Case Study on Operations Management
12 Pages2436 Words961 Views
Added on 2019-09-19
Case Study on Operations Management
Added on 2019-09-19
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OPERATIONAL RESEARCH[Document subtitle]
1Executive SummaryThe operations management is being defined as those functions of the business whichperform the various activities of controlling, organizing, planning and leading theresources which are needed in order to produce or generate the products and theservices of the organization to create the value. Further, to study the operationsmanagement deeply, the case of Smog Co. production system has been taken. Further,the report will help in understanding that how the company changed the productionsystem and how it went wrong to some extent. Moreover, the report will help inunderstanding that how distinct layout of the operations and the types of process areestimated as the most appropriate one for the production of distinct products inaccordance to the model of four Vs. Then, the present layout of the company will beaccessed in order to improve and define the advantages of shifting to a more suitablelayout. Further, the importance of the ERP system will be addressed which will help thecompany in order to solve the issues like surplus or shortage of the stock, damages ofstock, increased cost and how the ERP system will help the company in achievingsustainable competitive advantage.Operation Layouts and Process Types with Reference to four V’s Model The operation layouts and the types of processes can easily be demonstrated as thenexus of the organization where the direct labor takes place. If we take the case ofSmog Co. then we can easily say that the operations of the company are task-orientedand follows the adequate steps till the service is not completed (Slack et al., 2013).
2Further, the model of four V’s has been used in order to show the appropriateness ofoperation layout and the type of processes. The examples have been taken in order toshow the appropriateness by using the model of four Vs. Further, the processes of theoperations have a single thing which is in common, they take the inputs such asknowledge, raw material, equipment, capital and time and then transform these inputsto outputs. Furthermore, in order to perform this activity four V’s model is used i.e.variation, variety, visibility and the volume.VolumeThe McDonalds has the huge volume and offers a product at low cost. The volume oftheir operation is the way they organize their business. The operations of the businessare in systematic order despite the repeatability of the operations. VarietyLet us take the example of the taxi and the bus service. A bus had the specific anddefined schedule and route whereas, the taxi has the greater dimension of variety as itwill pick you and drop you at the desired place. Therefore, it can be said that the modelof low cost can be easily gained with the minimum variety.VariationLet us take the example of building contractors, who build homes by showing acatalogue and the other one provides customized homes so that the person can walkthrough and take the decision. Therefore, the second company has the greater costlevel and the reduced volume as compare to the other company.
3VisibilityThis focuses in tracking the order and experience of the customers by the process ofoperations. For example, the courier companies have the greatest visibility as theorders can be tracked and the companies of web design have the lower visibility ascompared to the courier companies.Therefore, it can be understood from the above-given examples that the Smog Co.should carefully barrel with these aspects in order to ensure sustainable competitiveedge and maximize the profitability (Pahl, G. and Beitz, W., 2013). Further, this will helpthe company to create the value and satisfy the customers according to their changingneeds without even changing the operations layout.Improvisation in the Present Production Layout of the Smog Co. The production layout of the Smog Co. can be improved which will help the company tosolve the issues which it is facing at present like the company will be able to improvethe quality of products by satisfying the changing needs of the customers, shortage andthe surplus of stock, increased cost, damages of the stock, etc. Further, the improvedproduction process or layout is given for the company which the company can use tomaximize the competitive edge and profitability (Malakooti, B., 2013).
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