Element Operation Management Business Assignment
Element Operation Management Business Assignment Operation management involves responsibilities to manage the resources who are devoted to the production and delivery the goods and services. Here, the term Resources refers to people or employees, equipment, materials, etc. Through Element of Operation Management in Business Assignment we will discuss about the Operation Management in business. Such as, it’s importance, understanding the planning, typical production process. Operational Management is an essential part to the Organisation. It focus towards the production and services of Organisation. It it’s properly managed , the Organisations will run as smooth and it will maintain a good relationship in Market but if it’s failed to manage the Organisation will get suffer lots. A Supercell is a Finnish mobile Game Maker who produced the few hit games and delivered into the market. We produced more games and have managed the Operational management as properly to get an effective operations which leads the business to profit and we maintained the good records on market (Schwarz, Hall and Shibli, 2010).
Task 1 – The nature and importance of Operation Management and its key elements
1.1 The importance of Operational Management to Supercell
Operational Management is an essential part to the Organisation. It focus towards the production and services of Organisation. It it’s properly managed, the Organisations will run as smooth and it will maintain a good relationship in Market but if it’s failed to manage the Organisation will get suffer lots. A Supercell is a Finnish mobile Game Maker who produced the few hit games and delivered into the market. We produced more games and have managed the Operational management as properly to get an effective operations which leads the business to profit and we maintained the good records on market (Schwarz, Hall and Shibli, 2010). Through the Operational Management the Supercell achieved and taken the business into profit. The Operational Management advantages are as follows,
- It helps to reduce cost of the products and services as efficient.
- It will increase the revenue through the customer satisfaction by producing the quality in business.
- Through reducing the cost of products, it will reduce the investment amount which is need for the production in the business.
- It provided basis of Innovation through strong operations and knowledge of the process.
In the Supercell entity the operation management will make the further changes for the management to make the rational developed approach in achieving the business targets and dimensions early and favourable. It helps in the market development and making the proper arrangement of the allocation and distribution of the resources to make the organization stable and developed. They are also helpful in the Supercell organization with the cost cutting measures making the efficient and effective changes in the organization for their future and global growth.
1.2 Need to produce safely on time, cost, quality and within the law in Supercell
There are three basic needs for production and delivery. They are Time, Cost and Quality. These are the basic busniess objectives for the Operations. Goods are needed to be produced on time and safely with estimated cost and with quality which comes under the policies of the Supercell and it will bring the customer satisfaction. Supercell always analyses the production timing, cost, flexibility and quality. More over our productions will target the customer satisfactions.
Produce on Time:The production on Time is must. The Supercell will produce the mobile game application and deliver it on time as customer expected (Jones and Robinson, 2012). Their benefits on timely production is based upon few benefits. They are,
- Through speeding the operations on production it will reduce the inventory and it will increase the liquidity.
- Without about the future trends it will reduce the risk factors.
- It will give slack time for production.
- It give advantage by giving more competitions.
Produce to CostThe products of the cost will be fixed lesser than the competitors. The cost of the product will be calculated by estimating the cost of producing the goods, to manage the outputs, resources, etc. The cost of the products should manage the producing cost. The cost may vary according to other objects like Quality, Time and flexibility.
Produce to QualityThrough analysis, the production should be deliver in expected quality which satisfy the customers. Our Supercell always deliver our production with high quality which is more than the expectations of customers. Through the Operational Management the quality will be analysed according to the cost and time before the production begins. Hence, our products will fit as Worthy for price, Perceptions and it will support few types of services.
1.3 Link between operations management and strategic planning as it concerns Supercell
|Decisions||Operation Management Planning||Strategic Planning|
|Decision Type||Here the planning is based on the operational or tactical method.||Here the planning is always Strategic method as dwelled in the Supercell organization in the present scenario.|
|Decision Authority||The decision Authority for operational management is may be the middle or lower management.||The management is from the top level to bottom level or from the strategic level to the operational level in the Supercell organization.|
|No. of Decisions||Through this, it will provide more number of decisions and rational approach.||But in Strategic planning we are limited with the number of decisions in context with the Supercell organization.|
|Scope||Everyone has the rights to take decisions and can suggest for the implementations. It may help even in small projects too.||It will influence the strategic management which made the decisions to bottom line and it will impact the performance of the organisations.|
|Time Span||Within the time, the plan will be decided and proceed for implementation in the same cycle or even daily.||It take more time from the operational managemnt to implement the plan. It has few more procedures to begin the implementations.|
|Risk Management||The risk management will be practice which is a functional discipline of our organisation and it will cover few standard risk factors.||Due to the scope of decisions the risk analysis is must before the plan implementing at final analysis but with a limited scope in the context of the Supercell organization as they are with limited strategy and limited scope of development.|
System diagram of the Supercell organization
Description to System diagram of Supercell organization:
There are three basic steps in the system diagrams of any organizations and hence we have our organization Supercell therefore, the steps according to the organization requirements are as follows:
- Input: In the first stage the Supercell organizes prepares for the materials related to the raw application data where the requirements of the clients and models are identified and busines strategy is implemented according to the progress.
- Process: In this stage the Supercell organization make a rational approach in the development process of the needs and requirements identified in the input process and the work is started according to the requirements of the clients or the model they are preparing.
- Output: This is the last stage of the system diagram where the organization finally produces the outcome what they have achieved. With the output stage, the stages of monitoring and reviewing apparently started and then the client requirement are focused and approached.
Hierarchy of the Supercell organization:
A Supercell has various departments to manage the business needs. Their functions and roles are classified in this typical diagram.
Task 2 – A report explaining the relationship between operations 95 management and strategic planning
2.1 The ‘Three Es’ in Supercell
The Three E’s is very important for an organisation. It is expand as Economy, Efficiency and Effectiveness. The Supercell work towards the operations of Three E’s. They are,
- Economy:Our productions and services will be done in the estimated cost and timing which will run the Organisation as economically in the market. Through this, we are minimizing the cost for resources through time, cheap price, and locations. It also based upon the cost of goods and services. We are providing our services at right time with right quality and quantity from the right place.
- Efficiency:A task that performs with a reasonable effort and doing the right things which are exactly planned in productions and services. The term efficiency which is respect to the employees and employer in the Organisation. Everyone has the efficiency to do the work with full effort in the project. Productivity is based on the input or output values. Efficiency shows an exact output with standard timing (Mahadevan, 2010).
- Effectiveness:Our Organisation will maintain the quality of the products and services which shows our effectiveness to our customers. Our Quality and timing is the main objective of our business. Our process will meet the requirements of the customer needs. We will provide our services to the customers as what their requirements, expectations.
2.2 The tension between cost minimisation and quality maximization at Supercell
A Cost which takes a major part in the Organisation and it is a very important objective. In Organisation the goods and services are based on the Quality, Timing and Flexibility. If the Cost is maximum in the market it need to produce with the high quality. Through cost minimisation the quality of the product will get reduce but our Organisation is delivering the products at minimum price with maximum quality. Sometimes the cost gets increase due to timing of delivery. Usually if we work in the production with few resources to complete the production by taking time of 10 days cost will increase as higher when the customers expect the delivery in 4 to 5 days because the production timing need to reduce by adding more number of resources. Hence, the cost will increase as maximum here. We are providing the products without any defects in productions and services (Greasley, 2007).
A tension of cost minimizations and maximum quality is due to the competitive services of other Organisations. Through comparing and analysing the similar products of cost and quality, we are working and fixing the cost as minimum with maximum quality while compared to our competitors.
2.3 Significance of the five performance objectives that underpin operations management of Supercell
Operations Management in any business strictly follows five major objectives. These objectives not only regulate the operations but also drive the result to proposed objective to a greater extent.
With respect to Supercell, the operations done so far have had great impacts and were done in a timely manner. Unless the Objectives are well managed with proper identification and analysis, Supercell might find it difficult to sustain for a longer run in the external business market (Chase, 2006).
The five Objectives of that underpin operations management in the Supercell organization are as follows:
- Specific: This demands accuracy in the objectives and planning. Once the objective is identified and set rightly, Supercell can go ahead with the planning that directly influences to the operations.
- Measurable:Upon identification of the objectives, it needs to be evaluated with respect to the Quantitative dimensions. For instance, Supercell takes in $2.5 million on a daily basis. This is the achieved or measured quantity. On the other hand, Operational management of Supercell should aim at a higher return. This profit needs to be measured in line with the oriented inputs.
- Achievable: This objective is rather important for any Organisation as it has the utmost capability to fulfil an objective in reality. In Short, the objective that has been identified needs to be feasible with respect to Supercell, the proposal needs to be feasible in terms of, First of all with the proper Budget and its allocations. Then it requires the Manpower and the efficient and potential usage for the organizational development. It also develops a rational approach in making the proper adequacy and appropriateness in Demand and Supply with the successful level of skills and Knowledge. If all these points are feasible for Supercell, it indicates that the Organisation can estimate operations and achieve the objectives on time.
- Realistic: In an effective Organisation, the planning and implementing is must. Planning is a vital role which supports the organisations to deliver the outputs. Supercell will split the work according to the skills of the resources which are capable (Lockyer and Gordon, 1991).
- Timed: Increasing the speed in production and services which lies between as external or internal customer while requesting a product or services. But there were few internal and external affects.
A time is important because which helps to respond quickly to customers. Through this the customer can get a positive view and it get the good returns of the business from the customers.
Task 3 – A report explaining how to organise a typical production process
3.1 Linear programming using any Supercell operations
A Linear programming is used to calculate the maximising profits, minimising costs using the problems which is ensure to make the most excellent usage of available resources. A process which is used to include a method if it is not to achieve the excellent output like maximum profit or lowest cost. Through this mathematical method the linear programming can be used to reach the finest output. The business managers will use this method for production, concrete and measurable improvements which are includes in performance. Through this method we can find the possibilities (Casey, 2002).
A Linear algebraic relationship will show an Organisation decisions by giving the business Objectives and resources using Linear Programming method. A components which is consists for linear model are a set of variable decisions, objective functions and set of resources. The main concept for using linear method is find efficient resources to use.
Concept of Linear Programming:The Linear programming problem concept is very simple. It has four basic mechanism. They are,
- Decision Variable:A variable which defines the quantities. A Linear programming decision variables is used to calculate the maximising profits, minimising costs using the problems which are ensure to make the most excellent usage of available resources.
- Objective Function: It shows how the variables get affected by cost as minimized or maximized. This process which is used to include a method if it is not to achieve the excellent output like maximum profit or lowest cost. Through this mathematical method the linear programming can be used to reach the finest output.
- Constraints:It shows the available resources and how to use the resources by using the decision variable. The business managers will use this method for production, concrete and measurable improvements which are includes in performance. Through this method we can find the possibilities.
- Data: It quantifies the relationships for the Objective function and the constraints. A component which is consists for linear model are a set of variable decisions, objective functions and set of resources. The main concept for using linear method is find efficient resources to use.
Supercell organization purchasing by use of linear programming:
The organization wants to purchase the software’s require for checking the plagiarism issues in their working and the copyrights for which they are planning to purchase five distinct quality software’s. The combination A holds the 20% and costs $5000 of quality whereas combination b and c holds 35 % of quality and costs $10000 and combination c holds 10 % of quality and costs $15000 and combination e holds 80% and costs $50000 of quality. Now the organization is planning to purchase the software’s with their requirements and financial needs.
LP model of the sale and purchase in the Supercell organization:
LP model will be used for maximization:
48 hrs of Labour per day, 30 mobile games program
x1 = Computer, x2 = Compact Discs
Maximizing Z = $ 48 x1+ 58 x2, where Z is profit for per day
1x1 + 2 x2 which is greater than are equal to hours of labour
4x1 + 3 x2 which is greater than are equal to number of mobile games program.
Maximize Z = $48×1 + 58×2,
Which is 1x1 + 2x2 ≤ 48
4x1 + 3x2 ≤ 30
Therefore, X1, X2 ≥ 0.
The solutions of LP which is greater than 0, is a feasible solution for the Organisation.
3.2 Critical path analysis and network planning using any Supercell operations
A critical analysis is a tool that is used to realize the key objective of the business. It offers the confirmation of the work that run swimmingly with none interrupts. In step with this management can allot the resources for the activities that match their skills. Through this we will see the detail method of our Organisation. The right method of designing can run the project swimmingly that impact the price and time. Through these form of arrange we will determine the enhancements and make sure the production as needed.
Essential of CPA:The Critical Path Analysis is essential for a project to build a model of the project which includes,
- The activities that required to complete the work.
- Calculate the duration for each activity.
- A link between the activities.
- Calculate the Deliverable times.
It determines the shortest time which is possible to complete the work. If any delay at the activity due to critical path it will directly impact the scheduled work of completion date.
Benefits of CPA:
- It helps to reduce the risk and cost
- This tool can be used for decision making as well as planning tool.
- It will provide overview of the project which is very useful to the management.
- Through this calculation, we can allocate the resources as needed in the project and transfer few resources to another task (Reynaud, 1970).
Network Diagram Structure: Network Planning through CPA:
The Network diagram have a structure to create as follows,
In Supercell, the employees are an essential factor for the business who will provide the quality services to the customers as directly. The products which are already manufactured will kept in the store for sales. The employees will are well trained and they are well in market trends too. Hence, the products will sell to the customers according to the need. The employees have an excellent communication and well experienced to ensure the customers to be happy. There is a team who will get the feedbacks regularly from the customers and it takes to the management for analysing the feedbacks. The management team will check and take actions. A Control is a separate process which may leads to the plans that are needed to be redrawn. That is, the operation will be called back to track for the re process.Operational planning and Control is an essential factor for a business. The Planning and Control will concerned by managing the activities of the operations which is to satisfy the customer requirements. The operations which requires the plan to control. The Planning and control is apprehensive to the market requirements and it is used to estimate the resources how much can deliver as schedule (Packard, 1972). Those activities will provide the procedures and decisions which gives different ranges of supply and demands. The purpose of this is to make a link between the supply and demand which will ensure the operations and the processes will run smoothly. And the production products and services will deliver with quality as expected by the customers.3.3 Need for operational planning and control using any Supercell operationsThrough these possibilities, the critical path is calculated with help of network diagram and that path is the longest path which takes 16 days of maximum to complete the work.Path 4: 1, 4,7,6,8 -> C+G+I+J which is 3+6+2+3 = 14 daysPath 3: 1,3,6,8 -> B+F+J which is 2+4+3 = 9 daysPath 2 : 1,2,5,6,8 -> B+E+H+J which is 2+5+6+3 = 16 daysPath 1 : 1,2,5,6,8 -> A+D+H+J which is 1+4+6+3 = 14 daysThe above network diagram will assume the durations to complete the project. Through calculating number of path and lengths as follows,
For example, when we find a new distributor who can deliver quickly, respecting the customers, receiving the comments from the customers as pleasant. Which should make the adjustments in the operations to achieve the objectives as we planned for a control.
There were few steps that can control the process. They are,
- Performance Objective and Standards
- Measuring actual Performance
- Comparing Performance with Objective
- Taking Actions
Task 4 – Relevant techniques to the production of an operational plan for a typical business
4.1 A set of clearly defined operational outcomes using any Supercell operations
Operational outcomes define as a statement that describes the preferred quality with the time and accuracy. Otherwise it is define as to determine the services to promote. It will represent the regular operational or procedural task that is defined as “S M A R T” which expands as Specific, Measurable, Aggressive, Results, and Time-Bound. The Outcomes are the statements that describe about the preferred performance of a service or the functions. The outcome statement derived from the goal which in turn to the Supercell vision or mission (Saidi, 2009). Those Goals are wide-ranging statements which are precise, specific and clear statements of the proposed activities.
Advantages of Developing Operational Outcomes:
There few advantages by developing the Operational Outcomes are as follows: Common Platform: The resources get common platform to work according to their skills that matches to work. Critical Process:We are identifying the critical process of the work before the work begins. Hence, we are implemented few solutions to get overcome. Advising Tools: We have a guidance tool for the resources to get help in work. It will guide as a trainer. The resources will get efficient knowledge by using this tool. Improving Materials and Techniques: Supercell always concentrates on the market trends. We are flexible. We will change our services according to the market expectations. We have a separate team to manage the Innovation part of the business and do the research on new technology. Increasing Production:The Production is based on the market requirements. We will plan the schedule as required to deliver our services. Supercell has increased the production on the mobile game application development as day to day.
4.2 A network plan and indicate the resultant critical path using any Supercell operations
Supercell have many projects from that we have essential resources at our clearance. Usually, we are get into pressure for completing the projects on time. Even though we tried as hard we are still lagging behind on the time. Since, in this situation the Critical analysis method chart helps for us. It shows the way and lead us to complete the project successfully. Hence, it made project planning and implementation made as easier. It’s the most valuable tool for us. Through this the managers get easy to check the progress of the projects.
A plan that shows the link between the two activities of previous activity and current activity is known as network plan. The critical path method forms apart from the network method to analyse the activities time and quantity which is critical in work.
Network plan and Critical Analysis:
Above diagram shows the activities of A,B,C,D,E,F,G,H,I,J,K,L,M. Through the nodes the slack will be calculated. The critical path method will show the shorter duration and longer duration. From the analysis the longer duration path will consider as a critical path of the work.
4.3 Explain how quality could be defined and maintained using any Supercell operations.
The Quality of the product is very essential for the Organisation. Through Quality the organisation can maintain the good relationship with the customers. Supercell involves to managing the Quality terms. There are three terms of Quality managing by the Organisation. They are Quality Control:It determines the test to verify that it has been working properly. Through this quality control, we are preventing our products from the errors. If the error was suspected. It will be trailed with “Five W’s”.
The term “Five W’s” as follows, What error was made? – Finding what was the error on the program. Where was it made? –Finding how this error was made and where. When was it made? –Analysing when this error made. Who made it? –Search programmer who made this error. Why was it made? –Getting the reason why this error was it made. Those “Five W’s” need get the solution by the management. Through this solution the management will take necessary actions to control the quality.
- Quality Assurance:The programs that ensure the final result has been reported are accurate. Planned and systematic actions that are essential to provide plenty of confidence about the product, process, or service and it will satisfy the given requirements. It aims to the production of quality. It will be checked by someone work. The Quality Assurance manager will check the quality in the work.
- Quality Assessment:To determine the quality results which are generated? It is an effective challenge to the Quality Assurance and Quality Control.
- Quality Circle:A small group of resources who do similar kinds of jobs is known as Quality Circle. The Quality circle team have more responsibilities in Organisation. They will check, analyse the issues in work and give the solutions for it. Through this performance the organisation will improve the total performance and enhancement of work.
Major Quality Concepts:There are three major qualities. They are,
- It is a form of Management.
- It has been used as a human resource development.
- It is a tool for problem solving method.
Quality and Six Sigma:Six sigma is determined to improve the process, products and services. It will measure the total quality and find the effective by eliminating the defects.
Six Sigma views and Quality:
- It gives frequent improvements for doing business.
- It will reduce the variations or defects while manufacturing.
- It also focus the process of business.
- It provide the features of 100% audit which is ineffective.
Goal of Six Sigma:Six Sigma is used to reduce the cost for production and to improve the performance of the services in Organisation. It will reduce the cost by eliminating the waste, poor quality and it helps to improve as good organization. Through defects getting reduce, stabilizing the process and production, providing customer satisfaction which leads to improve the performance.
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Supercell is in the business of ensuring the Quality products and Services. By managing effective supply chain, Supercell enables other organisation to improve their efficiency. This Organisation provides different variety of products and services on Mobile applications. Hence, they maintained good Customer Relationship and understand their requirements. The Operational Management cause the changes and improved the Organisation growth. Through this Supercell has tackled the challenges and organised to maximize the services to the clients.
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Greasley A. (2007), “Operations Management “. UK: SAGE.
Jones P and Robinson P. (2012), “Operations Management”. Germany: Oxford University Press.