...Case Study: Midas BUS 644 Operations Management Dr. Snell May 19, 2014 Case Study: Midas Specialization is a two-edged sword. When an organization specializes, they become experts in a particular process, product, or operation. In exchange for this deeper knowledge and ability in one factor, the organization typically suffers a loss of width in the marketplace therein reducing their potential customer base. Efficiencies should certainly be derived from this specialization and with efficiency may come greater profitability. When examining such an organization, a case study is useful to help break down the scenario and discover real-world effects of specialization. In this paper, the company Midas will be reviewed for their operational efficiencies, potential weaknesses and other negative impacts, and how, through analysis of these factors, a better business paradigm can be developed and implemented. Midas provide vehicle services related to exhaust, brakes, and shock absorbers. They do not offer general automotive services but rather specialize in those three areas. As described by Vonderembse and White (2013), this provides Midas with a number of advantages. Firstly, the limited services allows Midas to maintain a much more limited inventory which enables the workers to have the parts they need readily at hand near where work is being performed. Because of the focus on specific tasks, tools, training, and skills are also specialized and customized to fit the...
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...Inventory management is a core operations management activity. Good inventory management is important for the successful operation of most businesses and their supply chain. Operations, marketing, and finance have interests in good inventory management. Poor inventory management hampers operations, diminishes customer satisfaction, and increases operating costs (Stevenson, 2009, pg. 549). Inventory is a stock or store of goods. Too many companies have unsatisfactory inventory management, which sometimes is a sign that management does not recognize the importance of inventories. More often than not, though the recognition is there. What is lacking is an understanding of what needs to be done and how to do it (Stevenson, 2009, pg. 549). Harvey Industries current financial and inventory distress includes: no accountability for managing inventory issues, poor inventory record keeping of on-hand and out of stock supplies and inventory that has been used. Recommendations that would help Harvey Industries with better inventory control: First, make sure to set up an inventory control team. Their task should include inventory record maintenance that covers the stock room and assembly area and a regular inventory count. Secondly, use the A-B-C approach. In which classifies inventory items according to some measure of importance, usually annual dollar value, and then allocates control efforts accordingly. Harvey can use three classes of items they used: A (very...
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...CAPACITY PLANNING BECK MANUFACTURING AND PLANT CAPACITY BUS644: OPERATIONS MANAGEMENT KIMBERLY JOHNSON ASHFORD UNIVERSITY MICHAEL SNELL FEBRUARY 3, 2014 Capacity planning is a process used to determine production capacity needed by the organization to meet demands for its products. Capacity can be defined as the measurement of the organization’s ability to provide the demand for services or goods requested in a timely manner. Capacity may also be defined as the maximum rate of production. The decisions of management can affect capacity. Most decisions that affect capacity are increases in time and the quality of preventive maintenance which may increase capacity by reducing unexpected equipment failure and changing production rate. Capacity decisions are critical to the organization’s success because they allocate significant resources to assets that usually cannot be changed easily or economically. Capacity decision is based on the best estimate of the future and should be made so that as much flexibility as possible can be retained. If capacity is not obtain in the proper amount, too much capacity can mean that the organization invested in resources where not needed but if capacity is too small, potential sales and market share are lost. Capacity is the maximum amount of work that the organization is capable of completing in any given period. Effective capacity is the maximum amount of work the organization is capable of completing in a period...
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...Making Hotplates Tony Bennett Ashford University BUS644: Organizational Behavior/William Adams March 10, 2013 The summary will examine a company consisting of a group of workers who are responsible for assembling hotplates which are used in hospitals and medical laboratories to bring solutions to certain temperatures. A job of this nature requires a certain amount of patience and skills that some people could find hard or impossible to handle. The goal of the summary is to answer specific questions about the environment in which they worked, the managers and what did or did not motivate the employees. This analysis is done to obtain a better understanding of how motivation affects different aspects of working environments. Increasing Productivity What changes in the work situation might account for the increase in productivity and the decrease in controllable rejects? The increase in productivity and the decrease in controllable rejects are contributed to one decision, the introduction of the individual workstation. Separating the employees increased morale and made them accountable for their own work. The new assembly set up was perfect for everyone, the managers and also the company. Increasing Moral What might account for the drop in absenteeism and the increase in moral? Based on the information provided it appears the employees did not get along well. There are many factors that contribute...
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...OperationsManagement BUS644 Operations Management Prof. Brian Shaw October 22, 2012 Cookie production process: The cookie production processing is called batch processing system to produce the dough used to make its cookies. The baking company uses two continuous ovens to bake the cookies. The text states that “Batch processing is used when a moderate value of goods or services is desired, and it can handle a moderate variety of products and services” (Stevenson, 2011, p. 237). After production is scheduled, the first step is the delivery of an order list to the person in charge of mixing who determines the ingredients that are needed to complete the order in order to get the quantity. The computer sends the ingredients automatically to the mixing machines. After mixing, batter is cut into cookie shape and then deposited on a conveyor belt that will take it through the oven for cooking. After cooking, cookies are cooled, and then workers box each cookie by hand, discarding any that do not meet standards. Lastly, a machine wraps, seals and labels boxes, which are then ready to be delivered to distributors and sold in convenience stores and supermarkets. What are two ways that the company has increased productivity? Why did increasing the length of the ovens result in a faster output rate? The book states productivity as “the quantity of goods and services produced each hour of a worker’s time” (2011, p.10). The Baking...
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...Home-Style Cookies Jane Smith BUS644: Operations Management Professor Ben-Gourion Mestman February 6, 2012 Home-Style Cookies Production Processes The batch processing system begins when orders are received from distributors. Production schedules are based on the orders received. Each day, a list of cookies to be made is given to the person in charge of mixing. The ingredients needed are activated through a master list containing all the ingredients to ensure accuracy. After all ingredients are mixed, the batter is then poured so the cookies can be baked. Once the cookies are finished baking, they are cooled and then placed in the boxes manually by staff who removes the broken or deformed cookies. The boxes are then wrapped, sealed, and labeled automatically. The company has increased productivity by cutting the non-filled individual cookies on a diagonal so more cookies can bake at a time. In addition, automating the ingredients helps cut back on human error when mixing the ingredients. Increasing the length of the ovens made it possible to bake more cookies at one time. This increase in addition with cutting the non-filled cookies on the diagonal, makes it possible to be more productive. When one uses the machine productivity measure, it is evident that the number of units of output divided by the dollar value of output per machine hour is higher increasing the length of the oven. The company is making the right decision...
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