12 Pages
3090 Words
Introduction Of Operations And Service Management
This research intends to analyse and offer changes to Marks & Spencer's operational practises, a well-known retail corporation that operates in the service business product manufacturing sectors. Marks and Spencer possess a long history and is well-known for its dedication to high-quality items and excellent service to clients. In order to stay successful in contemporary changing economic environment, organisations must continually analyse and improve their operational practises (M&S, 2023). In accordance with this goal, the paper will dive into operation management hypotheses, ideas, and principles and investigate their applicability to the customer service and product manufacturing sectors. It will assess several operations management strategies like ability, excellence, along with supply chain management.
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One operation management practice within a chosen organisation
Capacity management is one the management of operations practise that may be investigated inside Marks & Spencer's. The optimal use of resources to satisfy demand from consumers while optimising expenditures and preserving the standard of service is referred to as capacity management. It entails organising, regulating, and tracking the handling of different materials, which includes as buildings, machinery, and personnel, in order to maintain smooth operations and minimise blockages (Sugumaran.Kumaran, 2019). With a diverse range of goods and services, Marks and Spencer's engages in both the customer service and producing sectors. Effective capacity management is critical for the organisation to satisfy client needs, reduce delays, and increase satisfaction among clients. Marks and Spencer's can use a variety of tactics and techniques to properly manage capacity. To begin, reliable demand forecasting is critical (Tenhiälä, 2012). The corporation may forecast future demand and modify capacity by analysing past data, market trends, and client preferences. This helps them to avoid instances of overcapacity or under capacity, optimising resource allocation and lowering expenses. Workforce planning is another part of capacity management (Li, 2023). Marks and Spencer's may use workforce scheduling and cross-training approaches to guarantee that the proper amount of people with the relevant abilities are available at the right time. The organisation may improve productivity, lower labour costs, and maintain service quality throughout peak and off-peak hours by balancing workforce levels and competencies (Frederick, 2023). Furthermore, the organisation might investigate the notion of capacity flexibility. This entails developing procedures to allow for growth and adaptation. To swiftly modify capacity levels depending on shifting demand patterns, Marks & Spencer's might consider solutions such as outsourcing, subcontracting, or collaborating with suppliers. This adaptability helps the organisation to respond to swings in demand effectively while minimising idle capacity during sluggish periods (Dr. Hasan, 2019). In addition, technology is crucial in capacity management. Marks and Spencer's may increase forecasting accuracy, optimise manufacturing processes, and simplify operations by leveraging sophisticated technology including data analytics and automation. Employing a comprehensive ERP, or enterprise resource planning, system, for example, may enable instantaneous insight into the state of inventory, schedules for manufacturing, and requests from customers, allowing for more effective capacity planning and management. The management of quality is inextricably linked to capacity management (Parthvyas, 2023). To avoid capacity restrictions caused by defects, rework, or customer returns, Marks & Spencer's should ensure that its operational practises correspond with quality requirements. Applying quality control tools that include statistical process monitoring and comprehensive quality management may assist in identifying and addressing issues early on, minimising operational interruptions and optimising capacity utilisation (Carvalho, 2023). It is vital to highlight that capacity management is a continuous process that requires ongoing surveillance and modification. To assess and evaluate capacity utilisation, productivity, and customer happiness, Marks and Spencer's should define metrics for performance and indicators of performance (KPIs). Regularly reviewing these indicators will allow the organisation to discover areas for development and make educated decisions (Hilletofth, 2016). Overall, it can be said that Marks and Spencer's relies on effective capacity management to fulfil consumer demand, optimise resource utilisation, and maintain service quality. The organisation may enhance its capacity management practises by using tactics such as precise demand forecasts, personnel planning, capacity flexibility, and utilising technology.
How this operation management practice impacts the organisation
Marks and Spencer's capacity management practise has a substantial influence on the company's efficiency. The organisation may optimise resource utilisation, decrease expenses, boost customer happiness, as well as enhance overall operational effectiveness by effectively controlling capacities. This critical analysis, underpinned by pertinent operations administration theories, will investigate how capacity administration affects Marks & Spencer's efficiency. Avoiding overcapacity and under capacity problems is a critical part of capacity management efficiency (Wassem, 2019). Overcapacity arises when an organisation has more resources than it needs, resulting in underutilization and higher expenses. Under capacity, on the other side, occurs when an organisation lacks the resources needed to fulfil consumer demand, resulting in possible revenue loss and disgruntled customers. The economies of scale hypothesis states that an organisation achieves maximum efficiency by functioning at the point where its production matches consumer demand, minimising waste and maximising productivity (SALIKON, 2023). Marks and Spencer's may prevent overcapacity and under capacity problems by precisely anticipating demand and modifying capacity appropriately, optimising resource utilisation and boosting overall efficiency. Optimal allocation of funds is also enabled by efficient capacity management. Marks & Spencer's may more efficiently distribute resources such as labour, equipment, and facilities by aligning capacity with demand patterns. According to the Theory of restrictions, identifying and addressing bottlenecks, or restrictions that limit total system performance, is critical for boosting efficiency (Zamzam, 2023). Capacity management practises enable the organisation to identify and correct obstructions, ensuring that financial resources are directed to the most vital operational areas. This cuts down on idle time, shortens wait times, and boosts production, thus boosting the business's performance. Furthermore, capacity management affects customer happiness and service quality, resulting in increased efficiency. According to the Service Quality Gap Theory, client happiness is impacted by perceived service quality in relation to their expectations (Pullman, 2020). Marks and Spencer's may cut waiting times, shorten lineups, and deliver quick and responsive service to consumers by properly managing inventory. This increases the entire consumer experience, satisfaction levels, and customer loyalty. Customers that are satisfied are more likely to return and refer the firm to others, resulting in improved sales and operational efficiency. Furthermore, technology is critical in improving capacity management efficiency. According to the Resource-Based View thesis, organisations may gain a competitive edge by using distinctive resources and talents. Marks and Spencer's may acquire and analyse real-time data, optimise manufacturing processes, and simplify operations by employing technology such as advanced analytics, automation, and enterprise resource planning (ERP) systems. This enhances forecasting accuracy, allows for more flexible decision-making, and makes proactive capacity management easier. Technology also improves communication and coordination among departments and stakeholders, reducing mistakes, delays, and interruptions (Wassem, 2019). As a consequence, Marks and Spencer's may improve capacity management and overall operations. Overall, it can be said that the capacity management practise has a substantial influence on Marks and Spencer's efficiency. The organization's total operational performance may be improved by avoiding overcapacity and under capacity problems, optimising resource allocation, and improving customer satisfaction. The use of operations management theories such as economics of scale, Theory of Constraints, Service Quality Gap Theory, and Resource-Based View aids in the critical study of how capacity management affects efficiency. Marks and Spencer's can improve its efficiency, increase its competitive position, and promote sustainable development in the dynamic retail business by consistently improving capacity management practises, utilising technology, and aligning operations with customer needs.
How technology could be embedded in this process
Marks and Spencer's relies heavily on technology to improve capacity management practises and overall operational efficiency. By incorporating technology into the process, the organisation may increase forecasting accuracy, optimise resource allocation, and boost customer satisfaction. The potential use of technology for supply chain management, in particular, can have a substantial influence on capacity management efficiency. To deliver items or services to clients, supply chain management entails the coordination and integration of multiple processes such as sourcing, procurement, production, and distribution. Technology provides several chances to increase supply chain efficiency by optimising this procedure. Implementing a sophisticated data analytics platform is one possible utilisation of technology for supply chain management. Marks and Spencer's may use data analytics tools to get significant insights while making informed choices using large volumes of data accessible from numerous sources, including sales records, client input, and market dynamics (Hilletofth, 2016). The organisation can increase demand forecasting accuracy, optimise inventory levels, and modify capacity by analysing historical data and current market conditions. This enables more effective resource allocation, cost savings from excess inventory or stockouts, and improved capacity management efficiency. Furthermore, technology can provide real-time visibility and communication throughout the supply chain. Putting in place an integrated enterprise resource planning (ERP) system allows for smooth communication and information exchange among departments, suppliers, and partners. Marks and Spencer's, for instance, can track and screen stock levels, position, and development continuously utilizing RFID (Radio Recurrence ID) innovation (Hilletofth, 2016). This allows for proactive capacity management by allowing the organisation to swiftly identify possible bottlenecks, change production schedules, and assure timely stock replacement. Improved visibility also leads to greater supplier collaboration and shorter lead times, improving overall operational efficiency. Automation and robots are further possible supply chain management technologies. Marks and Spencer's may eliminate human mistakes, enhance process speed, and improve accuracy by automating specific operations such as order processing, inventory management, and fulfilment. Automated systems, for example, may provide real-time inventory information, initiate replenishment orders, and optimise warehouse layout and picking procedures (Pullman, 2020). This decreases inventory management time, reduces stockouts, and improves capacity management efficiency. Logistic and transport alternatives powered by technology may also improve supply chain efficiency. Marks and Spencer's can use transportation management systems (TMS) and route optimisation tools to increase overall logistical effectiveness and optimise delivery operations. To establish the most effective routes and timetables for deliveries, these systems examine parameters such as times for delivery, truck resources, congestion, and fuel economy. Marks & Spencer's can enhance capacity utilisation and assure timely delivery by optimising transportation. In addition, technology allows for improved relationship management (CRM) and customer happiness (Li, 2023). Marks and Spencer's may improve the consumer experience by integrating customer-focused technology such as online order tracking systems, personalised suggestions, and responsive customer support platforms. This results in greater client loyalty, favourable publicity, and, eventually, enhanced capacity management effectiveness through repeat business and less grievances from customers. Overall, technology has enormous potential for integrating inside supply chain management procedures at Marks & Spencer's to increase capacity oversight and overall efficiency. The organisation can optimise resource allocation, increase accuracy of forecasts, simplify operations, and increase customer happiness by utilising sophisticated analytics of data, instantaneous visibility, automation, multimodal solutions, and customer-focused technology. The use of technology into supply chain management aids in the efficient handling of capacity and adds to the organization's overall performance in a competitive retail market (Dr. Hasan, 2019).
What supporting functions are linked to this operation management practice
Many supporting positions are inextricably tied to Marks & Spencer's capacity-based operation oversight practise. Human Resources (HR), Information Technology (IT), Marketing, and Finance are examples of these roles. By matching their efforts and achieving capacity management objectives and strategies, each of these departments plays a critical role in ensuring organisational success.
Human Resources (HR):
HR is critical to capacity management because it ensures that the organisation has the appropriate staff with the requisite skills and competences. HR may help in a variety of ways:
- Workforce Planning: Human resources may cooperate with operations management in order to estimate projected demand and establish the workforce composition along with the abilities needed. Identifying capacity requirements allows HR to make certain that recruiting, selection, and instructional procedures are aligned to fulfil those requirements. This guarantees the organisation has the proper amount of personnel with the relevant skills to efficiently manage capacity.
- Training and Development: Human resources may provide training programmes to help employees improve their skills and knowledge, allowing them to do their jobs more successfully. Training on demand forecasting techniques, for example, or process optimisation can help to enhance capacity management practises.
- Performance Management: Human resources may create and execute performance management systems that link employee goals and objectives with capacity management goals. HR may motivate workers to contribute to capacity optimisation and overall organisational success by tying performance measures to capacity-related KPIs.
Information technology
IT plays an enabling role in capacity management by offering systems and instruments that facilitate effective management. IT may help M&S in the following ways:
- ERP Systems: IT may develop ERP systems that combine diverse business operations such as managing inventories, scheduling of production, and demand forecasting. These technologies provide real-time data exchange, precise information flow, and improved departmental collaboration. This promotes effective capacity management by guaranteeing that every important stakeholder is granted access of the information they need to make decisions.
- Data Analytics: Information technology may give ability to analyse data to help with precise predictions for demand as well as capacity planning. IT can help discover tendencies and make educated capacity optimisation choices by integrating past information, industry trends, and feedback from customers. Algorithms for machine learning, for example, can aid in forecasting demand patterns and optimising resource distribution.
- Communication and Collaboration solutions: To support efficient communication among teams from multiple departments, IT can install interaction and cooperation solutions such as organising projects platforms or webinar systems. This increases coordination and promotes rapid decision-making, contributing to effective capacity management.
Marketing
Marketing is important in capacity management because it influences consumer demand and understands client preferences. Marketing can be helpful in the following ways:
- Demand Forecasting: Marketing may give essential inputs for demand forecasting by analysing market trends, performing market research, and understanding customer behaviour. This information aids in matching capacity to predicted demand and preventing problems of under or overcapacity.
- Promotions and Pricing: Marketing initiatives like as promotions and pricing incentives can impact consumer demand and help smooth out swings in demand. The organisation may optimise resource allocation and guarantee optimal capacity use by combining marketing efforts with capacity planning.
Finance
Finance provides financial analysis, planning, and investment decisions to assist with capacity administration. Finance may be helpful in the following ways:
- Cost Analysis: Finance may examine the cost structure of capacity management, including both fixed and variable expenses. Finance can give insights into optimising the use of resources and minimising expenses by examining the monetary effects of capacity decisions.
- Budgeting and Investment: Finance is critical in allocating monetary funds for capacity-building investments. Finance may help decision-making on capital expenditures, implementation of technology, or enhancements to processes by examining the economical sustainability of capacity augmentation efforts.
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Conclusion
Finally, important functions such as Human Resources, Information Technology, Marketing, and Finance are critical to the effective practise of capacity management at Marks & Spencer's. By matching their efforts with capacity management goals, these departments play critical roles in ensuring organisational success. Human Resources ensures that the organisation has the appropriate personnel, skills, and performance management methods. Data analytics, communication, and collaboration are all made possible by information technology. Marketing has an impact on demand and aids in predicting. Finance facilitates financial analysis and investment decisions connected to capacity. Marks & Spencer's may optimise capacity utilisation, improve operational efficiency, and achieve organisational success by utilising the contributions of various supporting departments.
References
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- Dr. Hasan, M. M., 2019. HR practices of Marks & Spencer, Selfridges, Primark, and Sainsbury’s,Fundamentals of Human Resource Management,, s.l.: Ahsanullah University of Science & Technology.
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- Hilletofth, P., 2016. Capacity dimensioning of operations capacity in manufacturing companies, s.l.: JÖNKÖPING.
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