Operation Management Machinery Human Capital

Question: Discuss about theOperation Managementfor Machinery Human Capital. Answer: Introduction The responsibility of an operation manager is to plan, coordinate, and control the needed resources to produces services and good that meet the needs of the end customers. Therefore, operation managers are expected to manage company information, technologies, machinery human capital, and other resources utilized in realizing the company strategic objectives (Stevenson, 2007: 13). The author divides operation management into two categories including manufacturing operations and service operations. The role of manufacturing operations is to produce tangible and physical products that can be stored before they are distributed or needed by customers as in the case of automobiles. Service Manufacturing, on the other hand, produces products that are intangible including financial services, consultation services, or customer care services just to mention a few (Anderson, Anderson Parker, 2013:15). Customers in the manufacturing operations do not exhibit direct contact with the company oper ations manager because are often redirected to the company via customer care centers, distributors, and dealers. For instance, when a client purchases an automobile, he/she does not come into contact with the company that manufactures the brand. However, some companies such as Toyota provide both products and services to their clients. For this reason, the paper primarily focuses on critically discussing the particular challenges, an operations manager faces, in managing quality in a service organization relative to a manufacturing organization. Toyota Company and McDonald Company will be used as a case study. Toyota Company is a manufacturing company whereas McDonald is a food service organization. Overview of Toyota and McDonald Company Toyota Motor Corporation carries out its operations in the automotive industry. Apart from manufacturing various brands of vehicles, the company also provides its target market with financial services. The companys financial service segment is characterized by the provision of financing services to customers and dealers who lease or buy Toyota vehicles. The financial service segment also provides leasing and retail installment credit via the purchase of lease and installment contracts. Other financial services provided by the company include retail leasing, retail financing, wholesale insurance and financing (Toyota Motor Corp, 2016). In the manufacturing side, the company designs, manufactures, assembles and sales commercial vehicles, minivans, and passenger vehicles. Toyota subsidiaries include Hino Motors, Ltd that sells and produces commercial vehicles including buses and trucks and Daihatsu Motor Co. Ltd that sells and manufactures compact cars and mini-vehicles. McDonalds is am ong the global prominent food service companies. The company is characterized by more than 32,000 restaurants strategically placed in 117 countries (McDonalds Corp, 2016). The company brand is one of the most respected and recognized. McDonald is also competent in providing franchising services, marketing, retailing, and real estate. Importance of Total Quality Management in the Manufacturing and Service Organizations Successful total quality management implementation in both the manufacturing and service sector is increasing becoming a pressing concern to the labor force as well as employees, customers, profitable and professional organizations (Jones, 2014: 5). There are various benefits accrued from the implementation of total quality management in the organization. The implementation of total quality management helps organizations in realizing process and productivity efficiency by removing and identifying issues in work systems and processes (Naagarazan Arivalagar, 2005: 7; Karyotakis Moustakis, 2014: 40). Total quality management also tackles key issues that affect the performance of an organization including errors in work processes, duplicate efforts, unnecessary tasks, and redundant practices. Total quality management also helps in pre-empting and predicting unproductive activities and mistakes in the organization. In the manufacturing sector, total quality management reduces operating costs by eliminating repetitive work and non-confirmation; removing reject products and waste costs as well as reducing customer support and warranty costs(George Weimerskirch, 2008: 43; Ashraf, 2016: 201). Total quality management improves process efficiency which in turn results in improved revenues. For the service organizations, the implementation of total quality management results in improved customer satisfaction. According to Arora (2006: 25), customer satisfaction is the long-term benefit accrued as a result of total quality management. For instance, total quality management helps in identifying the best measures that match the expectations of the customer regarding experience, service, and product. Total quality management also aids in boosting customer satisfaction by reducing waiting time and by transforming client handling and appointment scheduling. Accordingly, it makes significant transformations to the delivery process with the primary objective of ensuring that customers access their products promptly (Sangod, 2016: 26). The implementation of total quality management results in the production of quality products that improves customer loyalty and which do not need repairs. Total quality management also improves communication between the organization, employees, and customers. Lastly, total quality management enhances an organization competitive advantage by investing in innovative products and improving the availability of products in the market. However, maintaining total quality management in the service sector poses a great challenge to the operations manager. The challenges that operations manager in the service organization faces in their endeavor to maintain quality are detailed in the next paragraph. Challenges That an Operations Manager Face In Managing Quality in a Service Organization Relative to a Manufacturing Organization It is the role of the operations manager to continuously improve and upgrade their systems and processes to enhance the quality of products. For service organizations, it is their duty to enhance the quality of customer service and feedback provided to the clients. Implementing and initiating total quality management initiatives requires operations managers to conduct thorough research and planning (Jones Robinson, 2012: 10). Operations managers are also required to train organization staffs on how to implement various total quality management practices. However, in their endeavor to manage quality in the service organization, operations manager face numerous challenges. Some of these challenges include: Globalization The world is increasingly becoming a global village because individuals from different countries around the world can now communicate and interact, thanks to advancements in technology. For manufacturing and service companies such as Toyota Company and McDonald, advancements in transportation and communication technology have enhanced the efficiency and effectiveness of their operations. As a result, the competition for both international and domestic market has intensified. To enhance organization competitiveness, operations manager are mandated to produce quality services at a competitive price. For this reason, the operations manager in the service organization such as McDonald must channel his/her efforts in the four functions of an organization including controlling, leading, organizing, and planning to enhance the competitiveness of the service in both domestic and global markets. Besides, the operations manager must have knowledge of different cultures and international market s. For instance, as a food service organization, McDonalds needs to understand that as a food service organization, it needs to embrace the culture of the country where it conducts its operations. For instance, the foods prepared must mirror the culture of the people in that particular country. In Muslim countries, it is the role of the operations manager to ensure that products do not contain beacon. However, for manufacturing company, no need to change the products because the culture does not interfere with the model of the car produced. Customer Satisfaction Total Quality Management is a term being utilized by organizations to describe the efforts they have channeled towards maintaining quality in their organizations. Companies that have implemented total quality management focus on enhancing customer satisfaction. However, improved customer satisfaction can be realized by ensuring that employees work in collaboration. High quality and low cost are the primary attributes that a service organization needs to possess (Dumitrescu Peculea, Oache?u Cerchia, 2015: 8). For instance, for McDonald to remain competitive and satisfy its target market, it has to supply enough services and at a low price minus compromising their quality. It is the operations manager responsibility to minimize this trade-off. Additionally, it is their responsibility to ensure that the service meets the customer standards. However, for the service organization, enhancing customer satisfaction is quite challenging because it depends on employees behavior. The manufact uring company such as Toyota, on the hand, can enhance customer satisfaction by ensuring that the products manufactured are of high quality. Besides, the company can use systems such as enterprise resource planning to improve quality and consequently improve customer satisfaction (Slack, Chambers Johnston, 2010: 63). On the contrary, it is quite difficult for operations manager in the service organizations to control customer satisfaction because it greatly depends on how employees react to customer comments on social media sites and how they serve them. Besides, it is very difficult for the operations manager to define customer satisfaction because there are negative and positive elements that impact on the well-being of the consumer. For this reason, it is important for operations manager in the service industry to conduct a thorough market research to find out things that piss off and motivate customers. Competing Practices The operation manager finds it a bit challenging to manage competing practices in the organization. The finance function of the organization is often characterized by various problems. For instance, the human resource manager might require the manager to communicate the company financial details via written memos whereas the operations manager might prefer to do it via email. However, this problem can be solved by putting in place standards that maintains quality of the organization financial reports. Technology Advancements in technology have resulted in the production of a wide range of processes and products. For this reason, service organizations are expected to utilize computer technology to enhance the quality of service they provide to their clients. Unlike in the service sector, the manufacturing organizations such as Toyota Company have in disposal various technologies to help the operations manager maintain quality. Some of these technologies include computer controlled manufacturing, robotics, global positioning systems, and biotechnology (Wild, 2003: 47). Besides, technological advances in new equipment, new methods, and new materials have helped operations manager maintain quality in their organizations. Toyota Company being in the manufacturing sector can utilize automated systems to minimize human interaction. Additionally, technological availability helps Toyota company to improve effectiveness and efficiency. However, for the service sector, the operations manager needs to m onitor human activities to enhance the delivery of quality customer care services. Even though service organizations might automate their system, human interaction with the client is paramount. For instance, employees need to respond to customer queries and serve them. Therefore, without adequate training, it becomes somewhat difficult for operations manager in McDonald Company to maintain quality. In addition to the above, operations manager in McDonald exhibit challenges in expressing customer service benefits in financial terms as well as analyzing the true cost of inadequate customer service. As such, it becomes increasingly difficult for an operations manager to justify the need for improving services and explain the importance of customer satisfaction. Strategies That Operations Manager in Service Sector Can Utilize To Maintain Quality Operations manager in the service organization such as McDonald needs to maintain the well-being of their customers by taking a proactive step in meeting the tastes and preferences of their target audience. Additionally, it is important to make customers feel important. Operations manager can realize this by designing into their customer relations plan some key elements that make customers feel important. Some of these key elements include free souvenirs, welcome symbols, gifts, and improved customer attention (Paraschivescu, 2016: 56). The operations manager can also offer customers with technical assistance to enhance their experience while using a particular service. For instance, some customers are ignorant when it comes to the utilization of certain technologies, hence the need for a specialist who can explain to them how a particular technology functions. Another strategy that operations manager can utilize to maintain quality in a service organization is the implementation of a training program that focuses on quality management (Yadav, 2015: 7). Through this training, employees dealing directly with clients will be aware of the basic principles of total quality management such as customer focus, cultural issues and other factors that affect customer satisfactions. Conclusion Conclusively, it is the operations manager responsibility to maintain quality in the organization. Maintaining quality results in numerous benefits including improved customer service and satisfaction, enhanced competitive advantage of the organization in their respective industry, waste reduction, and improved efficiency. However, the operations manager in the service sector relative to the manufacturing organization faces numerous challenges in managing quality. Some of these challenges include globalization, technology, and customer satisfaction. Regardless these challenges, operations managers in the service sector can utilize some of the strategies utilized in the manufacturing sector to maintain quality. Some of these strategies include designing of service quality, providing technical assistance to customers, and enhancing the well-being and comfort of the consumer. List of References Anderson, M. A., Anderson, E., Parker, G. (2013) Operations Management For Dummies, Hoboken: Wiley Publishers. Arora, K. C. (2006) Total quality management: [ISO 9000 (2000), ISO 14000 (2004), TS 16949, six sigma, TQM, quality assurance system, concurrent engg, New Delhi, S.K: Kataria Sons. Ashraf, A.A.( 2016) 'Total Quality Management, Knowledge Management and Corporate Culture: How do they synchronized for performance excellence', Pakistan Journal of Commerce Social Sciences, vol. 10, no. 1, pp. 200-211. Dumitrescu - Peculea, A, Oache?u, M, Cerchia, A.E. (2015) 'Development and Integration of a Quality Management System for the Banking Sector', Valahian Journal of Economic Studies, vol. 6, no. 4, pp. 7-18. George, S., Weimerskirch, A. 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