Contents Page
Strategic objectives of operations management
Operations management
British Airways and operations management
Appropriate systems of quality
Total Quality management
ISO 9000
Quality Culture
Organizational performance improvement program
Proposed changes
Program of work for Project
Time needed
Project control and validation
Project evaluation
Probable problems for the project
References
Strategic objectives of operations management
Operations management
Systems theory seeks to treat human organizations as systems of interrelated components, similar in many ways to more physical systems such as the solar system or the human body. The idea is to take a broad view of the system and its relationships with other systems in the environment. That is, a system is considered open when there are interactions between the system and its environment. A system is studied, then, by observing the flows into, out of, and within the system. The operations system can be seen as a system which converts inputs from outside the system, such as raw materials, money, people, and information, into outputs, such as goods and services (Summers 1998). The operations system, though, is but a subsystem of the overall organization, along with other subsystems such as marketing, finance, personnel, and accounting. The area of operations management is receiving more attention as a way to compete in the world arena, where recently such areas as marketing and finance were considered more important. Similarly, the types of managers who rise to the top positions of a company seem to run in cycles. When those managers from the ranks of marketing, for example, reach the top, they naturally give that area a greater weight in decision-making (Summers 1998).
The current trend is toward the awareness that operations management is increasingly where the action is. While only a few of the traditional strategic weapons mentioned above fell under the area of operations management, recent developments in the field have provided several more competitive options for a company in the general area of operations management. Some writers have called these strategies collectively the new operations management, or world-class manufacturing or service. In reality these strategic tools represent not revolutionary new ideas, but rather new emphases. Taken as a whole, they can radically change a company’s strategic approach (Lowson 2002). The strategic weapons of operations management represent natural evolutionary changes in the theory and practice of operations management. Taken together, though, they also represent a change in philosophy that is rather significant. Further, a combination of several of these tools can have a synergistic effect on a company’s operations. That is, they share several philosophical threads, such as doing things correctly and efficiently in the first place, goal-directedness, and unleashing human resources; thus, one of these strategic tools can build upon and support another for even greater benefit. The assurance of quality, while mainly the responsibility of operations management, transcends departmental boundaries in an organization. Especially in recent years, quality has come to be seen as a powerful marketing tool (Lowson 2002). Operations management focuses on making sure that a company produces the best kind of products and services in the most efficient and effective way. Operations management takes care of the company’s capital and material resources as well as its personnel resource. Operations management ensures that there would be a smooth change from the raw materials into finished products and services. To achieve the best performance in a competitive market, operations management is usually aligned with a market opportunity.
British Airways and operations management
In previous eras where commercial and technical efficiency was a function of engineering prowess and efficient operation of the latest generation of aircraft, British institutional patterns were arguably not particularly advantageous for competing in the airline industry. British Airways (BA) was far quicker than either Air France or Lufthansa in handing over control of the airline’s technical functions to managers with marketing expertise, although all three airlines were ultimately compelled by their competitive environment to do so (Hall & Soskice 2001). British Airways was able to build up a five- to ten-year lead over its rivals in adopting critical technological and organizational innovations. Unilateral CEO control was a major asset in allowing BA to decree orchestrated, synchronized changes across a number of departments in order to implement the network-based strategy rapidly. BA’s record on total factor productivity (TFP) shows particularly strong growth during the run-up to privatization and more especially after privatization and during the 90’s period of recession (Martin & Parker 1997). British Airways strategic objectives focused on engaging in mergers with other airlines, hiring and training a good crew and maintaining its financial and social status. The strategic objectives of British Airways are in line with the operations management system of the company. The operations objectives make sure that British Airways would continuously provide the best service to clients. The operations objectives make sure that the organizational objectives are met. The operations objectives guide the firm so that the organizational objectives will be met by British Airways.
Appropriate systems of quality
Total Quality management
TQM is a philosophy applied throughout the world in all kinds of organizations, for example, hotels, stores, car manufacturers and telecoms. Since the philosophy of TQM is so fundamental to business, it is applicable to all organizations. Every organization is a complex network of processes. A process is a combination of inputs and steps to follow to produce outputs. All processes contain inherent variability. One of the main ideas of Quality Management is to progressively reduce variation. In general, the quality culture that exists in an organization would have been built upon over the years that the organization has been in existence. The many failures and successes that the workforce had endured, the attitudes of the founder, and possible subsequent Managing Directors, all go together to produce a given culture (Antony & Preece 2002). For TQM, it is necessary to have a culture that is ready and open to change. Therefore, one of the prime aims of TQM is that the processes and products will be continually improved. Continuous improvement can also mean, especially at an early stage, a continuous change. Therefore, if employees are not open to change, then the chances for success with TQM become less and less (Antony & Preece 2002).
For many organizations, creating a quality culture strategy is a daunting task. It would seem at first glance that the larger company has the most difficult task to spread the quality culture throughout the organization. Nevertheless, some of the major companies have made that possible. The reason for this is that these companies may have practiced good quality principles for a number of years. Quality Management researchers have found that quality initiatives are generally too introspective and internally focused. TQM is viewed variously as a philosophy, which emphasizes that quality is the responsibility of everyone in an organization; as a process for managing change; as a strategy to improve organizational competitiveness and effectiveness; a value system that emphasizes striving for quality in product or services; and an approach to doing business that covers the whole organization. TQM is customer-driven and it is a strategy based on the desire to satisfy the customer’s expectation (Beckford, 2002). It is accepted that Deming has probably made the most substantial contribution to quality management. The concept of Total Quality Management (TQM) as the way of managing for the future does, on the other hand, have considerable value. If TQM is thought of as a way of managing rather than an added extra, then other management philosophies, methods and tools must be subsumed within it (Beckford 2002). Quality management and total quality management makes use of various strategies to achieve its purpose. TQM and QM use systems so that it can adapt to the changing need of businesses and industries. Such systems help TQM answer the needs of the environment. TQM makes use of systems to make sure that the best services can be given and the best products are made. Through a TQM system firms such as British Airways can observe their level of quality. Once the level of quality fails to meet the firms’ standard, the TQM system is used to improve the quality levels.
ISO 9000
An effective QMS is a vital part of any quality program; without it there is no basis for properly measuring and monitoring quality performance. It must not, though, be allowed to become an end in itself. The QMS will inform the organization how well or badly it is doing against the standards which it has set itself, nothing more. Unless action is continually taken to improve standards and performance, the measurement activity is sterile. Continued certification to the ISO 9001:2000 standard now requires that the organization demonstrate improvement over time (Stankard 2002). Excellent business performance accumulates from sustained, long term improvements. The kind of continual improvement capability needed to start toward high performance is actually a requirement of the current revision of the ISO9000 quality system standard. By embodying systematic and ongoing improvement in a worldwide management standard, the International Organization for Standardization (ISO) has opened the door for firms all over the world to begin their journeys to excellent performance. While the ISO9000 standard makes a start, it alone is insufficient to achieve durable competitive advantage and high performance; its scope is too narrow (Stankard 2002).
The current ISO standard does require firms to build a continuous improvement capability; however its improvement focus is narrowed to customer satisfaction and process performance without regard to overall competitive strategy and the need for profitability. This narrow scope of the ISO standard leads to the second requirement for excellence which is to balance improvements across four main areas that includes economic opportunity and wealth creation; strategies and motivation to realize the opportunities; capabilities to execute the strategies and use of information and analysis to balance risk of loss with financial return. The ISO 9000 series is well accepted as the standard for quality management systems around the globe. It is comprehensive and has enjoyed substantial development over many years. However, as has been recognized in the inception of the ISO 14000 series, the scope of ISO 9000 is restricted to quality standards which are essential but not sufficient for contemporary organizations (Benveniste, et al., 2000). The current revision of ISO9000 now requires that firms institute ongoing improvement of the quality management system and product and service delivery processes. However, any firm able to meet this narrow requirement for improvement need not stop with processes, customer satisfaction and management responsibility. It can use the high performance business model to guide improvement in planning, technology, workforce development, supply chain and any other area of the management system that bottlenecks growth in revenue and profits (Benveniste, et al., 2000). ISO 9000 helps a company monitor and map out all the processes in the company. It is a certification of how well the company is managed and how well the company performs. ISO 9000 sets a standard that tells if the firm’s quality of service and products is acceptable. ISO 9000 provides factors that monitor the quality of products or services. The factors of ISO 9000 serve as a guide for a firm to maintain a satisfactory level of quality.
Quality Culture
For many organizations, creating a quality culture strategy is a daunting task. It would seem at first glance that the larger company has the most difficult task to spread the quality culture throughout the organization. Nevertheless, some of the major companies have made that possible. The reason for this is that these companies may have practiced good quality principles for a number of years (Kanji 2002). Like countries, business organizations also have their own cultures. It is the totality of the norms, beliefs and values that control the behavior of individuals and groups within any given organization that can be described as organizational quality culture. However, many organizations are not even aware of their own culture or its distinct characteristics. A quality culture which is lively and progressive can be found to be constantly evolving and helping to change the business. A progressive quality culture within a business readily evaluates and responds to stimuli (Kanji 2002). A quality culture for a firm or a country means that every processes of the firm are based on the goal to make sure that the best products are sold and the best service is given. Quality is more important in the UK than in China. Both countries make sure that their services and products pass quality standards but the UK doesn’t only focus on quality standards. The UK makes use of various systems and technologies to check if their products or services have high standards of quality. China only makes the quality standards as its basis; it does not focus much on ensuring the quality of the products. As evidenced by some products from China that were recalled, the country wants to focus more on sales rather than maintaining quality.
Organizational performance improvement program
Proposed changes
The proposed change for British Airways is to introduce the use of environmentally friendly fuel to their aircrafts. This proposed change aims to make use of environment friendly fuels that would attract environment conscious clients. There are some clients who would prefer to ride airplanes that are using environment friendly fuels. Engaging in such change would help in increase clients and it would help the company recover from its status in the UK Airline industry. This proposed change would help in reducing pollution in the Air. This proposed change will lessen the pollution brought by the combination of private cars, public cars and aircrafts. It will lessen the degradation of the environment in the different countries they operate in. This change will give the company lesser expenses in purchasing fuels that costs much.
Program of work for Project
A. Initial stages of the project
- Find out the issues of the project
- Gather needed resources
B. Project implementation
- Research about how durable the project will be
- Know the boundaries of the project
- Research about other similar projects and its weakness.
C. Final stage of the project
- Determine whether the project is feasible or not
- Know the problems that might be encountered
Time needed
The first stage of the project will take around 1 to 2 weeks. The first stage focuses on the initiation on the project. This part focuses on the initial part of the project. The resources for this activity includes different notes and information that will provide the different changes that needs to be done with the planned use of environment friendly fuel. In this stage the project manager will gather the needed resources and will hire the personnel that will manage the use of environment friendly fuel. The second stage of the project includes the planning stage. The second stage of the project will take one week so that proper planning, testing and analysis of the new project can be made. In this stage the budget, human resource, and job responsibilities have been known. The human resource would be trained in their use of green fuels. In this stage the advantage and disadvantage of the use of green fuels would be known. The third stage of the project will take two to three months for proper adjustments. In this stage the project is on the full implementation stage wherein the goal is to slowly introduce environment friendly fuels to some of the aircrafts. This would involve conversion of some of the aircrafts to make it compatible to environment friendly fuels. The fourth stage of the project will involve the control, validation and evaluation of the project. The evaluation materials will be used to understand the changes the project has done to the company and what are the current problems of the initiated project. The fourth stage will check how the project succeeded in its goal and what could still be added to the project. The last stage of the project will take around one to two weeks.
Project control and validation
The project will be constantly monitored to check its effect on British Airways and the changes it has done on the company’s aircrafts. The initial problems on the project will be known and fixed to reduce the emergence of other problems. To control the project communication systems will be used between the members of British Airways and the members of the project team. The communication systems such as email and letters will assist in monitoring the project. The project will be validated via its effect on the company British Airways and the airline industry of UK.
Project evaluation
Projects are not perfect it will contain certain flaws. If these flaws merge with forces within the environment the result would be the failure of the project. Project failure can be due to the lack of preparation or planning wherein the manager became too concentrated on the end result rather than the specifics of the project. Project failure can also be due to lack of cooperation between the manager and his subordinates. When there is no teamwork between the manager and the subordinates’ aspects of the project will not be completed. Another cause of project failure is when the manager does not take risks. The risk may have given the project a better chance for success. Moreover a cause of project failure is the lack of alternative strategies that should be used whenever there are small problems or irregularities seen when the project is being undertaken. Lastly a cause of project failure is the inability to use the approved strategies. There are certain times that project managers fail to make use of strategies set by the organization, this results to an altered direction for the project and in the end failure of the project. To avoid project failure, the project should be constantly checked and evaluated to see if it still performs according to standards. Evaluation will focus on checking how British Airways and its aircrafts has adjusted to the use of Environment friendly fuels and what changes have happened to the industry after the use of green fuels. Evaluation will be used to determine the things or issues that should be changed within the project and determine the next options that should be taken.
Probable problems for the project
One constraint for the project is the barriers to the scope or reach of the project. The scope determines the boundaries of the project. Once the barriers prevent the company from reaching the scope the project would be a total waste. The barriers would be the cost for the conversion of some of the aircraft and the time that will be used in converting some of the aircraft for it to accept environmental friendly fuels. Another constraint for the project is the lack of time that will be used to finish the project. Time is important because it will determine which aspect of the project needs more focus. This constraint needs to be balanced thoroughly so that the project can achieve all of its purpose. Lastly a constraint for the project is the lack of budget. The budget is the one used to finance all that will be needed to finish the project. The budget is important because without it the project cannot move on to its other aspects.
References
Antony, J & Preece, D (eds.) 2002, Understanding, managing
and implementing quality: Frameworks, techniques and cases.
Routledge, London.
Beckford, J 2002, Quality, Routledge, London.
Benveniste, J, Dunphy, D, Griffiths, A & Sutton, P (eds.)
2000, The corporate challenge of the 21st century, Allen &
Unwin, Crows Nest, N.S.W.
Hall, PA & Soskice, D (eds.) 2001, Varieties of capitalism:
The institutional foundations of comparative advantage,
Oxford University Press, England.
Kanji, GK 2002, Measuring business excellence, Routledge,
London.
Lowson, RH 2002, Strategic operations management: The new
competitive advantage, Routledge, New York.
Martin, S & Parker, D 1997, The Impact of privatization:
Ownership and corporate performance in the UK, Routledge,
London.
Stankard, MF 2002, Management systems and organizational
performance: The quest for excellence beyond ISO9000,
Quorum Books, Westport, CT.
Summers, MR 1998, Analyzing operations in business: Issues,
tools, and techniques, Quorum Books, Westport, CT.
Credit:ivythesis.typepad.com
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