Heatbox: Quality Issues, Production Capacity, Supply Chain Impacts

This report examines the operational challenges faced by Heatbox, a company that manufactures a heated lunchbox. The report identifies quality issues such as employee communication gaps, inadequate planning, and high turnover. It also analyzes production capacity problems, including supplier coordination issues, sourcing raw materials, and the impact of trade wars. Furthermore, the report explores how disruptive changes and technologies like 3D printing and blockchain can impact Heatbox's supply chain. The report provides insights into how Heatbox can improve its operations and adapt to a changing business environment. It emphasizes the importance of addressing quality issues, optimizing production capacity, and leveraging technology to enhance supply chain efficiency and competitiveness. The analysis covers various aspects of operations management and supply chain design, offering valuable insights for businesses in similar industries.

Running Head: MANAGEMENT 0
OPERATIONS AND
MANAGEMENT

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Table of Contents
Quality issue on the organisation...............................................................................................2
Production Capacity issues on the organisation and supply chain.............................................3
Potential impacts of disruptive change and technology on the supply chain.............................5
References..................................................................................................................................7

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Quality issue on the organisation
The quality issue can easily be found with the organisation who is established new in
the market like Heatbox as founded in 2018. Growing a business or project is complicated
and businesses in their first year or two have to still validate their business model while going
with several repetitive challenges haunting organisations over and over again (Lee & Shin,
2018). There are various challenges these growing business found as the primary constraints
to attaining effective quality assurance. Most of these challenges are interrelated where
quality term has been ignored or either not been established. Heatbox can be one of the
quality product enables people to enjoy delicious and warm food under 8 minutes regardless
of the time and location (Foy, 2019). However, some of the qualities issue the company may
face include employee communication and engagement where keeping all employees in the
circle is necessary to quality and productivity of the company while also driving a positive
culture. Heatbox failure to make these connections will lead to gaps in information
communicated both ways and therefore, lead to cause in quality decline and employees will
add. Heatbox can facilitate effective engagement and communication by making the
managers visit organisation work areas on a constant basis to control informal two-way
conversations.
The next quality issue to the organisation may be referred as inadequate quality and
production planning. Heatbox sales functions must have the logistical and technical capability
with tea, support to deliver rational estimates. Negotiating specifications can also lead in
raising business capability to manufacture the required product and reduce cost for the
consumers and organisation (Porter & Heppelmann, 2014). Continuous efforts to resolve
issues and else endure to make developments relying upon the significance of issues is vital

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to maximise the effectiveness of a company as well as stay forward of the rivalry. Team
leaders in Heatbox need to keep top management in the circle to sustain their commitment to
the resources required to address the challenges. The next quality issue for Heatbox can be
high turnover rates as new companies not have much potential to great pay their staff. On the
later stage, this also results into breakdown in customer relationship as it is vital to maintain
constant communications on the status of any problem that comprises of an action plan with
recognised dates of completion (Hale, Ployhart & Shepherd, 2016). Correctly recognising the
challenges Heatbox face along with getting management commitment are essential steps
towards quality commitment.
Production Capacity issues on the organisation and
supply chain
Today manufacturer are facing long list of challenges in their supply chain in relation
with production capacity with comprises of increasing demand variability, production
capacity constraints, rising customer expectation and global competition (Mota et al, 2015).
For Heatbox, the management required to piece together the many parts of the supply chain
puzzle to lay the foundation for more developed capabilities in the future. More specifically,
it requires proper coordination between its suppliers i.e. Tansen logistics and SHAQ logistics
and the manufacturing plant i.e. Yusen Logistics and SHAQ Logistics to ensure adequate
stock were being placed and volume of products to be generated in a particular period with
using of current resources. For Heatbox, throughput in production can mean the variation
between fulfilling quotas and losing consumers to the competition. However, Heatbox is

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offering a unique product to the market and therefore, there is no relation with the
competition, however, falling behind on manufacturing throughput can result in delayed
deliveries and make customers go with other substitute products or suppliers (Which in this
case is difficult). Other than this, sourcing the raw materials can also negatively impact
production capacity.
Heatbox obtained its bamboo lid through Hangzhou Zen Bamboo Company which is
located in Vaneer, China. However, recent US-China trade war would be depraved for
Netherlands firms as China and the United States are both key trade allies with having
interest in good agreements (Pieters, 2019). In the end, the production capacity may get
hampered and as Heatbox is sourcing various raw materials such as bamboo lid, inner
container and batteries from Chinese firms and this trade war require the company to get their
contract agreed with other firms situated in other countries. It can also be related to
production outsourcing where it implies from in-house material supply to buying of raw
materials from a supplier in Tansen Logistics and SHAQ logistics, hence production
outsourcing can impact supply of material to manufacturing plant and regional warehouse in
relation with delivery consistency, lead times and quality of product. Ultimately, there is also
a connection between larger facility and production capacity and on the one hand, Heatbox
cannot arrange large facility plant due to greater investment and on the other side, if the
product demand is lower than expected, its plants in Yusen logistics and SHAQ logistics will
be underutilized, and at the end, result in costly waste of resources. Ultimately, the company
requires a new approach to manufacturing and distribution systems to improve its production
capacity.

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Potential impacts of disruptive change and technology
on the supply chain
With the upsurge of breakthrough technologies like 3D printing, artificial intelligence
and shifting of geo-political power – there is a significant transformation in the production
procedures and business models through diverse sectors. The products that consumer
demand, plant procedures and footprints, and the management of universal supply chains are
being re-shaped to a unique mark and step where huge range of these technologies are even
now influencing production classifications and supply chains (Jonsson & Rudberg, 2014).
According to weforum.org (2017), various companies in the manufacturing segment (79.9%)
and the logistics business (85.5%) associated with positive impact causing from digital
conversion (weforum.org, 2017). It means companies required to develop robust talent
pipelines to be viable in their sector. Furthermore, technology and logistics have always been
hand in hand with reaping benefits in a new form from real-time warehouse systems. Taking
example of IoT, the developing mass of linked sensors and gadgets is already having a big
impact on the way where smart devices are optimising the warehousing, transit and delivery
of shipment offering insights on the expenses incurred at the time of transit in real time. In
relation with Heatbox, their regional warehouses in Amsterdam can use this technology to
reduce necessary cost at an early stage and endure to lead the adoption of greater agile
process popular in manufacturing to date.
Similarly, the intricacy and personalization of 3-D printing could radically streamline
convoluted the supply chains and the outlook of organisations compressing the supply chains
for particular products to a single production stage is startling and possibly overturning (Ford
& Despeisse, 2016). Heatbox can use this technology to complete the manufacturing
procedure comprises one production phase, relying in a single factory like SHAQ logistics.

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Hence, 3D printing technology is likely a disruptive innovation that will impact the supply
chain and logistics of Heatbox if implemented effectively. Next, blockchain technology also
has a similar impact as it will reduce issues that are being faced within the supply chain and
logistics and improve performance while reducing fraud and mistakes linked with paper
based documentation. Ultimately, various cutting edge technologies enable competitive
solutions to the company to integrate and innovate technology for meeting the increasing
desire and customer needs in each respective sectors (Ford & Despeisse, 2016). Heatbox has
the opportunities to use these technologies as it the first in its industry to offer the innovative
product to the customer, however, needs to focus on supply chain to expand its reach all over
the world.

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References
Ford, S., & Despeisse, M. (2016). Additive manufacturing and sustainability: an exploratory
study of the advantages and challenges. Journal of Cleaner Production, 137(1), 1573-
1587.
Foy, K. (2019). This Heated Lunchbox Lets You Avoid the Office Microwave Queue.
Retrieved from https://www.apartmenttherapy.com/heated-lunchbox-kickstarter-
36685226
Hale Jr, D., Ployhart, R. E., & Shepherd, W. (2016). A two-phase longitudinal model of a
turnover event: Disruption, recovery rates, and moderators of collective performance.
Academy of Management Journal, 59(3), 906-929.
Jonsson, H., & Rudberg, M. (2014). Classification of production systems for industrialized
building: a production strategy perspective. Construction Management and
Economics, 32(1-2), 53-69.
Lee, I., & Shin, Y. J. (2018). Fintech: Ecosystem, business models, investment decisions, and
challenges. Business Horizons, 61(1), 35-46.
Mota, B., Gomes, M. I., Carvalho, A., & Barbosa-Povoa, A. P. (2015). Towards supply chain
sustainability: economic, environmental and social design and planning. Journal of
cleaner production, 105(1), 14-27.
Pieters, J. (2019). US-China trade war would be bad for Netherlands, Dutch FM says.
Retrieved from https://nltimes.nl/2019/05/10/us-china-trade-war-bad-netherlands-
dutch-fm-says
Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming
competition. Harvard business review, 92(11), 64-88.

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weforum.org. (2017). Impact of the Fourth Industrial Revolution on Supply Chains.
Retrieved from
http://www3.weforum.org/docs/WEF_Impact_of_the_Fourth_Industrial_Revolution_
on_Supply_Chains_.pdf