Logistics and Opertaional Management Google

Question: Critically evaluate methods of planning and organising efficient operations and networking. Analyse the problems of controlling component activities and of controlling quality Critically discuss methods of project evaluation and of scheduling resources? Answer: Introduction: Google is an American MNC. It specializes in products and services related to internet. These are advertising technologies for online operations, cloud computing, software and search. The main objective of Google is to standardize products by keeping it transparent and simple; to eliminate the unnecessary and extraneous, to automate in order to accomplish standard and eliminate loopholes and to outsource when the first three objectives are met. Outsourcing: Outsourcing is a strategy used to save costs. This is done by transferring some portions of their works to other outside suppliers rather than doing it internally (Investopedia, 2003). It may be noted that sometimes it is more affordable and profitable to procure goods from companies outside which has comparative advantage than producing it internally. Example can be cited of organizations like Dell which procures parts of computer from different manufacturers so as to save the costs of production. Another example may be of business houses those who outsource their book keepings to outside accounting firms; as it may incur fewer expanses for the organization in retaining or hiring an in house personnel or book keeping (Vitasek, 2013). Value added: Value added increases either the price of the commodity or its value. Example Motorola mobiles (now owned by Google) now gives an annual free support (Investopedia, 2003). This is a feature of value added. In other words these are enhancements business organizations bestow upon its services and good before offering those to the customers and final consumers. If products are homogenous and that has a fewer difference from that of its rivals, then the business organizations bestows value added (Investopedia, 2003). These added attributes provides customers and final consumers with add on or different features, and they get value in greater sense. Operational performance: Operational performances are some measures to determine how well an organization does. Measures used o determine the performance of organizations can be expense rations, policy terminations, sales performances, outsourcing decisions. With the help of these measures operational performances are measured (Highn.me, 2011). For an operations manager to decide what products and services are to be outsourced depends upon a number of factors related to geography, economics. These factors are, demographics (number of male users, no. of female users, age group), demand (the utility gained from the goods or service), competitors product and price (homogenous products or homogenous products with added attributes). We shall discuss the outsourcing decision matrix first for our better understanding (Rouse, 2015). Process complexities and dynamics Figure: Decision logic of outsourcing products and services As an operational manager, my aim shall be to consider whether outsourcing exhibits strategic importance or not. Also the second point is whether outsourcing contributes to a raised operational performance or do not contribute to operational performance. Interpretation of the matrix: Tasks which are strategically not important but contributing to high performance of operations are irrelevant in outsourcing. This is because it is a waste of time. Example Google can outsource its product Doodle to third party as how the customer values this product has nothing to do with the customers. But it does matter how well Doodle does. The customers wants products that are undamaged, has quick delivery and that has cheap monetary value tied to the product. As stated in economic theory of demand, when products have lesser prices, its demand is higher and vice versa. When an operational manager decides to outsource the products or services, the pre requisite is to find the correct partner for outsourcing. There may be an initial time lag in this process though. Quadrant 1 Low Strategic Importance with High Process Complexity and Dynamics: Here outsourcing should be done even if it does not support the primary objectives of business. These are decisions which are demanding and needs judgment and interventions manually. When automation is opted, it will incur high costs; as frequent or immediate changes of Google products needs money (Outsourcing-web.com, 2015). If it is kept in house, it will cost more to train people about its products. Quadrant 2 Low Strategic Importance with Low Process Complexity and Dynamics: These products can be outsourced because it will not impact the business objectives or they dont require immediate or frequent change, or expertise. This costs less. If investment and space is absent, outsourcing is required. Quadrant 3 High Strategic Importance with Low Process Complexity and Dynamics: This decision is necessary if Google needs success. It can be automated if volume is high particularly in order to gain economies of scale (SiteBoat, 2010). These are low priced high volume products. Example Google advertisements. Packing and branding of Google products can be automated if resource availability is there. One off cost is required and subsequent minor costs for changing is required. Quadrant 4 High Strategic Importance with High Process Complexity and Dynamics: These decisions are at the core of business. The decision is taken by operations manger but activities are done by in house personnel. They are trained according to changing pattern of Google products and services (North, 2011). Thus, this decision needs training and motivation on part of the in house workers to handle this change successfully. Products and services to be outsourced Products and services to be kept in house Google Ad Mob, Google Ad sense, Ad words express, Double click, Google grants, Google, Google search appliances, Motorola mobility LLC, Google aardvark, Google hotel finder, Google flight search, Google scholar, Google translate (Google.co.in, 2015). Google maps, Google search, Google fiber, humming bird (Mohan, 2014). The factors that influence the decision to outsource or to remain in house by using the five performance objectives: Here we are discussing about the Google and the factors that can influence the decision making process about outsource. The five performance objectives are Quality, Speed, Dependability, Flexibility and Cost(Aesthetica Technica, 2010) Quality: In the five performances objective model the quality can be in the first position, as customers think that quality is the most important among the five performances. The Google organization is largely depending on the product that it deals with and if the quality of the product cannot satisfy the customers, than there will be less demand in the market for the product and services. In the performance objective of the Google organization, quality is important, because when the customer buys the product or the services from the organization then quality is the first preference from the customers or from the organization point of view (Wordstream.com, 2015). Quality can create a brand value for the customers. If the customers are satisfied, by dint of word of mouth the quality of the Google products and services shall be known by more customers Speed: For the organization like Google it is very important to maintain the speed regarding to giving the response to the customers, as there are many customers who are using the Google; and if the organization fail to provide response very fast than the customers may not be satisfy. In the modern world many customers use online buying system and for this buying process the customers need fast response. It is very important for the Google organization to make the decision very fast in order to maintain the goodwill of the company. In case of slower of providing the seep of the organization, than it can influence the decision making process of the organization. There are two different affects of speed; they are the external affect and the internal affects. Dependability: The Google organization is largely depending on their customer, and in this case dependability refers to deliver the product or service to the customers on time. It is very necessary that the customers should get the product on time, as delivery of the product on time may increase the value of the Google organization, which is very helpful for the Google organization. Again there are two different affect in dependability; they are the internal and the external affect: The internal affect is that the Google organization can depend on their performance level that it is very fast and it may deliver the product on time to the customers. The external affect is that the customers depend on the organization for the getting the product on time, and it may create the dependency high of the customers. Flexibility: For the manager the word flexibility define so many things, it is the favorite word for the managers because the managers always want that the employees of the organization should be more flexible to their work. The Google organization is also depending on the employees who are working outside the organization, as they the person who use to deliver the product to the customers (RCR Wireless News, 2012). If the outside employees of the Google organization are not flexible in their work; then it also may be the influence for the Google organization, and the organization may not take the decision to whom to hire for the delivery purpose. If the employees of the organization are more flexible in their work; then there is a chance of increasing the number of production with different types of products. Cost: The cost is the most important factor for the very organization, here in his context we are discussing about the Google organization. The four the performance objectives that we discuss in the above are related with the cost, as all the four objectives are follow to reduce the overall cost of the organization. For the Google organization it is important to reduce the cost for making the performance more accurate. The cost is the factor for the organization that it may influence the decision making process of the organization, because if the cost is high for the organization than the profit margin goes down. Risk: The Risk that involve in the decision making process and the recommendation for reducing the risk: Being a manager of the Google organization it is important to make the decision, but there may be some risk in the decision making process of the business. It is obvious that in decision making process may not accurate all the time; it may be positive or negative aspect for the business. The positive aspect includes; profit of the organization, increasing the numbers of customers, increasing the sales and expanding the business in the global market. The negative aspect includes; the decrease in the demand of the product, decrease the numbers of customer and the loss of the company (Making Decisions under Conditions of Risk and Uncertainty, 2015). It is important for the manager of the Google organization to make the strategic planning before making any decision for the company. It includes; setting the goals and the objectives of the organization, analyzing the information etc Some points to reduce the risk in the decision making process: The managers have to identify the risk before making any decision, identifying or risk may help the managers to re-think for the decision. After identifying the risk it is important to understand the risk, because if the managers understand the risk properly then it will be easy for the manager to reduce the risk. The methods that is used to identify the risk should be very systematic and in a correct way, so that the manager can analyze the risk properly. The monitoring quality of the managers is very important for the Google organization, because if the managers do proper monitoring of the project then there is a less chance to make mistake in decision making process. So risk monitoring is very important for the managers to make sure that no one is doing mistake in their respective task. The procedures to make the plan need to be correct, because the correction the plan may reduce the risk which is very important for the organization to regulate the risk. The managers can follow the risk regulation process to make sure that it can reduce the risk. References Aesthetica Technica, (2010). Big Five. [online] Available at: https://graelaws.wordpress.com/today-is-tomorrows-yesterday-so-do-not-delay-just-do-it-now/energising/empowerment/operations-and-process/operations-performance-objectives-the-big-5/ [Accessed 4 Jul. 2015]. Google.co.in, (2015). About Google - Products. [online] Available at: https://www.google.co.in/about/products/ [Accessed 4 Jul. 2015]. Highn.me, (2011). Process/Strategy Matrix for Outsourcing Decisions in Business Management | Highn's Journal. 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