Introduction
Operations management refers to a technique of management which concern with developing and maintaining process of manufacturing or production and design operations and function of producing products and services. Along with this it will ensure that operations and functions of business process is conducting in effective and appropriate manner. Organization which is taken for this assignment is Vodafone which is founded in year 1991 and its headquarter is in London, United Kingdom. They mainly provide telecommunication services in United Kingdom and across the world. Products and Services which is provided by respective company are telecommunications, mobile phone, digital television and internet service provider, it partner group is Vodafone group plc. This report contain topics like brief introduction and evaluation of company and its operations, products and services design. Along with this, it include process which is adopted by this company, planning for capacity and inventory, supply chain planning, quality of operations and feedback regarding this.
TASK 1
1. Describe About Company, its History, Basic Organizational and Financial Data, the Market in Which the Company Operates
Vodafone is a world's second largest company who operates its business in telecommunication industry. It is established in the year 1991 by Ernest Harrison and Gerry Whent and headquartered in London, United Kingdom. It serves a range of products and services like telecommunications, Internet services provider, Mobile phone, Digital television and many more. They are mainly operates in 25 countries and its other sector of telecommunication and IT services in covering 150 countries. Evolution of Vodafone is started in year 1982 along with the establishment of Racal Strategic Radio Ltd which is subsidiary of Racal Electronics. This is considered as the largest market of military radio, technology of United kingdom. It also forms a joint venture along with Millicom which is know as 'Racal' and now a days it is know as Vodafone. Along with this they are considers as world second largest and fastest growing company at world wide level.
Basic organizational and financial data of Vodafone:-
|
Cash flow |
|
|
|
Period ending |
31/3/2018 |
31/3/2017 |
|
Net income |
24,39,000 |
-62,97,000 |
|
Operating activities, cash flow provided by or used in |
|
|
|
Depreciation |
83,04,000 |
89,80,000 |
|
Adjustments to net income |
16,10,000 |
94,82,000 |
|
Changes in accounts receivable |
-11,18,000 |
3,08,000 |
|
Changes in liabilities |
2,86,000 |
-4,73,000 |
|
Changes in inventory |
-26000 |
1,17,000 |
|
Changes in other operating activities |
-0 |
-0 |
|
Total cash flow from operating activities |
1,36,00,000 |
1,42,23,000 |
|
Investment activities, cash flow provided by or used in |
|
|
|
Capital expenditure |
-49,17,000 |
-62,85,000 |
|
Investments |
-25,69,000 |
18,81,000 |
|
Other cash flow from investment activities |
6,20,000 |
-14,60,000 |
|
Total cash flow from investment activities |
-98,41,000 |
-84,23,000 |
|
Financing activities, cash flow provided by or used in |
|
|
|
Dividends paid |
-39,20,000 |
-37,14,000 |
|
Sale purchase of stock |
-0 |
-0 |
|
Net borrowings |
-7,58,000 |
-6,48,000 |
|
Other cash flow from financing activities |
-8,10,000 |
-47,59,000 |
|
Total cash flow from financing activities |
-72,34,000 |
-90,96,000 |
|
Effect of exchange rate changes |
-4,33,000 |
-3,13,000 |
|
Change in cash and cash equivalents |
-39,08,000 |
-36,09,000 |
Market in Which Company Operates:-
They operates there business functions and operations in world wide market such as Egypt, Kuwait, South Africa, Ghana, Qatar, Libya, America, Brazil, United State, India, Austria and many more.
Relation with Company and Reason Behind Selecting Company:-
For evaluation and analysing operations and function of Vodafone in effective and appropriate manner a Project and operations Manager is assigned. Researcher select this company because respective company operating its business in worldwide market. This would help in analysing the importance of operations management in running business successfully at global level.
2. (a) Analyse Vodafone operations
Vodafone helps organizations in making their businesses digitalised by connecting people, things and places in easy manner. With expertise in connectivity, its leading IoT platform deliver effective result to a company for its progress and thrive. Its operational activities are classified in three major components as- Mobile communications, Fixed communications and Unified Communications. Difference among these operations can be described by using Slack et. al operations management model:-
Box1: Continually examine and improve operational practice
Box2: Monitor and enhance quality of service to customers
Box3: Provide best data services in terms of coverage, speed and capability
Box4: Provide fastest internet services
Box5: Instant respond to customer problems
Box6: Develop mobile tariff plans and unlimited services as well as offer flexible working to employees
Box7: Create innovation in services and add more features in mobile phones and speed connectivity in terms of fixed and unified communications.
(b) Key Performance Indicators for Vodafone Operations
High level of network i.e. forthcoming smartphone portfolio on Vodafone, powered with Google Nexus One Paired with AdMob mobile advertising platform and increasing speed of mobile data connectivity, are some key performance indicators of operational management of Vodafone. It could threaten the viability of other telecommunication companies over next few years.
(c) KPIs of Vodafone on the basis of internal and external customers
KPIs are considered as set of metrics which regularly access the health of each activity of business, against its strategic and operational activities. In context with Vodafone, currently more than 103,564 workers are working in its worldwide business. Through continuous innovations by adapting new technologies and geographic diversity, it allows customers to stay in connection with people around the globe. This would enhance its customer base more rapidly and having near about 341 million consumers till now.
3. (a) Current Products and Related Services of Vodafone
Vodafone offer a range of products and services to customers for enhancing its base and generate high revenue. For creating innovation it mostly emphasis on increasing access to data services, including e-mail, internet, music, 3-D games and television. Currently, in order to gain high competitive advantage, it has launched a 21Mbps USB stick, named by Vodafone Mobile K4203-Z, in European market. This idea of product design has originally come from rethinking the new product process, which assist to deliver sustainable differentiation. As people wants to get high speed mobile broadband therefore, given USB includes high innovative, attractive and compact design features.
(b) Organization structure of Vodafone
Vodafone has adopted a new organizational structure in 2010, in order to make improvement in delivery of strategic goals of business. It is designed to focus on key commercial and financial priorities by enhancing the customer and commercial strengths, brand advocacy, shareholder returns and cost efficiencies. The reason behind changes in existing organizational structure is to reduce layers and simplify the managerial governance (Vodafone Announces New Organisational Structure, 2019). Here, accountability related to operating companies can be integrate into two operating regions via- Europe, Africa, Middle East and Asia Pacific. In this regard, The Group CEO, Director of Strategy & Business Development and CFO are responsible to implement effective strategies, for maximising shareholder value through investments. Along with this, Group Marketing, Vodafone Global Enterprise, Vodafone Business Services, Partners including other commercial units, are also brought into this organizational structure.
4.(a) Transforming processes of Vodafone operation with evaluation criteria feasibility, acceptability and vulnerability
Having half of a billion subscribers around the world, Vodafone has become the second largest telecommunication company. Its business transformation process of based on 'Evolution Vodafone' which includes a state of art and seven-year project (Vodafone Turns Up the Volume on Business Transformation, 2014). It emphasis on transforming global business operation of respective company to compete with demand of 21st century. This projects includes the challenges with requirement to transform entire back office process as well as network access in more than 65 countries. This would have created a pathway for business transformation in effective manner, that leads Vodafone to win gold medal as SAP EMEA Quality Awards in 2010.
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(b) Describe the process type(s) in operation
'Evolution Vodafone' includes a state of 7-year business transformation project which enables Vodafone in competing with new trends of marketplace, in communication sector. This operational project of transformation including entire important planning and design phase, which requires for implementing innovation in products or services. For unified communication services, this project of Vodafone is based on Future State Operating Model (FSOM), which includes a set of standardised process of business across its various networks.
(c) Layout and flow: which layout type(s) are in use in the operation
For transformation process of business operation which is based on 'Evolution Vodafone' project, Vodafone has used both repetitive and cell layout process, as per business requirement. Here, repetitive process layout is perfected suited to drive out non-value added activities as well as transitioning to a JIT environment. While, cell layout helps in promoting JIT (Just-in-Time) goals through featuring high visibility, unidirectional product flows and fast throughput times. Objectives related to flow of operations are:-
- Inherent safety: Entire process which constitute danger must not be accessible to unauthorised.
- Length of flow: Flow of materials and information must be appropriate.
- Clarity of flow: All flow of materials must be well signposted
- Staff condition: Provide flexibility in working hours
- Management coordination: Communication system should be better between managers and workers
- Accessibility: All machines should be accessible for maintenance and proper cleaning
- Use of space: Layout use should space in appropriate manner
- Long term flexibility: Layouts must be changed periodically
(d) How does this process design aid to optimizing the performance of this operation
By using cell layout process within transformation process, workers tend to have a greater sense of ownership. By providing more information about view of product and how to develop the same by transforming raw materials into finished products. This would help Vodafone in getting more contribution of workers for implementing the concept of FSOM, in delivering the global unified telecommunication.
5. (a) How Capacity and Inventory Planning and Control operation forecasts the customer demand
Production and inventory planning is mainly focused on actual production, where it looks on entire operations by considering as a whole. It aims to minimise production time by determining the most efficient start and end procedures for completing each activity. Similarly, supply chain scheduling which is a main component of production planning system, helps Vodafone in synchronising its material costs. Here, the prime objective of such planning is to ensure the satisfaction of customers, by creating a cost efficient production system. While capacity management refers to achieve the maximum level of value added activity within a specific period of time. Therefore, through planning and controlling capacity, managers of Vodafone can take decisions to device capacity plans for meeting demand of customers.
(b) Describe the main capacity limiting factors
6. (a) Supply chain network
Supply chain process is an holistic approach used for managing companies boundaries across the world. As Vodafone operate business in many countries therefore, to satisfy demand of end customers is the major objective of supply chain management. For this purpose, Vodafone consider the five main operations of performance objectives that are Quality, Speed, Dependability, Flexibility and Cost. All these processes are done by coordinating entire operations on supply and demand side. For this purpose, respective company has implemented the purchasing, internet and e-procurement process
(b) Describe which design decisions were of biggest importance in taking this place in the network
7. Which are main ‘Quality characteristics’ for Operation’s products and services
8. How does operation get quality feedback from the customers
9. How does operation do internal quality control in their transforming processes
10. (a) Which mechanism is used to continuously improve process and products/services quality
(b) Describe approaches operation is taking to improve their ‘Lean-ness’
References
- Hitt, M. A., Xu, K. and Carnes, C. M., 2016. Resource based theory in operations management research. Journal of Operations Management. 41. pp.77-94.
- Bromiley, P. and Rau, D., 2016. Operations management and the resource based view: Another view. Journal of Operations Management. 41. pp.95-106.
- Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and practice for strategic impact. Pearson UK.
- Swink, M. and et. al., 2017. Managing operations across the supply chain. New York, NY: McGraw-Hill Education.
- Fredendall, L. D. and Hill, E., 2016. Basics of supply chain management. CRC Press.
- Hill, A. and Hill, T., 2017. Essential operations management. Macmillan International Higher Education.
- Hitt, M. A., Carnes, C. M. and Xu, K., 2016. A current view of resource based theory in operations management: A response to Bromiley and Rau. Journal of Operations Management. 41(10). pp.107-109.
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