Assignment Cover Sheet

Qualification Module Number and Title

HND in Business Management BHND5202: Operations Management

Student Name & No. Assessor

Mr. Janaka Upendra

Hand out date Submission Date

31st March 2017

Assessment type Duration/Length Weighting of Assessment

of
Coursework
Assessment Type 50%
Individual
3000 words

Learner declaration

I, ………………………………………….certify that the work submitted for this assignment

is my own and research sources are fully acknowledged.

Marks Awarded
First assessor

IV marks

Agreed grade

Signature of the assessor Date

 FEEDBACK FORM
INTERNATIONAL COLLEGE OF BUSINESS & TECHNOLOGY
Module : BHND5202: Operations Management
Student :
Assessor : Mr. Janaka Upendra
Assignment : Coursework - Individual Report

Strong features of your work:

Areas for improvement:

Marks Awarded:

ACKNOWLEDGEMENT
I would like to thank to Mr. Janka Upendra. To his vast energy that he put into motivating and
helping me. I would like to thank my family, friends and everyone who helped with the
completion of this report.

EXECTUTIVE SUMMARY
The particular aim of this module to provide the learners with an understanding of the role and
importance of operations management in the efficient and effective production of goods and
services. The entire report is based on operations and how they contribute to the overall success
of an organization. For any ask to be completed successfully. This report starts off with the
introduction of the company and then it explains what operation management is and then it
explains what the importance for the company is of using operation management then I have
explained about the operational strategies that Toyota uses and the performance objectives which
they have prioritized out of cost; dependability; flexibility; quality and speed. Then the link
between operational management and strategic planning. After that I have discussed about the
five functions that involve in operation management.

Table of Contents
ACKNOWLEDGEMENT...............................................................................................................3
EXECTUTIVE SUMMARY...........................................................................................................4
INTRODUCTION...........................................................................................................................6
QUESTION 1..................................................................................................................................7
Operation Management...............................................................................................................7
Importance of Operation Management........................................................................................7
QUESTION 2..................................................................................................................................8
Operation Strategy.......................................................................................................................8
Operation Management and Strategic Planning..........................................................................8
Performance Objective................................................................................................................9
QUESTION 3................................................................................................................................11
Operation Function....................................................................................................................11
Facility Layout.......................................................................................................................11
Process Selection...................................................................................................................12
Process flow charts................................................................................................................13
Project Management..............................................................................................................14
Quality Assurance..................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Toyota Motor is a Japanese automotive manufacturer headquartered in Toyota, Aichi, Japan. In
March 2014, the multinational corporation consisted of 338,875 employees worldwide and, as of
February 2016, was the 13th-largest company in the world by revenue. Toyota is as of 2016 the
second largest automotive manufacturer behind German Volkswagen Group. Toyota was the
world's first automobile manufacturer to produce more than 10 million vehicles per year which it
has done since 2012, when it also reported the production of its 200-millionth vehicle. As of July
2014, Toyota was the largest listed company in Japan by market capitalization (worth more than
twice as much as #2-ranked Softbank) and by revenue.
Toyota is the world's market leader in sales of hybrid electric vehicles, and one of the largest
companies to encourage the mass-market adoption of hybrid vehicles across the globe.
Cumulative global sales of Toyota and Lexus hybrid passenger car models achieved the
10 million milestones in January 2017. Its Prius family is the world's top selling hybrid
nameplate with over 6 million units sold worldwide as of January 2017, (Wikipedia, 2017)

QUESTION 1
Operation Management
The design, execution, and control of operations that convert resources into desired goods and
services, and implement a company's business strategy. (businessdictionary, 2017) Operations
management involves utilizing resources from staff, materials, equipment and technology.
Operations managers acquire, develop and deliver goods to clients based on client wants and the
abilities of the company. Operations management handles various strategic issues including
determining the size of manufacturing plants and project management methods, and
implementing the structure of information technology networks. Other operational issues include
the management of inventory levels, including work-in-process levels and raw materials
acquisition; quality control; materials handling; and maintenance policies. Operations
management entails studying the use of raw materials and ensuring minimal waste occurs.
Managers utilize numerous formulas such as the economic order quantity formula to determine
when and how large of an inventory order to process and how much inventory to hold on hand.
(investopedia, 2017)

Importance of Operation Management

Operation management is very important to a large-scale manufacturer as Toyota because using
operations management covers the 10 things for effective and efficient operations. Toyota has a
worldwide scale of its vehicle business and facilities around the world, Toyota uses a wide set of
strategies for the 10 decisions of operations management, integrating local and regional
automotive market conditions. Toyota is an example of successful operations management at a
global scale. These below mentioned decisions can only be achieved by using operation
management. (Lombardo, 2017)
 Design of Goods and Services
 Quality Management
 Process and Capacity Design
 Location Strategy
 Layout Design and Strategy
 Job Design and Human Resources
 Supply Chain Management
 Inventory Management
 Scheduling
  Maintenance
Basically, operation management is used in any company to achieve better performance, low
cost and fair quality that any consumer requires for the price they pay Toyota.

QUESTION 2
Operation Strategy

A plan specifying how an organization will allocate resources in order to support infrastructure
and production. An operations strategy is typically driven by the overall business strategy of the
organization, and is designed to maximize the effectiveness of production and support elements
while minimizing costs. (businessdictionary, 2017)

Operation Management and Strategic Planning

Operation management is the design, execution, and control of operations that convert resources
into desired goods and services, and implement a company's business strategy
(businessdictionary, 2017) whereas, Strategic planning strategic planning is a systematic process
of envisioning a desired future, and translating this vision into broadly clear goals or objectives
and a sequence of steps to achieve them. (businessdictionary, 2017) Strategic planning is a step
in a business that can’t be achieved without operation management. For example, a goal can be
turned into a mission that will include Operation Management and strategic planning working
together but they’re both inter depended.

Performance Objective
Toyota uses Performance Objectives to form the backdrop for strategic operations but the day to
day operations needs extra full defined objectives. There are five performance objectives:

1. Quality – Toyota do the right thing and satisfy customers. Quality is a major factor in
customer satisfaction. Quality means consistency in producing the product or service.
Quality decreases costs, surge dependability.
2. Speed - Toyota increases the value to the customer. Speed is also important internally
because it reduces inventory, reduces risks. Speed is especially important when life and
death is the issue.
3. Dependability - Toyota established dependability over time and in the end it overrides
all other factors. It does not matter how cheap, fast, innovative a product/service is, if the
customer cannot depend that it will be delivered in time, at the right quality, the customer
will be lost. Dependability inside Toyota is also very important as if saves time and
money as it reduces ineffective use of time and resources. Dependability also gives
stability within the Toyota, as disruption effects quality of operations time which goes
beyond time and costs.
4. Flexibility – Toyota has the ability to being able to change in either, what, how and when
so that the company is enabled to provide four types of requirements:
 Product/service flexibility – ability of operations to introduce new or modified
products/services
 Mix flexibility – ability to produce a wide or mix variety of products/services
 Volume flexibility – able to change level of output
 Delivery flexibility – ability to change time of delivery

Flexibility inside the organization is also important as it speeds up responses to change, saves
time and maintains dependability. Mass customization: Toyota give each customer a customized
product/service but being able to produce at high volumes to keep costs down. For example:
Toyota – flexibility of design which gives the customer, within limits, the ability to design their
own product.
5. Costs - Toyota wants to keep costs low like every other organization. Costs can be
measured by productivity, there are a few formulae to calculate productivity.
 QUESTION 3
Operation Function
Facility Layout
After selecting the facility's site, the next phase in operations planning is to design the physical
design for the facility. The available space needs to be assessed with workstations, equipment,
storage, and other amenities need to be arranged. The aim is to allow for the most efficient
workflow without disruption. A workplace that has carefully arranged its layout will allow for a
more effective and efficient workflow and produce its good or services to a high standard.
(Boundless, 2017)
There are three types of facility layouts that can be chosen:
 Process layout: arranged in departments (for example hospitals).
 Product layout: production line (for example a car assembly plant).
 Fixed-position layout: building a large item (for example jumbo jet).

When it comes to Toyota, the production plants use a Product or Process layout. This means that
the order of everyday jobs is ordered in relation to what needs to be done. Firstly, the metal is
stamped, secondly the metal is treated, then waterproofed etc. For Example, Toyota used a
Functional Layout, the process might be that all the painting is done in one area, instead of when
it needs to be done. (Before all the parts are attached, after the car has been assembled and when
it is given the final color). (Prezi, 2017)
Process Selection

Process Selection is basically the way goods or services are made or delivered, which influences
numerous aspects of an organization, including capacity planning, layout of facilities, equipment
and design of work systems. Process selection is primarily used during the planning of new
products or services that is subject to technological advances and competition. Process selection
is dependent on the company's process strategy, which has two main components: capital
intensity and process flexibility. (Wikispaces, 2017)
The types of process are described below:
1. Intermittent operations - processes used to produce a variety of products with different
processing requirements in lower volumes
a. Batch process – same design but a moderate amount of quantity.
b. Job shop – small scale production such as customized cars.
2. Repetitive operation - processes used to produce one or a few standardized products in
high volume
a. Continuous process - very high volumes of non-discrete goods.
b. Line process- an arrangement of machines, tools, and workers in which product is
assembled by having each perform a specific, successive operation on an
incomplete unit as it passes by in a series of stages organized in a direct line.
Process flow charts

Start

Car Internal Assembly

Car External Assembly

Car Painting

Not Passed Inspection

Passed

END
Project Management
Project management is the discipline of initiating, planning, executing, controlling, and closing
the work of a team to achieve specific goals and meet specific success criteria. A project is a
temporary endeavor designed to produce a unique product, service or result with a defined
beginning and end (usually time-constrained, and often constrained by funding or deliverables)
undertaken to meet unique goals and objectives, typically to bring about beneficial change or
added value. The temporary nature of projects stands in contrast with business as usual (or
operations), which are repetitive, permanent, or semi-permanent functional activities to produce
products or services. In practice, the management of these two systems is often quite different,
and as such requires the development of distinct technical skills and management strategies.
(wikipedia, 2017)

Quality Assurance

In developing products and services, quality assurance is any systematic process of checking to
see whether a product or service being developed is meeting specified requirements. Many
companies have a separate department devoted to quality assurance. A quality assurance system
is said to increase customer confidence and a company's credibility, to improve work processes
and efficiency, and to enable a company to better compete with others. Toyota in few hours
transform a sheet of bare metal to a high-quality car worthy of a five-year warranty. But there is
still plenty of work to be done. Toyota’s completed car now faces its sternest test as it heads
through the Quality Assurance department, where a team of skilled workers will put the car
under the microscope one final time.

CONCLUSION
In concluding this report it can be said that the use of operations management for organization is
partial because for manufacturing firms a proper operations management is a must to succeed in
the long run. And also the key elements of operations management should be there in every
company in order to succeed. There are so many factors in operations management that should
be considered according to this particular report. Overall, operations management is very much
important for any business since it has much positive impacts and brings in high profits to the
business.

REFERENCES
Boundless, 2017. facilities-layout. [Online]
Available at: https://www.boundless.com/business/textbooks/boundless-business-textbook/
operations-management-10/planning-for-operations-73/facilities-layout-348-6985/
businessdictionary, 2017. operations-management. [Online]
Available at: http://www.businessdictionary.com/definition/operations-management.html
businessdictionary, 2017. operations-strategy. [Online]
Available at: http://www.businessdictionary.com/definition/operations-strategy.html
businessdictionary, 2017. strategic-planning. [Online]
Available at: http://www.businessdictionary.com/definition/strategic-planning.html
investopedia, 2017. operations-management. [Online]
Available at: http://www.investopedia.com/terms/o/operations-management.asp
Lombardo, J., 2017. toyota-operations-management-10-decisions-areas-productivity. [Online]
Available at: http://panmore.com/toyota-operations-management-10-decisions-areas-productivity
Prezi, 2017. toyota-and-operations-management. [Online]
Available at: https://prezi.com/ztcezyvdqqo5/toyota-and-operations-management/
wikipedia, 2017. Project_management. [Online]
Available at: en.wikipedia.org/wiki/Project_management
Wikipedia, 2017. Toyota. [Online]
Available at: https://en.wikipedia.org/wiki/Toyota
Wikispaces, 2017. Process+Selection. [Online]
Available at: https://ids355.wikispaces.com/Ch.+6+Process+Selection+and+Facility+Layout