Question:

You need to choose one global operations management case for your individual report from companies such as Apple, Oman Air, Samsung, Google or any company of your choice. You will discuss this further with your tutor before finalising the topic. Critical analysis of the case will help you to answer the following operations management questions:

Q1) Critically examine three relevant Operation Management (OM) decision areas (e.g. quality, inventory management, layout or process design etc.) in your chosen company (or workplace, as long as evidences can be validated with credible resources within your workplace) (750 words)

Q2) Compare and contrast your chosen organisation with another contemporary one using the 4 Vs (Volume, Variety, Variation and Visibility) (500 words)

Q3) Examine the ways to improve operational performance within your chosen company (500 words).

Solution

Executive Summary The current report has focused on evaluating different operation management concepts in the context of the Toyota Company Oman (Saud Bahwan Group). The operation management of the company has been evaluated through a reference on class materials and a theoretical research from available literature for the purpose of successful appraisal. In particular, the areas of focus have been the operation management decision areas, comparison of the company with a different company and the best practice in improving the operational performance of Toyota company in Oman. Through a focus on the Toyota Company Oman (Saud Bahwan Group), the study successfully demonstrated the extent in which the company implements its operation management concepts particularly in the supply-chain management, quality management and the inventory management. Additionally, through the use of 4Vs model, it was possible to identify the company positioning in their competitive environment in leveraging from a competitive advantage in their operational objectives. This has been carried out in context of their operational strategy and its set objectives.  The sourced report in the current study were significant in assessing the identified study aims with the support of available knowledge and appreciation of the researcher with an aim of demonstrating their capacity of adopting distinct operation concepts. Areas for improvement have equally been integrated for operations improvement to mitigate existing gaps in performance and most instrumental strategy to attain set organizational objectives.       Table of Contents 1.0 Introduction. 3 2.0 Operation Management Decision Areas. 3 2.1 Supply-chain Management 4 2.2 Quality Management 4 2.3 Inventory Management 4 3.0 Comparison of Toyota and General Motors Company Using 4Vs. 5 3.1 Volume of Processes. 6 3.2 Variety of Processes. 6 3.3 Variation of Processes. 6 3.4 Visibility of Processes. 7 4.0 Improving Operational Performance in Toyota Company. 7 5.0 Conclusion. 8 References. 9        

1.0 Introduction

In order to excel and survive in the highly competitive business environment, operations management strategy is essential. According to Slack et al. (2010), operations management focuses on overseeing an active design or re-designing of business. The most common factors include production, material management, quality, technology, and facility design (Tan et al., 2010). In this regard, using the Toyota company Oman (SAUD BAHWAN GROUP) as a case study, this report evaluates its operation management strategy.  This is since the company operations management employs the use of productivity or an industry-centric approach based on their market target (Iyer et al., 2009). Also, comparison and contrasting the company with competitors and suggesting a strategy of operational performance improvement has been provided.

2.0 Operation Management Decision Areas

Toyota Company Oman as a subsidiary of Toyota Company Japan has been selected for this study. In Oman, Toyota company has more than 100 employees and selling models such as cars, SUVs and motor transport annually (Britannica, 2017). The company operations management is informed by its primary objective which is making the vehicles ordered by clients most quickly and effectively for the sake of delivering the vehicles as promptly as possible. Operations management are founded on Toyota Production System (TPS) where Just in Time (JIT), lean manufacturing techniques (Kaizen) and Jidoka manufacturing techniques as shown in figure 1 below (Anvari et al., 2011); Figure 1: Toyota Oman Operations Management To demonstrate the relevance of different decision areas on operation management, the Input-transformation-output (ITO) model can be used (Mingers et al., 2009). Modern organisations use input resources in producing outputs for customers. This includes factors such as Raw Materials and Components, Time, Money, Skills and knowledge and Employees. Another element is transformation where raw materials and components creating finished products Outputs and later selling (Anvari et al., 2011).

2.1 Supply-chain Management

As a critical factor of operation management, supply chain management include all activities involving the suppliers, logistics, and customers in their location (Stock & Boyer, 2009). The process involves making critical decisions on the suppliers, coordinating purchasing process, warehousing and forecasting. In Toyota Oman, the decisions on supply-chain management are made through the use of Toyota Production System (TPS) as shown in figure 2 below (Ng et al., 2010); Figure 2: Toyota Company Supply chain Source: (Ng et al., 2010) As shown in figure 2 above, Toyota company is comprised of set of philosophies to organize manufacturing and logistics and interaction with their suppliers and customers. The lead-time and cost are reduced while successfully improving overall quality (Jayaram et al., 2010). TPS enhances a successful value definition, flow creation, and waste elimination in distinct aspects including client relations, product design, supplier networks and factory management. Hence coordinating production, suppliers and clients for products delivery with optimum efficiency.

2.2 Quality Management

The relevance of quality management in operation management in an organisation is based on its influence on competitiveness (Kwon et al., 2014). In context of SAUD BAHWAN GROUP, the Toyota Production System (TPS) is used to guide their quality management as shown in figure 3 below;   Figure 3: TPM and Quality Management Through a Kaizen culture, the company improves their systems and process in Total Quality Management (TQM) implementation hence improving the system and processes quality. According to Agus (2011), the relevance of the system is ensuring all employees active involvement in TQM improvement. As part of the decision, SAUD BAHWAN GROUP would establish a new culture strategy, monitoring customer complaints, results of audits and nonconforming, data analysis, records of the quality management system and product management.

 2.3 Inventory Management

In operations management, the inventory management harness desired level of customer service, allowing cost-efficient operations and maximizing inventory investment. As noted by Liker and Hoseus (2009), Inventory Management (IM) includes client satisfaction capacity, cost-efficient operations, strategic decisions and cost-minimization. In SAUD BAHWAN GROUP, they leverage from IM through the use of Just-in-time approach (Monden, 2011). This is aimed at ensuring their inventory size is minimized and their corresponding cost as shown in figure 4 below; Figure 4: Toyota Company Inventory Management Source: Arabani et al. (2010) This is also part of the company production system (TPS). In a general perspective, Arabani et al. (2010) observed that the JIT program ensures a holistic improvement of a company return on investment through a successful reduction of all the non-essential costs. They always maintain a steady production rate, high-quality workmanship and ensuring zero machine breakdowns at their operating production plant. This is on top of having reliable suppliers delivering their supplies promptly and maintaining an efficient assembly of the vehicles machinery.

3.0 Comparison of SAUD BAHWAN GROUP and General Motors Company Using 4Vs

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