Operation Management Assignment PDF

Running head: OPERATION MANAGEMENT
Operation Management
Name of Student
Name of University
Author Note

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Table of Contents
Part One-Quality Management..................................................................................................2
Definitions..............................................................................................................................2
1. Definition of quality........................................................................................................2
Quality dimensions.................................................................................................................2
2. Use and application of quality dimension.......................................................................2
Data collection and information.............................................................................................3
3. a. Importance of data and information............................................................................3
b. Data and information collection policy..........................................................................4
Formal processes and review..................................................................................................4
4. a. Importance of formal process and formal review.......................................................4
b. Formal process and formal review policy.......................................................................5
Formal systems.......................................................................................................................5
5. a. Relevance of ISO9001 certification............................................................................5
b. Relevance of TQM..........................................................................................................6
Quality Management Tools....................................................................................................7
6. Identifying, justifying and applying TQM tools.............................................................7
a. 1st scenario.......................................................................................................................7
b. 2nd scenario......................................................................................................................7
Part Two-Operation Management..............................................................................................8
Capacity and Production Planning.........................................................................................8

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1.1 Capacity planning strategies.........................................................................................8
1.2 Designing of capacity planning strategies....................................................................8
1.3 Implementation of one capacity planning strategy.......................................................9
1.4 Model of capacity planning strategy...........................................................................10
Inventory and Stock..............................................................................................................11
2.1 Inventory and Stock Management strategies..............................................................11
2.2 Inventory and Stock Management tool.......................................................................11
2.3 Model of inventory management system....................................................................12
2.4 Example of inventory management tool.....................................................................12
Investigation-Supply Chain Management............................................................................13
3.1 Illustrating supply chain as a process for the organisation.........................................13
3.2 Supply chain management flow chart.........................................................................14
3.3 Justification of a supply chain strategy improvement performance...........................14
Bibliography.............................................................................................................................15

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Part One-Quality Management
Definitions
1. Definition of quality
According to Sallis (2014), quality can be defined as a standard that can help in
measuring a particular product or service against its competitors. It is usually measured by
considering the level of excellence that exists between the two qualities so that a distinctive
attribute can be made that focuses on identifying the deficiencies that exist with the existing
as well as the expected results. On the other hand, Ross (2017) stated that grade could be
considered as a particular level or rank that indicates the quality of a work. The difference is
that quality can be ranked from top grade to bottom depending upon the manner in which it
has exceeded or met the expectations. Hence, in the case of ABC Garments, the company
need to ensure that the quality of the products can be graded with that of the perception and
satisfaction level of the customers. Grade and quality can need to be separated by using the
definitions and at the same time ensure that the managers of the company are aware of the
competitive advantages that it may gain while incorporating the requirement of quality.
Quality dimensions
2. Use and application of quality dimension
Quality dimensions How it applied to the manufacture of children’s garments
Fitness for purpose The purpose of ABC Garments in terms of manufacturing the
garments of the children need to be fixed. This can help in gaining an
idea about the manner in which the manufacturing process can take
place in the organisation. The purpose can be considered as an
objective of the organisation so that the mission and vision can be met

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effectively
Compliance ABC Garments need to ensure that it makes compliance with the law
and the legislations that involve the manufacturing of the materials.
These are required for managing the legal activities of a business and
to ensure that every member are aware of the ethical rights that they
need to maintain. For example, under the Australian law a design
needs to be registered for business for legality
Value The value of the clothes needs to be based on the manufacturing
prices. Standard price of a product need to be maintained so that the
target market can be attracted. The standard prices need to be at par
with the rate at which the marketing takes place
Table 1: Quality dimension
(Source: Created by the author)
Data collection and information
3. a. Importance of data and information
Data and information can assist ABC Garments in gaining knowledge about the
competitors. It is necessary that the company understand the requirements that the customer
demand. This can be done by conducting a survey so that the responses of the customers can
be taken into account. At the same time, it is also necessary that data and information be
stored on records so that future strategies can be applied. The data and information can help
ABC Garments to understand the strategies applied by the competitors so that it can align its
strategies with the requirements of the markets. Thus, data and information can provide an
opportunity for gaining a competitive advantage in the market. At the same time, maintaining
a proper data can help companies to understand the importance of records as well as

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strategies. As stated by Oakland (2014) application of strategies that can help in gaining
competitive advantage can be stored as data so that information about the level of application
and the manner in which it can help in the development of the company in the future can take
place.
Figure 1: Graphical representation of importance of data and information
(Source: Created by author)
b. Data and information collection policy
Data and information collection can be done by the use of survey questions in terms
of understanding the needs of the customers. The needs of the customers can be asked in
terms of questions that highlight the importance of strategies within an organisation. At the
same time Goetsch and Davis (2014) is of the opinion that data and information collection
policy is necessary for the development of competitive strategies. In this case, a thorough
market research can be made that can assist managers to understand the requirements of the
data and ensure that these policies engage with that of the policies of the law. Hence,

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formulation of data and information collection need to be approved by the law of the country
for ethical and legal concerns.
Formal processes and review
4. a. Importance of formal process and formal review
Formal process provides an understanding of the possible routes and outcomes that is
necessary for balancing the rights and needs of concerned parties. According to Aquilani et
al. (2017), it can be used to support the development of quality products and services and at
the same time capture, the important and valuable data required for gaining a competitive
advantage. On the other hand, Khanam, Siddiqui and Talib (2016) stated that formal review
is the method by which feedback is provided about the manufacturing process that takes
place. This involves the use of emails and meetings for conveying the feedback to the
concerned personnel. The importance of the formal process and formal review is that both are
integral for the success of an organisation. Without proper application of the formal process,
it can be difficult for ABC Garments to understand the flaws in the manufacturing process
and work on developing a suitable strategy that can help in eliminating the process. Thus,
ABC Garments can use the process to maintain and fulfil its dreams of growing significantly
in the Chinese market.
b. Formal process and formal review policy
The formal process policy need to comply with the objectives of an organisation so
that every expectations of an organisation. As already seen it is necessary that the formal
process help in capturing the data and the importance of ensuring that the data gained can
help with a competitive advantage. At the same time, it is also necessary to understand the
application of the policies that help in managing the requirements of the data. ABC Garments
can formulate a formal process policy that takes into account a budgeting style replication of

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the data. This can include every requirement of the manufacturing process necessary for the
application of data. Along with this, formal review policy can help in providing the feedback
of the processes. Policies related to the sending of email can be made to provide opinion
about the product developed. Hence, the policy needs to support the requirements and
expectations of the concerned organisation.
Formal systems
5. a. Relevance of ISO9001 certification
The relevance of ISO9001 certification is that with the aim of growing its business in
China, it is necessary that a comprehensive study of condition related to the operations that
exist in an organisation. According to Fu et al. (2015), ISO9001 helps in managing the
operations of an organisation so that it can work towards achieving the goals. In the case of
ABC Garments, the aim to expand its business in China can help the company if it considers
the application of ISO9001 as a unit of measuring the quality of work that it performs. In this
manner, a steady possibility of growth can be ensured with an idea of maintaining constant
offers to the customers in terms of engaging in service delivery. At the same time, as
observed by Calabrese Corbò (2015) the applications of the ISO9001 model can help in
ensuring that high standard of products are achieved with a high efficiency rate of
conversation into the demands made by the customers. Hence, ISO9001 certification can help
in gaining the trust of the customers in terms of the products manufactured.

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Figure 2: Importance of ISO9001 certification
(Source: Created by author)
b. Relevance of TQM
Total Quality Management can help in creating cost reduction in business. As
observed by Mosadeghrad (2014) application on a regular basis can provide TQM with an
opportunity to reduce the cost of business. This includes understanding the areas that are
normally termed as wastes in the manufacturing unit. The customer satisfaction can also
increase with the application of TQM so that defect can be reduced. ABC Garments can use
this to ensure that the focus of the strategies is aimed to reduce the errors that it has on the
manufacturing process. This can provide ABC Garments with an opportunity to engage in the
quality of the business. Morale of the company can also improve that can help in improving
the productivity of an organisation (Talib & Rahman, 2015). ABC Garments can ensure that
the morale of the company improve with the application of TQM in its quest of expansion in
China. Hence, any quality issues that ABC Garments faces an be eliminated with the
application of TQM.

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Quality Management Tools
6. Identifying, justifying and applying TQM tools
a. 1st scenario
In order to understand the repetition of errors in the manufacturing process such as
missing of buttons, improperly sewn parts and poorly packaged products, it is necessary that
ABC Garments apply certain TQM tool to calculate the rate of occurrence. In this particular
case, the application of check sheet can help in maintain proper quality of products without
any errors. According to Kalpakjian, Vijai Sekar and Schmid (2014), check sheet helps in
identifying the important features that require to be maintained before releasing a product in
the market. ABC Garments, can ensure that every product that is manufactured for the
children are checked more than once so that no such flaws exist. The flaws stated above
usually occur in terms of quick finishing of products or the absence of proper technology for
manufacturing the products. Therefore, it can be said that in this case it is necessary for ABC
Garments to ensure proper application of check sheet in the company.
b. 2nd scenario
The analysis of the work done by the previous manager had provided evidence that
one of the work done was of substandard quality. Hence, in order to understand the reason for
such a work, it is necessary to identify the cause of the issue. The cause of the issue need to
be analysed by making an assessment of the situation that presented itself during the time. At
the same time, the managers of ABC Garments need to understand the effect that such a flaw
may have on the reputation of the company. Hence, the implementation of the TQM tool
cause and effect need to be taken into consideration so that analysis of the work can be done.
Based on the analysis, ABC Garments can take precautions to ensure that it continuous to
develop its strategies in a manner that can help in the production of quality products in the

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manufacturing department. Hence, it can be said that based on the analysis of the model,
ABC Garments can contribute towards the success of the company.
Part Two-Operation Management
Capacity and Production Planning
1.1 Capacity planning strategies
Lead strategy: According to Muruganantham et al. (2018), lead strategy is an upfront
investment strategy that provides more capacity than the initial requirement. The
advantageous function of the strategy can be related to during the inexpensive nature of the
capacity or the difficult to obtain it. In the case of Call Us Plumbing, the company need to
ensure that the lead strategy can be applied only after careful examination and analysis of the
rapid growth stage that it has in the business.
Lag strategy: The lag strategy is used after the current capacity has increased its limit.
Hence, more capacity needs to be added so that the growth of the business can continue in an
effective manner. According to Androniceanu (2017), it can help in boosting the efficiency
and productivity so that current resources are utilised in a proper manner. In the case of Call
Us Plumbing, it has been seen that the company has experienced delayed production for
components. Therefore, it is necessary for it to first utilise the capacities before engaging it in
a long-term commitment for purchasing more capacity.
1.2 Designing of capacity planning strategies
Designing capacity planning strategies can be done by taking into consideration three
important analyses that can assist in engaging the managers in understanding the effective
capacity needed. For Call Us Plumbing, the strategies required for designing the capacity
planning includes:

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Determining the service level requirement: It is important for Call Us Plumbing to
divide the work into categories so that it quantifies with the expectations of the work that
need to be done. After this, it is necessary to configure the service level that exists over a
long-term period.
Analyse the current capacity: Call Us Plumbing can take a detailed look at the
current production schedule so that it can analyse the capacity that needs to be evaluated. In
this manner, more opportunities for fixing the flaws with internal production equipment can
be made. It is important for Call Us Plumbing to ensure that future of the capacity that is
required be taken into account. With the application of these designs, Call Us Plumbing can
secure a proper future growth in terms of capacity planning.
1.3 Implementation of one capacity planning strategy
For Call Us Plumbing to succeed, it needs to ensure that one of the capacity planning
strategy need to be applied. Hence, the suitable capacity planning strategy for Call Us
Plumbing can be the effective application of the lag strategy. The reason for the selection of
this type of strategy is that it helps in the development in a more significant manner. It is
necessary for an organisation to continue with its application of strategic sources that are
required for the development of its potential. In the case of Call Us Plumbing, the company
have been facing issues with the effective management of the workers and the equipments
used for success. Hence, it is important that the application of the strategies related to gaining
more capacity be applied only after the exhaustion of the current resources. For example,
with the existence of constant stress for the workers, it cannot be wise for Call Us Plumbing
to continue to engage in recruiting more number of people.

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1.4 Model of capacity planning strategy
Figure 3: Capacity-planning strategy
(Source: Sanz-Calcedo et al. 2015)
The capacity planning strategy diagram describes the activities that are needed to be
conducted by Call Us Plumbing for success. It can be seen from the diagram that it is
necessary to plan and design the capacity changes that need to take place. At the same time, a
real time monitoring of the changes and the advantages that the changes may bring about can
be calculated with the application of the capacity planning strategy. This can bring about
success in the company with the aim of ensuring that the issues can be addressed in an
effective manner. Call Us Plumbing can instigate a predictive analysis of the activities that
need to be maintained so that it can continue to develop in the market. Thus, it can be said
that the capacity planning strategy model can be effective for Call Us Plumbing in managing
the resources in an effective and fruitful manner.
CapacityPlanningStrategyPlanningDesigningMonitoringPredictiveanalysis

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Inventory and Stock
2.1 Inventory and Stock Management strategies
Economic order quantity: According to Stevenson (2014), economic order quantity is
considered as the lowest amount of inventory that needs to be ordered so that customer
requirements can be met. This can ensure that stocks of a company cannot be low so that
obsolete inventory does not remain in the organisations. For Call Us Plumbing, it is important
to develop an economic order quantity so that it can continue to grow in the market.
Minimum order quantity: This is considered as the minimum number of order that a
company need to make so that it can continue with the production of its business. The right of
selling the products depends upon the suppliers. This is mainly because without a minimum
purchase, sellers remain unwilling to provide the products to the people. As stated by Hitt et
al. (2016) minimum order quantities provide opportunities for suppliers to increase their
profits. Call Us Plumbing may it difficult to negotiate with the sellers given the current
condition of the business.
2.2 Inventory and Stock Management tool
In order to ensure that Call Us Plumbing improve the inventory and stock
management, it is necessary to understand the tools that can be used for the manufacturing of
the products and stocking them in an effective manner. ABC inventory can be used to
understand the effectiveness of the inventories that exist in an organisation. As stated by
Harvey, Heineke and Lewis (2016) it is necessary for an organisation to understand the level
of inventory that exists in the organisations so that it can continue to improve on the
application of its warehouse activities. Call Us Plumbing can implement the ABC inventory
statistics to calculate the serial number of the products and ensure that warehouse stocking be
maintained for understanding the total number of products that exist in the organisation.

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Therefore, it can be said that the effective application of the ABC inventory can help in the
management of the organisational process for Call Us Plumbing.
2.3 Model of inventory management system
Call Us Plumbing can use the fixed reorder quantity system as an inventory model.
Smith, Maull and CL Ng (2014) praised the implementation of the fixed recorder quantity
system as it helps in identifying level of inventory. With a drop in the level of inventory, an
alarm is raised that alerts the managers about the shortage of stocks that it may face. Hence,
the application of this particular inventory management system can help Call Us Plumbing
maintain a record of the inventory it possess and consequently ensure that stocks are
maintained so that the level does not fall below the minimum rate required for customer
satisfaction. Mahadevan (2015) stated that another advantage of this inventory is that it can
be ordered for replenishment. This provides an idea about the total order being provided and
can help Call Us Plumbing to maintain its stock along with that of the employees. Hence,
quantity of new inventory can be referred with the application of this particular approach.
2.4 Example of inventory management tool
Dashboard can be considered as an example of inventory management tool that can be
used by Call Us Plumbing. As observed by Bromiley and Rau (2016) dashboard can help an
organisation to gain a graphical display of information. The information is mainly related to
the inventory management that provides an analysis of the condition that exists in an
organisation. Various information and data that has been pulled from the database of a system
are incorporated in the application of the dashboard system. Hence, Call Us Plumbing can use
this tool as a means to understand the level of inventory that it can store. Compilation of
assorted data and information can help in the effective management of inventory using the
dashboard system. One of the advantages of inventory management is the fact that it collects
and displays a huge amount of information. As observed by Walker et al. (2015) usually one

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company have various warehouses spread across an operational base. The application of
dashboard can help in analysing the warehouses that are spread with the aim to manage the
warehouses in a proper manner.
Investigation-Supply Chain Management
3.1 Illustrating supply chain as a process for the organisation
Maylor et al. (2018) is of the opinion that supply chain consists of a flow of goods and
services from one inventory to another. It is involved with movement and storage of raw
materials. One of the effective applications of the supply chain management technique is that
it can help in the interconnection and interlinking of networks are the channels that are
involved with the end customers. As stated by Cachon and Terwiesch (2017), in the case of
FMCG companies, the application of supply chain is important as it helps in transferring
goods from one place to another. The planning process that needs to be taken includes
analysis of the requirements of the organisation. The purchasing of the FMCG products can
be accounted for the processing of the elements so that the distribution channels take place in
an effective manner.

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3.2 Supply chain management flow chart
Figure 4: Supply chain framework
(Source: Marshall, Metters & Pagell, 2016)
3.3 Justification of a supply chain strategy improvement performance
Supply chain management strategies can be improved in terms of efficiency and
effectiveness by the application of various ERP software. According to Sterman et al (2015),
it is necessary that the supply chain strategy have the ability to conduct automated purchasing
so that standardisation can be maintained. This can help in the effective analysis of the supply
chain management so that increase in transparency can help in the effective management of
an organisation. In this regard it can be said that it is important for every organisation to
continue with the data insight required for the development of an FMCG organisation. Thus,
the supply chain management system within an organisation can be effective with the
application of these techniques (Choi, Cheng & Zhao, 2016).

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