Operation Management Models Assignment

Operation management models assignment describes about the numerous models of management methods categorised according to the need of business.


Operation management is central and important process for effective running of company. Operation management can be diversified in different types of businesses. There are included different activities and models of operation management like supply chain management, value chain additions, inventory management and control management.  Operation management and its effectiveness treated as key issue for successful organisation (Valencia 2010). By effective operations management we can analyse requirements of customers and can generate option to fulfil customers and market demand and help in developing competitive advantage in organisation. With increased demand and requirement of customers a company should plan to provide customer oriented services by way of customisation of services and provide additional features and improve by way of improved operational management. This essay is an overview of role and importance of effective operational management in organisation is elaborated by discussing a case study.

In a manufacturing company there is used manufacturing operational management model or process which is liable for execution of production process in efficient manner. Management and balance between the inputs and outputs is evaluated and monitored by operation management which can be done by using effective tools and models (operations management 2016). These models are selected by organisations after strategic analyses of different options with consideration of organisational needs. There can be adopted different operational management process for organisation in expention, growth and transformation position. In situation of the Hawkesbury, Company was effectively satisfying its customer and this leads to increase in the customers in different countries with different demands and requirements for their kitchen cabinets. Company is producing its products from single manufacturing unit and also providing standardised products to its customers. But with this increased demand of companies products in different countries company have analyse requirement of customised products to fulfil specified needs of customers to satisfy them and for this reason company has introduced a new builder’s kitchen which is helping in managing both line of production in company (Bhattacharya, et.al 2016). Strategic planning and management of company is providing standardisation and customisation on different geographic places after analysing the requirement and demand of customers. Company is still providing standardised products on low cost to maintain market position of company. Operation management model and process is defined as main and central function of any organisation which is important to execute agenda of company. Hawkesbury is a manufacturing company and using transformational process for doing its operations and manage them (Brennan, 2011).

     Transformation process can be defined as to transform inputs into outputs by adding value to them and make them productive by using different transformational process. In this transformation process there are inputs like raw materials, resources and transformation process are to add value in them by developing and moulding them and providing outputs to customers and clients and satisfying them effectively. Transformation process changes and alters physical characteristics of inputs and materials. Location and ownership is also changed and transferred in this process. Accommodation and storage is also altered of products and there are changed psychology of customers and clients. Currently in Hawkesbury there are using manufacturing transformation model of process for producing kitchen cabinets by using different inputs like raw material, resources and providing outputs to clients after transformation process. Company is using quality inputs and materials which is helping in providing quality products to clients and also there are effective management of equipment and tools as in they kept separate and manufacturing is done by same craftsman in both standardisation and customisation production process (Collier, et. Al 2014).

Operational management provides accessibility to manage all the issues which are emerging due to any advancement and changes in company’s activities and process. Founders of company Fung and Mie Chen has overviewed and analysed effects of this new addition in company’s production process on organisational growth (Coughlan, 2014). In the process to change and enhance model of operation management there can emerge some issues in a company like management issues, financial issues and resistance to change.

This new addition can lead to increase in company’s turnover due to increased demand and supply of products. This is also helping in developing competitive advantage of company to compete in global market. This new addition in manufacturing and technical advancement is leading to increase in production cost and prices are also increasing due to this. Profitability ratio is also decreasing because of increased cost of production and product prices ( Roy, et. Al 2012). Company is producing to its highest capacity and also producing standardised products with low cost to manage its position and covering the market. This leads to lack of space and storage and there comes requirement to take rented place to store finished products and this is also a reason to the increased cost of production and decreased profitability ratio (Dickinson, 2015). Management of company is emerging as effectively adopting these changes and making efforts to satisfying customer’s demands to manage the new addition in the manufacturing process. Customisation is providing priority by company and this is leading to increased idle time in production process and increasing delivery period of products and this can be emerge a serious problem for company  (Hill, et. Al 2012).

 Financial and Cost management is important to be adopted in operations of company. There should be effective financial planning in the process of operation management of company. Effective financial and capital structure should be managed in company and activities should be in the direction to effectively adopt changes in transformation process without affecting financial structure of company (Chen, 2011). There can be emerge problems like ineffective financial planning and application of capital which can lead to inefficiency of cash flow and low performance of company. Hawkesbury is a manufacturing company executing its operations on the basis of transformation process by using contemporary approach. Company is collecting and managing requirements of capital and funds by its own by issuing share capital and debentures to general public. By the new addition of in manufacturing process company has adopted supply chain management to manage different activities in its operational management (Meredith JR, et. Al 2013).

There emerges problem of effective and strategic financial management in company as in there is a huge part is invested in purchasing raw material and capital is blocked which is affecting financial structure of company. Producing builder’s kitchen is making impact on manufacturing operation model using by company which was standardised and now it is customised and this is increasing turnover of company by increasing supply of company’s products (Nenni, et. Al 2014). Cost management is also affected by this new production process as in company is also manufacturing standardised products for low cost to maintain its market position and this is leading company’s highest limits and rented place is taken to keep and store finished goods. This is increasing cost of production and increasing prices of products. Due to this profitability ratio is decreased of company.

Operation management is central process or its activities like supply chain management, project management, manufacturing operation management, quality and control management are essential for success of any organisation. This essay is a detailed study of operational management and its importance and different models and their applicability with reference of case study of Hawkesbury Cabinets which is introducing new builder’s kitchen in its activities and providing customized products with the standardisation. We have studied about the operation management model and process using by company with the impacts of the new additional manufacturing process on it. Different impacts on financial and operational structures are overviewed by management of company by this report.


  • Bhattacharya, A., Cheffi, W., & Dey, P. K. (2016). Recent advances in manufacturing operations management. Journal of Manufacturing Technology Management, 27(1) doi:10.1108/JMTM-12-2015-0109
  • Brennan, L. L. (2011). McGraw-hill 36-hour course, operations management. New York: McGraw-Hill.
  • Chen, J., & Wang, W. (2011). “target-operation” cost management model. Paper presented at the , 204-210 1022-1025. doi:10.4028/www.scientific.net/AMR.204-210.1022
  • Collier, D. A., & Evans, J. R. (2014). OM: Operations management (5th ; student 5. ed.). South Melbourne, Vic: Cengage Learning Australia.
  • Coughlan, P. (2014). Operations management
  • Dickinson, K. (2015). Financial markets operations management (1st ed.). Hoboken: Wiley.
  • Hill, A., & Hill, T. (2012). Operations management (3rd ed.). New York;Houndmills, Basingstoke, Hampshire;: Palgrave Macmillan.
  • IncubateMass operation and management costs. (2014, ). Mena Report
  • Johnston, R., Clark, G., & Shulver, M. (2012). Service operations management: Improving service delivery (4th ed.). Harlow, England: Pearson Education.
  • Meredith JR, & Shafer SM (2013). Operations Management for MBAs (5th). Hoboken, NJ, USA: Wiley. ISBN: 13 9781118369975.