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MT435 Operations Management
Name
MT435 Operations Management
Unit Three
Kaplan University
Date
Introduction
Operations and production as defined by Siegel & Shim (1999) is the process involved in the creation of goods and services. Operation management involves decision making about the production process to ensure that the goods or services produced are in accordance with the specified standards, at a minimum cost and under the given period of time. Input of labor, materials and resources are necessary to obtain goods and services of high value. The initial step involved in operation management as discussed by Siegel & Shim (1999) is the formulation of a business plan that incorporates both short-term and long-term strategies based on the demand for the good or service.
Question One
Based on the information presented in the scenario discuss Albatross Anchor’s competitiveness in relations to (please address all items in the below list and provide support for your conclusions).
Cost.
Cost is a significant determinant in most markets. Most people will purchase a commodity or service if it is cheaper in price compared to others. For a company to effectively compete in such an industry, then they have to produce their products at a minimum cost so as to realize a profit.
Speed of manufacturing process from order to finished product.
The speed of conversion of raw materials to a finished product affects the speed of delivery of the product to the customer. The speed of delivery in-turn influences the buying decision by the customer. Most companies use speed of delivery as a strategy to increase its customer base which has an effect of changing the premium price of the product.
(c) Flexibility in filling order(s)
Flexibility is termed as the company’s ability to offer a broad array of products or services to its clients. As explored by Siegel & Shim (1999), it can also be a measure of how a company can convert its processes from production of one product to another. Product variation is seen as a mode of speed delivery by the customer.
(d) Technology
The employment of technology in the process of production increases the speed of which the products are manufactured therefore increasing the speed of delivery. The products are also of high quality and this provides a basis for competition.
(e) Capacity and facilities
The capacity and the facilities available for production effects the quantity of units produced. This also gives room for flexibility where the company can change the production of products. When dealing with fast-moving goods, it is essential for a company to have a large capacity and facilities for production so as to meet customer demands.
(f) Service to customers
Services to customers that include those during purchase and after purchase should be emphasized to gain a large customer base. Customer service is very important especially during purchase where the company can take the opportunity to talk more about the product to the customer explaining the benefits that can be derived from using the product as opposed to others. After-sale services that include transportation of the products for the customer are strategies that have been use by most producers for them to gain a competitive edge.
Question Two
There are many ways that mushroom/bell anchors may be manufactured. Albatross Anchor is considering two new manufacturing processes (Process A and Process B) to reduce costs. From the available information below determine which process has the lowest breakeven point (this validates the process is more cost effective) and report your analysis and supporting conclusion.
For each process the following fixed costs and variable costs have been identified:
Anchor and Process Process A Process B
Size and weight of anchor 30 lbs 30 lbs
Sale price of anchor $ 35.00 $ 35.00
Fixed cost $ 500,000.00 $750,000.00
Variable cost per anchor $ 25.00 $ 23.00
Based on the above information identify:
(Please enter the answers for the following two questions into the below chart.)
(a) The total fixed costs per anchor for Process A and Process B
(b) The total number of anchors to attain breakeven point for Process A and for Process B
Anchor and Process Process A Process B
(a) Fixed costs per anchor $500,025.00 $750,023.00
(b) The total number of anchors to attain
break –even point for Process A and Process B 50,020 62,501
Identify as a result of your review, which Process (A or B) that you would recommend for adoption. Why? Please make sure to explain your answer with clear detail and substantiation.
Process A is more bound to produce better results as compared to Process B. this is determined by the break-even points of the two processes. The break-even point for process B is higher meaning that the company would have to sell more than 62,501 anchors in order to make a profit as compared to process A where the company would be required to sell at least 50,020 to make a profit. Process A in my view is more achievable especially when trying to launch a new product due to the unpredictable nature of the market.
Question Three
Based on the limited information in the case study along with the answers to the questions above; identify at least two direct and specific long-term and two direct and specific short term operational changes that Albatross Anchor must make to gain a clear and sustainable competitive advantage. Please make sure to explain your answers with clear detail and substantiation.
Long term operations
Product design- The limiting characteristics of a production system are realized during the product design stage. The major obstacle in the design is to come up with one that will employ the use of minimum costs during the production. In the long run, the production design will have long term implications on the process of production and the profits realized (Siegel & Shim, 1999).
System location- The location of the production plant is vital for its growth and for low production costs. The source of raw materials, transport and communication, availability of power, labor and other factors of production should be available at the location of the production plant. The location should also consider the potential customers therefore it would be advantageous to have the production plant close to the targeted customers for ease in accessibility. It is for this reasons that the choice of the systems location is vital for the success of the company.
Short term operations
Quality control- The quality is very significant because it captures the interest of customers and at the same time boosting their confidence. The products should be certified by a certified body or even be ISO certified to enhance and maintain customer confidence thereby giving the company a competitive advantage.
Inventory and production control- keeping of proper records so as to know the number of units produced and those sold is important for the assessment of the success of the production system. It is for this reason that the company should have efficient measures for inventory and production control.
Conclusion
In the production, several things have to be considered. The choice of the system site, the production design, availability of raw materials, labor and other factors are essential to ensure that production is done at a minimum cost. Strategies that are both long-term and short-term are employed to give the company a competitive advantage over others producing similar products or services. For efficient production and flexibility, the capacity and facilities available should be well considered to make sure that the consumers’ demands are met. Use of technology in production is vital for efficiency and for speed in manufacturing.
References
Siegel, J. & Shim, J. (1999). Operations Management. New York: Barron’s Educational Series, Inc. Print.
MT140 Unit 6 Assignment. This paper will address how Lei can apply the four-step control process delineated in the text to ad
MT140 Unit 6 Assignment
Name:
Institution affiliation:
This paper will address how Lei can apply the four-step control process delineated in the text to address the issue of misreporting hours? The four-step processes described in the Bureaucratic Control System are as follows: Setting performance standards, measuring performance, comparing the standards against performance and taking action to reinforce successes and correct problems (Bateman & Snell, 2009).
Step 1: Setting performance standards – All organizations have an objective or standard practices that they execute to get to the craved results for their association. Guidelines are a level of execution that an association anticipates from their employees to perform the organizations objectives. Some of these objectives are for gainfulness, fulfillment of clients and workers, advancement, working exercises, funds, et cetera. These are focuses to A standard is the level of expected execution for a given objective. So Lei needs to redesign and afterward inform all employees of the new standards that are normal and the disciplinary activities that will take after in the event that they don’t go along.
Step 2: Measuring Performance- After attainment of these new standards, Lei will need to measure the current approaches and guidelines that are generally utilized by every employee. Measuring exhibitions can be through individual perception, composed reports, and oral reports. Lei will need to assemble this data with the goal that she may contrast with the new measures and to discover any disparities; much like the one she has found with unmerited hours that are generally reported as hours lived up to expectations.
Step 3: Comparing the standards against performance – this is the time to analyze the current techniques employees are utilizing to the new standards. Lei can take a look at what number of redress papers for timekeeping have been documented, days employees were non-attendant, what amount was sold amid a given movement/time period and cash earned. Anything that may help Lei demonstrate that the workers are purposefully including hours that haven’t been met expectations.
Step 4: Taking action to reinforce successes and correct problems – This last step is the place the fitting move will be made if there is a need. For example, if a specific worker has incredible deals, or has indicated extraordinary change with client fulfillment, then Lei would need to recognize the employees’ success. In this case however if Lei sees any longer time clock fabrication then she will need to take the correct restorative activities as expressed in the updated handbook. In the event that the issue is not secured in the handbook then it needs to be added as fast as could be allowed to counteract further occurrences.
References
Bateman, T., & Snell, S. (2009). Management. Boston: McGraw-Hill Irwin.
Ground Transportation Uber Service
Ground Transportation Uber Service
Name of Student
Name of Institution
Ground Transportation Uber Service
The delivery of services is quite different from the sale of goods. The obvious difference between the two is that services are intangible whereas goods are tangible. When it comes to marketing, the two are treated differently due to their nature. The 7 P’s of the marketing mix, that is, product, price, place, promotion, people, process, and physical evidence apply differently for services. An analysis of Uber Transportation Service revealed unique service demands that service providers and marketers consider if success is to be achieved.
Operating a transportation service in the nature of taxis necessitates a calculated approach in delivery and marketing. Uber transformed the nature of its delivery such that it is different from the usual taxis. The resort to mobile application as a means of attracting customers and enhancing convenience greatly put the company above rivals. As evidenced in the articles, competitors flocked courts in suits against Uber whereas the local authorities claimed Uber was violating taxi regulations (Wharton University, 2012).
Uber transformed the service to suit customer needs. Most customers have in the past been frustrated by taxi delays and unavailability at the required time. With an online platform, a customer simply touches a button of the mobile phone and the taxi comes to his or her location. This is convenience at its peak. In terms of pricing, Uber reflected the price of the service and associated convenience in the final bill paid for a trip. The comfort of the cars and the reliability of the drivers were among factors taken into account in determining the price. As spelt out clearly in one of the articles, the fares varied depending on the distance covered and the demand for the cabs.
Uber realized that online presence would be a sure way of tapping customers as opposed to taxi ranks on the streets. The number of customers Uber commands has since shocked competitors who, out of malicious intent, cite outrageous considerations as a reason to kick Uber out of business. The customer ratings were a sure way of promoting the service. When customers have the opportunity to rate a service, they present their level of satisfaction, which can be used to determine whether such a customer will come a second time.
Uber’s move to bring independent contractors on board was a good one. However, the company lost its grip on supervision and control of the drivers, because an independent contractor is as independent as the name suggests. The quality of service deteriorated due to the lack of driver control. This is one sure way to drive down the demand for the service because customer satisfaction will go down as well.
Uber’s mobile app platform was a process easier to master for most customers. The mode of payment and the customer ratings were routine steps that a customer had to go through during the consumption of the service. This move made Uber a taxi service provider of a kind. Customers easily related with the company just by conducting these routine steps. Moreover, the ability of a customer to request the service through the mobile app gave the service a tangible aspect and helped cement customer loyalty.
If Uber is to enhance its strategy for greater success, it must consider certain factors. Firstly, the use of independent drivers should be stopped. Instead, the company should employ its drivers and invest in its cars that have similar standards. This way, there will be uniformity in service provision. Secondly, Uber should be careful in its pricing strategy to avoid the impression of exorbitant prices. The company could have even a greater edge against its competitors if it charges moderate prices almost equal to its competitors (Business Case Studies, 2015). With a level playing ground in terms of pricing and difference in service quality, Uber will be the talk of the taxi market. Lastly, Uber should give its service an extra touch, including the offering of free drinks to customers on board and rewarding loyal customers with free rides. Such refined touches add value to the service and help cement customer loyalty.
References
Business Case Studies (2015). The extended marketing mix (7Ps). Retrieved 9 February 2015
from HYPERLINK “http://businesscasestudies.co.uk/business-theory/marketing/the-extended-marketing-mix-7ps.html” l “axzz3RMeY6vIz” http://businesscasestudies.co.uk/business-theory/marketing/the-extended-marketing-mix-7ps.html#axzz3RMeY6vIz
Wharton University (2012). An Uber Problem for Cities: Balancing Innovation with Regulation.
Retrieved 9 February 2015 from HYPERLINK “http://knowledge.wharton.upenn.edu/article/an-uber-problem-for-cities-balancing-innovation-with-regulation/” http://knowledge.wharton.upenn.edu/article/an-uber-problem-for-cities-balancing-innovation-with-regulation/