Operations management: analysis of cases of successful businesses in improving operational plans and dispatching

Target setting

Currently, operational management is a key direction in management responsible for organizing and controlling the operational processes of an enterprise to achieve its strategic and tactical goals. Moreover, since such management encompasses operational planning, production, inventory management, logistics, ongoing quality control, operational plans, and dispatching are its fundamental elements. operational management monitoring

The connection between operational management, operational plans, and dispatching lies in the fact that operational management involves the development, implementation, and monitoring of operational plans and utilizes dispatching to execute these plans. Operational plans are formulated based on the strategic objectives of the enterprise, and they define the steps that need to be taken to achieve these goals in the operational aspects of the business. Dispatching implements these plans by allocating resources and tasks among different parts of the organization for their execution. It is important to note that since operational management is a dynamic activity, operational plans and dispatching are subject to constant updates and adjustments, within which managers need to consider changes in circumstances, demand, resources, and technologies to the fullest extent.

Therefore, the analysis of successful company case studies in improving operational plans and dispatching becomes highly relevant.

Analysis of research and publications

Questions of operational management, including those related to adjusting the efficiency of production and other operations, as well as their planning, are discussed in the works of authors such as S.V. Belyaev, D.O. Sarichev, V.A. Deordiyev, A.S. Ilyin, and others. It's important to consider that improving operational plans and dispatching is a complex process that can encompass various aspects, tools, and methods.

However, as per the views outlined above and those of many other researchers, there is a somewhat fragmented approach to improving operational plans and dispatching (as they often focus on specific aspects of these processes rather than considering them in general).

The wording of the purposes of article (problem)

The purpose of the article is to provide a comprehensive analysis of successful company case studies in improving operational plans and dispatching, and to identify the distinctive features of the outlined improvements.

The paper main body with full reasoning of academic results. Improving operational plans (interpreted, within the scope of the study, as detailed action plans for the short and medium term to help achieve the tactical goals of the enterprise) and dispatching (interpreted as the process of resource and task allocation to ensure the effective functioning of operational processes) are important aspects of operational management for any enterprise.

The significance of improvement is determined by the characteristics of the outlined components.

Indeed, the significance of improving dispatching processes is driven by a series of characteristics that assist enterprises in enhancing the efficiency of resource operations, which are crucial factors for achieving success in the market (see Figure 1).

Among such characteristics is the clear direction of the impact of dispatching on the efficiency of resource allocation, dispatching on logistics, the effectiveness of monitoring resource allocation over time, and other aspects of operational activities.

Figure 1. Components determining the importance of improving dispatching

processes in the enterprise

Source: formed based on [1; 3; 5]

The characteristics that determine the importance of improving dispatching processes in the enterprise are as follows:

1. The impact of dispatching on resource allocation efficiency (such as vehicles, personnel, and equipment [5]) allows for precise identification of the resources required for specific tasks or orders and introduces changes in distribution processes to minimize unnecessary costs or delays in task execution.

2. The impact of logistics dispatching. These processes can adjust supply or transportation routes. Essentially, this process helps reduce fuel costs, minimize travel time, and promote fast delivery [3].

3. The impact of dispatching on the timeliness of resource allocation monitoring. Modern dispatching systems allow tracking the movement of vehicles or the execution of resource allocation tasks in real time, including order placement, production operations, and more [1]. It enables operators to quickly respond to changes, address issues, and manage processes in real time.

4. The impact of dispatching on customer satisfaction levels. Dispatching helps create the most accurate and reliable picture of goods delivery or customer service. It makes customers more satisfied and contributes to their loyalty.

5. The impact of dispatching on the safety of logistics operations and personnel work. Through dispatching, managers can identify hazards, prevent accidents, and take measures to prevent them.

6. The impact of dispatching on the efficiency of workforce utilization through realtime planning and task assignment processes for employees.

7. The impact of dispatching on the level of business expenses and profitability. Through dispatching, managers can reduce management and operational costs, thereby increasing the profitability of the enterprise.

8. The impact of dispatching on the scalability of the business. Managers can efficiently scale their business through dispatching by expanding their geographical service coverage.

In general, improving dispatching processes is a critical component of operational management that involves optimizing and enhancing the ways of managing and coordinating the movement of resources in real time. It enables enterprises to provide more accurate and efficient product delivery or service provision, reduce costs, increase customer satisfaction, and enhance competitiveness.

Considering that optimizing dispatching processes is becoming increasingly important for modern enterprises due to constant changes in the business environment and growing competition, it is crucial to systematize the experience of successful companies (to assist other businesses in understanding the specific steps and strategies that have led to positive outcomes [3]) (see Table 1).

Table 1. Analysis of successful enterprises case studies in improving dispatching

Source: formed based on [5]

The cases mentioned above demonstrate that the improvement of dispatching processes shares common characteristics across enterprises as it addresses one or several of the following directions, including:

1. Enhancing business efficiency (by avoiding unnecessary time and resource expenditures, improving asset utilization, and reducing costs).

2. Increasing customer satisfaction (by ensuring timely delivery of goods or services [2]).

3. Creating competitive advantages in various business sectors (such as fast delivery, service accuracy, or cost reduction [6]).

Improving operational plans is a critical element of operational management for enterprises in all industries, as it influences the nature of tasks executed by the operations department to achieve the strategic and tactical goals of the company (see Figure 2).

Figure 2. Components determining the importance of improving operational plans in an enterprise

Source: formed based on [2; 4; 6-7]

The features that determine the importance of improving operational plans in an enterprise are as follows [2; 4; 6-7]:

1. The impact of operational plans on the accuracy of operations execution. Managers use these plans to clearly define the sequence and schemes for performing operations.

2. The impact of operational plans on resource utilization efficiency. Managers use these plans to adjust costs and productivity.

3. The impact of operational plans on algorithms for responding to unforeseen circumstances or crisis, such as supply interruptions, natural disasters, or technical failures (individual algorithms are developed for preparing for unforeseen

4. circumstances, prioritizing critical tasks, conducting checks, and assessing responses to crisis, etc.).

5. The impact of operational plans on the productivity and efficiency of operations. Managers can optimize operational processes and avoid excessive time and resource expenditures through such plans.

6. The impact of operational plans on the level of coordination of actions. Managers can coordinate the actions of different departments and employees through such plans, ensuring a common action plan to support the normal operation of the enterprise.

7. The impact of operational plans on the level of product or service quality: Managers can create or transform quality control and standardization processes through such plans, improving the quality of products or services.

8. The impact of operational plans on adaptation to new business conditions: Managers can quickly update the business format to adapt to changes in demand, technology, or competitive factors.

9. The impact of operational plans on competitiveness: Managers can adjust the competitiveness of the enterprise in the market by modifying the quality of products or services and pricing policies.

In general, improving operational plans helps businesses become more efficient, adaptive, and competitive, as evidenced by the analysis of successful companies' experiences (see Table 2).

It's important to note that operational plans are tailored to the needs of each enterprise and changes in the external environment. Therefore, the cases mentioned above demonstrate that improving operational plans helps companies achieve specific and individualized results, such as:

1. Overall cost minimization in response to changes in the external environment.

2. Improved customer service.

3. Minimizing production downtime in response to changes in the external environment.

4. Increasing productivity in specific operations.

5. Quickly adapting product assortments and production plans to changes in the external environment.

Indeed, the customization of improvements to operational plans, and their focus on achieving specific goals, helps companies become more adaptable and effective in the face of a changing external environment and competition.

Analyzing successful business cases in improving operational plans and dispatching reveals that the optimization scheme for dispatching can be generic (encompassing standard processes and requirements [2]), while the improvement scheme for operational plans is unique (though it may be standardized by a combination of common steps [3]). The optimization scheme for dispatching can be standardized regarding its main stages and components (see Figure 3).

Figure 3. General dispatch improvement scheme in enterprises

Note

1. Evaluation of current dispatch processes to identify weaknesses and potential improvements.

2. Setting specific dispatch improvement goals, such as reducing delivery times, optimizing routes, or improving resource utilization.

3. Developing a strategy and improvement plan, including the selection of technologies, methods, and tools that will help achieve the set goals.

4. Implementation of new dispatch processes, including updated software solutions, staff training, and the creation of new procedures.

5. Testing of new processes and systems, as well as verifying their effectiveness and alignment with the set goals.

6. Continuous monitoring of new processes and data collection for results analysis. Identifying key performance indicators and tracking their dynamics.

7. Error correction, adjustments, and optimization of new processes based on monitoring results.

8. Ongoing support and maintenance of improved dispatch processes to ensure consistent efficiency.

9. Evaluation of improvement results and auditing to verify compliance with standards and the effectiveness of new processes.

Source: formed based on [1; 4; 6-7]

Table 2. Analysis of successful companies' cases in improving operational plans.

Source: formed based on [5]

In fact, such a scheme includes the following elements: analysis of the current state, setting goals and objectives; development of improvement strategy; making changes and implementing new processes; testing and validation; monitoring and analysis of results; making corrections and optimizations; staff training; implementation and support; assessment and audit of improvements.

The scheme for improving enterprise operational plans can only be standardized in terms of a set of general steps (Figure 4), which include evaluating current operational plans and processes, determining key performance indicators, developing an improvement algorithm for operational plans, implementing changes, testing, and validating changes, monitoring the performance of new plans, optimization, and continuous improvement of operational plans.

Figure 4. Enterprise operational plans improvement scheme

Note

1 Key Performance Indicators (KPIs) are an essential tool for measuring the success of enterprise operational plans improvement. They help determine whether the set goals have been achieved and whether the improvement process is progressing successfully.

Source: formed based on [1; 3]

It should be noted that the overall scheme for improving dispatching at an enterprise should define the general direction of this process, which is evident according to research [1; 3; 6-7]. The scheme for improving operational plans should help enterprises systematically address their unique operational needs and requirements that need to be considered within the framework of relevant plans, ensuring their relevance, effectiveness, and alignment with strategic goals, which is evident according to research [2; 3; 5].

Conclusions from this study and prospects for further exploration in this area

Based on the analysis of successful companies' cases in improving operational plans and dispatching, the following conclusions can be drawn:

1. The research results confirm that case studies of enterprises (such as Amazon, Walmart, FedEx, Delta Airlines, Zara, and so on) demonstrate that effective operational plans and dispatching contribute to gaining competitive advantages, ensuring customer satisfaction, and achieving other significant outcomes.

2. The dispatching improvement scheme can be standardized concerning its main stages and components. In fact, this scheme includes the following elements: analysis of the current state, setting goals and objectives, development of improvement strategy, implementing changes and new processes, testing and validation, monitoring, and analysis of results, making corrections and optimizations, employee training, implementation and support, evaluation, and audit of improvements. It should be noted that this scheme should define the general direction of the dispatching improvement process within the enterprise.

3. The scheme for improving the operational plans of an enterprise can only be standardized in terms of a set of general steps, including evaluating current operational plans and processes, defining key performance indicators, developing an algorithm for improving operational plans, implementing changes, testing, and validating changes, monitoring the performance of new plans, optimization, and continuous improvement of operational plans. It should be noted that this scheme is intended to systematically address the unique operational needs and requirements of the enterprise.

The obtained results create opportunities for further research in the outlined field, aimed at determining how the use of modern technologies impacts the improvement of operational plans and dispatching.

Література

1. Архіпов Н.М. Напрями підвищення ефективності операційної діяльності підприємства роздрібної торгівлі, Бізнес-інформ, 2018, Вип.6. С. 215223.

2. Бєляєва С. В. Процесний підхід як основа операційної стратегії. Вісник Хмельницького національного університету. 2009. Вип. 3. Т. 1. С. 19-22.

3. Деордієва, В. А., Ільїна А. С. Операційний менеджмент: сутність і роль у забезпечені конкурентоспроможності організацій, Ефективна економіка, 2013, Вип. 6, URL.: http://www.economy.navka.com.ua/?op=1&z=2124

4. Mashika H. Zelic V. Kiziun A., Maslyhan R. Services sphere cluster management: virtualization and methodological aspects, 2023. Odesa: KUPRIENKO

S.V

5. PricewaterhouseCoopers database. PwC report"The analysis of the

trends in changes in accounting,management, and marketing at both regional and globallevels",2023,URL:

https://www.pwc.com/content/pwc/userReg/login.en_gx.html?redirecfUrl=gG0V- 55Ilpsw21J2UMYgbIH5ktcJLK2-lwWPau2GN84=&-referrer=gG0V-55Ilps w21J2UMYgbIH5ktcJLK2lwWPau2GN84=&parentPagePath=/content/pwc/gx/en

6. Саричев Д.О. Управління ефективністю операційної діяльності підприємства. Стратегія економічного розвитку України. 2012. № 30. С. 136-143.

7. Швайка Л.А. Планування діяльності підприємства : навчальний посібник. Львів, 2004. 268 с.

References

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https://www.pwc.com/content/pwc/userReg/login.en_gx.html?redirectUrl=gG0V- 55Ilpsw21J2UMYgbIH5ktcJLK2-lwWPau2GN84=&-referrer=gG0V-55Ilps w21J2UMYgbIH5ktcJLK2lwWPau2GN84=&parentPagePath=/content/pwc/gx/en. (Accessed 24 February 2023).

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