Evaluate the strategic objectives of operations management within the organisation
Effective operations management is directly related to overall organisational objectives, if operations within the organisation are not implemented properly, it will affect the profitability of the organisation in longer terms. Therefore, in order to achieve these objectives the need for operations management arises in order to professional mangers. These managers have the expertise in their related fields such as marketing, finance and human resource etc.
Operations Management relates to the production of goods and services within the organisation. It deals with the inputs and outputs that are vital for the effective operational management. Here, input refers to the managements of the recourses such as competence of the employees, machinery and raw material, and output is mainly focused on distribution of goods and services of finished goods to the customers (Gyte, 2009). Apart from input and output, there are other functions that are listed below:
- Quality management function
- Management control and Coordinating function
- Facilities management function
- Inventory control and management function
- Research and development function
- Finance function
The better coordination among these function will improve the control within the organisation and ultimately resulting in organisational. In order to prove how these functions can help an organisation to achieve its strategic objectives, the researcher has chosen the Jindal Stainless Ltd (JSL). However, it is to remember that these functions will be similar to any other manufacturing company.
JSL is deals in manufacturing of stainless steel products of different ranges. Therefore, the coordination of above mentioned functions becomes vital (JSL, 2009). These functions are discussed in detail in relation to the JSL.
In operations management quality management is imperative in every organization. Company like JSL, always concentrates on customers needs, which is directly related to product development. They understand the importance of maintain the standards as for as the quality of the product is concerned, which in turn help them to hold on to their customers. It will also improve the market share and will also be less attractive to new entrants. Continuous efforts to improve the quality of their product are the main reason that JSL is still growing even in current economic crises. Their continuous investment in research and development projects is also seen as the main reason for their success. Other factors such as internal auditing (benchmarking) and reengineering are also key drivers for their leadership in the market. Internal audit function helps the organizations to identify the flaws and weaknesses in different departments and suggests different ways that ultimately increase their customer base in the market (JSL, 2009).
Management control (MC) is also very important function that has helped the JSL to achieve their strategic objectives. There are broad range of activities involved MC that ensures that organizational objectives are implemented in efficient and effective way. Under this function an organization always tries to figure out if it actually following and implementing the activities that were decided when original objectives were laid out. For example, JSL always implement those strategies that which are focused on customers. They are always concerned how the products will reach to the customers; therefore they have implemented the national level distribution systems in India. This type of strategy has helped the JSL to achieve their organizational objectives (JSL, 2009).
For JSL facilities management is also important in order to achieve the overall objectives. In facilities management, companies heavily rely on the better management of the facilities such as building, computer, signage, lighting and plant and machinery. Facilities management is very important to the JSL, which operates at national level in India, as mentioned earlier. This is because company is involved in the large scale production in relation to market demand. If there is high demand of steel products in the market, then it will be equally important that facilities should be provided keeping in mind the level of demand. On the other hand, if there is less demand in the market then facilities needs to be managed otherwise it may result in high cost to the organization, which will ultimately affect the profitability of the company (JSL, 2009).
Marketing or advertisement function is also equally important in current technological world. This helps the companies to reach to the customers quickly and make them aware of latest developments in different products, and make them aware of any new ranges that are introduced followed by the customer demand. The similar strategy is adopted by the JSL in order to ensure its product and services (output) are in the reaching out to the customers in each and every single part of the country. This in turn helps them to achieve their overall objectives and maintain the level of profitability (JSL, 2009).
In operations management inventory control is also equally important like any other function that contributes to the achievements of the organizational goals. There should always be control over inventory and procurement department plays the key role in this. In manufacturing company like JSL, the presence of procurement department is vital. If there is more production and less demand then it is highly likely that all the steel products produced will be sold. On the other hand, if there is high demand and less production, this will ultimately affect the profitability of JSL in longer terms and company may loose its customers. This will also increase the chances of competitors to gain the market share (JSL, 2009).
Another important function can said to be finance, which helps the company to have the control or manage its finance. JSL is involved in manufacturing business, which requires heavy capital investment. It is important to mange these investments in an efficient manner. Over the years it is seen that companies are employing professional managers those who have expertise in the financial sector.
Overall, it can ne said that operations management is embedded in each and every part of the organization, hence important for the achievement of the organizational objectives.
Design and monitor appropriate systems to ensure quality of product and services
Define resources, tools and systems required to support business process
Define and implement quality audit systems / practise to manage and monitor quality to standards specified by the organisation and process operated
Embed a quality culture to ensure continuous monitoring and development of the process
Improve organisational performance
Monitor systems and work activities and identify problems and opportunities for improvement
Recommend improvements which align with the organisation's objectives and goals and which result in a reduction in the variation between what customers and other stakeholders want and what products, processes and services deliver
Evaluate the wider implication of proposed changes within the organisation
Plan, implement and evaluate changes within an organisation
- Gyte, (2009), "Operations management" (Online) www.gyte.edu.tr/dersler/546/ISL536/retim%201.ppt (Accessed on 09/12/2009)
- JSL, (2009), "Company Profile", (Online) http://www.jindalstainless.com/profile.html (Accessed on 09/12/2009)