A report on operations planning and control of Reliance Market

CHAPTER1: INTRODUCTION

Operations management is the development and execution of business strategies that maximize
the flow of information and productivity. Consider the role of an operations manager on a factory
floor. It’s that person’s job to examine the materials, equipment, and workforce and determine
the exact process to deliver the company’s goods or services into the hands of its customers.

Operations management is very important in business operations since it forms the heart of the
organisation by controlling the system of operation. Operations management deals with the
design, operation, and improvement of the systems that create and deliver a firm’s primary
products and services. Like marketing and finance, operations management is a functional field
of business with clear management responsibilities. Reliance Market is a well-known book
retailer and news agent in INDIA.

In a business entity like Reliance Market the use of operations management is very necessary in
every fabric of the company’s activities. Reliance Market uses operations management to ensure
and sustain efficiency and effectiveness in the organisation. Efficiency in Reliance Market is
concerned with how well resources such as human expertise and inputs are put in use
irrespective of the purpose for which they were deployed in the company. The company through
its activities ensures that the primary objective for its establishment to make profits and
maximize shareholders value is realized. The company reduces its cost by cutting down the less
profitable projects. This is a situation where the company carries out effectively its objectives to
be the market leader using minimum resources to achieve maximum output. The measures of
effectiveness and efficiency in Reliance Market leads to productivity, yield, and capacity fill
working capital utilization and the efficiency of production systems.

Management Control and Coordinating Function cannot be forgone in operations management

especially in a company like Reliance Market. Management control and coordination includes a
broad range of activities to ensure that the company’s goals are consistently being met in an
effective and efficient fashion. Basically, organizational coordination and control is what the
company uses to take a systematic approach to figuring out if it is actually doing what it wanted
to be doing or not. Some of the major approaches to the company’s organizational control and
coordination include product evaluation, product distribution, advertising and promotion, sales
and service and product development.
CHAPTER2: ORGANIZING BUSINESS PROCESS

2.1: Importance of operations management in business

Concept of operations management

Operations management is concerned with converting materials and labor into goods and
services as efficiently as possible. Corporate operations management professionals try to balance
costs with revenue to maximize net operating profit. It represents the three components of
operations: inputs, transformation processes and outputs. Operations management involves the
systematic direction and control of the processes that transform resources (inputs) into finished
goods or services for customers or clients (outputs).

Operations management in terms of input, process and output

Input-process-output (IPO) is also called an IPO model or IPO diagram. It is a visual tool used to
describe a workflow, the flow of information, or activities within a system. An IPO diagram
helps you identify all the factors that influence a process and all the process’s outcomes, and it
gives you a structured approach to analyzing and improving the system. The IPO diagram
consists of three columns listing inputs on the left, describing the process in the middle, and then
tracking the outputs on the right. By diagramming a process in this way, almost any business
including computer science, systems analysis, and business analysis can better identify the cause
of a problem and improve a system’s performance.

 Input can include data, information, or resources that enter the system.
 Process can include activities, transformations, or operations performed on the inputs.
 Output can include results, products, or outcomes produced by the processes.

In manufacturing, a general, high-level IPO diagram might look something like this:
Least three importance of operations management in terms of efficiency and effectiveness.

Operations management provides the tools and knowledge to optimize processes, improve
efficiency, and deliver exceptional customer experiences. Additionally, organizations can
achieve operational excellence and sustainable success by embracing operations management
principles.

Operations management focuses on carefully managing the processes to produce and distribute
products and services. Major, overall activities often include product creation, development,
production and distribution. The process is strategic because it involves preparing the best way to
respond to the circumstances of the organization's environment, whether or not its circumstances
are known in advance; nonprofits often must respond to dynamic and even hostile environments.
A great deal of focus is on efficiency and effectiveness of processes.

Therefore, operations management often includes substantial measurement and analysis of

internal processes. On the other hand, strategic planning is a management tool that helps an
organization focus its energy, to ensure that members of the organization are working toward the
same goals, to assess and adjust the organization's direction in response to a changing
environment. It involves intentionally setting goals (i.e., choosing a desired future) and
developing an approach to achieving those goals. The process is disciplined in that it calls for a
certain order and pattern to keep it focused and productive. So, it can be said that both the
process are interrelated and contributes a lot to the company like Reliance Market.

2.2: Quality Objectives

The need to produce safely; on time; to cost; to quality and within the law in Reliance
Market

Need to produce safely:

The safety of the personnel should be given maximum priority. The efforts of the employees play
the most important role behind the success of an organization. So, ensuring their safety in order
to safeguard their right. It is also needed to be ensured that with the business operation nobody
else is affected.

Need to produce on time:

Reliance Market has earned reputation in own field throughout a decade. The customers want a
good service from them. To serve the customer efficiently and retain loyalty, Reliance Market
should adopt measures to serve the customers on time.

Need to produce to cost:

The key to success of Reliance Market is its cost effectiveness. It helps to save money by not
investing less profitable areas and creates opportunities to invest them in more resourceful
projects.

Need to produce to quality:

Quality of service is another factor behind the success of Reliance Market. In order to retain the
image and customer loyalty, Reliance Market has made no compromise with the quality and as
long as this practice continues the company will get going.

Need to produce within the law:

Any unlawful act by the company may cost incredible loss. This may make the company
financially looser and its goodwill will be ruined as well. That is why Reliance Market should
operate within the law.

Importance of producing according to Quality objectives

Quality objectives provide direction and focus to an organization by defining what needs to be
accomplished to meet its quality goals. Quality objectives help to clarify the priorities of the
organization, and they provide a roadmap for achieving these goals. Better products equal
happier customers and higher revenue. Customers who buy products from your company will be
expecting the same standard of quality each time they buy. Without a proper quality management
system, your customers could find themselves buying the same product, but with various
standards of quality.
CHAPTER 3: THREE E’S OF OPERATION MANAGEMENT

3.1: Operational Outcomes

Economy

Economy means doing things as cheaply as possible, avoiding spending more than is necessary.

By taking different measures, Reliance Market has cut down its unnecessary costs. It has given
up several less productive projects which save them a good amount of money. This has provided
economy to Reliance Market

Efficiency

Efficiency means doing things as smoothly as possible, eliminating processes and activities that
do not lead closer to the finished product.

Through proper management, Reliance Market has been achieving consisting growth is business.
By taking necessary and brave decisions, the company has reached that level. It can be
considered as its efficiency.

Effectiveness

Effectiveness means doing things as well as possible, making sure that the end result is a close
match to what the customer actually wants.

By taking different proactive decisions, Reliance Market has exceeded its competitors. Allowing
the opportunity to shop online and attracting customers by different promotional activities can be
considered as sign of effectiveness.
Importance of Economy, Efficiency & Effectiveness

To have an efficient economy, an entity often increases its productivity, reduces its waste and
decreases its inputs. This is important because it maximizes the total benefit of goods and
services in society, which helps people to be more productive.

Being effective able to produce a successful result, allowing you to provide greater value to
customers or clients. Highly effective employees continually have satisfactory results and
achieve company goals. Effectiveness may also include the ability to accomplish a task using
limited resources.

3.2: Cost Minimization and Quality Maximization

Cost minimization is the process of reducing expenditures on unnecessary or inefficient

processes. These changes in spending can be slight or drastic, but any level of reduction in costs
will likely have a dramatic effect on maximizing profits.

Quality Maximization is used to determine the quality standard that an individual, a firm, or an
organization tries to achieve such that they can supply a product or service according to the
specified guidelines.

In order to maximize profits, firms must minimize costs. Cost minimization simply implies that
firms are maximizing their productivity or using the lowest cost amount of inputs to produce a
specific output.

The tension between cost minimization and quality maximization at Reliance Market.

At the beginning of the earlier decade when Reliance Market was struggling to survive in the
business, minimization of cost had become very necessary. But minimizing cost in an unplanned
could have been very risky for the company. So, considering the need of economy, the
management took a proactive decision to cut down less growth oriented projects. This allowed
Reliance Market to save a significant amount of money without affecting its major profitable
businesses. By adopting various promotional activities and taking the risk of setting up stores at
various locations, the company had helped itself toward earning much more revenue. This
economic strength has helped Reliance Market in improving the quality.

Benefits of Cost Minimization & Quality Maximization:

Cost reduction has many potential benefits, including improved profitability, cash flow, and
competitiveness. When done correctly, cost reduction can also help improve quality and service
levels while still maintaining or improving bottom-line results.

Perhaps the most obvious benefit of reducing business expenses is that it can help to increase
profits. In a competitive marketplace, every little bit counts, and if a company can find ways to
reduce its costs, it will put it ahead of the competition.

In addition to increasing profits, cost reduction can help improve cash flow. Spending less
money on supplies and overhead leaves more money available to reinvest in the business or to
pay back debts. Improved cash flow can be a real boon for businesses, particularly during tough
economic times.

By minimizing expenses, businesses can keep their prices low and attractive to consumers.
Additionally, cost reduction can help improve profitability and make a company more
sustainable.

Quality Maximization helps to supports business leadership, promotes customer focus, improves
company culture and the bottom line, manages new innovations, and helps you understand any
issues. Good quality management can enhance your organisation's brand and reputation, protect
it against risks, increase its efficiency, boost its profits and reduce waste, and position it to keep
on growing.
CONCLUSION

Operation Management Business we discuss every firm needs to have a strong operations team
which implements all the processes and sorts out the issues which the firm as well as the
customers are facing. Operations team forms the backbone of the firm. Firm has a strategic team
at the top which thinks of what ideas to be implement, tactical team thinks how can be
implemented and the operational team actually implements those projects. Thus the firm need to
make strong operations team. If the operations team is not strong then the firm cannot implement
the ideas thought by the team. Also if there are any issues then the firm needs to have a strong
implementation team which resolves the issue else it can damage the reputation of the firm. Thus
it is the operational team which actually implements the process and hence the firm need to focus
on operations team quality and the Planning and Operation control else the firm will not be able
to sustain the growth and would not be able to compete with the competitors.
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