Achieving High Operation Management Results - Essay Example

OPERATION MANAGEMENT EXECUTIVE SUMMARY As the factor manager, I share in your concern to achieve high operation management results, aimed at ensuring efficiency and effectiveness. As you may well know, efficiency can only be realised if the company uses fewer resources to achieve higher outcomes (Taylor, 2011). At the same time, effectiveness will be realised if the company is able to meet the specifications and needs of its core customers (Shewhart, 2011). But to achieve any of these two, it is important to identify the critical issues faced by the company, which could very well become challenges if not given the right interventions. Reading through your memo, I find three major issues that need to be addressed in this report. These issues are: i. The length of pea growing season ii. Achieving higher pea processing operations iii. Lessening the pressure on the factory These issues are certainly important and critical as they focus on efficiency and effectiveness for the larger company. However, these issues cannot be adequately addressed if the current state of the company is not reconsidered for the fact that there is high level of inefficiency in the company due to excessive downtime rates and fewer numbers of freezers available. The issues of downtime rates and number of freezers ought to be addressed as an option of extending pea planting season will lead to increase in volume of raw pea, which would mean more capacity space. REPORT Proposed Change From the identified issues above, the company is currently considering a proposed change, which has to do with the extension of the pea growing. Generally, the proposed extension of growing period from 36 to 44 will bring about increased volume of raw pea and an extended harvesting season (Damerow, 2014), which is perceived to lessen pressure on the factory. When there is increase in the volume of raw pea, the production turnover of the company will also increase. The major question that should come up should however be whether or not the current state of the company is in a position to handing such expansion and increases. In the following section of the report, the proposed change of extending the growing period from 36 days to 44 days will be analysed as relates to Pendle Pea. Effect of Current State of the Company on Proposed Expansion With the above points made, it is important to consider the current state of the company in relation to how well any of these three issues fit into the current state of affairs. It is after the effect of the three issues on the current state of the company has been established that the best way forward for each of them can be adequately suggested. Nominal Capacity of Freezers As depicted in appendix I, the nominal capacity of three freezers available, there is the indication that the nominal capacities are not in a position to expand unless new freezers are installed. This is because as age catches up with the freezers, the capacities would have to be reduced as it has happened in the case of freezer 2. The effect of this on the proposed extension is that there will be pressure on the existing freezers, unless new freezers are procured. Typical Hygiene Cycle Schedules Appendix II shows that there is only one day that there is no defrosting of any freezer due to planned hygiene schedules. Meanwhile, these planned hygiene schedules cost the company a total of 82.30 in 2013 alone as seen in appendix III. Once there is increase in raw pea due to extension in growing season, the routine hygiene checks would have to increase, which would mean more hours lost. Downtime levels From appendix III, there are as many as six factors that cause downtimes in the company. This is a serious condition that impacts on efficiency. This is because time is one of the most valuable resources in any operation management scenario, which can easily be quantified into fiscal revenues (Taft, 2002). What is more disturbing is that unplanned downtimes are the highest time consumption factors within the company. This means that there are very high levels of uncertainty within the company. What is more, waiting time for products also account as the second highest time downtime factor. The implication of these situations on increase in raw peas due to extension in growing season is that even though extending growing season will lesson pressure as it happened in 2012 when the harvesting period was 65, there would also have to be more waiting time for products, which means more downtime for waiting. Meanwhile, time is a valuable resource, which affects efficiency highly once it is lost (Taft, 2002). Another implication is that increase in volume of raw peas would mean more engineering work, more planned hygiene, possible increases in unplanned downtime, and possible increase in production problems. Actual and Planned intake of pea From appendix IV, it will be noticed that the company has not done so well in meeting its planned intake of peas. The implication of this is that an increase in volume of pea production can make up for the levels that are not met even though it does not guarantee that planned times will be met. Market Demand There is a very good market demand as seen in appendix V, which implies that when supply increases through extending planting season, this will be evenly met with demand on the market. RECOMMENDATIONS Based on the considerations made above, there is one conclusion that can be drawn. The conclusion is that increase in volume of raw pea will improve effectiveness because it will lead to more supply to meet demand but will not improve efficiency as it will take many resources, including time from the company. The capacity of the company is simply not ready to handle any major increase in volume resulting from extension in pea planting season even though such an increase could benefit the company. Based on this conclusion, two recommendations are made if the company will extend pea planting season to 44 days. One of the recommendations technical and the other is operational. 1. Technically, the company needs to increase its operational capacity by bringing in more freezers and reducing downtime dues to all the six factors listed in appendix III. Once this is done, the same varities of pea can be planted within the 44 day season and harvested around the same time of maturity. But people of increase in capacity, the increase in volume can be contained. 2. Operationally, the company can opt to plan pea varieties that mature at different rates (Iannotti, 2014). This way, the harvest season will be extended for each variety to lessen factory pressure. It will also lead to increase in volume of raw pea, which will not come at the same time within the 44 days to compete for time. References Damerow G. (2014). 14 Ways to Extend Your Growing Season. [Online] Available at http://www.motherearthnews.com/organic-gardening/growing-season-zmaz94jjzraw.aspx [20th February 2014. Iannotti, M. (2014). How to Grow Garden Fresh Peas. [Online] Available at http://gardening.about.com/od/plantprofil2/p/Peas.htm [22nd February 2014] Shewhart, W. A. (2011). Economic control of quality of manufactured product. D. Van Nostrand Company: New York. Taft, E. W. (2002). "The most economical production lot." Iron Age Vol. 101 No.18: pp. 242-453 Taylor, F. W. (2011). The Principles of Scientific Management. Harper & Brothers: New York. Appendices Appendix I Nominal capacity of the three freezers Freezer number Tonnes/hr 1 10 2 7.5* 3 10 Total 27.5 * No. 2 revised from 10 to 7.5 because of age (19 years) Appendix II Typical "hygiene" cycle schedule Day Freezers defrosted 1 3 and 2 2 Nil 3 1 and 2 4 3 5 2 6 1 Appendix III 2013 actual recorded downtime (Total for cleaning and blanching lines) Downtime Hours lost Engineering 83.59 WFP (waiting for product) 125.97 Production problems 39.97 Total unplanned downtime 249.53 Planned hygiene 82.30 Total recorded downtime 331.83 Appendix IV 2013 actual and planned intake of peas in dirty tonnes Date Actual Planned 28-Jun 52 52 29-Jun 35 30 30-Jun 160 186 01-Jul 286 363 02-Jul 379 420 03-Jul 450 413 04-Jul 557 552 05-Jul 621 579 06-Jul 619 630 07-Jul 593 627 08-Jul 569 570 09-Jul 534 554 10-Jul 493 543 11-Jul 470 486 12-Jul 499 501 13-Jul 558 554 14-Jul 555 507 15-Jul 541 569 16-Jul 564 525 17-Jul 610 600 18-Jul 594 605 19-Jul 537 609 20-Jul 453 519 21-Jul 415 482 22-Jul 412 428 23-Jul 359 360 24-Jul 300 498 25-Jul 353 356 26-Jul 449 453 27-Jul 527 441 28-Jul 559 516 29-Jul 510 560 30-Jul 477 526 31-Jul 471 528 01-Aug 530 544 02-Aug 587 602 03-Aug 598 679 04-Aug 523 620 05-Aug 414 420 06-Aug 283 390 07-Aug 172 256 08-Aug 108 97 09-Aug 57 110 10-Aug 11 31 Total 18844 19892 Appendix V Total Market Demand - 2013 UK Demand for frozen peas (000 tonnes) Month 000s tonnes January 17.05 February 18.70 March 17.05 April 17.60 May 16.50 June 17.60 July 15.95 August 13.20 September 14.30 October 13.20 November 16.17 December 16.50 Total 193.82 2013 Production Pea output in frozen tonnes Read More