...1. The 4 V’s Overview All operations processes have one thing in common, they all take their ‘inputs’ like, raw materials, knowledge, capital, equipment and time and transform them into outputs (goods and services). They do this is different ways and the main four are known as the Four V’s, Volume, Variety, Variation and Visibility. 2. The Volume Dimension A great example of this is McDonalds, they are a well known example of high volume low cost hamburger and fast food production. The volume of their operation is key to how their business is organised. Essential to their operation is the repeatability of the tasks their employees are doing as well as the systemisation of the work, where standards and procedures drive the way in which each part of the job is carried out. This combination provides a low cost base. In contrast a local café has a much lower volume of output, less labour, less systemisation, and each staff member completes a wider variety of tasks which results in higher unit costs. 3. The Variety Dimension A common example used to describe the variety dimension is the contrast between a taxi and a bus service. Both offer hired transportation services but a taxi service has a much higher variety dimension as they will basically pick you up and drop you off wherever it is you need to go. A bus offers a defined route and schedule. Whilst they offer a similar service, variety and flexibility is high for the taxi company and low for the bus company. It is...
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...Operations Management IMPACT OF THE 4 V’S Table of Contents Introdution To 4v’s 3 Mcdonald Process 7 Inputs 7 Facilities: 8 Output 8 Quality Management 8 4v Challenges In Mc Donald 9 Dominos introduction to 4V’s 12 production process 13 Improvement 15 Conclusion 16 Referances Group member list Introduction Production process Four V’s for Processes Four characteristics of demand in particular have a significant effect on how processes need to be managed: * The volume of the products and services produced * The variety of the different products and services produced * The variation in the demand for products and services * The degree of visibility that customers have of the production of products and services. Four V’s of processes in detail. I. Volume Processes with a high volume of output will have a high degree of repeatability. That means the same thing is happening over and over again. Producing biscuits, batteries or even books can be such examples. The implications of this are that high-volume processes have more opportunities to produce products or services at low-unit cost. So, for an example, the volume and standardization of large fast-food restaurant chains such as MacDonald’s or KFC enables them to produce with greater efficiency than a small, local cafeteria or a restaurant. The implications can be even at country levels with regard to their competitiveness. Apparel industry in China, thriving on volumes...
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...Operations management can be defined as the planning, scheduling, and control of the activities that transform inputs into finished goods and services. In other words, it is ‘a field of study that focuses on the effective planning , scheduling, use, and control of a manufacturing or service organisation through the study of concepts from design engineering, industrial engineering, and management information systems, quality management, production management, accounting, and other functions as the affect the operation. Operations management concerns making the most efficient use of whatever resources an organisation to provide the finished goods or services that its customer need on time and cost effective manner. Operations management is related with the strategy of the organisation. In this coursework, we will demonstrate the relationship between the operations management and the strategy of the organisation with the help of a corporate entity. The corporate entity chosen is McDonald's Corporation. McDonald's Corporation is the world's largest chain of fast-food restaurants. The business began in 1940, with a restaurant opened by siblings Dick and Mac McDonald in San Bernardino, California. Today McDonald's restaurants are found in 120 countries and around the world and serve nearly 54 million customers each day. Product Planning Organisations exist to provide products and services which can be purchased by other organisations or an individual. Therefore planning of products...
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...Operations management, the essential department of a company with the functions of designing, monitoring, and guiding the process of production Operations managers have the responsibility of ensuring that the business operations are efficient in the terms of utilizing as few resources as needed and effectively meeting customer requirements. Internally, operations management are tasked with the redesigning a business operations, as well as, handling/monitoring complaints from consumers and different problems with employees that need management to intervene. The decisions and actions taken within its operations have a direct impact on the basis on which an organization is able to survive and prosper within in its environment for a long- term period. Operations management includes substantial measurement and analysis of internal processes, which is carried out in a company depending on the nature of the products or services (Stevenson, 10th Edition, 2008). Maintaining a successful business is every companies overall goal. Building a strong relationship within the company as well as externally has been a key component in helping the company grow and continue to be successful (Establishing and Developing Strategic Relationships – The Role for Operations Managers. Staughton, Roy. 2009). Externally, how we manage productive resources is critical to making profits, growing and competing. Today, the purpose of operations management externally is to make the best use of productive...
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...Toyota Operations Management maintenance of the production of goods or services 1. Introduction Operations management is the maintenance of the production of goods or services that a company is developing for sale. The management team is charged with the task of ensuring a profitable and safe production system, and also ensuring that resources are allocated and used in an efficient manner, minimizing waste in labour and material resources. In order to meet these goals, the management team thus has to attempt to find the best operations strategy available for their particular situation and product. The biggest challenge for any organization and its operations is to try to maximize productions by cutting down on waste, Finding the right balance between getting the production up to the required standard by using the resources available to the optimal level. There are many strategies that can be used by an operations manager depending on the needs of production, and in the first section we will examine some existing operation management strategies, and in the second section we will examine the effectiveness of these strategies, and how well they fit in with the goals of the target organization, Toyota. 2. Operations Managers Role The Role of an operations manager is of utmost importance as any operations manager who can effectively utilize an organizations resources to efficient effect by producing outputs of a standard & sustainable quality, contributes to the organizations...
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...Chapter one 1.1 Introduction For many manufacturers the task of meeting the ever rising demand and customer expectations and lowering production cost and maximizing profit in an environment of more products, more complexity, more choice and competition is placing great stress on the effectiveness of their planning of activities in the product kind. Organizations have already adopted solutions with varying degrees of planning and scheduling capabilities. Yet, operations executive acknowledge that these same systems are becoming out dated, lacking the speed, flexibility and responsiveness to manage their increasing complex production environment. Optimization techniques are applied to find out whether resources available are effectively utilized in order to achieve optimum profit from the activities of the firm. There should be consistency in the use of various resources and the mix should be such that it brings down the cost for ensuring profit. Therefore, it is the duty of the management to exercise control over the resources and to see that the resources are effectively utilized. Similarly, organizations in general are involved in manufacturing a variety of products to cater the needs of the society and to maximize the profit. While doing so, they need to be familiar with different combinations of product mix which will maximize the profit. Or alternatively minimize the cost. The techniques such as ratio analysis, correlation and regression analyses, variance analysis...
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...Question 1 Operation management is the term used in managing resources for produce and delivery of goods and services, by using the most cost-saving and effective ways (Pycraff, 2000). Consequently, it would be clear that operation management is important in CDS. This is because a well operation management can lead to the minimization of production costs, successfully met with customer’s requirement and the increase of business revenues. Operation management is directly responsible to design the operation and system processes for the products and services. Next, operation management is requires to plan and control the activities of operation, yet they have to detect and respond to deviation from the operation. (Wps.pearsoned.co.uk, 2010) In general, these responsibilities can be emphasized through Sandra White, the Planning Manager in Concept Design Services (CDS) whose is in charge for all manufacturing and distribution activities in the organisation. For example, she has subcontracted some of the lower end products assembling jobs to other smaller moulding companies as to increase the production volumes and control its production costs. Furthermore, operation management in an organisation is indirectly responsible to work closely with other functional areas of business, for instance, Marketing, Accounting and Finance and Human resources (Pycraff, 2000). Also, they will have to encourage those functions to suggest ways that can improve its “service” to the rest of others...
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...Operations performance objectives This first point made in this section is that operations objectives are very broad. Operations management has an impact on the five broad categories of stakeholders in any organisation. Stakeholders is a broad term but is generally used to mean anybody who could have an interest in, or is affected by, the operation. The five groups are: * Customers - These are the most obvious people who will be affected by any business. What the chapter goes on to call the five operations performance objectives apply primarily to this group of people. * Suppliers - Operations can have a major impact on suppliers, both on how they prosper themselves, and on how effective they are at supplying the operation. * Shareholders - Clearly, the better an operation is at producing goods and services, the more likely the whole business is to prosper and shareholders will be one of the major beneficiaries of this. * Employees - Similarly, employees will be generally better off if the company is prosperous; if only because they are more likely to be employed in the future. However operations responsibilities to employees go far beyond this. It includes the general working conditions which are determined by the way the operation has been designed. * Society - Although often having no direct economic connection with the company, individuals and groups in society at large can be impacted by the way its operations managers behave. The most obvious example...
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...holding company, mainly engaged in real estate development in Malaysia. It does this by three parts: property development, education, and a clubhouse. The company develops, build and sell residential, commercial, industrial, leisure, and institutional property; management of private and international schools; and management and operation of the club. It is also involved in the sale of land; investment property; purchase of building materials; and providing landscape management, project management, management and administrative services. The company was founded in 1996 and is headquartered in Seremban, Malaysia.Matrix Concepts Holdings Berhad, a Negeri Sembilan according to property developers, it has earned a reputation for developing quality and affordable residential and commercial buildings since its incorporation in 1997.So far, the formation of a strong track record of completed development projects worth over one billion US dollars RM2.4 gross development value (GDV) of about 1900 acres of land in Negeri Sembilan and Johor. Part (A) Operations Management is the management of business practices to create the highest level of efficiency in the organization. The purpose of the operational management is the conversion of materials and labor into commodities and services as much as possible to maximize the profits of such an organization. Direct responsibility method individual or team, is responsible for all the necessary clients will need to go to the results...
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...What is Operations Management? 2013 Joshua Richards POM 343 Due: 12/11/2013 Table of Contents Tale of Things to Come 1 Conceptual Model 2 Class Two: What is Operations Management / Productivity, Competitiveness & Strategy 3 Class Three: Forecasting, Aggregate Planning, MRP and ERP 4 Class Four: Product and Service Design 5 Class Five: Capacity Planning, Process Selection and Facility Layout 6 Class Six: Design of Work Systems and Learning Curves 7 Class Eight: Location Planning and Analysis 8 Class Nine: Management of Quality and Quality Control 9 Class Ten: Inventory Management 10 Class Eleven: JIT and Lean Operations 11 Class Twelve: Supply Chain Management 12 Conclusion 13 Tale of Things to Come I am going to take you on a whirlwind of wonder and learning all based around operations management. At least that is what I saw it as. Coming in to a class with no expectations, mainly because I have never heard of the topic, I was pleasantly surprised. Coming from a person who has hopes and dreams to own or at least run a successful company someday this class had a plethora of information that I will hopefully someday have the opportunity to use. I decided to break the class down week by week. The reason I chose to do this is partly because of the material and partly because of the teaching method. One thing I loved about the class is that as you go along you always continue to use the stuff you learned previously. When we were doing supply...
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...Operations Management is a fundamental and vital part of any organization from a niche market to a multi-million dollar conglomerate. It aim its focused on effectively turning inputs to outputs and by doing that obtaining a competitive advantage among everyone that is in that market. In fact, Forbes magazine reported in 2011 that about three quarters of all CEOs came from an operations background. Not all these CEOs studied operations in school; only some of them did. OM orchestrates all the resources needed for the final product. It includes designing, deciding what resources are needed for e.g. A hospital resources would be its team of qualified doctors, nurses, clerical/ administrative staff, their strategically analysed medical procedures and their state of the art, outstanding medical equipment. Operations Management focuses on all various Departments whether it be Sales and Marketing, Quality, Accounts, Finance or Human Recourses to assure to production of the good or/and services. Human Resource would be able to make good staffing decisions better job descriptions, applicable training programs. Without operation Account Department wont be able to pay off bills and suppliers also staff which can lead to big problems further down the road. If operations fail to run well the consequences of HR are not good. They help implement strategies that would assist the company in reducing cost and maximizing its profits to also improve flexibility to meet that swift changes of...
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...1. Why is it undesirable for the United States to evolve into a service economy? It is undesirable for the United States to evolve into a service economy because several problems arise if jobs shift from manufacturing to service. One is that service job pay less. Many service jobs are in minimum wage, while hourly wages from manufacturing jobs have historically exceeded the minimum wage by a substantial margin. As a result the standard living will necessarily decline. Furthermore, manufacturing allows the firm to capture payoff for the development of new technology. If this payoff is lost, so is the incentive to invest in research. The decline of manufacturing domestically has led to a shift in jobs from the manufacturing sector to the service sector. Because there are major disparities in labor costs in different parts of the world, there are strong incentives for American firms to locate volume manufacturing facilities overseas to reduce labor costs. 2.What disadvantages do you see if the CEO is primarily concerned with the short-term ROI? In the short term, decreasing the denominator by cutting back on the investment in new technologies or new facilities. Performance is measured over short time horizons. There is little motivation for a CEO to invest in a project that is not likely to bear fruit. 3.Can you think of companies that have gone out of business because they focused only on cost and were not able to achieve a minimum quality standard? -“Enron went from...
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...Operations Management… By D.B.S. Saurabh Marwah(201401017), Dingnan Ouyang(201400084), Boyang Yu(201400104) Students – Asia Pacific International College Literature review 1 Literature review of Operations management Saurabh Marwah, Dingnang, Boyang Asia Pacific International College Research Topic: The impact of total supply chain management on organization performance? Literature review 2 Introduction Operations management is an important part for all the organizations to run themselves successfully or in a professional manner. It refers to decisions and responsibilities of managing the resources dedicated to the production and service delivery. Managers are the people who are responsible managing the resources that make up the operations function. There are other functions also which are not core to the organizations which are for the smooth running of the organizations such as accounting, IT, human resources. Being an operations manager contains a lot of responsibilities and activates in the organization, which contribute to give good service. * Strategic objective: Operations managers must clearly understand the goals of the organization and develop vision in order to achieve them, which also involve translating the goals into implications. * Operations strategy: There are numerous decision-making involved with operations, it is important that operations manager should have a set of guidelines that are connected with organization’s...
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...1. Explain how operations management activities affect the customer experiences described in the Museum of Science and Industry anecdote at the beginning of this chapter. What “moments of truth” would a customer encounter? Operations Management, focuses on the goods, service and processes in creating customer experiences and satiations. This is done by job design and customer flow, the importance of service management skills, creating a demand, capacity and staff/show scheduling, employee training, purchasing, forecast call volume, determine the number of customers serviced to have on duty by the time of day, design of their jobs and training them to offer superior delivery of customer service. The anecdote at Chicago’s Museum of Science and Industry focuses on the role of guest call center, information services, exhibit maintenance, food service, protective services, facilities, operations, and processes in creating customer experiences and satisfaction. Moments of truth might include; buying a ticket and the associated service encounters with a call center, getting to the (parking, train, taxi, walk) museum site, web site or travel agency, waiting in line, food service, rest rooms, handicap and discarding trash processes, museum security, interactive museum and learning displays and continuous improvement orientation. 2. Explain why a bank teller, nurse, or flight attendant must have service management skills. How do the required skills differ for someone working...
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...Space Age Furniture Company Shemequa Cross Operations Management BUS: 644 Michael Snell 12 10 2013 Abstract The Space Age Furniture Company appropriated a requisition of 1000 Gemini furniture pieces and an alternate for 1000 Saturn furniture pieces. The unit that will generate they said units is equipped for gathering the handling of the requested products, however the quandary is the accessibility of a gifted worker who can proficiently work the extraordinary machine required in the processing of a particular part to finish an unit. The main mechanic of the organization can prepare 30 bits of said part in a hour, 240 pieces in a general 8 hour work day, or what added up to 1,200 pieces in a 5 working days for every week. Anyhow to take care of the demand of the customer for a particular date of conveyance, 2,000 units must be made in one week. Ed, the main gifted machine admin is hesitant to work more extra minutes. In this way, the furniture organization is confronted with the issue of conveying the requested units asked for by the customer on a particular date and influencing Ed to work additional minutes throughout the whole weeks of processing. The organization has one week lead opportunity to transform both requested items. Struggling to meet the client satisfaction, by effectively balancing production of goods with employee contentment is always a problem to producers of goods. Take the case of Space Age Furniture Company. The company has only one machine...
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