Input-Transformation and Output at C20 - Assignment Example

Operations Analysis Report on Twentieth Century Fires Ltd Introduction Twentieth Century Fires Ltd (C20) is engaged in the sale, restoration and manufacture of period fireplaces and their associated accessories. It starts with input of raw materials and other resources, goes through a process of transformation either through the production of a pure good or pure services. Slack et al (2004) indicates that all operations are transformation processes and most operations consist of a mixture of both pure good and pure services. Input-Transformation and Output at C20 The operations process at C20 consists of a mixture of pure goods and pure services. The Input-Transformation-Output (ITO) process at C20 is illustrated in the following diagram. Figure 2 - Diagram of C20 ITO Process The diagram indicates that C20 uses labour, materials, orders from customers, moulds and glaze and original fireplaces as input. During the transformation process material is transformed into finished products. Original fireplaces are refurbished and this also involves the provision of a service. In most cases C20 operations involve the manufacture of new fireplaces for sale. The company also manufacture tiles using materials and moulds purchased from other manufacturers. C20 transforms raw material into finished goods products which are then sent to customers throughout the UK or as far away as Iran and New Zealand. Mapping of the Main Tile Process The following diagrams represent process maps for the main tile and fireplaces manufacturing processes of C20’s operation. Figure 2 The diagram indicates that the customer travels to the store and parks if a vehicle is driven. He/she moves through the store and places the order for the tile to be glazed. The sales clerk processes the order and the company orders the glaze. When the glaze arrives it is received by the stock clerk who records it and passes it to the relevant personnel in the factory where the glaze is added and the tile fired. The customer then pays for the tile and collects it. The customer leaves the building and enters the parking area where the goods are then packed in the motor vehicle and then travels home with the goods. Mapping the Fireplace Manufacturing Process The fireplace manufacturing process is two fold. In one instance the company enters the customer’s premises and removes the original fireplace. The process may either be a purchase transaction or the requisition of a service where the customer wants the fireplace to be refurbished and returned. The following diagram illustrates the process. Figure 2 The process map in Figure 2 indicates that a customer may travel to the store and order a fireplace refurbishing service. A sales clerk processes the order and takes it to the production area where a production staff receives the order and works on it. After it is refurbished the customer is advised and picks it up. In another instances a representative from C20 may visit a customer to remove a fireplace for refurbishing and replacement. It is brought in and sent to the factory for refurbishing. When the work is completed the fireplace is then transported to the customer and reinstalled. Additionally, C20 might be engaged in the purchase of an original fireplace. The company would visit the premises pay for the item, remove it and transport it to the factory where it would be refurbished. However, in this instance, or until a buyer is found the refurbished fireplace will be placed in the display area so that it can be seen by customers. The internet is a very useful part of C20’s operations. C20 is also engaged in the manufacture of fireplace. The materials to be used are bought taken to the factory, transformed into the product and then placed in the showroom until it is purchased. Supply Network Diagram A supply network diagram shows the whole supply chain network which consists of the particular firm, the supplier of raw materials and the customer. The supply network diagram shows the supply chain network in relations to C20, its customer s and suppliers. The role of all three groups are integrated in a network of activities which are beneficial to each other. The diagram in Figure 4 shows the interrelationship that exists among them. Figure 4 Operational Design Implications The implications of the design of operations at C20 indicate that the system is set up for both small jobs as well as the mass production of fireplaces. Based on the situation with the glazed tiles it is clear that customers have to wait because C20 does not manufacture tiles and in a lot of cases do not have the moulds on hand. The glaze therefore has to be bought after the job is received. This is a costly process as orders have to be placed as soon as a job is recovered. In this case there are no economies of scale to be gained as storing items my lead to inventory obsolescence. The management at C20 needs to note that because product design establishes different requirements on the ability of the company to manufacture the goods, the cost and other factors, the supply chain is therefore integral to decisions relating to product design and are therefore also affected by them Gokhan and Needy (2010). Some of the company’s goods are high volume low variability and some are low volume high variability. These will have their differing impacts. Glazing and firing tiles of different shapes and sizes is a high variability and low volume Business. The Internet has proven very beneficial to C20 and it has implications for the company’s operational design. Heizer and Render (2006) indicates that in addition to the enhancement of the communication process among organisations the Internet also facilitates the integration of traditional Internal information systems. Heizer and Render (2006) further states that the Internet has transformed the way in which businesses think about providing value for its customers, interacting with suppliers and managing its employers. The design of C02’s operations could be improved by ensuring that the lead time between orders and deliveries are minimised, designing the work area efficiently, improve the design of the layout of the factory that will enable less movements between process and also reduce the lead times between them. Operations need to be monitored in order to workers are kept o their toes. Inspection needs to be incorporated into the process in order to reduce the cost of reworking. References Gokhan, N.M and Needy, N. (2010). Development of a Simultaneous Design for Supply Chain Processes for the Optimisation of the Product Design and Supply Chain Configuration Problem. Engineering Management Journal: 22(4), p. 20 - 30. Heizer, J and Render, B. (2006). Operations Management. 8th ed. New Jersey: Pearson Prentice Slack, N., Chambers, S. and Johnston, R. (2004). Operations Management. 8th ed. London: FT Prentice Hall Read More