System and Operation Management. Critical Evaluation of Relevant Issue. Tesco Case Study

4502 Words Jan 31st, 2012 19 Pages
Introduction

The 21st century has brought about several improvements in business strategies and operations. Most businesses have realized that to be very effective in their given industry the internal operations of such businesses have to be to the highest level of standardized efficiency (Wang et al 2010). These busineses have also realized that the effective management of the systems and daily operations of the organisation would facilitate organisational productivity and result in maximization of profit. According to lohman et al (2004), it essential that 21st century businesses strive to get an effective competitive advantage and attain relevant marketshare to make profit. An effective systems and operations management strategy will
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It is when the organisation establishes or develops an effective strategy that based on their research, will effectively work. Essentially it describes how management expects to utilize the existing resource base created as a result of the production system design

Managing the system
Managing the system involves working with people to encourage participation and improve organizational performance. Participative management and teamwork are an essential part of successful operations, as are leadership, training, and culture. In addition, material management and quality are two key areas of concern.
Material management includes decisions regarding the procurement, control, handling, storage, and distribution of materials. Material management is becoming more important because, in many organizations, the costs of purchased materials comprise more than 50 percent of the total production cost. Questions regarding quantities and timing of material orders need to be addressed here as well when companies weigh the qualities of various suppliers.
Slack et al (1995) postulates that operations management if effectively implemented and managed can be a crucial factor for the company development. According to them operations management is an essential catalyst for an organisation to grow. They believe that operation management is essential for ;
“making and implementing decisions about the design of a company's operational, operations management and maintenance processes, the