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Unit 25 principles of operation management is a significant unit of the HND business curriculum according to the Pearson set. The main focus of this unit is on the significant practices and concepts that are crucial for effective business operations management. The operations management includes the organisation, supervision and planning of the production of services and goods to certify the quality and efficiency. This unit focuses on the significance of the operation phenomena with the goals of the organisation to address the competitive bad effects. The process design, planning of capacity, quality control and inventory management. The students will acquire the way to improve and analyse the performance of operation by theories application such as JIT “just in time”, TQM “total quality management”, and lean production. These all principles assist the business to optimise resources, reduce waste, and provide value to the customers.

The unit also identifies the character of the innovation and technology in the modern management of the operations. With the increase in artificial intelligence, data analytics and automation, the business may streamline the process and generate data driving decisions. Students will get the introduction to the tools, such as the supply chain management software, ERP, “enterprise resource planning”. These things will improve the efficiency and coordination throughout the departments. In addition, the unit also highlights the sustainability significance in the operations. It also assists the business to adopt the practices which are eco-friendly and minimise the impact on the environment. By having sustainable practices, the organisation may meet the requirements of the Regulation and improve the reputation with long-term success contribution.

In the end, the unit 25 has a focus on the importance of effective teamwork and leadership in the management of operations. The managers should have strong problem solving and communication skills to coordinate identification of operational challenges and diverse teams. This unit also motivates the learners to generate a strategic mindset.  It will assist them to anticipate the operations accordingly and market trends. The real-world examples and case studies are used to illustrate the way through which organisations can implement the operations with the principal management successfully. The students will also increase their comprehensive recognition of the way in which operation efficiency generates the success in business and equip themselves with the potential to apply these principles in the context of their profession.

Unit Objectives

The main objectives of unit 25 principles of operation management, are demonstrated below according to the business HND.

  • To generate expensive recognition of the significant theories, practices and principles included in planning, management and designing of the operation process efficiently.
  • To make learners equipped with the skills to identify and improve the performance of operations, emphasizing reduction in waste, high quality standard maintenance and resource optimisation.
  • To highlight the technological Innovation and automation role in the modern management of operations. To enable the business for process streamlining and making data-driven decisions.
  • To focus on the sustainable practices` significance and efficient leadership in the operation management. To certify long term adaptability and success in the business environment dynamics.

Learning Outcomes

The learning outcomes of unit 25, the principles of operation management, according to Pearson set in HND Business are given below:

LO1: Demonstrate understanding of the impact of the business environment on operations.

  • Overview of operation management:
  • What does operation management mean?
  • What are the advantages of operation management?
  • The activities and role of the operation management (tactical, operational and strategic)
  • The environment of business
  • External impact on contemporary management of operations
  • Optimising PESTLE to identify the external environment, factors including global, ethical and cultural relations influence on the business environment.
  • The way through which corporate social responsibility impacts the operational management and the way through which operation managers respond.
  • Utilising the internal environment through SWOT analysis, consider the constant of operation placed to the strategy of business, a physical resources budget, human resources available and financial position.
  • Technological influence
  • The influence of innovative technology on the systems of operation management, and the process, the advantages of technology for improvement in management flow sustainability and efficiency.
  • The digital technology applications to manufacturing, distributing and designing the systems to service and product worldwide.
  • Considered the systems of software: ERP “enterprise resource planning system”, SCM “supply chain management”, NPD “new product development”, and CRM “Customer Relationship Management”.
  • Influence of environmental factors of operation:
  • How are external and internal environmental factors related?
  • How can these influences on the operations in a situation or context?
  • Creation value:
  • How does it define various organisations in the private non-profit and public sectors?

LO2: Demonstrate understanding of the purpose of operations in support of organisational strategy.

  • Operational functions:
  • The significant functions of operations and the ways through which they are related to their business functions.
  • Process of transformation with operations, operations strategy context and performance of operations.
  • Process of transformation:
  • Model of transformation: output process, input transformation.
  • Performance of operation
  • Reasons which make operations performance significant
  • Considering multiple variables of performance including speed, flexibility, cost and dependability.
  • Generating benchmarking and measures of performance
  • Strategy:
  • The various categories of planning such as strategic, tactical, and operation and the with through which they have the function which support all these.
  • The operation of the strategy process
  • The bottom up and top-down approaches and perspective
  • Systems of control
  • The control nature and planning
  • Operation variable significant management: defining capability and capacity, capacity and demand reconciling, service quality.
  • Various categories of the systems of control to include control and capacity planning, control and supply chain planning with inventory planning and control.
  • Supply chain
  • The way through which these operations can interact with the supply chain
  • The way through which operations and supply chain influence each other
  • Categories of the relationship in supply chain
  • Systems quality
  • Concept of quality and its significance
  • Selecting the accurate system, including 6 sigma, TQM, or Lean.
  • Chain value
  • The reason through which the value can be added at every operational function stage
  • Recognising and identifying the analysis of the value chain.

LO3: Determine the appropriate allocation of resources for operations management.

  • Strategies of resource management:
  • Certifying the resource in the accurate place at the accurate time and in accurate quantity.
  • Utilise in the various approaches such as resource allocation, planning and resources emphasized on reviews.
  • Supply management:
  • Selection of an accurate supplier to meet the goals of operations.
  • Considering or buying decision
  • Reduction in cost through the technical use, such as just-in-time
  • 7S models of McKinsey
  • A holistic approach to utilise the activities coordination for supporting operations.
  • Application of the context model
  • Analysis of the cost Plan effect
  • Utilising and as a concept technique in practice.
  • VRIO framework:
  • Capturing the organisation value
  • Utilising the framework to generate a competitive benefit.

LO4: Conduct a strategic risk analysis (SRA) on the operations functions of an organisation.

  • Risk management and analysis:
  • Conducting the risk analysis at the strategic, tactical, and operational level.
  • Utilising the benchmark and the standards of risk management.
  • Potential threats and uncertainty management
  • Utilising the identification of risk and mapping the support for the risk assessment.
  • Expectations and stakeholder analysis
  • The relationship between risk and stakeholders, especially suppliers, customers and investors.

Assessment Criteria

The assessment criteria have a strong association with the learning outcomes of unit 25 principles of operation management.

LO1: Demonstrate understanding of the impact of the business environment on operations.

  • 1.1 Explain how external and internal factors of the business environment impact upon operations.
  • 1.2 Consider how operations are influenced by corporate responsibility and how operations managers respond.
  • 1.3 Conduct a valid external and internal environmental analysis of the business environment for an organisation.
  • 1.4  Produce a critical analysis of external and internal factors that affect the performance of an organisation.
  • 1.5 Critically evaluate the application of appropriate operations management tools to inform justified recommendations in response to organisational environmental analysis.

LO2: Demonstrate understanding of the purpose of operations in support of organisational strategy.

  • 2.1 Explain how operations functions support organisational strategy and decision-making.
  • 2.2 Explain different types of control and planning methods in application to different organisational examples.
  • 2.3 Evaluate quality systems and how operations management can add value throughout the supply chain.
  • 2.4 Critically evaluate the efficiency of different operations management methods used to support organisational strategy.

LO3: Determine the appropriate allocation of resources for operations management.

  • 3.1 Prepare a resource allocation plan to meet specific operational requirements for an organisation.
  • 3.2 Assess and apply the most appropriate strategies in support of the resource allocation plan.
  • 3.3 Examine the advantages and disadvantages of different resource management strategies in terms of improving work flow and outputs.

LO4: Conduct a strategic risk analysis (SRA) on the operations functions of an organisation.

  • 4.1 Devise and carry out an SRA of an organisation using risk identification and mapping.
  • 4.2 Develop contingency plans and strategies to minimise the risks highlighted in the SRA.
  • 4.3 Provide valid justifications for recommended strategies at an operational, tactical and strategic level.

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