Choose a company that creates a product or offers a service that you are familiar. Using the company website and additional research, list the inputs that the company uses to produce outputs. Define the outputs created. After creating this list, discuss the additional functional units within the organization that are important to the final product. How important do you believe the quality of the operations management is to the final output? Explain your answer.
For this assignment, I chose to research Brighton Collectibles because I like their product and it seems to be a successful brand sold throughout the United States. I researched Wikipedia and Brighton’s website. Unfortunately, there wasn’t too much info out their on their operations.
Inputs: parts and materials, design skills, design staff, factory, equipment, artisans, marketing staff, sales people
Outputs: jewelry, handbags, personal accessories, a good customer experience, good value for the customers’ money
From what I can find on the Internet, it seems that a lot of Brighton’s outputs are created in the United States, but many of their components are sourced from suppliers in Italy, France, China, Korea, and other countries, according to Wikipedia. Therefore, I can only imagine the great importance of their operations and transformation processes. Management has to forecast demand so they can order the right amount of parts from suppliers for each design, and also has to work with designers to make sure materials can be used across multiple products to get quantity discounts and reduce the overall number of parts required. The operations managers must work hard to ensure that products are made in the same quality as created by designers, source the right materials, and ensure the factory produces enough products to meet demand (staffing, materials, equipment required to do the job). For these reasons, I believe that operations plays an important role in the final output and that a high quality ops management team is vital to a company like Brighton.
I have chosen the VW Group in Portugal. I have talked with some employees and also checked most of the details in the web and newspapers.
Inputs: parts, design, factory equipment, specialized employees and HR
Outputs: vehicles, but also a training center.
Most of inputs, parts essentially are imported to Portugal’s factory, however near the plant we can find a lot of suppliers that produce car components for VW and the relation with the supplier in this case is quite important as a few work only for VW.
Despite the tight standards settled by Germany Headquarters, there are a few challenges in Portugal, first of all the supply chain, manage the supplies but also the final product that it is sent to the world by boat or railway. In this case the logistic is quite important and a “top performer”. Also in terms of specialization, you have a lot of departments, since engineering, to set up, painting, tests… all this departments must be connected in terms of operations as the final product success depends a lot from all of them and the chain should not be broken. Despite that it is important to manage the challenges, mostly after the scandal regarding the CO2 emissions, that led to cuts in shifts and a strategy to keep all the staff despite those cuts, and also the issue of negotiating with unions. The Operations Managers should work as team and guarantee that, most than technicians they are also the responsible for issues like HR and the motivation of their co-workers.
I chose to research INF plastics because they produce specialty products used o pack hard media (DVD’s, game Discs Etc). I know about plastics processing and how plastic products are made.
Inputs: Raw material, Equipment, warehouse, administrative staff marketing staff, sales people.
Outputs: Packaging cases, Game disc cases.
Plastics processing is conversion business to produce plastic products. The main input is plastic raw material and colorant. Different equipment are used per product requirements. Per operations process , the most important thing is to control usage and recycle scarp. Visual, Dimensional and Functional quality of any plastic product is very important as attributes can change because plastic shrinks after manufacturing process is complete. So Operations management should put extra efforts to control inputs and the out put product environment to adhere with quality requirements.
My company of choice is Szent Climbing - an Australian company producing pure, reinvented climbing and gym chalk.
As a relatively new( established in 2014 ), privately owned company, they stepped into a competetive market( climbing, gym training and gymnastics are gaining popularity in recent years ).
Climbing chalk - introduced in 1960s by John Gill, for gymnastics sports, was widely welcomed and implemented by all sort of climbers, who neede solution for sweaty hands while pushing their climbing limits.
As, we could think, nothing new can be done in simple product, like climbing chalk - they managed to reinvent the product and to create pure, finest climbing chalk with some fresh, unpredictible touch…
There are two main line of their products:
- Y-Chalk - PURE, DRY, GRIP - pure magnesium carbonate
- X-Chalk - Premium blend of magnesium carbonate, cloves( yes, smells great ), and some herbs and botanicals( soothing and helping to protect small skin abrasions, scratches and minor cuts ).
They have also an apparel items, such as t-shirts and caps + Climbskin hand cream( Spanish made ) in their offer. From above, only apparel is own and made by Szen Climbing though.
The company is present in Australia and UK and they shipped to: United Kingdom, France, Spain, Australia, New Zeland and USA, through distributors.
Inputs: raw materials, packaging, product formula, marketing, distribution, factory, staff,
Outputs: climbing/gym chalk, t-shirts, caps,
The quality of operations management is crucial in this company. Making sure, that the product is the finest quality at all time, delivered on time and promoted throughout the climbing and sport industry. Gaining market share is important to grew and expand company.
Quality control, product consistency,rimely deliveries and good relationships with distributors are as important, as good company image, branding and operations model.
I chose Monster Cable company which headquarters is in California. This brand leads the market in audio cabling which is used for best quality but they have manufactured their own brand of headphones. Apple made a deal with monster cable in using their cables made for headphones in the headphones called beats.
Inputs: copper, plastics, rubber, foam, design, knowledge, research, marketing, sales,
Outputs: audio cables, hdmi cables, headphones
The company was founded by Noel Lee in 1979. His production and operations started in his home in which he marketed his product himself door to door. Because he played each and every major role in the start up in this company was one of the reasons he had little overhead as far as operations is concerned. The only key role that truly needed managing is time management. How long would him to produce on cable and how many cables were needed for marketing. Did he have time to properly test each cable to produce the same quality sound. Here you have quality control, quantity of production, and time management. He quit his job and he eventually move to a manufacturing facility in San Francisco in 1980. His target market was car audio by 1987 he withdrew from the car audio market to focus on home stereo. In the 1990’s he re enter the audio market and partner manufacturing in asia. The business eventually grew from $20m to $100m. By the late 90’s he set up shop and headquarters in Brisbane, California. By understanding the operations of the manufacturing and business aspect of Monster Cable allows the owner to have first hand knowledge of running a major business. It seems this experience was enough. I am not sure he had any operation management experience or education at the time.
I as I thought about a company to right about the one that comes to mind is Harry’s. They are a razor blade company that was started by two guys who wanted a good shave at a affordable cost. There was another start up as well but they sold out to a another corporation. Harry’s did not sell out. Several years ago the companies who produced razor blades had an oligarchy. They pushed the price as high as the market would bear. The big corporations reap the profits. That is what Capitalism is all about. Making money.
Harry’s was created because to guys named Jeff and Andy wanted a comfortable shave at a fair price. So they decided to do something. Not only did they go after the creating a good quality blades they took over the supply chain. Harry’s bought the factory which helped to reduce the cost. Since Harry’s decided to sell it products by subscription mail order. They only needed to have a distribution center in the U.S… This is how they are controlling all of the inputs and output.Therefore, the supply chain has more reduced cost by not having to rely on brick and mortar to get sales. This help them with distribution cost which it not built into the consumer cost. Harry’s deals directly with the consumer. The output is is a product which is about 40% less than what the big corporations charge. Plus,no more going to the store to have to get someone to unlock a case just to buy razor blades.
The Company that I am familiar with is an Automotive Assembly Plant Situated in Lagos, Nigeria.
The major input that the company uses to produce the outputs is:
- Motorcycle Body Parts Kits
- Fasteners Kits
- Engine Kits
- Tools and Equipment for Assembly
The Output created is a Two-wheel Motorcycle.
The Functional units within the organization that are important to the final outputs are:
a. MicroCKD Unit - where KD kits are received, Inspected and supplied to the Production;
b. The Production Unit: - here the kits are arranged on the assembly line; where the core component - Frame - is moved on the conveyor line and other components are fitted as the core component traverses the conveyor line. The core-component here being the Motorcycle Frame;
c.Quality Control/Product Inspection Unit: this unit handle the process and final product inspection and they ensure that customer, regulatory and statutory requirements are consistently met.
Without a reliable and quality Operations Management system, the consistency in efficiency and effectiveness of the product will not be attainable.
The organisation of my choice is Superfil Products India Private Limited. i came to know about it when we went for an industrial visit to their manufacturing unit at Pondicherry, India.
Superfil Products India § Ltd, was conceived in 1986 by its Managing Director Mr. S.Narayanan, as a project to produce Nylon Mono-filaments for fishing industry. It has its plant setup at Chennai, Pondicherry and Nagercoil (cities in the state of Tamilnadu, India). This company produces Nylon6 and Nylon66 mono-filament and multi-filament yarns. The Nylon granules are the main raw material used in the processes which are converted to mono-filaments.
The major inputs used in manufacturing plant are Raw materials, which are basically the nylon6 granules, plant machinery and equipment, labor, and capital to support the entire functioning.
The output of the process are the mono-filament yarns. On an average this plant produces 6 tonnes of mono-filaments per day. The mono-filaments are used as raw materials by many industries. They are mainly used in textile industry, making fishing nets, cables and telecom industry, agriculture, Tyre guards, making turkey towels and parachutes, and it has many other industrial applications.
I couldn’t find the source of raw material, However, i could appreciate their simple technology and transformation process, with which they have produced a quality product that earned them a market share of 35% in the domestic market of India. The plant uses simple pneumatic conveyor system to compress the raw materials for further processing. The designs of digs are very simple and they have created minute pores (about 0.11 mm diameter) for shaping the melted nylon to mono-filament yarns. Prior to, output moving into the finished goods yard, each roll of spindled yarn is taken-in for a quality check, where its capacity to handle weights, its thickness, its twisting, its length, its diameter and temperature testing is done to ensure the quality of output.
Since, the rolls of yarns are inspected within the plant itself, the organisation could avoid the chance of defects, and in case of any defects, it could be handled with ease. i believe that the internal quality check and timely inspection of processes as well as outputs prove to be vital and a continuous challenge for the operations management team. I would also appreciate on how they treat their employees, as of course, they are the supporting pillars of the organisation.
The company of choice that I worked with is Hospital.
Inputs: Drugs, laboratory reagents, and kits, diagnostic equipment and machines.
Output: a cured person
The organization involves different functional units within it. These can be generally categorized into two main departments; outpatient and inpatient service departments. Each service department includes functional units like laboratory service, radiology service, pharmacy service, examination service, and financial services. The quality of the operations management is vital for the final outcome/output. The role of the operation manager starts from the designing of the system to the final delivery of goods /service to its customers. Therefore, efficient management of the operation is necessary to provide quality product/ service to end users. But, managing operation needs greater effort to bring the desired outcome.
I work for leading liquor manufacturer in Sri Lanka. Therefore I selected that production process for my answer.
In here ,their production method is mass customization. They produce twelve type of products for different prices to meet the demands of consumers.
Their main inputs are rectified spirits ( both local and imported ), essence ( 16 types ),natural water ,empty bottles , filter papers and packing materials ( carton )
And their output is arrack, whiskey ,brandy, vodka , gin and rum. And produce and bottle under the following volumes . They are 750ml, 375ml and 180ml.
When go through their production their production facility layout more similar to the process layout. Production site is establish in Kandy , located in center of the country. Selecting for this site they considered the quality of the water and easiness to distribute island wide.regarding production capacity , to me they have the capacity but according to the market requirement and competition they not use maximum production capacity. consider the labor force they have the minimum requirement. Therefore they utilize the labor force maximum.
When purchasing raw materials they import rectified spirit from south Africa and Pakistan.For selecting the South African vendor for quality , reliability .For Pakistan vendor for cost. He’s cost was very low. Both of them have the capacity to supply the spirit they ( manufacturer ) required.Suppliers are reliable , they send it ontime,but due to the custom and other processes some times get delay . but that was external factor and it is out of their control.but it was not greatly effect ,they keep extra stocks .purchasing of local rectified spirits ,they have no choice because in here only three suppliers and prices are almost same.
Purchasing of empty bottles , they have no choice , there is only one manufacturer in country and if they export them , they have to spend more for it rather than now.
Regarding the purchasing of carton ( packing materials ) ,the supplying factory is also owned by the same owner.For this requirement of selecting supplier are almost fulfill.
When going to inventory control , they have no choice and they have to keep some buffer stock , in some materials like rectified spirits .Beacuse they imported materials .Therfore manufacturer like or not he has to bare some cost for storing and insurance.
And to control the inventory ,they using the ORACLE for raw materials . Computer aided distribution software for finished good and HRIS system for administration.
Considering the quality management process , they have covered good system in raw material intake to processing and finished products . but they does not using any statistical controlling system such as SPC , R or six sigma etc.
My review of Operation management , it’s very important to produce low cost high quality finished product . The operation management is interconnecting the processes without a gap.In here it is practicing high level.
I work in the aerospace industry, specifically in the engine manufacturing business. Since the business is very complex, with thousands of suppliers, hundreds of operating steps, and parts logistics, I will focus on a less complex business in laudromats. I am in no way saying operating a laudromat is easy–my uncle owns a laudromat and I have personally seen it operate under his system.
The laudromat several inputs:
- Walk-in customers. They bring their laundry to wash and dry.
- Drop-off customers. They drop off their laundry, typically dry-clean, at the main counter. My uncle sends the cloths to a dry-clean business. Turnaround time is typically 2 to 4 days. These customers bring more revenue to the laudromat.
- Water–For the washing machines. There are about 200 washing machines, and monthly cost of water usage is around $4000.
- Electricity–to run the washing and drying machines; to power the lights; There is no air conditioning
C. Fixed costs:
- 1st and 2nd shift staff
- Monthly rent and insurance
A. Clean and dry cloths
B. Customers who may/may not be satisfied with the service
Some of the functional units within the organization that may be important to the final product:
- Staff/Customer service–to receive and return drop-off orders; to register drop-offs and receive payments; to clean and maintain the laudromat.
- Operations team–very important to the final output. My uncle and his wife receives the drop-off items for dry-clean, sends the orders to dry-cleaner, picks up the dry-cleaned orders, and returns the cloths to the customers. All these steps need be managed carefully in terms of quality (not damaging the clothing, ensuring the clothing comes back clean), on-time delivery (a ticket is generated to request the customer to come back on a designated date)