Key Topics
Requirement
Prepare an analysis that will identify the critical challenge or problem in the organisation, discuss the underlying root causes of the problem, prepare criteria against which to weigh alternative solutions, and present the recommendations and implementation plan.
Solution
PART - A
Transformation process
The process of transformation is an important activity that makes use of inputs i.e. materials, information and customers. All these adds the value in the process of transformation and further provide outputs for clients or say, customers. As, if there is raw material as input, then it is easy to make an involvement in the transformation process as it further transformed the milk into butter and cheese and further which helps in baking happy cookies with pure elements no additives and also no preservatives.
Operations management is a field widely known for its multi-disciplinary nature. Operations management deals with planning, organizing and supervising the process of production, manufacturing etc. Operation Management is delivery-focused and ensures that the organization turns the input into outputs successfully. The input involves materials, technology and equipment along with the staff or workers etc. Further, the inputs are transformed into valuable assets and are processed to form an output. The consumer satisfaction plays a vital role in determining the quality of the whole input-transformation-output process.
Examples of these kinds of duties are acquirement of goods, the raw material from external departments/sources, having good relations with those involved in the organization, and improving the sustainability of the company.
Considering the Input-Transformation-Output Process of an Operation system in CTY Happy Cookies Enterprise
INPUT
The input involves following criteria:
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Materials: This operation is responsible for the processing of materials that are responsible for transforming the physical characteristics, like shape or basic composition. Other operations involve change of locations which involve parcel delivery firm, or even store the raw materials like the warehouses. In the CTY happy cookies enterprise, the materials include flour, sugar, and baking powder in order to make soft cookies as all these appeals to a health-conscious segment of the market.
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Information: This operational system processes information and transforms it into informational data. Some companies store the informational in libraries etc. Companies dealing with telecommunication often find it easier to change their location. The information is provided to the enterprise by the market research companies so that they assist them in designing of product and the delivery.
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Customer: This operation deals with transforming the physical characteristics of the customers. Examples in this operation include airlines, transportation systems, and bus and taxi companies. The physiological state of customers is also changed in hospitals, theaters etc.
There are other inputs that do the process of transformation within the organization which involve:
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Facilities – these inputs include buildings, equipment, organizational plant and the technology involved in the operation.
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Staff – includes the people operating, maintaining, planning and managing the operation (Slack, 2012).
OPERATIONS
The transformation process includes taking of the one or more inputs and transforming the inputs by adding value to them, it further provides output to the clients. If an organization handles the raw materials as inputs then it becomes easier for the organization to deal with the transformation/operations management. Thus, in simple words operations are the methods that take place with a set of input resources. These resources are then transformed and outputs are provided in the form of the products or services required by the clients (Anon, 2011).
But the transformation process is different for manufacturing organizations and the service organization. The manufacturing will transform the inputs to the tangible output products whereas the service organizations are responsible for transforming the input to the intangible product. The manufacturers make use of machinery, robots etc. for the production of output whereas the service providers' processes are more of worker-intensive and are dependent on the clients.
The operations taking place in the operation system of the CTY happy enterprise involve the soft cookies for the customers. The enterprise ensures that the good customer services are being followed in the work and all the demands of the customer have been taken care of. The transformation process in the enterprise involves that the baking team is working properly because all the important data and information is an important aspect in the making of cookies. The transformation process further includes the establishment of the systems and procedures that make the procedure of enterprise efficient and effective.
OUTPUT
The outputs are primarily defined as the resulting product of the efforts made by the organization. The products are further provided to the customers or are in a way beneficial to the clients and the customers. The services are either directly given to the customers or they are modified further so as to meet the needs of the customers. The nature of the outputs is extremely vital for the determination of the customer feedback, like if the customer is satisfied or not and also important for the maintenance of the income inside the organization. The method of production of the outputs like the efficiency in the production process which is responsible for determination of the incurred costs by the company or the firm or the extent to which the waste is produced is important factor for the profitability of the company (OpenLearn, 2012).
The main output involved in the enterprise is the delivery of sound and efficient bakery services to their customers. The ultimate goal is to achieve the satisfaction among their customers to as to increase their reputation along with the profitability. Once the product and the services demanded by the customers are provided to him in the given time period, the reputation and the profitability of the enterprise lies in the satisfaction of their clients. The customer satisfaction provides huge cost savings to the enterprise along with competitive advantage. Once the customer is satisfied with the organization, the CTY happy cookies enterprise gains over the other similar organizations and the customers are in turn benefitted by enjoying valuable offers like as cookies of 50+ varieties with no additives or preservatives.
Strategic operations decisions
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The design of goods and services: it determines the proper designing of products as it leads the low cost for designing and presents a high level of quality product.
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Managing quality: it focuses on the customer’s expectations.
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Process and capacity design: it determines the procedure and the capacity of how the products and services were committed to the management.
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Location strategy: it considers the nearness to customers, cost, infrastructure, logistics, etc.
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Layout strategy: it integrates the needs of the technology and inventory requirement.
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Human resources and job design: it determines the talent and skills covering recruitment, motivation strategies, as it is an integral part of the system (Shumateblog.files.wordpress.com, n.d.).
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Supply chain management: it shows the integration of supply chain in the strategy of firms'.
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Inventory management: it considers the optimization of customer satisfaction.
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Scheduling: in order to facilitate the personnel and the customer demands, it basically focuses on short-term schedules effectively and efficiently.
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Maintenance: it considers the production demand capacity in order to maintain a stable and also the reliable process.
As, being the operation manager, the proposals need to remove the resistances to the decisions were as to attract more of people in an activity to bring the change and also is to understand the true resistance of one’s nature. As, resistance is the creation of certain attitude which implies technical ideas (Shumateblog.files.wordpress.com, n.d.). It further should make an emphasis on the performance standard and the changes in the technological aspect.
Approaches to improve and measure the productivity of an operation
Productivity is that the quantitative relation between output and input. It’s quantitative approach between what we have a tendency to turn out and what we've spent to provide. Productivity further acts as a measurement tool in order to determine the effective ratios of both the input and the output products. It includes a variety of various factors such as equipment, machinery, technology, layouts of plants, etc. And it also possesses a two methods of measures that are measured as either a total productivity or as partial productivity. In order to keep an eye on the employees of the industry, it’s the best way to measure their level of productivity.
PARTIAL PRODUCTIVITY
In this, an output is divided by the single factor of input. It may include direct materials, labor, capital, etc. A partial productivity is a tool that measures the actual relationship between the input and the output. But, further it also related to the single factor so, this makes a disadvantage for the productivity and among the factors of inputs, it fails to demonstrate the tradeoffs.
TOTAL PRODUCTIVITY
It acts as an important aspect of economic growth. Using index number techniques, the total productivity can be estimated. It cannot be measured directly. It considered as the key competitors in the growth of economies of scale (Comin, 2006).
PART – B
Total quality management (TQM) is the tool that enhances the effectiveness and the efficiency of work in an industry. It improves the flexibility and the competitiveness of a business. TQM i.e. Total quality management is also comprised of philosophy management and the practices of company schedule which further aims to make a development in a business by also harnessing the human material in an effective way in order to achieve goals and the objectives of an organization or the business.
The total quality management needs the proper means of training by the way of professionals in all fields of management. It should be done in a proper way as to provide a clear analysis of the enterprise of cookies as it delivers the soft cookies on time to their customers. With proper way and means of the teamwork in an industry always depicts the vast scenario of being the best in the market (BALESTRACCI, 2009). Further, it also facilitates the changes in the workplace and the number of procedures via embracing the workers on a regular basis.
But, as if it is not given in the beginning of work, the proper training and education material as per the requirement of the system, then it for sure hinder in the further aspect of a business quality. Then, it also effects the desired goals of a business or the enterprise. So, without all these knowledge of work, it majorly impacted the implementation of the quality system of an enterprise.
The biggest cause of failure of Total quality management is the non-availability of proper means of a system of reviewing. In this, way it leads to a failure of total quality management with the number of reasons as due to lack of proper measures of transferring of knowledge to make it a success in the system quality of an enterprise.
So, as a management consultant, the recommendations to address the above problems is to make a proper campaign in order to deliver a fluent means of knowledge with the proper guidelines of working criteria (BALESTRACCI, 2009). It should include all the means of conducting the vast image of doing the work in future.
It should improve the quality of products, services, and processes with the aim of fulfilling the needs and wants of the customer's and their expectations which further enhance the level of satisfaction and the level of performance.
To implement a successful TQM, an organization should concentrate on these eight key elements
So, by delivering all the best qualities in order to achieve the goals and objectives of an enterprise, it should consider the successful total quality management key elements (BALESTRACCI, 2009).
NUMERICAL
a. Period 6 = (18+21+22) / 3
= 20.33
b. Period 6 = [0.5 (22) + 0.3 (21) + 0.2 (18)] / 3
= (11 + 6.3 + 3.6) / 3
= 20.9
c. The weighted moving average gives more weight to recent data which is more important as we are calculating the future data. On the other hand, simple moving average use historical data by giving equal weight to all data points which might not give proper forecasting result.
d. Scatter diagram
e. The forecasting tools employed helps the managers in understanding the future likely trends based on the historical data. If the current scenario stays the same, then it will rarely impact the future forecast. Moreover, the perception of the people depends on the personal opinion and biases, however, historical always stay unbiased towards peoples' feeling. Further, if the company or the enterprise wants or strive for more than it should consider the particular product life cycle of a product which helps in making the better forecasting. The established data and the relationships between the factors of production should cover a proper level of maturity in the market as per the requirement for the enterprise or business and hence, this product life cycle also helps in determining the more methods of forecasting in order to achieve the goals and objectives of business or enterprise effectively and efficiently (KURZAK, 2012). The basic aim of any enterprise, in order to formulate the forecasting system, is to present a clear picture of future changes in the enterprise.
There are number of various assumptions such as:
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As future is uncertain, there is always a key element that hinders the working of the business enterprise.
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There are many blind spots towards the eye of future. One, cannot forecast the technological aspect as well.
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Any policy in the present, easily effect the future element or the changes as it is uncertain.
Operation manager has to evaluate the perception of forecasting with full resources analysis in the enterprise and implement the various tools and techniques which further essential for forecasting decision-making the procedure as all these activities contribute the exact image or accuracy of this power.
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Place Your OrderProduction in Forecasting enterprises yields finding probably the foremost course of processes. When to process the foremost necessary tasks for the enterprise, the managers ought to certain steps such as follows:
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manufactured goods and services by the enterprise, that can be demanded at large.
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The market segment with the individual demand and supply.
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Economic conditions
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Changes in technology
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Competitors course of action
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Particular industry
Sometimes, the process of forecasting becomes the innovative and creative process, but they don’t. Like whenever two people make a viewpoint at the same time for the same thing so, both of them might be not true. As all knows forecasting can't be true about anything for anyone, it is uncertain in each and every way of life for an enterprise (KURZAK, 2012). Thus, forecasting should be must done in an appropriate manner with full workforce analysis on each and every mechanisms for further construction of an enterprise with the aim of understanding each viewpoint of an individual or consider the points of an individual at society level also for its development and enhancement in making a wise decision process effectively and efficiently.
References
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Anon, (2011). “Understanding Operations Managemen. [online] Available at: http://www.saylor.org/site/wp-content/uploads/2013/04/BUS300-1.1_Understanding-Operations-Management.pdf [Accessed 11 Mar. 2016].
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BALESTRACCI, D. (2009). Why Did Total Quality Management Fail? | Quality Digest. [online] Qualitydigest.com. Available at: http://www.qualitydigest.com/inside/twitter-ed/why-did-total-quality-management-fail.html [Accessed 11 Mar. 2016].
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Comin, D. (2006). Total Factor Productivity. [online] Available at: http://www.people.hbs.edu/dcomin/def.pdf [Accessed 11 Mar. 2016].
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KURZAK, L. (2012). IMPORTANCE OF FORECASTING IN ENTERPRISE MANAGEMENT. [online] Available at: http://als.zim.pcz.pl/files/IMPORTANCE-OF-FORECASTING-IN-ENTERPRISE-MANAGEMENT.pdf [Accessed 11 Mar. 2016].
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OpenLearn. (2012). Operations, technology and stakeholder value. [online] Available at: http://www.open.edu/openlearn/nature-environment/the-environment/environmental-decision-making/operations-technology-and-stakeholder-value/content-section-3.3 [Accessed 11 Mar. 2016].
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Padhi, N. (n.d.). The Eight Elements of TQM. [online] Isixsigma.com. Available at: http://www.isixsigma.com/methodology/total-quality-management-tqm/eight-elements-tqm/ [Accessed 11 Mar. 2016].
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Shumateblog.files.wordpress.com. (n.d.). [online] Available at: https://shumateblog.files.wordpress.com/2014/10/10_om_decisions.png [Accessed 11 Mar. 2016].
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Slack, N. (2012). OPERATIONS AND PROCESS MANAGEMENT Principles and practice for strategic impact. [online] Available at: http://www.gbv.de/dms/zbw/577625721.pdf [Accessed 11 Mar. 2016].
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Zakuan, N. (2012). Critical Success Factors of Total Quality Management. [online] Available at: http://www.hrmars.com/admin/pics/1341.pdf [Accessed 11 Mar. 2016].
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