Operations Management

Operations Management1
Operations Management
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Operations Management2
Operations Management
Automation and advanced process technologies need to be adequately implemented when the
production know-how is mostly in implicit form. In the contemporary production sector,
technology and automation are adopted rapidly to solve the production challenges as well as
increase productivity. Few strategies promote successful implementation of automation and
production technologies. The first step is to invite employees and allow them to participate in the
decision process concerning the application of the technologies. This will make the employees
feel they are part of the technology as well as enable the organization to identify and solve
employee pain points through the technique. Then this should be followed by rolling out the
implementation of the program based on the natural diffusion of innovation. The organization
can then use the training tools of the software to train the employees on the technology.
Automation and technology in production are used in most of the large production industries,
especially the motor vehicle manufacturing in organizations such as Toyota where work
specialization is used for mass production. The introduction of Artificial Intelligence in the
production process changes how the advanced technologies are deployed since it minimizes the
training of staff.
Question 2
Vendor Managed Inventory (VMI) is a supply chain strategy that has been applied by several
organizations, and it is becoming familiar with time. Wal-Mart is among the leading companies
in the world that have adopted this strategy, and it has helped it to create a competitive advantage
over its competitors. The supply chain of which of the 7-Eleven Japan is closer to a VMI
compared to Zara and Steinway. The main aim of the vendor managed inventory is to ensure
that there is a mutual benefit for both the distributor and the manufacturer, (Cai, Hu,

Operations Management3
Tadikamalla, and Shang, 2017, pp. 145). The 7-Eleven Japan shares information from both ends
of the supply chain, and this has enabled it to deliver products in store just in time based on the
demand fluctuation. This has increased the profit margins by controlling costs by limiting the
inventory on hand. When the distributor can access the inventory status of the customer, it is
easy for the manufacturer to produce the products to avoid stakeouts and uncertainty in the
outlets. For VMI to work successfully, there must be a good understanding between the
manufacturer and the distributor to ensure there is an agreement to share information and
expectations are clarified comprehensively.
Question 3
The policy in a military base is to have 95 % "service level" for all critical spare parts for trucks.
I think this is a reasonable policy since it helps in the management of military vehicles. Military
activities require high precision and efficient hence, a breakdown in any truck could completely
ruin the mission. Therefore this policy has several benefits such as proper inventory management
that ensure the critical spare parts are well supplied according to the demand. The plan is also
beneficial since the military can use the inventory to schedule periodic maintenance during the
most appropriate time without affecting the military duties and functions. However, this policy
may have its shortcoming, such as high maintenance costs.
Question 4.
Supply chain sustainability is an issue affecting the logistics and supply chain network of so
many organizations. An organization that finds a way to deal with this challenge increases its
chances to survive and develop in the highly competitive contemporary business environment. If
the CEO of a company such as Zara asks me to suggest ways to improve sustainability and
compliance (with local and international laws, regulations and moral norms) of its supply chain I