Operation management tma worksheet

Second, Hazelwood has made investments in plant; they build a manufacture in London with 1 million productions of sandwiches per week but when they invest more by building Manton Wood they produce more by 3 million sandwiches. Also with new powerful machines, they could reduce the human resources costs because fewer tasks need to be done . Also the stock levels will be reduced so that this will be successful for the company.
Third reasons lead Hazelwood Sandwiches to make investments in the product that customers are looking for quality, different types of Sandwich to compare it when they are abroad, So Hazelwood try to provide a high quality, healthy and delicious sandwiches in order to meet the customer demand. In addition providing different types of sandwiches to satisfy all types of tastes and modify old items or create new ones. Over all, there are many other reasons that lead Hazelwood to made capital investment . ln fact they are trying to gain competitive advantage to maximize the wealth of owners.
They use different techniques to evaluate the investment opportunities, and then choose the best project. Moreover, Hazelwood maintain a brand name because of its sandwiches, Actually every company should investment in people, product and plant. Question 2 Hazelwood’s investment decision techniques Investment decisions are important for the growth of the business because an investment includes financial resources for purchasing assets such building or equipment’s which will bring economic benefit for the company. Those decisions are difficult and expensive to refuse once it has been ventured.

Actually Hazelwood’s uses various capital investment appraisal techniques to measure which project is more profitable. First method is Payback period which is the length of time that the investment takes to pay back the net cash inflows form the project. Projects will be selected according to the period the business sets and the shorter ones are preferred. The advantages of this method that it’s easy and quick to calculate or understood by users, avoiding risks and its good for the startup business to calculate the time needed to prepay the original investment.
The disadvantages are that it onsiders about the time not the value of money, the relevant information such as the cash flows beyond the payback period are ignored and it doesn’t consider maximizing the wealth of owners because it looks for the short project periods while longer beneficial project might be ignored. The second is Net Present Value includes all the money of an investment; It calculates the benefits from the investment against all the costs of this investment with allowance for the timing of them. The rule is to choose the project with the higher value and the positive ones not the negative ones.
For its advantages, it considers about the objects of the business, maximizing the profits, it takes all the relevant cash flows in account and the timing of cash flow. For the disadvantages, there are some risks for example a machine doesn’t works, or that interests may lost in investment, also the problems of inflation which consider the loss in the purchasing power of money. The third is the Accounting Rate of Return which calculates the average operating profits over the average investment to earn those profits in the form of percentage.
It’s about achieving the target with higher ARR projects. The advantages that it represents a percentage and it consider the performance before it has performed. The disadvantages about using the accounting profits to measure the performance over the life of product, also different sizes of investments competing and using of average investment cause problems. Over all, those are the three investment decision techniques that Hazelwood uses in evaluation the investment opportunities.
Each method ranks projects according to some compared features. With those techniques the most profitable project will be chosen. Question 3 Invest in people Investing in workforces is the lifeblood for any business, actually it’s important to make investments in human resources because they are the main role of the business and attects it pertormance. Also well trained and experienced employees give advantage for the company because they are the workforce that a control the process in which the business operates.
So the company should ensure that their employees are well trained, motivated and loyalty to their Jobs. Additionally maintain the satisfaction of the employee will raise the employee performance and focus to achieve the business objectives. Also this will improves their skills in doing the tasks. On one hand, Hazelwood provides flexible working environment: include the induction program which introduced the new employee to the organization and to its role, also programs that make the new employees feel they are a part of the team.
Second, Family-friendly HR practices to understand the employee’s circumstances such as the working hours for the mothers to look for their families and offers a paid time off for pregnant women’s. Third, providing training and development opportunities which will enhance the commitment and improve the skills in doing the asks as fast as possible, also opportunities to take National Vocational Qualifications relevant to the food industry. Hazelwood try to provide facilities in the Job environment by providing gyms, hair dressers, shops, restaurants and cleaning services.
In addition, the employee’s expectations about the nature of work should be met. On the other hand, Hazelwood plain and monitor the performance of its employees to give them reward packages for their high performance. With those methods Hazelwood achieved to be the employee’s brand that it’s the choice of the employees because they know how to take care of their employees offer them good ay packages. As a result, Hazelwood decreases the labour turnover and reduces the levels of absenteeism also the costs of recruitment.
Beside of Hazelwood there are other companies that invest in people in such as the National Bank of Kuwait; they believe that investing in people will benefit them in future. Actually 1800 Kuwaitis has been trained in 2012 and it will always provide training and developments opportunities to encourage their employees. Also ZAIN Company provides programs of training such as ongoing coaching, sending employees outside to complete their high education and induction. Last but not least T;D Team provides training and developments for the employees in order to improved their skills, performance and knowledge.
Question 4 Workforce greatest assets For all businesses workforces are the role assets; In fact they are the people who achieve the company objectives. They should be looking after them starting from the managers, suppliers, employers, employee and all of them. Actually investing in people adds value to the organization especially for innovation companies such as Google because they rely on the experience of their human resources rather than nything else. The importance of workforces has different points of view. First the HRM function perspective which considers about managing people and carrying out their activities.
It’s responsible for ensuring that the people are in their right places with right skills by recruiting, selecting, developing and monitoring. HR believes that people performance affects the business performance so they provide training and development opportunities to maximize their performance. Also monitor the performance to ensure that they are on the right track and provides them with feedback. Moreover they provide reward systems to encourage them to achieve their targets and make sure that they are satisfied, motivated, appreciated and loyal to their Jobs.
Moreover, this will build the organization’s reputation as a social, ethical and responsible organization in order to gain a competitive advantage. Second the accounting function which considers about the financial accepts of the business. To achieve the HR function activities, the business should be able to afford the costs associated with those activities. Here the workforces are important because they guarantee bringing money to the business. But before going a step the business should think of the investment returns and risks.
As if sending an employee to take English courses, how much of benefits this will bring in the future benefits. Moreover developing the skills of employees will raise the production levels as they have experience, finish the tasks on time and do it perfectly . So they will be able to develop or create new products or advanced technology. Also maintaining a positive reputation that will help them to raise money in the market and the financial advisors will advise the investors to invest in the business. Additionally, the company will gain a brand name which will decrease the costs of recruitment and advertising.