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Operational Management

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WHSmith Principles of Operation Management name, learner number, the unit number, and your Centre name. Executive summary The aim of the report is to explain briefly the role and the importance of operational management in the effective and efficient production of goods or services. It also illustrates the needs to produce n time, at a relevant cost, and with the right quality within the law. It explains the link between strategic planning and OM, and the three E’s (efficiency, effectiveness and economy) plan. Moreover, it evaluates the importance of the five performance objectives that underpin operations management Introduction Operation Management is a process of planning, controlling, leading and …show more content…

The difference between OM and strategic planning is the difference between how the organisation does with something and how actually it needs to be done. An operational management focuses on short-term task that needs to be done whereas the strategic plan focuses on long-term objectives and the general vision of the company. Explanation and implementation of the three E’s Implementing the 3E’s (efficiency, effectiveness and economy) model plays a very significant role in running a business. An understanding of the 3E’s idea can help managers to improve the performance of the business, and respond faster to future challenges. It is important for the business to focus not only on profitability, but also on long term strategies. In order to accomplish the balance of the 3E’s the organisation needs to meet all the criteria such as providing good quality at a relevant price, matching the product with customer’s preferences and expectations. The efficiency relates to the right use of resources to achieve company’s goals. It is based on the inputs required to produce the outputs. It is about the completion of the work, and also leads to maximization of the profit and shareholder’s value. The efficiency can be improved by consuming less resources but present the same amount of value, and also by reducing wasting recourses so that minimum input accomplish maximum output. WHSmith PLC is focusing on continuous improvements. Efficiency improvements

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