Operation Management - External Design Chains - Case Study Example

Operation Management - External Design Chains The analysis of external design chains assists in solving various principal issues in the dynamic vicinity of networks. This is due to the challenges managers’ face having to make decisions on the installation of new products in the market, identification of project chains, project management as well as maintaining efficient intercompany communication. For instance, in the case Reltex becomes the main protagonists in the chain who gets affected by the position occupied by Globestelle subcontractors. It becomes exceptionally difficult for Reltex to get feedback on the overall automobile design from vehicle manufacturers because of its position in the chain. This is because the chain is subject to manipulation in service centers and dealer networks. Considering the nature of previous projects conducted by Reltex, the project is wholesome. This is because hundred million Euros requires along understandable and complex chain, which helps in understanding various positions occupied by stakeholders. This helps in closing up any loopholes, which might arise in the process of managing the project. In as much as the projects got complicated and required full time commitment, Globestelle showed non-commitment by contributing through part time employees Mr. Franc Warde and Joseph Zemel. In as much as human resources play a significant role in development of projects, this in my opinion was not adequate for the whole project (Brown, Blackmon, Cousins & Maylor 59). The underestimation of resources as well as non-identification of challenges led to inevitable problems since Reltex believed Globestelle was doing enough of facilitate the project. The mistakes committed by the company further caused uncertainty of resources inducing commitment of Reltex resources. This made operations at relate much difficult, as they had to hire a new sub contractor. Consequently, they had no space and time, no extra resources and delay in delivering the final product. In conclusion, understanding design networks are the key towards an operational facility. It is the role of management to understand various needs of customers, conform to them, and not complicate situations by applying systems from other companies. This helps in understanding varied systems while putting up with challenges. Well-defined strategies help in redesigning and innovating supply chains, to conform to new supply networks. Benetton group of companies for instance is a company operating internationally and has various collection mixes. Outsourcing of labour on the intensive operations of SMESs encourages external supplying for complete integration in the production cycle. In order to ensure globalization and efficient operation, Benetton has to reorganize and adopt new technologies to increase competitive advantage. Consequently, the company has to induce codification of knowledge. The prologue of e-business tools helps in forming various business strategies dividing the supply chain into portions manageable in the Benetton organization model. The strategy ensures flexibility in performance since it encourages the company to act without having to outsource and offer generalized externalization. To maintain the high pressure, which demands performance, the company can also introduce substantive architect structures. Such structures ensure direct supervision of critical processes preventing mistakes that might not appear due to non-supervision. Consequently, the step helps in vertical integration of directly controlling critical phases in the whole supply chain. The strategy employed by Benetton offer architectural knowledge in causal businesses organization whereby managers can nurture knowledge (Brown, Blackmon, Cousins & Maylor 69). This helps in configuring various shifts in the market structure for product design factor, which has delivered many companies from the problem of liquidation. The metabolism of change systematically articulates replication of the supply chain into elementary and modified systems that allow distribution of small actors. This is a strategy, which has helped many organizations and companies such as Benetton acquire externalities for stability. In conclusion, managers face challenges of administering innovative as well as connotative leadership. It is, therefore, the role of managers to create a balance between flexibility and outsourcing. This is because excess manipulation induces versatility causing failure. RAC Motoring Services Competition modifies productivity and innovation in the process of providing various services. Intensifying competition, on the other hand, can face a fall out or gain of competitive advantage. RAC Motors is a proficient automotive service supplier who is getting stiff competition from the same service providers. Despite changes in the firm to match up with demands of customers, the main challenge has erupted in the pricing where competitors keep fluctuating prices to destabilize their operations. In order to match up competitors, the company has to undertake changes in various segments. The firm, for instance, introduced cell-focused service management structure, which offers patrols. This was a substantial step; however, tight boundaries in the search criteria limit breakdown in each cell. Customers, therefore, have to wait for emergencies occurring at the same time. From my perspective, the firm has to carry out a SWOT analysis. The analysis assists in deciding and evaluating various challenges and perceived threats while exploiting available opportunities. From a labor perspective, flexibility of employees get limited by the new strategy, as patrols require urgency and consistency (Brown, Blackmon, Cousins & Maylor 81). In order to bring stability in the workforce and induce efficiency of employee’s reduction of dependence on contractors should be encouraged. This prevents time overlap due to noncompetent as well as nonreliable contractors who exploit resources from the company. It is, however, disastrous to reduce overtime expenses of employees as this reduce morale. I would also recommend modernization of technology to conform and guide smooth flow of services. In as much as the strategies employed by RAC have helped in improving its operations, it is crucial for the firm to replace its equipment to match up with competitors. This is likely to boost the consumer service index to a maximum causing a shift in income. Denby Constabulary The arrest process used by the police has attracted attention considering staffing cost as well as other overhead costs. This is due to the rising cost of police staff and administrative cost calling for an evaluation of job design. Task relocation, for instance, is a step towards establishing a job design where allocation hierarchy gets controlled by limiting discretion to constraints. Further experimentation reveal introducing new designs in terms of specialization. Consequently, the expenditure on the police remains a high considering the high number of staff the department employees. If the number of non-civilian employees in the police force is reduced, career opportunities in the police force get improved as well as civilianization. On the other hand, using civilians to manage the police departments is also another step as it is like to bring the many reforms people desire. Using accountants for instance will devise various ways of minimizing costs while combining probable demand in the police sector (Brown, Blackmon, Cousins & Maylor 64). In addition, centralization of operations limit extra expenses as little custody charges are present. Notable introduction of ICT in the centralized operations can modify efficient operations and service delivery. Among the strategies, police reforms require in order to institute, successful; adequate police system involve disregards of monopoly of the institution ad instead introducing private firms. This encourage sharing of roles while at the same time reducing cost in the process of management. Consequently, the management can also reduce patrols by using CCTV cameras not forgetting reconfiguring resources in a new design. The ABC system provides flexible resource allocation to settle the short term demand fluctuations. Work cited Brown, Steve, Blackmon, Kate, Cousins, Paul & Maylor, Harvey. Operations Management: Policy, Practice and Performance Improvement. Woburn, MA: Elsevier, 2012. Print Read More