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The aim of this course has been to give you an introductory overview of operations management. Operations is one of the central functions of all organisations The first learning outcome was that you should be able to ‘ define “operations” and “operations management” ’. I took the view in this session that operations embraces all the activities required to create and deliver an organisation's goods or services to its customers or clients.

The second outcome was that you should be able to ‘ identify the roles and responsibilities of operations managers in different organisational contexts ’.

The third outcome was that you should be able to ‘ identify the operations management aspects of your own work ’. Some managers have a specific and central role in the management of operations such as a production manager in a factory or an operations manager in a hotel chain. However, as you may have discovered from Activity 3, most managers have at least some operations management aspect to their job.

The fourth outcome was that you should be able to ‘ apply the “transformation model” to identify the inputs, transformation processes and outputs of an organisation ’. The transformation model is a tool for analysing any type of organisation in terms of the inputs, transformation process and outputs involved in the operations function. Section 2 of this session described the transformation model and Activity 4 gave you the chance to apply it to a number of very different organisations.

The fifth outcome was that you should be able to ‘ identify the operational and administrative processes in your own organisation ’. David Garvin's article discussed the way in which a process perspective can enable managers to gain greater insight into the management of organisational performance. As you read the extract I hope you took notes on how this could be applied in your own organisation.

The final objective was that you should be able to ‘ describe the boundaries of an operations system and recognise its interfaces with other functional areas within the organisation and with its external environment ’. In Section 3 , I extended the transformation model to include suppliers, customers and the external environment. I also drew an important distinction between the closed system mentality that keeps the operations function separated from suppliers and clients, and the open systems mentality where communication with customers and suppliers is encouraged.

Essay on Operations Management

Operations management is the process of managing the production of goods and services. Thus operations is a broad term that encompasses both hard-goods manufacturing management and service management.

Traditionally, the term ‘production’ brings to mind smokestacks, assembly lines and machine shops. However, the functional field of production and operations management (P/OM) refers to the broader idea of the producing activities of all kinds of organisations — manufacturing or service, public or private, large or small, profit or non-profit.

Operations management refers to the set of managerial activities that organisations engage in to create their products and services.

These activities were earlier called “production management”. In those days, “production” seemed to focus too narrowly on manufacturing. When managers began to expand their view of production to include services and other intangible products, the term “production and operations management” evolved. So “operations management” is rapidly becoming the generally accepted phrase.

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Operations and Conversion Processes:

Operations, as a conversion process, can be visualised as consisting of the elements shown as solid lines in Fig. 22.1. Let us examine the inputs, conversion processes, outputs and feedback and control cycle depicted in the figure from an operations perspective.

Product Outputs:

The primary driving force of operations management is the desired end- product(s). Operations managers and operative employees must have a clear and precise definition of the product(s), including the key product attributes, the important quality characteristics, and quality standards for each attribute.

They also need to know how many of each product are needed and at what times to meet customer demand. In other words, operations employees need a clear picture of what they are trying to accomplish in their day-to-day activities.

Conversion Process:

Conversion processes may involve any of several different types of technologies, and technologies vary widely. Petroleum processing in a refinery operation utilises a continuous-process technology; automobile manufacturers employ primarily a mass-production technology; an aircraft manufacturer uses unit or small-batch technology.

Operations relies on receiving resources from other parts of the organisation and from the external environment of business. Operations cannot occur for very long without continuous supply of inputs. Some of these resources are more or less permanent, such as buildings and land devoted to production, whereas others are transient resources that are consumed fully on a day-to-day basis, such as raw materials and office supplies.

Feedback and Control:

Operations management systems are directed toward achieving goals. Once operations goals are established, controls help the system conform to standards of efficiency and effectiveness. Managers obtain information for evaluating system performance by monitoring various stages of the conversion process, the inputs and the product outputs.

The control system must provide timely information so that appropriate actions can be taken. Deviations from control standards are a prime basis for changing the inputs, the conversion process, or even the product or service design.

Operations as a Management Challenge:

The problems they face revolve around the acquisition and utilisation of resources for conversion. Some familiar operations activities and roles include purchasing, production forecasting, work flow and process analysis, job design, inventory control, production scheduling, quality control supervision, and manufacturing management.

These activities and roles seek to achieve balance and consistency among the three elements: inputs, the conversion process and outputs. These elements, in turn, must be in balance with and consistent with the other functions of the overall organisation. Therefore, each organisation has different expectations of its operations function, and the operations function in one organisation has different capabilities from that in another.

A set of product output specification that cannot be achieved in one conversion process may perhaps be easily met in another. The capability of the process, then, must match the output goals. A mismatch requires managers to decide whether to change the goals, product or conversion process. Similarly, input resources must be consistent with and supportive of the conversion process and its product output goals.

The proper outputs flowing from the conversion process indicate that the operations function is effective. Such success is usually not an accident, or at least sustained success is not. To maintain successful operations the production system must extend well beyond the operations activities.

In Fig. 22.1, for example, the dashed lines show the completion of the monetary resource cycle, emphasising that consumed outputs create the monetary resources that sustain operations and all other activities of the organisation.

In other words, products must be sold. Because the available monetary resources are limited, managers try to allocate them in a rational manner among all the organisation’s activities, including the operations function, by developing plans.

2 Activities Performed by Operations Management
Operations Design (With Diagram)| Management
7 Most Important Features of Management
Production System: Concept and Models | Industries | Production Management

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Introduction

A contemporary organization strives to excel in lean production, customer-centric provision, flexible manufacturing, and large customization among others. The capability to attain these qualities aids organizations sustain their operations. Operation management is about transforming ideas into products and planning as well as controlling all structures and the systems that generate services and goods. Customers need products that can meet their needs and ensure they get value for money. Such products are supposed to be affordable, dependable, exclusive, and standardized. Effective operations management has the capability of adding value to its venture by increasing productivity, cost minimization, and development of quality products. Operations management ought to know the kind of customers they deal with in order to prioritize their needs. The purpose of this study is to analyze and discuss the importance of operations management industries.

Importance of Operations Management to Industry

All the business organizations place emphasis on how to flourish and survive in future. How an organization is able to manage its resources is what determines how it related to its external environment and the ability it has to meet the needs of stakeholders. Operations management is crucial in an industry since it helps in administration of industry resources. It is a vital part of the industry’s strategy. Operations management is of great importance since it exercises an approach that is systematic to the production of goods. For example, a manufacturer of an electrical bulb processes raw material though use of productive resources, however, the results are bulbs of different ratings (Mahadevan 4). As such, operation management offers an approach that is systematic in transformation of raw materials into quality products and generation of revenue.

Operations management is important in reduction of production costs. Whenever an industry produces a variety of products in large scale and uses the latest technology, the costs of production decline as a result of economies of scale.

MTR Foods is one of the fastest-growing companies in India dealing with food processing with a market turnover of US$ 20million (Mahadevan 3). The growth is the result of technological ability and the quality of its products. MTR deals in production of various products familiar to both domestic and the foreign customers. Most of these are ready-to-eat products that attract a large number of customers. Additionally, the manufacturing facility of MTR Foods is located at environs of Bangalore, where labor is guaranteed to be cheap.

Efficient operations management thus is fundamental in helping the industry improve its revenue earnings. This is achieved through production of quality products and increase in customer satisfaction. Operations must be flexible to adapt to changes required by customers. Industrial products are tangible and once made, it is difficult to change the products. As such, quality management is an aspect that is crucial in an industry. Perception of products plays a crucial role in the mind of customers regarding the quality of the company’s products.

The amount an industry invests in production of goods can easily be reduced through operations management. Operations management aims at reduction of costs and acquiring higher revenues through controlling and cautious operations. A lean manufacturing strategy is what helped Toyota Company eradicate unnecessary resources that were not adding value to its products. Operations management inspires innovations in utilization of industry resources and identification of non-value added resources. Technological changes have permitted industries to streamline processes, as well as improve on supply chain collaboration.

Majority of multinational corporations have enjoyed success in the global arena as a result of efficient operation managements. Toyota Company has achieved remarkable success for years as a result of its aggressive marketing and production of what customers in western countries want (Brown, Bessant and Lammings 31). Affordability, design, reliability and durability make customers across the globe refer Toyota cars to others from western nations. Spare parts are readily available as well making maintenance of Japanese automobiles easier. Toyota Company has been capable of value chain creation in its products as a result of its efficient operations management.

Operations management creates basis of innovation by establishing a foundation for knowledge and operations in the industry. Success of the iPod, Apple’s product was the result of its sleek design, which had the capability to hold a lot when compared to other devices of a similar size with the iPod yet they could not contain as many songs (Boyer and Verma 10). This benefit, together with marketing perspective, gave iPod benefit in unlimited market and pricing. Apple Company as well gained the foundation by helping the company introduce more versions, as such, gaining competitive edge in the industry.

In operations management, the constraints theory is equally fundamental since it helps the operations manager recognize imperceptible constraints that might hinder the industry from attaining its preferred goals. As such, operations management services on such constraints though it strategies on how they can be minimized. Constraints can either be external or internal. The operations manager needs to be in a position to always recognize issues offering many constraints to a firm and handling them first.

Any industry that has long-term goals uses its forecasting techniques to establish probable future operations. Operations management therefore is accountable for preparation regarding the industry’s future. Forecasting helps operations managers to formulate ideal plans and get rid of uncertainty in future. The need for balancing supply with demand is what necessitates the industry to forecast the market. For example, Toyota needs to exercise time series in order to forecast the trend in demand of SUVs as well as what will take place in a span of 3 years’ time. This will help in making an investment that can meet that demand. Additionally, it gives the operations manager enough time to carry out research as well as employ innovative techniques in the manufacture process.

Industrial products are fundamentally classified into two categories: necessities and luxuries. Necessities refers to products perceived as extremely essential while luxuries are products individuals can live without. Making products perceived as necessities and delivering them into the market is critical, since customers continue to purchase the items though there might be a shortage. Operations management therefore ensues necessities are available in the market always, at the right price and to the right customers. Luxury products necessitate operations management to be innovative, as such products keep losing fashion once they flood the market.

Every industry endeavors to distribute its products to a target market. This only happens when the industry is able to acquire raw materials, place them into processing plant and then, pack them as finished products. Production of goods in industries involves the transformation of inputs into finished products. The operations management has the responsibility to maintain a supply chain via high levels of shared working procedures and norms so as to increase operational fit between the industries (Brown, Bessant & Lamming 104). When H-P entered the PC market, it served as a manufacturer. Later, it opted to make a shift from manufacturing to assembling. The shift prompted the company to become rigorous in supply relations through its entire supply chain. Additionally, H-P merged with Compaq, its competitor in 2001 so as to consolidate its supply chain, leading to its success (107). Operations management is vital in placing an industry into a strategic position so it can sustain its competitiveness. Operations managers as well research on the products of the company and make a decision on what it should offer customers without disrupting the operations of the company. Samsung Electronics, in order to save its display business from being unprofitable in the future, made the decision to incorporate the flat-panel display venture to its semiconductor business (Ramstad and Lee). The aim of the merger was to hide the dwindling unit in the robust performing chip operation and also offer competition to other products by Samsung.

In economic terms, industries use operations management for purposes of analyzing explicit aspects of processing to the point where they can add value as well as place competitive cost. The industry, equally has to earn profits in order to satisfy shareholders. Transformation of the raw materials into finished products involves the addition of value, reflected in the course of pricing. Operations management takes into consideration all processes that are part of transformation, which includes innovation, research, packing, transport, mixing and packaging. For example, wheat is transported to a factory using trucks. It is ground into flour, mixed into dough then baked into bread inside the factory. Slices of bread are packed and packaged, to be distributed to customers. Operations management takes part in fixing a price in the value chain. Prices as well are set to a point where the customers can afford the products as well as compete with other firms.

Most industries face an increased demand for pertinent activities aimed at conservation of the environment. Customers, legislators and advocacy groups push industries to implement environmental conservation strategies, covering pollution, management of waste, re-manufacturing and recycling. The practice is one aligned to quality management, integrated in the process of transformation. A firm that is able to take into consideration environmental issues in order to create value for its products, as such, raisin expectation of shareholders. Environmental responsibility is a fundamental aspect of operations management. Firms train their employees on issues of the environment while embracing environmental technology so as to improve production. Operations management therefore benefits environmental management via cost reduction and customer satisfaction.

It is very important for an industry to conform to legal standards in the course of its operations. Conforming to such standards helps the industry to operate and safeguard its facility as well as minimize legal liability. Operations management helps keep in check changes that might occur in standards in order to advise the industry on the changes that need to be implemented. To ensure production efficiency, operations management needs to allow standard activities to begin early in the course of the processing life cycle so as to meet legal codes.

Operations management as well covers people. Ergonomics involves study of workers in an industry with the purpose of minimizing stress and reducing injuries while working. The ergonomics process is established by risk reduction strategies and the approach means all factors contributing to workers injury or illness need to be addressed and identified promptly (Smith 49). Ergonomics is necessary for purpose of checking the performance of a business. Several ergonomics risk factors can be easily recognized and the operations manager offers a solution to work through the team. Toyota Company plant in Georgetown, Ky., US experienced a change in design of its models which resulted to ergonomic inefficiencies and risks, especially with rear spoiler installation (52). The operations management of the company commissioned an external consulting firm to carry out an assessment of ergonomics risk. The consulting firm recommended that the company should design hand tools which could be used to harness wire installation. The tools that were newly designed allowed the mechanics to work on the trunk from outside eliminating waste motions and ergonomic risk while saving time.

Is Operations Management Rated sane to finance, Human Resources, R&D or Marketing?

Operations management achievements are related closely to human resources, finances, marketing and development as well as research. Operations managements works to reduce the costs of a firm and offers competition to other firms. As such, operating managers need to check on the finances of the firm in order to attain these goals. They make decision of the number of employees needed to carry out packaging and processing. Depending on an industry, operations management is important in the management of human resources and materials to attain the desired objectives.

Operations management undertakes research and development (R&D) in order to establish whether the products of the firm meet changing demands of customers and sustain the firm in the market. The operations manager is also fully responsible for determination of how much will be spent on research and marketing. An industry should not manufacture products if it does not understand its target market. Hence, it must plan on how it can reach its customers and increase sales.

Sample Essay on Operations Management: Conclusion

Operation management is essential, as it assists in the management of an organizations resources. It offers the key to achieve competitive advantage for an industry by offering quality, affordable and reliable products in the market. Customers as well look forward for products incorporating technology and offering value for money. Operations management is mandated with making sure the production costs are kept low and that the expectations of shareholders are met. Industries manufacture different kinds of products in accordance to their target customers. The industry strives to make adjustments to meet the needs of customers through research and innovations. A successful firm needs to invest on environmental conservation activities, as customers are attracted to products that meet high environmental standards. Operations management needs to invest in product design as well to attract more customers so they can buy the firm’s products.

Sample Essay on Operations Management: References

Was this Sample Essay on Operations Management useful? Would you like to get further assistance with your assignment? Contact us today; We are a leading academic research company, with a range of specialized services . From General Essays to Ph.D. Thesis, we guarantee your holistic help. Our prices are affordable and competitive. What is more, we have a collection of sample papers in every field just for you. Place your ORDER NOW ! You may want to consider checking our Essay Writing Services , Research Paper , Thesis Writing Services , Coursework Help , among others.

Boyer, Kenneth K, and Rohit Verma. Operations & Supply Chain Management for the 21st Century. Mason, Ohio: South-Western/Cengage Learning, 2010. Print.

Brown, Steve, J R. Bessant, and Richard Lamming. Strategic Operations Management. , 2013. Print.

Mahadevan, B. Operations Management: Theory and Practice. Upper Saddle River: Pearson, 2010. Print.

Ramstad, Evan and Jung-Al Lee. Samsung Combines Component Operations. The Wall Street Journal, July 2, 2011. Web. 6 March 2014. online.wsj.com/news/articles/SB10001424052702304584004576418732760372012

Smith, Scott. “Elements of Effective Ergonomics.” Industrial Engineer: IE 35.2 (2003): 49-52. Business Source Complete. Web. 6 Mar. 2014.

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Operations Management

I. INTRODUCTION Operations management refers to the activities, decisions and responsibilities of managing the resources which are dedicated to the production and delivery of products and services. Operations basically are activities, but it is usually considered that these activities are planned and coordinated since they normally require a certain scale of capital and human resources. Managing operations involves structuring and coordinating work. While this also includes and is applicable to most human activity, operations management is mostly concerned with the production and delivery of products and services. The part of an organisation that is responsible for this activity is called the operations function and every organisation usually have one, or a similar version of it, as delivery of a product and/or service is the reason for existence. Operations Managers are the people who are responsible for overseeing and managing the resources that make up the operations function. The operations function is also responsible for fulfilling customer requests through the production and delivery of products and services. To illustrate the importance of Operations Management to the success and continuity of a business venture, it is best to analyze an existing business as a starting point. In doing so, we are able to harvest actual accounts which can be assessed towards the principles and practices of a sound business operation. For this purpose, we will be studying a company called Saudi Makamin. The Company is principally involved in the business of chartering of full offshore support vessels to support our clients’ offshore oil and gas operations although they offer a range of support services to oil and gas companies. It is more of a service provider rather than a sales-based venture. Their services include technical consultancy, engineering, and design.

Their mission is to be a premier Oil & Gas services provider on national and international levels with a high standard of Corporate Social Responsibilities while maintaining profitability and growth and safeguarding shareholders’ interests. In the furtherance thereof, they aim to implement effective technologies, adopt progressive and best business practices and invest in Research & Development. To fully realize these objectives, they have an Operational Management department that monitors the flow of business and asses the efficiency of operational plans. This department is headed by the Operation Manager who will be responsible for overseeing the management and control of the operations for the company’s project by delivering the key targets and milestones. In addition, the Operation Manager ensures that the operational plan is executed.

II. THE COMPANY’S OPERATIONS, TARGETS, AND STRATEGIES In order to determine the operational targets of the company and what strategies they employ, it is necessary to equip ourselves with the services they provide. As a premier oil and gas service provider, Saudi Makamin offers the following: 1. Exploration and Integrated Studies Saudi Makamin supports their clients in the oil and gas exploration through its Geosciences Division which provides scientific geological, geophysical and petrophysics studies to assist the clients in the subsurface related challengers and projects. The Division currently provides a wide range of services including Log Scanning & Digitizing for various types of legacy logs. Integrated studies and analysis derived from Hi-Resolution 3D Digitizing & Imaging for core samples which includes Porosity and Porosity Partitioning, Effective/Absolute Permeability, Elasticity, Fluid and Wettability mapping, Mineralogy/Clay content, Asphaltenes/Bitumen content, and the dynamic properties of rocks (i.e. special core analysis such as relative permeability, capillary pressure, and imbibition and drainage curves). Other services include Supplementary Manpower and Consultancy in Geophysics, Geology, and Petrophysics. In addition, the Division through its investment and affiliation with Spectraseis, offers broadband technology applications for unconventional resource development and reservoir fluid monitoring achieved through delivery of new datasets derived from cutting-edge innovations in surface array and borehole passive seismic acquisition, processing and Imaging. The Division is associated with various local and international G&G specialized companies including Digitalcore, Spectraseis, Dedilog, KA CST, KFUPM among others. Their strategy to meet client satisfaction is to partner with other providers who are expert in these particular fields such as Upstream and Spectraseis. In general, this service is delivered through outsourcing.

2. Engineering, Designing, and Manufacturing Saudi Makamin; through Hunter Well Science (HWS); designs, manufactures and supplies downhole technologies for the Oil and Gas service industry. Their research and development team include experienced physicists and engineers located in Europe, USA and Canada. This highly experienced team has many patents and publications and all members have previous downhole design experience. HWS is the only independent supplier of a full featured Sigma and Carbon Oxygen Pulsed Neutron logging tool. It is fully combinable with all other HWS sensors therefore allowing users to compete in the high-end Advanced Reservoir Monitoring business. Aside from outsourcing, the company also employs supporting strategies to meet client satisfaction. They claim to have the following in place: All products designed in house by their highly experienced design and development team. Extensive development and manufacturing tests are done to deliver world-class products. Their products contain the most advanced electronics in the industry and operate on the fastest mono-conductor telemetry (communication) system on the market. They utilize a fully combinable PN & PL solution, a simultaneous Sigma and CO measurement from 3 unique detectors along with full Reservoir Geosciences support. They use standard Cased Hole Production Logging sensors supported by just 3 PCB’s. Internal temperature is recorded every 5 minutes when tools are powered allowing an accurate performance database to be developed therefore allowing scheduled board replacement to be implemented, avoiding costly in hole failures. Apparently, their main operational strategy in this particular service is to infuse the latest technology in their projects. They also practice proper recording of temperature of tools to avoid breakdowns therefore minimizing the cost of replacement and repairs. 3. Drilling and Wells Services Makamin provides workover, deep water drilling and top hole services to its clients. It has Four Rigs with capacities of 300 and 600 horse power (‘HP’). The Company is currently drilling water wells, but eventually plans to expand its services to the oil drilling segment. The Company also envisions to align its real time well monitoring services to its drilling services to enhance the value addition to the client. Additional provided services include; Oil Wells Workover, Shallow Water Wells Drilling, Water Wells Re-Habitation, Soil Testing, Pile Drilling, Auger Drilling, Reverse Circulation Drilling, Core Drilling (Mud or Air) and Seismic Purposes Drilling.?? As a quality control strategy, they aim to further enhance their monitoring procedures, knowledge, and technological support. The Company is also focussed towards the quality of work and follow high standards on health and safety of personnel. ??Saudi Makamin was awarded various drilling contract primarily by Saudi Aramco. Additional strategies are likewise in place to ensure client satisfaction. They include the following: Ability to provide the drilling need for various industries such as Civil, Agriculture, Oil & Gas, and Mining. Brand new fleet of rigs that meets International Standards & tough Aramco requirements. Distinguished by implementing strict HSE Policies & Procedures. Applies latest technologies in real time drilling operations monitoring remotely, which has been tested by Aramco. Portable rigs for fast mobilization and movement. 4. Marine Services Saudi Makamin Ventured with an integrated group of Specialized Marine and Offshore companies from around the world specifically from Singapore and Malaysia to create ‘Makamin Offshore’ which is a value added integrated Marine Company in Saudi Arabia.?? Saudi Makamin’s partners have a strong asset base and extensive international experience.?? Makamin offshore services includes Vessel supply and management, Diving support vessels and services, including Remotely Operated Vehicles (‘ROV’), Geotechnical vessels and survey, Marine construction and engineering services, Dynamic positioning diving support vessels, Work and accommodation barges and Crew boats, utility vessels and supply/support vessels. Aside from outsourcing or partnership with other companies which are regarded expert in these fields, the company ensures the quality of service through the following: Specialization in Remotely Operated Vehicles(ROV) Services and has available state of the art ROV’s for multipurpose use that can be mobilized to location in short turnaround time They maintain access to a fleet of various types of Support Vessels well equipped with Dynamic Positioning They provide add-on services such as Diving Support Vessels, Divers, and related services They employ fully experienced, IMCA & ADCI qualified personnel Maintain focus on meeting and customer expectations for quality, completion time and HSE 5. Production Services Pipeline Services Division The Oil and Gas pipeline services are capable to provide vertically integrated activities for oil, gas and water pipelines, including fabrication, utility installation, well site preparation, compaction, leveling and fencing.The Company has skilled and qualified workforce to accomplish its activities along with the necessary equipment and assets. Whereas the Division has the capability to carry out Lump Sum Turnkey Project (LSTK) engineering, procurement, and construction for niche pipeline projects and various specialized jobs such as Permanent Down Hole Measurement Systems (PDHMS) installation. Capability to undertake LSTK engineering, procurement, and construction for niche pipeline projects. Capability on undertaking various specialized jobs such as PDHMS installation. Adoptation of strict HSE and QA/QC programs. Diversification to include Cathodic Protection & Corrosion Services. Pioneering in RTR installation as replacement of carbonated pipes for Oil & Gas.

Industrial Inspection Division The Company provides conventional and Advanced Non Destructive Testing (NDT) services to Major clients such as Saudi Aramco, SABIC and many others. They recognize the fact that the industry is in need of Advanced Technologies & Services that can fulfil its current requirements and challenges; therefore, while the Company is enhancing and increasing its operational capacity for conventional NDT services, it is also investing in additional Advanced NDT technologies by increasing the qualifications of employees through training & certifications, cooperating with international NDT consultants to improve knowledge transfer and supporting local NDT industry by sponsoring seminars, workshops, conferences and empowering Saudization. The Division mission is to develop and sustain value-added partnership with thier clients by providing professional, cost-effective, precise and proactive NDT services. The Industrial Inspection Division has the capabilities to undertake all types of conventional industrial inspection services include RT, UT, MPI, PT, VT, VBT and PMI. The Division is also capable of providing Advanced NDT works, such as MFL, Phased Array, TOFD, Guided Waves and Tube Inspection. Additional strategies employed include: Implementation and adaptation of Advanced New Technologies & Methods to conduct NDT works along with conventional methods. Being one of the few in providing Tank Inspection through MFL Technology. In house capability & Certification to handle Radio Active Material. Ensure access to strong International Industry Network. i-Fields & SCADA Services Saudi Makamin has capabilities to deliver secure, real-time production data to the corporate desk-top via proprietary web-enabled Data Visualization software. No application software needs to be installed on the end-user’s computer. The service uses either conventional Hardware and/or wireless technology and web enabled data visualization tools. The operation’s success is guaranteed by the following: The Mono Transmitters can be installed in minutes into existing field instrument connections with no need for electrical power, cables or conduit. The Data Acquisition system is ideal for retrofitting existing "brown-field" sites as well as new field installations. A single unit can receive and manage data from 100+ field instrument transmitters. A variety of transmission options is available to reliably transmit field data. A single-source "end-to-end" solution for field data acquisition and visualization for the oil and gas industry. The Data Acquisition system has the ability to configure the system to interface with third party well site equipment. It is an integratable with Aramco internal network & security. It can be tailored to suites specific clients’ operational problems or requirements. It meets the Aramco’s latest wireless specifications. Nitrogen Services Nitrogen Services Division is Saudi Makamin latest newly launched business line; the division provides services which include Water Filling & Hydro Testing, Nitrogen De-Curding, De-Watering, De-Gassing, Nitrogen Purging – Cutting/Welding and Pressure Testing. Moreover, the division has skilled and qualified workforce and management with experience of more than 25 years in this speciality to accomplish its activities along with the necessary equipment and assets such as Skid Mounted 180K, 270K Heat Recovery Nitrogen Units, LIN Road Tankers and Tanks in different sizes to meet projects’ requirements. The Division assets are Brand new and equipped with the latest technology in the market. They have a wide range of pumping rate in the Onshore and Offshore – Zone II. Ensure capability of vaporizing and pumping Nitrogen at high rate/high pressure Ensure capability of vaporizing and pumping Nitrogen at high rate/high temperature. Comply with the onshore/offshore industry HSE safety standards.

III. CONCUSSION AND ASSESMENT In general, Saudi Makamin’s Operational Management can be summarized into four key strategies namely the following: 1. Utilization of new and updated technology in the delivery of their services. The aim of which is to be a pioneer amongst its competitors. This is managed through constant upgrades and efficient maintenance to minimize the cost of breakdown. 2. Outsourcing from other expert providers and partnering with other companies that are known to provide quality service in a particular field covered by their offer. This is managed through maintaining a good relationship with these partners and to a great extent, ensuring a mutually beneficial working environment. 3. Updating personnel knowledge of the trade and ensuring that Health and Safety regulations and other policies are observed. 4. Planning based on the the forecasted market requirements, in accordance with the plans and requirements of the clients. Short-term planning: Meeting deadlines, commencing operations as per clients’ targets, meeting and mobilizing the necessary crew, equipments and vessels to execute the project on time and within budget. Long-term planning: Stability of operations, achieving profitability from the project and continue to position the Company as the preferred contractor of choice through generating recurring businesses with the client Considering that the company is involved in a venture where the target market is lesser than that of a mainstream trade such as sale and production, it is easier to cope with fluctuations in demand. They are dynamic in responding to these fluctuations through a continuous process of planning, budgeting and forecasting for every department’s requirements to enhance control and flexibility on the execution of its various projects; and to enable adaptability and allocation of the resources to the business. Their main measure of ascertaining client satisfaction is the number of recurring contracts they successfully enter to within the fiscal year. On this basis, we can assume that client satisfaction is relatively high as evidenced by recurring contracts with one of the worlds’ biggest oil and gas company which is the Saudi Aramco. They have also maintained contracts for service provision with other noted leaders in the oil and gas industry.

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Operations management

Introduction Operation management contains several objectives; companies manage their operation with the aim of improving their organizational productivity, flexibility, quality, dependability, and for achieving cost benefits. Any organization who wants to evaluate its operations’ performance, these are the factors against which the performance should be evaluated (Barnes, 2004). The objective of the report is to assess the input/output transformation model of an operation function critically. For the attainment of this objective, Wal-Mart is selected for examination. Wal-Mart, a retail giant, is an American international retail company, which is involved in operating a chain of grocery stores, discount department stores, and supermarket. It had total 11620 units until 2015; the store is operating in 28 countries under 65 banners around the world. Currently, the store has total 620 stores in the United Kingdom, and the store has grown as the second largest supermarket of Britain. Wal-Mart has 169568 associates in the country (United Kingdom) (Wal-Mart, 2016).

How Operations Management, in manufacturing, service, private, public, and voluntary sectors, fits within the overall organization and with other functions.

Operation management is all about producing services and products in effective and efficient manners. Wal-Mart invests million dollars in its operations for lowering down its cost. The store just not understands the customer needs and its market, but also manages its operations in a way that it can supply services and products to its customers in cost effective and efficient manners. The store is recognized for its visual merchandising and store layout for making the customer experience better (Storify, 2016). The organization reduced its SCM links, started working directly with producers with the objective of cutting the cost, and quickens the flow of supplies. Wal-Mart went aboard as through the strategic sourcing the company wanted to find the products at the best price that can meet the demand of customers. The retailer arranged the delivery of the product through cross-docking technique. The store uses advanced technology for keeping the store clean with the objective of cutting cost in failure prevention and for forecasting demand for predicting inventory level. The aim of forecasting demand is to cope up with the demand fluctuation that could result in inventory waste if over purchased. These activities represent partial efforts of the company of its overall operation management. If the store lacks in these activities, it will result in empty shelves, dissatisfied customers and staff, lower quality, poor customer experience, and late deliveries (Lu, 2016).

Input/output Transformation Model

The Wal-Mart is a retail giant that does not produce products, but it produces service. Therefore, the input/output transformation model is presented from the perspective of the service organization. The input of the store is information regarding the customer purchase that is gathered from the sale of the point. This input (customer purchase data or information) is then sent to warehouse for inventory management. Data is used to procure most demanded products with the aim of delivering efficient services to customers. The procured material is loaded on trucks for delivering them to retail outlets. After reaching the retail outlet, the products are restocked on shelves by staff. In result of transforming the information, the retailer is able to deliver low cost and high quality products to its customers with excellent in-store experience in the shape of full shelves with the required material (Chandran, 2003). In this way, the operation management fits in other functions of the organization.

Strategic Role of Operations Management

The word strategic refers to important things, things that are essential in the action plan of an organization. Thus, the role of OM in a business is to make sure the attainment of organizational goals (Mintzberg, 2015). The OM plays an important role in the strategic characterization of items at Wal-Mart. Quality management is a part of OM, and it applies to Wal-Mart at three tier quality standards. This three-tire approach through OM helps the organization in making a decision on quality management. Operation management helps Wal-Mart in selecting the most appropriate process and capacity designing. Constant assessment of store capacity helps the organization in deciding to continue with existing design or in the adaption of the new. Operation management enables the company to select the stores’ location and design strategically so they can attain their cost minimization objectives. OM assists Wal-Mart in maximizing productivity for supporting the minimization of cost through selecting different options (Smithson, 2015).

Factors That Contribute To Good Process Design

Design refers to the arrangement and working of things before their creation. It is essential for the good process design that the objective of design is clear. Understanding the functions and expectations of the store is essential for good process design. Product design is an important factor and contributes immensely to good process design. Little change in product design has serious implication in transforming the process design. The aim of the process design is to make sure that the performance of design is gaining the set objectives. For example, of the objective of the performance is “quality” then the process design will aim to provide error free processing, appropriate resources, and capability of achieving the specification of services. The Wal-Mart aims to reduce the cost and offer products to its customers, at a lower possible price as compared to its competitors. Thus, the process design of the company is based on reduced supply chain activities. The company eliminated the process waste from its supply chain that resulted in lower resource cost, processing cost, inventory, and delay cost (Slack, Chambers & Johnston, 2010).

Operations Concepts and Techniques to Address Real Operations Problems

The process design of the new stores is not appropriate as the previous stores. Improvement of process design is about reducing the activities that generate waste. For improving the store process design, the Wal-Mart should use the process mapping technique. Through this technique, the store can eliminate the waste activities. The aim of the store is to offer products at every day low price to customers. Thus, the store can incorporate the digital service with its physical store so people can visits the store by sitting at home and can order what they want for delivery or in-store pickup. It will just not reduce the time waste that occurs in the result of waiting in queue for making payments, but will enhance the service delivery process and sale as well. For maintaining the quality (fresh items, wider product assortments, general merchandising, etc.) of the products, it is crucial for the store to manage the capacity. For the management of capacity, managers can use planning and control techniques.

List of References

Barnes, D. (2004). Operations Management: An International. UK: Thomson Perspective Wal-Mart. (2016). United Kingdom at a glance. Available from http://corporate.walmart.com/our-story/our-locations#/united-kingdom [Accessed 25 January 2016] Storify. (2016). Wal-Mart Store Layout and Visual Merchandising. Available from https://storify.com/qma4/walmart-store-layouts [Accessed 25 January 2016] Lu, C. (2016). Incredibly successful supply chain management: how does Wal-Mart do it?. Available from https://www.tradegecko.com/blog/incredibly-successful-supply-chain-management-walmart [Accessed 25 January 2016] Chandran, P. (2003). Wal-Mart’s supply chain management practices. Available from http://mohanchandran.files.wordpress.com/2008/01/wal-mart.pdf [Accessed 25 January 2016] Mintzberg, H. (2015). Strategy Bites Back ePub eBook. UK: Pearson UK. Smithson, N. (2015). Wal-Mart: Operations Management 10 Decisions, Productivity. Panmore Institute. Available from: http://panmore.com/walmart-operations-management-10-decisions-areas-productivity-case-study-analysis [Accessed 25 January 2016] Slack, N., Chambers, S., & Johnston, R. (2010). Operations Management. Italy : Prentice Hall.

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86 Operations Management Topics

Operations management orchestrates all the processes to produce goods and deliver services efficiently. On this page, we suggest operations management research topics for you to explore the multifaceted dimensions of this field. Go through these operations management topics to discover the role of operations management in organizational success.

🔀 TOP 10 Operations Management Topics

🏆 best operations management research topics, 👍 examples of topics in operations management, 🌶️ more operations management topics.

Samsung Group’s Supply Chain and Operation Management
Starbucks Operations and Inventory Management
The Role of Technology in Operations Management
Operations Management: Apple Case Study
Human Resource Strategy in Operations Management
McDonald’s Operations: Self-Service Kiosk Case Study
Air New Zealand Airline’s Operations Management
Operational Management: the Case of Apple, Inc.
Hard Rock Café’s Operations Management and Productivity
Apple Inc.’s Strategic Operations Management
Kodak: Operations and Innovations Management This paper provides analysis of Kodak’s situation using the 3S model, application to Kodak, providing strategic analysis, systematic analysis, and situational analysis.
Nissan Motor Company: Operations Management To ensure financial stability and a strong position in the target market, recently, Nissan has decided to reorganize its operations strategy.
Heathrow Airport’s Service Operations Management The study evaluates service management at Heathrow airport and evaluates actions and measures that have been taken to improve the service quality at the airport.
Samsung Electronics: Operations Management Performance Objectives In Samsung Electronics, it can be stated that one of the departments responsible for quality is Corporate Technology Office.
Operations Management: The Case of Concept Design Services Operations management is the approach to managing a range of resources that are used in order to manufacture certain products or propose specific services.
Financial Operation Exposure Management Principles There are many principles that a company can implement to counter financial operation exposure. The definition of operating exposure affirms that it involves unexpected changes.
Linear Programming Operations Management Linear programming operations management is a mathematical strategy that is employed for arranging scarce or limited resources effectively while performing various tasks.
Toyota’s vs. Coca-Cola’s Operations Management The adoption of proper operations management is an important success factor for leading global companies, namely Coca-Cola and Toyota.
Lenovo Group Ltd.’s Operations and Information Management The purpose of this paper is to provide an overview of operations and information management and related concepts.
General Motors Operation Analysis: Project Management Speaking of General Motors, the company’s operational objective is improving performance and the level of customers’ satisfaction.
Airbus Company Systems and Operations Management In the context of the Airbus and its integration within business, systems and operations management is of significant importance in diverse ways.
Local Food Venture and Its Operations Management Building a small business enterprise is a complex task. This case study examines a model of expanding a local food venture to a permanent location and franchise.
Azure: Service Operations Management Overview The operation that Microsoft nurtures provides customers with numerous cloud services that are assembled under the name of Azure.
Non-Alcoholic Beverage Industry’s Operation and Management The paper regards the non-alcoholic beverages sustainability in the context of company analysis. It discusses organizational hierarchy development and finance raising.
Hard Rock Café: Operations Management and Productivity This paper describes ten operations and performance management solutions at Hard Rock Café that help create the link between raw data processing and the final product.
WalMart Stores’ Operation Management Operation management is the process that transfers inputs such as raw materials and labor into output in the form of finished goods and services.
Operations Management Trends and Future Operations management has evolved and changed over the years, affecting areas such as manufacturing and service.
Operations Management in Business Operations management is described as the organization of processes used to produce and distribute products and services. There are five main objectives of operations management.
General Motors Company: Operations Management Concepts The present essay analyzes the current situation at General Motors and provides some recommendations for effective operations management.
The Concept of Operations Management Operations management (OM) is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary products.
Operations Management and Production System: Case of Olive Garden Restaurant The presented paper is devoted to the discussion of operations management and production system using the case of Olive Garden restaurant
Launching an Airline: Operations and Management Launching an airline requires a deep understanding of the market forces. The industry has many challenges, from stiff competition, to fluctuating oil prices, and policies that may hurt profitability.
Operations Management of a Care Facility for the Elderly Any institution dealing with the provision of care to dependent elderly persons should ensure that its strategies are broad enough to cover the wide range of needs of the elderly.
Lean Process and Operation Management The lean process applied along with the operations management is the popular paradigm that affects the functioning of companies and results in the rise of positive shifts in them.
Franklin Equipment Ltd Company’s Operations Management The purpose of this paper is to discuss the criteria used by FEL to assign members of the project team, the importance of international projects and possible ethical dilemmas.
Operations Management and Productivity Operation management aims at ensuring that functions in a business are conducted in the most efficient manner, so as the end results are satisfied customers and reduced cost of production.
Aspects of Operations Management Operations management is a vast and encompassing term used to collectively describe all business activities, which drive its internal processes.
Online Grocery Business: Operations Management The project can have one and more critical paths. When a project has multiple critical paths, project risks increase according to the number of paths.
Big Bone BBQ and Wicked Wings Restaurants’ Operations Management The current system of Big Bone BBQ is successful, but it does not realize its full potential due to a lack of automation that leads to imprecision and considerable wastage.
Operations Management Definition Operations management is an essential process that uses raw materials to turn them into goods and services. This phenomenon is connected with the supply chain.
Operations Management: Ford vs. Firestone This paper is an analysis of Ford vs. Firestone case “Death on the Highway: Quality Problems at Ford and Firestone” to unearth the operations management crisis in the two companies.
Transport Efficiency Through Operation Management Operations management is one of the management fields which are increasingly becoming relevant in the competitive business environment.
The Operations Process and Types of Training Management in the Army Training is a significant aspect of improving the skills of soldiers and preparing them for upcoming or potential operations.
Azzaz Shop’s Operations and Information Management Azzaz is a mobile phone and accessories retailer based in England, owned by Lewis. The business started with a single shop, which Lewis has grown into a chain of eleven.
McDonald Corporation: Operations Management and Productivity In all the restaurants under McDonald Corporation around the world, there are a number of operations that are related to the overall organizational strategy.
Metrics and Performance Measurement in Operations Management Metrics is indeed a powerful management tool in aligning company strategies and objectives and ensuring people are working towards a common direction.
Construction Company’s Operational Risk Management This work presents an operational risk assessment connected to standard masonry techniques and procedures in the development of five-story apartment blocks.
Oman Refinery Company’s Operations Management T report aims to analyse critically ORPIC’s existing operations management practices, focusing on such areas as HR, quality management, and supply chain.
Roche Company’s Operations Management This report examines three of Roche’s OM decision areas, compares and contrasts the organisation with another firm using the 4Vs of operations.
EBags Company: Operations Management Analysis EBags had big expectations for the opportunities that the European market supposedly had in store for the company since there was a niche that the entrepreneurship was going to fill.
Operations Management and Productivity It is certain that operations management is crucial for every business that strives for development. This field addresses an array of organizational processes.
Operational Management in Large Organizations Using the example of Zara and Kohl stores, the paper analyzes the most effective strategies that allowed companies to realize themselves as profitably as possible.
Operation Management and Value Chain in Healthcare One of the main challenges in healthcare is that service cost reduction should not affect health outcomes in patients.
Strategic Shipping Operations Management: Liquefied Natural Gas This research analyzes some commercial and technical strategies most beneficial to facilitate the transportation of LNG with specialized designed LNG tankers.
Operations Management Research Operations management is connected directly to the value stream and is thus tasked to maximize its effectiveness and efficiency.
Operations and Information Management of CC Music The given report outlines the main features of CC Music, a company founded by Chris and Clive. It focuses on the provision of specific services to bands that include social media marketing.
Operations and Supply Chain Management The principal task of this essay is to explain what can happen if a project stage is not completed and if a stakeholder decides not to participate in the project implementation.
Innovation in Operation Management – Personal Experience To overcome the different challenges faced by companies, they must put in place some strategies like differentiating their products or services from those of the competition.
Thai-Lay Fashion Company’s Operations Management The paper reviews operations management in business with reference to the Thai-Lay Fashion Company Ltd., which is situated in Hong Kong.
Operations Management in Thai-Lay Fashion Company Ltd. Thai-Lay is a textile manufacturing company in Hong Kong with its markets situated mainly in Europe. The company produces a wide range of ready-made garments for adults and children of both sexes.
Combat Stress and Operational Stress Management Combat and operational stress is emotional and physiological stress which is a direct result of dangers faced in combat or the mere tension of being in combat.
Introduction to Operations Management Course The “Introduction to management” course built a strong foundation of knowledge connected with the organization’s peculiarities, management strategies, and organization operations.
CB&I Firm’s Operations and Supply Chain Management CB&I is an American construction and building company that also supplies raw materials to various small and medium-sized firms.
Emergency Operations and Its Management This essay discusses emergency operations centers, and plans, preparing the populace, the press role, risk communication, and training and preparedness exercises.
Operations Management: Factors and Approaches Operations management is critical for any business because it can be used for effective work that ensures the possibility to meet the overall business objectives.
“Operations Management” Term in Academic Literature This paper is aimed at discussing the way in which the business notion of “operations management” is introduced in the academic literature.
Production and Operations Management Depreciation of products means lower prices for goods produced in mainland China. Products with a lower price may increase exports from both Hong Kong and mainland China.
Project and Operation Management Essentials Operation management can be defined as a system of theories and strategies aimed at optimizing the processes occurring in the setting of entrepreneurship or aimed at completing a specific project.
Nutmeg Enterprises’ Operations Management In the case study of Nutmeg Enterprises, the operational framework of the beverage manufacturer and distributor is provided.
Operations Management of Logistics and Supply Chain The effective operations management of logistics and supply chain can deliver various goals such as cost reduction, timely response, waste reduction, and improved profitability.
Worldwide Chemical Company’s Operations Management The current “fix it” approach maintained by the Worldwide Chemical Company is ultimately faulty. It leads to the decreased first-quality product yields and on-time deliveries.
American Workplace and Operations Management The paper reviews “State of the American Workplace” analysis by Gallup and provides applications of operations management concepts to improving employee engagement.
Abasco Company: Operations Management Although Abasco, Inc. has been developing at a rather fast pace in the manufacturing department, it has been showing comparatively low performance rates since recently.
The Oasis Company Operations Management The Oasis Company has been in business for quite a while (since the 1990s). The essential purpose of the organization under analysis concerns providing flowers.
Operations and Supply Chain: Management Course The course serves as a real eye-opener in terms of what gravity the choice of the operation strategy and framework has on the overall efficacy of an organization.
Canbide Corporation Operations Management Tools This paper focuses on individual problems and potential solutions of Canbide Corporation with an emphasis on the need to have managers who are experienced to use analysis tools efficiently.

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These essay examples and topics on Operations Management were carefully selected by the StudyCorgi editorial team. They meet our highest standards in terms of grammar, punctuation, style, and fact accuracy. Please ensure you properly reference the materials if you’re using them to write your assignment.

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Operations and Supply Chain Management Report

Introduction, literature review, difference between scm and om, operation strategy of toyota, sustainable competitive advantage, lean and agile.

The aim of the paper is to understand supply chain management (SCM) and operations management (OM) as strategies to gain sustainable competitive advantage. A brief review of the two is conducted ton SCM and OM literature.

Then, two case studies –

supply chain strategy of Wal-Mart and
operations strategy of Toyota are presented in the paper.

The last part presents a theoretical understanding, with examples, and shows how supply chain and operations strategies can become competitive advantage for companies. The paper also presents the difference between SCM and OM.

Supply Chain Management

Supply chain management is the sequence in which different stages of a process, to fulfill customer need of a product, is satisfied. Metzner, DeWitt, Keebler, Min, Nix, Smith and Zacharia defined supply chain as “a set of three or more entities (organizations or individuals) directly involved in the upstream and downstream flows of products, services, finances, and/or information from a source to a customer.”

The supply chain process is divided into five stages: supplier, manufacturer, distributor, retailer, and customer. In essence, the process of placing an order by the customer and the various stages that occur to deliver that product is exhibited in the supply chain.

This helps in streamlining the process of supply of the product from manufacturing to the customer and enhances distribution performance. Chopra and Meindl showed two basic types of supply chain based on the way processes are formed – cycle view and push/pull view.

The cycle view of the supply chain points out that the five different stages of the supply chain operate in a cyclical manner.

The push/pull view the supply chain with the pull process execution of the supply chain is initiated with the customer order while in case of the push process it is initiated in anticipation of the customer order .

The main advantage of an integrated system where the supply and the demand side are integrated to form a seamless process helps in monitoring and planning the operational process.

This is mutually beneficial for all the stakeholders as the risks and benefits are mutually shared. It enhances coordination among the supply chain members and increases transparency of the distribution process.

A proper supply chain management helps businesses to gain competitive advantage. Competitive advantages are the needs of the customers, relative to its competitors, that an organization aims to provide through its product and/or service offerings.

Organizations can gain strategic fit between their SCM strategy and competitive strategy by three methods –

understanding their SCM risks and their customers,
ascertaining the SCM competencies,
realizing strategic fit.

Power conducted a literature review to understand the SCM practices from a strategic viewpoint. The study demonstrated that it is important to undertake a holistic view of the participation and interaction of the participants of the supply chain.

Operations Management

Operations management is the process of designing and planning the products, processes, and supply chain. It entails undertaking proper planning to acquire, design, and plan resources to carry out a function.

Operations management (OM) is “a set of activities that create value in form goods and services by transforming inputs into outputs” . Leseure pointed out that operations management is essential for the performance of an organization.

Traditionally, the internal performance of an organization’s operations ahs been designed under cost, quality, delivery, speed, and flexibility. The literature on OM is replete with the debate over the importance of operations as a strategy to gain sustainable competitive advantage for a firm.

Bettley, Mayle and Tantoush points out that many researchers (like Michael Porter) have pointed out that an operations strategy is not enough to attain sustainable competitive advantage as operations can be emulated.

Researchers and practitioners have put stress on resource-based approach and they believe only a few “good” companies can sustain competitive advantage using operations strategy . Hayes and Upton emphasizes that the role of operations is much larger than just formulation of strategy.

Further, it helps the companies to position their product. The main question asked by customers while purchasing a product is ‘why should I buy it’.

Operations strategy helps the companies formulate a position for the product based on which the company streamlines the whole of its functioning. Thus, a positioning strategy helps the company identify how it would like to be differentiated in its chosen market from its competitors.

Therefore, by positioning the product better than the competitors and in accordance to the needs of the consumers a company can gain competitive advantage in a market.

Another method of gaining competitive advantage for a company is by executing the existing strategies better than their competitors implement.

For instance, shifting the place of production to a low-cost location may be a good decision in the short-run but to make it a sustainable advantage companies have to be very efficient to continue the strategy sustainable for long-term.

For instance, as a retaliation to Wal-Mart’s strategy to computerize its product procurement and inventory control system, Kmart failed to realize that sampling emulating the act will solve its problems. Soon Kmart realized that their employees were not trained to operate the systems.

Often SCM and OM are confused and used interchangeably.

However, both are completely different. SCM is the process of sharing resource information and planning logistic right from the point of procurement of raw material, to manufacturing, and then distributing it, until the product reaches the consumers.

On the other hand, OM is the process of planning and managing the resources required for the production and delivery of the product to the consumers.

In a way, SCM is a subset of OM for the latter is concerned with the production process apart from the delivery and distribution. More importantly, the difference between the two can be further delineated as follows:

SCM aims to reduce inefficiencies in the complete chain of processes from supply of raw material to delivery to the customer. On the other hand, OM has a broader range of activities in monitoring and planning the wider set of operations regarding the manufacturing of the product.
SCM deals with monitoring the raw material required for the production and ensuring that the right material is being delivered for production. OM deal with all that is necessary for the actual production process.
SCM is based on activities irrespective of the nature of the business while OM is concerned with the business the operations are being conducted.
More broadly, SCM is mostly concerned with the activities that occur outside the organization’s premises such as shipping, warehouses, distribution, while OM is concerned with the activities occurring inside the premises.

Though both are different, both are essential in maintaining a sustainable business strategy. Overall, it can be pointed out that SCM is a part of the OM. SCM looks into the operational logistics while OM looks into the overall picture of the manufacturing of the product.

Supply Chain Strategy of Wal-Mart

Wal-Mart has used supply chain strategy to gain competitive advantage for long time.

The following case study of Wal-Mart’s supply chain will demonstrate that a successful supply chain can reduce cost of product considerably and enable companies to provide product at highly competitive pricing. Wal-Mart is the world’s largest retailer with highest sales per square foot.

Wal-Mart’s success from a regional discount retailer to an international discount retailer has been mostly due to their efficient supply chain management.

Wal-Mart has assumed a successful leadership position in the global retail market mostly due to efficient management of its supply chain.

The supply chain strategy of Wal-Mart is based on four factors: vendor management, distribution channel management, technology, and integration all the processes.

Wal-Mart’s strategy has been to procure their products at lowest possible cost. Figure 1 below shows the supply chain strategy of Wal-Mart. Wal-Mart sources its products from different vendors worldwide and procures the products at cheapest possible cost.

This helps them to sell their products at the lowest possible prices. These products are then sent to the different warehouses at different places, and since then all the products are sent to the retail outlets according to the demand of each retail store.

Wal-Mart follows a push, supply chain strategy wherein the products are first sourced based on an anticipated demand from the customers. In case of Wal-Mart the main issue is sources the large quantity demand and at different places. Further,

Procurement

The first section to consider in Wal-Mart’s supply chain is their suppliers or vendors. For instance, Wal-Mart had problems with P&G as a supplier initially; for the latter’s organizational processes were too complex for Wal-Mart’s efficiency oriented culture.

In order to overcome this problem, Wal-Mart invited its partners to jointly develop vendor management, inventory management, and category management . Wal-Mart bypasses intermediaries to directly procure the products from the manufacturers to minimize cost.

Recently Wal-Mart has also invested heavily in making its supply chain environmentally compatible by choosing more environmentally conscious vendors and supply chain partners .

Distribution

Wal-Mart has its warehouses and distribution centers at different locations of the US and other countries where it operates.

The warehouses have a large inventory of the goods sold in the Wal-Mart outlets and each retail store is replenished with the stock of goods with efficient product demand forecasting system.

The company uses advanced technology such as RFID, hand held computer systems, and bar code, which makes keeping large inventory in the warehouses economical . In 2007, 80 percent of the products of Wal-Mart were distributed through 121 company owned distribution centers.

Only the suppliers for electronic and prescription drug products supplied directly to the stores.

The inventory management system used by all employees accessible through their hand held computers allowed them to access a particular product exactly to its location on a particular shelf increased efficiency considerably.

A company owned logistics systems with over 3500 trucks and 75000 employees in the logistics department, who helped the company to replenish its stores twice daily.

Further to reduce the time of logistics and make its supply chain more efficient Wal-Mart uses a technique called “Cross Docking” that allows the company to procure the product directly from the manufacturer and directly delivering it to the customer, almost eliminating the time and cost involved for distribution from warehouses.

Inventory Management

Due to large number of stores and huge scale of operation, Wal-Mart ensures that it uses proper inventory management system to ensure continuous flow of products.Further, it also has to regulate the inventory cost.

For this, since 1980s, Wal-Mart has used satellite communication systems that allowed the company managers to closely monitor the operations within each store and analyze the amount of product that has to be replenished at the end of daily operations.

Further, the company takes precautionary measure to reduce unproductive inventory by use of advanced technology such as RFID and bar code. It also allows the stores to manage the stock allowing small packages and well-timed price mark down.

The operations management system developed in Japanese, especially that in Toyota has been named as the Toyota Production System (TPS). The lean management system developed by the Japanese manufacturer demonstrates the current state of operations management.

The main point that one must understand before undertaking a study of the TPS is that the company did not consciously adopt it, instead it grew naturally through its operations over five decades.

The operation strategy of Toyota is based on a strong interaction of the operations management as the core strategy and other disciplinary interfaces . TPS can be descried through four rules according to Spear and Bowen (1999) –

All work conducted by the company must be defined in terms of “content, sequence, timing, and outcome” .
All customer-supplier relation must be direct and consent to accept or reject the order must be defined in a simple yes-no process.
The way a product is produced and delivered must be simple and direct.
Employees at the lowest level of the organizational hierarchy make all improvements in the products.

These four rules greatly simplify the operational process and make it extremely flexible. The TPS method ahs been summarized in five steps –

long term vision,
continuous improvement (Kaizen),
going back to the source to find out the facts (Genchi Genbutsu),

TPS is based on two key concepts that Toyota follows – just-in-time (JIT) and stoppage of production in case defects are identified (Jidoka).

JIT emphasizes on the continuity of production with maximum supply of inventory and raw material for continuous, uninterrupted flow of production. Further, the TPS system also aims at elimination of any excess waste such as overproduction or inventory.

Toyota aims for change in the operational strategy and a flexible strategy over a longer period rather than short run cost effectiveness. The total quality management (TQM) strategy employed at Toyota enables it to integrate its manufacturing operations with other disciplines (see figure 2).

The Toyota production line is designed specifically to ensure that once implemented, the plan does not change until the process is specifically redesigned. Therefore, in case of installation of a seat in a car, if plastic bolts are required for fixing the seat, the employee orders it from the specific handler.

The supplier makes request for the bolts with his own suppliers and sends to the designated person.

According to the Toyota operations strategy, the bolts will not be delivered to the next available person or machine but to that specific person, and if he is not available, there exists some problem with the production line and it is redesigned .

The operation strategy in Toyota is not based on one specific aspect but encumbers all the management disciplines to make it a complete process. Thus, Spear points out that it is impossible to understand how TPS works until one immerses oneself in the practical process of the operations .

The competitive strategy of a company defines how a company aims to satisfy its customer needs through its products and services . Competitive advantage, therefore, is a means of building competencies in a particular business. Building barriers to prevent imitation of the strategy can help companies achieve sustainable competitive advantage.

Research shows that companies who stress on supply chain strategy as a primary strategy have a high level of sustainable competitive advantage and organizational performance .

The companies that use SCM as their core competency usually operate based on the following aspects: supply chain integration, information sharing, cross-functional communication, and supplier involvement.

Efficient supply chain management is based on demand forecasting, strategic planning, and apposite inventory supervision . For instance, consider the case of the adoption of RFID in supply chain of Wal-Mart. Emulating Wal-Mart, Kmart too adopted RFID for managing its supply chain.

However, the new technology created complexities for Kmart, as the people using the technology were not adept to use it.

Further, Wal-Mart’s supply chain strategy has given the company many other sustainable competitive advantages such as low cost procurement, optimal inventory, and better in-house brands.

The methods that a company must employ to make their supply chain strategy competitive are –

A company must remember to collaborate with their supply chain partners rather than competing with them. The success of each stakeholder of the supply chain will have a positive impact on the supply chain’s success.
A company must integrate all the process together and preventing compartmentalization of functions. In case of certain companies, employees loose focus and start identifying themselves with the function rather than with their company. Therefore, integration of the culture of togetherness is important to gain competitive advantage.
A company has to keep the supply chain as simple as possible to gain competitive advantage out of it. For instance, incorporation of ERP to the supply chain may be helpful to simplify the processes, however, one may be enamored by the technology and add up non-essential tasks to the supply chain making it complex.
When a problem occurs it is important to look into the issue rather than treating the symptom leading to the problem.
A company must create constant vigilance to track cost drivers in the existing supply chain.

Organizations can achieve sustainable competitive advantage through adopting proper operations strategy. We exemplify the case of Toyota to understand the issue.

Toyota’s operation management is unique and it is difficult to understand, as it is believed, because it was not imposed on the company but evolved through decades of operation. Emulation of such a strategy is difficult for it does not work on a set formula.

Therefore, in order to achieve sustained competitive advantage out of operational strategy a company must allow it to develop through its organizational culture and integrate it within its system rather than imposing it from outside.

The main criterion of an agile supply chain is the emphasis on time as a competitive advantage. In terms of competitive advantage, it is important for a company to choose between agility and lean (see figure 3).

Figure 3: Agile and Lean supply chain.

Agile supply chain is one which has the four characteristics described in figure 4. An agile supply chain must be market sensitive, implying it can understand the changes in market demand. Such supply chains rely on demand forecast, rather than actual demand .

Use of information technology helps the company to create a virtual supply chain that reduces inventory and increases use of information.

Process integration is essential, as it enhances coordination between buyers and sellers. Further, all the partners of the supply chain are closely linked within the network.

A lean supply chain is one that emphasizes on doing more with less . It is often used to show lean manufacturing, which incorporates just in time approach to manufacturing. One such example is the manufacturing process of Toyota.

SCM and OM strategy have assumed great importance for businesses today. However, the adoption of either or both the strategies is business specific.

For instance, in case of an organization like Wal-Mart an agile supply chain strategy is more conducive as it provides it the agility and flexibility to adapt to the ever-changing demand of the market.

On the other hand, for a manufacturing based company like Toyota with few product offerings but large investment requirement a lean production system is more appropriate.

Either of these strategies can be turned into sustainable competitive advantages by building barrier against competitors emulating the strategy.

Bettley, A, Mayle, D & Tantoush, T 2005, ‘Introduction to Theme 1: Operations as a Strategy’, in Operations Management: a Strategic Approach , Sage, Thousand Oaks, CA.

Byrnes, J 2003, Supply Chain management in a Wal-Mart World . Web.

Chopra, S & Meindl, P 2007, Supply chain management: strategy, planning, and operations , 3rd edn, Pearson Education, Upper Saddle River, NJ.

Christopher, M 2000, ‘The Agile Supply Chain : Competing in Volatile Markets ‘, Industrial Marketing Management , vol 29, no. 1, pp. 37-44.

Hayes, RH & Upton, DM 2005, ‘Operations-based Strategy’, in Operations Management: a Strategic Approach , Sage, Thousand Oaks, CA.

Heizer, J, Render, B & Rajshekhar, J 2009, Operations Management , Pearson Education, New York.

Leseure, M 2010, Key Concepts in Operations Management , Sage, Thousand Oaks, California.

Li, S, Ragu-Nathan, B, Ragu-Nathan, TS & Rao, SS 2006, ‘The impact of supply chainmanagement practices on competitive advantage and organizational performance ‘, Omega – International Journal of Management Science , vol 34, pp. 107–124.

Mentzer, JT, DeWitt, W, Keebler, JS, Min, S, Nix, NW, Smith, CD & Zacharia, ZG 2001, ‘Defining Supply Chain Management’, JOurnal of Business Logistics , vol 22, no. 2, pp. 1-25.

Plambeck, E & Denend, L 2011, ‘ The Greening of Wal-Mart’s Supply Chain ‘, Supply Chain Management Review , vol September/October, pp. 16-23. Web.

Power, D 2005, ‘Supply chain management implementation and integration: a literature review’, Supply Chain Management: an International Journal , vol 10, no. 4, pp. 252-263.

Spear, SJ 2004, ‘Learning to lead at Toyota’, Harvard Business Review , vol 82, no. 5, pp. 78-91.

Spear, S & Bowen, HK 1999, ‘Decoding the DNA of the Toyota production system’, Harvard Business Review , vol 77, pp. 96-108.

Toyota 2012, Toyota Global Vision and Strategy . Web.

Voss, CA 1995, ‘Operations management – from Taylor to Toyota – and Beyond? ‘, British Journal of Management , vol 6, no. Special, pp. 17-29.

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