Operations Management in Business Assignment - Doc
Added on -2021-02-21
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Business Management - OperationsManagement
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY ..................................................................................................................................12.1 Components of lean production ............................................................................................12.2 Cost of holding stock.............................................................................................................12.3Assess a production process....................................................................................................22.4 Just-in-time ...........................................................................................................................22.5 Recommendation...................................................................................................................3CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................4
INTRODUCTIONOperations management refers to the process that mainly focuses on the process that isbeing used to manufacture the product in the company (Choi, Chan and Yue, 2016). There aredifferent stages that is being involved in making particular product. It helps in improving theproductivity of the company. In this various activities are involved that deals from making theproduct till the product is served to customers. Report will include main components of lean production. It also includes cost that isbeing incurred in holding stock and the production process. Furthermore, it will include just-in-time and improvements needed in the production process. MAIN BODY 2.1 Components of lean production Lean production is the process that uses different methods that will help in reducingwaste from the company. It mainly emphasizes on reducing waste that is generated whileproduction. There are four components of lean production are as follows:Lean Concept:- This component will help in improvement in the reduction of waste. It aims thatless wastage can be done so that productivity will increase and quality product is being providedto the customer (Hazen and et. al., 2018). It is using different techniques that will help in stopwaste that will improving the flow of production in the company. Lean Planning:- In this proper planning is made that will help in achieving the company's goalby linking with the activities of lean that will help in achieving them in the future. This planningwill be made in the form of policy or goal that is needed to fulfilling the objective of thecompany. Lean Culture:- Under this a particular lean process is being implemented in the company thatwill help in building positive work culture and emphasizes more growth in the future. Lean Tools:- This component will use various tools and techniques that is used in reducingwaste from the company (Scott-Jackson and Michie, 2017). These tools will help in achievingthe goals of planning that is being already done. 2.2 Cost of holding stockThis is also known as carrying cost. This is referred to as the total cost incurred whileCarrying the stock from one place to another. It includes four types of factor such as salary andwages of the workers, expenses that are incurred in storing product, its maintenance and carrying1
Cost. It helps in providing the immediate customer service that will lead to prevent fault in theproduction. It includes interest on capital, handling cost, insurance, storage charges etc. This costis related to the carrying as well as holding cost that is required to store stock at a particular place(Chatzoudes, Chatzoglou and Vraimaki, 2015). Every company have to incurred carrying andholding cost of the company. In this delivery and order cost will remain same. This cost willinclude the various forms of cost that is being involved in calculation of stock. 2.3Assess a production processThis process refers to conversion of input into output that gives a final product to thecompany. It includes various stages such as availability of raw material, work-in-progess and thefinished product that is obtained in the last stage. There is a supply chain management systemthat facilitate easy production in the company (Bilicki and Roeder, Target Brands Inc, 2016).This helps in providing desirable product to the customers so that it will satisfy their needs andwants. There are different types of production process such as:Project based production:- In this production process only one unit is produced at a particularpoint of time. This is used for completing large projects. Workers who are working are highlyskilled and efficient to do work in their own field. Batch Production:- In this similar item is being produced in a group at a particular stage whileproduction. In this product is passes through various stages of production that will facilitate inobtaining quality product. Mass Production:- Product is being produced in a bulk quantity that will help in satisfying thedemand and needs into the market (Cho and Chan, 2015). In this high investment is required tofacilitate availability of machinery for the production. Continuous Production:- In this production is done whole day without any break in between.Continuous flow of raw material is there that will provide a finished good.2.4 Just-in-time Just-in-time is the approach that will be used in the company for obtaining the product atthe right time, right place and by right person. The aim of this approach is to decrease the cost bymaintaining less stock in the company (Li, Sy and McMurray, 2018). This will help in reducingunnecessary burden of inventory that is being used in the company (Liao, 2018). Its mainobjective is to increase the stock inventory and help in reducing the holding cost of the company.This will help in providing efficient and effective use of resources by reducing wastage in the2
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