Operation indicates all the procedures that are required to process and deliver any product or service. There are three major sectors in an organization, such as- finance, operation and marketing (Armony et al., 2015). Operation plays the most crucial role in the development of any organization. Operational management (OM) department of an organization concentrates on manufacturing of products and services and distributes those products. The functions of operational management include planning, coordinating, controlling, organizing.
BHP Billiton is a leading Australian mining company that deals with several metals, petroleum products. It has been founded in 1885. Headquarter is situated in New South Wales, Australia. It is considered as a huge profit making organization of Australia. BHP Billiton is known as one of the largest export and import companies. It exports huge amount of oil to United States ("bhpbilliton.com", 2017). The below mentioned articles has focused on supply and value chain management and other aspects of operation management of BHP Billiton. It has discussed various operation management activities of BHP Billiton.
Supply chain management plays a crucial role in the development of any organization. It is one of the key components of operation management. Operation management departments pay more attention to maintain an active and strong supply chain management (Bahmani-Firouzi & Azizipanah-Abarghooee, 2014). Being a leading mining company, BHP Billiton maintains a strong supply chain management and maintains healthy relation with each of the raw material suppliers and distributors. BHP Billiton depends on importing oil from India and export oil to United States. In order to achieve desired target the organizational management of BHP Billiton maintains healthy relation with all the suppliers. The operation manager of BHP Billiton maintains communication with raw material suppliers to ensure uninterrupted supply of raw materials. The primary objective of the operation management department of BHP Billiton is to serve quality service and products to its consumers. To achieve the objective the operation management department concentrates on establishing a strong relation with all the members of the supply chain management. The operation management department of BHP Billiton maintains strong relation by several contractual agreements (Bice, 2014).
Value chain management refers to all those activities that an organization performs to deliver a product or service to the consumers or to the market. Value chain includes strategic planning, manufacturing and transportation. It plays a significant role in achieving target of any organization. Operation management of BHP Billiton focuses on maintaining an active value chain. The organizational management makes some efficient strategy to manage value chain in an effective manner (Mzembe & Meaton, 2014). They incorporate all modern and unique techniques to maintain an active value chain, as it is highly responsible for the success of the organization. After receiving raw materials from the suppliers the management delivers those materials to the firm where products will be processed. To maintain an uninterrupted production procedure it is highly important for the employees to participate in the procedure actively. The organizational management of BHP Billiton encourages all the staff members to contribute for establishing a bright future for the organization. There is sufficient transport system by which the organizational management delivers their product to the market after the production procedure.
While establishing organizational strategy, the organizational management must consider the fact that to enhance the profit margin of the organization effective techniques must be implemented. The organizational management must realize that by applying effective strategies and techniques expectation level of the consumers can be matched. In order to achieve desired position organizational management must overcome all the challenges that have been faced by the organization. The operation management department must use all kind of communication tool to communicate with the suppliers and distributors (Mohammadi, Soleymani & Mozafari, 2014). It will help the organization to maintain a strong supply chain and influence the growth of the organization. To influence the productivity of the organization, the organization must build a strong bonding with the employees. Employees are considered as an important pillar of the organization. The organization must appreciate their employees for short term achievement. It will motivate the employees to provide their best performance to achieve long-term goal
BHP Billiton, being a leading mining company of Australia as well as world has successfully managed all its operations. The development of the organization is highly dependent on these operations. Operation management department of BHP Billiton supervises all its activities to ensure a flawless service to its consumers (Parsons, Lacey & Moffat, 2014). They maintain a transparent relation with all its suppliers and consumers. Consumers pay close attention to the requirements of their consumers. It helps the m to identify their flaws and improve their performance. The operation management maintains various contractual agreements with their suppliers to avoid any kind of miscommunication. The primary objective of the operation management department of BHP Billiton is to overcome all kinds of challenges that may be faced by the organization in between manufacturing procedure and delivery of the product to the market. The responsible staff members of BHP Billiton concentrate on development of the productivity so the organization can match the expectation level of the consumers. Consumers in recent time have become very much particular about the quality of their product. It has become very important for every organization to provide a flawless service to their consumers. It is highly beneficial for the organization to beat all its rival companies and satisfy its consumers. The operation management department of BHP Billiton is aware of the fact. They always try to provide flawless service and products to their consumers. In order to achieve the target they implement all the required strategies and techniques that can be helpful for the development of the organization. Although, there are some flaws that can be harmful for achieving organizational goal To resolve those issues the operation management department must perform more effectively (Moffat & Zhang, 2014).
Members of operation management department of BHP Billiton plays significant role in the development of the organization. There are some sectors in which they participate to help the organization to earn desired position in the society and survive in the battle with other rival companies. Some of them are as follows:
The operation management department actively participate in the establishing a strong plan to achieve desired target. Planning is considered as the initial stage for carrying out any kind of agenda. It helps the organization to perform systematically to earn the organizational goal. The staff of operation management of BHP Billiton includes all the required strategies into their rule book that can be beneficial to achieve the desired position in the society (Krajewski, Ritzman & Malhotra, 2013).
Being one of the leading export and import company, BHP Billiton deals with many national and international suppliers. To maintain a strong supply chain the staff members of operation management department concentrates on maintaining a transparent relation with all the suppliers. They maintain contractual agreement with their suppliers to prevent any kind of risk like miscommunication, misunderstanding. It helps them to earn the faith of the suppliers and influence the commitment of the suppliers towards the organization.
The operation management department of BHP Billiton maintains a transparency level with their employees as well. They encourage their employees to participate in the production procedure (Dobele et al., 2014). Employees are often motivated by the operation management department to give their best performance for the betterment of the organization. The operation management department helps their employees to improve their performance quality.
Transport system plays a crucial role in the success of the organization. It helps the organization to deliver the raw materials in the firms and deliver the processed products to the market. The operation management department of BHP Billiton pays close attention to maintain an uninterrupted transportation system so they can deliver their products to the consumers within time. They focus on improving the transport quality to ensure the organizational success. In order to achieve the desired target the operation management team implements all modern and effective technologies. It helps the organization to earn faith of the consumers by delivering them products in an appropriate manner (Binz et al., 2014).
As per the previous discussion, it can be concluded that being a leading mining industry of Australia, BHP Billiton maintains healthy relation with their national and international suppliers. The organizational management pays special attention to maintain healthy and interactive relation with their suppliers, employees and consumers. They implement all kind of required strategies to improve the quality of their products and services. There are various sections on which the operation management department pays close attention to achieve desired target, such as- planning, supply chain managements, value chain management. They participate actively in all these sections to provide an uninterrupted and flawless service to its consumers. In this competitive era, it has become very important for every organization to deliver a flawless service to its consumers to match the expectation level of the consumers and survive in the race with other rival companies. The operation management department of BHP Billiton provide all kinds of supports to the organization to achieve desired target and put a strong footprint in the industry.
Armony, M., Israelit, S., Mandelbaum, A., Marmor, Y. N., Tseytlin, Y., & Yom-Tov, G. B. (2015). On patient flow in hospitals: A data-based queueing-science perspective. Stochastic Systems, 5(1), 146-194.
Bahmani-Firouzi, B., & Azizipanah-Abarghooee, R. (2014). Optimal sizing of battery energy storage for micro-grid operation management using a new improved bat algorithm. International Journal of Electrical Power & Energy Systems, 56, 42-54.
BHP Billiton | A leading global resources company. (2017). bhpbilliton.com
Bice, S. (2014). What gives you a social licence? An exploration of the social licence to operate in the Australian mining industry. Resources, 3(1), 62-80.
Binz, T., Breitenbücher, U., Kopp, O., & Leymann, F. (2014). TOSCA: portable automated deployment and management of cloud applications. In Advanced Web Services (pp. 527-549). Springer New York.
Dobele, A. R., Westberg, K., Steel, M., & Flowers, K. (2014). An examination of corporate social responsibility implementation and stakeholder engagement: A case study in the Australian mining industry. Business Strategy and the Environment, 23(3), 145-159.
Krajewski, L. J., Ritzman, L. P., & Malhotra, M. K. (2013). Operations management: Processes and supply chains (Vol. 1). New York: Pearson.
Moffat, K., & Zhang, A. (2014). The paths to social licence to operate: An integrative model explaining community acceptance of mining. Resources Policy, 39, 61-70.
Mohammadi, S., Soleymani, S., & Mozafari, B. (2014). Scenario-based stochastic operation management of microgrid including wind, photovoltaic, micro-turbine, fuel cell and energy storage devices. International Journal of Electrical Power & Energy Systems, 54, 525-535.
Mzembe, A. N., & Meaton, J. (2014). Driving corporate social responsibility in the Malawian mining industry: a stakeholder perspective. Corporate Social Responsibility and Environmental Management, 21(4), 189-201.
Parsons, R., Lacey, J., & Moffat, K. (2014). Maintaining legitimacy of a contested practice: How the minerals industry understands its ‘social licence to operate’. Resources Policy, 41, 83-90.
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