Operation Management Analysis of Anta Brand - Salford Business School

This report provides a detailed analysis of the operation management strategies employed by Anta Sports, a leading sportswear company in China. It critically appraises inventory management, including real-time tracking, forecasting, and resource planning. The report also illustrates key operations within the lean production system, such as sourcing, warehousing, design, and manufacturing, highlighting the use of cell production and just-in-time theories. Furthermore, it identifies potential failures in the delivery system, including delays in sourcing and distribution issues, and suggests utilizing the lean approach to mitigate these problems. The analysis concludes with key findings and recommendations for aligning operational performance measures to enhance customer satisfaction, revenue, and overall efficiency. This document is available on Desklib, a platform offering AI-based study tools and resources for students.

Operation Management
6/17/2018
Anta brand

Contents
Introduction......................................................................................................................................3
Overview of company......................................................................................................................4
Management of Inventory................................................................................................................4
Real-Time inventory tracking......................................................................................................5
Forecasting system.......................................................................................................................5
Resource planning.......................................................................................................................6
Key operations involved within lean production system.................................................................6
Lean Production...........................................................................................................................6
Sourcing...................................................................................................................................7
Warehousing products.............................................................................................................8
Design......................................................................................................................................8
Manufacturing of product........................................................................................................9
Operational flow........................................................................................................................10
Organisation’s delivery system may fail to align its operational performance measures.............11
Delay in sourcing.......................................................................................................................12
Issues in Managing distribution.................................................................................................13
Utilisation of the lean approach to reduce the failing in delivery system.....................................13
Key findings...................................................................................................................................14
Conclusion and recommendations.................................................................................................16

References......................................................................................................................................17

Introduction
The aim of the report is to throw light on operations management of the business as this is
considered as one of the most important aspects of business for service or manufacturing
organizations. The aim behind operation management is to provide the customer service to
customers of the company. The company that has been selected for the report is Anta sports. The
company falls under the business of designing and manufacturing sports product. This shows that
company is a manufacturing company who is looking for operation management. The report
includes the critical analysis of inventories or assets that play a vital role within the production
system. Along with this, it also includes key operations that are included in the manufacturing
system that reflects logical operational flow. In addition, the company needs to analyze delivery
system because this helps them in deciding loopholes in the alignment of operational
performance. Anta sports will be able to eliminate or reduce the loopholes with help of the lean
approach. At the end of the report, the key findings related to approach are discussed that can
provide the support to a production system for aligning performance measures.

Overview of company
Anta brand came into the existence in the year 1991 with the headquarters in Jinjiang, Fujian and
the company is the leading sportswear company in the market of China. This company is also
listed on the main board of the Hong stock exchange in the year 2007 (Anta, 2018). The
company is performing the activities of design, development, manufacturing, and marketing of
the ANTA sportswear series to offer mass market in China market. The main products of the
company include footwear, apparel, and accessories. The major activity of ANTA sports is to
manufacture a product that can lead to customer satisfaction (Anta, 2018). The company
implements a different strategy such as single-focus, multi-brand, and the omnichannel as the
company believe that this will deepen their footprint in sportswear market in China.
Management of Inventory
Operation management is a branch that deals with the management of operations and processes
that takes place within the company. The operation management includes management of the
inventory within the business (Bamford and Forrester, 2010).
The inventory refers to as goods and material that the business holds for production of goods.
The management of the inventory is essential for each and every company within the
organization. In the context of the manufacturing industry, the inventory includes raw material,
partially finished products, finished products till the time it gets a departure from the
manufacturing system (Greasley, 2013). Anta sports follow different steps through which they
can manage the inventory within the production system. Below given is the critical analysis of
the different steps that are taken by the company.

Real-Time inventory tracking
The real-time inventory tracking is done by the Anta sports with the help of technology. This
will help them in identifying the stock that is visible as raw material, semi-finished products and
finished goods that are ready to be sold by the company (Patton, Clegg, Hsuan and Pilkington,
2011). Along with this, the company also track raw material for which they have placed the
order. Though the company found that they are totally depended on technology use and without
technology, they won’t be able to manage inventory within an organization.
Forecasting system
The management of inventory includes forecasting of products that company is willing to
procure from suppliers which are only possible after correct forecasting of the inventory. In this
system, the Anta sports company get information or data from different process and extrapolates
data for accurate production. This means that company needs to keep clear details for recent
trends, culture and desire of company for products (Slack, Brandon-Jones, and Johnston, 2013).
The need identification of customers is very important which can be done with help of surveys,
reviews, and other factors. Though, this forecasting of the company might get a failure due to
which major issues take place while procuring and sourcing of products.
Real Time
inventory
tracking
Forecasting
system
Resource
planning
Management
of Inventory

Resource planning
The company deals in sports products in which they source different resources and ensure that
they make use of resources effectively and efficiently. Along with this, the aim of the Anta
Sports is to form coordination between human resources, material, and financial resources (Wild,
2017). Though, this is the fact that company found the wastage of raw material and resources
while manufacturing the shoes.
Key operations involved in the lean production system
The company makes use of the specific production system which helps them in manufacturing
goods or products effectively. Anta sports make use of lean manufacturing production system in
their business (Dennis, 2016). The company makes use of this production system so that they can
reduce the wastage of the products.
Lean Production
A lean production is an approach to management that mainly emphasis on cutting out the waste
and ensuring the quality of products. This is the effective way through which company can meet
needs of customers. In addition, this production system includes different types of activities
which are created to accomplish high-volume production by using minimal inventories (Heizer,
2016). The below given are the components of lean manufacturing that are mainly used by the
companies in their business operations.

(Source: Heizer, 2016)
The key operations that are involved in production system are discussed below: -
Sourcing
Sourcing of raw material is essential for the production of a product for meeting the needs of
customers. This operation is considered as one of the most important because without sourcing
of the products company will not be able to manufacture products (Piercy and Rich, 2015). The
sourcing is the process in which the company makes a purchase of products from different
suppliers present in the Chinese market.
Cell production approach
The company makes use of cell production which is one of the lean manufacturing systems in
this operation. Cell production approach can be explained as it is the form of team working that

helps and ensure that work commitment (Pampanelli, Found and Bernardes, 2014). In this
approach, each and every cell is accountable for their unit of work. Anta group wants the team to
work for procuring raw material with the supplier who can commit for the best quality of raw
material. The motive of this cell production is to ensure that they are sourcing quality raw
materials.
Warehousing products
The company stores their raw material at the warehouse from which they can take the required
product for the production because whenever company source the products they do it in bulk.
Therefore, the company needs to store products. Similarly, in the lean production system, Anta
Store Company make use of the warehouse for storing the products (Piercy and Rich, 2015). The
company ensure that this operation is done effectively and ensure that place where they are
storing their products is clear and tidy. Along with this, there is no factor that can affect raw
material that is stored by the company in the place.
Design
The design of the product is one of the important operations that are included in the production.
The anta Sports wants to give tough competition in Chinese market due to which they want to
make their products innovative and unique which helps them in meeting the needs of the
customers. The design of the product is totally based on needs of the customers as it is very
important for a company to ensure that they understand needs of the customers and making the
adding new features and changes according to customers.
Time-based management theory

In this operation, the company makes use of time-based management theory because this is the
fact that design of the shoes can take huge time due to which production of product gets affected.
This approach of time-based management is an approach that recognizes the importance of time
and willing to reduce the level of wasted times in process of the designing (Dave, Kubler,
Främling and Koskela, 2016). This approach is the aspect of the lean production system.
Manufacturing of product
Manufacturing of the product is one of the primary functions of the company as this is the only
way through which the company is able to offer its product within the Chinese market. The
company ensures that they are able to perform this activity effectively. Anta sports make use of
lean production system in which they reduce wastage, improve the efficiency and effective
utilization of resources.
Just-in-time theory
Anta makes use of just-in-time approach while manufacturing product in which they try to
decrease the flow times within production system along with the response times form suppliers
and customers. The company makes use of this approach because the implementation of JIT can
bring improve stock turns and amount of stock being held. Moreover, the company brings a
reduction in the handling of equipments and other costs which helps a company in offering shoes
in the Chinese market at affordable prices. This approach resolves huddle and put the efforts to
bring improvement in production of products (Spruijt-Metz and Nilsen, 2014). JIT helps the
company in quickly identifying the issues and problems that can affect the operations. This
approach can reduce the issues which they can bring the improvement in productivity.
Quality improvement and management

Along with this, the Anta Sports also make use of the approach of quality improvement and
management. In this approach, the company can put efforts to enhance the quality of the product
so that their motive of customer satisfaction gets fulfill. The quality of the products is required to
be good because customers pay for quality services that they are getting from the company. Anta
sports follow the approach in which they need to plan-do-act-check the process which they are
conducting (Goetsch and Davis, 2014).
(Source: Goetsch and Davis, 2014)
In this process, the company set the standard for quality of the product and according to that only
they make they make the action in which they bring the changes in suppliers and ensure their
suppliers are able to deliver the quality products by meeting the standards. Moreover, the
company act in a way through which they can perform the activity and check the loopholes
available in operations.

Operational flow
The below given is the operational flow of the company which reflects the operations of the
company that are included in the lean production system.
Organisation’s delivery system may fail to align its operational
performance measures
This section of the report includes failure of organizations delivery system which may fail to
align its operational performance measures. Anta sports found that there are issues in the
Sourcing of Raw
materials
Storing it into
warehouse
Designing of
sports shoes
Manufacturing
of shoes
Testing of
product
Launch and
delivery of Shoes