Operational Effectivess

In: Business and Management

Submitted By blaine
Words 4112
Pages 17
Most of the company’s have a performance measurement and management system which deals with enhancing the performance of individuals or operations in a company, may it be a manufacturing or a non- manufacturing company. Performance measurement (PM) is a useful tool that helps the company reach its goals, and goals are straightforwardly described by Goldratt as, “the goal of a firm is to make money’, and without the right performance of individuals and operations, it cannot reach its goals. (TXTBK OPERATIONS MGT FOR COMPETITIVE EDGE).
First will define PM, and explain the use of PM in comtemporary business companies later explains how to appropriately conucdt performance measurement as discussed by scholars. Then will talk bout HD
Performance measurement can be defined as a prerequisite which helps in determining which aspects of an operation are good, bad or indifferent and to setting priorities, goals and timeframes for improvement activities’ (Terziovski 2002). Therefore it can be said that PM is a process which keeps various activities in control in order to enable it to reach its goals.
To adequately measure a firm’s performance, two sets of measurements must be used: one from the financial point of view and the other from the operations point of view and (TXTBK OPERATIONS MGT FOR COMPETITIVE EDGE) this work will critically explain the operations point of view in the contemporary business. Contemporary business has a great significance towards performance measurements in order to meet their objective and remain stable with a competitive edge over its competitors. The use of different strategies greatly harnesses the smooth and successful functioning of any business which will be described at a later stage. Trends have been changing in the past and are expected to be continuously on the run and a manager needs to be aware of the situations when the company…...

Similar Documents

Operational Management

...came with a new strategy called “HELP YOURSELF” 2. Is their operations strategy consistent with the overall strategy? What are the operational elements of Ginger hotels that provide this strategic dimension to the operations? Yes, their operational strategy is consistent with the overall operating strategy. Ginger hotel is a service oriented firm. Their innovative services and products were the main reasons for their business to grow huge and to obtain maximum profits. Therefore it has to offer quality and better services to stay in the market. The services are provided by them in two ways - standardized way and customized way. Standardized way includes the routine services provided like facilities (TV, Heater, AC) in rooms, room services, other things offered by a hotel. Customized services include all the innovative smart services (self – services) provided in this hotel. This kind of flexibility helps them to retain their customers and bring in new customers. Hence Ginger Hotels is consistent with the overall operating strategy Their Operations Strategy is consistent with their as seen from the services they provide. The operational elements that provide them the strategic dimension are: * Self Service Check-In * Smart Services (Get Set, Knick Knacks, Mart) * Give n’ Take Counter 3.Can you identify the strategic and operational benefits that Ginger hotels is likely to derive from the operations strategy and operation system design that it has......

Words: 403 - Pages: 2

Operational Definitions

...OPERATIONAL DEFINITIONS: Scientific Study: Name: Tutor: College: Course: Date: OPERATIONAL DEFINITIONS: 1. There is a phenomenon known as “spontaneous human combustion” in which most of the victim’s body, as well as the chair, in which the person was sitting, is found burned to ashes but the rest of the objects in the room are relatively unaffected. This phenomenon suggests that there is a new type of subatomic particle: a “pyroton” that interacts with cells and causes the victim to burst into flame. [Arnold, L. (1995). Ablaze! New York, NY: M. Evans.] “Spontaneous human combustion” has not been proven by scientists because little is known about the origin. The claim of “Spontaneous human combustion” is unsupportable because it does not offer any observable, hypothesis, verification or experimentation. The claim is similar to an individual claiming to fly. No one can believe until they see the person flying in the real sense. One of the major aspects that could have proved the theory is by doing it practically. If an individual is put on fire and the situation suits the theory “Spontaneous human combustion”, then it would be effective or supportive. Therefore, it would be tricky to demonstrate bearing in mind ethics and the fact that if it is “spontaneous”, then one cannot locate its occurrence (Arnold, 1995). 2. Many reported ghost sightings involve reenactments of battles, deaths, or murders.......

Words: 1023 - Pages: 5

Operational Budget

...Phase 4 DB HCM410-1303B-02 September 14, 2013 Operational Budget with addition of 4 new areas Introduction The Krona Community Hospital, established in 1977, is a 60-bed, acute care hospital located in Banconota County. They currently offer a full range of health care services and maintain a staff of almost 100 physicians and specialists, 400 employees, as well as numerous volunteers. They are currently fully accredited by The Joint Commission. A private, not-for profit health care chain called Nouveau Health has taken over the management of Krona Hospital. The new facility that has been proposed to the state officials for approval, will include 74 acute care beds, all of which will be private. It will also include four observation rooms, four surgical operating rooms, a 24-hour emergency center, a maternity department including one C-section room and an intensive care unit. It will also have extensive support services such as physical therapy and cardiac rehabilitation. In order for the new facility to be a success, we must prepare next year’s financial plan and operational budget. This can be accomplished through careful planning, forecasting, and finance management. First, we need to expand the budget and take into consideration any new services being offered. We have $3 million we can use for additional staff, maintenance and other services. Funding sources The primary source of funding is through government health insurance programs. Medicare......

Words: 1439 - Pages: 6

Operational Risk

...Operational Risk measurement This is defined as “the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This includes legal risk, but excludes strategic and reputation risk”.9 Such risks are likely to be significant in Islamic Banks due to specific contractual features and the general legal environment. Specific aspects that could raise operational risks in Islamic banks include the following: (1) The cancellation risks in non binding murabahah and istisnah[’a contracts. (2) Problems in internal control systems to detect and manage potential problems in operational processes and back office functions. (3) Technical risks of various sorts. (4) The potential difficulties in enforcing Islamic Finance contracts in a broader legal environment, (5) The risk of non-compliance with Shariah requirements that may impact on permissible income, (6) The need to maintain and manage commodity inventories often in illiquid markets, and (7) The potential costs and risks in monitoring equity type contracts and the associated Legal risks. In addition, increasing use structured finance transactions – specifically, Securitization of loans originated by banks to manage risks on the asset side – could47 Expose banks to additional legal risks. The three methods of measuring operational risks proposed in Basel II would need considerable adaptations in Islamic Banks owing to the...

Words: 1662 - Pages: 7

Kaiser Operational

...Kaiser Permanente Operational Strategy Mission Kaiser Permanente’s mission to provide care assistance to those in need. As a health maintenance organization, Kaiser Permanente provides preventive care such as prenatal care, immunizations, diagnostics, hospital medical and pharmacy services. Also, to take responsibility and provide exceptional training for their future health professionals for better clinical performance and treatment for the patients. The organization is to ensure fair and proper treatment towards their employees for a fun working environment in hospital and to provide medical services especially in a growing population in suburban communities, such as Tracy and Stockton in California. Operational Strategies Kaiser Permanente obliged health care services to patients and throughout the community especially those who are uninsured to lend help, to promise a low cost service that would pull in more patients, Kaiser Permanente should develop health missions to the specific areas with their trainee professionals. In able to be different from its competitors, Kaiser as a non-profit organization focuses in social benefits and is giving more attention in helping others other than providing the needs of their shareholders. To be on top of the others Kaiser has developed and introduced new financing methods to healthcare to support the needs for training and researches to provide better services for perspective and current patients. To put these in action,......

Words: 811 - Pages: 4

Operational Management

...Intercorparated (NUMMI) were critical of Japanese teamworking, describing it as part of an overall management package which they labelled ‘management by stress’. In their view, what appears to be participation is in fact a new form of exploitation. (Hill, S., 1991) In the event, while circles (TMC’s production system) promoted minor operational improvements, they did little to change human relations and company culture. Circles had elaborate and inflexible formal procedures which were time consuming and cumbersome. Even in Japan the approach of JIT is not without its critics. Kamata wrote an autobiography description of life as an employee at a Toyota plant called Japan in the Passing Lane. His account speaks of ‘the inhumanity and the unquestioning adherence’ of working under such a system (Slack, N. et al, 2001, pp. 489). 6. Despite these critics, the TMC’s operation strategy has become a world-wide phenomenon and there are reliable reports from the number of firms of considerable cost saving and efficiency gains (Bradley, K. & Hill, 1994). TMC uses the ‘bottom-up’ operations strategy, which is a process that emerges from day-to-day operational experience. Philosophers of this strategy continue to make the case that TMC’s production system is a method of best practice and can be successfully implemented in different industries in any country. They argue that the ability to deliver just-in-time not only saves working capital (through reducing inventory......

Words: 1635 - Pages: 7

Operational Approaches

...The response addresses the queries posted in 1725 words with references. //As per the directions, the section explains about the operational approaches that can be used for service and manufacturing organizations. It discusses the important operational approaches like Customer Relationship Management (CRM), Enterprise Service Management (ESM), Supply chain Management (SCM) and Decision Making Framework (DMF).\ To serve the different needs and expectation of various customers effectively, it is necessary to implement effective operational approaches, which enable the organization to meet the standards of particular industry. There are various operational approaches for a service and manufacturing organization, which are necessary for increasing the productivity and efficiency of the organization. I have chosen consumer relationship management as an operational approach for service organization and supply chain management for manufacturing organization. Operational Consumer relationship management: It is used to handle relationship with customers and assists the front office business processes such as marketing, sales and service. Each contact with the customer is added to the contact history of the customer, which can be used later by the employees to analyze information from the customer's database. This CRM practices the data of customer for a number of purposes such as to manage different campaigns, sales force automation and marketing automation. Enterprise......

Words: 1819 - Pages: 8

Operational Plan

...Manage Operational Plans | BSMMGT515A | TASK ONEDevelop an Operational PlanNKONDE SIMWANZA WAI00002EU | OFFICEMAX OfficeMax is one of the most leading retail shops in Australia. The company has a number of stores in around Australia that mainly specializes in selling office products. The products sold range from various departments but still cater for households and business of every size. We do provide customers with ways to shop in store where customers enjoy friendly expert advice and helpful services as well as online purchases through the company’s website. Figure 1.1 OfficeMax ORGANISATIONAL CHART Table 1.1: OfficeMax Consultation Strategy WHO TO CONSULT | REASON FOR CONSULTING(WHY) | WHAT TO CONSULT | METHORD OF CONSULTATION | Sales Manager | * Acts as the voice of the customer to the rest of the team /company | * Sales assessment * Market recognition to * identify new customers and prospects * Recruiting of new employees | * Meetings * Email conversations | Production Manager | * Give product demonstrations in Trade and analyzing investments in trade * Creates trends and puts value in them more than actual research. * A production manager assesses, oversees and selects projects under quality and specialization. | * Technological diversity * Product control method in order to improve how goods and services are being produced | * Group meetings * Focus groups | Marketing Manager | * Provides advice and......

Words: 6674 - Pages: 27

Operational Plan

...Operational Plan James Sweeney MGT 601 The Functions of Modern Management Professor Dr. Key Baron Smith July 13, 2015 For the purpose of this paper we are going to assume that the Strategic and Tactical Plans are aligned with the operational plan. The operational plan is then the implementation plan of the Strategic and Tactical plan that has been developed and approved by mid and upper management. The name of the company is Sweeney’s Medical Device Inc. and employees approximately 200 employees and has annual; sales of $90 million.. The company has one manufacturing facility that is located in the United States. The company produces and manufactures medical instruments that are affordable for the medical industry. The following is a brief review of the planning process, vision, mission statement and values of the company are as follows: For a brief review the operational plan can be defined as a plan prepared by a component of an organization that clearly defines actions it will take to support the strategic objectives and plans of upper management. However, to fully understand operational plans, we should first look at the overall planning process within a business. This diagram shows three levels of planning. Type of Plan | Created By | Scope | Includes | Level of Detail | Strategic plan | Top management | Entire organization | Mission of the company, future goals and ambitions | Very broad and general | Tactical plan | Mid-level management |......

Words: 6331 - Pages: 26

Operational Planning

...DIPMGTOP14 Operational Planning Assignment Part One Submitted By : Tim Avenell (00123920T) Submitted To : Vincent Le Submitted On : ??/03/2015 DIPMGTOP14 Operational Planning Submitted by Tim Avenel Dated: 21/03/2015 Table of Contents CONTENTS Task 1: Developing the plan ..................................................................................................................... 3 Executive Summary: ............................................................................................................................. 3 Chain of Approval ................................................................................................................................. 5 Stage 1. Presentation of report to line manager. ............................................................................. 5 Stage 2 Presentation by the Project Team to the Sustainability Committee ................................... 5 Stage 3: Presentation of the Report to the Executive Management Team ...................................... 5 Stage 4: Presentation of the Report to the Board of Directors ........................................................ 5 Project Initiatives ...................................................................................................................................... 7 Goal: .......................................................................................................................................................

Words: 5271 - Pages: 22

Operational Plan

...you must plan, monitor and review a case study relating to performance management of a team. Each team member will undertake a number of activities to manage the performance of one of the two employees. This will include management activities, such as developing work allocations, identifying KPIs, participating in several role-plays, undertaking performance reviews, and proposing a development plan for remedying poor performance by the Employee under your supervision. Finally, you will need to provide feedback to your assessment partner on performance during a role-play. Procedure 1. Review the Case Study – Housefriends Homewares (Appendix 1) or one supplied by your assessor 2. Complete the Operational Plan (Appendix 2). As the Store Manager you are to report your operational plan to head office to have the following completed by the extended trading deadline. 3. Read the profiles in this assessment. In pairs, adopt the role of Manager for that Employee (Marie or Tony). 4. Individually develop goals, KPIs and tasks for the Employee you have selected. Document these in the Employee’s Performance Management Plan (Appendix 3). 5. Prepare role-play notes to plan the topics you will discuss and outcomes you hope to achieve, these will assist you to keep the role-play meeting on track. Submit these with your documentation. 6. Conduct two one-on-one coaching role-plays (one with you as the Manager, one as your partner’s Employee). The Assessor will observe......

Words: 2804 - Pages: 12

Operational Targets

...Using the information in the case study and the appendix, evaluate how well you believe RyanAir has met its operational objectives (18 marks) Operations management are the specific focused targets of the operations management function. They will set long to medium term goals and use different strategies and tactics in order to achieve these targets. Ryanair's main underlying objective is low fares. They use this to stimulate demand from fare conscious leisure and business travelers. One way they met this objective is by selling seats on a one way basis, that reduces the need for minimum stay requirements and also they set fares on the basis of demand for particular flights. As a result, Ryanair have profited from an 8% rise in new customers and as a consequence their profit rises by 26% in 2011. This not only shows that Ryanair have been successful in meeting their operational objective but they have also met their corporate objective of profit maximization. On the contrary, Ryanair have struggled to meet some of their objectives due to a variety of external influences. They struggled to meet their objective when a combination of volcanic ash, snow closures and ATC strikes led to 14,000 flights being canceled, this resulted in extra maintenance and equipment costs of $29 million. The increase in costs is unlikely to help Ryanair pay for the steadily rising fuel costs, their fuel bill rose by 37% to $1.2 billion, this is partially due to fuel per barrel costs rising from......

Words: 649 - Pages: 3

Operational Risk

...The definition of operational risk by the Basel Committee on Banking Supervision is broad in conceptual terms, but also brief in its wording. If we accept that operational risk represents loss resulting from inadequate or failed internal processes, people and systems, or from external events, then to appreciate the amount of assumed exposure we must: • specify the people, processes and systems that are responsible for operational risk events; and • estimate the frequency and impact of these events as well as assign corresponding responsibilities. I fully agree with the principle advanced by The Geneva Association that everyone is accountable for operational risk. The challenge is to identify everyone’s accountability, bearing in mind that the operational risk definition includes people, processes, systems, and whole organizations. In the last analysis, companies are made up of people. Table 1 presents a list of what I believe to be the top dozen operational risks encountered in nearly every entity. The pattern shown in Figure 1 helps in appreciating that these operational risks can be grouped into three major categories: • the more classical, with legal risk being one of them; • the more modern, where the role of people is emphasized; • those which are technology- and systems-oriented. One more reference is needed to complete this introduction. The myriad of operational riskswhich formthe aforementioned 12 classes have neither the same frequency, nor the......

Words: 771 - Pages: 4

Operational Risk

...Operational Risk Key Term Operational Risk is the monetary risk that a corporation faces when people, processes, or system failures occur. The concept of operational risk is a constant in the workplace and has a major impact on decision making within the corporation. In my current workplace, we are considering a major change in workflow, and must measure the operational risk to the benefits of the proposed changes. Explanation of the Key Term Many factors must be considered when a change is proposed within an organization. Benefits and detriments must both be weighed in order to make the most informed decision; however, even after careful consideration, some decisions are poor. Operational risk must also include monetary damages that occur outside the realm of human decision-making, such as natural disasters or communication failures. Any action that causes a disruption to routine business operation is considered an operational risk. The more information used to calculate operational risk, the more complete and reliable picture is created for total risk evaluation (Mittnik, Paterlini, & Yener, 2014, p. 102). It is imperative to have accurate data to make quality decisions, and to create processes for predicted failures to minimize impact on the corporation. Major Article Summary Operational risk assessment should be a common, daily occurrence within an organization and should be implemented in every process in place. Corporations should implement an......

Words: 887 - Pages: 4

Operational Issues

...production, however this never took into account the tangible service aspects of goods and service supplied, and for that reason today it is now known as Operations. The importance of operational management within business should be an integral part of every task that is carried out, especially to ensure that the business achieves its primary goals on the most cost effective manner by minimising resources used, and maximise outputs achieved. The operations function is essentially the heartbeat of any organisation as it controls the process the produces the products that are the reason for the business. “A product is anything that can be offered to customers in order to satisfy their needs and expectations” (Slack, N., et.al, 1995, p156) Operations and process play a varied role depending on what service is being provided, for example with our back of house team, they have no direct customer contact, yet as their roles are essentially the back bone to the entire replenishment team, they need to be highly skilled, flexible, and consistent in order to keep the process running smoothly. In this assignment I will analyse the process, from the old replenishment team, to the change over to the new decanting process. What the various jobs involved within each of the operational processes are, and the operational bottlenecks that caused the process change. Finally I will cover off if there can be any further improvement to the decanting process, to further improve the cost impact......

Words: 2559 - Pages: 11