(WRIT1 - Coursewor) Operations management assignment critically analysing issues faced by Dhofar Power Company
Task: Critically evaluate the existing operations functions within the organisation and the role of the operations manager within the organisation. Collate all your findings from the operations management assignmentabout the organisation and draw concrete conclusions and draw some recommendations for the organisation.
Introduction to the operations management assignment
Operation management refers to the business administration practice which provides a high level of possible efficiency through integration within an organisation. Moreover, operation management within an organisation aims to convert materials and labour into goods and services to maximise the profit through strategic and tactical approaches. In order to develop greater understanding about the details of operational management Dhofar Power Company (DPC) S.A.O.Chas been chosen for this operations management assignment. At the time of analysing the background of the chosen company it has been identified that the corporate vision and mission is to increase customer satisfaction, cost efficiency through reliable power (Dpcoman.com, 2022). Environmental protection and people's support achievement is another key goal of this firm to meet the expected customer satisfaction growth level in the next five year which is 4.9% (Dpcoman.com, 2022). Moreover, DPC is focusing on different operational areas to improve the customer satisfaction rate in the next five years and especially focusing on improving integrity, respect, customer focused and professionalism. Insumession, DPC aims to deliver reliable, safe and efficient electricity service to their customer and stakeholders in order to create value (Dpcoman.com, 2022). This finding of the operations management assignmentsignifies that Dhofar Power Company keeps their commitments and promises while seeking and providing honest feedback from stakeholders and customers which is possible because of the dynamic management structure. Moreover, this operations management assignmentis critically evaluating the existing operational functions within DPC and role of operation manager in it. Additionally, this operations management assignmentis shading light how well and bad DPC is aligned with industrial standards. Followed by this, discussion about the process management and process chart of the DPC has presented. This operations management assignmentwell then evaluated lean process implementation and its beneficial impact on the company. Plan for achieving operational excellence through process analysis, customer service strategy, inventory management, supplier management has also been outlined based on the literary evidence. In the latter half of the operations management assignment, capacity planning of DPC company and recommendation for the development was presented. Finally, part C of this operations management assignmenthas highlighted the conclusion of key findings and recommendations forDhofar Power Company.
Task: Part A of the operations management assignment
i) Critically evaluating existing operations functions within Dhofar Power Company S.A.O.C in the operations management assignment
Dhofar Power Company of SAOC is serving their customers by delivering safe and reliable electricity. One of the key strengths of the DPC Companyas per the operations management assignmentis its distribution network which consists of 44 primary substations which includes transformer, switchgear, capacitor bank and other ancillary equipment (Dpcoman.com, 2022). This is clearly demonstrating in the operations management assignmentthat an efficient distribution network helps the authority to keep commitments and promises by presenting the truth. Additionally, 33kV and 11kV overhead lines and underground cable circuits connect all substations of DPC and distribute reliable electricity to each stakeholder (Dpcoman.com, 2022). Beside this, 11/145 kV distribution substations include isolators and lightning arresters which help their authority to maintain operational excellence while providing safe electricity to each consumer (Apsr.om, 2020). Similarly, pole mountain transformers (PMTs) play a crucial role to manage the flow of electricity and electric current and to convert distribution voltage. Moreover, operations management assignmentis signifying that PMTs are involved in converting distribution voltage and enabling DPC to serve home electricity users and low volume commercial installations. More to the context, DPC has been privatised upto 70% by the year 2020 which has been marked as another successful year for DPC in terms of financial and operational performance (Apsr.om, 2020).Another operations management assignmenthas outlined that, analyting underpinning of management decisions, giving a structured way of operation to the DPC and assisting the authority to prioritise projects accordingly (Hanaysha and Alzoub, 2022).
Role of operation manager
Needless to sayin this operations management assignmentthat progress and development of an electricity service provider company depends on the excellent capability of the operational team and operational manager. Studies have mentioned that the role of an operational manager is to help the team to operate under tremendous guidance with inherent value of hard work (Aruruet al. 2021). Moreover, an operational manager is responsible to supervise operational activities at each level through strategic process improvement. Beside this, the operational manager of the electrical division as per the operations management assignmentis responsible for the development of business by ensuring timely project performance while not compromising with the quality requirements. In the case of DPC it has been evident that the operational manager timely upgrades infrastructure and enhances the scope of investment opportunities in different geographical areas (Ralston and Blackhurst, 2020).
For instance, the energy sector of Oman is delivering consistent electricity across six strategic focus areas which include customer experience, service reliability, cost efficiency, experience and high HSE along with communication with stakeholders and HR development (Dpcoman.com, 2022).
Evaluating how well or bad the Dhofar Power Company S.A.O.C is align with the Industry standards Association of industrial standards with the operational process helps companies to cut down legal liabilities, costs of operation and assists to anticipate technical requirements to improve productivity and innovative efficiency (Hadil and Udin, 2020). Evaluating the annual report of the Dhofar Power Companyin the operations management assignmentit has been identified that the authority is empowering tomorrow and today by ensuring health, safety and environment (HSE) and recognised as the most efficient firm in HSE performance (Dpcoman.com, 2022). Moreover, Dhofar Power Companyis showcasing their efforts to maintain allocation with the industry standards by building a strong culture of safety
For example DPC is a certified company which falls under Nama Group in terms of international standards“ISO 14001: 2015 - Environmental Management system & ISO 45001: 2018- Occupational Health & Safety Management Systems” (Dpcoman.com, 2022). Moreover, this firm is committed to provide improved health and safety to each employee at the workplace. In summession to the operations management assignment, the organisational context of DPC is aligned with their strategic operations which is also considering influential internal and external factors. Moreover, analysing information pertinent and influential factors while stating under the industrial standards assisting the authority to identify issues which have potential to affect operational activities. Additionally it can be said in thisoperations management assignment, compliance with the distribution code helps DPC to distribute electricity and finance to maintain their own distribution system while ensuring development (Dpcoman.com, 2022). For instance, the distribution code of DPC is based on the extent permitted by the Sector Law with Article 88 which is behind the efficient operation and maintenance of the international interconnection (Apsr.om, 2022). Moreover, sector law is guiding the case study organisation to carry out their operation by following functions assigned to them.
ii) Discussing process management within the organisation in the operations management assignment Process management as per the operations management assignmentrefers to the alignment of the business process with organisational strategic goals which is designed and implemented by process architecture. Moreover, process management strategy helps to establish a process measurement system which has alignment with the organisational goals so that operational managers can implement those goals easily (Heaton et al. 2019). Therefore, operations management assignment is signifying that process or operation management is more involved with the internal process but ensures that all supply chain activities are being performed to achieve operational excellence. Highlighting process chart of Dhofar Power Company S.A.O.C
Figure 1: Process Chart of Dhofar Power Company
(Source: Created by Author)
Studies in operations management assignmenthave mentioned that process charts help to understand how an organisation operates by providing clear information. In Figure 1 the process flow chart of the Dhofar Power Companyhas been projected which helps to visualise the entire operational process of the case study organisation. In this regard studies have mentioned that activities which help to understand and meet demand conditions helps one company to achieve operational efficiency (Al Riyamiet al. 2019). Hence, it can be commented in this operations management assignmentthat if any company organises their process based on the demand condition, they will witness success in the operational market. In the case of DPC it is noted that the process of the company is regulated by the Authority of Electricity Regulation which is enabling them to lead the electricity market in Oman (Al-Balushiet al. 2021). Similarly, the GPS system can be installed for the entire DPC network can improve integration in the operational process as it is allowing the firm to improve responses by leveraging technology (Young et al. 2022). In sumession, the firm can create an opportunity of better process managementby maintaining balance between the demand and supply condition through process management excellence.
Critically discussing how the process analysis needs to be planned for improvement and to achieve operational excellence-
Achievement of operational excellence needs an optimised operational management framework for business. Additionally, production of intangible resources and services can help one company to make a value stream by improving resource visuation. Additionally, Shittu et al. (2018) suggested in the operations management assignmentthat power companies can achieve operational excellence by focusing on the consistent operation and creating value based power distribution channels. Therefore, it can be said that consistent operation is one of the key features that provides one company operational excellence. However, Mishra et al. (2021) argued in the operations management assignment that the external supply chain risk negatively impacts the operational process of a company and prevents them from creating a value stream. Therefore, it can be said in this operations management assignmentthat operational excellence is a journey rather than a destination as there are no endpoint when growth of the operational process can be saturated. Moreover, reviewing external factors which are impacting the stability and integrity of the process management system business can achieve operational excellence is a sustainable way.
Customer service strategies-
Customer service strategy is another area to focus to achieve operational excellence as it assists to provide consistent customer service. In the case of DPS it has been noted in this operations management assignmentthat the customer base is constructed with 121,190 people and the firm is providing them necessary electricity services (Dpcoman.com, 2022). Therefore, to bring accuracy in billing, DPC’s can launch advanced billing system to assisting the firm to extract more accurate consumption patterns. Moreover, to achieve operational excellence, customer service improvement is necessary as the case sty organisation serves diverce customer. As a result of it, customers and the company would be able to minimise commercial loss which was occured recently as per the operations management assignment.However, automation in the distribution network can be the main reason behind the cost effective service as it holds the potential to help the authority to improve response time while effectively leveraging technology.
Figure 2: Inventory of DPC
(Source: Dpcoman.com, 2022 )
Inventory management as per the operations management assignmentis the particular process that helps one company to achieve sustainable and desired outcomes.
Investigating the annual report of the DPC it has been noted that the firm follows a specific requirement for better inventory management which is ISO 55001 an international standard for effective inventory management system (Dpcoman.com, 2022). Additionally, the Figure 2 is projecting the detail of DPC’s assets which is providing a high level of quality service to customers. Moreover, laveragingthis industrial standard DPC will be able to provide a high level of service to customers which is finally accelerating the revenue generation process. In short it can be said in this operations management assignment, improved facility management and the growth of solid inventory could be the main reasons behind the effective inventory management of DPC. On the other hand, Muchaendepiet al. (2019) suggested that pull technique, push techniques and in-time techniques can be implemented by companies for better inventory management as these strategies holds the capability to meet demand of customer by utilising assets in different ways. However, automation in inventory management can be followed by the DPC as it provides accurate demand forecasts beside these above mentioned techniques.
Operation scheduling as per the operations management assignmentis the specific strategy that describes the flow and sequence of the operation which is specific to any production route. Moreover, the operation scheduling capacity of a company based on the resource group allows them to complete each activity within the allocated time (Zhu et al. 2019). Hence, it can be stated that designing the operational schedin;ling based on the demand condition and resource availabilityDPC company can achieve higher operational excellence. In the case of DPC it has been noted that the firm focus on logistical planning of physical power flows as it helps them to serve both domestic and commercial consumers at the same time (Ahmad et al. 2018). However, following the fluctuation in the energy consumption pattern may impact on the operational scheduling framework of DPC in future as it is an unpredictable condition.It can be said in the operations management assignment that through the Material Requirement Planning one company can improve their operation scheduling as it allows them to give specific information about the resources which are needed and ranks them accordingly.
Purchasing and supplier management in operations management assignment
Purchasing plan and supplier management technique mentioned in the operations management assignmentcan helps to manage goods and services in a strategic approach as it helps to meet business goals. DPC’s team of management can putt cumulative effort to unite suppliers.Suppliers contributsto companies success as they help to distribute powers to each household and commercial clients. In the annual report of DPC it is found that Oman National Engineering & Investment Co, Oman Power and Water procurement and . Oman Transmission Company are the top three suppliers (Dpcoman.com, 2022). Specifically OETC is responsible to transmit electricity to the distribution system of a company whereas, OPWP purchases electricity from electricity generators in different regions and sells them to DPC (Dpcoman.com, 2022). Hence, it can be said in this operations management assignmentthat effective supplier management strategies and collaboration with these abovementioned authority can help the case study organisation to deliver improved quality of service.
iii) Identifying whether the organisation is implementing any lean process and evaluating benefits is the beginning for the organisation
The primary goal of major energy companies as per the operations management assignmentis to become energy efficient. The use of lean processes within the concept of production management helps energy companies significantly improve their output and reduce their overall wastage (Chen et al. 2022). DhofarPower Company S.A.O.C has significantly utilised the concept of lean management in removing the efficiencies and improving their overall effectiveness as a company to produce power. Moreover, the business enterprise has made it mandatory for its workforce to undergo 2 different levels of training associated with lean management. The implementation of lean methodology as per the operations management assignmenthas significantly helped the company to reduce its wastage in terms of power generation and its transmission to the end-user.
Critically evaluating how lean process implementation could be beneficial for DhofarPower Company S.A.O.C
DhofarPower Company S.A.O.C as per the operations management assignmenthas been able to successfully implement lean management by significantly improving its cost-efficiency in terms of delivering the power to the end-users. The business enterprise has developed 44 primary substitutions(33/11 kV) that include switchgear, capacitor banks, Transformers and all the necessary ancillary equipment to improve the DPC distribution network (Disc.nama.om, 2020). The business enterprise according to the operations management assignmenthas also improved its cost efficiency by laying down LV cable and other important supply and metering equipment to deliver the final power to the customers. These activities have significantly helped the company to reduce losses and improve its cost-efficiency
The implementation of lean methodology has led to the average growth of customer satisfaction by 4.9% which in turn has helped the business enterprise to maximise profit and ROI (Disc.nama.om, 2020). Moreover, the availability of training facilities for the staff members of the company has significantly helped in improving the customer experience. In the case of DPC it has been noted that to maintain the level of operational excellence the firm focuses on following industrial standards as it limits the error in process and cuts down operational cost (Adekitan, 2020). Moreover, industry standards is the specific set of criteria which helps companies to maintain standard functioning and carry out operational activities in their prospective field of production. In this regard, Behera et al. (2021) in the operations management assignment has said that improvement of customer service and active responsiveness of the customer service department helps one company to extend a loyal customer base. Additionally, experts also claimed that the customer centric technologically advanced operational strategy of DPC is enabling the firm to acquire certain assets and to meet business development goals through functional efficiency (Al Riyamiet al. 2019). As a result of operations management assignment, the entire organisation is able to generate higher Net profit after tax year to year. The implementation of lean methodology in the internal operation of the company that comprises power generation has been developed by keeping the customer as a top priority which has also enabled the company to reduce the time for solving a consumer complaint.
The primary and strategic focus areas of the company as per the operations management assignmenthave always been service reliability and ensuring the availability of electricity for its customers. The available data shows that the implementation of lean processes in the manufacturing of power for the company has been able to significantly reduce the historical system losses by 15.86% by the end of the year 2020 (Disc.nama.om, 2020). These strategies have helped the company to significantly reduce the losses and improve the service reliability for its customers.In the year 2020, two different categories of lean management Yellow belt and Green belt what provided to 16 of the staff members of the company. It has been highlighted by Zhou et al. (2018), lean management approach helps in eliminating unproductive processes and reducing the overall cost of operation. The business enterprise as per the operations management assignmenthas been able to transition into lean manufacturing by improving its efficiency and by reducing the overall cost of power generation. Earlier before the implementation of the lean process into its operation the transmission and distribution of electric power were not efficient and the company was facing major losses in terms of power. Moreover, strategic initiatives taken by the dynamic management team help them to formulate optimised operational processes which need to be implemented to meet their strategic objectives.
Figure 3: Historical reduction of system losses of DPC
(Source: Disc.nama.om, 2020)
i) Capacity planning in DhofarPower Company S.A.O.C
According to the operations management assignment the business enterprise is based on the effective usage of its available assets and uses it to generate electricity in different phases. The company has also ruled out different phases of the geographic information system that allowed it to better manage and develop a solid inventory in terms of distribution assets and providing better customer care. Apart from that, it is evident from the operations management assignmentthat projects of DPC turn strategy into actionable items and operational terms through analytical underpinning. Moreover, the business enterprise has been constantly implementing and researching numerous different processes and techniques to reduce the losses in the system and improve the service reliability and quality for its consumer base. In addition, it is noted that OPWP is one of the single buyers of all the systems provided by the DPC and becoming a monopolistic bulk buyer as well as seller of electricity across Oman (Al-Balushiet al. 2021). However the authority of public service as per the operations management assignmenthas issued a regulation to issue tarries for electricity across Oman.
In this regard, operations management assignmenthave suggested that value focused operational processes have more share in achieving operational excellence as it focuses on the concept of organisational values (Shittu et al. 2018). Therefore, it can be stated that link of organisational value with the process management framework is helping DPC to operate excellently in Oman. According to the comments by Hu (2021) in theoperations management assignment, effective planning of available assets helps a business enterprise to reduce wastage and deliver the optimum amount of energy to the customers. The capacity planning incorporated effective use of the assets that have been shown in the table below.
Figure 4: Assets of DPC
(Source: Disc.nama.om, 2020)
Critically evaluating current capacity planning in Dhofar Power
Company S.A.O.C and recommendation for development
Capacity planning at DhofarPower Company S.A.O.C as per the operations management
assignmentrefers to optimum management of all the available assets in order to achieve a sustainable and desired outcome. The capacity planning in DhofarPower Company S.A.O.C follows the specification and requirements of ISO 55001 which is an international standard that specifies the specifications and requirements for effective and integrated management of assets (Disc.nama.om, 2020). As per the operations management assignment the presence of extensive demand for power in the Middle Eastern countries has led to the development of stress in terms of power production for the company. Moreover, regulation issued by the public service authority is helping the case study organisation to maintain balance between privatised entities which are partially owned and entities fully owned by the company. Additionally, the smart metering service is serving the growing customer base of DPC. Beside operations management assignment, technologically advanced operational team assisting the firm to extract detailed consumption patterns and to improve billing accuracy (Dpcoman.com, 2022). Hence, it can be stated that association with the international industrial standards is guiding DPC to minimize the cost of operation as it is ebabeling to identify potential operational issues. As a whole, association of the industrial standards with the process chat has guided DPC in electricity generation, transmission and distribution. The tariffs for electricity are divided into two major categories which includes residential tariffs and commercial tariffs (Al-Balushiet al. 2021). This specific factor mentioned in theoperations management assignmenthas led to the formation of innovative strategies at the production level of the company in order to meet the power demand. The business enterprise has taken the “small-scale rooftop solar project” in order to increase its sustainability and increase the availability of power for its consumers. According to the views of Anning and Vhumbunu (2018), the increase in the capacity of production by a power company by using all the available assets helps it to act according to the understanding of the demand pattern of power. DPC has been able to successfully connect to solar systems based on rooftops having a total capacity of 172 kilowatts (Disc.nama.om, 2020). The company as per the operations management assignmenthas further urged its customers to reap the benefits of solar power that it has been providing. However, the application of the lean methodology and capacity planning was quite difficult to implement at the ground level. The capacity planning of the company has also allowed the company to improve with sustainability and receive a total export of energy of around 88,357.50 kWh in the year 2020 (Disc.nama.om, 2020).
i) Conclusion of key findings
At the end of the operations management assignmentit can be summed up that operational activity optimisation and the responsible operational manager is helping the DPC to deliver top notch service to clients. Additionally, the operational manager of DPC is in charge of investigating expansion facilities in different geographical areas based on the supply chain connectivity. Not only that, operational managers of DPC have undertaken reduction of operational costs, strategic plan design through smart metering system which is providing higher quality electricity service to customers. Not only that, the unique distribution channel and the use of advanced technology has helped the firm to solve pain points which were associated with the billing facilities. In operations management assignment, the operational manager and team responsible to handle operation across all distribution centres of DPC keeping up with the all advanced technologies to provide high quality service and to ensure growth of business in different geographical areas. Specifically, the maintenance of industrial; standards and ISO based operational framework helped DPC to reduce legal liabilities and to expand in different geographical areas. As a whole, association of technologies with the operational process is providing guidance to the DPC to cut down technological and commercial losses. Moreover, the consistent commitment of DPC to the HSE is aligned with their policies which are assisting the authority to deliver sustainable performance. Similarly, the process map of DPC has clearly demonstrated how the company handles key operational activities to provide excellent service to domestic and commercial clients. Certain areas which need to be developed have been mentioned in the report and suggestions for improvement have been made based on the literary evidence. Moreover, this case study organisation mentioned in the operations management assignmentis able to offer cost efficient and reliable services to each customer who is just because of dynamic management and operational excellence.
It is seen in this operations management assignmentthat DPC has already implemented automation technology to achieve process management excellence. Beside this, use of GPS technology is allowing the authority to integrate all power stations and to minimise the limit of human error in operational management. Considering these particular areas mentioned in the operations management assignment, companies operating in the same sector can integrate their process of operation and can accelerate their revenue generation process. Furthermore, it can be suggested that risk management is one of the key areas where DPC needs improvement. Moreover, to handle demand and supply risk the firm needs to identify and prioritise risk accordingly. In this regard, automated risk registers can be used to create risk awareness within the company (Ahmad et al. 2018). It is seen in the operations management assignment that specifically, automated risk registers have significant expertise in scoring risk and prioritising based on the impact level. Moreover, a company environment which is aware of risk faces fewer liabilities when a risk occurs. For example, concerning the supply risk of conventional electricity DPC has installed Solar Initiative to minimise the demand supply risk associated with conventional energy (Al-Balushiet al. 2021). Additionally it is found in this operations management assignment, that the National Solar Energy initiative of DPC also promotes the future of clean energy use with diversified development goals.
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