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Production and Operations Management: A Problem-solving and Decision-making Approach - Assignment Example

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The author examines applied operations management of Mobeen. The author also identifies the steps should be taken by the GKS bicycle prior to introducing JIT production and explains how the use of JIT production might help GKS bicycles to become more competitive.   …
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Production and Operations Management: A Problem-solving and Decision-making Approach
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Download file to see previous pages WelReduced live cooking time Batch production reduces live cooking time, which helped the Mobeen to stay focused on the company objective and meet customers’ emerging needs. Increase in customers Batch production speeds up the delivery process, which attracted more customer in the town thus resulted in an increase in the total number of customers. Greater profit Batch production allowed Mobeen to achieve a higher level of profits by achieving high quality and efficient service. Just in time production, JIT production strives for the organization to improve return on investment by producing as needed and by reducing the carrying cost of associated inventory. JIT management aims to best utilize the production capacity of an organization by purchasing the right set of raw materials, followed by producing the right quantity of products at the right time for the potential customer. The purpose of JIT management is to increase company’s performance by decreasing inventory levels, by encouraging smoother production flow in the work environment, and by lowering storage cost to a minimum; these activities will help the company to decrease cost per unit to the minimum possible level. It allows the company to reduce the number of quality rejects, capital expenditures, production time, and production of inventory to the optimum level. JIT management is an efficient concept to get the best out of efforts made; it synchronizes schedules, production, distribution, and activity of sales which allows the firm to stay focused on the objectives and achieve best possible results (Gaither, 1984). This system helps the organization to meet demand as it arises. With advantages there are also some disadvantages attached to JIT management; firstly JIT ignores the effect of various conflicting demands in the environment, organizations do not work in an isolated environment and are affected by the many external environments, therefore, JIT should understand the effect of the environment on the organization as it fails to undertake this perspective; secondly the conceptual foundation of the JIT management is as old as the concept of organization, therefore it reflects an old idea to bring a change in the current modern setting which sounds quite unconvincing for organizations to adopt; thirdly benefits resulting from JIT management is limited when it is used in any other environment except from which it originates. 2) Flow/mass production is not appropriate in this case because Mobeen concept was operating in a niche market, mass production is adopted when a company is operating in a large market and the company is targeting to diverse customers. Well, the other major reason is the nature of the product to be produced, as it is organic and perishable therefore mass production is not appropriate in the case. Mass production, in this case, could have resulted in the expiry of many products. 3) Mobeen’s aimed to achieve high levels of capacity utilization firstly allowed the restaurant to best utilize its resources which eventually resulted in the high level of efficiency and effectiveness in work processes which increased the level of profits, secondly it allowed the restaurant to stay competitive in the market.    ...Download file to see next pagesRead More
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