Operations Management Integration Paper: Eljet Printing and Services

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This comprehensive report analyzes the operations management of Eljet Printing and Services, a t-shirt printing business. It begins with an introduction to operations management principles, followed by the company's background, including its mission, vision, and organizational structure. The report then delves into a detailed documentation of the company's operations, examining its transformation process, competitiveness, product design, and production processes, including process flowcharts, quality management, raw material and labor requirements, plant design, and waste disposal. A supply chain analysis and location justification are also provided. The study identifies problems and suggests improvements, offering specific recommendations based on operations management theories. The report concludes with references and appendices, providing a thorough examination of Eljet Printing and Services' operations and insights for optimizing their processes.
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Operations Management Integration Paper of
Eljet Printing and Services
Submitted by:
J-El G. Gerafil
Submitted to:
Ms. Mary Ann T. Sedero
BM 240 Section 1 Faculty-In-Charge
January 22, 2022
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Table of Contents
I. Introduction ........................................................................................................................................ 3
A. Objectives of the Study ............................................................................................................... 3
B. Scope and Limitations ................................................................................................................ 4
II. Company Background ..................................................................................................................... 4
A. Company Background ................................................................................................................ 4
B. Mission and Vision ...................................................................................................................... 5
C. Organizational Structure ............................................................................................................ 6
III. Documentation of Company Operations ..................................................................................... 6
A. Transformation Process, Competitiveness, and Design ....................................................... 6
i. Transformation Process ........................................................................................................... 6
ii. Competitiveness, Strategy, and Productivity ....................................................................... 9
iii. Product or Service Design ................................................................................................... 11
i. Process Flowchart ................................................................................................................... 13
ii. Quality Management / Quality Control ................................................................................ 14
iii. Raw Material Requirement .................................................................................................. 17
iv. Labor and Skills Requirement ............................................................................................. 17
v. Plant Design and Facility Layout ......................................................................................... 19
vi. Waste Disposal ...................................................................................................................... 20
C. Supply Chain Analysis .............................................................................................................. 21
D. Location and Justification ......................................................................................................... 22
IV. Recommendation ......................................................................................................................... 23
A. Identification of Problems/Points of Improvement ................................................................ 23
B. Recommendation ...................................................................................................................... 24
V. References / Appendices ............................................................................................................. 25
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List of Figures
Figure 1: Organizational Structure of Eljet Printing and Services .......................................... 6
Figure 2: Transformation Process of Eljet Printing and Services ........................................... 7
Figure 3: SWOT Analysis of Eljet Printing and Services ...................................................... 10
Figure 4: Products Sold at Eljet Printing and Services - 2 ................................................... 12
Figure 5: Products Sold at Eljet Printing and Services - 1 ................................................... 12
Figure 6: Products Sold at Eljet Printing and Services - 3 ................................................... 13
Figure 7: Process Flowchart of Eljet Printing and Services ................................................. 13
Figure 8. Gantt Chart of Eljet Printing and Services Processes ........................................... 14
Figure 9. Layout of Eljet Printing and Services Production Facility ...................................... 19
Figure 10. Facility Layout of Eljet Printing and Services Shop ............................................. 20
Figure 11: Supply Chain of Eljet Printing and Service ......................................................... 22
Figure 12. Location of Eljet Printing and Services via Google Maps .................................... 22
List of Tables
Table 1: Eljet Printing and Services Table of Employees......................................................18
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I. Introduction
Managers should have proper knowledge on operations management since this aids
the business to fully utilize its resources to their full potential in order to attain maximum
customer satisfaction to very good or service a business delivers. Improving these resources
could involve making employees more productive, proper use and implementation of current
technology in operations, improving supply chain, and adding more value to every output
produced.
Operations management is an area of management mainly concerned with planning,
scheduling, and controlling of various activities that transforms inputs into outputs with the use
of resources such as machineries and labor. Operations management makes use of concepts
and systems that could generally affect the effectivity and efficiency of business operations
such as supply chain, information systems, accounting systems, quality management, and so
much more. This area of management covers several management issues as well such as
inventory management, below quality-standard production, mishandling of products,
unproductive workplace, and ineffective supply chain.
This paper aims to discuss the current situation of operations of Eljet Printing and
Services, a t-shirt printing service provider at Guimbal, Iloilo, through identifying the business’
transformation process, competitiveness, and design as well as its production/operations
process. We will also be looking into the supply chain and location strategy of Eljet Printing
and Services to see how effective it is. With the help of operation management theories and
techniques, we intend to identify points of improvement within the business and analyze
alternatives on how to improve their operations management in order to continue provide
quality goods and services to their customers.
A. Objectives of the Study
This paper generally aims to conduct a comprehensive study on the current operations
management of Eljet Printing and Services with the help of the knowledge and understanding
of concepts acquired for the semester in BM 240 – Operations Management course.
With this, the paper specifically aims to:
A. Study and evaluate the current situation of Eljet Printing and Services and apply
fitting operations management concepts to the business.
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B. Identify problems and discuss points for improvement in the company’s operations
management.
C. Compare and analyze alternatives, and provide appropriate recommendations for
the defined problems and points of improvement.
B. Scope and Limitations
The scope of the study is only within the operations management of Eljet Printing and
Services. This means that the assessments and recommendations to be made will focus on
improving the efficiency and success of the business’ operations.
The data and contents of this study is only limited to the information that will be willingly
disclosed by the manager of Eljet Printing and Services. Furthermore, this paper will not be
using unrelated management models and will strictly use and apply operations management
theories and concepts only.
II. Company Background
A. Company Background
Eljet Printing and Services started in 2005 as a t-shirt printing sideline of the
owner. As his sideline grew and tapped more customers and places, he focused more
on his t-shirt printing business and eventually became his main source of income. The
business then expanded its services by offering digital and sublimation prints aside
from traditional silk screen prints. Moreover, they were also able to print not only on
cotton shirts, but also on jerseys as well as on souvenirs like mugs, umbrellas, etc.
Throughout the years, the business was able to put up a physical store located
at Guimbal, Iloilo where they accepted printing services as well as sell plain shirts and
t-shirt printing products such as paint, silk screens, paper, and many more. In 2018,
Eljet Printing and Services opened a second branch at Miag-ao, Iloilo in order to cater
to the local market and tap potential customers.
In 2020 months after the pandemic, much like most businesses, Eljet Printing
and Services took a big hit in its sales due to the low number of customers and events
because of the imposed lockdowns. The business still continued its services and
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operations, however, they were forced to close their second branch in Miag-ao
because of the lack of customer and profits.
Today, Eljet Printing and Services has recovered from the losses it incurred
during the early months of the pandemic and is slowly getting back on track with the
return of its customers due to the ease in quarantine protocols.
In this paper, we will identify the business’ vision and mission as well as analyze
its transformation process, competitiveness, and design. We will also tackle their
production/operations process, supply chain analysis, and its location. With the help
of operation management theories and concepts, proper recommendations will be set
in accordance to the identified problem and points of improvement.
B. Mission and Vision
Eljet Printing and Services’ Mission
Being a still a small scaled business in the community, Eljet Printing and
Services’ finds ways to help people in the locality who are looking for part-time jobs or
a source of income who have cannot apply in other jobs since they cannot reach
minimum qualifications. That is why Eljet Printing and Services came up with a mission
to give job opportunities and meaningful work experience to both skilled and unskilled
people in the community.
Eljet Printing and Services also aims to form strong and lasting relationships
with its customers by delivering quality products along with great customer service as
well as give joy to customers by making simple occasions memorable with the shirts
and printing services that the business provides.
Eljet Printing and Services’ Vision
Eljet Printing and Services aims to be recognized as a business that provides
exceptional service and quality products to its customers at an affordable price, while
striving to grow and expand in the next five years.
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C. Organizational Structure
OWNER/MANAGER. In charge of overseeing business operations, inventory, contract
and order negotiations, and purchasing of supplies.
EDITOR. Creates t-shirt designs for the business by utilizing current IT equipment and
resources as well as editing software applications.
PAINTERS. In charge of the t-shirt printing process, which includes:
Creating silk screen frames
Transferring of designs to silk screen frames
Printing of shirts using the silk screen or digital process
Maintenance of machinery and equipment
STORE ASSISTANTS. In charge of assisting in inventory management and the daily
store operations and transactions as well as delivery of final products to customers.
III. Documentation of Company Operations
A. Transformation Process, Competitiveness, and Design
i. Transformation Process
The operations part of Eljet Printing and Services is mainly the part where the
painters make use of the inputs or the raw materials such as plain shirts and paints
and transforms them to the desired outputs of customers through a standardized
Owner/Manager
Editor Painters Store Assistants
Figure 1: Organizational Structure of Eljet Printing and Services
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process of shirt printing. Same with all organizations, the transformation of Eljet
Printing and Services is essentially transforming inputs into outputs that would satisfy
the customer. In the case, the inputs are the raw materials such as paint and plain
shirts as well as silkscreen, film, wood, and paper for the frame. The desired output
would be the customized shirt printed with the design of the customer. These plain
shirts undergo through different kinds of processes inside the business’ facility in order
to transform them from raw materials to finished goods.
The first part in the transformation process is the inputs which are categorized
into two resources; the transformed and transforming resources. The transformed
resource are the inputs that will be transformed or converted into an output desired or
specified by the consumer. In the case of Eljet Printing and Services, transformed
resources include all materials in their raw state such as plain shirts, paint, wood, and
silk screen. Customers and information are also considered as transformed resources.
As for the transforming resources, these are inputs used to transform or convert the
raw materials into outputs. This includes machinery and tools, human labor, rotating
printing platform, heat press machine, blowers, painters, and editor for Eljet Printing
and Services.
The next part is where the transformation process begins from plain shirts to
finished customized shirts. This is where the editor starts creating and customizing the
design for the customer, the painter makes the silkscreen frames, adhesives are
applied to the printing platform, and the plain shirts are inserted into the platform as
well. The test prints are first done before printing the actual shirts for production. Once
done, designs are then printed to the shirts with the use of paint and silkscreen frames
Figure 2: Transformation Process of Eljet Printing and Services
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or through digital or sublimation process. These are then blow dried or heat pressed
to finish the printing process. With this, the transformation of the raw materials which
are the plain shirts to finished customized shirts of the customers is finished.
Another part of the process is the output which are the customized shirts. These
are folded and packed and ready to be delivered to the customers. Successful delivery
of finished products is not the end of this process. We still need to gather, analyze, and
implement the feedback received from end-users. Feedback is an essential part of
transformation process since it gives us an idea how the customer felt in regards to
the products they received. This also helps the business identify the points of
improvement whether it be the raw materials, the processes done during production,
or the mode of handling or delivery. Customer feedback is gathered through different
methods such as surveys, ratings, social media interactions, etc. In the case of Eljet
Printing and Services, customer feedback usually comes directly from the customer
when they are coming back from repeat orders. They would state how satisfied they
are with the product or they would identify points where they want improved. Some
complaints that the businesses have got over the years were mostly discoloration of
shirts after a number of washes, cracking of paint, and shirts with loose stitching. And
over the years, Eljet Printing and Services have understood and implemented these
feedbacks from customers in order to provide quality products and service by
researching better paint alternatives, switching shirt suppliers, and a lot of trial and
error with most of their materials. This is why customers have been coming back
because they see that their feedbacks are being strongly considered and carried out.
In order to properly follow the transformation process of the business, control
mechanisms are needed. An example of a control mechanism that is applicable to the
business is Personal Control. This type of control is more focused on the relationship
of the management to its employees. In Eljet Printing and Services, the manager is
directly supervising store assistants as well as the painters and editor. Since the
business is small, it is easier to control the behavior of employees this way. Through
personal and direct supervision, this ensures that every employee works in accordance
with the business goals and values. Another control mechanism that Eljet Printing and
Services utilizes is the Output Control. This refers to the actions or strategies that the
business use to maintain the quality in their products and services and to achieve their
output and productivity goals. Eljet Printing and Services implements this type of
control to continue producing quality products by enforcing standard steps and flow of
work during production. The effectivity of this control mechanism is measured mostly
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through productivity, sales growth, and number of damaged vs quality goods
produced.
ii. Competitiveness, Strategy, and Productivity
Currently, Eljet Printing and Services is the only business in its market that
provides both printing services for shirts, mugs, and other items and sells plain shirts
and printing materials. However, the business lacks a tailoring service for custom shirts
and jerseys as well as tarpaulin printing services that other businesses in the market
have. Eljet looks to increase their competitiveness by offering tailoring services for
customer shirts and jerseys through partnerships with local tailoring shops. Eljet also
has lower pricing for its products compared to competitors and is easily negotiable
depending on the number of shirts or other products ordered. The store location of the
business is also strategically placed at the Guimbal Public Market so that it will be
accessible to all customers since it is located at the center of the municipality. The
owner of Eljet Printing and Services always looks for improvement whether it may be
in the shirts they provide, kinds of paint they use, and machines or equipment they
operate to ensure that they provide quality shirts its customers. Quality is not only seen
in their products, but also on how they serve and cater customers as well as how the
editors and painters ensure that every finished product they provide is clean and free
of damages. Currently, Eljet Printing and Services has no social media presence and
their only means of advertisement or promotion is through “word of mouth”.
As stated earlier, Eljet Printing and Services applies a low cost pricing strategy
to its products and at the same time gives out quality products and services to its
customers. Services and products are of good quality since the business is heavily
invested in printing machinery and equipment and the owner is very hands-on in the
operations and production of the business. Also, Eljet also differentiates itself from
competitors by offering both products such as shirts and paint and printing services
compared to other businesses that only provides either products or services. However,
the business still lacks other services that could potentially give them better competitive
advantage and success in the current market. A SWOT matrix have been developed
for the business to give a better view on their current situation as well as different
strategies that could help them.
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Productivity in the business is also satisfactory since there is already a system
set on how the production process works inside the facility. There is also enough space
inside the facility to ensure a smooth flow of movement and less traffic when working.
The continuous improvement and maintenance of machinery and equipment helped in
the efficiency of work as well as to the safety of the workers. Safety is also a priority in
the workplace since there is good ventilation and water supply in the facility. There are
also multiple fire exits and fire extinguishers are provided inside if there may be any
unwanted fire incidents since there are flammable items used in the workplace. Good
signal and internet is also provided as to not delay any communication between the
owner or customers.
However, there are also factors that affect the productivity in the operations.
Most newly employed workers in the facility have limited knowledge on technology and
printing equipment that slows down production at first. This is resolved through
trainings and supervision given by the owner and senior workers. Furthermore since
the pandemic began, there have been employee layoffs which resulted to more work
given to the retained employees with little to no raise in pay.
Figure 3: SWOT Analysis of Eljet Printing and Services
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Eljet Printing and Services measure their productivity through different Key
Performance Indicators (KPI). When it comes to their production process and
operations, productivity is based on the number or the percentage of damaged
products versus the total number of quality finished goods produced. Another KPI that
Eljet Printing and Services makes use of during production is the percentage of on-
time deliveries of finished goods. Average time consumed during pre-production
(quality check of raw materials, preparing shirts, organizing paint, etc.), actual
production process, and post-production (quality check of finished goods, packing,
etc.) are also KPIs to measure productivity during the production process.
With regards to the other business operations of Eljet Printing and Services
such as sales, customer service, and employee satisfaction, the business also has
various KPIs to measure productivity. For example, monthly sales growth and revenue
per sales clerk is used to measure sales productivity. Repeat customers, number of
customer queries answered, and number of customer complaints received and
handled is one way to see productivity in the customer service area. Lastly, employee
satisfaction and employee turnover rate is used to measure productivity in employee
handling.
iii. Product or Service Design
Currently, Eljet Printing and Services mainly offer t-shirt and jersey printing
services to its customers. There are also different printing options given to customers
on how they want their t-shirts made. Either through the silkscreen method, digital or
stickers, or sublimation process. Aside from shirts and jerseys, Eljet Printing and
Services also offer printing services to different items such as umbrellas, hats, and
mugs.
Eljet Printing and Services also sells plain cotton, honeycomb, and dri-fit shirts
as well as printed shirts on display. Printing supplies and items such as paint, special
papers, and films are also being offered by the business.
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