Tuesday, May 5, 2020

Operation Management Efficient Possible Product Process

Question: Discuss about the Operation Management for Efficient Possible Product Process. Answer: Introduction: Operation management relates to the control of the business process and the production process in an efficient possible manner. The management of the operation involves the certain responsibilities. The operation management involves the efficient operation of the business both in the terms of using the minimum resources that are essential and in meeting the requirement of the customers with a high standard. The management of operation involves the process that converts the labour, raw material and energy into the product and services (Ribeiro, 2008). The creativity and skills of the people, rational analysis, and the technological knowledge are the important aspects of the operation management. Hawkesbury Cabinets current production system and processes The Hawkesbury Cabinet Company designs and manufactures the kitchen cabinetry. In 2008, the company founded by the siblings Mei Chen and Fung in Mulgrave, Sydney. The Mei Chen is the qualified interior decorator and the Fung is the master cabinetmaker. The Hawkesbury Cabinet Company, is originally working according to the needs of the Chinese community. As the company grows day by day, the company found that the customers have more and more diverse interest. Fung works as the production and operation manager and Mei Chen has found her interest in the management of the finance and the enterprises overall. The company mostly focuses on the custom-based kitchen cabinetry, but as the reputation of the company increases, it also signed the small contracts from the small spec builders for the standardized kitchen cabinetry. The builders clients are more sensitive to the delivery requirement and more stringent to the price than the custom-based buyers (Radomska, 2014). The company more focu ses on the custom-based kitchen cabinetry, but the builders kitchen cabinetry also become important. The standardized kitchen accounted the 25% revenue of the company and 40% of the factory volume. The current production process for the company is as follows In Mulgrave, the company operates the single manufacturing unit. In this manufacturing unit, both the standardized and the custom-based cabinet manufacturer. The equipment that used for the manufacturing of the cabinets for the general purpose to fulfil the needs of the customers in the custom-based cabinets (Thomason, 2004). In the layout of the factory, the various types of the equipment grouped together. The saws and the cutting tables placed in the one section, the shapers and routers in the other sections, while the less using equipment such as lathes placed in other section away from the work area. In the factory premises, there are numbers of the assembly sections. In the environmentally controlled section, painting and finishing did in the rear of the facility. The quality of the finished product reflects the superior quality of the raw material used and craftsmanship of the cabinet makers. Both the standardized and custom-based cabinets have to compete for the time for the processing on the same equipment and from the same cabinetmakers. This is the current production process of the company (Ortgiese and Hubschneider, 2008). The company is not using the Business Process Redesign, Six Sigma, reconfigurable manufacturing system and Lean manufacturing theories in the operational management. The effect of the new builders kitchen line The current operation of the company is not managed properly, as the operation management is the management related to the minimum use of the resources for the production of the goods and services of the highest quality. That is the operational management is the production of the best quality product through the minimum cost in the terms of the resources to gain the maximum profit. As in the essay, it already discussed that the demand for the builders kitchen line also increased with the increasing demands of the custom-based kitchen cabinets. The Hawkesbury cabinets mostly focus on the production of the custom-based kitchen cabinets because of their higher sale and profit as compared to the builders kitchen. However, in the production process, both the standardized kitchen line and the custom-based kitchen line have to compete with each other because of the same equipment and the same craftspeople. As the company gives priority to the custom-based kitchen line, the components of the standardized kitchen line left sitting in the manufacturing plant in the different sections (Alfaro, Ortiz and Poler, 2007). Thus, the company that has enough space now becomes congested factory because of the clogging of the partially completed standardized kitchen cabinets. Both the products also faced the problem of the late deliveries that affect the reputation of the company. Hence, the builders kitchen line affects the production of the custom kitchen cabinets because both use the same equipment and the cabinetmakers. Both of the products face the late delivery problem. The production and the business process of the company do not manage to gain maximum profits from the minimum cost. The effect of the new builders kitchen on the financial position The standardized builders kitchen has a negative impact on the financial position of the company. As the sales of the both of the product increased, but the profits are not as such they required. Because, the cost associated with the manufacturing of the standard kitchen cabinets increased, the excess capital used for the work in process, raw material inventory and the finished product. The company had rented the space for the accommodation of the inventory increased volume. In the manufacturing unit, there is no space for the expansion. As in the essay, it is already discussed that the standardized kitchen cabinets have less profit and less sales, but they have more impact on the financial position of the company (Graham, 2010). The company more of the space of the company occupied by the partially completed work of the standardized kitchen cabinets and the company have rented the warehouse for the inventory. The Hawkesbury Cabinets Pvt Ltd Company is not able to manage its operation because of the production of the two products that use the same equipment and the craftspeople. The company gives important to one of its products than the other. There is not proper management of the production of the both products that is why the company is facing the financial and other operational related problems (Ozbilgin and Penno, 2005). The operational management of the company is unable to produce the goods and services of the highest quality at the minimum cost in terms of the resources. Conclusion The Hawkesbury Cabinet Company is the manufacturing the kitchen cabinets. The company does the excellent growth in the few years. The company mainly focuses on the custom-based kitchen cabinet manufacturing, but it also manufactures the standardized kitchen cabinet of the builders. The sale of the both types of the cabinets increased, but now the company is unable to manage the production of the both types of the cabinets with high quality at the minimum cost. The company is not making as much profit as expected from the sale of the products. The main reason behind this problem is the company is using the same equipment and the same craftspeople for the manufacturing of the two products and the company give importance to the manufacturing of the custom-based cabinets. References Alfaro, J., Ortiz, A. and Poler, R. (2007). Performance measurement system for business processes.Production Planning Control, 18(8), pp.641-654. Graham, M. (2010). The Digital Economy. Business Organisation, Production Processes, and Regional Developments.Regional Studies, 44(3), pp.385-386. Ortgiese, M. and Hubschneider, H. (2008). Operational Aspects of Cooperative Systems Organisation, Operation and Financing of Innovative Telematics Services (Betriebsaspekte kooperativer Systeme Organisation, Betrieb und Finanzierung innovativer Telematik-Dienste).it - Information Technology, 50(4/2008). Ozbilgin, M. and Penno, M. (2005). Corporate Disclosure and Operational Strategy: Financial vs. Operational Success.Management Science, 51(6), pp.920-931. Radomska, J. (2014). Operational risk associated with the strategy implementation.Management, 18(2). RIBEIRO, L. (2008). Operational Aspects: Practical aspects of conducting a trial.Acta Ophthalmologica, 86, pp.0-0. Thomason, D. (2004). Strategic, tactical, operational [demand management].Manufacturing Engineer, 83(3), pp.34-37.

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