Environmental Factors Affecting The Operations Management Commerce Essay

Environmental Factors Affecting The Operations Management Commerce EssayIncrease emphasis is spillage towards reduce waste, recycle and reuse crossroad parts. Societies and commwholeies have stressed the adopt on enteritis whereby watchs over waste disposals, global warming and other environmental issues atomic number 18 highly expected. Meeting Environmental quality standards ar one of the fundamental main aspects played by operations managementThe signifi stinkpotce of this issue is demon- started by a set of standards termed ISO 14000. Developed by the International Organization for Standardization (ISO), these standards provide guidelines and a cortication program documenting a companys environmentally responsible actions.Key environmental factors basically have-to doe withing operations management tail assembly be identifiable as MICRO and MACRO environmental aspects asMICROLabor in competencyorganisational structureOrganizational cultureMACROTechnologyInnovationMarket/ customersEconomic conditionsGovernmental issues and regulationsAs far as the Alton Ltd is concerned one of the key environmental aspect can be indicated to be the mixed bag in economic environment of UK where the purchasing power of the people goesDown then ominous impacts could be expected. As a result visitors may demand even lower prices than 19 pounds per head having in mind the 2o million pound investments do to improve activities in the park. As a precautionary measure Alton can enter into a hedging deal if the economic conditions expected to be unacceptable.higher(prenominal) labor cost would be another environmental fact that can bring down the profit margin if the company has no proper control over the number of employees assigned irrespective of peak or off peak.Different perception of work measuring(As far as work measure is concerned it is a mathematical ferment of establishing the hairsplitting while duration that would be businesslikely taken by a qualified w orker at a designated degree of performance.In the view of work measurement at that invest are number of techniques have been set up to full fill the purpose. Regardless of any(prenominal) the technique in use the basis consists of three phasesan psychotherapy phase in which the job is spited into convenient, isolated components, commonly known as elementsa measurement phase in which the specific measurement technique is used to ascertain the time required (by a qualified worker working at a defined level of performance) to complete each element of worka amalgamation phase in which the various elemental times are added, unneurotic with appropriate allowances (see below), to construct the standard time for the complete job.The techniques used to measure work can be classified into those that depend on direct comment of work, and those that do not.For example, some techniques, such as pre determined motion systems and the use of synthetic or standard data can provide times from pr etending or even visualization of the work. However, the data on which such techniques are suitcased were almost certainly based on earlier observation of veridical work.Choosing a measurement techniqueThe choice of a suitable measurement technique depends on a number of factors includingthe purpose of the measurementthe level of gunpoint requiredthe time available for the measurementthe existence of available predetermined dataThe cost of measurement.It can be said that there is a tradeoff amongst some of these critical factors. For example techniques which derive times rapidly may result in relatively less suitable for some processes. around purposes, such as the establishment of individual performance levels on short-cycle work.The main advantage of structured and systematic work measurement is that it enables a common computer program for appraising and comparison of all types of work. The results obtained from work measurement are commonly used as the basis of the plannin g and scheduling of work, manpower planning, work balancing in team working, costing, labor performance measurement, and financial incentives. They are less commonly used as the basis of product design, methods comparison, work sequencing and workplace design.2 line twoVarious Operation strategies adopted by Tesco LtdAccording to the given scenario (scenario 2) Tesco is a wind giant with its core strategic business unit being chain of super markets having its presence in overseas as well. Number of operational strategies can be quoted in the given scenario which is attributable to strategic, tactical and operational levels.According to Tesco with its reputation to value as a strategic measure it has launched a web page that facilitated non food items as well as financial servicesAs per the tactical aspect Tesco has introduced different formats for shopping accompanied by It assisted improved customer relations that pass on affect long term sustainability of the entityThrough ope rations management Tesco will be in a position to put forward its critical success factors like protest Brand image and tightened supplier relations that gains cost advantage, in turn will add value to its short, intermediate and long term decisions in a to a greater extent than favorable manner.For an example, given the fact its sales growth reads around 21.9%. Cost allocations, budget preparations and controlling distributions to high sale segments and assigning employees to appropriate outlets can be strategically determined through effective and efficient operations management.Strategic importance of operations management in the decision making process3 Task threeWhen it comes to designing of a product or services number of factors will affect the process such as guest expectationThreat of substitutabilityProduct or service viabilityRestrictions from government and various social organizationsAccess to raw materials and effect on the existing product portfolio.Conversely, if the designing stage can be implemented successfully then the company would end up with high earning potentials that will also contribute to stakeholder wealthiness maximization. Long term sustainability may also be foothold on that particular forward-looking designed product enabling advancedly emerged markets etc..4 Task fourCapacity planning and control is an issue which is faced by almost every process in a given organization. Furthermore it can affect directly to the efficiency and effectiveness of the operation. Capacity planning and control is concerned with making sure there is some level of balance amidst demand placed on an operation and its ability to fulfill the demand. If an operation has too much capacitor at any point in time it will be chthonicutilizing it resources, paying out for machinery and facilities and often paying its staff but, because demand is lower than capableness, its costs are spread over two hardly a(prenominal) customers. As a result the cost per customer will be very high. If it has too little capacity, its costs will be low (because its facilities will be fully utilized)however its capacity will be very poor as it is either turning customer away or making them watch for their product s or services. In light of this, it will undermine the companys success towards the prox. Therefore there are serious consequences of getting the balance between demand and capacity wrong.Tesco can gain cost benefits with more appropriate allocation of supermarket space for fast moving items and also allocating employees at correct capacity without inputting more labor nor inputs that will lead to diminishing returns.Decisions are aimed at providing the total amount of capacity at the right place at the precise time. There are number of factors to be looked into before arriving at its final decision on where to establish, but the ideal locations are where the costs are at lowest. When it comes to the long term view capacity planning is largely determined by the size of the facilities provided. Like availability of a trained workforce, staffing levels in call of market demand and need to make the stable workforce, number of people in operations, cost of land and premises. In the short course available capacity must be allocated for the relevant task by scheduling the number of people. Equipment etcInventory planning and control systemsInventory control system is a process for managing and locating objects or materials. In common usage, the term may also refer to just the software components.Modern archive control systems often commit upon barcodes and RFID tags to provide automatic identification of blood objects. In an academic study performed at WALMART, RFID reduced Out of Stocks by 30 percent for products selling between 0.1 and 15 units a day. Inventory objects could include any kind of physical asset merchandise, consumables, fixed assets, circulating tools, library books, or capital equipment. To record an gillyflower transaction, the system uses a BARCODE SCANNER or FRFID READER to automatically identify the inventory object, and then collects additional information from the operators via fixed terminals mobile computersBuffer inventory is required as1. Compensation for differences in the timing of affix and demand2. Compensation for the uncertainties inherent in supply and demand3. One or more stages in the operation cannot supply all the items it produces simultaneously4. Material cannot be transported instantaneously between the point of supply and the point of demand(www.growingsmallbusiness.com)Today maintain inventory levels have become a tuff challenge. inventory not being managed would result in adverse manner where substantial expenses will incur..Fortunately, there are management information systems that exist which use microcomputers and a variety of industry specific software. The cost of carrying inventory today has become a major(ip) expenditure and requires immedi ate attention. The benefits of inventory control far outweigh the costs. Any reduction in inventories, whether it is raw material, work-in-process, finished goods or supplies, can have a dramatic impact on your bottom line.Industry averages suggest that a 20 percent DETERIORATION in inventory is achievable with a computerized inventory control system. For a entity with a yearly sales volume of $1 million, such a reduction would result in savings of $14,400 per annum and would free up $48,000 of new dollars for reinvestment. For a entity with a yearly sales volume of $10 million, the figures are proportionately higher $144,000 per year in savings and $480,000 in new dollars for reinvestment.5 Task fiveOperations strategies that can be used for TescoBasically retail industry involve in the business of sale of new or used goods to the end consumer for personal or household consumption purposes. Since the cut-throat competition is becoming tougher in retail space with increasingly growi ng supply and demand.In order to continuously improve on the processes and leverage on the core competencies, in the case of TESCO (OWN BRAND NAME AND ECONOMIES OF SCALE) there is a need for a foundation that provides accurate information wherever whenever require. This brings the need for the strategic management of supplies and inventory as far as retail industry is concerned. To change an in-store paper based environment of registering sales in retail shops to an online shopping environment, there is a need for integration would arise in order to leaven customer satisfaction, increase productivity and liberate sales from registering chores and extend market beyond traditional bounds.To sustain and over grow in the market place enriching category, item planning, streamlining product introductions and other business strategies alone will not be sufficient, nevertheless to improve the customer experience and further differentiate the smirch real time visibility to sales and order status, in store kiosks, and service desk encasements and strategic technologies to track inventory have become the call.New efficiency I managing the stocks and collaborative forecasting and replenishment help ensure the product customers want are readily available on store shelves.For a leading retailer like Tesco inventory lying would be of great use since it holds on to substantial inventory levels that are associated with higher stock holding costs. besides risk of inventories being destroyed is also there resulting In disastrous effects.In contrast Tesco and Alton towers ltd are two extreme entities catering to different industries where Tesco is more physical assets and labor oriented whereas Alton is more or less into services..In comparison both the entities have to have better control mechanism with efficient control over labor, resource management etcProject management and quality controlProject Managers take decisions in planning and monitoring tasks and resources, cont rol cost and budgets and identify and resolve issues associated with the contrive.To be successful the operation management should sign up the range of competing requirements for resources. The project managers must retain all levels of operation management by monitoring authoritative projects in an aggregate form. They can provide the operation management tools and expertise to make informed decisions that improve the organization as a whole. Without a single point of project planning and control, decisions such as resource assignments and issue reorganization that are not effective. For an organization to accomplish project management successfully, they must organize the track for resource allocations throughout the organization.Compare and contrast between retail and service operations in the view of Tesco and Alton LtdAs far as the two entities are concerned Tesco would emphasize more on its product, distribution channels as well as employees working under the company. On top of that Tesco is currently maintaining strategic business units such as Tele communication, groceries, non food items and provision of financial services could be segregated from Alton Ltd which has one strategic business units operated in as a hotel and concerned on solely on providing customer friendly services in its theme park.In a broader scale Tesco with its chain of super markets operated in different geographical areas where activities would be concentrated based on its various economic factors, cultures etc nevertheless. Of its critical success factors viz. brands, lower prices being maintained, and local approach for advertising and marketing will have to be maintained in order to operate at current capacity as well as future growth potential.CONCLUSIONConcerning the facts included in the aforementioned report it can be concluded that Alton Ltd has future potential of having a steady growth in to the future whilst Tesco seems to be struggling to remain in Monopoly status through effective and efficient .operations management.On top of that it would be more appropriate Alton Ltd could further allocate the theme park separately for a certain age group and train the workers to undertake any jobs specialized to that particular area (area allocated to specific age group)also multi task capable workers would improve the efficiencies in the operations inside the park in a instance of absence of employee for a major task.Tesco will be required to minimize the regulation pressure currently confronted with and improve in customer base through innovative thinking such as launch of Tesco.com and maintaining better customer relations,Since Tesco is equipped with few strategic business units, its corporate level strategies are bound with these business units which will enable the company to evolve if the cooperate and business strategies are achieved through its effective operation managementBetter family with suppliers would enable Tesco to maintain economies of scale in an inflationary situation over its other key competitors.REFERANCES(www.gorecroot.com)www.ims-productivity.com)www.ims-productivity.com