Operations Management Dissertation Sample

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Operation management can be defined as an area of management which is usually concerned with designing and controlling process of production and also in redesigning business operations in production of goods and services. This process is concerned with planning, organizing and supervising in context of production and manufacturing or provision of services (Griffin, 2013). The organization undertaken for this report is Global Leisure Furniture Company which is a leading and established supplier of chair components and leisure furniture to office and contract market. This present operations management dissertation report is based on understanding the nature and importance of operational management and also the link between operations management and strategic planning. This report also focuses on relevant technique to production of operational plan for organization.


1.1 Importance of operations management

An effective operation can give various types of advantages to Global leisure company. By being efficient and effective operation management can reduce the cost of products and service. This operation management further leads in increase in revenue through increase in customer satisfaction for providing quality of goods and services. It also provides basis for innovation by building a solid base for operation and knowledge (Benjaafar, Li and Daskin, 2013). Operation management can reduce amount of capital employed by being effective and innovative in use of resources which is necessary in producing goods and services. There are several reasons which makes operation management important. Encompasses. Global leisure company can lead to economic growth and development and also help employees to receive high wages in order to increase organization profit without causing inflation.

Furthermore, operational management is responsible for final product and service produced by the input. The final product which will be created will attract consumers and ensures that organization make profit. If customers demands are fulfilled than business will be able to began and increase its sales and also will be able to maximize their profits. Decision having major impact on both cost of producing products and also how well the product are produced and delivered which have a major impact on revenue (Brown, Bessant and Lamming, 2013). Global leisure company uses operation management to ensure efficiency and effectiveness in the organization. Organization must also ensure that they are working well within the time and able to produce best quality of goods. Producing on time gives Global leisure company several advantages. This will give them more opportunity to attract their target market and also will be able to identify their strength and weakness, they can further go ahead of competitors by making improvements where needed (Becker, Kugeler and Rosemann, 2013).

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1.2 Analyzing operation function

Operational function will bring together the raw material with production to make a perfect product which customer requires. This function helps Global leisure company to improve its processes and achieve cost savings. It is essential for Global leisure to have right people in place in order to achieve competent advantage over other rival firms. Organization aim is to develop high performance team who will work within a culture of continuous improvement. Employees in Global leisure have opportunity to contribute their ideas in order to achieve results.

Operational manager have to understand that what the overall objectives of the operations are. These objectives focus on major areas and are listed as quality, speed, dependability, flexibility and cost. Global leisure company have to purchase woods and fabrics of high quality for making attractive and delightful furniture (La Rosa and et.al., 2011). Hiring employees and train them to prepare attractive designs, shades, structure which attracts consumers to buy them. Location and layout of furniture factory plays a crucial role as global leisure company need to satisfy their employees demands too. Organization must be easy to reach with low convenience fare. Operational function is also vital as business are able to produce safely; to cost; to quality; on time within the law framed by government. Producing things on time give Global leisure company several advantage as this will give opportunity to organization to attract their target market and also they can easily identify their strength and weakness in order to gain competitive advantage (Ramezani, Bashiri and Tavakkoli-Moghaddam, 2013). Organization need to also ensure that they are able to save unnecessary and unexpected cost and also making use of their resources in production of final goods and services. This might further help organization to save their money and control their expenditure and make efficient and effective use of it.

1.3 Process model


Fig 1: Process Model

Global Leisure Company focusing on contributing their Capital, Material and Labor which will lead organization to transportation storage and inspection of all the raw materials. This process will further help the furniture company for providing facilitating goods to consumers. This will help mentioned company to increase more of the revenue and productivity.


2.1 Importance of 3 E's

Value for customers money is often treated as 3 E's as it includes Economy, Efficiency and Effectiveness. In today's competitive world, right balance of implementing 3 E's help organization to be more flexible and respond with faster pace in order to face current and future challenges and difficulties (Sapolsky, 2013). 3 E's are often consider as value for money and it bifurcates as:

Global leisure company following policy of value driven profit. It means that the organization is providing right product with right amount of quality and also the price of product matching with the market expectations (Grant, 2012). Economy for Global leisure company covers the financial side on which target is achieved and it is a fundamental way to balance the sue of resources to achieve right goals at reasonable price. Efficiency on the other hand for organization shows the right use of all the resources to accomplish goals and objectives. Efficiency in an organization can be measured by acknowledging process to complete a task and allocating right amount of resources. Furthermore, effectiveness of Global leisure company is maintained on basis of achievement of organizational goals. For this, directors and senior executives are in charge to meet such criteria.

2.2 Impact of Cost minimization and quality maximization

There consist a fair link between Cost minimization and quality maximization. At the beginning of earlier time period when Global leisure company was struggling, cost minimization had become important factor. As it was risky for business too but considering economy need top management of organization too a proactive judgment in order to cut down price of less demanding and oriented furniture (Gruman and Saks, 2011). This process helped Global leisure company to secure significant amount of money as sale of those furniture increased and simultaneously profit of organization too. Cost minimization aimed to achieve most effective way of delivering goods and service with required level of quality. Benefit of cost minimization in Global leisure company is that organization can save money but need to have lower unit costs and another benefit is to have higher profit margin, reinforced cash flow and high operating profits.

Moreover, Global leisure company concentrating on maximizing quality and improving standard of product in order to meet and consumers needs. By adopting best practices to maximize quality and effectiveness, following designed practice which ensures accuracy and quality of results. Maximizing quality and improving design of the product constantly can be time consuming and expensive task for Global leisure company (Zhu, 2014). This process head against cost minimization as it is difficult for organization to reduce cost but also maintain good and high quality of product.

2.3 Significance of Performance objectives

The process in which Global leisure company secures and utilizes its resources which determine extent to which organization can successfully pursue performance objectives. These 5 objectives adds value for customers and satisfy the necessary requirements of them (Kacar, Irdem, and Uzsoy, 2012). These objectives are Cost, Dependability, Flexibility, Quality and Speed.

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3.1 Linear Programming

Linear programming is an mathematical process that has been developed to assist top management in making decision and is considered as most widely tool for industrial engineering and management science. It is further considered as an process of taking various linear equations which relates to some situation and in order find its best value under given conditions. For manufacturing firms like Global leisure company it includes well defined objective function and variable should have constraint amount. Further there need to be a alternative course of action and the decision variable should be inter related and non negative (Chaabane, Ramudhin and Paquet, 2012). Linear programming is helpful for business, industries, distribution, marketing and economy. It helps Global leisure company in minimizing cost and maximizing profit as it plays an important role in management decision also. Managers in organization can easily calculate sale unit of furniture and prices which can lead to maximization profit or company.


Linear programming have a mathematical and graphical solution to a given problem. Mathematical solution is been done with the help of formulas whereas in graphical it is possible when there only two decision variables are involved and the problem can be plot on a graph in order to find execute reason of decision making (Kaplan and Atkinson, 2015).

3.2 Evaluating critical path analysis and network planning

Critical Path Analysis (CPA) is a technique for process planning which is followed in step by step way. It consist of series of activities which shows earliest completion of project and schedule network analysis technique which used to determine the schedule flexibility and critical path of project scheduled network diagram. CPA is widely sued as a project management tool which uses network analysis in order to help project managers to solve complex and time sensitive operations. This analysis is considered as longest course in a project schedule network diagram (Jiang and et.al., 2012). As stated above, as it is a longest path, it identify duration of project simultaneously with finish and start dates of the project. Some important points of CPA is:

Using this tool Global leisure company might ensure that production is completed as soon as possible and have used resources as efficiently as possible. It also depend upon information so used to compete the task (Van De Voorde,, Paauwe and Van Veldhoven, 2012). Moreover, CPA need effective planning so tasks in Global leisure company runs smoothly. After forming networks and making approximate and initial calculations, progress of particular task can be examined and also whole network updates as work progress ensures that project completions is not been delayed. Further advantage of this analysis is that it helps in recognizing base time duration to finish a task for an organization (Critical Path Analysis. 2015).

3.3 Need for operational planning and control.

This conclusion involve arrangement and control of labor or employees, capital input, material which helps Global leisure company to produce quality and quantity of production efficiently and effectively. Operational planning and control are genuinely based on predicting future demands for output of system. But unfortunately, even having best tuned operational system, demand of consumers cannot be met with existing system in a given time period because of new product developments, unpredicted market trends and competitors actions (Zareei and et.al., 2011). Planning and control is further concerned with managing current activities of the operation so as to satisfy consumers needs and demands. This technique is concerned with reconciliation between what operation resource can deliver and what consumer market requires. In Global leisure company, employees plays a crucial role as they provide direct service to their customers. Furniture which is so manufactured are puted in showroom. The staff so recruited by organization helps customers who come in and have a direct communication with them and ensures that there demands are satisfied (Beattie and Reader, 2013). Management team of Global leisure company ensures that they regularly receive feedback from their customers and any complaint regarding services sudden improvements have to be made.

Furthermore, long term planning involves factors such as fixed product and capacity planning. These long term decisions might affect Global leisure company in long run process. Product forecasting, scheduling operations and inventory management constitutes part of short and medium term planning. Operational manager Costorganists operation functions by assigning responsibilities and creating various structures (Turner, 2014). Control makes the adjustments which allow the operation to achieve the objectives that the plan has set, even when the assumptions on which the plan was based do not hold true.

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4.1 Designing of possible layout for producing furniture

It can be assessed that the business is required to develop possible design layouts in order to produce furniture products effectively. Moreover, it consists of varied layouts like process, product and hybrid layout. In product layout, organization comprises of varied work situations and manages it effectively in order to develop the product and manufacture it effectively. Further, hybrid layout is the mixture of both product and process layout. Thus, it can be assessed that for Global Leisure Company process layout is suitable that assists them to group all the similar activities together. Further, as a result of this it can be stated that it is crucial for cited firm to employee professionals and experts of varied fields or areas in the furniture manufacturing department so that difficult activities or operations can also be performed effectively (Peng and Lai, 2012). Further, process layout assists the organization that provides flexibility so that furniture products can be produced effectively and of high quality. Thus, business produces furniture products such as office furniture that assists them to manufacture the final products effective to attract customers. Moreover, mentioned company is focusing on five crucial factors like cost, quality, speed, flexibility and dependability. Cost will help mentioned organization to produce best of the products at an affordable price. Quality of products will play a crucial role in organization revenue growth and sales. Flexibility will help organization to give easy and safe delivery of products and services which will satisfy their needs in significant manner.

4.2 Network plan and critical path

The network plan that involves different activities and operations which start from market research and at the end provide the end or final products to the users or clients. Further, all these activities need to be planned effectively and in what time the activities will be completed. The Global Leisure Company is required to undertake a network plan and also decide critical path that involves the shortest time taken to complete or finish the project (Gruman and Saks, 2011). However, business plans network plan for packaging process. It is as follows-

Table 1: Network plan for packaging process for Furniture Supplier Company

S. No.


Activity Name


Preceding activities


Carrying out market research in order to assess the availability of varied types of packaging process





Investigating alternatives





Assessing choices





Choosing the suitable packaging process





Primary packaging





Secondary packaging





Checking the superiority of packaging





Market testing





Managing alteration










Total estimated time (in days)




The above drawn network plan assists in assessing the activities and operations which shows that the maximum time needed in order to finish the packaging process is 129 days.


Fig 2: Time Needed to Finish Pacakging Process


Fig 3: 10 Activities or Operations to Complete Packaging Process

Thus, the above drawn network diagram states that there are overall 10 activities or operations that assists in completing the packaging process effectively and efficiently. By carrying out all these activities it assists firm in effectively manufacturing the effective range of furniture products in order to attain customers and enhance the sales and profitability within business (Zareei and et.al., 2011).

4.3 Approaches can be used for project management and quality control

There are different approaches that can be adopted in order to manage and control the quality of business so that it assists in maintaining total quality management within firm. This method or approach helps in delivering best quality furniture products so that it attracts customers and fulfill their needs and expectations. Furthermore, quality assurance is firm helps in attaining right quality product to customers and achieves set goals (Chaabane, Ramudhin and Paquet, 2012). Thus, it is essential for Global Leisure Company to maintain its quality and superiority by producing effective goods and for that they need to deliver best training and development to individuals so that they can work effectively and efficiently. Also, it is essential for business to use proper quality control techniques in order to improve the production and attain desired targets. In order to conduct the quality control, company can take support from different tools like sig sigma from which overall issues of quality can be managed. Additionally, TQM (Total Quality Management) can be implemented in order to offer standard quality furniture products to its customers. Apart from it, statistical quality control can be done in which inspection and rating can be done for furniture. In this, product with below quality can be identified based on rating and same can be removed from the production. This will help in reducing the chances of offering below quality products to customers.

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It can be inferred from the above study that operations management can assists business to enhance their activities in order to gain results. Furthermore, it is crucial for firm to adopt 3 E's that assists organization in enhancing the productivity and profitability in order to attain results. Global leisure company is required to adopt total quality management method in order to enhance the performance of firm and deliver appropriate products to clients. Furthermore, it also involves a network plan for the packaging process that showcases the maximum and minimum time needed i.e. 129 days in order to finish the project. Moreover, business adopts process layout function that assists in accomplishing the activity and manufacture effectual office furniture and satisfy the needs of customers.


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