management and operations ASSIGNMENT 2

ASSIGNMENT 2 FRONT SHEETQualification BTEC Level 4 HND Diploma in Business Unit number and title Unit 4: Management and Operations 488 submission submission... Demonstrate an appreciati

ASSIGNMENT 2 FRONT SHEETQualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 4: Management and Operations (488)

submission)

submission)

P4 P5 P6 M4 M5 D2

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Assignment Brief 2 (RQF)

Higher National Certificate/Diploma in Business

Student Name/ID Number: Nguyen Duc Huy GCS18515

Unit Number and Title: Unit 4: Management and Operations (488)

Unit Assessor:

Operations Issue Date:

Submission Date:

Internal Verifier Name:

Date:

Submission Format:

Format:

• This assignment is an Individual report and specifically

• You must use font Calibri size 12, set number of the pages and use multiple line spacing at 1.5 Margins must be: left: 1.25 cm; right: 1 cm; top: 1 cm and bottom: 1 cm

• You should use in text references and a list of all cited sources at the end of the essay by applying Harvard referencingstyle

• The recommended word limit is 2000-2500 words (+/-10%), excluding the tables, graphs, diagrams, appendixes and

references You will not be penalized for exceeding the total word limit

• The cover page of the report has to be the Assignment front sheet 2 (to be attached with this assignment brief)

Submission

• Students are compulsory to submit the assignment in due date (slot 38) and in a way requested by the Tutor

• The form of submission will be a soft copy posted on http://cms.greenwich.edu.vn/

• Remember to convert the word file into PDF file before the submission on CMS

Note:

• The individual Assignment must be your own work, and not copied by or from another student

• If you use ideas, quotes or data (such as diagrams) from books, journals or other sources, you must reference yoursources, using the Harvard style

• Make sure that you understand and follow the guidelines to avoid plagiarism Failure to comply this requirement willresult in a failed assignment

Unit Learning Outcomes:

LO3 Demonstrate an appreciation of the role of leaders and managers play in the operations function of an organization LO4 Demonstrate an understanding of the relationship between leadership and management in a contemporary business

environment

Assignment Brief and Guidance:

*This assignment guidance is for reference only and can be customized by the tutor to meet specific needs

Assignment scenario

You are the head of Operations Management Department of a company in a particular industry (which will be specified

by your course tutor) You have been assigned by the managing director to carry out an evaluation on the current

operational activities and the role of management and leadership in various contexts This report will enhance the

decision making of BOD in the Annual General Meeting with regards to adjusting the operations activities to meet the future objectives and expectations of stakeholders

N.B The course tutor will choose different industries which manufacture different physical commodities for different classes studying this module For instance, car manufacturing, food and beverage, pharmaceuticals, mobile phones,

computers and laptops, etc.) You are free to choose the company operating in the specified sector

Structure of the Report:

General introduction: main purposes and structure of the work

Main contents of the report:

1 Explain the operations and operations management theories and approaches and the role that leaders and managers play

In specific:

Discuss the key theories of operations and operations management including six sigma, lean production and queuingtheory

Explain different operations management approaches including MBO & SMART criteria, TQM, Kaizen, JIT

production Find out whether your chosen company is currently applying any TQM techniques and JIT production

or not with evidences to justify your answer Besides, propose a SMART objective for your company to aim for in the future

In addition to that, critically evaluate the importance of different operations management approaches incontemporary business environment to help obtain and maintain business competitive advantages

2 Explain the importance and value of operations management in achieving business objectives In specific:

Discuss the key operational functions of a business (e.g product and process design, scheduling, transformation process, control and distribution systems, logistics and inventory management, capacity management) Find out how your company is currently operating these functions in practice (at least 3 applications must be provided) Explain how managing these operational functions would help your company to achieve the targeted SMARTobjective (which has been proposed by you previously) Which operational function(s) is the most important one

to obtain that objective?

To enhance your discussion, evaluate in general whether management or leadership role is more appreciated in the work of managing a business’ operations once the objective is already specified

3 Assess the factors within the business environment that impact upon operational management and decision-making byleaders and managers In specific:

Briefly carry out an industry analysis by using Porter’s model to identify the key forces affecting the operations ofthe chosen company

Identify a recent scandal (should be relating to CSR, organizational values, ethics and sustainability) of the chosen company or other company(ies) in the specified sector and discuss the relevant stakeholder pressures on the

strategy and operations in general

A conclusion to summarize all the key findings and analysis must be presented Plus, you can carry out a self-criticism on

your own work (in terms of strengths and weaknesses)

Unit assessment criteria

LO3 Demonstrate an

appreciation of the role

leaders and managers

play in the operations

function of an

organization

LO3 & 4 D.2 Critically evaluate

application of operations management and factors that impact

on the wider business environment

P4 Explain the key

approaches to

operations management

and the role that leaders

and managers play

M.4 Evaluate how

leaders and managers can improve

efficiencies of operational management to successfully meet business objectives

P.6 Assess the factors

within the business

M.5 Analyze how these

different factors affect the business

environment and wider community

managers

Assignment 2

In this assignment, I am going to discuss and explain about operational theories, functions, approaches roles of leaders andmanagers play in enterprises Moreover, I am going to perform relationship between operational management and businessenvironment

Samsung is my chosen company for assignment two Samsung is an famous Korea technology corporation

Introduction

LO3 Demonstrate an appreciation of the role leaders and managers play in the operations function of an

organization

P4 Explain the key approaches to operations management and the role that leaders and managers play

1 What is operation management?

Operation management is the administration of a business to maximize the level of profit by planning, coordinatingand controlling The operation management attempts to transform original materials to products and services.Additionally, it balances the cost between manufactures and revenue to get the highest level of profit

2 Theories of operation management

a Six sigma:

Six sigma is a chain of process with an aim to analyze and to reduce the defects, lower the cost of

products and services and to meet the customers’ satisfaction It helps to reduce the defects up to

99.99999% Particularly, instead of testing output products and services, this method focuses on checkingand improving the process and procedure to make products and services Six sigma is originallydeveloped by Motorola and then is adopted and enhanced by Honeywell and GE

Six sigma is divided into six levels:

Six sigma are based on a process which is called DMAIC( DEFINE,

MEASURE, ANANLYZE, IMPROVE, CONTROL)

(ECCI Vietnam, 2019)

b Lean production: Lean manufacturing is one of the modern management methods to streamline production, reduce

waste in businesses, and increase business efficiency Besides, it cannot be applied for all companies because some aspects of this method are not appropriate for some organization types The aim of lean production is to reduce the inputmaterials, time- consumption and labors but it still ensures the productivity, efficiency and quantity The benefits of lean production are enhancing products and services’ quality and productivity, shortening manufacture time, reducing

the tangible and intangible cost in producing processes and raising the efficiency of using facilities

(Steven, 2109)

c Queuing theory:

The Queuing Theory is also called Waiting Line Theory This was proposed by A.K Erlang According to him,

the theory applies to situations where a customer comes to a store or station to buy the services and wait forsome time before availing it and then leave the system after getting the service The operators need to decide thelevel and quantity of products not too high or low If adding to much capacity, it leads to the increase of leisuretime in business By contrast, small capacity will cause the displeasure of customers Thus, the final goal of thequeuing theory is to gain economic balance between the cost of services and the cost of waiting time

Customers waiting to buy famous moon cakes

(Source: Kenh14, 2016)

3 Explain different operations management approaches including

a Principle of Total Quality management:

Principle of Total Quality management is a business method concentrates on quality and depends on participation

of all the members in the company to achieve long- term goals through customers’ satisfaction and society’sbenefits The ultimate goal of principle of total quality management is to enhance products’ quality and fulfillcustomers The strength of this method is that it provides comprehensive system for managing and enhancing allaspects in business’s quality and mobilization In conclusion, the crucial part of this method is encourage staffs

to work together to improve products and services’ quality

(Dizanna, 2008)

b Just-in-time inventory (JIT):

JIT is a modern operation system where the material, goods, and products are carefully calculated in order tomeet the exact quantity of products and services in business The method has vast amount of benefits it is used

to minimize the inventory, raising productivity and reduce waste, storage area, defective products It is also used

in selling process to balance the quantity of products in the company and the quantity of customers’ needs.Nevertheless, in today dynamic economy, it has some disadvantages while applying this method The change incustomers’ perception because of globalization is the first reason They tend to buy the unique products instead

of affordable ones

c The concept of continuous improvement:

The concept of continuous improvement is a Japanese business theory in which all aspects of the organizationneed to be improved and enhanced all the time The employees who work in a company adopting this method

have potential chances to improve and improve their skills and abilities all the time Kaizen follows fiveregulations including teamwork, personal discipline, improved morale, quality and improvement suggestions.The benefits of applying continuous improvement are increase of productivity and products, employees areresponsible and agile

TQM method, Samsung has a famous message in 1993 that raised the staffs’ awareness The leader at that time,

Mr Frankfurt, forced his manager and staffs in the whole company to work together to create innovative devices

and equipment The staffs are oriented to have the prospect of new ideas and innovation About applying kaizen

method, Samsung broke barriers of advance ideas Especially smartphone segment, the invention of SamsungGalaxy has brought Samsung’s footprint to the world Samsung Galaxy is a smartphone segment with diversecost and vast amount of new advance functions such as S pen, large screen and vivid camera

P5 Explain the importance and value of operations management in achieving business objectives

1 Operational functions of a business:

a Controlling and distribution system:

Controlling and distribution system is the management of delivery goods from manufacture area toconsumption area effectively Distribution management composes materials, stocks packaging andhandling, order processing and transportation There are two types of distribution channels: direct andindirect ways

Direct distribution: this is the oldest and simplest method of distribution The producers sell productsdirectly to customers without any sellers

Indirect distribution: the products are delivered to customers through intermediaries such as retail orwholesale system

b Transformation of raw material into finished goods/ services:

There are four components when mention about this: inputs, transformation process, outputs andenvironment

(Source: Meredith & Shafer, 2002)

This is an example of transformation system of wine

Firstly, the grapes are the raw material (input) Secondly, the grapes are yeasted (transformation process).Thirdly, the wine is finished with right quality Finally, the wine is delivered to the next transformationsystem The environmental factor is customers’ feedback about the aroma, design of wine bottle, theprices of products

c Process design:

Product development is the procedure of creating a new products or services in a company and enterprises to serve the society Design is the activities to form an outlook and shape, architecture

of a product, working on the material and processes Development refers to the process of identify

the market opportunities and customers’ perception Then, the company creates products to theidentified market and testing

Market pull: It is the activities to determine the customers’ need through direct marketing Then the enterprise determines the probability of the new product ideas The “lead users” are very

crucial

Technology push: the innovation process only comes from technologists and scientists.

Technology push means creating a new products Then define the ideas of market about that tocontinuing developing

The process: The process is a series of activities before get in practice

(Source: Cymer LLC, 2016)

d Capacity management

Capacity is the max level of output that company provides to the market The capacity is

mentioned refers to the productivity, not the quantity of products There are many factors impactcapacity: products and services factors, process, facilities, human factors, supply, capacity ofnetwork and external factors