Operation Management Assignment Essay

apparent movement1 Why is trading procedures instruction Coperni usher out in this company ?operations circumspection refers to the administration of business shapes to create the risqueest train of force practical within an organization. trading operations oversight is concerned with converting materials and labor into goodishs and serve as efficiently as possible to maximize the profit of an organization (Stevenson, W. J., & Hojati, M., 2007). The operations function comprises a signifi washbasint comp unrivalednt of the employees and physical assets in close organizations. Operations managers ar concerned with each trample in providing a yield or service. They determine what should go into an operating system, overmuch(prenominal) as equipment, labor, facilities, materials, energy, and information, to produce the output(Stevenson, William J., and Mehran Hojati., 2007). Operations managers ar also responsible for critical activities such as materials perpl exity, capacity cookery, purchasing, scheduling and quality. The grandness of operations management has join ond dramatically in recent years.Signifi set upt competition, s set upt(p)er harvesting and service life oscillations, better amend and quality-conscious consumers, and the capabilities of in the raw technology incur placed pressures on the operations function to remediate crosswayivity while providing a broader rate of high-quality products and services. judgment Design Services was an self-whispered looking manufacturing company which concentrateed on difficult and cyclical industrial mouldings. Since 1999, it modification and upgraded to to a greater extent profitable house hold products business. salutary now, it is an integrated service provider that working with design houses to provide end-to-end product design, manufacturing and dispersion of high-quality design homew ar. Jim Thompson explained the differentiation CDS from an other(prenominal) c ompetitors is that CDS uses the latest, precision equipment, bought the best quality moulds, and mostly positioned as technical professionals with a node focalizationed service. Under the management of Linda Fleet, they discovered that one of their major strengths could be turned into a high informant of profitable business. They set up 2 different brands. tenseness and opinion. strain products atomic number 18 more traditional with abiding volumes, while concept productsare a good deal more mold and seasonal with changeable gross sales volumes.Within deuce years of introducing their young product lines, concept products began to show 75 percent of their profits. For dealing with the more and more requirements, 24 large injection-moulding machines and robotic devices are involved in the productive process. yet these peeled products require more complex machinery and longer operating snips. With the companys expansion and increased demand for their products, opera tions management is important for achieving time strength so that to achieve the profit efficiency the most. It is also significant because it enables proper turnout planning through coordination of activities among the design, manufacturing, sales and distribution departments. The complexity of their production process and rescue services with seasonal volume change demand good operation management if they are to succeed in portent and meeting their client demands on time meanwhile reserve reasonable roll(Drge, C., Vickery, S., & Markland, R. E., 1994). finished proper operations management, out of well-worn occurrences can be greatly reduced by accurately approximateing sales leading to reduction in lecture follows. muchover, collectable to the product life cps becomes shorter and shorter, conveying parvenue products to fulfill the postulate of customers and understanding the room trend are also undeniable great operation management. Question 2 How do the 4 Vs (vo lume, variety, chance variable, visibility) influence the substance CDS operates? Draw a 4 Vs profile for the companies goods and services.Volume CDS has two main brands stress and conceit. Concept products address up 75% of their revenue enhancement and the bulk of their profits. Concept products are premium-priced whose countermand cycle is short from the survey of a lifestyle magazines. The products are low repeating with high unit costs due to the SKU are with large numbers, but the further unit sales volume is not rattling high. The old fashioned products are usually replaced by a new version in pretty short time. Concept products are less systemization compared with Focus products. Focus products focus on a small handful of customers with large coat of each order. Variety CDS has an magnificent new product organizement process. It usually takes nearly three months to get a new mould, which then has to be tested. For the help of reward give birthment, they have good output and excellent productivity. The products are flexible according to the foodstuffcondition and customer necessitate. Concept products and the safe and sound design, manufacture, sales, distribution process is rather complex.The new product development department move detailed drawings of the new products from the Design federal agency managed by Marketing department, which shows CDS pay a great deal attention to match customer necessitates. For doing the inwardnessly things above, the unit cost of CDS product is high. disagreement For Focus products , the vast majority of deliveries are to a small handful of customers. The size of it of each order is usually rattling large, with deliveries usually to customers own depots, which means the variation is invariable, predictable. While for the more profitable Concept products, they are much more seasonal so that it is difficult to makes capacity planning and scheduling at peak time around November and Easter jus t subsequently the spring trade fair in London. Take the consideration that concept products hold the bulk of profit, in total, the variation of the products is changing capacity and flexible. They are in touch with demand so that the unit cost of product is very high.Visibility CDS pay much attention to understand the require of customers. They use different kinds of methods to interact with customers, such as magazine survey, give to face interaction, questionnaire, etc. From their enquiry, they find some customers solemnize their products on display in their kitchens as lifestyle statements rather than putting them past in cupboards. And they use this research dissolving agent in marketing and products design, especially to develop the same product with different mask to fulfill the seasonal of necessity. Since they produce fashion products with high quality, the time lag amidst production and consumption is very short, differently they may fall behind the fashion tren d. Their sales and revenue increase very fast reflects that customers satisfy their service including products and distribution. Question 3 What would you recommend to the company if they asked you to rede them in improving their operations? (45 marks) Concept product and Concept office needed to be focused on, while at the same time maintain Focus products sales.From the chart 1, we can tell the total sales increase dramatically, especially afterward(prenominal) 2001 concept products are sold in the market. The net profit before appraise also goes up in a pretty fast speed. As chart 2 shows, the rate of profit three-fold during the year between 2001 and 2006. From chart 3,we can see the trend of Concept products is increase dramatically, which means CDS needs to be remunerative much more attention in this series. The company should go deep to research the needs of customers and the fashion trend to develop a series of satisfying products with high rate of profit and reputati on score.However, after a peak in 2001, the focus products sales becomes smooth and steady, the company need to maintain the sales volumes. Due to the stable sales of focus products, company is suggested to forecast the sales and arrange the manufacturing beforehand with able accuracy. By doing that, the rate of profit of focus products may have certain increase by reducing the cost of inventory and overhead (Xiao, Y., Li, G., & Zhang, J., 2011). record management needs to be strengthened.From the chart above, we can abstain that with the dramatically development of the products, the inventory increases as the sales goes up even much sharper than sales. The company should take treat of the inventory management seriously. They have to take some methods to reduce inventory. On the one hand , it can reduce a lot money , on the other hand, for fashion and short life cycle products the longer time they keep in the warehouse, the less value they have. Sales conduct are not only spec ial to the offline, but also online sales convey needed to be adopted. With the development of internet, net profit has become the fastest way and the most effective method to understand customers. guest can upload their feedback of products immediately, and the company can use these material to arrange the succeeding(a) design plan. Online sales channel is good for inventory management, which meets the finding of the second suggestions.More abroad cooperation with local company brings their burnish into design. Different country has different finishing and different understanding of beauty and fashion. CDS is certified to cooperate with local company from oversea to enter the market with the products needed by the customers at local. The local company may better at understanding the needs of local customers. CDS can take in the efforts of local company and design the product in accordance with the market demand(Robb, D. J., Xie, B., & Arthanari, T., 2008). drag in computer -assisted software for improve the whole process. figurer software such as ERP can effectively improve the company efficiency.A company canuse to computer storage and manage data from every put of business, including Product planning, cost and development, Manufacturing, Marketing and sales, Inventory management, Shipping and payment. Measurements, analysis and simulation capabilities can help companies plan better and controvert sooner and more effectively to changes in demand, competitive actions, and supply chain disruptions. relief between customers needs and operation costs.As a company, the main task is acquire profit. The idea of being customer centric does not means that customer mustiness be provided with everything they want. Company must have to strike balance between what customer would like and what operation can afford. germStevenson, W. J., & Hojati, M. (2007). Operations management (Vol. 8). Boston McGraw-Hill/Irwin. Xiao, Y., Li, G., & Zhang, J. (2011). inac tive data storage based housewares origin management system. In Web study Systems and Mining (pp. 51-56). Springer Berlin Heidelberg.Stevenson, W. J., & Hojati, M. (2007). Operations management (Vol. 8). Boston McGraw-Hill/Irwin. Drge, C., Vickery, S., & Markland, R. E. (1994). Sources and outcomes of competitive advantage an beta study in the furniture industry. purpose Sciences, 25(56), 669-689. Robb, D. J., Xie, B., & Arthanari, T. (2008). Supply chain and operations practice and performance in Chinese furniture manufacturing. International journal of production economics, 112(2), 683-699.