Describe about the Analytical Business Report for Converting of Varieties.
Operation management is defined as the converting of varieties of input to its usable output through the use of a physical process. Operation management aims at productively utilizing the available resources creating products to meet the customer requirement thereby efficiently handling the processes. The responsibility ensures continuous production in the company having no interruptions (Brown, Bessant & Lamming, 2013).
There are six major aspects that this assignment handles, these are capacity management, and lean production techniques, process and product design, organization and system development, supplier development strategy and performance and improvement strategy. These aspects are important for every type of business organization even if it is a service company, manufacturing or retail industry. Proper planning of these creates a place in market and also helps gain the competitive advantage (Foropon & McLachlin, 2013).
There is a need for change in operation management strategies if significant input change is seen relating to material, capital, labour or information technology. It also implements change in the volume or demand variety of the product because of various market factors. Therefore, the company needs to change in their information technology or process technology or arrange the process (Hill & Hill, 2012).
In this assignment, professional management have analysed these main aspects by putting an organization which is considered as one of the largest automobile company (Hendricks, Hora & Singhal, V2014). It is also known because of its high-quality product and thus implements techniques of operation management effectively in the assembly line over its progress.
The organization is considered to have a bright future with top current sales marking. It has also made its worldwide presence along the road to manufacturing and assembly lines in the developed countries of the world. As one of the expanded winged company producing a leading car that keeps the safety of passengers as a top priority (Hitt, Xu & Carnes, 2016). Even during any financial crisis, the net revenue resulted in increased operating income. Here I have outlined to the identification of current organizational operations practices that are discussed below:
In this strategy, similar equipment and functions are arranged together, and operations are carried out as per the prior sequence. In product layout, the operations are involved to make a product to be arranged in sequence for availing the optimum results (Langabeer & Helton, 2015). Here group technology keeps a group of the non-similar machine in the centre working over products that are similar in shapes and sizes. The product remains in a single orientation and machines that produce the product gets moved.
The organization allows standardized work system for managers and top management to identify the waste immediately and arrange to improve it. I have depicted the plant layout which handles the molding, press body, the welded parts, and assembly.
Capacity Management
The organization has been fighting lacking with space problem and after redesigning the company started using the just in time management system. The organization uses U-manufacturing concept thereby making maximum utilization avail space and capacity (Krajewski, Ritzman & Malhotra, 2013). It cannot produce larger batch size instead uses small batch to manufacture the system. This allows the company is overcoming space the problem and utilizes other available capabilities to bring into a maximum level.
The organization uses the common process for production for common machines for too much product lines. Afterwards, they started to use the multi machine and process handling mechanism where workers and machine both were handling more than one operations thereby reducing the lead time.
Organization and System Development
Since the company wants to eliminate the waste completely, it uses just in time system to produce the amount necessary. This concept was deeply rooted in the assembly system of the organization, and so they could know the number of vehicles and their types, colours, and accessories that would be assembled each day (Langabeer & Helton, 2015).
The just in time or JIT concept has helped in reducing the wastage time that was spent in waiting, wastage of processing, inventory and movement, wastage of reprocessing and other defects which had occurred because of over production. It uses this continuous flow mechanism for the production system.
Lean Production
The lean concept application in the system means to optimize the usage time and available techniques. Various tools are utilized in this lean production process these standardized production systems are Kaizen, Kanban, Jidoka, etc.
Lean production concept is implemented for the organization using various tools. The planning to production is made as per JIT and Heijunka and to take the concept of quality it is maintained through Jidoka. Jidoka helps in ensuring the quality production thereby reducing the continuous supervision and saving in its place time and resources (Krajewski, Ritzman & Malhotra, 2013). In the case of Kanban, the inventory requirement is planned, and it’s an accurate procedure that needs no extra stock of inventory. Again there is no delay because of the non-availability in the inventory.
Kaizen process involves two components and includes the maintenance and improvement means. Its purpose is to maintain the technological and operating standards thus utilizing the capacity in optimizing the level. Most important aspect of Kaizen process does not only implement the tools but also helps to maintain in a continuous flow (Khanna, 2015). The management objectives need total commitment in order to train their employee so that they will follow the Kaizen principles involving costs so that company will make sure to have optimum utilization of its various tools and techniques.
The organization has set examples to maintain the kaizen principles. Since it has top level management that is committed to quality goal it has therefore well-trained team that understands the importance of quality service (Lutz, Birou & Kannan, 2014). Here the staffs hired are committed and skilled and have adopted the Kaizen principles in the manufacturing process of the production system.
Process Technology Strategy
The company has implemented this model concentrating on creating a continuous flow operation with through the help of standardization.
The manufacturing process used is highly technical and uses best possible technologies available. It has made and defined this process and has integrated the manufacturing technology with both process and systems. It has also developed the general capabilities to handle these process and technologies. This holistic decision-making arrangement to handle the operation is used to pull technique and logistic works over the minimum time lead concept.
Performance and Improvement Strategy
The principles of the organization are reducing set up times and making the production in small batches and employee empowerment is establishing at every possible place. This high level of technology usage and management reduces lead times and lessen the holding costs and involves as a final supplier in the kaizen techniques (Radnor et al., 2015). For succeeding in this competitive world, it has trained the employee to put their effort to make small changes in implementing the quality control technique.
Here the 4ps model suggests the continuous improvement and helps to make strategies thereby eliminating all kinds of wastes. Also, the company assigns authorities and power to people and partners who stand as the strategic asset to the company.
Main Factors affecting change in Operation Management
This management comprises of three main processes including input, output, and processing. For every significant change in the input will surely change in the output and also in the processes thereby affecting the overall operating management procedure. The input to the operations is counted as material, labour, physical machines, information technology, capital, etc. Again when a company operates in the international scenario, it shows that company that makes changes in the operation accounting to adjust the national culture (Roeder & Roeder, 2013).
Conclusion/Recommendations
The organization manages all front operations management very effectively. The process technology that it uses ensures the continuous production flow and its design and facility shows the arrangement made to use multiple machines for a single product. It has used this standardized procedure for operation management. In the case of capacity management, the machines use ration for every machine that speaks highly to utilize maximum capacity. For lean production, technique uses the Jidoka and Kaizen principles they produce in small batches operating at zero level of inventory (Radnor et al., 2015). This shows that products are manufactured with the demand placed as like. Finally, the company supplier forms an important role, and the organization supplies the development done through the relationship management. Here the suppliers are chosen carefully made as part of the company making sure that they stick as per the company’s quality and other norms. Thus it could be concluded that the company is the best possible example to understand the importance of the operation management and its procedure.
References
Brown, S., Bessant, J. R., & Lamming, R. (2013). Strategic operations management. Routledge.
Chase, J. (2012). Operations management. Tata McGraw-Hill.
Foropon, C., & McLachlin, R. (2013). Metaphors in operations management theory building. International Journal of Operations & Production Management, 33(2), 181-196.
Galindo, G., & Batta, R. (2013). Review of recent developments in OR/MS research in disaster operations management. European Journal of Operational Research, 230(2), 201-211.
Hill, A., & Hill, T. (2012). Operations management. Palgrave Macmillan.
Hendricks, K. B., Hora, M., & Singhal, V. R. (2014). An empirical investigation on the appointments of supply chain and operations management executives. Management Science, 61(7), 1562-1583.
Hitt, M. A., Xu, K., & Carnes, C. M. (2016). Resource based theory in operations management research. Journal of Operations Management, 41, 77-94.
Langabeer II, J. R., & Helton, J. (2015). Health care operations management. Jones & Bartlett Publishers.
Krajewski, L. J., Ritzman, L. P., & Malhotra, M. K. (2013). Operations management: processes and supply chains. New York: Pearson.
Khanna, R. B. (2015). Production and operations management. PHI Learning Pvt. Ltd..
Lutz, H., Birou, L., & Kannan, V. R. (2014). Analysis of higher educational offerings in operations management. International Journal of Information and Operations Management Education, 5(4), 297-310.
Peng, D. X., & Lai, F. (2012). Using partial least squares in operations management research: A practical guideline and summary of past research.Journal of Operations Management, 30(6), 467-480.
Radnor, Z. J., Bateman, N., Esain, A., Kumar, M., Williams, S. J., & Upton, D. M. (Eds.). (2015). Public Service Operations Management: A Research Handbook. Routledge.
Roeder, T. M., & Roeder, K. N. (2013, December). An experiment in teaching operations management to sixth graders using simulation. In Proceedings of the 2013 Winter Simulation Conference: Simulation: Making Decisions in a Complex World (pp. 3600-3608). IEEE Press.
Slack, N. (2015). Operations strategy. John Wiley & Sons, Ltd.
Slack, N., Brandon-Jones, A., & Johnston, R. (2013). Operations management.
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