In the manufacturing industries, operations and technology management is a factor of main focus. Technology comes around in many forms, including information, enterprise system, internal and outsourced infrastructure. Given the rapid nature of change of technology, research is being done to ensure all the operations carried out are well managed. Success in most business comes as a result of competition and its measure needs a detailed analysis (Bakker, 1962 pp200-281) and for one to make a better move, decisions based on cost, time quality and flexibility must be given a priority, (Voss, C., 2010).
Cost
Pricing of products can be confusing and may lead to more doubts in a business if not well considered. While in between a challenge of not charging less that the product’s worth, the decision maker is also tasked with the duty of considering not to price oneself out of the market. Considering the cost of running the business, the most common is the direct cost which is monthly based which you can avoid and the direct cost for instance the production and delivery costs, (Voss, C., 2010). The customers around you really add to cost management, do they need cheap products or is it the quality that they need. Once you understand their demands, this can also be a factor to position your business in terms of standards whether if you’re a luxurious entrepreneur or a high end in the industry and finally the profit which you are capable of making within a given time.
Any profit making business considers time as a main factor which if well managed can yields more and more profits and can be used to achieve and maintain a well sustainable competitive advantage. Arriving at the market on time and producing in time brings a different between two competing companies, where the company whose products lies over fifty percent the budget and introduced to the market on market is at a higher advantage of making much more profits compared to the firm that arrive at the market at a later period even though the products were ready on time. Record keeping should also be done on time to aid the production process since most of the paperwork do consume a lot of time which could have otherwise be utilized in the main manufacturing process, (Voss, C., 2010).
Law enforcement helps in ensuring a healthy competition within some businesses, investigations done are solely aimed at checking the levels of quality of products in the market to protect the consumers from exploitation. Other than the prices of the product, quality matters a lot, for instance, a situation where few firm are producing similar products, the authority governing the production may be force to ensure that the quality standards are met for the betterment of the services being provided.
The firms are considered flexible if any change that comes along the production line can be easily accommodated. For instance, a change in the material quality should not bring the business down to a standstill. This implies that any successful company that wishes to lead in any other competition should cope with and change regarding the quality of the material being used and should be able to maintain or make a slight change in the output produced. New and existing products should not bring a negative impact on the firm’s operation if a change is felt.
For a business to achieve its most competitive advantage in the business environments, plans need to made earlier to ensure all other factors are well taken care off. Other than the internal business management, there are other factors that are outside the scope of the business but must be considers for one’s success. A long time framework allows the managers to consider the competition as a more useful comparison other than it being a battle or a conflict. As a result of this competition, there arises some other important stakeholders that need to be well address to ensure healthy competition.
Suppliers plays an important role in the production circle since they provide the necessary raw materials for the firms. Strategic approach should be implemented where the firm builds a relation with the supplier long before the actual term of operation agreement is signed by both parties. At early stage, the approach will build a relationship that assures prosperity. Making a long term integral relationship with the suppliers, any firm will deserve a global reputation hence being a leader in the business operation, (Voss, C., 2010).
Design of any product determines its success in any competition. Early stages of the new product may seem to boom in market but at a later stage, competition increases as similar products arise. To ensure the top lead is maintained the company is force to make some alteration in the design to bring out the difference. Consumers will always wish to get the best in the market, to grasp the attention of every consumer the company if forced to design its products in a manner that it appears better among the competing similar products and this will ensure a lead in the competing market. The company design team should be on watch to ensure their product s are always the best in design in the market.
Faster order fulfilment yields benefits beyond the normal payoffs. More orders free up space in the stores and this calls for more inputs to be added. Once a firm has learned on how best it can deliver the orders, then much more profit is realized since there will be constant flow of stock within and this will lead to making more sales.
Most business fail not because they lack the skills to manage but due to missing out on the customer relationship. Customers plays an important role in consuming the product if the firm, an as a result good relationship should be made. Firm should value their customers first; this is achieved through creating an identity. Once a customer is given an identity, he or she feels appreciated being given the membership card which will assure them of the best services being offered. Any complain made should be taken in a positive manner and given an appropriate response. And at times thanking them as well as welcoming them back for more and more.
Multifactor productivity ratio
Music lesson= R150 per hour
Corporate sponsor=R100 per hour
Total income=R (150+100) = R250 per hour
Total students 50
Total per class= (250*3*50) =R37,500
Input=R 25000 + R 4000+ R(20*50)=30,000
Ratio=37500/30000=1.25
Expand Maintain
Market trends 70%
Building Cost (R3.5m) Buying new Building Cost (R4.2m)
Current R12m New R15m Current R12m New R16m
Increase of R3m Rise of R4m
With the increase market opportunity, the business should expand its operations. Buying a new building could seem to me a better option since its time conscious. While the cost of building own premise looks tempting to go by, the manager should be fast enough not to miss this opportunity. The only difference between building and buying is R0.7 million, which when compared with the profits being made can’t compare with the profit realized in buying a building. The addition cash spent on buying a building can be easily compensated if from the profit made 70% is set aside and bearing in mind that the time which could have been used to build a new building has been utilized for the business operation, (Fitzsimmons, J.A., Fitzsimmons, M.J. and Bordoloi, S., 2008).
Construct a long-term capacity planning process for DSF according to the rubric given:
Capacity is the maximum rate at which a production system or transformation produces from the inputs processed. Planning plays an important role especially in terms of capacity since it determines how much capacity is needed for the firm to manufacture higher products or rather greater levels or otherwise begin producing new products in the market. However, the excess capacity can be in most cases costly and unnecessary. Location decisions relates more with the long term capacity planning. Implications to the manufacturing strategy on competition either through the cost, speed of delivery and the firm’s flexibility depends on the long term capacity planning.
Demand of the products against the supply should always be hand on hand. Before any other decision being made, capacity should be strategically considered as the first option to begin with in the whole process of decision making. Due to the increasing demands, capacity is added in anticipation. On the other hand, demands also can fall below the desired level and this calls for the measure both in regards to the rise or fall in demand. Even though the companies are fading off, the demand for the Delta Synthetic Fibres should be measured in order to limit the level of capacity being managed. The personnel employed were far much more than the required since the fall in the companies brought about a large number of unemployment.
From the reading, the firm can easily implement an economy of scale via the production process. This can be realized through the cheaper capital being used in the conversion of Britlene to Britlon which appears to be the most efficient way of production. Purchasing the raw material in bulk also provides an arena where the company makes extra profits by utilizing the resources within the control. Unlike purchasing direct for production purpose without considering other surplus.
Considering scales becomes a problem in sizing the company. The forecasted demand for capacity and the supply of the capacity required great timing. Demand patterns could be increasing or decreasing and this should be taken care of, from the Britlene production, it’s clear that its timing could work best if it was introduced at a later time after the best times for the Briton facilities had been realized, (Fitzsimmons, J.A., Fitzsimmons, M.J. and Bordoloi, S., 2008). The forecast clearly shows that Britlene is at its best time even though the curve keeps lowering down, a steady drop in demand is realized while Briton best timing will be later in the years, a significant effect will be felt.
Step by step approach to any new production style should be considered. As said by the Chief Executive Officer, new company sites would come with an advantage to the clients. Shifting members to other newly developed sites would sound human rather than a closure which will render most of the man power jobless and will appear a great loss of resources.
The current performance monitor shows that the Britlene takes the higher percentage in the market operation. Related data to the is used to keep trends of the progress in the Fibres. Conversion tools from the Britlene plan would allow the production of the Britlon in the firm which would at a higher percentage yield more promising results.
Forecasting can be either qualitative or quantitative, while the qualitative are based on the opinions of the experts and consumers, the quantitative on the other side uses the data as a function of the past data. From this example given the quantitative for to forecasting techniques takes position while analyzing the DSF made on the Britlene since the year.
2018 > 22 2019 >20 2020 > 17 2021 > 13
Total = (22+20+17+13) = 72 Average = (72/4) = 18
The simple moving average is 18.
From the given results, the first two years will be ranging above the average level while the other two will imply a decline below the average.
(22*4/15) + (20*3/15) + (17*2/15) + (13*1/15)
5.87+4.4+2.27+0.87
13.41
The weighted moving average is 13.41
Forecast error on Britlene
|
Year |
Britlene actual |
Britlene forecast |
|
2015 |
18 |
|
|
2016 |
21 |
|
|
2017 (actual) |
24 |
|
|
2018 |
22 |
21.9 |
|
2019 |
20 |
22.35 |
|
2020 |
17 |
22.55 |
|
2021 |
13 |
22.36 |
2018 > 22-21.9=0.1
2019 > 22.35-20=2.35
2020 > 22.55-17= 5.55
2021 > 22.36-13= 9.36
Sum= 0.1+2.35.5.55+9.36= 17.36
MAD= 17.36/4=4.34
Y=9.2+0.8x
2018 > 9.2+0.8(22) =26.8 Error 26-22=4 Squared= 16
2019 > 9.2+0.8(20) =25.2 25.2-20=5.2 27.04
2020 > 9.2+0.8(17) =22.8 22.8-17=5.8 33.64
2021 > 9.2+0.8(13) =19.6 19.6-13=6.6 43.56
Total =16+27.04+33.64+43.56=120.24
MSE=120.24/4=30.06
2018 > (0.1*100)/22=0.455
2019 > (2.35*100)/20=11.75
2020 > (5.55*100)/17=32.65
2021 > (9.36*100)/13=72
Sum=0.455+11.75+32.65+72=116.855
MAPE=116.855/4=29.214
Conclusion
From the results obtained, the forecast can clearly portray the real outcome if all the other factors are kept constant. Operation management being a key role factor in all other organizations, the Britlene production company needs to embark more on the management part so as to maximize profile while minimizing cost of production.
References
Fitzsimmons, J.A., Fitzsimmons, M.J. and Bordoloi, S., 2008. Service management: Operations, strategy, and information technology (p. 4). New York, NY: McGraw-Hill.
Voss, C., 2010. Case research in operations management. In Researching operations management (pp. 176-209). Routledge.
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