Huawei Operations Management Concepts

Huawei Operations Management Concepts and Practices and their Application in Real Business

Huawei – Operations management has been expanding to a broader notion of service and production management hence signifying the principalities of operations management concept in the transformation of raw materials to finished good ready for delivery to the consumer. The increasing recognisability and importance of operations management in organisations have led to growth and exploration of techniques and concepts fundamental in production and service delivery. Therefore, the effectiveness and efficiency of operations and service delivery in organizations are determined by how well they apply operations management concepts and practices in their endeavor.

Operations management scope ranges across various enterprises where people are involved in production and service delivery activities such as product and service design, technology selection and management, system design, process selection, quality improvement etc. (Kunchala). These concepts and functions entail many interrelated activities including scheduling, quality assurance, inventory management, capacity planning etc. fashioned toward effective and efficient production and delivery of goods and services.

Huawei Technologies Corporation, being among the leaders in the production and sale of mobile devices, they need to maintain a high-end operations management through the application of the latest and best operations concept in operations management. Besides, various factors necessitate the organization to facilitate streamline operations management. These factors include the quantity and quality of production, market diversity, change in technologies, competition, and the ecosystem.

Huawei, for instance, is inculcating the user-centric operation initiative which is aimed at digitizing their product while improving quality and user experience. This, therefore, entails the use of market research in their quest to deliver quality products which are user-friendly and well-paced with trend and technology (Huawei). Since the organisation uses make to deliver production approach, their market research should involve an in-depth analysis of the consumer preference and inculcate them during the planning, design, and production of various products.

The organization applies a generic and multistep product development process where they are technologies pushed product and platform products. For instance, the production of the Huawei GR5 product was a platform product as it was built around the pre-existing technology subsystem of the Huawei GR3. Besides, the Huawei Y series is built along a product platform where they use already pre-existing technology. Due to the overly increasing enormity and complexities due to technologies advancement, Huawei, therefore, enhances management transformation as they resort to a lean operation to accommodate customer requirement to improve production efficiency while controlling costs.

To cope with the competition and rapidly changing technologies, the organization applies the quick-build products which entail the rapid modelling and prototyping. To achieve a seamless and quality production, the organization integrates the operations and management organisation with the resources, platforms, and expertise through centralized processes. (Mingwei, Yaling & Feixiang) This highlights the importance of the effective layout decision within the organization.

Facility layout is essential in the realization of a seamless and lean production process in the Huawei Corporation. This entails determining of the arrangement and placement of workgroups, workstation, departments, inventory etc. to reduce possibilities of waste such as motion, movement, inventory, and quality accruing. It is worth noting that Huawei implements a Quality First strategy as they seek to enhance sustainability in materials and suppliers through performance appraisal.

As a contract manufacturer, Huawei has a high-end procurement decision-making team aimed at strengthening customer and supplier’s sustainability. For instance, the organisation has posited a procurement quota to enhance supplier sustainability hence minimizing the risks in supply while facilitating customer satisfaction hence boosting supply chain a competitive advantage. The organizations evaluate supplier eligibility based on compliance with the established supplier Huawei Supplier Sustainability Agreement, laws and regulations.

Further, the procurement process in Huawei is value oriented which entails adhering to the supplier’s regulations, transparency, and scientific procurement which is aimed at building a seamless and healthy s(secure, reliable, and competitive) supply chain. Besides, to facilitate the procurement process, Huawei facilitates a joint innovative, strategic cooperation with a win-win and benefit sharing process. This is achieved by enabling and encouraging mainstream partners to engage in the initial stages of product research and development to assure supply and competitiveness during the process (Tao).

Huawei Operations Management
Huawei Operations Management

Being a contract manufacturer, the organization needs to outsource various parts and or services and maintain robust industrial relations to enhance operational efficiency and effectiveness. This is critical as it enhances reasonable profit distribution within the industry thus ensuring key partners and suppliers gain sizeable and reasonable profits hence enhancing a success shared, competitive, and sustainable supply chain. A comment by Huawei’s Consumer Business Group chief, Yu Chengdong, “We are laying out plans for all our key smartphone parts. Huawei might not manufacture these components directly, but it does not mean we do not own technology to manufacture them ourselves” indicates the commitment and appreciation by Huawei to outsource their non-core competencies and dwell on competency for efficiency and effectiveness in their operation after the flash memory incident (Tao).

Additionally, while the organization seeks to facilitate lean manufacturing which is eco-friendly and sustainable, the organization should conduct regular value analysis and sensitivity analysis. These analyses are essential as they enhance the better performance while adhering to customers’ requirement. Lastly, Huawei has prioritized quality as the quality control department is fashioned to make the products synonymous with high quality. The objective is Huawei to win on quality through provision of high quality services and products consistent with their requirements.

MI global started operating in an already competitive market across China and the world. Various challenges culminated which had led to the organization to fall to a ‘unicorns’. Initially, the organization faced a slump supply chain associated with the rapid organizational growth which made the organization to retreat from overseas markets. Additionally, Mi had several organizational challenges that critically influenced their operations hence overall performance.

The organization has facilitated their design and manufacturing process through the application of an innovative business model which differentiate itself from other manufacturers at every phase of the customer journey. First, the organization has facilitated the production and development process of their products as depicted by their CEO, Lei Jun as “Mission Impossible.” Their manufacturing process is unique as they do not have a single physical factory as compared to Huawei which indicates a radical shift from the traditional approach in inventory management. This is vital toward the achievement of lean manufacturing as wastes are reduced in the production process. Xiamo’s make to stock production process inculcates customer requirement as depicted by the research and development process (Wang). The organization adopts a different strategy to reach client which entail cloud sourcing and application of social community to create awareness while at the same time gather information from the customers.

Different organizations have varying strategies and operations in their manufacturing and distribution. In comparison with MI, both organizations applied quick bound product development process where sample and prototypes are designed which includes the mix of the shape and the identity of the line design while depended on the outsourcing various components. Therefore, Huawei and Mi can be described as contract manufacturers.

Mi started operating in an already volatile and competitive market which necessitated differentiation. First, the organization MI Global prompted to restructure their operations through the adoption of more seamless and effective operation management practices. For instance, they restructured their smartphone hardware, supply chain, quality management as well as Research and Development initiative. Besides, the marketing of the end product and delivery to the consumer was exclusively online which made it inaccessible to many less tech-savvy clients (Kline). The organization had to implement therefore a unique and multistep production system which was more platforms based to facilitate production and supply. After their fall, the organization has become one of the super houses in tech in China competing with Huawei. In contrast, Huawei’s also invested greatly in research and development but they had a different marketing strategy which was both through outlets and online platforms.

 Besides, the production design and development entail outsourcing of various components including processors, casing, or camera from other organization for profound and seamless manufacturing. This process culminates with detailed quality tests which are critical in value and sensitivity analysis. Each phase of product development is closely monitored, and any mishap is remedied accordingly before mass production and supply of the product to the final consumer.

Additionally, Xiamo has been a market leader in terms of competitive prices on high quality products. This has been enhanced by sustainable and value-based procurement of components facilitated by quality controls and value analysis. For instance, the Mi3 has a Sony Camera with a sharp LG display and Phillips flash. The organization, however, is purposed toward zero inventories as they only manufacture based on orders hence inventory holding cost is automatically reduced. They procure components only when they get orders (Ghong). This has enhanced the effective alignment of their business model and operations hence meteoric rise.

Huawei Strengths

Huawei had various strengths as compared to Mi in terms of and manufacturing and distribution. For instances, their approach on stock-to-order was favourable in term of logistic and inventory management. Mi implemented a zero inventory management practice where they solely depended on customer orders to procure components. Although this method can save a lot of inventory cost, it can be constraint in case of inventory shortage or delays in delivery. In addition, Huawei had a clear procurement and tendering scheme which facilitated the selection of supplier hence facilitated suppliers’ involvement in the manufacturing process.

Adoption and implementation of seamless and profound operation management concept in the production and delivery of goods and services is a blueprint to the organizational success. They main operations management principles and knowledge adopted by the company included; the principle of reality where Huawei didn’t focus only on lean management or total quality management but rather focused on tools and time-based approaches to provide nearly universal successful operations management.

Besides, the principle of organization is clearly highlighted in the case study. Both organizations had organized their production process coherently as manufacturing, marketing, and distribution are interconnected set of processes. Other principles addresses in the study were the principal of variance, change hence the manufacturing and distribution must be bound with struggles with regulations, benefits, and wages to facilitate competitive advantage. Besides, the concept of lean manufacturing and inventory management are greatly highlighted in the Huawei and Mi manufacturing process. Additionally, the quality assurance and research and development are critically addressed. For instance, these principles enhance the process of procurement through manufacturing to delivery of the final product to the customers.

First, the organization is able to achieve or move toward lean production hence facilitating reduction of wastes which in return results in the eco-friendly operation and competitive advantage in the market (Onwuka, Ugwu & Ndife). For example, Xiamo was able to cut the cost of its products through inventory management and quality control initiatives. Reduced inventory costs and effective supply chain strategy enhances more competent, faster, and accessible products (Francis). To sum-up, adoption of operation management concepts and practices will enhance organizational efficiency, effectiveness, quality, lead time, capacity utilization, and cost objectives through value creation and value addition when transforming inputs to outputs.

Works Cited

Feixiang, Mao et al. “Making Manufacturing Productive Again With Iot – Huawei Publications” Huawei, 2018.

Francis, Abey. “Operations Management – Definition, Objectives and Functions”. MBA Knowledge Base, 2018.

Ghong. “Xiaomi: China’S Threat To Apple And Samsung – Technology And Operations Management”. Rctom.Hbs.Org, 2015.

Kline, David. “Behind The Fall And Rise Of China’s Xiaomi”. WIRED, 2017.

Onwuka, Ebele Mary et al. “Evaluation of Operations Management and Its Impact on Improved Logistics Control”. International Journal Of Economics, Commerce And Management, III, no. 5, 2015, pp. 591-602.

Tao, Li. “Huawei To Improve Supply Of All Key Smartphone Components”. South China Morning Post, 2018.

Wang, Lucy. “Xiaomi – Mobile Disruptor from China – Technology And Operations Management”. Rctom.Hbs.Org, 2018.

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MBA Operations Management

Implications of Servitization in Operations Management

Supply Chain Mapping MBA Project

Supply Chain Mapping is crucial to any organisation regardless of its size, specialization or region.  A typical supply chain system is composed of resources, activities that facilitate the movement of products from the supplier to the client and vice versa, i.e., upstream and downstream (Kozlenkova et al., 2015). However, the keeping track of all these supply chain activities, i.e., delivery and supply of necessary materials, information and other elements is getting complicated day by day.

Henceforth, it’s essential for organizations to manage these activities through visualizations which can help in identifying supply risk factors for necessary actions to be taken (Ho et al., 2015). And this is where supply chain mapping comes in handy. Supply chain mapping refers to the use of visual maps in monitoring the activities linking suppliers and customers.  The supply chain map shows how all partners and actions are connected such as supply, transport, warehousing, retailing and so on.

Moreover, a supply chain map takes into account the transactions and information exchanged by all parties, both upstream and downstream (Jayaratane et al., 2018).  Breaking down the composition of the supply chain mapping reveals interesting factors such as how it’s mapped, parts that are included in the map and criteria used to select. This paper thus discusses these elements of supply chain mapping in addition to the implications of various types of integration in the supply chain management.

Supply Chain Mapping Deployment

Mapping is meant to reveal opportunities and obstacles so that an organization can be able to formulate a winning strategy. To do so, a supply chain map has to indicate two crucial components; the supply chain flow and supply chain entity (Dujak, 2017). This can be achieved by following these steps.

Mapping the Physical Structure

An existing supply chain model already has physical locations that contribute to its value stream. These include the warehouses, factories and retail stores that support the movement of products and services upstream. However, the networks that support that these facilities can be at times complex, even for established organizations. For instance, it may be hard determining who supplies to the organization’s suppliers.

Which facilities or methods do suppliers or producers use to ensure that the raw materials are produced legally and ethically? This requires an organization to step up its involvement by in its analysis of supply chain structure.  Nuss et al., (2016) claims that identifying the relevant physical structures during mapping helps in determining the degree centrality of the supply chain.

Degree centrality is used to determine the level of physical sites that a particular organization owns. This, in turn, determines how the level of control they have on the supply chain and associated risks.

Networking Environment and Context Analysis

The environment that a company operates comes in handy in understanding the supply network system that they can tap into.  Rodriguez (2016) claims that this stage of supply chain mapping entails determining four different types of ties: similarities, relations, interactions and flows. These elements affect how a company is perceived by the society that it operates in.

For companies to successfully succeed in this state, they should take into consideration factors such as;

  • Cultural and ethnic differences,
  • The geography covered,
  • Politics and legal systems within the target markets,
  • Expectations of the end users.
  • The environmental protection laws.

A company that understands these factors will experience more success since it will be able to determine the trends, the drivers and conditions that affect the flow of goods and service both upstream and downstream.

An organization should consider any unique factors which present in the supply chain to determine if they are risks, threats or opportunities. This affects how the organization responds (Rodriquez, 2016). For instance, an organization can critically analyze:

  • Whether to standardize or customize the products:
  • The complexity of the products
  • Customer tastes and preferences
  • Bureaucracy and complexity within the organization
  • Cost of switching for customers
  • The degree of Competition in the market.

All of these factors affect the type of supply chain an organization selects. The more complex and customized the products are, the more complex the supply chain will be.

Supply Chain Mapping
Supply Chain Mapping

Considering the Buying Process:

This organization must consider how many hands the raw material or finished product pass through before reaching them or their target client respectively.  For instance, the company should determine if it buys the products directly from the producers, or from brokers and third-party companies.  To do so, a chart is created, showing how the current transactions and exchange of products are carried out in the supply chain. From this, the organization can determine which parties that they can away with to loosen up the supply chain model.

Dujak (2017) claims this part of the analysis can be classified under the extended value supply map. Brokers and re-suppliers can at times be adding no value to the whole production process, especially if the main producers of raw materials are within reach. In addition to hoarding products and inflating prices, brokers may also become unreliable parties when transacting with them. For instance, if products are not delivered on time despite being paid for, should you hold the broker or the producer accountable?

Can you eliminate the broker and purchase directly from the producer or supply directly to the final clients? Analyzing these elements will help determine how to approach non-value adding-component of the supply chain such as bypassing them.

Supply Chain Mapping – Accounting for Transparency of Information 

Mapping a successful supply chain model entails ensuring that the information being passed across the various parties is consistent and credible. For this reason, a company has to define the types of reports that it expects from all the actors in the supply chain. The expectations will be based on the type of contract that an organization has with these parties.

The suppliers should provide information on their production process and their transport mechanisms (Gardner et al., 2015).  Passing information on sample products or services ensures that expected standards have been met before the commercial production start. In this case, the information being passed down or up the stream covers concepts such as order status, product testing and such. There two ways of ensuring consistency information flow, i.e., manually or electronically.

Moreover, each actor should be provided on information about their expected roles and limitations (Gardner et al., 2015). When all these factors are considered, the supply chain mapping will be based on the transparent information. This implies that each of the party will be accountable and responsible for any issues that they are expected to handle. This stage is usually called the current state map.

Should the map include connected firms or primary firms?

The supply chain map mandates that every activity within the supply model must be accounted for. In doing so, the visualization of how the raw materials are produced to how they reach the final customer must be accounted. Henceforth, this takes into account all the primary and secondary activities that facilitates this process. For this reason, it’s essential to include the connected firm in the supply chain map

Means of determining who should be part of the supply chain map

Heat mapping:

This method entails identifying the main company priority regarding the products that it produces. Each activity of the firm is assigned a grade/ colour/size in the order of its overall importance to a company. In doing so, the company can be able to trace the main parties behind such activity. The parties that become part of the supply chain are those whose roles are found to be invaluable to the company, i.e. those whose grades are much higher (Bryan, 2015).  Regarding this, the supplier of a company has a high priority since the raw materials that they provide; facilitate normal running activities within the firm.

The degree of Risk:

Oliveira et al., (2017) claim the supply chain activities are proliferated with operational threats due to uncertainty in business environments. Such threats can lead to immense losses for a firm. For instance, Boeing suffered a loss of $2.25 Billion, while Cisco lost $2.25 Billion due to supply chain problems (Oliveira et al., 2017). Henceforth, when considering who to include in the supply chain, the main question should be if the party selected is ready to partake in the losses due to risks?

Secondly, how can the party help in mitigating risk? How accountable is the party in the organisational objectives? If a party feels the wrath of consequences related to risks and threats, then they should be included in the supply chain map.

Florian et al., (2015) break down this concept by assigning each risk category with the composition of risks that may proliferate it. All of these activities have a domino effect on the whole supply chain, any parties supplying these activities must be included in the supply chain map.

Supplying Risks: Poor quality good, non-delivery of agreed products, inflated prices, delayed delivery schedule.

Transporting Risk: Loss and damage to good when in transit

Warehousing Risks: Spoiling and damage to goods; changes in storage costs and taxes being levied on them.

Marketing Risks: Wrong promotional strategies, excessive, demand volatility.

Production Risk: Equipment failure, overproduction, poor quality outputs (Florian et al., 2015).

From the above, it’s evident that these are high-risk issues that may face an organization. Henceforth, an organization should monitor all activities carried out by these parties to ensure everything goes as planned. Moreover, when an issue arises, it can be easy for the organization to track through the use of an already established supply chain map. Henceforth, under this criteria, the supplier, the transporters, warehousing companies and marketing agencies must be included in the supply chain map.

Benchmarking

If a company wants to have a successful supply chain, it must study its competitors or other companies who have established a successful supply chain model. This is where benchmarking comes in handy where a company studies the processes, performances and products from the best practices (Routroy et al., 2015).  This strategy helps a company select the right partners for its supply chain model, who are more likely to help it achieve its objectives fast.

Hettiarachchi (2016) claims that Apple Inc. has probably the most successful supply chain strategy due to how it has mastered mapping and visualization technologies in monitoring the movement of all products, both upstream and downstream. Once the company has benchmarked other companies supply chain maps, it then decides on how it can visualize its map for maximum benefits. The bigger the firm and the more complex its activities, it might find itself integrating even the secondary parties to the map, just like Apple Inc does (Hettiarachchi, 2016). On the other hand, if the company activities are just simple and use basic raw materials, its supply chain map should include the basic parties, i.e. supplier, warehouses, the firm, and the retailers.

The Importer-Exporter Criteria

The Importer (Buyer):  This is a connected firm who supplies to the organization supplier. The importer is usually the source of goods within that region if he got them from the foreign nations. The importer negotiates purchase terms with the main supplier, which affects the final price of the raw materials when the reach a firm.  This party offloads and inspects the shipment to ensure that all the products that had been ordered are in place. This importer is categorized as a source to pay (S2P) within the supply chain map.

Supplier (Exporter):  Usually categorized as an Order-to-Cash Component in the Supply chain map.  The exporter receives the purchase order from company clients and validates their credentials.  After confirming the order, they fulfill their services by shipping the goods to the clients. He then collects the payment from the clients and reconciles them for analysis. The reason the exporter is accounted for in the Supply chain map is that he can help a company determine the level of demand from customers. The exporter is a connected firm within the supply chain model.

Exporter (Supplier):  This type of exporter falls under the connected firm category and is a Fulfill-to service component.  This supplier is in charge of fulfilling the order of all the raw materials scheduled for production. The exporter procures materials from their direct sources and delivers them to the company for processing. This type of exporter is placed in the Fulfill-to-service component.

Implications of a Good Supply Chain Management Practice

Vertical Structure:

More Control: Under this arrangement, the company control major activities within its supply chain, e.g. Apple Inc.  As a result, the company can make amendments or any changes in the supply chain with minimal tussles (McCandless et al., 2015). For instance, when a manufacturer acquires its product retailers, he can be able to dictate the prices of all the products, just like he would if he were to acquire the supplier. As a result, they may have more bargaining company than the customers’ especially if there are no alternatives.

Differentiation:  Having more control over the distribution channels, retails outlets, production materials inputs can enable a company to distinguish itself from competitors. Consumers may be able to notice these differences which can be leveraged upon further by clever marketing tactics.

Higher Profit and Revenue margins: Upstream and Downstream markets such as selling products to the customers or accessing raw materials directly from the source may become new sources of revenues.  For instance, a company can also supply raw materials or provide transport and warehouse facilities to other companies on a fees basis. Moreover, having access to these elements eliminates middlemen and intermediaries who usually hike the prices by the time the products are reaching the company or end users. Henceforth, eliminating these intermediaries implies all these profits they were enjoying will be redirected to the firm.

Higher Level of Certainty: Florian et al., (2015) claimed that the more the parties involved in the supply chain, the higher the risks due to reduced control the company may have in overseeing all the activities. With vertical integration, all the acquired companies are acting as subsidiaries to the main company; hence it may be easy to standardize products and regulate their quality. This implies that a company is guaranteed of quality raw materials, quality freight and transport, warehousing and even retailing of goods.

Supply Chain Mapping Horizontal Integration

Market Expansion: Horizontal integration refers to the process of acquiring business activities that are at the same level. For instance, a fast-food company can try to gain a footing in another country by merging with another fast-food company in that nation. This enables a company to have a larger market share, which in turn leads to more revenues and profits for a company.  The supply chain model also becomes flexible and loosens up, since they can experiment with different supplier simultaneously to determine the best one.

Industry Control: the merging of two similar businesses implies that their bargaining power also increases. As a result, they can use this power to set the market prices for their products, set standards for customers as well as dictate the quality they expect from their suppliers and prices.

This is an immense power which may lead to more third-party vendors focusing more on such companies due to being assured of continuous contracts and high demand for their goods.

Economies of Scale: An integrated company will be able to order quantity raw materials, engage in more productive activities at a much lower cost than if it were ordering low quantity products.  This may in turn, lead to bigger profit margins and optimal use of all the facilities within the company.

Increased Differentiation: if the company continues acquiring and merging with businesses along with all lines it operates in, it can have more control over the features of its products.  For instance, the products may be either cheaper, high quality, long lasting in a way that other companies which have not integrated themselves cannot replicate.

Focal Company:

Better relations with consumers: Under this structure, the company has a direct contract with the end users (Wang et al., 2016). This may help the company gain more trust and loyalty, leading to repeat sales from customers.

Better insight for better marketing and product strategies: The company taps to first-hand information from clients from matters about complains, suggestions that they may have on the type of services provided. The company may use this information to re-align and strategize itself so that it meets their demand or needs adequately.

Increased Accountability of suppliers and distributors: Since the company has contact with the end user, it may also provide guidelines that their vendors should follow to provide the best quality services and products for their customers. This may lead to the company monitoring the activities within the supply chain more closely than with other forms of integration (Wang et al., 2016). This may lead to a domino effect where the suppliers and other service providers to the company are also more keen, leading to quality products in the end.

In conclusion, it’s evident that supply chain mapping is very crucial for companies. It supports information distribution, shows channel dynamics and enhances strategic planning process for an organization. This enables the company can track all activities.  It helps companies get more insight on all activities that are crucial to its functioning, be it upstream or downstream.

How can a supply chain mapping be successful? Well, the answer lies in who is the parties that are included in the map, criteria used to select them and their contribution to overall organizational goals It’s also worth noting that the supply chain map will be dependent on the type of integration that a company uses in its acquisition and delivery of goods/services, both upstream and downstream.

References

Dujak, D. (2017, January). Mapping of natural gas supply chains: Literature Review. In 17th International Scientific Conference Business Logistics in Modern Management 2017.

Florian, G. L., & Constangioara, A. (2014). The impact of risks in supply chain on organizational performances: evidence from Romania. Series Economy Management17(2), 265-275.

Gardner, T. A., Benzie, M., Börner, J., Dawkins, E., Fick, S., Garrett, R., … & Mardas, N. (2018). Transparency and sustainability in global commodity supply chains. World Development.

Hettiarachchi, H. (2016). Apple’s Supply Chain Strategy. 10.13140/RG.2.2.32075.49448.

Ho, W., Zheng, T., Yildiz, H., & Talluri, S. (2015). Supply chain risk management: a literature review. International Journal of Production Research53(16), 5031-5069.

Jayaratne, P., Styger, L., & Perera, N. (2018). Role Of Supply Chain Mapping In Sustainable Supply Chain Management. 2nd International Conference on Management Proceeding.

Kozlenkova, I., Hult, T., Lund, D., Mena, J.,  & Kekec, P. (2015). The Role of Marketing Channels in Supply Chain Management. Journal of Retailing. 91. 10.1016/j.jretai.2015.03.003.

Bryan, C. (2015). Handbook of Research on Global Supply Chain Management. IGI Global. ISBN-10: 1466696397

Mccandless, E., Abitbol, E., & Donais, T. (2015). Vertical integration: A dynamic practice promoting transformative peacebuilding. Journal of Peacebuilidng and Development. 10(1).

Nuss, P., Graedel, T. E., Alonso, E., & Carroll, A. (2016). Mapping supply chain risk by network analysis of product platforms. Sustainable Materials and Technologies10, 14-22.

Oliveira, U.R., Espindolar, L.S & Marims, S.F (2017). Analysis of supply chain risk management researches.

Rodríguez, R. R. (2016). Social network analysis and supply chain management. International Journal of Production Management and Engineering (IJPME)4(1), 35-40.

Routroy, S., & Shankar, A. (2015). A benchmarking approach for supply chain risk management. International Journal of Services and Operations Management20(3), 338-357.

Supply Chain Mapping Protocol. (2017).  Supply Chain Sustainability. Version 1.

Wang, X. & Wood, L.C. (2016). The Influence of Supply Chain Sustainability Practices of Suppliers.

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MBA Program – Advantages of Online MBA Programs

To be honest, I like options, flexibility, and ability to work under minimum supervision. As a result, I understood at an early age that the best field that could fit with my desires and aspirations is to enroll in an online MBA program. I work full-time and online studying is convenient for my schedule.  My current work task is to review many business documents. 

Getting an MBA will help me understand these documents.  I am also thinking about moving careers to government contractual work.  I believe getting my MBA will give me an opportunity get my foot in the door to a significant government contracting company. Working in the business industry has been one of my dream jobs since my childhood. Working in a business environment helps me to undertake what I desired to do in my entire life. This is the reason why I should focus on improving my skill set and expertise by enrolling in a flexible MBA program.

Besides, gaining both academic skills as well as work experience will open other avenues through which my career could effectively grow to greater heights. I was able to get a GPA of 2.45 which is slightly below your online MBA program requirements of 2.5. Despite, my current grade, I believe that my interest and aspiration goes beyond my past performance and would like you to reconsider my application based on my capabilities as well.

MBA experience helping your future organization

After almost three-year experience working at a large firm in the litigation department, I am seeking to expand my career to greater heights. My professional experience together with the MBA education will introduce me entirely to the future work environment and increased my interest in working fully in the business industry. Considering my business foundation and experience, I will be able to adequately adapt to the future organization without encountering a lot of challenges.

At this stage in my career, I consider MBA to be the most appropriate career field that will adequately give me the right path that I desire to undertake in my future. The foundation that I have established over the past has helped me to make decisions that are significant in my future career. Through the course, I will be able to develop technical, analytical skills necessary in the future organization to challenging technical problems. Besides, my global business perspectives will be able to improve the skills attained from the course to a greater height.

MBA experience helping MBA classmates

I am more ambitious and motivated to take up technical problems and ensure that I deliver my best. This is one characteristic that has shaped me to be what I am today. Without accepting challenges, it becomes hard for you to succeed effectively in a particular field. Working in a team is a critical component that has given me the ability to work with others. The group is a key source of information top any given firm, and its success depends upon the support provided by the company at any given moment.

With my MBA experience, I will be able to work together with my classmates’ ass a team having a common organizational goal. As a senior member of the team with adequate information, I will be able to understand the needs of the people at various levels and ensure that there is constant output among the group members. This step will aid in ensuring the firm attains the best outcome due to the efforts and coordination made by the group members.

MBA Online
MBA Online

Contribution of MBA program in solving real world problems

Currently, as a family law litigation paralegal, I finalize Income and Expense reports and Schedule of Assets and Debts for our clients.  I also review and index any discovery response which includes vast amounts of financial documents. Having more knowledge in the business field will help me to understand better and review financial document reports and discovery for cases where the parties own multiple businesses. Besides, the MBA program will adequately equip me with technical knowledge which is necessary to difficult real-life situations through informed decision making. I will be able to give appropriate accounts for various undertakings that take place in particular situations and ensure that alternative solutions have been established.

Organizations you have worked and work experiences that you have had

I have been able to work as a successful paralegal at a large business firm in the litigation department. This work has been able to give me technical experience that has helped me to realize the best career path that I should undertake. Having more knowledge in the business field will help me to understand better financial documents, which I review for clients who own multiple businesses.

The decision to undertake the MBA program came as a result of my passion and desire to expand my career to greater heights. I will be able to adequately understand the basic principles that are necessary for the business field through the educational skills that I seek. Despite the poor grades in the past, I am still determined to change everything and gain more experience in the business field.

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MBA Operations Management Degree

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Servitization Operations Management

Implications of Servitization in Operations Management

The concept of servitization in operations management has become more pronounced in the last one decade. The term sensitization is defined as where the manufacturer offers services that are in line with the traditional products offerings. The service industry is growing globally and dominating the world’s economies and much of the strategic thinking of business. Businesses have in the recent bundled together products and services with the aim of increasing value of their companies. This paper aims to increase the understanding of the concept of servitization in operations management. The paper is based on a systematic review of journals of servitization in manufacturing. Through critical literature review, the paper seeks to understand the extent of servitization across the global, the motivation behind servitization in operations management and the implication of servitization in operations management.

Literature Review

Servitization is happening across all the industry and all the countries across the globe. According to Vandermerwe and Rada (1998), it is the forces of globalization, fierce competitive pressure and forces of deregulation that have pushed both firms in the services industry and the manufacturing sector to dramatic move into services. Manufacturing firms have been offering services but not to the extent they are offering today. The manufacturers have specialized more in providing the services that are in line with the products they produce and have set up special units and companies to provide specialized services.

The process of servitization of business occurs in a multi-stage process;

Stage 1: Goods or Services

Initially, companies and firms were either providing goods or offering services. The firms either fit in one of the two companies, with little or no overlap. This was viewed as generating a low level of profits and hence limited revenue to sustain the company in the current competitive market environment. As a result, there was a need for a more advanced source of income which could assist in generating a better income for the day-to-day running of business activities. This led to the next stage in the process of servitization which is more advanced as discussed below.

Stage 2: Goods and Services

With the development of technology and converging trends, it becomes clear that companies needed both goods and services. Therefore, the firms started offering services that were in line with their products. For example, the computer companies demonstrated the inseparable ability of goods and services once and for all.

This stage enabled companies to secure a better profit than the initial stage of dealing with either a good or a service. Apart from the profitability and high generation through producing goods and services at the same time, this stage gave firms and companies superiority over the small firms dealing only with one line of product. Furthermore, it led to strong customer sovereignty and loyalty which increased firm profits and revenue to enable them to cope with the existing tough competition in the global market. Firms saw that this was not enough and they sought to a more advanced stage which could incorporate more commodities.

Stage 3: Goods, services, Support, knowledge, and self-service

The firms have now developed to an advanced stage. This is where the firms consisting of focused bundles that are customers oriented and composed of goods, services, support, self-service, and knowledge. By engaging in this type of business practice, it enabled the firms to acquire more capital goods for producing final products for customers spread across the globe.

The performance was seen as being high together with quality; profitability increased revenue at the same rate. These coupled with government subsidy and provision of incentives contributed to the robust growth in the firm’s sizes and hence development. The bundles are in some cases high standardized and in other cases customized.

Servitization Operations Management
Servitization Operations Management

Implications of servitization in operations management

Servitization among the manufactures and other firms across the world has been as a result of increased competitive pressure, forces of globalization as well as the development of technology. Therefore, the manufacturers move to providing services that are in line with their traditional products to increase their competitiveness in the market. The motivation for servitization can be discussed in particular forms of service offerings. In this respect, there is customer based motivation aim at improving the quality of the services that are offered to customers, product-related services which are aimed at providing support services to the products, competitive motivation which is aimed at improving the functioning of the products as well as services aimed at supporting clients. Other motivations include economic motivations which are aimed at increasing the revenues of the firm (Raddats et al., 2016).

Servitization works through some ways to increase the competitiveness of the firms. Some of these ways include setting barriers to possible competitors. Servitization creates barriers for customers to be wooed by competitors. If the customers are in a position to get all their need from the firm, that is both goods and support services, then they are more likely to be glued to the company and remain loyal to the firm. The main idea is to block potential competitors by making the entry into the market too expensive or complex.

Servitization also creates barriers to their customers. The customer who is used to getting all the services from any particular firm will be less likely to leave the firm for a competitor. Offering services to customers together with the products makes it unnecessary for them to look for other firms. Servitization also creates dependency on the side of the customers. Through servitization, the customers will depend so much on the products of the firm, and therefore the firm can keep the customers.

Spring and Araujo (2013) discuss the role of servitization in product differentiation. For this case, firms take the advantage of servitization by offering product-services combinations that are unique to any other firms’ products. Servitization increases the complexity of the firm’s products and services and therefore hard for the competitors to match the design of the products and the services. This makes the firm’s products face little competition in the market, and therefore the income from sales is kept at optimum point hence maximum profits made. Building customer loyalty in the market comes as a result of barriers to entry by other potential competitors since servitization offsets this through product-service combination which makes it different from products of other firms.

Servitization and Profitability

Visnjic and Van look (2012) argues that the relationship between servitization and profitability is complex. The approach that is adopted by any particular firm is the determinant of the level of profitability of servitization. Profitability is related primarily to the level of service culture, that is, to the firm qualities and that of the employees since they participate directly in the company’s activities. The provider’s employees must be autonomous, competent and able to communicate well with customers and be able to gather useful information for the firm. The customer interface is very important. These aids in the high levels of sales and hence boosting the profitability level. Therefore, service culture becomes a key element in the performance of every firm.

Services are globally more profitable. The main reason behind this is the fact that services have a lower price sensitivity. As a whole, results confirm the assumption that the operational service system must be adapted to the service strategy to attain expected financial benefits (Baines et al., 2017). While managers of manufacturing firms are skeptical, that service could generate potential revenue and real value.

It has been observed that in industries with a high-installed product base (e.g., aerospace, automotive industries), higher revenue potential often exists as service revenues can be one or two orders of magnitude greater than new product sales (Meely, 2008). Moreover, as services seem to be a steadier source of revenue (Smith, Maull and Ng, 2014), increasing service revenues can serve as compensation for declining revenues in equipment sales, and because services are more resistant to economic cycles, they can support steadier cash flows in periods of economic crisis. Furthermore, service offerings tend to be less sensitive to price competition and tend to promote customer loyalty.

Motivation for Servitization

Demand-based/customer demand motivation

Due to high demand for certain services in the local/global markets by the customers, the company may be forced to venture into servitization process and offer the service in high demand. This motive is strongly held by the fact that there is a ready market for the service to accompany to initial products produced by the firm. The final result is the high-profit yield accompanied by high level of income generation (Vinsnjic and Van look, 2012).

Development purposes

A firm is said to be developed when it produces a wide range of products to be sold in the market. Since every company aspires to increase its profitability and the desire for continued growth, it thus starts servitization due to the high and first service revenues (Vinsnjic and Van look, 2012). Therefore, the firm will experience growth with the product- service provision and hence developing at either constant or increasing rate depending on the technology and labor applied.

Conclusion

Servitization has become an emerging issue in the global business for the past one decade due to the benefits accruing from its practice. From the above description in evolution section, it is a fact that companies advanced progressively from a lower stage of producing single, that’s dealing with a line of product to a better stage of adopting two line products of producing goods and service provision and then finally to the final advanced and technical stage of incorporating goods, services, support, knowledge, and self-service. Furthermore, we looked at the implications of servitization in operations management and finally the critical motivations for practicing servitization as discussed in the above context.

Bibliography

Baines, T., Baines, T., Ziaee Bigdeli, A., Ziaee Bigdeli, A., Bustinza, O.F., Bustinza, O.F., Shi, V.G., Shi, V.G., Baldwin, J., Baldwin, J. and Ridgway, K., 2017. Servitization: revisiting the state-of-the-art and research priorities. International Journal of Operations & Production Management, 37(2), pp.256-278.

Neely, A., 2008. Exploring the financial consequences of the servitization of manufacturing Operations Management Research, 1(2), pp.103-118.

Raddatz, C., Baines, T., Burton, J., Story, V.M. and Zolkiewski, J., 2016. Motivations for servitization: the impact of product complexity. International Journal of Operations & Production Management, 36(5), pp.572-591.

Spring, M., and Araujo, L., 2013. Beyond the service factory: Service innovation in manufacturing supply networks. Industrial marketing management, 42(1), pp.59-70.

Smith, L., Maull, R., and CL Ng, I., 2014. Servitization and operations management: a service dominant-logic approach. International Journal of Operations & Production Management, 34(2), pp.242-269.

Vandermerwe, S. and Rada, J., 1988. Servitization of business: adding value by adding services. European management journal, 6(4), pp.314-324.

Visnjic, I. and Van Looy, B., 2012. Servitization: Disentangling the impact of service business model innovation on the performance of manufacturing firms.

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MBA Operations Management Degree

MBA Operations Management

MBA Operations Management students will learn that in business there are always individuals that are responsible for the managerial and supervisory activities. For a business to operate in the most efficient and conducive manner, the mode of operation needs to be advanced and even overseen by someone else. The research described these individuals as managers. The core objective of all the business or organizations is always to maximize profit. For these to take places, all the operations of the firm need to be correctly managed. Each business is managed through various business functions in which each function is responsible for managing a certain aspect of the business and as I had said earlier the core objective of all businesses is to provide the correct and appropriate requirement to the customers by offering goods and services (Stevenson & Hojati, 2007). The president or the CEO of a company is faced with a daily marketing, operational, financial and information tasks. Marketing is a sector responsible for the generation of customer demand, sales and understanding customer’s wants and needs. Finance is responsible for the management of capital investments, the flow of cash and current assets. The information sector, on the other hand, is in charge of the constant stream of information in and out of business. The operating divisions are responsible for the management of the goods and services (Chase, Aquilano & Jacobs, 1998).

Importance of MBA Operations Management

Therefore it is imperative for the manager to equally distribute the available resources in the business so has to ensure all the sectors are covered. Some of the cited sources will agree with my line of thought if I argue out that all the areas of management are to be treated evenly since they depend on each other. However, in this essay, we are going to discuss a lot about operational control answering all the questions in short subtopics. The essay will begin with the introduction to the body and finally to the conclusion.

Describe the Role of Operations Management in the Firm and How This Role Can Lead To Competitive Advantage and Profitability

Operating management by definition refers to act of administering business practices to establish a high level of efficiency in business (Fitzsimmons, Fitzsimmons & Bordoloi, 2008). The method involves the conversion of labor and other factors of production into goods and services that are efficient enough to raise a maximum profit. An MBA Operations Management team has the duty to identify which of the factors of production best suits the company. They also work under a close surveillance and ensures that the cost of production is achieved once the products have been sold. Modern researchers refer to the task of being an operating manager as one of the hardest and the primary duty of an organization. Despite having other sectors, operation management forms the main reason why a business was created. It involves a lot of functions such as planning, coordination of activities, organizing and planning all the resources as they are channeled to goods and services as the end product.

A few scholars also argue that being that operating management has a management function; it, therefore, means that it can also be involved in managing equipment’s, people and technologies that are needed in the production process (Chase, Aquilano & Jacobs, 1998). Operation management includes two very core aspects or rather two terms that need to be wee understood before engaging into being an enterprise manager. The two terms are the supply chain management and the logistics both of which will be covered in the MBA Operations Management module.

MBA Operations Management student will learn that the two terms act as the foundation for the business management and to out compete other competitors; one is expected to understand what exactly is meant by the terms. Take for example following the trends of supply and chain management globally; this will enable the team to strategies accordingly thus meeting the customers demand. While in logistics, it is critical to understand the use of resources in a cost effective way since there has been a trend where the resources are scarce, and the demand of the customers is skyrocketed (Cases & Case, 2004).

Often writers and employers confuse the skill required for efficient operation management and those that are needed in the logistics and supply chain management (Fitzsimmons, Fitzsimmons & Bordoloi, 2008). One of the abilities that would be much appreciated is the consummate organizational skills. The completed organizational skills enhance efficiency and drive the productivity to another level as well. One must be able to understand the operations and coordination of activities in the firm to show effectiveness. However, operational management is a broad spectrum sector in a business and when well managed can lead to a lot of advantages to the firm. The scopes of executive management include decision making. Decision making involves making decisions on what type and kind of goods to be produced and with quick decision-making process the entire production process will be efficient and fast thus creating a lot of profits (Stevenson & Hojati, 2007).

Adding on the objective of the operation system, a complete operational objective must aim at a competitive advantage (Krajewski, Ritzman & Malhotra, 1999). A business or an organization is considered to have a competitive edge when its profitability is greater than the average profitability of the other competing companies of the same set of customers – This will be explained in the MBA Operations Management module. This can be achieved by emphasizing on specific areas of operation with the intent of meeting the client’s request. A good operating management should be able to perform the following; adaptability advantage, reliability advantage, and service delivery advantage. Through these, the company can make significant profits and become more efficient as expected.

Discuss Systems To Take Advantage Of Capital, Location, And Labor Differences So That Profits Are Maximized. MBA Operations Management

MBA Operations Management students will appreciate that the core objective of every organization is to make a profit and to minimize the cost of production. However, in the market as per the general information, we get that some specific companies often perform better than others (Stevenson & Hojati, 2007). This happens due to the difference in various points of concentration, especially during the production process. Companies differ in labor, capital, and their locations and this can lead to an advantage of a particular company against another. This variance in the factors of production is the reason why we have a best-performing company and another one that performs poorly. Therefore, every company has invested in specific systems that will fully exploit the potential of these factors of production thus favoring them. Operation management also plays a very general role of logistics during the system establishment (Chase, Aquilano & Jacobs, 1998).

Research covered in the MBA Operations Management module indicates that many successful companies apply the system of specialization of labor to help to maximize their profits (Cases & Case, 2004). Employees often have strengths and weaknesses, and those that are encouraged to yours their strengths are more loyal and engaged. Remember specialization does not only apply in the case of employees, but it also uses to material resources.

MBA Operations Management
MBA Operations Management

The best thing about specialization is that the workers get to choose what they love to do according to their ability and natural aptitude and this gives them the opportunity to perfect those skills thus saving a lot of production time. This prevents the delays that are created by the continuous shifting of workers from one point to another. Through this specialization, a company can make good use of his laborers thus increasing the profit levels. Labor specialization system works hand in hand with the division of labor in a company (Fitzsimmons, Fitzsimmons & Bordoloi, 2008). This will ensure that the duties are only performed according to the line of interest. Material specialization will mean that a particular material will be developed and adapted for a specific use.

On a regional basis, each region will produce the products that they are best suited. This can be applied to both locational and capital systems – This will become apparent on the MBA Operations Management module. A combination of material specialization and human specialization can lead to a maximized efficiency (Stevenson & Hojati, 2007). Capital systems can also be used to ensure that there is adequate and abundant production in the firm.

Through the use of capital goods, it will enable the producers to produce more efficiently and surplus output. The company’s capital should be invested in short term avenues that can translate excess profits within the shortest time, in this way we will be able to out compete effectively in the market. Priority is also another factor that needs to be considered especially when distributing capital in the business. Activities that have a real history on profit maximization are to be considered the first. On location of the company and its effects to profit maximization is also important as well. Location of the company should be based on specialization and distribution of raw materials (Chase, Aquilano & Jacobs, 1998). The movement of raw materials to the company should be profitable, and the same applies to consumer’s accessibility to the firm. In other words, the location of the company should be close to the market as well as the raw materials thus reducing unnecessary cost.

Outline how planning the operations system takes place and how international considerations are integrated into planning

As discovered in the MBA Operations Management module, planning can be defined as the process of analyzing, researching, anticipating and influencing change in society (Wacker, 1998). Various pieces of literature indicate that before an action is executed, it is important to draw a plan to avoid things falling apart as it was not planned. Therefore it is very healthy to plan for activities in a business environment before their execution. Planning is a role that is left for the managers and the executives to perform in a healthy business climate. Moreover, many other activities are incorporated in planning. A strategic planning of the operation can communicate what the institution is striving to become and it also maps the necessary step that is needed to get to the target. In the past, the operational plans of a company used to take an entire ten years but today companies even plan year by year (Fitzsimmons, Fitzsimmons & Bordoloi, 2008).

MBA Operations Management graduates state that planning is a procedures activity that involves gradual processes for the plans to be approved and exhibited appropriately. First, the vision of the organization needs to be stated and used as guidance during planning (Krajewski, Ritzman & Malhotra, 1999). The vision statement is approximately two to three sentences that spell out the intentions of the company; it shows how far the organization is willing to strive and reach. It is important to understand the organization right before the vision is created. At this point is important to create the image within the international standards that doesn’t violate any business law of operation. The next step in planning is to write the mission statement – This has been covered in the MBA Operations Management module through the year. Mission statement unlike the vision statement, explains what the organization exists and the path it will take to achieve its vision. Business wise, the mission statement is usually shorter than the mission statement.

A similar process is used in the construction of the mission statement. However, in the mission statement is where many people display false information. This is common with the organizations that deal with illegal products. The third process in planning is to perform a gap analysis. Gap analysis involves the comparison between the current operational situation and the vision of the company. This stage requires a lot of innovativeness and future oriented individuals. This is because there is need to compare the current situation and what the business hopes to be (Cases & Case, 2004). This process is much involving as it requires a collection of data and information outside the firm. The gaps that need to be examined include financial differences, customer relation, market share and internal systems.

Formulation of goals is the fourth step in the planning process. The goal can either be short term or long term. In many occasions, they are always referred to as SMART goal (Chase, Aquilano & Jacobs, 1998). The goals need to be implemented right from the managerial level to the employee level. Lastly, monitoring the progress of the plans. The goals should be followed in every quarter of the business year. This is usually done by inquiring from those who are responsible in such areas. The above processes are inclusive of other minor steps that are also of importance in the process of planning. The international laws are always considered when an organization is planning. Ethical consideration at an international level, morals, and other core values are also applicable (Stevenson & Hojati, 2007). During the operational planning, another important thing is the consideration of the international laws that govern all the business activities in the globe.

Describe some of the quantitative tools and techniques of Operations Management and how these are applied to formulate solutions to business problems.

In an organization, managers and the CEO always rely on their experiences in making decisions. However, in some situations, they would like to know what exactly the number saying is (Schmenner & Swink, 1998). In such circumstances, there is need to use quantitative methods especially when it involves an era of big data. The method, therefore, has been used by several operational analyzed to provide evidence that can guide in managerial, distribution, marketing, and personal decisions. The method also helps the executive team to predict what is expected to happen in future. This does not mean that the qualitative methods are point blanks, but they are also preferred in an individual situation. The manager is supposed to convert the inputs that are inclusive of the factors of productions into outputs (Fitzsimmons, Fitzsimmons & Bordoloi, 2008). The quantitative techniques and tool include regression analysis, linear programming, factor analysis, data mining and descriptive data analysis.

Descriptive Data Analysis

This process involves the use of pie charts, maps, graphs, frequency tables, histograms, control charts, run charts and Ishikawa diagrams. They are used to analyze mainly the descriptive data in the production process. Research indicates that this can be achieved by entering the data into software like EXEL, STATA, SPSS and other software used for the analysis (Cases & Case, 2004). This method can be used to identify the problems realized in the business and attended to accordingly.

Regression Analysis

This is a traditional method that is mainly used by economists and the operational analysis; regression involves the use of complex statistical equations that help to predict the future output and maybe find out the cause of the past problem. This can significantly benefit the business. The products of the regression equation are known as the predictors or the dependent variables. Research indicates that economists and businesses have used the regression formula to estimate effects of advertisement expenses in companies (Chase, Aquilano & Jacobs, 1998). Though the utilization of this method, we can determine the correlation between two products in the business.

Linear Programming

All organizations and companies are faced with the problem of scarce resources. This usually calls for a selective allocation of resources, and this often gives the manager a little bit of challenge. Linear programming, a conventional technique of management analysis and operational research (Schmenner & Swink, 1998). This is a mathematical program that helps us determine how to achieve optimum outcomes. It is also indicated that it can help in manufacturing and transport analysis.

Factors Analysis

This method is used to survey data and group statistical data accordingly. It explores all the avenues to find out the correlations and relationships (Krajewski, Ritzman & Malhotra, 1999). For example, the method can be used by market researchers to analyzed data on consumer’s consumption habits. This will then help the organization with the product knowledge as they will be able to determine what quantity they should produce.

Data Mining

Research indicates that this method has grown over the years. It is used to analyze a large amount of data. This has been used by big business like the Amazon to monitor consumer’s behavior.

Discuss business situations for which tools of Operations Management can be applied.

According to recent scholars, operation management involves directing and managing the physical and technical functions of an organization (Cases & Case, 2004). The skills and tools are used in the development, manufacturing, and production processed in the operation sector. The tools are used in the below-explained processes and will be covered off in the MBA Operations Management module:

Project Management

Project management is a common factor in both large and small companies, and it often takes a lot of time to plan. From the accessing the supplies and delegating the employees to all the shipment cost and all the activities involved in the manufacturing of the products. The project management tools can be used in an organization to strategically plan creates a budget, salaries, overhead costs and every detailed information about the business. The spreadsheet can be used to manage all the activities and track areas not covered (Stevenson & Hojati, 2007).

Quality Control and Inspection

Assessment of the products is a significant activity in the manufacturing process. Assessment is important because it will enable the business to track whether it has met its goals or not. Additionally, assessment should form part of the regular management process to ensure the project is completed (Wacker, 1998). Literature shows that it is always healthy to criticize the outcome and even establishes other realistic expectations.

Equipment Maintenance Policy

Depreciation is expected in any business and therefore maintained is expected as well. The equipment should, therefore, be regularly checked to ensure they are still in a position to function effectively. For example in a vehicle company, the cars are expected to be continuously serviced when the time arrives (Chase, Aquilano & Jacobs, 1998). Computers and hardware needed to be checked for virus and cleaned to ensure a stable functionality. The maintenance calendars can be created by the operation tools and equipment.

Product Scheduling

This is also another instance in which the tools can be effectively applied. Manufacturing companies complete their product arrangements to get them from the product establishment to the respective point of sales to the consumers. This can be done using plan long range projects. The process is usually effective especially when the company is dealing with a significant number of customers (Cases & Case, 2004).

Explain how control of operations must respond to changes in the international economy.

Today’s economy is far much different from the economy of the olden days (Krajewski, Ritzman & Malhotra, 1999). The globally economy changes gradually day by day and these calls for a relatively positive response from every organization that is associated with the international trade. In a business environment, it is the duty of the managing director responsible for the operation to ensure that the company adapts to the changing global economy. From the financial perspective, organizations are intentioned at making high profits, and therefore it should vary its price with the world’s market price. Through this method, it will be able to secure a large section of the consumers (Fitzsimmons, Fitzsimmons & Bordoloi, 2008). In other words, the operation must respond effectively to the change in prices of goods and services.

Control of process must also meet the consumer’s demand on an international scale. The quantity and quality of good should meet the customer’s demand. The service team must ensure that they manipulate the consumers into buying their products without going into loss. This can be done by forming business merges and also ensuring that a lot of awareness is created (Stevenson & Hojati, 2007). The company should also be in a position of responding to the technological changes in the international market. Recruiting young and innovative minds to handle the technological shifts in the organization. This can also be advanced through training the worker on how to cope up with the constant changes in the body.

Conclusion

MBA Operations Management students will learn and appreciate that operation management forms the center of many organizations has it is characterized by several functions including planning, staffing, and production. Through the correct exhibition of duties, it can lead to the creation of a lot of profits. Through specialization, excellent location and use of capital goods, an organization can make a lot of benefits depending on the available resources. However, for this to occur appropriate operational tools such as linear programming should be used to predict the future outcomes in the organization. Such tools are always essential in project management and even in quality assessment.

References

Cases, T., & Case, F. (2004). MBA Operations Management.

Chase, R. B., Aquilano, N. J., & Jacobs, F. R. (1998). Production and operations management. Irwin/McGraw-Hill,

Fitzsimmons, J. A., Fitzsimmons, M. J., & Bordoloi, S. (2008). Service management: Operations, strategy, and information technology (p. 4). New York, NY: McGraw-Hill.

Krajewski, L. J., Ritzman, L. P., & Malhotra, M. K. (1999). MBA Operations management. Singapore: Addison-Wesley.

Schmenner, R. W., & Swink, M. L. (1998). On theory in operations management. Journal of operations management17(1), 97-113.

Stevenson, W. J., & Hojati, M. (2007). MBA Operations Management (Vol. 8). Boston: McGraw-Hill/Irwin.

Wacker, J. G. (1998). A definition of theory: research guidelines for different theory-building research methods in operations management. Journal of operations management16(4), 361-385.

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Recommended Reading For MBA Operations Management Students

  • Operations Management for MBAs by Jack R Meredith and Scott M Shafer
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I hope you enjoyed reading this post on MBA Operations Management. There are many other titles available in the business management and MBA dissertation collection that should be of interest to MBA students and academic professionals. There are many dissertation titles that relate to other aspects of business such as strategy, leadership, international business, mergers and acquisitions to name a few. It took a lot of effort to write this post and I would be grateful if you could share this post via Facebook and Twitter. Feel free to add your thoughts in the comments section. Thank you.