therefore, operational managers used to discuss about current situations of association to them. They organise a conference meeting with managers of all divisions and discuss with them about new project as well as strategies and policies used to accomplish the same. After then, all divisions inform workers of their section with proper communication so that they can understand new objective of organisation. Through this, employees can support efforts of them in higher manner to accomplish desired goal.
In context with Morphy Richards Organisation, it is a manufacturing company of UK which provides domestic products like refrigerator, juicer, washing machine and more. For achievement of better profitability, this firm wants to manufacture TV products of large screen i.e. 58 inches at marketplace. For this assistance, managers of operation department make a proper plan by concerning on following points:-
Operation Management Principles:-
Reality- Managers of operation department used to concern on present situation of company first by surveying at marketplace like how its products going on. This would help in identifying the area where problems are persisting more and which affect profitability of association. After identification, they find solution to resolve such issues instead of back out from them.
Organization – As stated out before, an association has various departments whose functions are interrelated, therefore, managers of all divisions need to work in collaboration to resolve such problems (Pemsel and Wiewiora, 2013) . This would help in finding a perfect solution of issues which could be cost effectiveness also.
Fundamentals – When fundamentals of an organisation are in favour of humanitarian as well as based on ethical business, then such organisation has gained higher productivity of workers. Along with this, it would support management in keeping proper discipline in office area.
Accountability- Without proper accounts, an enterprise cannot measure its profit or loss. Along with this, employers also fail in controlling finance (Ogunlana, 2010). Therefore, accounts departments of enterprise set rules and obligations in a proper order. For this process, they used to compare metrics of actual outcomes with expected result. This would help in analysing business structure in a proper manner through which they can take actions accordingly.
Variance – This part reflects differences occur between expected outcomes to occurred one. Therefore, operational managers are used to obtain less variation which will help in promoting creativity. But if they fail in doing so, they have to modify entire system.
Causality – Normally, person associated with organisation faces various issues like shortage in capital, urgent shipments, expenditures and more. All these aspects demanded them to pay more attention in order to carry out operations in a proper manner. Along with this, for resolving such issues, they should take proper actions.
Managed passion – People who are anyhow associated with business of a company like as employees, employers, stakeholders, shareholders etc. give their support in running operations in a desired manner (Pade-Khene, Mallinson and Sewry, 2011). Therefore, Human resource management of firm are used to recruit best talented workforce in workplace so that higher outcomes can be obtained.
Humility – In order to obtain productivity of workers, managers should provide them healthy and safe working environment as well as discrimination free atmosphere. Instead of look out their weaknesses, HR managers are required to motivate them and appraise their part of work. This would help in building enthusiasm among them as in a firm which helps people to work well.
Success – While success of an organisation can only be measured by number of customers who consume its products or services. Therefore, managers are needed to provide them high qualitative services along with give them products on affordable prices rates with various type of discounts. In electrical business, customers are always looked out on getting appliances on discounts with different type of offer. Thus, Morphy Richards Company used to provide timely coupons and discounts to people in order to attract them and gain their retention for longer period of time.
This approach is used by managers of Morphy Richards in order to detect issues in productions by using various methodologies. Along with identification, it gives proper techniques to remove errors in products and make them defect free (Mir and Pinnington, 2014). This would aid organisations like Morphy Richards to improve quality of commodities in a better manner. Therefore, six sigma approach is more useful in manufacturing sector which is beneficial in reducing cost and time to produce high qualitative product. The elements of this tool includes Define, Measure, Analyse, Improve and Control (DMAIC), procedure of all these can be explained as:-
Define – It is the first step of improvisation, in which demand and need of customers are defined in a precise manner. Along with this, it also gives proper direction used to complete the same.
Measure – This stage used to measure current state of production along with modification happen from starting to real state. In addition to this, it also evaluate requirement of resources used to make production better.
Analyse – This part identifies problems occur in operations of a company which further aids in examining needs of alterations in the same (Burke, 2013).
Improve – Under this phase, managers analyse requirement for changes and possibilities of improvisation.
Control – It is the last phase which provides better solution to control entire activities of production in a better way (Chen, and et. al., 2011). Through this process, operational manager can meet demand of people in a given period of time.
By following this principle, operational managers of Morphy Richards Company generate new idea in improving the production in a better manner. This approach gives five principles as- Define Value, Map value stream, Create flow, Establish pull and Pursuit perfection. All these things helps in manufacturing new products as well as launch the same in a proper way. As per current scenario, this enterprise seeks to enter into new market area by manufacturing TV appliances of big size. Therefore, lean principle helps in achieving the same in following way:-
Define Value – This phase of lean principle defines desires and needs of customers living at a particular place. Along with this, it also identifies income level of consumers which helps in determining at which level they can buy products. With this assistance, managers of Morphy Richards requires to focus on utilising the resources as well. This would aid in reducing cost of manufacture and wastage also.
Map Value Stream – This principle provides an idea and a proper direction which construct on map and process flow. This would help in necessary steps in each stage of PLC for accomplishment of desired goals (Corder, McLellan and Green, 2010). These phases include buying raw materials and resources to deliver finished product to customers. This would aid managers of Morphy Richards in reviewing entire process of designing, manufacturing, allocating work to human resources, providing effective services to people at marketplace and more.
Create Flow – Under this phase, all physical process of new production flows in a systematic manner. This would help in eliminating barrier which comes usually in such type of operation so that demand of customers can meet in a proper way.
Establish Pull – Procedure of this principle is same like just-in-time approach i.e. all services are provided in a precise manner as per demand of customers. This would help in satisfying needs of customers on time.
Pursue Perfection- As all products of a company cannot manufacture in same order, therefore, managers of Morphy Richards are required to make some modification in technology. Through which perfection among commodities can be pursued.
P2 Continuity in improvement plan based on review and analysis
Continuous Improvement And Its Meaning
Every enterprise needs to make changes in system, production, operational activity and other part of organisation (Cruz and Marques, 2011). Through continuous improvement, it will manufacture and provide high quality of products as well which satisfies the needs of customers in a proper manner. Therefore, for making modification in business structure, managers of Morphy Richard need to analyse situation of marketplace, demand of customers as well as perception of them regarding with features of existing commodities and more. Along with this, for creating alterations, they should make a proper plan and discuss aspect of all elements with employers and employees with proper communication. Through this process, managers can achieve success of desired goals in a proper manner.
CONTINUOUS IMPROVEMENT PLAN
Recent performance level
Improvement in strategies
Lack of promotional activity has impacted a lot on sales performance of Morphy Richards Company (Fleming and Koppelman, 2016). As due to less marketing, it fails to gain attraction of more customers towards its products and services which is necessary for increasing profitability of firm.
Due to less advertisement, people at marketplace didn't know much about new products of a company. Especially in context with TV products, generally people used to make proper survey before purchasing such commodities.
In order to launch new product at marketplace, marketing manager of Morphy Richard needs to properly advertise the same in a proper manner. They can promote commodities using various sources like advertising on TV and social sites. Along with this, give details of new features of products on website of company and other applications appropriately.
After sales services
When a company sell products to customers then generally it avoid to listen problems of them which may persist after availing services of such goods.
People at marketplace usually seeks to get domestic appliances on special discounts and offers as well as with more than one year of warranty.
For completing desire of consumers, managers of present firm needs to provide its new products with amazing offers. Along with use some special techniques to convince people to buy their commodities as well.
Continuous improvement plan and its effect
This improvement plan of Morphy Richards, aid in carrying all business operations in a perfect manner. This plan help employers in generating new ideas as well as way to turn it into business concept. It also support in making new policies and strategies as well as implement them on workforce so that better outcome can be obtained. Along with this, managers of this company needs to analyse situation of marketplace, current trends and requirement of changes etc. This would help in evaluating what they have to change in business structure and existing system of organisation. out its production and operation in a better manner (Garel, 2013) . In this context, Research & Development of this association used various techniques in evaluating needs and desires of customers, purchasing power as well as techniques for achievement of all.
Through this plan, it has evaluated that currently Morphy Richards needs to spend more on promotional activities and use special techniques to attract customers. In addition to this, they should change tricks of marketing for selling its commodities. In this order they can organise special campaigning for convincing people to buy products. After selling commodities in desired way, they should open new outlets at different place of market. These outlets are needed to provide solution to problems which may perceive by customers who have purchased new products. Service provider in these outlets should provide proper solution to different queries of people in an effective way. This would leads to increase brand image of company with high efficiencies.
Effective strategies for implementation of continuous improvement plan
In order to execute all activities of a plan in a proper way, managers are need to consider following points:-
Good employee-employer relationship- Changes in any aspect of business structure mostly impacts on workers and their part of work. It generates insecurity in them which arise various type of conflicts and resistance. Therefore, managers are required to organise a proper meeting with employees and inform them about all type of modification, strategies and policies. Along with this, rather than impose, they should convince them to adopt changes and work on new system (Gunasekaran and Ngai, 2012) . Further, they should make proper interaction with investors also who will help in providing funds required to manufacture new products as well as whole procedure of production.
Proper communication channel- In order to make proper interaction with customers, managers should open service providing outlets and communication channels. Through this process, they can connect with consumers and determine their needs as well as retain them also for longer period of time.
Priority to employees need- Managers should give proper attention to employees who give their contribution in making improvement plan successfully. They should identify needs of workers for completing the task as well as provide essential training to complete needs accordingly. This would help in reducing chance of resistivity as well as retaining high talented workforce.
P3 Stages of PLC with business case, project plan and work breakdown structure
As per present scenario, Morphy Richards wants to enter in new television market by manufacturing TV of size 58'. For completing this wish, its managers have made a proper plan in which all activities are mentioned required to set up (Kerzner and Kerzner, 2017). For execution of such plan, they should determine some techniques which are available in marketplace used to launch a new product. Since in marketplace various sources are presented, therefore, employers of this firm require to choose the best one from all.
In context with TV appliances, people always seek to get creative, innovative and unique features as well as on affordable rates. Therefore, operational managers are required to formulate strategies and policies by analysing techniques of competitors used to attract customers. This would help in generating better idea for promotion. In this assistance, they can use following technique:-
Product Life Cycle (PLC): This cycle includes four stages which starts from manufacturing to deliver the product to customers. These stages gives complete information of activities done in marketing plan. It can be described in following way.
Product life cycle stages
Introduction stage- It is first stage of PLC which should be carried in proper way as rest of the steps are depended on this. In this phase, managers are required to make appropriate plan used to recognise an overview of new products. For this process, latest tools and technologies should be used to make it more effective and obtain better outcomes (Lenfle and Loch, 2010). For production of a TV set, generally it takes 4 to 5 weeks for launching at marketplace.
Growth stage- This stage shows that certain product gains stability at marketplace as well as shows growth rate of new commodities. Since new product of this company is of bigger size, therefore, it will take 2-3 weeks to become stable and achieve desired growth rates.
Maturity stage- In this third stage of PLC, it is required by marketers to use special techniques of advertisement and convince people to buy products. For making new strategies, usually near about 10 to 20 days.
Decline stage- This is the last phase of life cycle which shows that such commodities are now failed to acquire more customers towards it. It affects on sales performance as that commodities become old so people demands something new again.
P4. Effectiveness of PLC in application of project
Usually when a company launches a new product at marketplace, then its has faced various problems and barriers in that. Along with, this procedure takes a long time, resources, money and more to carry out whole activities in a proper way (Mir and Pinnington, 2014). Therefore, for making whole process in better way, operational manager play an important role. They carry out various operations for making new production successfully. It includes surveying at marketplace, determination of demands of customers as well as their purchasing power, usage of appropriate techniques, tools and latest technologies etc. In addition to this, they make a proper plan for improvement in business structure which includes how organisation can complete its wants. It reveals about new objectives and goals also.
In addition to this, using Product Life Cycle methodologies, Gantt Chart, Work Breakdown Structure and more to accomplish whole task in a proper way. Through these techniques, they can make a proper investigation about procedure of whole activities (Lindström and et. al. ,2012). In context with Morphy Richard, managers are needed to make a perfect team in every department who help in completing assigned task in a proper manner.
This entire project has made to see the requirement of innovation in a company. It has reflected that in order to increase sales performance of organisation as well as gain profitability, managers used to make changes in production and business structure. For this process of modifications, they have made a proper plan to analyse situation of marketplace. This would help in determining demands of customers and method through which they complete the same.
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