Operation Management Assignment help on : Rotary Engineering Ltd: Operation Management
Introduction
Operation management is one of the most crucial aspects of managerial strategy of a business organization. The term ‘operation management’ refers to the aspect of the business operations, which is directly related with the management of different strategic or non-strategic business operations of business organization. In a business organization, there are a number of different business functions or operations are taken into account for the purpose of accomplishing some crucial strategic objectives of the organization. For the purpose of accomplishing such objectives in the most effective manner, it is quite essential for the management to have an effective and efficient operational framework, which requires some efficient operational management capabilities (Shim and Siegel 1999).
In direction to this, there are a number of different theories and concepts which can be applied and considered by the management of a business organization for the purpose of enhancing overall operational efficiency. However the application of such different theories related with operational quality management within the context of the operational framework of a business organization is not an easy task. It is due to the reason that there is a significant difference between theory and practical settings (Lewis and Slack 2003).
In this direction for the purpose of presenting the real life implications of different quality management theories and operational management, the paper reflects operation management related framework and its recommended structure of a real life organization. For this purpose, ‘Rotary Engineering Ltd’ has been taken into account as a reference business organization. The organization is a small and medium scale business organization operation within Asia Pacific region. The company is also listed at Singapore Stock Exchange. The prime objective of the paper is to reveal the existing operational strategy and operational framework considered by the business organization for the purpose of undertaking its business operations. Along with this, the paper also demonstrates the company’s Service delivery system and existing operation management system so that a competent evaluation of strengths and weaknesses of the existing operational management system. On the basis of such evaluation, some crucial and effective changes in the existing operational framework are also presented which can be proved quite handy for the business organization in order to maintain sustainability in existing business environment.
Critical review of company’s operation strategy
Operational strategy of a business organization is an important aspect of the strategic orientation of a business organization, which leads the firm towards some significant amount of success. Operational strategy of the company shows the way through which, the organization accomplishes its all the business objectives. In this concern, for a business organization an effective and efficient alignment between operational strategy of the organization and its corporate objectives is quite essential. All the operational functions, activities, strategies and policies of a business organization must be aligned with its long term and strategic level goals and objectives quite effectively so that effective accomplishment of such crucial organizational objectives can be possible (Lewis and Slack 2003).
In context to this discussion, the corporate objectives of Rotary Engineering Ltd can be matched with its existing operational policy. For this purpose, the mission statement of the company states that:
“Our mission is to provide quality services that consistently meet our clients’ needs and expectations through excellence in our operations (Vision, Mission & Values 2006)”.
The mission statements of the organization depicts that prime focus of the organization is to have a excellent level of services and product offerings for its customer bases which can be proved quite helpful for the organization to be the most successful players in the industry at global level. The corporate objective of the organization drives it to be an excellent global engineering, construction and procurement company, which conceives world’s one of the most efficient and effective service delivery and operational systems (Rotary Engineering Limited – Investor Relation 2012).
For the purpose of fulfilling this long term and strategic objective, there is a need of some continuous and effective quality improvement systems for its existing operational systems. In direction to this, the organization is progressing on the path of a sustainable improvement in existing policies and operational strategies so that construction of an efficient and high quality operational framework for accelerating the growth of the organization can be supported. The operational policies of the organization have also been designed in the way that it can be accomplished in the most effective manner. As per the operational strategy of the organization innovation and quality are two prime aspects for the long term as well as short term strategic changes within existing organizational structural. The operational policy of the organization drives it to adopt technological changes in the most effective manner. In line to this strategy the recently the company has adopted highly innovative automation of its different operational framework. Openness towards accepting different changes in technical environment can be seen in the adoption of different newly technologies such as integrated procurement system, SmartPlant Materials, Barcode system, SAP solutions and display of the product or site with the help of 3D drawing board (Rotary Engineering Ltd: About Us 2012).
In relation to this, the quality, safety and timely delivery of services are also included as a core aspect of operational policies of the organization. All the operational activities of the organization are quite focused upon delivery of the most desirable and timely services to the client at any cost so that a positive image of the organization among customers can be delivered.
On the basis of this discussion it can be considered that the operational strategy of the organization is quite aligned with its long term and strategic objectives.
Evaluation of company’s Service delivery system
Service delivery system is the procedure adopted by a business organization for the purpose of ensuring an effective and comprehensive delivery of service and products to the client. For a company it is quite essential to have an effective and efficient service delivery system as it directly relates with the perception of the customers about the company and builds its image. An efficient service delivery system ensures an adequate and timely delivery of services or products to the customers which leads to build a positive image in the eyes of its customers. It drives the organization to develop a competitive advantage within the market place. Owing to this reason, business organizations are needed to pay some significant attention over its service delivery system (Vision, Mission & Values 2006).
In the context of the discussion made above, the service delivery system of Rotary Engineering Ltd. is quite effective and innovative. The management of the company strives to add value to the purchasing of its customers through its highly innovative service delivery system. As the management philosophy of the organization drives the company to act smartly, the company employs a number of different innovative technologies and procedures, such as EDMS, 3D modeling and other design works, for the purpose of ensuring high quality and timely service delivery to the customers (Rotary at A Glance 2012).
Rotary Engineering Ltd. is regarded as one of the leading oil and gas infrastructure services companies within Asia pacific region. The company offers fully integrated engineering design, procurement, and construction (EPC) related products and services to its corporate clients. Along with this, for oil and gas, petroleum and petrochemical industries also, the company provides some on shore and off shore maintenance services at international level. Through its excellent and timely delivery of services and high quality product offerings, the company has established itself quite prominently within Asia pacific region and now it is progressing for registering its significance presence within international market (Rotary at A Glance 2012).
Increasing global footprints of the organization have enhanced the span and scope of its operations, and product and services delivered to the customers. In order to ensure the delivery of high quality and intensive services to customer, the company has linked its service delivery system with its Global Work Force (GWF) scheme. As per this scheme, the company is undertaking different programs and workshops for the purpose of developing highly skilled and efficient teams of engineers and craftsmen that are capable to deliver the value to the customers any where across the world. For ensuring the effective service delivery across different geographical areas of the operations, the company has employed various overseas Training and development centers in China, India and Saudi Arabia. The development of a global work force team is also a part of service delivery system of the organization as it allows the organization not only to understand differentiated needs and requirements of different markets but also fulfill them timely and in the most effective manner (Annual report: Powering growth champion of strategies toasting – NextVIEW 2012).
In addition to this, the service delivery system of the organization can be characterized as highly interactive and responsive system due to installation of various innovative and effective tools and techniques, such as SmartPlant suite and 3D modeling. 3D modeling provides facility to the customers to visualize the finished site in the 3D format before its completion. This technique also helps the customer to make a worthy decision regarding making investment in the ongoing project. Along with this, there are some other crucial features of the service delivery system of the organization, which makes it quite exclusive and effective. These features are construction work instruction (CWI), tank configuration and layout optimization, customized construction techniques, usage of different new software such as SAP, and barcode for effective tracking of the raw material supplied at the site (Rotary Engineering Ltd: Our business 2012).
On the basis of the presented discussion it can be considered that there are a number of different effective and efficient features of the service delivery system of the organization. However, there are some points on which the company can work on. For instance, there is a lack of any practical standard for measuring the quality of the products and services to the customers. Along with there is no any strong and systematic procedure adopted by the organization for the purpose of effective disposal of industrial wastages. Apart from such issues, over service delivery system of the organization is quite effective and exclusive.
Analysis of operation management system
The operation management is one of the most crucial and essential aspects of the planning function of the management. Operational planning consists of various dimensions of the operation management. Different aspects of operations such as maintenance system, Quality assurance, supply chain management, capacity management and technology can be taken into account while judging the operation management system of a business organization. In the context of Rotary Engineering Ltd, these aspects can be discussed as below:
Maintenance system:
Maintenance management system is one of the utmost requirements of a business organization operating is oil and gas infrastructure service industry. In direction to this, the company has employed a team of experts for the purpose of overseeing the maintenance planning and scheduling, within the organization. The maintenance teams undertakes a comprehensive range of maintenance work including equipment installation, structural work, electrical work, piping work, instrumentation and controls, rotating equipment servicing and overhauling, and scaffold and insulation related engineering services. Recently, for the purpose of enhancing effectiveness of its maintenance management system, the company has employed Computerized Maintenance Management System (CMMS), which has been designed to increase plant safety, improve communication process and enhanced resource allocation (Rotary Engineering Ltd: Our business 2012).
Quality assurance:
The quality assurance is the area, where there is a need of imparting some intensive amount of attention from the side of upper level of management. For the purpose of assurance of the quality of the product and service offering, there is no any specific department or teams deployed by the management. The production manager handles the quality management department. Within the organization, the operations of quality assurance are accomplished with the help of frequent visits and effective monitoring services undertaken by top level management of the organization (Annual report: Powering growth champion of strategies toasting – NextVIEW 2012).
Technology:
High compatibility with the new and innovative technology is one of the most crucial aspects of operation management of the business organization. From the perspective of technological adoption, the company can be counted as one of the most innovative technology driven business organizations operating within Asia Pacific region. There are a number of different innovative technologies such as Smart Plant suite software, integrated procurement system, Computerized Maintenance Management System (CMMS), SAP solutions, interactive project presentation techniques and so on, which makes the operations of organization highly effective and high-tech. For the purpose of providing some effective and express services to the customers the company has employed a strong management information system. Through this system the company keeps itself updated with different technological changes that are taking place in the external business environment. This allows the organization to enhance the efficiency of its operation management related functions ((Rotary Engineering Ltd: About Us 2012).
Supply chain management:
From the perspective of the management of supply chain, the organization employs an automated and self competent computerized system to manage orders from the clients and supply of the service delivery to them. As the company has geographical diversified business operations, the company has established different off shore centers in different countries such as China, India, and Saudi Arabia. The prime objective of such centers is to provide high quality and timely services to its foreign customers. For the purpose of ensuring an effective and global distribution of products and services across the world, the company is working on its Global Work Force (GWF) schemes. This scheme is aimed to develop some highly skilled and effective teams for the purpose of handling different problems and queries of clients from different countries of the globe (Rotary Engineering Ltd: Our business 2012).
Capacity management:
In addition to other aspects of operation management, effective management of existing resources and capacity is also a distinguished feature of the company. The capacity management aspect for the company is quite satisfactory. The company employs various techniques such as integrated procurement system, regular direct or indirect inspections of the plant, integrated equipment installation system, and tank capacity optimization techniques. With the help of such techniques, the company manages its existing capacities and resources and ensures their efficient usages in the favor of the organization. However, management of the wastage is one of the most critical points on which, the company is facing some issues. The management of company’s entire capacity is not so strong to reduce the level of wastage, which harms the overall productivity of the organization. In direction to this, the company is required to undertake some crucial and effective steps (Rotary Engineering Limited – Investor Relation 2012).
On the basis of overall analysis of the operational management system of Rotary Engineering Ltd, it can be considered that there are some crucial and effective points of the operation management of the organization. These aspects are contributing in the long term success of the organization within Asia pacific region. However, there are some weak points also in the company’s operation management on which, there is a need of imparting some significant amount of attention.
Proposed changes within the existing operation management system of organization
The above discussed section of the paper has reflected that different aspects of operation management departments of the organization are performing quite well in existing period of time. However, as every coin has two different sides, some deficiencies have also been highlighted in existing operational framework of the organization. In order to fulfill such deficiencies, as well as, intensify the existing operation management system of the organization, some crucial and effective changes can be proposed to the organization. These recommendations can be aligned with different important concepts of operation management (Shim and Siegel 1999).
Different techniques can be applied by the business organization for the purpose of enhancing its business operational efficiency. Some of the crucial techniques in this regards can be discussed as below:
Business process re-engineering (BPR):
BPR can be considered as one of the major and systematic approaches for the purpose of advancing the quality of existing business processes. In the context of Rotary Engineering Ltd also, some intensive changes can be applied with the help of BPR. As per this approach it is quite crucial for the organization to make some advancement in its existing operational processes. The approach identifies that organization is required to make some strategic changes in the existing processes. In the context of Rotary Engineering Ltd, some crucial additions can be taken into account in the existing operational framework s such as restructuring of the existing organization structure and management system, rotation in the employee responsibilities and job profiles, measurement criteria for performance assessment, training and development system of the organization, and incentive and performance appraisal system (Information Resources Management Association, International Conference and Khosrowpour 2001).
The technique of BPR also implies the organization to make some changes in its organizational philosophies. Unlike the traditional views of the performance measurement, after the application of BPR, the organization should manage its all the activities around the outcomes rather than tasks undertaken for achieving the outcomes. As there are a number of different processes undertakes within the organization quite simultaneously, it is quite crucial for the management to organize and prioritize them so that occurrence of any contingent situation can be avoided. In addition to this for the purpose of ensuring the efficient and maximum usage of the resources the management of organization should try to link the workflow of different activities, which are progressing simultaneously (Robson and Ullah 1996).
Along with this integration of different activities and processes, it is also recommended to the organization to have a better, effective and centralized control over different business and operational process. For this purpose, the organization should make its controlling and coordinating function quite strong and effective. In the context, there should be a controlling department within the organization that can perform the function of keeping monitoring, controlling and coordinating among different types of operational processes (Dey 2004).
The BPR techniques aims to restructure the processes of the organization so that an effective accomplishment of all the organizational goals and objectives in the most effective manner. With the help of such crucial techniques the management can easily make its operations more effective and worthy for the organization.
Six sigma approach
Another approach recommended to the organization for the purpose of enhancing its existing operational efficiency is the Six-Sigma Approach. Six-Sigma Approach is the measure of the quality of the processes, internal and external business operations, and different products and service offerings of the organization to its customers. In the context of Rotary Engineering Ltd, the Six Sigma DMAIC process can be applied, which defines different stages of quality management within a business organization. As per this approach, five different steps can be recommended for improving organization’s operational effectiveness and efficiency. These steps are define, measure, analyze, improve, control. As per this approach, quality management is a systematic and sustainable approach, which allows the organization to define the exiting problem in regard to quality management function of the organization, measure the intensity of the problem, and analyze the existing resources of the organization for countering the problem (Schroeder, Linderman Liedtke and Choo 2008).
In addition to this, in the Six Sigma plan the prime focus of the organization is on improving the existing efficiency and capabilities of the organization so that a long lasting and sustainable solution of the problem can be found out. In the addition to this, controlling is also one of the most essential functions undertaken by the business organization under the Six-Sigma planning of quality control. In direction to this, it is recommended to the management of the organization to have a separate department for controlling its different business processes in quite effective manner (Smith, Blakeslee and Koonce 2002).
Lean manufacturing
With the help of detailed discussion and in-depth analysis of the existing operational framework of the business organization, it has been revealed that ineffective waste management is one of the major shortcomings of the operational processes of the business organization. For the business originations, operating within engineering, and oil and gas infrastructure services industry, it is quite essential to have effective management of wastage becomes quite essential. It is due to the reason that for infrastructure projects, there are significant amount of wastage, which is not only cost occurring for the organization, but from the society and environmental point of view also, this wastage is quite harmful (Hobbs 2004).
In direction to this, for Rotary Engineering Ltd, adoption of lean manufacturing concept will be quite fruitful. The lean management approach will allow the management to make effective use of its waste resources in the most productive manner. As per this approach, the organization should consider waste management as a core managerial function for the top level management of the organization. In relation to this, there should be an intensive and well directed business strategy at strategic level for the purpose of ensuring the efficient usage of its operational wastage. For this purpose, it is recommended to the organization to make improvements in its existing operational layouts for the purpose of increasing flexibility in the operations. The organization should use some innovative tools and techniques within the existing processes so that wastage can be minimized (Davis 2009).
In addition to this, the management should also focus on developing more robust production system so that recycling of the waste material can be possible. A systematic and scientific process must be followed for the purpose of ensuring and an effective recycling of the waste materials. This process will be proved quite helpful for the organization to reduce its overall manufacturing costs, which is quite helpful for the organization to survive in existing highly competitive business environment (Davis 2009).
Total quality management
In direction to improve the existing operational efficiency the management of the organization, can employ the approach of Total Quality Management (TQM) within its operational framework. Under this approach, the organization should integrate its different departments and functions with quality management department. As per this approach, quality management should be kept as an independent functional department of the organization, which is responsible for maintaining the desired level of quality within different organizational process (Wacker 2004).
In addition to this, the approach also states that management of quality is not the task, which is assigned to quality department only; rather it is a responsibility of every individual working within the organization. For the purpose of enhancing awareness and knowledge regarding different measures and procedures for improving quality of different operations, the management should employ some intensive training sessions and workshops for employees so that they can also contribute in enhancing efficiency of its business operations (Debela and Hagos 2011).
As the organization has different departments and units, it is quite essential for the management to enhance co-ordination among its different functional departments. In direction to this, the organization should undertake different innovative and integrated communication channels such as mobile phones, wireless, and internet. These different communication channels help in better transmission and dissemination of crucial information regarding external business environment. On the basis of such effective information, the management can mold its different business operations to make them aligned with external environmental conditions (Sousa and Voss 2001).
These are some of the crucial and effective recommendations for the management of Rotary Engineering Ltd. for the purpose of improving its efficiency of business operations. The proper and effective application of such recommendation will allow the organization to address different problems related with existing business environment and get established within international market place in the most effective manner.
Conclusion
On the basis of the overall review of the entire paper, it can be concluded that Rotary Engineering Ltd. is one of the most prominent business organizations operating within oil and gas infrastructure service Industry of Asia pacific region. In existing period of time, the company undertakes some highly innovative and effective technologies and procedures for the purpose of enhancing its operational capabilities and efficiency. In addition to this, service delivery system and operational strategy of the organization is also quite aligned with its strategic objectives. However, still there some critical issues associated with different operational processes, which are decreasing the credibility and effectiveness of different operations of the organization. In the long run these issues can be proved quite harmful for the sustainability and long term success of the organization. For the purpose of addressing such issue, there are some crucial recommendations presented in the paper that can be proved quite handy for the business organization in the long run. These all the recommendations are quite aligned with different concepts of operation managements. The organization can attain some crucial advantage by employing such recommendations.
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