Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 8

JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY

MOMBASA CBD CAMPUS

COURSE: BACHELOR OF SUPPLY CHAIN MANAGEMENT

UNIT CODE: [HPS 2209]

UNIT TITTLE: OPERATION MANAGEMENT IN SUPPLY CHAIN


YEAR: 3 SEMESTER 1

HDE223-C005-0469/2017

SAUMU JUMA SULEIMAN

TASK:
CHALLENGES FACING OPERATIONS MANAGER IN THEIR DAY
TODAY BUSINESS ACTIVITIES.

INDIVIDUAL ASSIGNMENT
DATE OF SUBMISSION: 4TH JULY 2022

Challenges facing operations manager in their day today business activities.


(25 MARKS)

OPERATIONAL MANAGEMENT
INTRODUCTION
Operations management pertains to the process that includes managing the operation and
process within an organization. With effective and adequate operations management, there is
much more accountability and accuracy for successful delivery of a product or project. While
operations management has aided production facilities immensely, there are still some current
challenges that are faced that are holding them back. Here are some of the challenges faced
by operational managers.
FUNCTIONS OF AN OPERATIONS MANAGER
Operations managers usually oversee all of the major administrative departments, such as
human resource, Finance, Marketing and Communication, IT and Logistics as well as being
the first port of call for troubleshooting and project management. The pure breadth of the role
can often seem overwhelming. It is important to have skills and knowledge across a wide
variety of topics to allow the business to grow, and with it, develop a strong back-office team
to support the operations department.
CHALLENGES OF OPERATIONAL MANAGERS
Competing Practices
Managing the competing business practices within an organization is a major
challenge for an operation manager. Different offices in the company may have
different ways of doing things, for example, the finance office may prefer to
communicate using emails whilst the human resource prefers to use written memos as
a way of communicating. These differences in business procedure can have a
detrimental effect on operations when they impact the effectiveness or efficiency of
delivering quality goods and services. The operations manager has to ensure that there
is no communication breakdown amidst all offices and should be able to come up
with a way that different offices can communicate and do their work with little or no
conflict whatsoever.
Implementing Best Practice.
Operations Managers have to ensure compliance requirements are met and they need
a lot of information and data to be able to run business operations as effectively as
possible. The challenge is to ensure the relevant data is being recorded whilst
reducing downtime to a minimum. The key is to ensure that all arms of the
organization are well educated/trained on why various processes are important and
demonstrating how adopting best practice will ultimately contribute to any company’s
success
Sustainability
Operation managers are tasked with creating long-term customer and employee
strategies that acknowledge the organization's impact on the social, cultural and
economic environment. Many companies have adopted environmentally friendly
strategies as part of a focus on sustainability. These strategies seek to eliminate waste
and turn the company's attention to minimizing negative effects on the environment
that reduce the well-being of local consumers. Developing business policies that
encourage transparency are also part of the sustainability push.
Business operational sustainability is a “method of evaluating whether a business
can maintain existing practices without putting future resources at risk.” When
discussing the concept of sustainability, it is often referred to as theThree Pillars of
Sustainabilitywhich are social, environmental, and economic. Operations managers
must concern themselves with the outcomes of each of the pillars including how
their work affects safety, welfare, communities, the environment and economic
sustainability.
Effective operations managers must implement best practices with a concern for all
three pillars of sustainability. They also need to initiate and verify corrective action
when any outcome of one of the three pillars becomes jeopardized.
Corporate Reporting
Many operation managers are responsible for corporate reporting, including the
compilation of financial and performance data, the communication of this data to
stakeholders and regular audits of the organization's financial books. Challenges can
arise in corporate reporting when the business has not kept current or accurate
records. The operations manager has to be answerable to the auditors or the
stakeholders even though he is not directly involved in the job unlike the finance
manager. They however risk losing their jobs and worse more face imprisonment.
Operations Managers should always ensure that all data handed over to them is
accurate and up to date.
Constant innovation
Operations Managers are constantly thriving to streamline the efficiency of their
businesses. They are continually looking for innovative ways to increase productivity
whilst reducing costs. Whether this is implementing new policies and procedures,
rolling out new IT products and systems or simply finding new and inventive ways to
motivate your consultants, the ability to take on every challenge with creativity and a
fresh pair of eyes is essential.
System Design
Organizations should develop systems capable of producing quality goods and
services in demanded quantities in acceptable time frames. Designing the system,
planning the system, and managing the system present a wide variety of challenges to
even the most savvy operations managers.
The relationship between system design and operational management, the main
theme is that organizations must develop systems capable of “producing quality
goods and services in demanded quantities in acceptable time frames.” Designing
the system, planning the system, and managing the system present a wide variety of
challenges to even the most savvy operations managers
As operations managers work in multidisciplinary environments, they must be aware
of and effectively respond to the challenges presented by globalization,
sustainability, ethical conduct, effective communication, and system design. Doing
this calls for operations managers to excel in the business, technical, and
interpersonal aspects of their work as they actively support the mission and vision of
their organization.
Effective Communication
Being consistent and effective when communicating can be difficult anyone in any
position within an organization. The challenge for the operations manager is to be
able to communicate effectively with all internal and external stakeholders. Whether
they are talking to someone on the factory floor, or in the boardroom, they must be
able to effectively communicate their message as well as process the messages being
directed to them. Mastering oral, written, and non-verbal communication is integral
to making day-to-day operations run smoothly. Effective and efficient
communication is also necessary for building employee morale and deepening trust
with management. Operations managers who take the time to be self-reflective, the
initiative to be authentic, and the effort to work on their communication skills are
bound to be both productive and successful. The development of these skills are
frequently the most requested of upper level management of their new and mid-
level managers and required to be successful in any company.
Ethical Conduct
Ethics is defined as a subset of business ethics that is “meant to ensure that the
production function and/or activities are not damaging to either the consumer or the
society.” In particular organizations should consider the effects new technologies,
defective services, animal testing and business deals have on people, safety, and the
environment.
Unethical behaviour has significantly contributed to the demise of successful
corporations like Enron, Tyco, and many varied firms doing business on Wall Street.
Being ethical across all business functions such as accounting, human resource
management, marketing and sales, and production are clearly within the purview of
the operations manager. Unethical behavior, regardless of its origin, becomes a stain
on the company as a whole. The recently noted ethics breach at Wells Fargo is just
one poignant example.
Globalization
Globalization is: “a process of interaction and integration among the people,
companies, and governments of different nations.” It is driven by a reduction in
trade barriers, advancements in information technology, and transportation
technology. Operation managers face competition from the company across the
street, as well as, from across the country and across the world. TishtaBachoo,
Accounting Professor at Curtin University in Australia, explains that companies who
compete with others abroad will have to improve quality while lowering prices to
remain competitive. This falls on the operations manager as he or she is the one who
“engages in the four functions of planning, organizing, leading, and controlling to
ensure that the product or service remains competitive in the market.” Batchoo adds
that the operations manager must tap into their creative skills as innovation will be a
key factor of success as will knowledge about international business and the myriad
cultures of the businesses around the globe.
Concerned over productivity
Operations managers are increasingly feeling the pressure to push employees to
work faster and better. The key questions that arise are: How can we get the
team “up to speed" and performing their duties quickly and successfully? How do we
ensure continued success after the initial training ends? How do we best engage
employees so that they remember the knowledge and skills learned during training
sessions and are able to apply it once they are back at their desks?
To address these questions, operations managers are turning to a new software
solution called Performance Support. As its name suggests, it is designed
for performance. The purpose of performance support is to deliver real-time
guidance and/or automation so that employees can accomplish their tasks more
quickly, with fewer errors, while on the job. Another advantage is that employees
don't have to stop for re-training every time something is new or changed.
Need to improve process quality
From keying errors to compliance issues, employee errors can come at a high cost to
an organization, especially if you consistently notice similar errors by multiple users. 
One way to prevent quality issues that stem from employee error is to use
technology.  Performance support prevents employee errors by adding a safety net
around possible pitfalls.  Using these systems, companies can easily add custom
validations to problematic processes and forms. When an employee enters
information into an application, the performance support software makes
calculations and checks the validity of the entered information. It will alert the
worker if there is an issue and suggest corrections or will automate the process.
Here is a real-world exampleof how a leading cable provider used performance
support to reduce (in some cases eliminate completely) keying errors resulting in
significant cost savings for the company.
Worried about customer satisfaction
Worrying about the customers is not only the sales department's job. Investigating
customer satisfaction and reporting any issues also falls on the shoulders' of
operations. But where do you start? Recent research suggests that no single KPI has
a bigger impact on customer satisfaction than First Call Resolution (FCR). In a study
of more than 150 call centers, the Service Quality Measurement Group (SQM) found
that for every 1% of improvement in the FCR there is a corresponding 1%
improvement in customer satisfaction. SQM also found that call centers that
achieved “world class” customer satisfaction ratings had a FCR average of 86%, while
centers that were not among the elite in customer satisfaction had a FCR average of
only 67%. Call centers with higher FCR rates also typically enjoyed lowered operating
costs and happier employees.
The key to improved FCR is providing your customer-facing employees with the
relevant information at the right time in a manner that allows them to focus on the
customer.  Performance support provides desktop automation and real-time
guidance that constantly monitors the agent's desktop activities and can be designed
to suggest support processes that are relevant to the user’s current open and active
application and window or automatically perform the action to complete the desired
task.
How to deploy a new enterprise-wide application
Although you are confident that the fancy new system you are deploying is merited
and necessary, an application rollout can be a nightmarish experience. Pitfalls lurk in
every corner but often involve things like loss of productivity during the training
period, management unable to provide the promised resources, key performance
indicators and deadlines being missed, and fearful employees refusing or unable to
adopt the new business applications. 
So what can you do to reduce the risk and ensure a successful application rollout and
employee adoption? Involving key personnel and stakeholders early in the process
will ensure informed decisions are made at key junctures. Open communication
channels, extra support during the transition and performance support for
employees will yield a better understanding, commitment, and faster adoption from
all people expected to use the software.
Buried under a mountain of reporting
Many operation managers are responsible for corporate reporting, including the
compilation of financial and performance data and the communication of this data
to stakeholders. Challenges arise when the business hasn't kept current or accurate
records. Comprehensive record keeping on P&L as well as sales goals and expenses is
necessary to assess the company's long-term viability.  On the flip side some
companies collect and report a vast amount of everything that is easy to measure
and as a consequence their managers end up drowning in data while thirsting for
insights. Effective operations managers understand the key performance indicators
of their business and distill them down into the critical KPIs. 
Unresolved conflicts between departments
Let's face it - sometimes the office resembles a school yard. You have different
groups, with varying agendas, who all think that they know best. Managing conflicts
or competing business practices within an organization is a major challenge for an
operations managers, who are often left feeling like a school principal. For instance,
a company's development team may frequently be in conflict with its marketing
team about various goals and decisions while marketing, in turn, in conflict with
finance.  These departmental clashes can have a detrimental effect on operations
when they impact the efficiency or productivity. Operation managers can end
competing practices by instituting company-wide standards and goals and
encouraging open communication.
Difficulty recruiting the right talent
Finding and keeping good people is not easy.  If in our previous analogy you were a
school principal, now you are the sports coach - motivating people through hard
times, training, educating, and managing diversity and cultural differences.  This can
be especially daunting during periods of change or growth in which companies
needed to hire in large numbers. A well-planned and well-executed onboarding
process will increase the chances for a positive work experience leading to a win-win
relationship between the new hire and your company.

CONCLUSION
As operations managers work in multidisciplinary environments, they must be aware of and
effectively respond to the challenges and by doing this, it calls for operations managers to
excel in the business, technical, and interpersonal aspects of their work as they actively
support the mission and vision of their organization

References

Adolph, S., Tisch, M. and Metternich, J. (2014), “Challenges and approaches to competency


development for future production”, presented at the 5th International Conference on
Education, Research and Development, Elenite, September 4–8, pp. 1001-1010.

Bartezzaghi, E., Cagliano, R., Canterino, F. and Longoni, A. (2017), “Organizing for smart


manufacturing”, presented at the XXVIII RSA AiIG Conference, Bari, October 19–20,
pp. 12-24.

Cantwell, J. and Janne, O. (1999), “Technological globalisation and innovative centres: the


role of corporate technological leadership and locational hierarchy1”, Research Policy,
Vol. 28 Nos 2-3, pp. 119-144.

Davies, R. (2015), “Industry 4.0: digitalisation for productivity and growth”, Briefing from


EPRS, European Parliamentary Research Service, Bruxelles.

Erol, S., Schumacher, A. and Sihn, W. (2016), “Strategic guidance towards Industry 4.0: a


three-stage process model”, International Conference on Competitive Manufacturing, Vol. 9,
pp. 495-501.

Flynn, B.B., Schroeder, R.G. and Flynn, E.J. (1999), “World class manufacturing: an


investigation of Hayes and Wheelwright’s foundation”, Journal of Operations Management,
Vol. 17 No. 3, pp. 249-269.
Gibson, C.B. and Birkinshaw, J. (2004), “The antecedents, consequences, and mediating role
of organizational ambidexterity”, Academy of Management Journal, Vol. 47 No. 2, pp. 209-
226.

You might also like