Operation Management Report: Quality, Capacity, and Strategies

This report analyzes operations management, focusing on quality management and capacity planning within the context of ABC Garments. Part One delves into quality management, defining quality and grade, and exploring quality dimensions like fitness for purpose and value, alongside the importance of data and formal processes. The report also examines ISO 9001 certification, TQM, and process charts. Part Two addresses operations management, comparing lead and lag capacity strategies and recommending two capacity planning strategies. The report also includes an examination of the two capacity planning strategies and the application of these concepts to the garment manufacturing industry, providing a comprehensive overview of key operational considerations.

Running head: OPERATION MANAGEMENT
Operation Management
Name of the Student
Name of the University
Author’s Note

1OPERATION MANAGEMENT
Table of Contents
Part One Quality Management............................................................................................3
Answer to Question 1......................................................................................................3
Answer to Question 2......................................................................................................3
Answer to Question 3a.....................................................................................................4
Answer to Question 3b....................................................................................................4
Answer to Question 4a.....................................................................................................4
Answer to Question 4b....................................................................................................5
Answer to Question 5a.....................................................................................................5
Answer to Question 5b....................................................................................................6
Answer to Question 6a.....................................................................................................7
Scenario 2- Monitoring of diameter of the buttonholes within a specified time period..7
Answer to Question 6b....................................................................................................8
Part Two-Operations Management......................................................................................9
Answer to Question 1.1...................................................................................................9
Answer to Question 1.2...................................................................................................9
Answer to Question 1.3.................................................................................................10
Answer to Question 1.4.................................................................................................10
Answer to Question 2.1.................................................................................................11
Answer to Question 2.2.................................................................................................12
Answer to Question 2.3.................................................................................................12

2OPERATION MANAGEMENT
Answer to Question 2.4.................................................................................................13
Answer to Question 3.1.................................................................................................14
Answer to Question 3.2.................................................................................................15
...........................................................................................................................................15
Answer to Question 3.3.................................................................................................16
References..........................................................................................................................18

3OPERATION MANAGEMENT
Part One Quality Management
Answer to Question 1
The increasing use of quality management is depicted to be essential in initiating the
necessary steps towards improving the overall quality in the organization. The management team
is further seen to make use of the management and planning tools which are required for decision
making process for contributing to the competing priorities (Christopher, 2016). In the given
case study of ABC Garments, the board has realized that the strategic options as per the
operation’s manager needs to be segregated from ‘Quality” and “Grade”. “Quality” is defined as
the conformance to a specific requirement. Therefore, it is important to understand that “quality”
for ABC Garments will comprise of conformance to certain requirement. These are mainly
inferred with the customer requirements.
On the other hand, “grade” is a category assigned to the deliverable’s as per the technical
configurations. This suggests that products of varied range of configuration are maintained
according to separate grades. Therefore, in case of the manufacturer such as ABC Garments,
grades need to be assigned to the process as per technical configuration. For instance, it may
adopt ISO 9001 as its grade which will define set of inherent characters which will fulfill the
requirements. Similarly, it may also adopt six-sigma. It can be inferred that Quality
management system such as TQM gave birth to grading or methodologies such as six sigma and
ISO. While grades like six sigma and ISO focuses on increasing efficiency and reducing
variation, TQM emphases on long term improvement in the quality.

4OPERATION MANAGEMENT
Answer to Question 2
Quality Dimensions How it applies to the manufacture of Children’s garments
Fitness for purpose The quality control for the garment needs to be depicted as per the
demand of the customers and value for money. The producer of the
apparel needs to look forward to constantly acknowledge the quality of
the work. Fitness for purpose is aimed at implementing the relevant
quality control at the initial stage (Fahimnia, Sarkis & Davarzani,
2015).
Compliance The manufacture of children’s garments needs to ensure this factor
with maximizing the production of goods within specific tolerance
limit. This needs to achieved with satisfactory and results as per the
design, styles, suitability of components and fitness of product for the
market (Jacobs, Chase & Lummus, 2014).
Value The application of the value proposition should be considered as per
itemizing the variables which are evident in terms of garment and
fabric production. The development of the specific parts of the section
will be able to ensure the overall design compliance and recording
systems. The effects pertaining to the different factors are considered to
be apparent in form of ensuring customer satisfaction (Monczka et al.,
2015).
Answer to Question 3a
The importance of the data contributing to the success of ABC garments can be directly
depicted in form of instant availability of the information. In addition to this, the company will

5OPERATION MANAGEMENT
be also able to contribute to the relevant form of the areas which is considered with protecting
the interest of the business (Brandenburg et al., 2014).
Answer to Question 3b
The information and data collection policy need to be ensured by realization of the
strategic options which is needed by the operations manager of ABC garments. It is also
important to understand the quality of the policy pertaining as specified by the directors of the
company. The respective information needs to be further aligned with the interests of the board
of directors as per the competitive advantage. The information sharing policy need to understand
the requirement for the quality management systems which is not seen to depict the relevant
nature of the information pretreating to techniques like Six Sigma and TQM. The relevant nature
of the data and information is applied with the understanding of difference among the quality and
grade (Brandenburg et al., 2014).
Answer to Question 4a
The maintenance of a formal review and processing of data is essential to follow a
standardized process. The main operational objectives of the company are completed as per
daily, weekly, monthly, or yearly basis to ensure that it is runs uninterruptedly. It is required for
the organizations to define the rules which are stated as per the scope, methods and quality. The
standardized process is further inferred with some of the evident benefits such as improving the
clarity, guarantying quality, promoting productivity, boosting morale of the employees and
improving the customer service. The importance of formal process needs to be depicted as the
quality process which will be able to capture the valuable and important data. The standardizing
is further considered with minimizing the chances of missing crucial details and ensuring
appropriate policy and procedure of documentation (Pagell & Shevchenko, 2014).

6OPERATION MANAGEMENT
Answer to Question 4b
The creation of the formal process needs to promote eliminating the inefficiency. This
may be depicted as the main result of the sorting out the ambiguity and proving the appropriate
quality control technique. Therefore, the new policy will ensure that the operations will be able
to carried out in terms of lesser form of quality control issues. The benefit of eliminating the
alternative procedures may be important in reducing the conflicts and unhealthy competition.
The standardization process will also be important for boosting the morale of the employees and
creating a sense of achievement among the people. The capturing of valuable information
should be also included with making a connection between the relevant standards followed in the
organization and avoiding needless processes. The improved sense of the customer knowledge is
also depicted to be important as per ensuring lesser scope of ambiguity and higher total output
thereby increasing the employee morale and productivity (Pathak, Hazarika & Pandey, 2015).
Answer to Question 5a
The importance of ISO 9001 certification is depicted with adhering to the requirements
which will be able to meet the requirements of the customers. In addition to this, the companies
will be able to get More Revenue and Business from New Customers. This is evident in form of
responding to the “requests for quotes (RFQ)”. Some of the various types of the other
importance of ISO 9001 certification can be traced with Improving the Company and Product
Quality. This will be ensured with adopting the QMS as per the improved quality level for the
entire organization. It needs to be also discerned that the importance of increasing Customer
Satisfaction with the products is considered with the various types of the stated reasons which
are adhering to the implied requirements. The organizations need to also ensure that the relevant
measures are applied for Describing, Understanding and Communicating the overall processes of
the company. Lastly, the importance also lies in Developing a Specialized Culture and improve
Employee Morale (Hazen et al., 2014).

7OPERATION MANAGEMENT
Answer to Question 5b
The relevance of TQM in business should be inferred with commitment and
understanding of the employees. Secondly, the operations of the company can be significantly
improved in terms of culture and quality improvement in the operational process. Some of the
other benefits are directly associated to the various types of the measures which are considered
as per continuous improvement in the process. Moreover, the operations of the company include
focusing on the customer requirements and implementing effective control. This is recognized to
be evident with focusing on the customer requirement and building strong relationship with the
customers. It needs to be further seen that that the various types of the focus of the company is
seen with customers paying relevant attention with the long-term survival as per the policies
prescribed under TQM (Govindan et al., 2014).

8OPERATION MANAGEMENT
Answer to Question 6a
Scenario 2- Monitoring of diameter of the buttonholes within a specified time period.
No
Yes
Invoice receipt
into payment
system
Placing of request
Approval
Decision
Creation of
purchase order
Order
fulfillment
Sending of
Invoice
Receiving
Goods
Goods received
but not invoiced
(GRNI)
Match
ed?
GRNI
Removed
Invoice
Release for
payment
Preparation of
payment order
Receiving of
payment
Yes
No

9OPERATION MANAGEMENT
The process chart shown above relates to supervision and monitoring of the diameter of
the buttonholes within a specified time period. The considered range for the operational
procedure is seen with 0.25 to 1.0 cm. The initiation of the process is considered with placing of
request and approving the decision. In case this is approved then the purchase order will be
created. The next step is considered with receiving of the goods which involves sending the
invoice and considering the Invoice receipt into payment system. In case this step is approved
then the ordering process needs to be proceeded with receiving of final payment for the orders.
In case Goods are received but not invoiced then the invoke needs to be released for the final
payment for range of 0.25 to 1cm (Genovese et al., 2017).
Answer to Question 6b
Scenario 4- Understand the production process at each step
The complaints manager needs to ensure that the various types of the process involved
with several steps. These are considered with the process beginning from the initiation of the
idea to the finished product. Some of the duties in the monitoring process needs to be depicted
with process of product Design, process of Fabric Selection and Inspection, process of
Patternmaking, process of Grading, Marking, process of Spreading, process of Cutting, process
of Bundling, Sewing, process of Folding, process of Finishing and Detailing, process of Dyeing
and Washing and process of quality checking. Therefore, it is necessary for the company to
ensure whether the complaints manager is able to include the necessary process pertaining to the
different types of the products produced by ABC Garments. The issues need to be fixed in terms
of using of the valuable information in an appropriate manner, keeping up to date with the
technological advancements and enhancing the efficiencies by saving of time and cost (Mylan et
al., 2015).

10OPERATION MANAGEMENT
Part Two-Operations Management
Answer to Question 1.1
The two strategies discussed are identified with lead strategy and lag strategy. The lead
strategy is defined with upfront investment in case there is requirement for higher capacity. For
instance, the new vineyard may anticipate lesser than 10 acres of land in the first 5 years.
However, the purchase of 100 acres of land is considered as the long-term investment in the
business. On the other hand, lag strategy is seen with current capacity is stretched with the limits
before making provisions for higher capacity. This strategy can be referred in a call center with
10 staff who doesn’t require to hire more number of employee’s unit all the employees are seen
to be working overtime. This may considerable serve as a boost to efficiency and productivity as
soon as the current resources are utilized with maximum intensity (Azadi et al., 2015).
Answer to Question 1.2
The recommendation of two capacity planning strategy needs to be inferred with match
strategy. This will involve adding capacity in small qualities for responding to the changes in the
demand of the market. This is seen as a moderate strategy for the organization. The incorporation
of the second strategy for the organizations needs to be identified as per the adjustment strategy.
This strategy is further in line with making adjustments as per capacity of the small or large
amounts pertaining to the consumers demand and making changes to the system architecture
(Dubey et al., 2017). Furthermore, in the context of system engineering this strategy is seen to
be in relevance with number of factors which will be able to enhance the long-term decision
making to enhance the overall decision making of the firm. The excess capacity needs to be
monitored against critical decision making. The failures pertaining to the same needs to be
depicted as per the decisions which will be affecting the overall performance and delays in the
present operational areas (Martínez-Jurado & Moyano-Fuentes, 2014).

11OPERATION MANAGEMENT
Answer to Question 1.3
The most suitable capacity planning strategy for the given case needs to be proceeded
with Lead strategy. As per the given situation the Call US plumbing company Limited is
depicted to be constrained with regional plumbers, retailers and contractors based in New
Zealand. The manufacturing process of the company is further borne with the number of issues
which are seen to be based on the various types of the considerations of increasing demand for
one particular items. Therefore, the lead strategy adoption will enable the company to focus on a
more streamlined opportunity of improving the predictions of future customer requirements for
the products. In addition to this, the lead strategy will be also appropriate for adopting to the
seasonal changes in the demand (Ellram & Cooper, 2014).
Answer to Question 1.4
The incorporation of the capacity planning in the given case will be able to bring about
possible improvement pertaining to throughput, timely delivery of the required unit of the
product and lead time information along the items included in the WIP. Some of the other
advantages of the capacity planning as per lead time needs to be seen with better management of
the production cost and allocation of the resources. Some of the other advantages of such a
process can further consist of the various types of the additional information which are directly
related to the on-time delivery. The lead time capacity planning for the plumbing supplies will be
able to provide time required by the suppliers for deciding on the exact cost allocation for the
specific overheads. This needs to be condoned as per production cost during the Elbow, Tee,
Reducers and other pipe fittings. Furthermore, the manufacturer will be also able to know about
the resource utilization for the plumbing supplies. These are needed to be discerned in form of
deciding time required for the delivery of the products (Rozar et al., 2015).

12OPERATION MANAGEMENT
Figure: Lead time capacity planning for Call Us Plumbing Supply
(Source: Ptak & Schragenheim, 2016)
Answer to Question 2.1
The description of the two inventory models has been represented in form of pull
inventory model and hybrid push-pull method. The pull inventory model refers to the ability of
the organizations to manufacture the products as requested by the customers. This model of
inventory is often referred as just in time or JIT. In addition to this, another relevant model can
be discerned with hybrid push-pull method for appropriately managing the inventory/ stock
items. The companies are seen to adopt this model for tracking the product and supplies as per
future demand. This model is often referred as the lean inventory strategy which the companies
heavily rely upon during the forecasting process and adjusting the levels of inventory as per the
actual sales amount (Rostamzadeh et al., 2015).

13OPERATION MANAGEMENT
Answer to Question 2.2
The application of the first model to the given case is EOQ. Call Us Plumbing needs to
predict the lowest amount of inventory without going out of stock. This is will be conducive for
the company in knowing about the peak customer demand and obsolete inventory. The
application of this model is aimed at increasing the order predictions for producing a particular
item. In addition to this, there is additional opportunity for the organization to prevent the present
issues such as delays in the production of the component material. Secondly, it will be also able
to create more amount of provision for creating less interdepartmental and staffing conflict due
to better utilization of the resources (Rajeev et al., 2017).
The adoption of the second process of inventory is applied with ABC analysis. This is
process will allow Call Us Plumbing to segregate the inventory into three categories. For
instance, in A category of the items, the plumbing supplier can decide to allocate the best-selling
items which do not consider all the space in the warehouse. Similarly, in the B-items Call Us
Plumbing may deicide to allocate the various types of the mid-range items which are sold
regularly but cost more than the former category. This will allow the company to identify the
rationale for the product returns in the global market. Similarly, in the C-Items, the rest of the
inventory will make up for the most of the inventory cost. This strategy will allow the supplier to
track the missed global opportunities (Formentini & Taticchi, 2016).
Answer to Question 2.3
The ideal model Inventory Management system needs to integrate the present practices
with the cost barriers, attitudes of the managers and the owners. This will allow to tackle the
prevent problems which are associated with the umber of issues such as overstretching of the
manufacturing and production resources, inability of the workers to track the provision for rapid
growth and resolution of the conflicts among the staff. Furthermore, the various instances of the

14OPERATION MANAGEMENT
interdepartmental and conflicts for staffing can be traced from the non-adherence of the internal
demand for the production equipment and constant stress on the workers (Silvestre, v2015).
Figure: Ideal Inventory Management Framework
(Source: Balcik, Bozkir & Kundakcioglu, 2016)
Answer to Question 2.4
The necessary use of information for creating ideal inventory management framework
can be inferred with creating report alerts. Several industries in the past have adopted this
methodology for generating inventory analysis by individual product, knowing about the sales
history of a specific customer and creating inventory reorder reports. This will be particularly
useful for Call Us Plumbing Supply for keeping track of the growth progress in terms of ordering
of the items. The reporting techniques will be useful in effectively forecasting of the future
demands of the products and creating the appropriate breaking point. In several types of the other
instances, there has been a delay in the pipe fittings for the final assembly of the products.
Therefore, the report on the individual issues with the production process will allow the company

15OPERATION MANAGEMENT
to track the relevant types of the problem which are seen to be exiting in the company (Jabbour
et al., 2016).
Answer to Question 3.1
The discussion of the individual processes in a FMCG company with the sub processes
are listed as follows:
Planning
The planning process in the FMCG is considered with various types of the decisions
pertaining to the Shelf-life restrictions. In the planning phase the company ensures which the
business is able to remain profitable. The shelf-life planning is considered with the perishability
of the products (Fahimnia et al., 2017).
Purchasing
The process improvement, implementation and spend analysis. The process improvement
is discerned with empowering and qualifying the suppliers to determine the purchase
specifications. Moreover, this implementation will be able to assist the baseline development
with the customization of the current specification (Fahimnia et al., 2017).
Processing & Distribution
The process and distribution in the FMCG sector is associated with precisely strategizing,
assembling and distribution of the goods in the relevant channels of sales. This section of the
process and distribution strategy is further based improving the overall flexibility and
collaborating through customer relationship via CRM, BI and multi-order channel processing
(MORAIS & Silvestre, 2017).

16OPERATION MANAGEMENT
Answer to Question 3.2
Development of process map for Grocery Supermarket
N
Y
Y
Stage 1 Input-
Procuring of
orders
Procuring the
orders from
distributor X
Releasing
the orders to
be processed
Stage 1 Output-
Documentation point
Select Print pick
document to pick product
Pick Document
Stage 2
Input: Is pick
zone case
flow
Picking of cases to
conveyors and apply
labels
Stage 2 Output: Selecting cases
on pallets at intermediate
consolidation point
Stage 4
Input Is
pick zone
overstock
Stage 3
Input Is
pick zone
primary
Picking of cases
to pallets and
apply labels
Stage 3 Output: Move pallets to
staging levels
Place pick
document on last
case
N
Y
Picking of full pallet of
foods and applying labels
Stage 4 Output:
Place pick
document on last
case
Stage 3 Output: Drop pallets in
staging lanes and verify pickup
End

17OPERATION MANAGEMENT
The inputs in the stage 1 needs to be depicted as per the Input- Procuring for the orders,
which will include Procuring the orders from distributor X. This stage is further depicted to be
followed by releasing the orders to be processed. The output of the process needs to be inferred
with finalization of the pick-up point of the product. The next stage of the process is determined
with ensuring selection of the individual zone cases for the cases to conveyors and apply labels.
The overall output of the second stage of the process can be discerned with Selecting cases on
pallets at intermediate consolidation point. The various types of the proceedings in the third stage
can be considered with deciding whether the pick zone is primary. Moreover, this stage will also
encompass the relevant details about the placement of the document to the appropriate personnel.
The output in this stage needs to be considered with including drop pallets in staging lanes and
verify pickup. The last stage needs to be taken into account with the assuming whether primary
zone is overstock. This will be able to consider the various types of the factors needed for
Picking of full pallet of foods and applying labels. The net output for this stage will include
placing the pick document to the last case (Silvestre, 2015).
Answer to Question 3.3
The effectiveness in the organizational capabilities needs to be incorporated by defining
the relevant IMP group with thee external standard and the manner in which organizations have
met the demands of the organization. The effectiveness in the SCM strategy needs to be in line
with the various types of the initiatives which are seen to be depicted with including the
customers, partners, supplier and vendors. Therefore, measuring the effectiveness is determined
with the actions having an effect on the customers and supply as a whole.
The organizational efficiency is defined with the internal standard of the performance.
The efficiency in the SCM is seen with company’s process thereby harnessing the resources in
the best possible manner. This may include the various types of the considerations which are

18OPERATION MANAGEMENT
seen to be evident in terms of financial, human, technological or physical resources. The
definitions pertaining to the efficiency is identified with improving customer service. This might
be able to bring out better efficiency by minimizing cost for the products and specifying the
exact specifications. The concept of efficiency also relates identifying the factors in the supply
which are seen to be affecting the main areas of the business. Therefore, it is seen to be important
for an organization to combine both efficiency and effectiveness factor in the SC process
(Silvestre, 2015).

19OPERATION MANAGEMENT
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