Strategic Operations Management - Assignment Example

Strategic Operations Management Strategic Operations Management Answer Markets of Sherpin The general strategy is used to provide solutions to the problems through their technical expertise. The priority is to get the order at initial stage while determining the product specifications, which are required by the manufacturing process. Other demands are to move into original equipment manufacture (OEM) and spares stages. Demands are different in each market. There are four distinct markets of Sherpin as mentioned below: 1. Aerospace This market proved to be important standard technique to undertaking business. This market says that to uphold a relationship with customers is essential. When the prototypes account of total sales become less up to 5 percent, this strategy will work. On the basis of the relationship with the consumer, the company can capture new orders. This will give the ability to meet the requirement of customers and make the qualitative product. Price and delivery speed are also important factors that seem to be valuable in the stage of OEM. Prices and quick delivery are also a vital part of this market. At the stage of spares, competitive prices also have to set, and the delivery of the product must be fast and quick so to satisfy the customers. Demands of the customer can be change within the period it is essential to provide the product at the right time and reasonable price. It is also needed to focus on other sales that come during these two segments (Malaval & Bénaroy, 2002). 2. Automotive Automotive Market distribution of sales is in the way that 10 percent is covered by prototype, 60 percent by OEM and 30 percent by the spares. This market usually works in OEM stage at which the price and delivery of the product become more insightful. The aim is to decrease the cost of the product and produce within a specified time so control the inventory that is under production. This market is specialized in providing the services related to the product for quite long period. The company provides 12 weeks contracts with a material commitment for the same period. Price become less sensitive and demand become less predictable. The spare companies help in extending the relations with the customers. It will lead the product to be sold after the contracting period. Basically, this market will help to sell the product in the near future (Lipsyte, 2010). 3. Industrial Industrial sales depend 10 percent on prototype, 45 percent on OEM and rest on spares. At the stage of prototype the orders are won on the quality of giving quick response to the inquiry of the customers. The proposal must include the reasonable price in accordance with the price of the identical product in the market. At OEM stage the price of the product become more sensitive but quick delivery is not important. The production lines and place purchasing contracts are not crucial in this market. The same customer handles OEM and spares segment. These two segments should run simultaneously to meet the demand. It is not easy to provide these two segments at diverse price (Kotabe, 1992). The price of the spare volume is being focused in it. Around 20 percent of total industrial sales are covered through this approach. 4. Motor Sport This market is unusual because the needs of the consumer remain unchanged during all the segments of life cycle. On the other side it, has also a vital importance in the industry because it will provide quick, reliable and quality conformance delivery. It is difficult to respond to the customer’s requirement in a short period. Modification is possible at any stage in the production so, it is difficult to give a quick respond to customer while focusing on quick delivery (Standard & Davis, 1999). Qualifiers and Order-winners In Operation Function Commercial Commercial Department receives customer demands through contract or one-off orders and at a time feed it into computer system. Every customer has its own contract with the department and is processed. At the time of requirement work starts to process. Previous customer data is helpful to the department to contact with them for a new contract (Crowson, 2010). Operations Once orders are received then forwarded to operation department that translate customer demands, and they also feed demand for finished goods. Orders components come into forward with a time required for that process. Preferred suppliers are chosen to supply the components within 20 working days to fulfill the order within 50 working days. Printing required one day to print, and the product is to choose which have to be ready immediately (Coronado Mondragon et al., 2012). The components are stored before they are transferred to manufacturing department. Most of the orders are delayed due to the late supply of raw material. As the components are received at time, it will be helpful for the workers to provide immediate effort and achieve their target (Hill & Hill, 2012). Answer 2 Operations Supports the Need of Company Market Operation function always supports to the Company Market. As the business requirement is to provide valuable and reliable product at a reasonable time. Every customer has different contract and the time given to them for the completion of work also differ from each other (Barnes, 2008). Operation function facilitates all the consumers according to the priorities and within a specified time. Operation Function led the need of the company markets to be fulfilled. Some of its benefits are: For Aerospace • It helps in making relationships with customers. • It provides database of the previous customer to engage in another contract. • Importance in ascertaining the price. • Quick delivery is possible. • Availability of quality products. For Automotive • Decreases the cost of the product. • Specialization in the manufacturing of product. • Relationship becomes stronger with the customer. • Near future planning is possible. • Choice of the type of the product according to its delivery date. For Industrial • Quick response of the inquiry will attract customer. • More attention is paid on the manufacturing part. • Spares can provide better services to meet the demands of consumer. • Allocation of the work is done to increase productivity. • The price of spare volume seems to be focused. For the Motor Sport • Quick delivery is possible. • Quality conformance is achieved. • Modification at the stage of production. • Reliable product is obtained from it. • Relationship with customers due to delivery of product before due date. Answer 3 Essentials for the Operation Function 1. The software of the company should be customized in order to increase efficiency of allocation of orders. 2. Network should be highly flexible to support the work from design to delivery. 3. Services should be provided in proportion as that of manufacturing. 4. Maintenance management should be strong so that the finished goods are served in a better way. 5. There should be reasonable scale of production. Quite low productivity will result in high cost. 6. The product quality should meet the expectations of the customer. 7. Low price with high quality will attract customers. 8. 0% compromise on the delivery of the products as most of the products are required for particular events. 9. The machinery and other equipment need a regular test to confirm that they are working properly. 10. The feedback of customer is required in order to check the performance of operations of the Company. There should be a team required to be formed to inspect the performance and give a report to the solutions if a problem I occurred regarding the performance. The team should be appointed among the employees so that additional cost could not bear by the company. It can be done through the appointing responsible person among the employees who check the performance on daily or hourly basis. He can communicate to the operators that how much further efficiency is required to move the product to the completion process. Issues of supply chain coordination The process from purchase of raw material to the delivery of the final consumer is called supply chain. The distributors may also involve in it. The problems usually occur in the supply chain are as follows: Immediate action required The communication system generally gets weak in the supply chain because of the involvement of different entities like distributors and wholesalers. The demand of the consumer first comes to retailer then transfer to others, it take time to communicate it to the supplier. There should be a quick way to tackle the requirements of final consumer as required by the product (Wang & Yu, 2006). Out of Fashion Products If the production seems to be out of fashion, the sale immediately decreases and the goods stored by the wholesalers, distributors, and manufacturer wasted. There should be a good and proper coordination which will inform the manufacturer to stop the production slightly before the product sales starts to decrease so to eliminate the chance of wastage (Taylor, 2004). Upgrade the existing products The demand of the consumer about the additional things required in the products is communicated initially to the retailer. The information of the demand become weaker and probably it cannot reach the manufacturer or supplier. The company must have some kind of survey to know the demand of the consumer and to give quick response towards the demand of upgrading the product. List of References Barnes, D., 2008. Operations Management: An International Perspective. illustrated ed. New York: Thomson. Coronado Mondragon, A.E., Piller, F. & Poler, R., 2012. Customer-Driven Supply Chains: From Glass Pipelines to Open Innovation Networks. illustrated ed. New York: Springer Science & Business Media. Crowson, R., 2010. Factory Operations: Planning and Instructional Methods. illustrated ed. New York: CRC Press. Hill, T. & Hill, A., 2012. Essential Operations Management. New York: Palgrave Macmillan. Kotabe, M., 1992. Global Sourcing Strategy: R&D, Manufacturing, and Marketing Interfaces. illustrated ed. New York: Quorum Books. Lipsyte, R., 2010. Raiders Night. New York: HarperCollins. Malaval, P. & Bénaroy, C., 2002. Aerospace Marketing Management: Manufacturers, Oem, Airlines, Airports, Satellites, Launchers. illustrated ed. New York: Springer Science & Business Media. Standard, C. & Davis, D., 1999. Running Todays Factory: A Proven Strategy for Lean Manufacturing. New York: Society of Manufacturing Engineers. Taylor, D.A., 2004. Supply Chains: A Managers Guide. illustrated ed. New York: Addison-Wesley Professional. Wang, C. & Yu, W., 2006. Supply Chain Management: Issues in the New Era of Collaboration and Competition: Issues in the New Era of Collaboration and Competition. illustrated ed. New York: Idea Group Inc (IGI). Read More