Operations Management Report

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This report is a case study analyzing the operations management of Concept Design Services (CDS), a company designing and manufacturing home appliances. It examines the company's use of operational models, focusing on the 4Vs (Volume, Variety, Variation, Visibility) and different process types (project, jobbing, batch, mass line, continuous). The report assesses how these processes contribute to or hinder the achievement of CDS's operational objectives (quality, speed, cost-effectiveness, dependability, flexibility, and product supply). A critical analysis of the chosen process strategies is provided, highlighting advantages and disadvantages. Finally, the report offers recommendations for improvement, including implementing quality gateways, optimizing production processes, installing a data measuring system, utilizing advanced technology, and conducting timely feedback from stakeholders to enhance overall operational efficiency and customer satisfaction.
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Operations
Management
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Main body........................................................................................................................................4
.........................................................................................................................................................9
Recommendation with conclusion ................................................................................................10
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INTRODUCTION
(a) Concepts design services makes different types of homes and appliances products.
The company is focusing on designing different home appliances with high quality. From the last
few years, entity is emphasizing on manufacturing and distributing products for other business
house. Entity is hiring their staff for designing its products (Alderton and Saieva, 2013). Main
aim of the organization is manufacturing and designing care products and offering wide ranges
of products.
Operations management refers to administration of different business practices so that
they can create a high level of efficiency that in turn helps in increasing overall effectiveness of
the firm. Operation management assists in converting raw material into finished goods and
services effectively and efficiently so that they can attain profit. Managing operations as well as
business activities is necessary in the company which will aid in attaining success in the
competitive market (Gómez-Expósito, Conejo and Cañizares, 2016). Operational management is
a business function which is responsible for managing process so that they can develop better
goods and services. To produce better and qualitative merchandise, they are required to do
proper planning and organizing. Along with this, in different activities the company needs to
carry out the work with proper coordination as well as utilizing the available resources.
Operation management is a business function which aid in managing people, equipment,
technology (Hildebrand, 2015). Moreover, they have to use appropriate information in producing
qualitative products and services.
The contribution of the operation department in the CDS is that with the help of this they
can produce quality in their products. With the help of the operation department CDS can control
their costs in effective manner and along with this it also helps to improve their manufacturing
practices.
. Management of operations play a important role and also helps in converting the raw
material into finished goods. The human resource department of business entity helps in
managing all the activities and provides training to the workers that how they can use new and
upgraded technology to make finished goods (Strande, Ronteltap and Brdjanovic, 2014). There
are two different operation required to be carried out in the corporation which includes
manufacturing operation and service operations. Manufacturing operation is a tangible product
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whereas service operation is an intangible product. In manufacturing operation, involvement of
consumer is less but in service operations' involvement of customers is high. \. Manufacturing
operations are capital intensive but service operations are labor intensive (Slack, 2015).
Operation management plays an important as well as essential role in the business entity and
supply chain.
This assignment is based on the case study which is designing house partnerships at
concept design services. This case study includes the concept of product. Along with the
manufacturing operations as well as planning and distribution services (Slack, Brandon-Jones
and Johnston, 2013). This case study also includes some challenges which are based on the
concept of designing services. In the below mentioned report, the discussion is based upon
different operational methods and strategies which are adopted by the company to provide the
best product and also to give satisfaction to the consumers. Moreover, discussion on 4V's profile
of the company's products and services has been done. Along with this, some recommendations
are also given to improve their operations.
MAIN BODY
(b) Use of operational model
The customer is that person who buys product or services of company and thorough
which entity can survive in the market. Customers buyers product or company and through the
business firm gain profits. Consumers helps to maximize profits and ensure long term growth.
In every firm, there are two types of customers. Consumers are mainly divided into two
parts i.e. internal and external.
Internal customers
The internal customer includes staff members, suppliers and stakeholders (Stadtler,
2015). These customers help the organization in delivering high quality products to its external
customers. They are directly related to the entity's daily activities and assist them in achieving
their business objectives. The expectation of internal customer from entity is received significant
money and ensure their personal growth. Concept design service share their profits with their
internal customers (Akkerman, Farahani and Grunow, 2010). With the help of this approach,
they create job security within them and also aids in providing better services to their external
customers.
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External customer
External customers are those customers who buy products for the company. For success
of every organization, it is important to maintain external consumers. They also ensured entity's
growth for long term and helps to them for maximize their profit. External customer's
expectation is to receive high quality products from the entity (Larson and Gray, 2011). Their
expectations are to receive high quality products from the organization at reasonable costs. CDS
always focuses on delivering high quality services to its customers. It creates brand loyalty
among customers and inspirced to them for repeat purchasing.. With the help of this approach,
they gain their buyer’s trust and develop long term relationship with them.
Following are the operation objectives of CDS.
Quality
Speed
Cost effective products
Dependability
Flexibility
Supply a product
Model for operation management
Operation management is important for every entity. For the CDS, it is considered as
important factor which help them in designing and manufacturing their products to its customers.
There are various types of model which can be used by the entity for managing its operation
management (Lee, 2013). With the help of 4VS model, they can easily transform their inputs
into outputs. This model consists of four dimensions such as Volume, variety, variation and
visibility.
The Volume Dimension
This dimension focuses on developing high volume in its products with low costs. For an
effective operation management, it is important to produce large numbers of products with low
costs. CDS also uses this dimension for producing cost effective services to their consumers
(Martinez, and et. al. 2010). The designing house is engaged in designing and manufacturing
different type of home appliances. With the help of this model, they can offer low cost products
along with high volume.
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The Variety dimension
The focus of this dimension is focused on developing number of products along with
different varieties. This model make able to firm for manufacturing different products as per
requirements of their customers. It also creates flexibility in operation management (Porter,
2011). Through this model, has become capable in manufacturing products to its customers at the
low cost.
The variation dimension
This dimension focuses on changing the capacity of manufacturing as per demand and
cost. 4VS model provides flexibility to the operation management to make change in their
variation as per demand of their customers at the low cost (Lee, 2013). CDS uses this model to
fulfill their customers demand and also produce high quality services to them.
The visibility dimension
This dimension refers to the customer's ability to see, track their experience their orders.
Satisfaction level of the customer increases if they receive their products on time. CDS uses this
dimension for making delivery of their products to their customers. The entity is focusing on
identifying different ways so they can deliver its products on time.
Process of operation management
There are various types of process which assists in operation management for achieving
their targets. Some of them are discussed below (Martinez, and et. al. 2010).
Project process
Employees of business entity have to use the appropriate concept and process in
designing the services for doing the better and qualitative projects and operations in the business.
This process is complex in nature and this process should be used on a large scale which assist in
making a high quality products (Porter, 2011). It helps in achieving all targets and having a scope
for providing best work. Along with this, CDS have to make changes in their process. They have
to manage all operations and make the products according to the needs and wants of the
consumers which help in providing satisfaction to them. By using this process, they can define
all the objectives which needs to be achieved whether they are starting and finishing objectives.
It also includes many things that is work should be completed in a specific time and have to
provide better quality as a reasonable price.. Along with this, it aids in reducing cost of the
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products. They have to use different types of skills which is used by the workers to make
qualitative products and workers have tio use these skills with a proper coordination and also in
a, effective manner (Raza, and Hanif, 2013). Further, CDS have to use appropriate resources so
that all work can be managed in time so that they can attain goals and objectives.
Jobbing process
For the jobbing process, the entity requires skilled workers. This process helps the
organization in for manufacturing small volumes of products. This process assists the operation
management in making custom products for its customers. With the help of this process, CDS
manufactures small batch of quantity.
Batch process
This process aids the organization in making the standard products which helps the
company for increasing demand of its products. It assists the operation management in
manufacturing higher volume of products for is customers. This process is used by entity for
producing large number of products .
Mass line process
It is used by the operation management when they want to manufacture huge amount of
goods (Subramanian and Ramanathan, 2012). With the help of this process, entity can make
standard of its products and manufacture mass volume With the help of this process, CDS can
fulfill large number of demand for its customers so they can create repeat purchasing
Continuous process
This type of process is generally used at that time when entity want to produce extremely
high volumes products with low variety. This process is considered very difficult. This process is
generally used by entity when they want to manufacturing to similar nature of products for its
customers
(c) Operations process helps of hinder in achievement of operation objectives
Operational process that are categorized under operation management are mentioned
below (Van Dooren, Bouckaert and Halligan, 2015). These include particular details and
validation facts which helps in concluding their relevance to operational objectives. Following
are objectives of operation management of concept design services.
Quality
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The aim focus of operation management is to add quality in their services or products.
The operation management help to organization for maintain quality in their products by offering
different types of techniques such as double check of every products. This approach helps to
entity for making their products defect free.
Speed
Speed can also be refers to times take by company for making delivery of its products to
its customers (Wang, Lai and Shi, 2011). CDS always maintain speed in their productions and
distribution. The company uses effective approach to maintain their speed. This helps to firm for
manufacturing more products to buyers within time.
Dependability
It means being on time. In CDS operation management helps to delivering heir products
on time along with agreed costs. Company also give preferences to time and perform their
functions as according to time which help to create customers loyalty.
Flexibility
It refers to how fast firm adopt changes and make use in their productions so they can
achieve their targets (Wang and et. al., 2012). With the help of flexibility entity can adopt the
market trends so they can easily products different types of products to their consumers. The
operation management of the company help to achieve flexibility by making specific schedules
for delivery and their production department.
Costs
The main aim of operation management is to delivery number of products at low prices.
Operation management helps to firm to achieve their targets by delivering products at low prices.
For market expansion it is important for firm to produce cost effective products for their buyers.
Supply a products
The another operation objective is supply a product as according to customers needs and
their preferences. CDS makes different types of home appliances for its customers through this
approach they need to focuses more on design of products so they can attracts more customers in
its business.
Contribution of operation process for achieving objectives
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Operation process that are categorized under operation management are mentioned below
(Wang, and et. al., 2010). This includes particular details and validation of facts which helps in
concluding their relevance to operational objectives.
Contribution of project process
It is considered as foundation process in operation management, project process
represents specific needs of customers. CDS is manufacture and design home appliances for its
customers. For this they need to make quality products for its consumers. This types of process
are useful at the time when buyer demand specific product and firm need to manufactures them
separately (Wen, Tsai and Chang, 2014). CDS has to plan out its resources with special
preferences given to this part of operation management. Through this process entity generate
huge profits and fulfill their customer's demand specifically. For this process entity need to
change their operation every time.
Contribution of jobbing process
CDS provide customers oriented service. For this they need to skillful and quality
oriented human capital. This objective can only be achieved when jobbing process is clearly
defined. This process helps to firm for making small volumes of products within time. Through
this process firm can also achieve its operation objective i.e. flexibility. This helps in achieving
organisational objectives without much customer intervention (Alderton and Saieva, 2013).
Along with flexibility this process is also assisted to company for maintain their speed and costs.
But, this process is also has some disadvantage such as CDS will suffer profits. These are
comparatively low, which indicates more client acquisition for the organisation.
Contribution of batch production
CDS, in order to avoid chaos and excessive costs they use clubbing process. Batch
production is essential for firm for producing bulk quantity products (Gómez-Expósito, Conejo
and Cañizares, 2016). Batch production is does not get effected by demands, fluctuating clients
and changing economic polices. For running this process firm need to invest only minimum
capital and also provide good results in long run. Thus , batch production is feasible and easy to
monitored within CDS operating systems. Home appliances is largely depended on fashion
trends of customers. Batch production process helps in achieving operational objective of high
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speed production with great flexibility for fluctuating markets. This means that batch production
is intermittent but useful for achieving entity's operational objectives.
Contribution of mass production
Economic stability is achieved when mas production is established. Through this process
firm can targeted mass customers as is does no get effected by fluctuation of demand and
expectation of customers. Unlike, batch production where small quantities of product are
manufactured, mass production is focuses on fulfil demand of national and international
customers. For conducting this process less human efforts are required.
Mass production are helpful in meeting operational objective only when volumes of
commodity is to be manufacture in similar nature (Performance Management. 2016). CDS's is
focuses on developing conceptual product design that could not comprised for meeting bulk
requirements (Strande, Ronteltap and Brdjanovic, 2014). Hence, the firm adopted line production
strategy for creating its complex design home-wares with great efficiency and desired design
outputs. When, quantity and quality both are accomplished, operational objectives completely
satisfied.
Contribution Continuous production
This process make contributed in entity for making continuous production. This process
is helps to CDS for making continuous manufacture its production. It is generally used at the
time when firm want to operated high volume (Slack, Brandon-Jones and Johnston, 2013)(. For
attaining this process CDS use robots in its operational management and make conceptual
designed home ware products for its consumers. This process is also useful in order to maintain
accurate and precise design along with appropriate quantity. CDS's bulk production is successful
with help of continuous production. It gives efficiency and quality control for product.
Analysis of process strategy
From the above report it is analysis that CDS make choose their process strategy as per
requirement of their customers. If customers want products in heavy quantity then they select
mass production process and if they want to make production in specific quantity then they select
batch production. The strategy of production process is varies as according to the requirement of
customers.
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Although capacity of production, is huge but for making bulk quality heavy investment
is required for setting plant and machinery. Another disadvantage of this process is lack of error
correction capability (Operations process model. 2017.). Hence, for this process entity need to
develop strategy before implementation of this into operational plan.
RECOMMENDATION WITH CONCLUSION
(d) Concept Design service UK Ltd has been working for providing unique services to its
customers along with quality. For making home ware products it is important to determine
demand of buyer so firm can achieve its targets effectively. Summing up the present report it is
concluded that operational management is interlinked with entity's other department. For a
manufacturing concern it is important to manage its operational activities effectively so they can
achieve their business objective various process that are involved in attaining operational
objectives clearly. Customers demands are fluctuating with trending market. Hence, certain
recommendation have been provided for achieving greater feasibility and cost effectiveness.
There are certain areas which need to improve for getting the best customer response. Following
are changes which they need to apply in order to achieve its operation objectives.
Controlled quality of products
CDS should use quality gate way for which helps to them for making quality of products
for effective. For this entity need to recruit specialised staff that assist to firm for making quality
products for its buyers. In operational management there are chances where mechanical errors
may occurred and ruin quality of whole batch. CDS need to take care of such losses so they can
maintain quality of its services for end users. Thus, With the help of quality gateway firm can
make their services defect free along with this company can appoint special staff for monitoring
for improving the quality of products should make changes in their operation management
process by adopting different types of operation practices such as lean production and Six sigma.
Production Process
CDS gas to take correct decisions regrading to production process. Before making any,
decisions regrading to production process firm need to considered different variable such as
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demand and choices of customers which might be effect operational management. Quality of
products is totally depended on process of production. For they can also make some changes in
their production process like before choosing nay production they need to define the purpose of
the products such as type of products and their quantity. Hence, CDS need to take correct
decisions regrading to choose production process. For effective production process firm can use
assemble line production or jobbing process.
Installed data measuring system
If a firm, maintain its data in processing system then management is become for taking
effective decision. When disciplinary process, are follows within organization then operational
management become efficient. For this CDS should make changes in its develop of data systems
coordination systems in between operation department and other department. It can only be
achieved if firm strictly monitored and record its data for futures references.
Use of advance technology
If CDS use, upgraded technology in its operational management ten they are become able
to design and manufacture unique home appliances. It assists to firm for attracted more
customers in its business along with this use of advance technology helps to company improving
their productivity.
Conduct timely feedback from stakeholders
`No products is rated successful is it is not receives positive feedback. CDS should
conduct timely feedback from its customers so they make important modification in its business
plan. Time analysis of feedback from stakeholders helps to firm to take corrective actions. In
Home Ware industry competition is widely increases so conducting market survey is important
for CDS.
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