Operation Analysis of Shipper Manufacturing Company - Research Paper Example

? Analysis on an Operation Operation Analysis Operation management can be referred to as the design, execution and control of various operations that change resources into finished products, as desired goods and services and further implement the business strategy of the company. Operation management mainly deals with the management and design of products, the services, processes and supply chains. Additionally, it considers the acquisition, utilization and development of resources that the firm requires to produce high quality goods and services that magnetize the consumers. The activities of the operation management mainly range from the strategic, tactical to operational levels. Tactical issues involve the layout of the plant and structure, the selection of equipment and replacement, and the methods of the project management. On the other hand, the operational issues involves the handling of traffic and materials, the equipment maintenance, the quality inspection and control, the inventory management and production scheduling and control. Operation management therefore focuses on the effectiveness and efficiency of the processes. The nature in which it is carried out in an organization depends on the nature of the products or services in the company such as wholesale, retail or manufacture. Shipper manufacturing company has various operational processes that enable efficient production of its products. The operation process entails the type of product or product design, the product process flow, management of quality, supply chain management, project management or operation scheduling, forecasting and the inventory management. Good management of the operation processes contributes to the well performance of the company. It also helps the company to maintain its production supply and increases The Company’s development as a whole. The Company overview The background information Shipper manufacturing company was established in 1960’s. The company mainly focuses in the production of various products including, electronics, circuit boards, specialty products and plastic materials. It is divided into three main divisions in which each division has its different manufacturing products. The divisions include the material division (MD), Electrical Products Division (EPD), and the Advanced Product Division (APD). These divisions are located in Faribault. Minnesota. The company holds a good position in sales because of the high efficiency levels. In addition, the company has improved growth and is in a good position on productivity. Analysis of the product and product design Shipper manufacturing company manufactures various products. Some of the products manufactured include electrical products, laminated materials and specialty products. Advanced product division (APD), is a division in the company that manufactures the specialty products. Initially, APD manufactured custom products in very low volumes for the consumers. The consumers got very little products that could not satisfy their desires. However, the division plans to increase the volume of production for the multiple customers.  The company therefore would require increasing its operational management in order to maintain its competition in the new environment. APD produces specialty products mainly for the custom orders such as helicopter blade liners, and mine stoppers. In addition, shipper manufacturing company produces many aerostats per year which are sold to different communication companies. Furthermore, they are also sold to some foreign countries and the U.S. government mainly for communication purposes. The operation process flow analysis The production flow involves the movement of various items through the production process.  The flow structure or the process flow used in production purposes has various impacts on the operation layout, technological decisions, recourses and the methods used in doing the work. The process flow is a very important aspect in Shipper manufacturing company because it helps the firm’s strategy in building a competitive advantage. The flow is range of various sequences or processes that are carried out in the company in order to produce high quality products. Each division in Shipper manufacturing company has its own sequence of process flow. This enables the Company to produce various products of high quality in its divisions. Quality management Shipper manufacturing company maintains the quality standards they are popular for. The quality management actually helps the company to provide a distinct competence. The quality management in the company is an order qualifier supporting the winner of cost. In addition, it can help in positioning the products in the department of Advanced Product Division as a very strong competitor in the projected market (Tracy & Knight, 2008). Quality management is very crucial to the effective management of operations in Shipper. This is because it contributes in the continuous improvement of products in the company. The various quality managements exercised include benchmarking and total quality management. These management practices result in advancement of the operations management department. Additionally, the management of quality in the company helps in the production of high quality products. In order for the company’s divisions to shift from low volume of production to high production levels and continuous production, it intends to adopt new operational objectives with respect to quality, cost, delivery and flexibility. Supply chain management The supply chain management mainly includes activities such as supply management and demand management, manufacturing and assembling, sourcing for raw materials and parts, the entry of order and order management, managing distribution across all channels, warehousing and inventory tracking and the delivery of products to customers. In the company, all the activities in supply chain management are carried out in order to maintain high quality in the manufacturing process. Basically, supply chain management involves the co-ordination, integration, and collaboration across various organizations throughout the chain. In addition, it helps the company to achieve the cost and value advantage. Therefore, the company considers the supply chain and its management in order to improve in its performance. Moreover, the supply chain management leads to a better performance in the supply chain as a whole. Operation management or project management Shipper manufacturing company carries out various operations in management of the company. It has various ways of attracting consumers by manufacturing what they actually desire. They attract the consumers’ attention by exercising both external and internal operational maintenance in order produce what the customers require and expect. The company does this to satisfy the customers (Pilkington, & Fitzgerald 2006). In addition, it has a vertical organization and is intending to introduce the horizontal organization in order to adapt quickly to the ever-changing demands of the customers and to quickly react to the changes in order to maintain the production levels in the competitive environment. The company’s practice management control and coordination function helps in a wide range of activities. These activities help the company to ensure that its goals are met in an efficient and effective manner. They also enable the company to increase its manufacturing processes in order to improve on its performance. The inventory management In the inventory management, the company does all the activities possible in the right manner in order to manage its performance flow. The company tries to manage its production by increasing the volume so that the products would eventually satisfy all the customers or for the customers to get all of the products they require easily. In addition, the company manages its costs of production so as to ensure that consumers get their requirement at affordable costs. Further more, the company is in the process of manufacturing new products of different kinds that the customers require (Gro?ler, Thun, & Milling 2008). Various innovative methods help the company to save the costs and move the products and numerous services to the customers in a faster way. Forecasting Hayes (2002) asserts that forecasting may be considered as a historic data that helps to determine the possible ways of the future trends. Shipper manufacturing company uses forecasting in order to determine the ways of allocating their budgets for the upcoming period of time. This is normally based on the demand for both the services and goods compared to the cost of producing them. The company’s investors use forecasting to determine whether the events affecting the company, such as expectation of sales may increase or decrease the share price in the company. Moreover, it also provides important benchmark for the divisions that have long term operations. Forecasting therefore helps the company to effectively plan for its future manufacturing trends for high quality production of both goods and services. The SWOT analysis The SWOT analysis is a very important element in most organizations. It is very important because it helps an organization in understanding and making decisions for various situations in the industry. SWOT is an acronym that that stands for the Strength, Weakness, Opportunity and Threats. The SWOT analysis mainly includes the internal and external analysis in the organization. Furthermore, it helps to provide helpful information that enables the firm to match its resources and capabilities in a competitive environment in which it operates. It is therefore an instrument for selection and formulation of the firm’s strategies. Strengths Shipper manufacturing company has various strengths that enable it to maintain its performances. The firm’s strengths are actually the resources and capabilities that can be utilized as a basis in order to develop a competitive advantage. Shipper Company responds to the requirements of an individual customer in order to satisfy their needs. In addition, the company tailors new products to the unique customers’ applications. The company also manages the costs in the system in order for the customers to be retained. Moreover, the company produces high quality products that satisfy’s the customer’s desire. Weaknesses Weaknesses are factors that are in the control management that try to hinder the performance of the business. The weaknesses include the lack of experts in the company, lack of access to skills or technology, poor location of the business, inferior service offerings and limited resources (Boudreau et al 2003). These factors should be controlled by the company in order to improve in the marketing objectives. Weaknesses capture various negative aspects in the internal analysis of the business and may cause several disadvantages and loss to the firm. Shipper Manufacturing Company has a manual system in the processes that adds human element which may lead to inefficiency by causing delays in the activities of production due to negligence or operator related errors. In addition, some individuals in the company created a manual system of keeping records and the plans for production which are not transparent, the records also have no personal backups incase of an emergency. Some divisions in the company produce low volumes of products thus do not satisfy the customers’ needs. Opportunity The opportunities are external analysis that helps the company to discover various ways of generating profit and encouraging growth. The company has a vision of improving its activities in order to become one of the leading manufacturers. It also intends to discover various technologies that would actually improve the manufacturing processes in the firm and enable it maintain its performances. The company further has several co-ordinations with other companies that would help it in its improvements. Threats The various changes in the external environment present various threats to the company. For instance, the company is threatened by continuous changes in customers’ demands. The ever changing products that may substitute the firm’s production also seem to be a threat to the company. Moreover, there are various regulations that may be practiced in management that are not practiced in the firm. Trade barriers can also affect the company in several ways. Conclusion In conclusion, Shipper manufacturing company has various operations that actually help it to maintain good performance in all the processes. The company intends to introduce new ways of management in order to improve in its quality production. It produces various products in order to satisfy the customers’ needs. Furthermore, the company introduces new technological ways of carrying out various activities in order to improve the products management and production. Various operations carried out in the company enables it to stand in a firm position in the competitive market. The operation management actually focuses on the efficiency and effectiveness of the processes in the firm. References Boudreau, J., Hopp, W., McClain, J., & Thomas, L. (2003). On the interface between operations and human resources management. Manufacturing & Service Operations Management, 5(3), 179 Gro?ler, A., Thun, J., & Milling, P. (2008). System dynamics as a structural theory in operations management. Production and Operations Management, 17(3), 373-384 Hayes, R. (2002). Challenges posed to operations management by the "new economy". Production and Operations Management, 11(1), 21-32 Pilkington, A., & Fitzgerald, R. (2006). Operations management themes, concepts and relationships: A forward retrospective of IJOPM. International Journal of Operations & Production Management, 26(11), 1255-1275. Tracy, D., & Knight, J. (2008). Lean operations management: Identifying and bridging the gap between theory and practice. Journal of American Academy of Business, Cambridge, 12(2), 8-14. Read More