Strategic Operation Issues

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STRATEGIC OPERATIONS ISSUES

ASSIGNMENT

TABLE OF FIGURES

ABSTRACT5

PART A6

PART B8

PART C10

PART D11

PART E13

REFERENCE LIST15

ABSTRACT

Company A is a global company and within it has several different business units, Company A , is a specialised service provider for the oil, gas and petrochemical industries throughout the world, this report focuses on Company A Tower Field Service Pty Ltd, located in Australia.

Operations and process management are vital functions for the effective running of successful businesses, they need to be strategically planned and designed to prevent the loss of vital information, company standards as well as continually improve practises. These processes should be well documented and understood by all employees of the company. The loss or relocation of individuals should not have significant impact on company functioning. This report shows how strategic operations functions can be used to improve processes and therefore increase business effectiveness.

Key concepts in strategic operations issues, such as process design and analysis, total quality management and resource planning and control need to be well documented for the system to remain effective and to meet long term strategic goals.

PART A

Describe the organisation and the problem briefly, but well enough for the assignment examiner to understand what the organisation does and its relevance to this assignment;

Company A is a global company with many business units located around the world; Company A is itself a division of Company B. Company A have extensive knowledge of all types of vessel and tower internals. Company A are a specialist service provider supporting customer’s needs for all their internal equipment installation, shutdown, maintenance or revamp requirements in the petrochemical, and oil and gas industries all over the world.

It is Company A’s strategy to strengthen its ability to supply installation and maintenance services to its customers geographically leading to recent acquisitions, Oceania merging with APA creating APAC. This has resulted in the relocation of key personnel, within the company, to run new locations, consequentially losing experience and day to day operational knowledge. Due to an ill documented management system this knowledge and experience was not captured in processes & procedures resulting in a gap in the operations of the business. This assignment focuses on Company A Pty Ltd, Australian Operations.

PART B

Briefly explain the background to this issue or problem by describing how it fits into the operations of the business. Its impact on the business could be demonstrated using a chart to show the functional relationships, and/or a process flow analysis to show how the operation or process that you are studying is integrated into the organisation;

Company A’s work is varied and unpredictable, resulting in fluctuations and depressions in work frequency and volume (Figure 2.0). Speed, cost and dependability are the important operational factors driving Company A’s market strategy in winning contracts. Whilst each project is different the process for quoting, receiving the contract and executing the job are essentially the same (Figure 3.0) . This process was held by a small number of experienced and long standing employees, when they were reallocated to run other locations, so was the knowledge of project, quoting requirements, Company A capabilities and experience.

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Figure 2.0 – Shows the variation and volume in work load throughout any given year. Reference: Reporting Figures (2009, 2010, 2011)

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Figure 3.0 – Process Flow chart of Company A enquiry through to Project Completion...
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