Hurry Up! Get 15% Please upload the order before 30th April, 2019. T&C applied Order now !
review
Back to Samples

Operation Management on BPO

Table of Contents

Introduction. 3

Background of the Case Study. 3

Operational problems. 4

Business Process Outsourcing. 4

Six Sigma project 5

Supply Chain Management System.. 6

Health and Welfare Service Delivery Process. 7

SWOT Analysis. 8

Recommendations. 9

Development of an action plan. 10

Critical analysis of the subject 11

Conclusion. 12

Reference List 13

 

Introduction

This assessment describes the professional ill management of a scenario which consists of two companies and their operational activities. Operational management is one of the most important aspects of any industry or organization. Operation management involves from the inserting of the raw materials in the production cycle to the output of the final products in the economy market. This business study also gives some brief views on Business Process Outsourcing System and Supply Chain management system to understand the situation of the scenario properly. The total incident is happening between a Business Outsourcing company’s management systems, the clear understandings of the supply chain and Process management help to understand the processing of the organization clearly. Moreover, this assessment also describes the concepts of the case study which is relevant to the scenario and helps in analysis of the picture clearly. This assessment describes some arguments which are evidence-based and completely related ........

5

Supply Chain Management System.. 6

Health and Welfare Service Delivery Process. 7

SWOT Analysis. 8

Recommendations. 9

Development of an action plan. 10

Critical analysis of the subject 11

Conclusion. 12

Reference List 13

 

Introduction

This assessment describes the professional ill management of a scenario which consists of two companies and their operational activities. Operational management is one of the most important aspects of any industry or organization. Operation management involves from the inserting of the raw materials in the production cycle to the output of the final products in the economy market. This business study also gives some brief views on Business Process Outsourcing System and Supply Chain management system to understand the situation of the scenario properly. The total incident is happening between a Business Outsourcing company’s management systems, the clear understandings of the supply chain and Process management help to understand the processing of the organization clearly. Moreover, this assessment also describes the concepts of the case study which is relevant to the scenario and helps in analysis of the picture clearly. This assessment describes some arguments which are evidence-based and completely related to the topic. Concepts of the Business Process Outsourcing and supply management system also described here to address the related issues completely. Six sigma policies which are running to address the operational problem more clearly and effectively are discussed here. Lastly, critical recommendations for shortcomings and their respective action plan of 18 months are also described in this study report. 

Background of the Case Study

This business report describes a scenario regarding operational malfunctioning in an organization. There is some operational problem in the organizational activities of a BPO firm. The main incident occurred when Allen J. Lauren, the executive vice president of the company BPO Inc. got an email message from the CEO of the company HA, one of the most important clients of BPO Inc. which reported his in satisfaction in the course of dealing with the company BPO Inc. Operational management is one of the unavoidable concepts of handling any organization. Improper management of the supply management or the operations can causes harm for the organization. It also can leads to the loss of the customer base, decrease in the revenue earning and loss in the economy market. However, the CEO of the company HA accused the BPO Inc of their improper business management which is not up to the mark of the level of the need for the HA’s officials. The CEO of the respective company asked to generate an audit in full length in all the transactions occurred between BPO Inc. and HA. Considering the problems between the relationship of HA and BPO Inc., they need the complete cooperation from both side, and they will also arrange some external officials for the audit. Depending upon the result of the audit the company HA would negotiate their further contract. However, the executive director AJ. Allen called the vice president of operations and assistant director of quality Ethan Ekans and Jerry Small respectively for a meeting to ask them if it is an isolated event or a common event. Moreover, for this concern, the senior management team would review the operations of the business in mid-July. At that time the quarterly meeting of the performance review would be addressed is higher officials. This concern will be a high pace agenda in this organization.     

Operational problems

Business Process Outsourcing

As commented by Jinet al. (2015), business process outsourcing generally defines a service which contracts the business functions and activities of nonprimary to the provider from the third party. This specific service mainly included the payroll, accounting, customer as well as call centre relations and most importantly human resources. On the other hand, business process outsourcing also works as the services which are related to the information technology. This particular service divides into the two aspects of back office and front office outsourcing. According to Shabanpour-Haghighi&Seifi (2015), back office outsourcing deals in the quality assurance, surveys, accounting support and data management, data entry, purchasing o billing whereas the front office deals with the tech support and marketing. The back office generally works on the office tasks which are related to the core business of the company’s process and helps in running the business smoothly. The front office of this organization deals with the interactions with the customer services. The services like the phone calls, emails, faxes are included in this front office of business process outsourcing.

However, in this case, thestudy also, the BPO Inc. is a service professional organization under fortune 500 and provides different kinds of services from the risk management to the consulting management. The respective organization works over countries near about 100 with 500 offices and 50,000 employees. This BPO organization works under three segments like insurance brokerage, a compensation consulting and most importantly human resource consulting.  As described by Deihimi, Zahed&Iravani (2016), this study, stated that increased amount of competitiveness leads to adaptation of the cost-effective procedures for the organization thus, the effectiveness of the outsourcing is increasing day by day. In this case study also Forrester stated that the outsourced process of their operations accounted up to 80% for next two years. Moreover, the process of outsourcing also involves the tight schedules, crazy work hours and tight budgets, though the process of outsourcing expected to give best results in minimum cost levels.   

Six Sigma project

As commented in this case study the company BPO Inc. used the six sigma procedures in its Health and Welfare Service Delivery Project. The project is sponsored, owned by the officials of BPO Inc. The running of the six sigma projects also helps in the efficiency and effectiveness of the respective subjects. As commented by Zareet al. (2016), these particular six sigma policies of this policy based on particular five steps which consist of measure, analyze, improve and control.

Define

  • Helps in describing of different voices of the customers, their specific needs, more specifically the goals and visions of the project.
  • Expected date of completion of the step is March 11, 2005.

Measure

  • Expected date of completion of this particular step is 1stApril 2005.
  • As commented by Shepherd &Patzelt (2013), this particular step is consists of the proper, measurement of the collection of the related data, specific processes and project objectives

Analyze

  • Helps in the analysis of the data for the purpose of verification and investigation of the relationships of the products.
  • Date of completion is near about April 29, 2005.

Improve

  • Estimated date of the ending of this particular step is June 3rd, 2005.
  • As stated by Liet al. (2016), proper improvisation and optimization of the specifically present process done through the analysis of the data using designs, making techniques of proofs.

Control

  • As commented by Wakuiet al. (2016), this step helps in ensuring the correction of the particular turbulences in any type of targeted places.
  • Date of completion: July 1st, 2005.

The one and only particular goal of the project is to develop a stimulation model on the specific health and welfare delivery services. As commented by Ribeiro & de Sousa Jabbour (2017), these six sigma policies also help in the obtaining results from this particular model which is consistent with this baseline of the metrics of the performances. Moreover, this also boots the performance of the other officials of the company by measuring the improvements of the processes.

Supply Chain Management System

The supply chain management system is one of the most useful activities in any organization or industries. According to Mohammadi, Soleymani&Mozafari (2014), this type of management mainly consists of the flow of the services and the goods and involves the storage and movement of the raw materials. Moreover, this supply management also deals with the invention process of work in a cycle and the cycle of the finished goods from the portions of the consumptions. In this case study, the supply chain management system is interlinked or interconnected of the networks, channels and other node of the businesses which help in the combination of the provisions of the services and products which are needed by an end client in the specific supply chain.

On the other hand, the supply chain management system in this case study is oversight the finances, materials, and information which helps in the moving procedures of the from retailers to consumers or from manufacturers to wholesalers. Supply chain management system involves the integrating and coordinating theses particular flows both among and within thesesrespective companies. As commented by Parisio&Glielmo (2013), the main mission of this supply chain management system of this company is to the reduction of the consumption procedures and induces the cost-effective measures in the process of production. 

Health and Welfare Service Delivery Process

As discussed in this case study, the Health and Welfare service provides the products and services on the dental, vision, survivor and medical benefits plans to their 18 clients firms. As commented by Fullerton, Kennedy & Widener (2014), this group of services provides administrative tasks like enrolling of benefits plans in the sponsored company, changing the options for the benefits, giving assistance to the companies, answering questions about the coverage. Moreover, the services also provide its products and services under the circumstances of performed in-house objectives in the formerly performed clients and update the depending information. As commented by Sedaghati&Kavousi-Fard (2014), this particular service interfaces its client organization into two levels like organizational and participant level. Operation management involves from the inserting of the raw materials in the production cycle to the output of the final products in the economy market. As stated by Hajmohammadet al. (2013), this organizational level provides the weekly update of this particular employment database to the client base or the organizations.

This specific type of database list consists of all the employees, their employment status, employee’s salary and most importantly their position. This ensures the eligibility of the employees and their level of the coverage. In order to Zhang, Shah &Papageorgiou (2013), in the participant level, an individual employee can contact to the respective services directly or the through the phone, web indirectly. This type of services mainly comes from the newly appointed employees who are n the need of enrolling in the beneficiary plans in the sponsored company. Participants are also called for the services when they need some information about their coverage. Moreover, this particular type of the participants needed to change the options in their beneficiary sections. As described by Heaslip (2013), there is theatypical contractual basis of the relationship between the business process outsourcing and the health and welfare series. Moreover, this business outsourcing also established the handling of the communication system like eighty percent calls within twenty seconds or less than that. There are two sub-processes which act as primary and works upon the welfares of the clients.     

SWOT Analysis

SWOT Analysis is a planning method that could evaluate the Strengths, Weaknesses, Opportunities and Threats, which are involved in the following business venture of the BPO, incorporated Call Center.

Strengths

  • The company is known as the leading provider of the market intelligence in terms of IT and communication industries that have projected outsourcing sales by about 29.8 percent CAGR (compound annual growth rate).
  • The BPO Company also has defined the administration benefits in terms of retirement plans and pensions with employee benefit services round the clock with employee’s service earnings.
  • The Database Update sub-processes that began with benefits administrator (BA) received weekly Employment Database updates from client firms (Sugumar, Kumaran, Raj & Xavier, 2013),
  • The benefits administrator also determined the eligibility of major participants that had taken charge of the records of new employees on an increasing base.

Weaknesses

  • There was no such emphasis made on the business relations while the pending outcomes became too necessary to re-negotiate the contract.
  • The benefits administrator was also determined withparticipant eligibility because there was no such subject inspection process that could see the errors after loading data (O'Neill et al., 2013). 
  • Unlike, Participant Care sub processes had a lot of inquiries related to the benefits program of the company, and this has to be improved with a responsive system efficiently.

Opportunities

  • Due to specializing, the particular business process of the company resolved well with providers to offer clients with improved quality, faster innovation, economies of scale and widespread process expertise (Samantra, Datta&Mahapatra, 2014).
  • Due to increasing popularity, BPO’s fastest-rising businesses offered opportunities like health care benefits that are defined with medical and dental vision, which enrolled employees in program reporting.
  • On completing the project charter, the measured phase turned down the attention with an opportunity for developing the process map of Health and Welfare Service Delivery process.

Threats

  • The update sub-processes defined with the researching calls did escalate with the CSR programs, but the tasks associated imposed a wide threat on the escalated calls (Kim et al., 2014).
  • The major threat the company faced is the process of developing the process map, which mainly integrated with Database Update sub-process. This was mainly done with a batch mode with the help of Participant Care sub-process.

Recommendations

The major recommendations that are to be followed for improving the services of the company are as follows:

It is been suggested to create a new case managing position of the company between BAs and the CSR. This is where the managers could critically handle the issues with CSRs, which ere is handling off to the Base. Besides, it is also recommended to provide CSRs additional training so that they can handle more issues in order to reduce the escalated calls. Moreover, the pay scale of the case managers must be increased more than $35,000 per year. There should also be an additional discount made on the taxes and benefits.

Accordingly, it is also recommended to the company to continue the operations of BPO service and evaluate the possible services in case ofHealth and Welfare Service Delivery Procedure. Unlike, as this is a fundamental service, there should be incremental improvements in the current procedure. While looking onJerry's baseline, it is well recommended to increase the performance metrics so that suspicion could be unique with the utilized resources. Moreover, this could work out by improving the profitability of options with the expense of service levels.

 

Development of an action plan

For the Action Plan defined for the company, an overview for its deliverables is defined with the project overview to its associated plans

 

Deliverables

 

Time Frame

Month

1-2

Month

3-4

Month

5-6

Month

7-8

Month

9-10

Month

11-12

Month

13-14

Month

15-16

 

Month

17-18

Project Overview

 

 

 

 

 

 

 

 

 

Staffing and Project Organization

 

 

 

 

 

 

 

 

 

Technical Process

 

 

 

 

 

 

 

 

 

Project Control and Training

 

 

 

 

 

 

 

 

 

Project Resources

 

 

 

 

 

 

 

 

 

Management Plan

 

 

 

 

 

 

 

 

 

Software Quality Plan

 

 

 

 

 

 

 

 

 

Associated Plans

 

 

 

 

 

 

 

 

 

Budget and Cost

 

 

 

 

 

 

 

 

 

                     

 

Table 1: Action Plan

(Source: Author)

Critical analysis of the subject

The critical analysis of the subject allures on the increased competition that is forcing the organizations in virtual industries to reduce the cost and improve services. Due to the specialized process, BPO sector provider’s offers clients to have faster innovation in them. According to Sugumar, Kumaran, Raj & Xavier (2013), BPO at the same time has offered primary services with a defined contribution in terms of health and welfare. While the productive benefits account for high revenues so that, the contribution to the services could be negligible. O'Neill et al. (2013) opines that the client of HRO group in this sector is also very interested inpotential cost savings, which could outsource the process efficiently. Rather, the EBO group’s has worked very well with the administered, dental and the benefit plans intended for the client’s area. However, the EBO group has also interfaced well with the organization process so that there could be weekly updates in Employment Database.

On the other hand, Mani, Barua&Whinston (2012) argues that at the participant level, most of the individual employees are been contracted via Web and phone to resolve such programs. Accordingly, these types of requests are mainly needed to enrol company's sponsored benefits. In case of the database process of the subject, it is analyzed critically about how BAs work with the clients. Once BA corrects the errors, they are been determined with participant's eligibility that takes charge in records of new employees. However, it is also analyzed that the Participant Care sub-processes begins with the inquiries that have to be assisted well with company-sponsored benefit programs. Unlike it is researched in such a way where CSR outcome of the escalated issue is analyzed with the outcome is very important (Lacity& Willcocks, 2012). This is where a priority is a need for the Database Update sub-process over the researching calls, which are been escalated. It is also analyzed that on developing a simulation model of Health and Welfare Service could help to identify the operational problems in the key performance areas.

Conclusion

Operation management consists of the inserting of the raw materials in the production cycle to the output of the final products in the economy market. Operational management is one of the most important aspects of any organization and industry. This assessment stated some arguments which are evidence-based and completely related to the topic. This assignment described some professional and management hazards of a scenario which consists of two companies and their operational activities. This assessment described the concepts of the case study which is relevant to the scenario and helps in analysis of the picture clearly. This business study also gave some brief views on Business Process Outsourcing System and Supply Chain management system to understand the situation of the scenario properly. Six sigma policies which are running to address the operational problem more clearly and effectively are described here. The total incident is happening between a Business Outsourcing company’s management systems, the clear understandings of the supply chain and Process management help to understand the processing of the organization clearly. Critical recommendations for shortcomings and their respective action plan of 18 months are also stated in this study report. Lastly, concepts of the Business Process Outsourcing and supply management system also described here to address the related issues completely.

 

 

Reference List

Deihimi, A., Zahed, B. K., &Iravani, R. (2016). An interactive operation management of a micro-grid with multiple distributed generations using multi-objective uniform water cycle algorithm. Energy106, 482-509.

Fullerton, R. R., Kennedy, F. A., & Widener, S. K. (2014). Lean manufacturing and firm performance: The incremental contribution of lean management accounting practices. Journal of Operations Management32(7), 414-428.

Glaister, A. J. (2014). HR outsourcing: the impact on HR role, competency development and relationships. Human resource management journal24(2), 211-226.

Hajmohammad, S., Vachon, S., Klassen, R. D., &Gavronski, I. (2013). Lean management and supply management: their role in green practices and performance. Journal of Cleaner Production39, 312-320.

Heaslip, G. (2013). Services operations management and humanitarian logistics. Journal of Humanitarian Logistics and Supply Chain Management3(1), 37-51.

Jin, C., Djurdjanovic, D., Ardakani, H. D., Wang, K., Buzza, M., Begheri, B., ...& Lee, J. (2015, August). A comprehensive framework of factory-to-factory dynamic fleet-level prognostics and operation management for geographically distributed assets. In Automation Science and Engineering (CASE), 2015 IEEE International Conference on (pp. 225-230). IEEE.

Kim, K., Mithas, S., Whitaker, J., & Roy, P. K. (2014). Research Note—Industry-Specific Human Capital and Wages: Evidence from the Business Process Outsourcing Industry. Information Systems Research25(3), 618-638.

Lacity, M., & Willcocks, L. (2012). Outsourcing business and IT services: the evidence of success, robust practices and contractual challenges. Legal Information Management12(1), 2-8.

Li, F., Nucciarelli, A., Roden, S., & Graham, G. (2016). How smart cities transform operations models: a new research agenda for operations management in the digital economy. Production Planning & Control27(6), 514-528.

Mani, D., Barua, A., &Whinston, A. B. (2012). An empirical analysis of the contractual and information structures of business process outsourcing relationships. Information Systems Research23(3-part-1), 618-634.

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 Systems54, 525-535.

O'Neill, J., Roy, S., Grasso, A., & Martin, D. (2013, April). Form digitization in BPO: from outsourcing to crowdsourcing?. In Proceedings of the SIGCHI conference on Human factors in computing systems (pp. 197-206). ACM.

Parisio, A., &Glielmo, L. (2013, July). Stochastic model predictive control for economic/environmental operation management of microgrids. In Control Conference (ECC), 2013 European (pp. 2014-2019). IEEE.

Ribeiro, D. A., & de Sousa Jabbour, A. B. L. (2017). Operation management for a low-carbon economy&58; a literature review on stakeholders, barriers and motivations. GEPROS: Gestão da Produção12(1), 193-210.

Samantra, C., Datta, S., &Mahapatra, S. S. (2014). Risk assessment in IT outsourcing using fuzzy decision-making approach: An Indian perspective. Expert Systems with Applications41(8), 4010-4022.

Sedaghati, R., &Kavousi-Fard, A. (2014). A hybrid fuzzy-PEM stochastic framework to solve the optimal operation management of distribution feeder reconfiguration considering wind turbines. Journal of Intelligent & Fuzzy Systems26(4), 1711-1721.

Shabanpour-Haghighi, A., &Seifi, A. R. (2015). Multi-objective operation management of a multi-carrier energy system. Energy88, 430-442.

Shepherd, D. A., &Patzelt, H. (2013). Operational entrepreneurship: How operations management research can advance entrepreneurship. Production and Operations Management22(6), 1416-1422.

Sugumar, D., Kumaran, C. M., Raj, P. J., & Xavier, S. J. (2013). Addressing health related challenges faced by the business process outsourcing (BPO) employees by stress. African Journal of Business Management7(12), 906.

Wakui, T., Kawayoshi, H., Yokoyama, R., & Aki, H. (2016). Operation management of residential energy-supplying networks based on optimization approaches. Applied Energy183, 340-357.

Zare, M., Niknam, T., Azizipanah-Abarghooee, R., &Ostadi, A. (2016). New Stochastic Bi-Objective Optimal Cost and Chance of Operation Management Approach for Smart Microgrid. IEEE Transactions on Industrial Informatics12(6), 2031-2040.

Zhang, D., Shah, N., &Papageorgiou, L. G. (2013). Efficient energy consumption and operation management in a smart building with microgrid. Energy Conversion and Management74, 209-222.