(Solution) Understanding Operations, Logistics and Supply Chain Management
Added on 2020-12-29
11 Pages3679 Words326 Views
Business DevelopmentLeadership ManagementData Science and Big Data
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UnderstandingOperations, Logisticsand Supply ChainManagement
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Define theories of operations, logistic and supply chain management..................................1Analytic discussion with relevant and similar example(s) and applying appropriate solutionsof Operations Management....................................................................................................5CONCLUSION AND RECOMMENDATIONS ...........................................................................7REFERENCES................................................................................................................................9
INTRODUCTIONOperation management refers an administration of business activities and practices aimedat assuring highest efficiency within a company that turns out to improve profitability. Itencompasses with obtaining maximum from firm's resources, i.e. employees, technology, financeand equipment’s (Bichou, 2015). Operational managers of manufacturing companies are focusedto develop and deliver goods to clients as per their needs and wants. In addition to this, supplychain and logistics are the important functions of operation management as it is responsible forfinding vendors that supply the appropriate goods at reasonable prices and have the ability todeliver the product when needed. In which, logistics refers to managing the flow of goodsbetween point of consumption and point of origin thus meet customers and corporations'requirements. Beside this, supply chain management entails with wide range of activities neededto plan, control and implement related with acquiring raw materials, production and distributionto final customers in most cost effective as well as streamlined way. The present assignment is based upon Volkswagen Group which is known as one of thelargest auto mobile manufacturer which was founded in 1937 to mass-produce a low-priced“people’s car.” which headquarters is in Germany. The overall production output of the companyis 6.073 million units approximately whereas its net income is € 4.353 billion. There are almost120000 employees currently working with Volkswagen worldwide. a large internationalcorporation in charge of multiple car and truck brands, including Audi, SEAT, Porsche,Lamborghini, Bentley, Bugatti, Scania, MAN, and Škoda by having approximately 20% globalmarket share. This report is going to describe various approaches or theories of operations, logistics andsupply chain management. There will a discussion upon two areas of operations, such as –managing quality, JIT, Lean and Agility manufacturing. At last, appropirate solutions will beprovided regarding problems occurred in operation management. There will also discussappropriate solution of problems occurred in operation management.MAIN BODYDefine theories of operations, logistic and supply chain management1
According to (Hugos, 2018) operations management is linked with controlling themanufacturing process and activities in most effective manner. It ensures that business operateefficiently by using least amount of resources and fulfil customers' needs to maximum standardseconomically viable. The two main areas of operations, logistic and supply chain managementare – managing quality and JIT, Lean and agility. In which, managing quality is one of thecritical aspect of operation management which can be done through proper availability ofresources, i.e. raw materials, employees, technology, finance etc. Managing quality requires highcosts, proper management and efficient workforce that is quite difficult task to implement. Apart from this, another area of concern is JIT, Lean and Agility. Just in time is designedto ensure that a part would arrive just in time to be used, eliminating the need to keep it ininventory. Just in time can reduce lead time on orders by one third as well as cut downproduction cost. Lean examine the real value of product for customer; the concept is based uponevery step in the production process must add something of value that the customer actuallywants. In operations management, agility is the management of labour, personnel capacity andcapability for organizations facing unpredictable change is a complex. Adequate management allthese is difficult and may affect production process and sales revenues of a businessorganisation. Thus, to get over with that issue,managers of Volkswagen can acquire differentapproaches and theories. There are four main theories of operation management, such as – business processredesign, six sigma, reconfigurable manufacturing system, lean manufacturing and six sigma. In which, Business process redesign was founded in 1993 as a business managementstrategy which emphasis on assessing and planning workflow as well as business processes atworkplace. Additionally, the prime goal of BPR is to restructure an organisation throughdesigning different processes from the ground up. As the prime goal of Volkswagen is to obtainglobal consistency and for this purpose the firm is focusing on redesigning its business processesand managing their quality; it may contribute to increase financial efficiency and ability tooptimize client satisfaction. Another approach is Reconfigurable manufacturing system which was incorporated toaccelerate modifications in organisational structure as well as hardware and software.Volkswagen is trying to reconfigure its production processes by applying different tools andtechniques; it results to produce new and innovative products, i.e. electronic cars. (McCormack2
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