OPERATIONS MANAGEMENT FOR TECHNOLOGY-BASED

ENTERPRISES
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Table of Contents
Introduction......................................................................................................................................3

Operation management in new branch.........................................................................................4

Roles and responsibilities of operation management...................................................................4

Application of quality management techniques..............................................................................5

Application of supply chain management and inventory management...........................................8

Two aspects of supply chain management...................................................................................8

Two aspects of inventory management........................................................................................9

Aspects of material management...............................................................................................10

Application of policies comply with health and safety of NZ.......................................................10

Conclusion.....................................................................................................................................12

Recommendation...........................................................................................................................12

Bibliography..................................................................................................................................14
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Introduction
This report based on the importance of “operation management” and its involvement in an
organisation is also trying to describe here. The purpose is to develop a new branch in New
Zealand of an existing technological company and here it is Xero. This is public technical
company which is listed in the “Australian Stock exchange”. This is a accounting software that is
based on cloud system and this business platform is for the medium and small size businesses.
Xero’s products follow a particular model for their business which is “Software as a Service”
and the products they sold are depends on the type, subscription etc. almost 180 countries used
their products. Their structure revolves around the cells and it contains the networks, storage,
databases, servers and application software[ CITATION xer20 \l 1033 ].

Mission

The mission of Xero is to connect people through the right number from anywhere, anytime and
any device.

Vision

Develop prosperity through connected people, resources and money with the help of creatively
designed software.

Goals

 To reach to people at anytime, anywhere and in any device.

 To help the small business and create new opportunities for them [ CITATION com203 \l
1033 ].

The focus of this report is on the fact that Xero is going to open a new branch in New Zealand
with the intention to spread up their business in different areas of this world. They are not only
focus on spread up their business but also focused on their services as well that they provide to
their customers. The reason behind choosing this area is that the NZ market is very famous
market for business and their rules and regulations are also very beneficial.
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In this report, several types of concepts and several techniques are going to use in the new branch
o this company which will help them to increase their organizational efficiency and improve the
working quality of the departments. There are different types of methods are followed by the
company for managing their “supply chain”, “inventory” and materials. The position of the
company and the responsibilities of the “service manager” and at the end the “health and safety”
materials are also addressed.

Operation management in new branch

Make to order

According to this mode where the manufacturing of the products are depend on the “demand
forecasting”. The forecast accuracy will prevent the excessive inventory and the stock out of the
products removes the opportunity for the company. The company firstly forecast the demands of
the products and based on the demands then they should increase their product stock by
manufacturing. Xero Company chooses this model to increase their business by improving the
accuracy of their products and try to stock the products based on the demands. Their main focus
is to manufacture the products those are demanded most and in the new branch they will follow
this model[ CITATION lea201 \l 1033 ].

Process design

Within different types of “process design” this new branch of Xero follow is the “continuous
flow manufacturing” that focused on the process optimization that has been used in minimum
inventory. This design based on the one production line, and it can achieve by product
manufacturing from beginning to end. As this has been followed by the new branch, thus it could
say that their main focus is on the “continuous manufacturing” of their products that are on
demand[ CITATION wp120 \l 1033 ].

Roles and responsibilities of operation management 184

The operation managers are considering as the prominent part of an organisation and their
responsibilities are evolved around manufacturing of their products and services. In the new
branch of Xero the operation manager plays the most controversial role and they have different
responsibilities that that they have to fulfill. The responsibilities of the operation manager are –
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 They have their responsibilities towards the “Human resource management” of the
organisation, and look and monitor the activities of the people towards the
manufacturing. In the new branch, the operation manager follows the activities of the
employees and look at their involvement in the goods production.
 The “operation manager manage the assets of the new branch and look at the revenue of
the company.
 The “operation manager” also looks forward to the “cost management” and set the cost of
the products or the new branch.
 The “quality management” responsibility of the new branch is also on the “operation
manager”[ CITATION gre202 \l 1033 ].

The role of the “operation manager” is –

 The “operation manager” design the “operation system” of the new branch and develop it
in such a way that it will control all over the system of the organisation.
 To manage the “operation system” the “operation manager” plays the most significant
role.
 The organizational “operation system” improved by the “operation manager” [ CITATION
ope203 \l 1033 ].
 The “operation manager” also looks at the manufacturing process of the organisation.

Application of quality management techniques

The “quality management techniques” are –

 Benchmarking: This process use the “performance metrics” through which the
performances can measure and it compares with the “industry leaders”. Inefficiencies and
problems are identified through this process and for improving the performance and with
great performance great achievements will come. The new branch of Xero in NZ follows
this technique for improving their performance so that in this branch they will not repeat
their previous mistakes and develop their new business with great success. If they include
his technique from the beginning then they might stop the all the performance related
issues[ CITATION peo20 \l 1033 ].
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 Process of continuous improvement: This process technique based on the improvement

of the services and products of a company and they can use the “breakthrough” and
“incremental” metrics for the improvement. “Incremental metrics” based on the
improvement process over time and on the other hand, the “breakthrough metrics”
depends on the improvement that occurs at once. For implementing the “continuous
improvement process” a particular tool has been used that is “Plan-Do-Check-Act”. Xero
decides to open a new branch in NZ and in this branch they include this technique for
understanding the improvement of the quality and business. if they include it at the
beginning and improve their weak areas then they can easily hold their business in their
new branch[ CITATION asq20 \l 1033 ].
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 Six Sigma: This technique used to improve the quality of the products and remove the
defects that create problems in the quality. This is a very old method and very useful and
through it all the quality related issues may resolve very easily. It based on two
principles, DMADV which stands for “Define”, “Measure”, “Analyze”, “Design” and
“Verify” and it used at the time when a new process has been designing. DMAIC stands
for “Define”, “Measure”, “Analyze”, “Improve” and “Control”. In the new branch, Xero
should include this technique so that they can easily and effectively measure the quality
of the products that they manufacture and eliminate all the issues those are affecting the
manufacturing quality[ CITATION edu202 \l 1033 ].
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Application of supply chain management and inventory management

Two aspects of supply chain management

Supply chain management is considering as the most prominent part of an organisation which
involves all the supply related information. Different types of elements are involved into it and
those are “operation management”, procurement, logistics and IT. By following these elements
the company can manage their service and product flow with the help of the materials finished
the products through their “end client”[ CITATION ana20 \l 1033 ]. These “supply chain
management” has some aspects which will help the new branch of Xero for their improvement.
Two key aspects are –

 Demand management: According to this management, the organisation should not only
focus on the manufacturing on the demanded products, rather they should focus on the
needs of the clients and try to understand what they wants and what is their demands and
what type of quality and requirements they are expecting from. In the new branch, the
organisation should follow and research on the demands of the customers and
manufacture those products that the client’s needs. Thus, the “supply chain management”
 9

of the company should give importance to the “demand management” of the

company[ CITATION dem20 \l 1033 ].
 Communication management: This management operates the communication process
in the organisation, all type of communication process, employees with the leaders, and
leaders with higher authority. In an organisation, communication is must because it helps
each of the employees of the organisation to develop a relation that help them in their
work. In the new branch, they should include this management because they have to heir
new employees and they should feel free to communicate with their seniors if they have
any query. The “supply chain management” should include it in the new system and
operate it with time[ CITATION Ada151 \l 1033 ].

Two aspects of inventory management

For a successful business, the involvement of inventory business is very crucial. In a business
when the supply becomes capable enough to meets demands and the business fluidity has
improved through the access of the “inventory data”. Thus, the organisation should include a
proper “inventory management” which will effectively and efficiently develop the
business[ CITATION Mar207 \l 1033 ]. Two most important “inventory management” aspects are –

 Inventory control: The “inventory management” makes easy with the “inventory
control”. This control system helps the organisation to control their inventory in a more
effective way and the way they operate their financial facilities are very efficient and
effective, the most important it is it made simple the working procedure of the “inventory
management”. The new branch of Xero includes this aspect in their system for making
their management more easy and effective. Their role in this case is very efficient and
well organized and also increases their revenue and develops their business for the future.
The most important is that the organisation focused on these little things for upholding
their revenue[ CITATION Nic20 \l 1033 ].
 Optimization of purchase orders: From the research it has been find out that the
“supply chain” becomes very complex as well as it also affected the business as well. The
purchasing orders of the suppliers does not that much easy these has that it has before.
The solution of this problem is the “safety stock” and it also gas another meaning which
says that the capital has been freeze in the inventory. Xero focused on this strategy and
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include it in the new branch and try to freeze it for their future development and
improvement[ CITATION das16 \l 1033 ].

Aspects of material management

The process of “material management” in an organisation developed for achieving the objectives
of storage, buying and materials move through the supply of their services and products. The
materials that they use for their production based on their own services and they have to manage
them properly and effectively. The most important is that the organisation provides different
types o material for their different products and those products has to good quality based. If the
organisation is capable to provide good material based products to their customers then they can
easily achieve the trust of their customers. The aspects of “material management” are –

 Material codification: Material codification is important because it will help the

customers to recognize their material without any confusion and buy it and it will also
save the effort and time of the buyer. Thus, the suppliers of the materials should
categorize the products according to their type, size, and material and so on, after that
when the customer visits it will save their time and they can easily select their required
material. The new branch of Xero follows this aspect and they codified their materials for
their customers[ CITATION Nik20 \l 1033 ].
 Material standard: The materials that the company used and provide should be good
quality based, because based on the material standard the interest of the customers are
depends. If the customers finds out that the products are not good quality based then it
will directly affected their business and they lost their customers. Thus, the company
should use standard able materials in their production. For the new Xero branch the
operation management focused on standard of the products and their materials so that
they might provide the best products to their customers[ CITATION wis20 \l 1033 ].

Application of policies comply with health and safety of NZ

In the new branch of Xero have to follow the “Heath and Safety Act 2015” which is very recent
law that came into action and the most of the NZ businesses have to follow the policies of this
act and it is for the benefit of their business. So that, this new branch also have to follow this
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policies those are included in the “Health and Safety Act 2015” and by following it they can
control the balance their organizational curriculum. The “health and safety” policies are –

 The organisation has to follow the PCBU or “Person Conducting a Business or

Undertaking” and it is consider as the primary caring duty and responsibility towards the
people or employees at work. According to this policy the organisation have to be careful
about the safety and health of the employees, the other employees who influence the
organisation and the other people from outside may also can create problems. Thus, the
organisation has to manage the security of the employees[ CITATION emp20 \l 1033 ].
 The employees who are work in the organisation also has to give care to their own safety
and their health and they have to be careful that their activities or actions does not harm
anyone or their “health and safety”. Through this act, the organisation gives instruction to
the employees to look at these factors and keep it in their mind.
 The organisation has to give importance to the views of the employees because it affected
their mental health. If the employees get inspiration and motivation for their views then
they involve more efficiently in the business. But if they do not have the proper
appreciation then it will affected their psychology and they might be felt low and it
directly shows through their health. If the employees get sick then it will affected the
business, so that the organisation always should give appreciation to their
employees[ CITATION cid20 \l 1033 ].
 Every organisation has their officer, it can be the CEO, the manager or the director, can
be anyone, but he have to connected with the business internally. The officer looks at the
performance and activities of the employees along with the fact that the “health and
safety” rules are followed properly in the system. If the officer finds out that the safety
rules are not followed properly then he can take immediate action against this.
 This rules also focused on another factor where it mentions that the worker can refuse to
work then it might be consider as risk according to “health and safety”. The PCBU
should inform about the fact that a worker stop his/her work. There is also mention that
until RCBU resolve the issue and find out the reason for refusing work, for that time the
worker cannot start again. This is absolutely against law and they cannot overlook
it[ CITATION nzb17 \l 1033 ].
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Conclusion
“Operation management” is a very significant factor for an organisation and in this report for
Xero’s new branch an “operation manager” required who will look at each and every area of this
branch so that they can develop it as they want. All the management area those are important for
this organisation has been identified and their role and importance in the business has been
described with their proper analysis. With this report, it has been analyzing that what are the
actors that the company have to be careful about in their new branch. This branch is for their
better development and grows up their business for the future purpose. Different strategies and
different techniques are implemented in this new branch with the hope that they can easily
improve their business.

Recommendation
After analyzing the importance of “operation manager” in an organisation and the requirements
of the “operation management” are also defines here. the concern of this report is based on the
opening of a new branch in NZ of the company Xero which is a very famous company and their
services are also well organized and the customers are very much attract towards their services.
Thus, for this new branch the importance of operation management has been describe here. They
follow a particular model and process that identifies with the responsibility of the “operation
manager”. The techniques of “quality management” also describe along with the “inventory
management’ and “supply chain management”. In this new branch they should also include some
policies according to the “health and safety act” of NZ. According to these factors, some
recommendations are also provided and those recommendations should be based on the future
development and improvement of this organisation.

If the organisation includes the worker benefit related laws then it will easily attract the new
customers and also provide special benefit for the locals. If they implement this strategy in their
organisation then they can easily get the attention of the people and appoint them in their
organisation as an employee. Along with it if the organisation will provide all type of benefits to
the employees and inspires them and motivate them to start their career with them then will
prefer them.
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The organisation should include a process through which they can measure the performance of
the employees and the organisation. Both are very important and it affected their business
internally as well as eternally. If the employees perform well then it will directly shows through
the performance of the business. Because of it their revenue increases and they can invest more
and in different other sectors. If the organisation operates their “inventory management” and
“supply management” with the new and advanced technique then they might gain more success
and improve their business for the betterment. With new technology, new opportunities are also
appear to the organisation so that they can focus on their future development.

The organisation also has to provide some important features in their system which will give
them the opportunity for their future and they can easily develop their business and gain success.
If they successfully implement all the important factors in the business then they can efficiently
perform their role and attract the customers more with the effective and attractive products and
services. The customer satisfaction is their main target and for this reason they can based on
anything.
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