Deinition Of Operational Management

Published Date: 02 Nov 2017

Operating functions is responsible for delivering valued goods and services for the organizations being, According to slack defines operating functions" the process of transforming input resources into useful outputs and adding value to some entity, constitutes the primary and central function of the organization "

It deals with the design and management of products, services and supply chain, it considers development and utilization that firm needs to deliver goods and services

Operational management is the activities, decisions and responsibilities of the managers in the organization having responsibility for managing all resource’s and process comprise the operating functions, it is the set of decisions associated with the creation of the organizations product or service, to the management it s a value adding process

AIM

. This assignment is based on the details which denotes the growth of Toyota

Corporation in means of growing into a multinational corporation including many new technologies and their vision is to become a learning organisation through rent less reflection and continuous improvement.

DEINITION OF OPERATIONAL MANAGEMENT

According to Cambridge University defines "operations management as the planning, organizing, coordinating and controlling of transformation of inputs to outputs"

Operations management involves the planning and coordination of work. It is especially concerned with the creation and delivery of products and services and with providing the best match of supply with demand

Operations management is the activity of managing the resources, which are devoted to the production and delivery of products and services.

Introduction: Toyota corporation

Toyota Corporation: Toyota corporation is a Japanese multinational automaker headquarter in japan, it is largest company in the world by revenue, the company was founded by kiichiro toyodo in 1937 as a spinoff from his father’s company Toyota industries to create automobiles, it created its first product, the Toyota AA. Vehicles were originally sold under the name "Toyoda" from the family name of the company's founder, kiichiro toyoda; Toyota received its first Japanese Quality Control Award at the start of the 1980s and began participating in a wide variety of motorsports. It is also a leader in environmentally friendly and technologically advanced cars,. TMC is the world’s largest automobile manufacturer by sales and production. Entering the US – market was for a breakthrough for Toyota in terms of automobile exports, In 1952 it exponentially grew successful Toyota Motor Corporation group companies in 2008 Toyota had total unit sales of 8.972 millions cars and had an annual turnover of 239.4 billion US dollars and in the same year it adopted the status of " the biggest automobile – manufacturer, In 2002, Toyota managed to enter a formula one works team and establish joint ventures with French motoring companies. In 2010, Toyota Motor Corporation employed 317,734 people worldwide. Toyota has companies Lexus (including the Scion brand), Daihatsu and Hino Motors, along with several "non-automotive" companies. TMC is part of the Toyota Group, one of the largest conglomerates in the world. Toyota provides financial services through its Toyota Financial Services division and also builds robots.
 In October 2012, Toyota announced a recall of 7.43 million vehicles worldwide to fix malfunctioning power window switches, the largest recall since that of ford motor company

Their aim is to make improvements f convential technology and pioneering efforts in technologies and co-existence and co prosperity with customers and society by building better cars and creating good communities and society

SERVICE;

A type of economic activity that is intangible is not stored and does not result in ownership .A service is consumed at the point of sale. Services are one of the two key components of economics and other being goods.

Mc pycraft views service as the operations ability to introduce new products and service, in the automobile plant it means the ability to adapt its manufacturing resources so that it could launch new models.

Types of safety:

Public (government)

Profit or not for profit

Government service

In this topic we are going to discuss about the service made by government, it is like educational, health, employment, and social security

And the Toyota corporations does service in many ways for the safety of the customers Toyota is committed to world-class safety to protect the lives of customers, it will continue renewal and improvement and develop technologies ahead of the times to provide vehicles that satisfy evolving needs in every region around the world 

"The safe and responsible ways of moving people" is the Global Vision, Toyota considers safety the most important priority and promotes product development with the ultimate goal of, one day, "completely eliminating traffic casualties." promotes the Integrated Three Part Initiative, viewing people, vehicles and the traffic environment as an integrated whole while pursuing "real-world safety" in product development based on investigation of actual road accidents.

Education;

Toyota uses its manufacturing expertise to hold programs that promote the advancement of science and technology and supports the implementation of educational programs worldwide that will develop future leaders. Training School Teachers in Methods of School Operation and Teaching Skills to Improve the Scholastic Abilities of Children, Support for Science and Technology, Education in the UK Established in 2003 by Toyota Manufacturing UK, the Toyota Technology Challenge is a national school-based challenge, which encourages pupils to design, builds, and race environmentally friendly vehicles made from recycled materials.

Health

Toyota is making an effort to create a safe and energetic work environment, Toyota is conducting employee health checks, including items required by law as well as its own items. Toyota is conducting a lifestyle improvement campaign and recreational activities, through which it is making efforts to promote better health. Toyota also provided education and information to improve the awareness of each employee, which is necessary to develop better lifestyles. In the future, Toyota will employ the Meal Check System and begin instructing employees on how to improve their dietary habits and educating them thorough self-management.

Factors of production:

Five factors are:

Quality

Speed

Dependability

Flexibility

Cost

Quality:

Customers do not see the production of goods, they judge the quality of the operation on evidence of the goods themselves, quality of goods is really evident, they judge on the outcome of the service, and the aspect it is produced

Toyota is committed to providing quality vehicles that are highly reliable and driven with a sense of safety and reliability.

Comparing to the organization they think the quality is to specify the product is reliable and make sure the product is attractive and blemish, and it allows each person responsible for quality and check the product themselves

They adopted " todays quality produces tomorrows successes " as their plant slogan, for suggestions among employees, and to resolve their quality in highest levels

Speed:

It is minimizing the time between dealers on requesting a vehicle of a particular specification and receiving the minimized time to deliver the spares to the service center

Dependability: it is defined as an on time delivery of vehicles to dealers, and on time delivery of spares to the respected services in people who are in need

Flexibility: introducing new models, a wide range of options and adjust the number of vehicles manufactured and rescheduling the manufacturing priorities

COST: getting done things cheaply to produce goods and services at a cost which is raised correctly for the market allowing to the return of the organization

Main body:

Tangible and intangible;

A tangible product in an organization is defined as a physical item, which can be seen, touched and describing them in dimensional terms and has a monetary value

Intangible are those, which could not be described in terms but can feel their benefits such as services and goodwill.

Comparing to the organization we are going to discuss about their quality service to the customers Toyota has worked to provide its customers with outstanding services and quality vehicles and its has expanded its value chain by increasing the productivity of dealer servicing and by encouraging its wider use

And it focused on improvements on servicing and providing customers satisfaction in each city and town

4v’s analysis: volume, variety, variation and visibility

VOLUME: Toyota cars model volume is high according to the large number of car dealers therefore there should be specialized models to give the high quality compact models which can be afforded even in low prices

VARIETY: Toyota car model variety is high and customers can choose according to their needs and it has so many models, which can be afforded to buy on the customer’s desires

VARIATION: Toyota car model variation is very high after demanding benchmarking Process; Company is producing high models when there is a demand on the production with dealers

Visibility: Toyota cars are low in visibility, there is a time gap between production and delivering it to the dealers, the producers does not have a contact with the customers but they provide standardized products which can attract the customers,

PROCESS DESIGN:

According to slack defines design is which happens before creation, it is to conceive the looks, arrangement and workings of things before it gets created, it is a solution in an organization that will done to deliver ideas and works out, it is systematically done in all levels, process design is important in organizations to understand the design objectives, when other process and natures are being decided, it is set in process according to their volume and variety characteristics, the details of the process must be analyzed to fulfill its objectives, it should be done in a way it provides appropriate resources and achieving specification of product or service

Operations design : according to slack defines " operation design is the process by which some functional requirement of customer is satisfied through the shaping or configuration of the resources or activities that compose a product or service or the transformation process that produces them

* The purpose of design is to satisfy the customers and it applies to both product and services and process, it starts with a concept and ends with a translation concept, which can be created

Comparing to bp: the design is created in away it gives complete satisfaction to the people by giving various features design like human touch by expressing the people-friendliness and process design in a way it should be user-friendly operations in the indicator area and many other infrastructure productivity in the car, they make sure that the product was introduced to the market designs with technological advances on motors, engines and many featured areas for the comprehensive development o manufacturing and storage and also on related structures and further development of regulation and standards

PRODUCTION;

The processes and methods used to transform tangible inputs and intangible inputs into goods or services, manufacturing of a product in a large scale, resources are used to create output which is used for exchange value, production is done by using assembly line. The process is done carefully and it is done in a way to produce greatest quantity with fewest labour works and time

This diagram shows us how the production is done in Toyota Corporation; firstly the order production is start from the customer’s demand, on the basis on the demand from the customers the dealers order the product and execute the production plan and the car body processing is done in the sourced parts such as boots, bonnets, lower and upper parts of the car when it is sourced from various production plant it needed to be painted and it goes to the assembly unit and it proceeds to fit the mechanical parts such as engine, wheel ,steering which need to be assembled and after testing of the end production sequence it line-off to the dealer and based on the production order he delivers it to the customers

OPERATION STRATEGY:

Slack says operation strategy is setting broad objectives that direct an enterprise to set their goal; operations are the resources that create product and services, it deals with the overall activities rather then setting individual activities, it concerns the pattern of strategic decisions and action, which set the role objectives and activities.

Operational strategy is the specific decision and action, which set the operational role, objectives and activities, the process of operation strategy is the method used to make specific content decisions, it is to improve operations performance over time

Toyota corporation strategy:

 Toyota produces motor vehicles for domestic and export markets. Toyota global vision is to increase the ratio of total global sales taken up by emerging markets and also strengthening r&d functions and focus on better making of timely provision of high quality suited for regional markets and needs, their strategy is to produce best cars and convert into a global supply market

Strategic decision: they launched variety of car models in the last five years and their sales have steadily increased, as a result their production capacity in markets has reached 3.1 million vehicles n 2102

* They have decided to apply onsite approach on analysing the kinds of vehicles used in various parts of the world, to develop the needs of people in each region to gain the trust of customers around the world

* To enhance product value by developing specialized models of the taste and environment of consumers in emerging markets, to increase their sales, they have introduced a new strategy that emphasizes the compact vehicle line-up to meet the needs of customers

LAYOUT

: Slack defines layout is concerned with physical location of its transforming resources, it is way of deciding were to place the facilities, machines and staff in the operation, layout should be clear in the organisation because it governs its appearance, it also determines in which resources materials, information and customers flow through the operation.

* The process how transformed resources are positioned and how various tasks are allocated to these transforming resources

* It is an important decision if the layout is wrong it will confuse the customer queues, long process times and inflexible operations

Classification of layout:

Fixed position layout

Functional layout

Cell layout

Product layout

Fixed position layout:

it is a very high mix and product flexibility, the products are not moved, and they have a high variety of tasks for staffs ,transformed resources are not moved between the transforming resources

Comparing to bp. they have a fixed layout for their manufacturing process and everything is clearly done in their process and after the process its comes to dispatching for the highest satisfaction of the customers

Functional layout: Derek l Waller says functional layout is also known as job shop, batch or process layout, different types of products are subjected to different process operations,

it is a mix product flexibility and it can be highly healthy in the case of disruptions

Planning and control:

Slack says the physical design of an operation providing the fixed resources, which are capable of satisfying customers demand, planning and control, are concerned with operating resources on a day-to-day basis and availability

The production or service should be delivered to the customer on the requested time, quantity and quality so it should have a planning and control towards their production and planning

It is the reconciliation between what the market requires and what the operations resources can deliver, its activities provide the system, procedures and decision which bring different aspects of supply and demand to ensure that process runs effectively and efficiently to produce what the customers need, planning is the formalization of what intended to happen in the future, it is not a guarantee that actually happens it is a statement of intention

Control makes the adjustments, which allow the operation to achieve the objectives when the plan is to set; the nature of planning and control activities changes over time

Operations planning:

Long term planning: it is planned to meet the future needs at a strategic level with vision, established goals and analyze the strengths and weakness, it is designed to meet the objective annually with forecasts and it is planned for a period more then five years

Toyota: their focus is to deliver on building better cars which brings dynamic growth, so they are engaging in revolutionizing on car making to bring more substance on efforts, they want to improve their cars in quality, design and procurement, they vision for the future is to make more hybrid vehicles and automatic, compact cars suited for regional markets and needs,

They have plan to design more innovative cars and robots for their future development growths to meet customers satisfaction

Medium term planning:

Medium term planning that takes to implement the goals from a year to five years, and stabilizing the net worth of the business by gaining more assets and paying liabilities

Toyota: they want to produce cars in good quality and affordably prices that are both exciting and environment friendly, they want to produce cars on the perspectives of car making and competitive manufacturing

They wanted to improve their development capacity and organisational improvements for continuously producing better cars

Short term planning :

Short term planning are those goals that are done within a short time period ,it can be done in a week ,it is done on a daily basis for developing the company goals and achievements .

Toyota;

They are producing cars one by one production based on customers order for individual output production, to accomplish they have set their goal as low cost, small volume production for which every consumers can afford to buy to make the goal raise on the final output efficiency

Inventory:

Slack says inventory is the stock of an item or resource used in an organisation, include raw materials, finished good and working in process

Derek l Waller explains inventory as which includes a vast spectrum of material transferred, produced, packaged in one way or another course of business

* It has a financial value, which for accounting purposes considered as a short-term asset

* Its function is to hedge against inflation and upward price changes, good inventory management is a part of the operations

Supply Chain management

Supply chain describes a longer channel stretching from raw materials to components to final products that are carried to final buyers

This diagram clearly shows how supply chain works, in manufacturing the supply chain is the linkage for the physical movement of all materials from suppliers, through transformation, and then as finished goods to customers, it is a distribution from the finished product to be delivered to the customer in a timely manner, it is a chain which involves rigorous attention to quality, cost or delivery times .it shows team work, cooperation and coordination throughout the entire organization.

*It starts from managing the raw materials process and then to the supplier, manufacture, distribution, customer it is a chain process which links buyer and seller for the satisfaction of the product consumed. It is well designed, planned, executed and controlled the object to create net value to maintain good organization coordinating supply with demand and assessing performance comprehensively

* It is an important integration of key business process for the purpose of creating value to customers; it works effectively to satisfy customer needs at the final period of distribution, its purpose is to progress trust and collaboration among supply chain partners

Quality management:

Derek l Waller (the international standards organization) defines quality " the totality of features and characteristics of a product, process or service that bare on its ability to satisfy stated or implied needs "

Quality is a key concern to all organizations it depends on their goods, process or services, it is related to people it involves a long term planning g it has a strong impact on the material supply chain, customers judge quality, producing superior quality products is the growth success of the firm, it improves their reputation world wide also increase market shares which translates into profits, it creates a high employee morale which improves productivity

Customers do not see the production of goods, they judge the quality of the operation on evidence of the goods themselves, they judge on the outcome of the service, and the aspect it is produced

Toyota is committed to providing quality vehicles that are highly reliable and driven with a sense of safety and reliability.

Comparing to the organization they think the quality is to specify the product is reliable and make sure the product is attractive and blemish, and it allows each person responsible for quality and check the product themselves

They adopted " todays quality produces tomorrows successes " as their plant slogan, for suggestions among employees, and to resolve their quality in highest levels

Conclusion: