MOD002665: Modelling & Simulation for Operations Management - Report

This report examines the operational challenges faced by Murray Rock Drilling Ltd., specifically focusing on lead time and production capacity. It suggests implementing Production Operations Management Software to address these issues. The software's features, including production planning, operations optimization, inventory management, and workforce management, are discussed in detail. The report justifies the selection of this software by highlighting its potential to reduce lead times, increase production capacity, and improve overall efficiency through automation, better inventory control, and streamlined processes. Alternative solutions such as value stream mapping, alternative shipping approaches, vertical integration, vendor managed inventory, lead time contracts, and parallel processing are also considered. The conclusion emphasizes the importance of effective management and operational abilities in achieving organizational success.

MOD002665 MODELLING
& SIMULATION FOR
OPERATIONS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Description of the system............................................................................................................3
Nature of the problems that the software will resolve.................................................................4
Validation of the system..............................................................................................................5
Suggestion for solution of existing problem................................................................................5
Justification for the solution........................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Operations management can be defined as the governance of business operations in order to
develop a premium level of effectiveness within the organization and achieve the goals of an
organization (Kokode, and Sangode, 2018.). The softwares used for the purpose of operations
management is used for the purpose of converting the raw material into finished goods and
achieve the highest level of operating efficiency. The present report is based on the case study of
Murray Rock Drilling Ltd. The present report discusses about the nature of the problem faced by
the company and suggests an existing operating software that can be used by the company for the
purpose of addressing the issues. The current report also includes the efficiency and the
effectiveness of the software that will be put to use within the company and help the organization
in resolving the issues faced by them.
MAIN BODY
Description of the system
The system software used for the purpose addressing the current issues faced by the
Murray Rock Drilling Ltd. is Productions Operations Management Software. The key features of
this software includes production planning, operations optimization, management of production
orders, inventory management, purchase order management, warehouse management, workforce
management, sale order , production quality control, analytics and reporting and maintenance of
machinery and equipment. The integration of Productions Operations Management Software
with a suitable company system within an organization helps an them in increasing the visibility
of the operations related to the production and manufacturing of the company, helps them in
speeding the process of planning and coordinates with the organizational process in order to
enhance the potential and the productivity of the workforce within the enterprise (Abideen,
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Mohamad, and Fernando, 2020). This software helps the organization in forecasting the lead
time and then , planning the process of production on the basis of the same and thus, helps the
company in increasing their profitability.
The key features of the software can helps the enterprise in several ways, such as the
production planning is used to determine the material requirements and scheduling the process of
manufacturing of the products, operations management can be used for the purpose of reducing
the time that is being incurred in balancing the production on different plants and machineries
and many more. The production order management tool can be used by enterprise for the
purpose of setting aside the materials that will required for recording a order with respect to the
manufacturing of the goods.
Nature of the problems that the software will resolve
There are several problem which are faced by the Murray Rock Drilling Ltd. With
respect to the process of production which will be solved by implementing the use of
Productions Operations Management Software within the enterprise. The issue that the software
plans to solve includes:
Lead time
Currently, the lead time of the organization is 12 weeks which needs to be lowered down
to 6 weeks. The use of the Productions Operation Management software will help the company
in minimising the lead time by the software will help the enterprise in production planning,
forecasting of the lead time, optimizing the operations management process with implementing
automation on certain stages, managing the sufficent inventory before taking up new orders by
keeping a check on the whole process (Hadid, and et.al 2022). This will help the company in
reducing their lead time and bring it down to 6 weeks.
Production Capacity
The current product capacity of the enterprise 700 bodies per week, however, the
company needs to achieve the capacity of 1000 bodies per week. The major reason behind a
deteriorating capacity is errors generated because of the current operating software. However, the
use of Production Operation Management Software can help the Murray Rock Drilling Ltd. in
minimizing the errors and increasing the efficiency of the system by managing the inventory,
order, purchase, prediction of the lead time and help the company in enhancing the stated
production capacity. The production operation management software will help the organization

in increasing the current batch sizes which will help the companies in increasing the production
per batch by a certain number of units and then help the company in increasing their production
efficiency and lead to the organizational growth.
Validation of the system
The Production Operations Management Software is used by several organizations
belonging to several industries as it helps in easing the process of manufacturing and production
within the organization and reducing the lead time (Sheena, 2019). The pharmaceutical industry
and the telecommunications sector also makes use of the production operation management
within their Industry. The company that fall under the category of pharmaceuticals and uses this
software are Abbott Laboratories Ltd., Abzena and many more.
Suggestion for solution of existing problem
As per the case study it is identified that Murray rock drilling company is facing problem
in their leading time, usually they are taking almost 12 weeks to dispatch the product which is
affecting their operability, thus management team is finding the solution to reduce around 6-
week time, as their main purpose is to improvise their delivery performance (Das, 2022). Lead
time usually refer to the total time taken between starting and ending of any project or
operational task. This term is mainly used in the supply chain management and in manufacturing
field. Thus Murray company can begin to consider some aspect which are as follows:
To reduce the non-valued activities:
Organisation must require to implement the value stream mapping it will help in
identifying the non-value added components that mainly prolong to the lead time. Thus Murray
can begin to arrange the list and eliminate those to maintain the product delivery and its quality.
Change the shipping approach:
Company ca proceed to arrange the alternative shipping approach which are capable of
fast delivery as compared to the current shipping methods. As the suppliers mostly prefers the
shipping methods which are steady but also give outcome in more cost saving that affects the
lead time.
Vertical integration:
It generally comprises of the processes of two suppliers or the manufacturing process of
the organisation. For an example in which the organisation produces and assemble or arrange the
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elements at the location which are far apart, that consolidate the internal two process. It helps in
decreasing the time which is taken for the transportation of components from one place to
another place. Thus by vertical integration Murray company will be able to enhance their
delivery performance to reduce their lead time (Choi and Cai, 2020).
Automate the whole process:
Sometime it is found that lead time cause by the human errors, as when the employees
responsible for requesting the new merchandise delays contacting the suppliers. Therefore, it
leads to increase in time for final product dispatch, in such Murray company can proceed with
using the vendor managed inventory as this system will help in replenishing the stocks
automatically when the time of its completion. It will lead the company to reduce the lead time
as with this supplier can easily get the request earlier before when the company experiences the
stock out problem.
To develop the lead time contracts for the suppliers:
To have the lead time obligations into the contracts will form the discipline with this
suppliers of the company will be aware of delivering the raw materials and provide the processes
for accounting any shortcomings (Jayaraman and Kiumars). Thus Murray can begin to set the
contracts that contains penalties area for late shipment, also involves the advance notice time for
foreseen the scarcity of the raw resources.
To lay out the multiple processes at same time:
There are some processes which required to be complete before other start, thus Murray
company should also start to identify the work that can be done by the different individuals at the
same time, thus with this company can easily reduce their lead time and further increase the
productivity. It will also help in solving their production issues to increase the development of
their products units per week.
Thus by using and focusing on all these factor Murray company will definitely address
their issues with greater efficiency.
Justification for the solution
The production operation management software has been chosen for the resolving the issues
faced by the Murray Rock Drilling Ltd as it is efficient in a number of qualities which will help
the company in resolving the issues faced by them and increasing its productivity. For using the

production operation management software Murray company will be benefited by improvising
their functionality that will help them in monitoring their processes as well as with this they can
easily solve their problem related to production capacity as well as lead time.
Production planning
the production planning will help the enterprise in implementing the use of monitoring
techniques for the purpose of production , it will help the company in stating the current
requirement with respect to the production in advance, pre scheduling the process of production
and modifying the production process (Chikán, and Sprague, 2019). This features will help the
enterprise in decreasing the lead time and increasing the production of the company.
Optimization of operations
The production operation management software will be helpful for the company by
balancing the process of manufacturing in between in the different machineries, automating the
process of production on the basis of the historical records which will help the company in
resolving their issues.
Maintenance of Machinery and Equipment Management
The chosen software in effective in the process of conducting routine process related to
the maintenance of the machinery , predicting the requirement in relation to the equipment’s and
keeping a track of the status of the assignment of the maintenance order. All of these features
help an organization in reducing their lead time and increasing the capacity to produce.
Inventory management:
By using this software company will be able to monitor their inventory level as well this
system will provide them alerts for low inventory, so that they can proceed to make earlier
decision which helps in solving the lead time issue. It also guides in developing, routing and
monitoring the status of inventory transfer orders (Wilson and Haywood).
Warehouse management:
Murray company can easily have automated their inventory location by using the
software system, they can easily track the expiration for the raw goods. Additionally, system will
guide to best route for picking the order for the warehouse worker.
Sales order management:
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System will guide in development for the sales order as well as helps in tracking the
sales. Murray company will be benefited to generate the automated invoices and approvals for
the routing so it will decrease the total time that will be consumed for this particular process.
Automated inventory for the sales reservation can also be easily done by this system. Thus
overall company will be able to address all their problem by implementing this system in their
work methodology.
Workforce management:
Workforce for any organisation plays a significant role but their efficiency and work
performance matters the most for the company’s success. Thus with this software Murray
company can easily schedule their workforce as they can easily track the team performance and
can proceed for the instant communication with teams to lay out the particular project in certain
deadline so it can be done with maximum efficiency (Parthasarathi and et.al 2021).
CONCLUSION
From the above report it is concluded that management and operational abilities makes the
firms to succeed in their field. Lead time and other issues negatively affects the company’s
performance. Above report have illustrated the description about the case study, as how
organisation is facing problem in their production capacity and lead time issue. Above report has
discussed the utilisation of the software system as a solution to solve all the problems that have
been faced by the organisation. It covered the description about production operation
management software to solve the lead time and other issue. It further discussed about the
suggestions to solve the issues and lastly concluded with the effective solution along with their
justification to address the organisational issues.

REFERENCES
Books and journals
Abideen, A.Z., Mohamad, F.B. and Fernando, Y., 2020. Lean simulations in production and
operations management–a systematic literature review and bibliometric
analysis. Journal of modelling in management.
Chikán, A. and Sprague, L.G., 2019. A life cycle model of major innovations in operations
management. International Journal of Quality Innovation. 5(1). pp.1-13.
Choi, T.M. and Cai, Y.J., 2020. Impacts of lead time reduction on fabric sourcing in apparel
production with yield and environmental considerations. Annals of Operations
Research. 290(1). pp.521-542.
Das, S.K., 2022. A fuzzy multi objective inventory model of demand dependent deterioration
including lead time. Journal of Fuzzy Extension and Applications. 3(1). pp.1-18.
Hadid, M., and et.al 2022. Bibliometric analysis of cancer care operations management: current
status, developments, and future directions. Health Care Management Science. pp.1-20.
Jayaraman, K. and Kiumarsi, S., Reduction Inshipment Delinquencies Andproduct Lead TIME
Onenhancing Customer Service: a Case Study. International Journal of Accounting and
Business Society. 22(1). p.70541.
Kokode, A. and Sangode, P.B., 2018. IT Enabled Operations Management in the Manufacturing
Firms. International Research Journal of Commerce Arts and Science. 9(3).
Parthasarathi, S. and et.al 2021. Productivity Improvement and Reduction of Lead Time in
Manufacturing Industry Using Lean Tools. Industrial Engineering. 5(1). pp.1-6.
Sheena, A.D., 2019. Analyzing depletion of groundwater level using operations management and
control. Management Decision.
Wilson, G.T. and Haywood, J., Models for High Lead Time Prediction. Economic time series,
modeling and seasonality, pp.499-524.
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