Professional Documents
Culture Documents
NABEEL AFZAL
STUD-2219
MBA-WALES
GROUP B
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Introduction
This book was worked out by my self Nabeel Afzal with the help
of my lecturer Mrs. Areeba Zafar through out the session in the
light of her notes and assistance and guidance provided.
He also tried to impose the new tools and functions like B.P.R,
Benchmarking, Jidoka and other to deal with the failing
situations and planning and implementing processes to
improve the quality of product and services.
Contents
Identify and explain the role and importance of effective
operations management
page 4
Bibliography
page 18
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These factors are important in any organisations growth. This is the core of the
organisation and it manages the flow of resource. Operations management can
be applied to a wider range of organisations, companies, institutions government
authorities. One context of operation/ management can be transferred to
another.
type of engine, because it was not fuel economical as compare to Honda engine,
its shape was old designed, and its price was higher than of Honda. Another
main thing was its availability, customers had to wait for 4 months to get Toyota,
and on the other hand, Honda new designed engine with new shape was
available in 1 month. Added to this there was a cost for the freight (carriage)
amount of 10,000 for Toyota, while Honda was not charging any amount to
promote its product.
While on the other hand Honda made its good business in new engines. Because
they managed to launch their product before introducing it. They import a very
measurable amount of new engines in the start, then they advertised it properly,
its price was cheaper than of other vehicles in its kind, fuel economy was better,
availability was quick & time saving, so customers and other distributors were
satisfied with it. This example explains us that how much important is the
operations management in any organisation to achieve its goals and objectives.
What role it plays in any type of business.
Implementer: these are the duty managers or those managers who are involved
with both directors and co workers. In actual they are middle man. They are a
part of strategic meetings, some time they make strategies or some time they
just follow the instructions of their directors and convey or direct other low level
staff to work on these instructions.
Supporter: most of the time these are co workers , supervisors, labour and some
of the suppliers associated to your business who follows your planning’s or help
to implement them.
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Driver: these are the main strategic authorities like directors, executives and
head managers, or in some cases these are distributors who affect your
business.
We can also state them as outcomes of our inputs. These outputs can take
multiple years to achieve, so an organisation need to set an annual, quarter or
operational objectives that comes within a calendar year, fiscal year or an
operational cycle. They are often a combination of revenue, profit, market share
or skills.
When objectives are defined, employees will identify their duties, targets and
sub goals to achieve larger objectives. Every organisation needs t o set clear
understanding of the capabilities of the organisation, to grow into the challenges,
focus on the processes, people infrastructure and adapt to changes in
environment, competition and economic factors.
But an organisation must look some of the factors before setting any objectives
any objectives which will be the basic strategy of o objectives. An organisation
should understand the core competencies, competitive advantages, current and
projected influence, situation of resources and operations, possibilities,
probabilities, and capabilities. What happened in the past within similar
situations, what need to change or remain as same. Organisation should also
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Honda decided to make a car as they heard of Toyota’s new engine. So they set
some primary objectives to create a car like...
• Will be of new & different shape, and set the image of the company as a
trend setter.
• Will be of good quality engine, which will be cost effective & fuel saving.
• Will improve the image and standards of company by its massive sale &
market demand and improve status of Honda as the market leader, where
already companies like Toyota and Suzuki had captured the top positions.
So they made a car with a lower power engine 1.6 litre V-tech, to compare
Toyota and to gain the company image and satisfactions of customers and
distributors (stakeholders), which developed the skills of staff at the same time.
This V-tech model has so many differences from Toyota VVT-I model, which
made this V-tech more compelling & appealing car than of Toyota, and increased
sale of Honda. Honda car has 7 new colour schemes, 6 CD changer stereo
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systems, luxurious drive as compare to Toyota, powerful AC, and tyres with alloy
rims while Toyota was without alloy rims, interior was better & new designed as
compare to Toyota. Honda also gave relaxation to its stake holders by delivering
vehicle in time, by cutting the cost of vehicle and cargo charges, by giving good
incentive to its employees. Overall Honda planned very well to achieve its
objectives; they looked the environmental changes according to surroundings &
competitive advantages. And made objectives maintaining five factors of
objectives such as Quality, Speed (delivery in time), Dependability (availability),
Flexibility and Cost.
But on the other hand Toyota missed all of these things, and neglected the effect
of these key features & specifications.
So this example tells us about the strategic objectives play an important role in
any organisation’s development. These objectives should be set in the light of
the above stated factors to get the maximum benefits.
The company was incorporated on November --, 1992 and joint venture
agreement was signed on August ---, 1993. The ground breaking ceremony was
held on April 17, 1993 and within a record time of 11 months, construction and
erection of machinery was completed. The first car rolled off the assembly line
on May 26, 1994.The Company is listed on Karachi, Lahore and Islamabad Stock
Exchanges.
On July 14, 1994, car bookings started at six dealerships in Karachi, Lahore, and
Islamabad. Since then the Dealerships Network has expanded and now the
company has sixteen 3S (Sales, Service and Spare Parts) and thirty 2S (Service
and Spare Parts) Pit stops network in all major cities of Pakistan.
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Since the commencement of production in 1994, the company has produced and
sold more than 150,000 cars till Oct, 2008.
Primary objective was to become the leading group in Pakistan in the field of
automobiles, motorcycles and other electronic parts and grow the business in
this region. Percentage of local parts conforms to the government's policy. Hire
Local vendors to continuously patronize in developing parts locally. The quality of
local parts is thoroughly checked to meet stringent international standards.
Honda Motor Co., Ltd. operates under the basic principles of "Respect for the
Individual" and "The Three Joys" — commonly expressed as The Joy of Buying,
The Joy of Selling and The Joy of Creating. "Respect for the Individual" reflects
our desire to respect the unique character and ability of each individual person,
trusting each other as equal partners in order to do our best in every situation.
Based on this, "The Three Joys" expresses our belief and desire that each person
working in, or coming into contact with our company, directly or through or
products, should share a sense of joy through that experience.
In line with these basic principles, since its establishment in 1948, Honda has
remained on the leading edge by creating new value and providing products of
the highest quality at a reasonable price, for worldwide customer satisfaction. In
addition, the Company has conducted its activities with a commitment to
protecting the environment and enhancing safety in a mobile society.
As we see the example of Honda success and Toyota failure we can easily
evaluate the role of operational objects in maintaining organisational objectives.
We know that operational objects like...
Quality: Do the things right without mistakes, error free goods and customer
services. Honda waited for Toyota’s product and examined their mistakes,
developed themselves few steps ahead of Toyota and provided good & enhanced
quality of stereo, speedometer was 20 Km higher than of Toyota, instead of rims
they provided alloy rims, they changed the interior of the car and made it
according to new values. These things really improved the quality of the car,
while Toyota missed all of these.
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Dependability: providing the things on time without making any delay, because
your customer depends on your service you are responsible to provide him
goods. And you have to make customer rely on you, instead of other
organisation. Again because Toyota was delaying its customers in availability of
vehicle so they started losing their dependability. Even they were delaying
vehicle more than 6 months. But Honda was keeping its promise of delivering
vehicle within 1 month. So many customers and dealers diverted to Honda.
If we look little deeper into this example and compare it to company’s basic
objectives, we can say this particular car became an operational objective for
Honda at that moment to defeat Toyota model and developed Honda’s image as
the innovative, creative and flexible company in automobiles. While on the other
hand there are other products by Honda are also playing an important role as
operation objective in maximizing its sale, value in market, increasing
stakeholders, stepping towards top position as a group of companies, producing
a wide range of equipments while satisfying its stakeholders, improving services
and help meeting its primary organisational objectives.
It is a collection of related, structured activities produce a specific service or product for a particular
customer or customers.
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Resources of a business
Now we look into, how a business process system should be. This can be easily
understood by dividing systems into further categories.
Supportive system: These are the systems which obtains the inputs and
dispose of the outputs of the production subsystem.
Adaptive systems: They deal with the issues of change in the environment,
e.g. as in marketing, research development etc.
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Auditing system: These are the system to find the facts regarding the business
process, e.g. the auditing of quality systems.
Now we will learn which are the different methods used to do quality audit
system in general.
• Quality audit and review examines each and every subject of area
critically and the component of total system is included for quality policy,
attitude, training, processes, decision features, operating procedure.
Documentation audit and review help us to understand the weakness of the main
areas of risk and helps us in improvement.
potential for mal operation or mal function of equipment and the consequential
effects of quality.
But only doing the quality audit system won’t help the organization to get to its
quality objective to reach a specific standard of the organization they should try
and maintain the quality level on regular basis quality check should be done
every week to ensure things are going smoothly in organization. There should be
internal and external audit check to maintain the standard of quality. Third party
check will give the company confidence they are really good at quality and even
the standard will be high if they are awarded by bodies like ISO: 9000, charters
mark, Malcolm Baldridge , EFQH, IIR.
Ans. First we need to understand what quality culture is and why it is embed in
organization.
The term quality culture according to me means that the organization should
establish and then implement and maintain the quality culture and to ensure it
continuous improvement. Meeting the requirement with certain characteristic is
quality.
Most of the organization often believes that changing the formal organizational
structure
Having ‘culture change’ programmers and new payment system will themselves
make the transformation in any organization. The key to success of quality
culture area is to align the employees of the business to their role and
responsibilities with the organization and its process. Quality culture is new thing
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in some of the organization because most of the organizations are into formal
rule and perhaps it is first time try for the organization and they think they need
a change in an organization to improve its communication. But not all mangers
are very successful in understanding the quality culture so they need to
understand the need to change and how to deal with the competitiveness but
still some of them lack how the changes should be implemented.
Now we will also see why it is require to ensure continues monitoring and
development of this process continuous or never ending is the most powerful
concept in guide management. The organization who lacks to understand it
won’t survive in the market so they need to adapt the changes if they want to be
in the long run in the business.
Ans. We see that poor planning leads to poor performance in the matter of
Toyota Indus motor co ltd (PAK) as they were making a lot of mistakes like longer
delivery time period than of their competitors. This longer time period was a
result of poor management and overall performance which could be reduced by
proper planning and implementing the new techniques of improvement like
SWOT analyses, Benchmarking, Business process review, reflection, Brain
storming, staff involvement, JIDOKA and eliminating of waste. Without proper
planning a number of problems can rise like not defining operational
performance, not relating performance to process, boundaries of process are not
defined, measure and misused wrong things, fear of exposing good and poor
performance, seeing planning as extra burden and fear of new tighter
management controls. Before planning we need to do an internal audit about the
ongoing processes and the achievements by these methods. Then we plan for
new things to bring some changes to improve week areas or departments to
improve overall situation. At first we need to see what planning is, that is
identifying purpose of conducting measurement, i.e. is it for ; reporting,
controlling, improving, choosing the right balance between individual and group
processes. It is about to measure all the key elements of performance, time,
cost, and product availability and quality improvements, ensuring this will reflect
the voice of internal/external customers. Planning also allows time for learning
processes during the introduction of a new measurement system. Then we
further start implementing the new ideas and tools to improve the situation like
giving time to mould the system and full participation by each department,
carrying out cost /benefit analysis on the data generation and measurement
system should widely spread through all areas of business operations. As we see
in case of Toyota (PAK) at first we identified the area for improvement which was
manufacturing and technical assistant along with management. Then we started
planning how to reduce the area of mistakes and improve the overall situation in
different processes especially manufacturing. We planned to cut the human
errors and mistakes, train the staff to increase their skills and speed of work
providing them best assistance in technical matters. They also planned to
improve their management and operation processes like authorising the overall
reporting and increasing relation & communication among managers and staff
reducing any delays in delivery from factory to depot and then to authorised
P a g e | 20
dealership. They implement all the business techniques like BPR and
Benchmarking to help improve the situation failing Toyota and reducing
misconception of longer delivery time period to customers. These planning and
their implementation indeed helped Toyota (PAK) to improve the skills of the
staff, reducing manufacturing time period which further reduced the delivery
time from 7 moths to 4 or 1 month depending on the type of the vehicle. It also
helped them to maintain the top position in the market as most selling car
manufacturer, and to maintain the communication and building good relation
among management and labour class. It also helped them reducing the black
money of the vehicle and making better the availability all the time. These steps
also helped them identifying the areas for improvement so that they can
entertain maximum number of customers by satisfying their needs. They also
come to know about the actual operations and processes to be reviewed and
make them their every day process to improve the business and staff
performance.
Bibliography:
Reference: www.toyota_indus.com.pk
Reference: Help taken from notes and Honda Atlas Pak website
http://www.honda.com.pk/pakistan/index.html
Source:
http://en.wikipedia.org/wiki/Business_process_management