Paper Example: “Operation Management”

The company has to develop its own strategy in order to attain its goals within the time limit it has set to ensure its profit maximization by increasing the total output of production it manufactures. Consequently, the company management will have to recruit trained personnel who are qualified with technical skills to operate the production department with ease thus quality products would be manufactured. This would ensure that the aims of the company are adhered to and that the already existing personnel are also updated with the latest technologies. They should know how to operate them through inclusion on annual seminars to help upgrade their skill worth. Alternatively, newly recruited personnel within the company should be inducted at first to familiarize them with the company layout and various departments before being introduced how to run various machines under supervision until they are fit to handle it themselves. The management should not delegate duties mandated for senior employees to them but rather assign them duties under close monitor to ensure they do not error. Service level (Cycle-service level is the desired probability of not running out of stock in any one ordering cycle, which begins at the time an order is placed and ends when it arrives. Protection interval is the period over which safety stock must protect the user from running out of stock, in this case, the lead time period.

Q. 1a. Reorder point (R) = DL + Safety stock (SS)

Safety stock (SS) = zsL

z = The number of standard deviations needed for a given cycle-service level.

sL= Standard deviation of the demand during lead time

DL = The average demand during the lead time period.

Pedal pusher reorder point for 2014 would be 765.8 while a safety stock of 691 is required for the entire year. This means one month safety stock would 691/13 which is 58 bikes.

Main report
It is the duty of this department to ensure that factors of production are on position to ensure smooth operation of the company. Among the first factor involved here is capital which is the most important vital factor of production that the company should poses in order to enable it acquire other materials to be used in the firm. It is through capital that the procurement department that falls under operation will be able to purchase the raw materials necessary for production in the company. It is through this capital that the company would be able to market its product in different forums including trade exhibitions that are held at different levels. The capital itself is the base of the company since it is the solid strength of the company which can enable it expand and steadily grow to a multinational corporation. The company should also posses the second production factor which is labor. This is the manpower of both trained and unskilled personnel who in one way would contribute to the excellence of the company. It is through this labor as a vital factor that would again propel the company with the manpower it needs to achieve its estimated worth. Consequently, it is labor that the company can work on its production output to realize its targeted objectives. It has to hire enough labor to help it manage its various departments. Labor hired will depend with the section where workers should be skilled and professionally qualified to undertake the duties they are delegated to carry on with. The managers should be well acquainted with leadership skills to help them supervise the performance of the employees and guiding them on the best platform possible to perform these duties. Through labor the company will be able to perform to its required standard and get the profits it needs. The operation managers should ensure that it motivates the workers in order to increase their performance output because through motivation they would develop the urge to work even more hours than expected. They would request and once ready willing to work for overtime hours in order generate maximum profits of the company. It is the responsibility of the management to ensure that the overtime hours worked by the employees are paid for and compensated. The best performed employees should be rewarded by being promoted to managers as an appreciation for their hard work.

The management should organize training and induction workshops for their employees to ensure that the labor service company gets is of high quality and standardized to ensure that the goods that the company do produce are of high quality. Quality of goods would sell it out to generate more profits in the company to ensure that output level is reached. The management should also outsource some professionals to come and perform some tasks within the organization. The management should ensure that it has raw materials necessary for the production activities to be carried underway. The materials should be readily accessible to enable the company operate smoothly without any delays that might otherwise cause delays that would lag behind the production time limit as expected by the company. The managers should be good decision makers to ensure that outright decisions made in the firm do favor the performance improvement of the company. They should also posses’ good leadership skills such as proper communication. This is where they are able to communicate with other workers despite different cultural backgrounds to ensure that there is cooperation amongst workers. Operation management also involves the cooperation of top level management with other shareholders of the company. The workers should cooperate well with their fellow colleagues and other managers to have a mutual understanding at the job thus working together as a team to achieve a common goal. As a team together they would achieve more goals that the company has set as longtime achievement. The company should also maintain development of its employees by offering promotions and sponsoring them to undertake certain courses to ensure they have skills. The company also ensures that it promotes the products the company produces and markets them to receive attention of the customers. The operation department is responsible for marketing of the company products in the market and also researching on the customer response on the products. The products can be rebranded to make them appealing to the customers. In addition, the company has to research on the needs and expectations of customers to enable it succeed in the market. It also has to market the brands the company manufactures in different market chains such as supermarkets and retail centers to enable the company make the profits it ascertain to make . It is this department that is responsible for generation of constant income for the company that rotates and finances the company expenses. This would help increase the asset worth of the company by ensuring that new commodities are upgraded in then firm to enable it operates efficiently. The company will have to open up new branches and depots in other regions to be able to cover a wide market that would increase its demand output. This automatically increases the supply demand and increases the production levels of the company to ensure that indeed it is a success.

Appendices

Table 1

Questions I have done in this scale generally ask you about sales and purchases in the last three years.

Under each Case, you 2011____________________________________________________________

2012_________

2013 ________

2014_____________________________________

2011 = 647 = fair 2 = good 3 = better 4 = best

1. In the last three years, what was the company performance as per the operation measures developed on the firm… 0 1 2 3 4
2. In the last three years, how did the management of the company through operation management control the purchase conducted in the company….. 0 1 2 3 4
3. In the last year of the production 2013 how was the performance? ………….. 0 1 2 3 4
4. In the last forecasting year how prepared is the company to handle any shortfalls within the business… 0 1 2 3 4
5. In the last year of production how often did the company speculate its success… 0 1 2 3 4
6. In the last year of forecasting how ell was the company prepared to deal with its future production……………………………………………………. 0 1 2 3 4
7. In the last year how well did the company manage its resources… 0 1 2 3 4
8. In the year how did the company generally perform? ……..0 1 2 3 4
9. In the last year, how did the management deal with irate employees to achieve its targets? ………………………………. 0 1 2 3 4
10. In the last year, which obstacles did the company overcome in this venture? …… 0 1 2 3 4

Please tick alongside each item

1-2 indicate low dependence

3-4 indicate low to mod dependence

5-7 indicates moderate dependence

8 and above indicate high dependence