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    Page 1

    MASTER OF BUSINESS ADMINISTRATION

    AWARDED BY NOTTINGHAM TRENT UNIVERSITY

    ASSIGNMENT SUBMISSION FORM

    Note: Students must attach this page to the front of the assignment before uploading to WECSERF.For uploading instructions please see the help file online

    Name of Student: Zubair Saleem

    Student Registration Number: KL102047

    Module Name: Managing Operations Strategically

    Module Number: WEC-MBA-06-805

    Assignment Title: Conceptual analysis and evaluation of Operations Strategies

    Submission Due Date: August 16, 20`09

    Students Electronic Signature: Zubair

    Plagiarism is to be treated seriously. Students caught plagiarizing, can be expelled from the programme

    Assignment Form

    MBA Jan04

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    EXECUTIVE SUMMARY

    The global markets are continuously innovating due to innovations in ideas,

    strategies, workforce caliber, technology, and information of individuals as well of

    organizations.

    In this turbulent environment organizations are bound to look forward for innovations

    / new ideas and new procedures implementation in their respective industries to be

    sustainable and competitive in global free market.

    The implementation, analysis, synthesis, evaluation, creation, and in whole the

    management of all the operations of the organization is very important to achieve

    such global sustainability and competitive objective.

    This piece of work is written to complete the requirements of the degree and at the

    same time to analyze the operations of practical organizations and to propose the

    strategies to improve these operations.

    After the introduction of thorough idea of operations management and introduction of

    we have discussed in brief the quality problems and frequent machine breakdowns

    within the industry and its main causes.

    To remove these common and special causes we will be using fish bone diagram and

    its way of removal of these causes.

    The wastage and product recalls problems faced by the company we have discussed

    why they are termed as wastage or why customers reject the lots.

    To overcome these problems looking on the practical criticality of the organizations

    we have suggested the statistical process control system and its key impacts on the

    system.

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    TABLE OF COTENTS

    Executive Summary------------------------------------------------------------------ 02

    1.0 Introduction--------------------------------------------------------------------- 05

    2.0 Product Quality Problems---------------------------------------------------- 08

    2.1 Common Causes--------------------------------------------------------- 09

    2.2 Special Causes----------------------------------------------------------- 10

    2.3 Removal of Common and Special Causes---------------------------- 11

    2.4 Fish Bone Diagram------------------------------------------------------ 11

    3.0 Wastage And Product Recalls------------------------------------------------ 13

    3.1 Standard Process Control Method------------------------------------- 14

    3.2 Lean Manufacturing----------------------------------------------------- 15

    4.0 Inventory Management System---------------------------------------------- 17

    4.1 Current Inventory Management System------------------------------ 18

    4.2 Proposed Inventory Management System---------------------------- 20

    4.3 Just In Time (JIT) Method---------------------------------------------- 21

    5.0 Flow Of Materials, Products And People Within The Plant----------- 22

    5.1 Solutions Of Problems In Flow---------------------------------------- 24

    5.1.1 Planning Of Small And One Go Lots------------------------------- 24

    5.1.2 Increasing Plant Layout----------------------------------------------- 25

    6.0 Conclusion---------------------------------------------------------------------- 26

    7.0 References---------------------------------------------------------------------- 28

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    1.0 INTRODUCTION

    Operations management is basically a systematic implementation, directions, analysis

    and control of all the processes included to transform the inputs into finished goods

    and services.

    Operations management processes and functions mostly comprises the usage of

    equipments, tools, machines, facilities, materials, energy, employees, strategies,

    information and many other physical and non physical assets as inputs within the

    organizations. Or in other terms operations strategies comprise of 5 Ps i.e. Product,

    Plant, Processes, Programs and People.

    The operations managers are thought to be responsible for the management of each

    and every step or process of transformation of inputs into finished products and

    services.

    The techniques of operations management are basically used to obtain these finished

    products and services with the best possible usage of inputs.

    In the turbulent global business market the competition is always increasing due to

    many reasons like ICT (Information communication technology) innovations, ISO

    standards, WTO free market approach, customers / consumers knowledge

    enhancement, entrance of many Global Giants in the markets and many other

    reasons.

    These competition increasing reasons create a very much competitive market

    environment and organizations need to achieve competitive advantages to sustain and

    compete in such competing and innovative market environment.

    Processes and operations vary in products and services as well as from industry to

    industry. These products and services are tangible and intangible respectively and

    require some inputs for customer oriented outputs and to transform them with best

    possible efficiency.

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    The new concepts and innovations make Manufacturing and servicing industries to be

    more customers oriented and dont only rely on the products and service outputs but

    operate the industries for customer satisfaction and outputs are now not products and

    services but the Customer response on these output products.

    To achieve the positive customer response, sustain and compete in the market

    organizations have learnt and implemented many better strategies like Lean

    Manufacturing, 5 S strategies, Kaizen, Six Sigma, Process Capability Analysis,

    Benchmarking, Statistical Process Control, Total Quality Management, Knowledge

    Management Systems and many other enhanced ways to produce products and

    services to be more specified and customer oriented.

    Operations management is not only implemented on industrial basis but each SBU is

    also output producing unit and managers of those departments can also implement

    operations management strategies to improve efficiency, productivity and best

    possible quality. The organizations may have Pre and Post SBUs/ departments and the

    pre-department is termed as the supplier of the post-department while post department

    is termed as customer of the pre-department.

    The operations strategies may also vary from industry to industry and can also vary

    according to requirement like planned and unplanned or deliberate and emergent

    strategies.

    Mostly the deliberate and emergent strategies both are tried to be planned but

    sometimes in unexpected situations some unplanned strategies are also taken into

    account to solve the problems.

    The planned strategies mostly are also found in tacit as well in explicit form

    dependent on the firms information strategies.

    To be more specific, in this piece of work we will be discussing about the operations

    management of the Textile industry and for that I have chosen one SBU of Yunus

    Textile Mills, Karachi, Pakistan where I was working as Textile Engineer and as an

    employee will try to address the operation functions and strategies more efficiently.

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    Yunus Textile Mills was originated in 1999 and mainly three management teams have

    been changed until now. The management team working now is called Farooqians

    and they are working here from past five years.

    In Dyeing department the employee strength is about 180 and comprises of six fabric

    dyeing machine. Please refer to Appendix 1 for the organization structure of this

    industry.

    The supplier of this department is Bleaching department while its customers are

    printing and finishing departments or sometimes Folding department depends upon

    Final customer requirement.

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    2.0 PRODUCT QUALITY PROBLEMS

    Organizations may vary from machines, expertise, processes, procedures, products

    and strategies.

    The main purpose of manufacturing of a product leads us to the concept of supply

    and demand and thus the focus on markets, customers and consumers.

    Customers and markets set their standard and specifications on the basis of the

    demand of the product.

    After setting these standards a manufacturing industry is thought to be perfect on

    these standards and specifications or in whole Quality of the product.

    i) DEFECTIVE PRODUCTS

    Industries always try to be under these specifications to give the better quality and

    meet customer and market requirements to sustain / compete in a competitive market.

    When products go through their Product Life Cycle, they pass from different stages

    from their introduction to Decline stage and industries always try to expand their PLC

    by using their competitive advantages to maximize their profits.

    During the manufacturing products come in contact with many of problems

    depending upon product size, lot size, and industrys competitive advantages like its

    expertise, technology, finance, strategies etc.

    These products which are affected by those problems are termed as Defective or

    Wastage.

    The product defects may come because of many internal and external causes but if we

    generalize them or look them from broad perspective then these quality problems or

    defects are yield of two main causes in manufacturing of the products as given below;

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    ii) FREQUENT MACHINE BREAK DOWN

    Machines within the industry are termed as the basic resource and input of the

    industry and organizations always try to maintain them in order to avoid any

    unwanted stoppage.

    If these machines are not repaired, maintained, or face any careless action, then can

    cause problems and organization survives in result of defective goods, high

    maintenance cost and wastage of time and money due to stoppage.

    Frequent machine breakdown also may vary from machine to machine and industry to

    industry but in thorough view the machine break down can also be happened because

    of two main causes i.e. Common causes and special causes as described below.

    2.1 COMMON CAUSES

    Common causes are basically those causes of defects or quality problems which are

    temporary and occur due to mistakes of workers, sudden accidents, unexpected

    machine breakdowns and power failure etc.

    For example in a Textile industry during the dyeing of the fabric, where continuous

    solution tanks are being made/used and suddenly the color of the fabric goes out of

    the customer specifications due to mistake of the color making worker in weighing

    the color un-accurately, mixing more water, increasing heat of burners or any other

    unexpected human error etc.

    Also in almost all manufacturing industries transportation of goods is kept in sight

    with priority and if the output of each machine exceeds or any worker keep them in

    the way of others or its own machine transportation way, then this may cause

    hindrance in transportation of raw material when its needed and may cause machine

    stoppage.

    Machine stoppage can also be caused due to sudden power failure and any poor

    maintenance problems and this machine stoppage also causes defects or defective

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    products, like defective bottles in bottle industry, burnt fabric in textile industry or

    any other defect which doesnt lie under customer specifications.

    2.2 SPECIAL CAUSES

    Special causes of poor quality are termed as permanent and repeating problems in

    manufacturing of the product.

    These special causes are those problems which come during manufacturing due to

    mistakes of management and strategic team.

    These include mistakes in plant layout, machines setting, selection of process route

    etc.

    For example a product can be manufactured within the specifications by 4 machines

    but management included 5 machines in the process route and due to this product

    faces more % of defective problems on the 5 th machine.

    Or in plant layout, management doesnt realize the future transportation and working

    space required then workers and products will always face problems and will not be

    able to give required efficiency.

    But special causes are not easily detectable because of less focus of workers on these

    management responsibilities and they will always try to solve the problems on their

    hand and will not be able to highlight the problems if first common causes are not

    solved completely.

    Special causes can accidently be highlighted or can only be detected once the

    common causes are solved.

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    2.3 REMOVAL OF COMMON AND SPECIAL CAUSES OF POOR QUALITY

    Common causes are mostly termed as more easily detectable and are temporary so

    doesnt repeat always.

    These common causes can be detected by using Fish Bone Diagram or Ishikawa

    diagram and statistical process control system as given in below.

    2.4 FISH BONE DIAGRAM

    Fishbone diagram was originated by Kaoru Ishikawa and because of this it is also

    known as Ishikawa diagram.

    This diagram is also known as Cause and effect diagram because this diagram is

    used to find out the real causes which lead to one single effect or the problem.

    Kaoru Ishikawa is also known as one of founder of modern management and he also

    pioneered the quality management process for the Kawasaki shipyard.

    In Cause and effect or fishbone diagram causes are arranged in terms of their level or

    significance with the problem. This will help to find out the route causes to identify

    that where basically problem occurs.

    Causes and effects are mainly arranged and viewed from four main perspectives i.e.

    Men, Machines, Materials and Methods for manufacturing sector while for

    administration and services sector the four main views are Equipments, People,

    Policies and Procedures.

    Here one thing is very important to consider that fishbone diagram is mainly used to

    solve the common causes first in order to enhance the special causes of problems.

    As Yunus Textile Mills is facing problems of Products defects, Recalls, Wastage and

    Frequent machine break downs so using fishbone diagram we will try to address how

    to apply this diagram to find out the main route causes which help to solve them.

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    As we are bound by words limit so we will discuss only one problem and will assume

    the same method of using fishbone diagram for the other problems.

    As we have already discussed that the problem of defective goods or quality problems

    can be caused by workers, machines, materials and process routes or methods.

    Looking more precisely details of these causes of quality problems are as given in the

    following figure.

    Source: Self Made

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    3.0 WESTAGE AND PRODUCT RECALLS

    Organizations are being given some standards or specifications by the customers and

    they are kept responsible to those specifications.

    In a practical situation achievement of 100% results are found to be not possible and

    therefore customers give them some limits within which products are required.

    These limits are known as Upper specification limit (USL) and lower specification

    limit (LSL) as given in the following figure.

    Source: Self Made

    In this diagram the products lie exactly on the required line are the standard quality

    products and the products within the USL and LSL are also acceptable products by

    the customer.

    Those products which are not in between the USL and LSL are rejected and are

    termed as wastage or defective products.

    Defective products cause the product recalls or in other words are un-standardized

    products which will be rejected by the customer.

    To control this problem organizations apply the Standard Process Control Method

    to be more customer focused and to produce quality products.

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    3.1 STANDARD PROCESS CONTROL METHOD

    Before application and control of the standard process control method organizations

    always apply Process Capability Analysis in which different indices like Cp, Kp

    and Takuchi index are used to analyze that our process is able to meet the customer

    requirements or not.

    In standard process control method organization set its target and own limits of the

    production which are always kept less than the specification limits given by the

    customer.

    These limits are known as upper control limit (UCL) and lower control limit (LCL)

    and are followed by the normal distribution curve to analyze that how much the

    production is near to the target level.

    For example for textile fabric dyeing color description is given by the customer to

    keep Chroma or hue at 1.0 and the process control limits are set at 0.2 then the

    process control curve will be made as below.

    Source: Self Made

    In this SPC method organizations are required to analyze the production and contract

    the normal distribution curve.

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    The products are analyzed by sampling and if products lie outside the control limits

    the causes of problem or defects are analyzed and removed.

    This process of again and again analyzing and solving the problems runs continuously

    to contract the normal distribution curve as much as possible towards the target level.

    While another solution for all these problems is the application of Lean manufacturing

    system, as given below;

    3.2 LEAN MANUFACTURING

    Lean Manufacturing technique was basically derived from the Toyota production

    strategies which are very well known as Toyotaism.

    Lean is basically combination of different manufacturing techniques leads to the

    reduced production cycle with production based on customer and consumer focused.

    Or in simple words we can say Lean manufacturing refers to creation more values

    with less effort.

    Mainly Lean manufacturing techniques yield three main perspectives;

    a) Flexible or Responsive Production Environment

    b) Capability of Rapid or emergent Improvement

    c) Careful Application of Resources

    To achieve these three main targets of Lean manufacturing Toyota refers the

    implementation of some very important strategies as given under each section of the

    targeted achievements.

    These recommended strategies can be highlighted as in the following diagram.

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    Source: http://www.buker.com/lean-manufacturing-education.htm

    To achieve these strategies, organization not only require focus on the tangible

    resources but also on the intangible resources like expertise and culture of the

    employees and organization.

    Lean manufacturing technique as we described is careful usage of resources which

    can be seen from the Lean perspective of achieving the following targets/results.

    Source: http://www.buker.com/lean-manufacturing-education.htm

    http://www.buker.com/lean-manufacturing-education.htmhttp://www.buker.com/lean-manufacturing-education.htmhttp://www.buker.com/lean-manufacturing-education.htmhttp://www.buker.com/lean-manufacturing-education.htmhttp://www.buker.com/lean-manufacturing-education.htmhttp://www.buker.com/lean-manufacturing-education.htm
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    4.0 INVENTORY MANAGEMENT SYSTEM

    Inventory of any organization includes the Raw materials, Work in progress (Goods

    in process and finished goods.

    According to Microsoft Corporation (2007) Tighten inventory management

    processes increases operational efficiency across your business improves customer

    service and reduce inventory and distribution costs with inventory management.

    The storage of inventories is like holding your financial resources and keeping costly

    goods with the industry and organizations always try to reduce the inventories to use

    that excess of money for the development, efficiency and production of more goods

    which helps to increase organization profits.

    The inventory management system is always kept in sight and is controlled to reduce

    purchasing costs, visibility of inventories, reduce time frame and in overall improve

    customer satisfaction.

    Inventory management system is used to reduce the inventories to its minimal

    required level and for this, companies set some levels for the inventories as given in

    following figure.

    Source: Self Made

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    These upper and lower indication levels, minimal and maximal levels are basically set

    to analyze critically the stock and to take corrective actions when the inventories goes

    up or down the limits.

    Mostly these levels and requirement levels are being analyzed critically with different

    software and programs used in the industries and these software are directly linked

    with the data of input and output of any inventory within or out of the system.

    In inventory management system some factors are very important and are always kept

    in sight to have the better efficiency of inventory management system as given below.

    Source: Self Made

    4.1 CURRENT INVENTORY MANAGEMENT SYSTEM

    Yunus Textile Mills as is operating in Karachi Pakistan where the prices of land were

    very much less in 1999 and company was built on about 4 acres or about 174500 Sq

    foot. This company has its one weaving unit with about 700 weaving machines, two

    huge stitching units and one processing unit with all the wet processing departments.

    The dyeing department is one SBU of processing department and its raw material

    comes from Bleaching department as well from the main stores.

    a) RAW MATERIALS STORAGE

    The main stores are very huge and have are on about fourth part of the whole industry

    which have storage of raw materials for weaving and processing departments while

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    the finished goods are always tried to send to customer from Folding departments of

    processing and weaving.

    These huge stores contain raw materials of almost all qualities of fabric and the

    fabrics are being forwarded to weaving and processing according to requirements.

    But as the suppliers of the company are its own sister companies, so company is using

    MRP (Materials requirement planning) system for raw materials but dont have any

    computerized system to analyze properly.

    Where Materials requirement planning (MRP) system schedules and requires raw

    material inventory with reference of its sales. In this the materials are kept on certain

    levels and as the level decreases the level is again maintained.

    b) WORK IN PROGRESS

    The fabric in progress is always kept on huge batchers (Rollers) within the department

    and its management is under the respective departments.

    These batchers follow the kanban system and different colored cards are fixed for

    each department.

    The fabric flows from first to last department and is sent to the customers after

    folding.

    The fabric of dyeing department comes from the bleaching department and is

    processed under the dyeing team custody.

    Here one thing is must to be kept in sight that the marketing and planning department

    schedules the fabric six months before its production and if the production is done

    after one month, the fabric remains in the processing department for more five months

    until its shipment which causes lot of problem for workers in transportation etc.

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    Fabric property is that always its strength loses and many of the impurities add to the

    fabric within these five months as well the cotton fabric is made of Cellulose and is

    very much affected by the bacteria which results poor quality of finished goods.

    c) FINISHED GOODS

    The finished goods of the dyeing department as we discussed that are kept within the

    department until their shipment.

    Also due to very long working capital cycle department faces lot of capacity

    problems.

    Mostly the fabric is being processed within dyeing department takes about 6 to 8

    hours or may increase if the order is of more than 25000 meters.

    But dyeing department relies on the marketing department and waits for their orders

    to take fabric on machines and process it and the same is for all departments.

    4.2 PROPOSED INVENTORY MANAGEMENT SYSTEM

    Yunus Textile Mills as a very huge industry have lot of technology, financial and

    operational resources.

    But as we discussed that in fabric industry different quality of fabrics are used and

    orders bases on the quality like the count (Width) of thread, Number of threads in

    warp (Length) and Weft (Width) of fabric. These qualities vary from customer to

    customer and order to order.

    Organizations can even connect the sister company suppliers to supply the fabric to

    the departments just in time when it is needed but as the order quantity is so high so

    mostly it faces such problems.

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    4.3 JUST IN TIME SYSTEM (JIT) METHOD

    Just in time production system was basically produced by the Toyota production

    system (TPS) or Toyotaism.

    This system was well implemented in many Japanese industries in 1970s while

    American industries started to implement this system in 1980s.

    Just in time production is also very well known as stockless production where every

    raw material and work in progress is available when it is needed without buying the

    raw material and without storing the work in progress and finished goods.

    The raw material are asked and planned to be on entrance of the machines when they

    are needed and once they are out from one machine becomes raw material of next

    machine and when are out from last machine are sent to the customer.

    Mainly the JIT system includes following key elements.

    Source: Self Made

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    5.0 FLOW OF MATERIALS, PRODUCTS AND PEOPLE WITHIN THE

    PLANT

    People, materials, machines etc are the basic inputs of the industry to produce the

    quality products.

    These inputs are always tried to move freely within the plant and around their

    working place in order to freely transport the inputs and outputs.

    This planning of the flow of all inputs and outputs comes in overall terms of

    Capacity planning of manufacturing system.

    All of the world Giants like Toyota, Motorola, Nokia, Microsoft and many other

    companies and practical experiences have always emphasized on the capacity

    planning or the free flow of inputs (Materials, people etc) and outputs (Products)

    within the manufacturing plant.

    This planning of capacity and flow doesnt only refer to the easiness of flow of inputs

    and outputs but also is to use company land more effectively to reduce the input costs,

    improve the efficiency of other inputs and to avoid the future problems like

    transportation problems etc.

    The foundation of estimating long term capacity needs is forecasts of demand,

    productivity, competition, and technology changes that extend well into the future

    (Lee J. Krajewski et al)

    Capacity planning and its results lead to the Layout of the industry which may have

    two diverse effects on the production and operations system.

    These effects can be positive when layout is perfect to the requirement and future

    planning and may also have negative effects while is planned in excess or less than

    the requirement of machines setting, flow of inputs and outputs and materials

    temporary storage.

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    Yunus Textile Mills have five major departments of Bleaching, Dyeing, Printing,

    Finishing, and Folding within the production plant.

    While overall plant layout of the production department includes the Electricity

    manufacturing plant, Boiler plant, Air compressing unit, Caustic recovery plant, Dyes

    and chemicals store, R & D and testing Laboratory, Offices unit, Engraving unit for

    printing, CAD unit, electric and mechanical maintenance unit and raw fabric batching

    department on whole.

    i) Problems Due to Planning of Production

    Company is storing the finished goods and its machine outputs within the department

    which due to no any one go operation and large lot sizes is in very large quantity.

    This creates a very compact situation for the workers to transport the raw materials

    and even machine outputs.

    This output of one machine and finished goods always wait for the marketing and

    planning decisions and the orders are not processed sequence wise, which results lot

    of fabric in the production department.

    The output of one machine waits for space on next machine while finished goods wait

    for space in folding department or customer orders.

    ii) Problems Due to Large Lot Size

    The lot size of the production are not set at any level and due to this small sizes have

    to wait for large lot sizes which also results time frame mistakes for some lots.

    Some lots are termed as very much necessary due to carelessness and at the time of

    shipment the lot going on in production is stopped and the shipment lot is processed

    in urgency which also cause lot of large size lots in the department.

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    This causes no extra space for storage in the department and workers face problems to

    flow the material and even some time a person can not move from one way and he has

    to take another way.

    iii)Layout of Production Department

    The layout of production system was installed on the time of company building for

    about 20 lack meters per month production of dyeing department but now production

    is increased by 25 to 30 lack meters of overall production.

    This also causes a lot of problems in flow of materials like workers can not store any

    small quantity of raw materials on machines, production of each machine is asked

    20% more than planned and operators has to run the machines on more speed.

    This causes lesser time frame for the workers to arrange the entry and exit batchers,

    chemicals and setting the machines parameters which also cause mistakes and

    sometimes stoppages in the machine production.

    5.1 SOLUTION OF PROBLEMS IN FLOW

    To overcome the above main problems of Yunus textile mills in flow of materials,

    products and people, Company can go for following two main solutions.

    5.1.1 PLANNING OF SMALL AND ONE GO LOTS

    Company requirements in this condition of planning large lot sizes cause a lot of

    problems as we have discussed before.

    Company can go for small lot size planning which will solve major of these problems

    like stoppage of small lot sizes in any urgency will not cause much fabric in the

    department, workers will be able to store some common raw materials on the machine

    and will be able to give more production and less wastage.

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    The repairs of small lot size is more easy than the large one and also the workers will

    be more focused on the productions and problems remedy rather than on flowing raw

    materials.

    Also one go operations planning or in other words planning of lots once the first lots

    are processed is more effective way to overcome these flow problems.

    5.1.2 INCREASING PLANT LAYOUT

    The layout of the company is in good condition is in smooth form so it is not needed

    to change the layout but as we have seen that the production and orders are increased

    by 20% so it is more feasible for the Yunus textile mills to install more machines.

    But as until now customers are satisfied and giving the order continuously with an

    acceptable feed back for this organization according to its corporate strategies, so

    even if company is not installing the machines for long term goals achievement then

    even company must build a finished goods products outside the production

    department.

    This building of new finished good products outside the production department will

    also result reduction in problems of flow of materials, products and people within the

    department and improve the efficiency of workers and products as a whole.

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    6.0 CONCLUSION

    Managing operations and its related departments is a very critical and sensitive task

    and to implement the strategies for its correction is more risky and sensitive.

    Organizations always try to implement new strategies in very much critical situations

    or when their outputs dont reply the same strength and efficiency of their inputs.

    An operations manager is kept responsible for all these operations but basically all the

    departments and its managers and employees lie under same responsibility.

    To achieve this mutual understanding and collective working environment

    organizations are going for information and knowledge management systems and

    same our industry i.e. Yunus Textile Mills is thinking to do.

    But basically the compatibility of operation strategies and employees response is very

    important.

    Yunus textile Mills have still not implemented any information system but soon its

    going to do but there are many barriers for the information system i.e. its incompatible

    operations strategies and that we have analyzed above.

    Company is facing the quality problems, product defects, wastage, product recalls and

    many other unidentified problems but company is trying to increase its order quantity

    rather than satisfying the customer and thinking about the long term goals

    achievement.

    Company can implement fishbone diagram to analyze the main causes of quality

    problems and can reduce the problems from common to special causes of these

    problems.

    Every American industry is looking for statistical data to solve the problem but due to

    less caliber of workforce, Yunus textile mills still dont have thought to set its own

    control limits to be more customer oriented rather than basing on customer

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    specifications only and for this company can use SPC method to continuously reduce

    its wastage, machine breakdowns and many other quality problems.

    Due to raw materials supply by the sister companies Yunus Textile Mills is still based

    on MRP method which is not a nice choice for a textile industry as we discussed

    before and company must can go for JIT system to reduce its inventory costs and

    improving the efficiency of raw materials.

    Company has layout in which flow of materials is good but due to less sequence of

    machines, large lot sizes, no any one go operation for single lot company is still

    having problems in transportation of goods because of storage of lot of machines

    outputs and finished goods.

    Therefore on long term basis company can change its layout and offer one go

    production of lots respectively which will result in better efficiency and customer

    satisfaction.

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    7.0 REFERENCES

    1. www.microsoft.com/dynamics/nav , Inventory management in Microsoft

    Dynamics NAV, Microsoft Corporation, 2007.

    2. Johnson, G and Scholes, K (2008), Exploring Corporate Strategy: Text and

    Cases, 8th Edition: Prentice Hall.

    3. Alwan, L. C and D. Radson (1995), Implementation issues of time-series based

    statistical process control, Production and Operations Management.

    4. Ridley, D and D. Duke (2000), "Statistical Process Control: an mws model,"

    Refereed Proceedings of the Industrial, Engineering & Management Systems

    conference, Cocoa Beach, Fl., U.S.A.

    5. Heizer, J and Render, B (2007), Operations Management, 9th Edition: Prentice

    Hall.

    6. Krajewski, L. J and Ritzman, L. P (1990), Operations Management: Strategy and

    Analysis, 2nd Edition: Ohio State University.

    7. Schroeder, R (2008), Operations Management: Contemporary Concepts and

    Cases, 4th Edition: Mc Graw Hill.

    8. Nahmias, S (2009), Production and Operations Analysis, 6th Edition: Mc Graw

    Hill.

    9. Dwyer, R. and Tanner, J (2009), Business Marketing: Connecting Strategy

    Relationship and Learning, 4th Edition: Mc Graw Hill.

    http://www.microsoft.com/dynamics/navhttp://www.microsoft.com/dynamics/nav
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    10.Nahmias, S (2009), Production and Operations Analysis, 6th Edition: Mc Graw

    Hill.

    11.Slack, N. and Lewis, M. A (2003), Operations Management: Critical Perspectives

    on Business and Management: Routledge.

    12.Finch, J. B (2008), Operations Now: Supply Chain Profitability and Performance,

    3rd Edition: Mc Graw Hill

    13.Carnall, C (2007), Managing Change in Organizations, 5th Edition: Pearson

    Education

    14.Nottingham Trent University (2005), Managing Operations Strategically: 1st

    Edition: WEC Copyright.


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