Operations Management Report: Operations Scheduling & Inventory

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This report delves into the core principles of operations management, utilizing Nissan as a case study to illustrate key concepts. The analysis begins with an examination of operations scheduling techniques, emphasizing their role in efficient resource utilization, including equipment, facilities, human activity, and materials. It explores various scheduling methods like production, manufacturing, and resource allocation, highlighting their impact on productivity and profitability. The report then investigates layout planning and work system processes, focusing on the optimal arrangement of physical spaces and resources to enhance operational efficiency. Factors such as product characteristics, location, machine types, and climate are considered to optimize the layout. The report also analyzes the importance of inventory management policies in controlling costs and ensuring smooth operations, particularly in the context of Nissan's manufacturing processes. The discussion covers the significance of planning in establishing organizational goals and achieving higher profitability. The report concludes by summarizing the key takeaways and their practical implications for businesses aiming to optimize their operations.
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OPERATIONS
MANAGEMENT
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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Operations scheduling techniques and layout planning for work system processes...................3
Importance of inventory management policies...........................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Operations management is the business practices that help in increasing the highest level
of efficiency within the organisation as it is concerned with the transforming of raw material in
to final product by using various production technique so that nest product can be product to sell
in the large market(Yuhua and Qianyun, 2017). Nissan is the chosen organisation for this essay
as it is the Japanese auto mobile company which is established by Masujiro Hashimoto and its
headquarter is in Nishi-ku, Yokohama, Japan. It is the multinational company which is dealing in
vehicles under Nissan, Infiniti, and Datsun brands. This essay will cover the explanation about
the operations scheduling techniques and its layout planning and work system in organising
various task. More over, It will analyse the importance of inventory management and its policies
for controlling various cost.
MAIN BODY
Operations scheduling techniques and layout planning for work system processes
Operation scheduling is the formation of both effective utilization of resources and the
time line within the company. It is important to schedule the usage of equipments and facilities
so that it will be easy to schedule the human activity and material. It differentiate the use of
various equipment and machine that will be use in long run and also help in making the right use
of various activities. In relation to this, planning and scheduling of various operations helps in
getting the work done with in the set time and leads to enhanced the productivity and
profitability of the business. It become the challenge that assigned task is not completing within
the given time. In context to Nissan, It may face various challenge regarding enhancement of
technology as this issue is affecting an organisation. They can use the suitable process for
assigning the jobs and also choose suitable machine and workforce. Effective operation
scheduling will results the better use of resources within a set time frame.
In context of Nissan, they can make the better use of operations scheduling and set all the
task-to-do so that each product process can be effectively accomplished in order to maximized
profitability. Scheduling techniques like production, manufacturing, use of available resources,
potential employees and so on that will contribute in the smoothing running of an enterprises. In
terms of Nissan, It can be said that one aspect is leading to incur e the high cost due to poor use
of available resource and keeping the machine for a longer period of time. Hence it will impact
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negatively on the overall functioning of the business and affects the supply chain, logistics and
manufacturing of the firm.
Nissan manufacture the products on time to eliminate he inventory so that it can be seen
that they have less work-in-progress inventory and client have to wait for the further production
and availability of raw material. On other hand, strong production of Nissan, tends to have the
superior quality of products so that they can have the good brand image in the market and
company will able to learn the new ways of manufacturing the goods and services. Effective
production tends to reduce the production cost and results in increasing the profitability and
productivity of the business.
Functions of operations scheduling in organising work Maximum use of plant: It is important to use the various resources so that they can
effectively use the resources of the company to get the better results. If the resources of
the company is not fully utilized then it will leads to negatively impact on the
functionality of the business. This method enhanced the overall schedule of operation and
leads to have the effective results by focusing on the aspects that is contributing on
effective operations( Zejun, 2019). In context of Nissan, It is suggested that organisation
must use the suitable resources in the production process for up-streaming and down-
streaming of the operations so that they can effective get the good quality product that
will full fill the needs and wants of the customer in the large market.
Sequence of jobs: It is concern with the determination of actual sequence of job that is
performing with the resources that are being offered by the company. Common
techniques that enhance and help the grouping job collectively so that it will easy to
minimize the setup cost and prominent charges which are required for the setup of heavy
machines and this will help in eliminating the various conflicts from the workplace due to
misunderstanding among the staff and the easy implementation of various new technique
that will give good output.
Resource allocation: It is the main concern of the scheduling operations to allocate the
various resources at the right place so that man, material, machine can be effectively sued
in the business operation with the consideration of achieving the higher profitability in
the business. In context of Nissan, clear assessment of their production will tends to have
the rough ideas of their efficiency in their business. It will directly help the company to
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conduct their operations in an effective manner ops that they can leads to achieve the
higher profitability in the business. Information on machines: Operation scheduling involve the choice of the machine for
the effective production within the company and it is important to have the updated
information about the machine and suitable products can be produced in order to
maximized the sale. In context of Nissan, The shop floor feedback over the operations
tends to offer the additional visibility as it helps in effective optimization of the operation
schedule and make sure that each task can be done in an effective manner with the
consideration of achieving desired goal.
Layout planning and work system: It is the arrangement of deciding the best physical outlet and
the resources and leads consume the space according to the facility. For this various resource re
required that includes centre, person, desk, office etc.(Wu and Duan, 2019). There are various
techniques which help in effective planning of work system so that each aspect of the business
can be rightly allocated and utilized. These concept will help the Nissan to effectively
implementing the various activities so that productivity of the business can be enhanced in order
to gain higher profitability. Furthermore, layout planning also help in establish good working
system by putting appropriate office setting and face to face interaction among workforce so that
harmony can be establish within the organisation and all the work will accomplished in an
systematic manner. It also improve the communication among the employees so that layout
planning can be effective accomplished in an systematic manner. There are few factors which
explain is describe below:
Nature of product: The product must be manufactured with the consideration of their
easy storage and it must be light and small so that that can be easily move and store from
one place to another (Suresh and Rao, 2017). As it will be good to use the line layout
which can carry the heavy and bulky products easily and in context to Nissan, They can
use the stationary layout so that product can be stored and can be move form one place to
another in easy approach. It will help the company to have the effective production on the
large scale.
Location: There must be sufficient size of location so that good can be easily kept in
order to sell them in the large market. In context to this, It will be effective use the
spacious place for layout so that they can use the area for their further production. In
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relation to Nissan, There must be suitable stairs, elevators, parking and storage area so
that effective layout can be build.
Types of machines: When it comes to choosing the type of machine, Stationary layout is
meant for the heavy items and emits the machine which are more noisy. In context to this,
The heavy machines tends to require large space and also eliminates the chances of
accidents at the workplace So that production will be done with the right approach and
helps in getting things effectively.
Climate: It is important to have the effective temperature, suitable ventilation so that
they an organisation can form a healthy layout in terms of climate(Sepehry and et. al.,
2019). These suitable factors will help in welfare of employees and health condition of
the employees.
Production volume: It helps the company which is manufacturing goods and service on
the larger scale that will use the line layout so that effective results can be attained. In
context to Nissan, There will production that will be based on the order so functional
layout be be best in such condition so that effective production can be done in order to
increase the sale.
Management policies: It is related to the scale of production, type of goods, quality and
type of production so that effective polices will be enforces within organisation for their
better working in order to enhance their productivity. It will help the Nissan to adopt the
layout and their effective use.
Type of process: Company will offer the product according to the client demand so it
can be said that functional layout can be used in order to increase the productivity of the
business.
Safety of workforce: It represent the proper working of employee by having the safe and
healthy working environment and in context to Nissan, There must be protection against
chemical and doors must be strong and eliminates the excess the heat so that employee
will work in the safe environment in order to get the effective results.
Service facilities: It is concern with the effective layout which tends to have the services
that leads to welfare of the employees with the consideration of achieving higher
sale(Lopes And et. al., 2018). There must be proper drinking water facility, rest rooms,
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lavatory etc. there must be space for the free flow of the employees within the
organisation.
Type of production: Effective layout tends to play effectively as per the type of
production in their business. In context of Nissan, Line layout will be suitable for the
bulk production and also help in getting the valuable products.
Why planning is important in organisation
Planning is the process of thinking before hand as it create the pathway of performing the
various operations in an organisation. It is the important aspect that is needed as the each stage of
product development and further process of the company so that each aspect related to the
manufacturing, production, delivery of the product to the their potential customer by the
effective supply chain. These all aspect will will be effectively run by having the proper planning
within the organisation (Khan And et. al., 2016). It is done by the top level management that
includes the CEO, Managing director that tales the major decision with the consideration of
successful running of the business. Organisational planning will help in using the suitable
approaches so that they can enhanced the organisational performance. In context of Nissan,
Planning start with the effectively reviewing the various operation and analyse the requirement
of the technique or the product that will improve the process of the company in therm of offering
the quality products. Importance of planning is discussed as below:
Establishing organisational goals: It is the first and foremost aspect of the business to
formulate the goal for the company in order to get the higher profitability. It is important
to to set the target to be achieved so that business can move towards growth. In context
to Nissan, Suitable goal must be made so that all the activities can be effectively done in
order to meet the higher level of satisfaction. It helps the company to achieve their set
target and also help in processing and using the sufficient amount of raw material in order
to gain the higher profitability.
Efficient use of resources: When all the activities are planned in such a manner so that
each employees is known with their assigned task and complete various activities in an
effective manner(Karimi and Jadid, 2019). Eventually it tends to make the effective use
of resources so that they can get the better results in order to achieve the higher
profitability. It will help in choosing the suitable ways of reaching to their goals in order
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to achieve them. Nissan is using their resources in an effective manner and getting the
desired result by not wasting the resources.
Team building and cooperation: Planing is the process of taking the major decision
related to the various operations of the business by forming the effective team that can
with with the proper coordination in order to achieve the desired goal in an effective
manner. It leads to have the appropriate communication among the staff so that right
information can be pass to the right person in order to complete the task in the
approached manner.
Managing risk and uncertainty: It is the important to evaluate the various risk so that
they each operation of the business can be run in an systematic manner with the
consideration of getting the things done as they have been planned(Fleer and Stenzel,
2016). Planning tends to motivate the employees so that they can give their best in
achieving the organisational goal.
It is observed from the above discussion that planning play an important role in
formulating the systematic pathway in order to complete each task within the set time frame so
that business can reach to their higher profitability and growth. Nissan can upgrade their plan by
using the suitable process and person in their operations with the consideration of achieve the
organisational goal based of the action plan.
Importance of inventory management policies
Inventory management is the process of sourcing, storing and selling inventory( raw
material and finished goods). It ids also concern with right stock must be at the right place at
right time when it is needed with the appropriate prices must be there so that finished good can
be easily processed and sell in the large market. Effective inventory management leads to have
the suitable business by analysing their inventory management strategy. In relation to this, there
are various point6s which enlist the importance of inventory management:
Inventory planning enhance service level: When the company is doing the appropriate
inventory management so that each operation of the business can be effectively operated
so that they will help in getting the good output in terms of products and services(Feng
and Dong, 2020). It also help in meeting the various needs and demands of potential
customer.
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Inventory control paves for the competitive ability: When an organisation in planning
their inventory in such a manner that they can meet the market demand and satisfy the
needs of the customer. It will help in meeting the competition in the market and tends to
have the sufficient amount of products and services.
Inventory planning and management eliminate storage cost: When the leader and the
manger of the company is doing the effective planning regarding the inventory
management. It will help in reducing the storage cost as they make the purchase of goods
and services when it is needed so that effective utilization can be done with the
consideration of achieving the desired goal.
Effective inventory management enhance market share: When the company is
managing their inventory in an appropriate manner so that they can manufacture the
goods and services(Chen and et. al., 2020). It affects the overall productivity of the
business by ensuring the effective management in various business operations. When the
company is offering the quality products it will leads to contribute in increasing the
market share of the company.
Inventory control makes cost accounting activities easier: When the owner of the
Nissan is developing the internal and external strategies and ensuring effective control
over the various aspects of the business will leads to help in managing the cost
accounting activities in a better way. Prominent strategies will leads to have the effective
cost accounting activities so that it will contribute in increasing the cash flow within the
various department to full fill the requirements of business.
High inventory turnover brings revenues: They are directly related to each other as the
the more inventory is being used in the business then it will leads to increase the overall
profitability of the business(Chang and et. Al., 2018). Effective planning of inventory
will tends to know the requirement of the raw material so that manager can make the
effective purchase so that they can manufacture the product according to the market
demand so that company can generate the higher revenue.
Inventory control is consistent with the safety and environmental benefits: When the
company is is evaluating the needs of the inventory in different operational areas then
they will procure the raw material with the consideration of saving the environment and
also find the ways by which the company can save and benefits the environment.
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CONCLUSION
It is concluded form the above report that Operation management play an important role
in operating the various business activities in an appropriate manner so that company can
generate high revenue with the consideration of achieving the higher profitability. Operations
scheduling and layout planning is beneficial in both the effective use of resources with the
consideration of gaining higher profitability. Layout must be in good location with healthy
environment and also ensure the right use of management policies so that company can generate
higher revenue. Furthermore, Planning is the aspect of thinking before hand so it plays a vital
role in the functioning of each operations and inventory management help in procuring, utilizing
the raw material in such a manner that company will able to meet the market demand with the
consideration of attaining higher growth.
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REFERENCES
Books and Journals
Chang, J. and et. Al., 2018. Hydropower plant operation rules optimization response to climate
change. Energy, 160, pp.886-897.
Chen, J. and et. al., 2020. A multi-objective risk management model for real-time flood control
optimal operation of a parallel reservoir system. Journal of Hydrology, 590, p.125264.
Feng, Y. and Dong, Z., 2020. Optimal energy management strategy of fuel‐cell battery hybrid
electric mining truck to achieve minimum lifecycle operation costs. International
Journal of Energy Research, 44(13), pp.10797-10808.
Fleer, J. and Stenzel, P., 2016. Impact analysis of different operation strategies for battery
energy storage systems providing primary control reserve. Journal of Energy Storage, 8,
pp.320-338.
Karimi, H. and Jadid, S., 2019. Optimal microgrid operation scheduling by a novel hybrid multi-
objective and multi-attribute decision-making framework. Energy, 186, p.115912.
Khan, A.A. And et. al., 2016. A compendium of optimization objectives, constraints, tools and
algorithms for energy management in microgrids. Renewable and Sustainable Energy
Reviews, 58, pp.1664-1683.
Lopes, F.M. And et. al., 2018. Short-term forecasts of GHI and DNI for solar energy systems
operation: assessment of the ECMWF integrated forecasting system in southern
Portugal. Solar Energy, 170, pp.14-30.
Sepehry, M. and et. al., 2019. Robust day-ahead operation planning of unbalanced
microgrids. IEEE Transactions on Industrial Informatics, 15(8), pp.4545-4557.
Suresh, C.S. and Rao, K., 2017. Adaptive weight control based PSO multi objective operation
management of renewable micro grid. Majlesi Journal of Mechatronic Systems, 6(4).
Wu, B. and Duan, T., 2019, June. The advantages of blockchain technology in commercial bank
operation and management. In Proceedings of the 2019 4th International Conference on
Machine Learning Technologies (pp. 83-87).
Yuhua, X. and Qianyun, H., 2017. Unified Operation and Management of Remote Electric
Power Service Research. Automation & Instrumentation, p.01.
Zejun, H., 2019. The Disadvantages and Difficulties in the Operation and Management of Small
and Medium-sized Theaters. Journal of Arts Management.
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