1
Running Head: BUSINESS CASE STUDIES
21
BUSINESS CASE STUDIES
THIS IS THE ANSWER TO MODULE 4, USE IT TO ENSURE THE OTHER MODULES ARE FLOWING
Business Case Studies
Name
Course No. & Name
Date submitted
Background and Company overview
Shutterfly is an internet based company that offers its clients a chance to publish and create customized: prints, calendars, stationery, cards, photo books and photo-sharing websites among other services. It was founded in 1999 amidst the dotcom craze where a lot of companies of its kind were more interested in aggressively pursuing market share than maintaining a profit margin. The sudden interest in the internet had led to the establishment of many internet based companies with a hope of snatching a speculated demand that never really actualized. Shutterfly is one of the few companies that survived the dotcom bubble and it eventually went public in 2006. Its survival can be greatly attributed to implementation of Enterprise Resource Planning (ERP) and Material Resource Planning (MRP).
ERP and MRP
Enterprise resource planning is a process that applies software to integrate and manage all the vital departments and functions of a business into one generalized system so that every unit of the business is able to acquire information efficiently from all the other units. On the other hand, material resource planning is a computerized approach to inventory planning, corporate planning and manufacturing and supplier scheduling which provides the users with the correct timing and quantity for orders. It also generates new orders and reschedules existing orders, in order to meet client specifications. The MRP is change driven meaning that it constantly recalculates based on actual forecasts unlike traditional methods that rely on historical data of demand to react to existing problems. Using ERP AND MRP, Shutterfly was able to keep all the different service departments in touch with each other and by concentrating on actual information about the demand available, they managed to turn a profit instead of being drawn into the aggressive market grabbing frenzy.
Processes to plan for sudden and drastic changes in demand
Using MRP, a company is able to keep track of inventory at all times and therefore, they are able to anticipate by using forecasts based on facts what the demand of products would be which eliminates the risk of being caught unaware. Using ERP and MRP, a company can maintain a balanced inventory that allows it to experience as little loss as possible while taking advantage of any opportunities in the case of any sudden changes in demand without having to rely on speculation
Evaluation and analysis of success in implementation
A.
Kodo Millet PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...
1Running Head BUSINESS CASE STUDIES21BUSINESS CASE STUDIES.docx
1. 1
Running Head: BUSINESS CASE STUDIES
21
BUSINESS CASE STUDIES
THIS IS THE ANSWER TO MODULE 4, USE IT TO ENSURE
THE OTHER MODULES ARE FLOWING
Business Case Studies
Name
Course No. & Name
Date submitted
Background and Company overview
Shutterfly is an internet based company that offers its clients a
chance to publish and create customized: prints, calendars,
stationery, cards, photo books and photo-sharing websites
among other services. It was founded in 1999 amidst the dotcom
craze where a lot of companies of its kind were more interested
in aggressively pursuing market share than maintaining a profit
margin. The sudden interest in the internet had led to the
establishment of many internet based companies with a hope of
snatching a speculated demand that never really actualized.
Shutterfly is one of the few companies that survived the dotcom
bubble and it eventually went public in 2006. Its survival can be
2. greatly attributed to implementation of Enterprise Resource
Planning (ERP) and Material Resource Planning (MRP).
ERP and MRP
Enterprise resource planning is a process that applies
software to integrate and manage all the vital departments and
functions of a business into one generalized system so that
every unit of the business is able to acquire information
efficiently from all the other units. On the other hand, material
resource planning is a computerized approach to inventory
planning, corporate planning and manufacturing and supplier
scheduling which provides the users with the correct timing and
quantity for orders. It also generates new orders and reschedules
existing orders, in order to meet client specifications. The MRP
is change driven meaning that it constantly recalculates based
on actual forecasts unlike traditional methods that rely on
historical data of demand to react to existing problems. Using
ERP AND MRP, Shutterfly was able to keep all the different
service departments in touch with each other and by
concentrating on actual information about the demand available,
they managed to turn a profit instead of being drawn into the
aggressive market grabbing frenzy.
Processes to plan for sudden and drastic changes in demand
Using MRP, a company is able to keep track of inventory at all
times and therefore, they are able to anticipate by using
forecasts based on facts what the demand of products would be
which eliminates the risk of being caught unaware. Using ERP
and MRP, a company can maintain a balanced inventory that
allows it to experience as little loss as possible while taking
advantage of any opportunities in the case of any sudden
changes in demand without having to rely on speculation
Evaluation and analysis of success in implementation
As explained, the dotcom era led many companies into
believing that the demand for internet-based products was
greater than it was at that time which led them to expanding
aggressively in search for market share as they anticipated a
repayment of the investment when the demand finally
3. materialized. On the other hand, Shutterfly did not utilize that
strategy because they locked in their profits by making sure
they had a profit margin in every transaction across all the
departments of the company. This was made possible by use of
ERP and MRP which made sure that minute details about cost
and orders was communicated across all channels which made
pricing and other decisions inclusive and appropriate. They
made plans for the demand that was anticipated using MRP but
they did not let the speculative atmosphere lead them into
preparing for a demand that could not be forecasted using the
actual facts on the ground.
LITERATURE REVIEW
Introduction
In an organization, operation refers to the unit of it
concerned with conversion of a wide variety of inputs to outputs
(services) that are of a quality high enough to satisfy the end
users. Broadly, operations can be classified into manufacturing
and service operations. The former is concerned with
transformation of inputs into tangible goods while the other’s
outputs are intangible. On the other hand, management refers to
how the organization transforms its various operational
resources into value added products in a controlled manner
dictated by the policies of the company. Therefore, operations
management can be defined as the process of transforming
inputs to outputs using various resources in a controlled way to
ensure long term survival of a company. Operation’s
management is directly responsible for the growth and survival
of a firm because it’s responsible for how resources are used
and a good performing operations unit should have the
following results: low cost of production, high quality of goods
(services), timeliness, dependability and flexibility (Slack et.al.
2004).
As mentioned, operations management ensures proper
utilization of resources for long-term survival of an
organization and to make this happen, business strategies have
4. to come in play. Strategies have traditionally been associated
with military tactics but the techniques usually associated with
the battlefield started being adapted to business in the 1960’s.
Business strategies took to mean collection of intentions or
plans that set long-term direction of operational deeds that will
result in eventual success of the business. In an organization,
strategy exists in three levels: corporate, business and
functional. The highest level is the corporate level because it is
concerned with the nature, scope and long-term direction of the
entire organization. Business level strategy details a way for the
business to deal with external factors affecting the business and
what the business should aim for in relation to the industry it
plays in and for single enterprise organizations, corporate and
business level strategies are the same. The lowest level of
strategy is the functional level where strategies are confined to
the individual units of the business for example: marketing,
finance and human resource among others. In its role as a
determinant of an organization’s overall direction, strategy is
concerned with a business’: environment, objectives and
resources. As explained, operational management deals with a
company’s resources therefore operation management strategies
are concerned with long-term management of said resources in a
way that ensures it accomplishes its objectives despite of any
changing factors in its external environment.
Operation management
strategies
Manufacturing strategy
In 1969, Skinner recognized the need for a manufacturing
strategy. He was of the opinion that companies within the same
industry have different characteristics thus show varying
weaknesses and strengths which manifest themselves in the way
they choose to compete against each other. Due to this, each
company has different priorities and trade-offs because of
operating traits inherent in their customized production systems.
In essence, Skinner appreciates all manufacturing strategies as
he says that none is superior to any other because it is not
5. possible for one to always produce better results in all
situations than all others (1969). Where one strategy can be
specialized in producing high quality standardized goods at a
low cost, it might not be able to adjust effectively to a sudden
change in demand which means it would lose its competitive
edge to a manufacturing strategy with more flexibility.
In the 1980’s, a new approach to manufacturing strategy was
introduced which advocated for less customization in the
manufacturing process in favor for what was called ‘lean
production’. This development was because Japanese companies
were constantly outperforming American companies at the time
with this new approach to the traditional strategy. The lean
production approach emphasized that labor and equipment usage
rates are less vital than throughput time and that manufacturing
of products should be done in parallel rather than sequentially
by use of cross-functional teams (Katkyama, 2010). By use of
this method, the companies were able to achieve: lower
production cost, higher product quality, faster production times
and flexibility in production so that they could deal with any
sudden changes in demand.
The fact that Japanese companies did better was not
because their manufacturing strategy was superior, it is because
they were able to improve several facets of the strategy which
gave them a competitive edge in comparison to their
counterparts which to some extent compliments Skinner’s
thoughts about superiority of one manufacturing strategy over
another. The lean production approach is a hybrid that combines
craft and mass production so that a company utilizing this
strategy is able to produce high quality products and mass
produce it without the time costliness of customization which
gives a firm a competitive edge.
In each instance of implementation of manufacturing
strategy, different companies set different trade-offs and
priorities which makes all the difference when it comes to
achieving excellent operational performance. The lean
production approach utilizes generalizations so that equipment
6. and workers are flexible and can act many roles instead of
specialized single roles. Communication along the assembly
lines is informal and horizontal. Rejects and waste are greatly
discouraged so line workers have to work harder to ensure that
the products are acceptable for distribution. The entire
production process is based on: quantity, quality and efficiency,
which has led to better performance for any company adopting
this methodology.
In addition to lean production, companies have evolved
their manufacturing processes with the evolution of technology.
Some processes that required human intervention in the 1980’s
can now be accomplished faster and more effectively by
application of computer programs and some ‘hands on’
assembly can now be done using automatons (assembly robots)
which reduces the chances of human error. This has gone a long
way to reduce overhead costs and to increase the quality of
products which has led to companies with better technologies
acquiring a competitive advantage over their competitors. An
example of a company that has effectively combined lean
production and technology in their manufacturing strategy is
Samsung Electronics. The company uses several assembly lines
of workers working parallel to each other to assemble
components of electronic devices where the most sensitive are
assembled by automatons. This has led to high productivity
which allows them to meet the global demand for Samsung
devices while still maintaining high quality and low production
costs. Apart from assembly, complex calculations can be
accomplished within seconds by use of computer applications
while it would take a human much longer to achieve the same
results.
Service strategy
For a long time, operation strategies were only defined for
manufacturing business’ but the increase in popularity of
service companies has led to increased competition in that
industry which has in turn led to implementation of advanced
strategies in order to acquire a competitive advantage. The
7. service industry is characterized by: low entry barriers because
service innovations are not patentable therefore it is not
uncommon for one company to start a service which is easily
emulated by others especially because the initial outlay for
setting up is not very high, erratic sales because of erratic
demands-this is due to the fact that unlike an object, services
are reliant on time thus clients are not always predictable, they
have less chances for economies of scale, many services have
product equivalents which may sometimes make the service a
second option and customer loyalty to established firms which
makes it hard for young firms among other factors (Chase and
Hayes, 1991).
One of the approaches employed to gain a competitive
advantage in this sector is low-cost leadership. The most
effective action that differentiates one company from another is
their investment in technology. Customers want to have the best
and most effective service but they are mostly unwilling to
break their banks to acquire it so a service strategy should
involve investing in high-tech technology while still keeping
the costs low(Mintzberg,1985). Take an Automated Teller
Machine (ATM) as an example, people can withdraw money
conveniently without the bank having to pay additional tellers
to man the machines. A bank with many conveniently placed
ATM’s will attract a larger customer base than one without. The
machines are a one-time purchase while human labor is a
continuous expense hence use of the machines reduces overhead
for the company in the end.
Another approach to this strategy is differentiation.
While almost everyone can own a car, not many can own a
Mercedes-Benz and that distinction and exclusivity is what most
companies are gearing towards as the competition for finite
products intensifies. With this strategy, what a company sells is
a sense of distinction from the rest hence the challenge is to
ensure that the brand does not lose its prestige which would
make the entire strategy worthless. Apart from exclusivity based
on class, some companies may choose to target only niche
8. clients with specific products designed to suit their
eccentricities.
Just like in the manufacturing strategy, no approach to
service strategy is perfect by itself but some companies have
created an approach that is a hybrid of many. An organization
will have products designed to appeal to any client that may
require the services the company offers.
A CASE STUDY OF SUMSANG ELECTRONICS
Keywords: BPR, human resource, Samsung Electronics,
Methodology: Literature review of existing case studies on
Samsung Electronics and review of the annual report showing
events and results of 2014.
Introduction
Operation’s management strategies have been
contemplated-although not by the same name, since the advent
of trade. In a world where monopolies are a rarity, the
competitive advantage proffered over any business is directly
linked to the effectiveness of its operation management
strategies. No manufacturing or service strategy is superior to
any other (Adam et.al., 1989); yet, some companies consistently
perform better than their counterparts in the same industry.
Samsung Electronics is an example of such a company and it
has performed well since its inception especially in the last
decade where it has ranked first as a leading manufacturer and
supplier of electronics.
Background information
Samsung Electronics company can be classified as both a
manufacturing and service company in that it is a leading
manufacturer of electronics e.g. handsets, refrigerators,
speakers, televisions etc. and a service one because it offers
customer service to all its customers by: warranty and repair
services, technical help desk, network provision and sale of
some exclusive products among others. The company is a child
9. of the Samsung Group which was founded by Byung Chul in
1938 with just 30,000 Won as start-up capital. The electronics
unit was established in 1969 in Suwon, South Korea and it has a
mission statement that allows it to grow and evolve with the
changes in the outer world which allows the company to make
money while still maintaining its commitment to human and
environmental protection.
Global physical presence
Samsung Electronics is headquartered in Suwon, South Korea
and has offices in Seocho in seoul. It has regional headquarters
in: China, Japan, Singapore, India, South Africa, Russia, United
Kingdom, Germany, United States of America and Brazil. The
company is governed by a board of 12 Korean directors and it
has 80 sales networks around the world employing 370,000
people. In addition, it has 42 global research facilities and 7
lifestyle laboratories employing over 50,000 researchers. The
company has several satellites in orbit and has proposed a plan
to launch 4600 satellites in low orbit that would ensure cheap
internet coverage all over the world.
Business strategy
Business strategies are plans or sets of intentions that
lead to actions designed to ensure long-term success of a
business and Samsung Electronics employs a number of
strategies to ensure its continued dominance over the
competition. One of the strategies used is manufacturing
strategy. In acceptance of the original strategy, Samsung has
endeavored to: reduce production cost, offer high quality goods
in a timely fashion, be dependable and flexible. To reduce
production cost, the company has adopted lean production
where assembly of device parts is done by parallel assembly
lines working full time without interruptions (Jung, 2014).
Taking an example of handsets; the global demand for mobile
phones is enormous therefore a company cannot meet demand if
they customize each and every unit so Samsung’s parallel
assembly lines allow it to meet the demand and be flexible
enough when there is a sudden change in demand. By training
10. workers to be all-purpose rather than specializing in one skill,
the company is able to reduce its overhead costs.
Samsung Electronics is also the global leader in cutting
edge technology that has enabled it to have a competitive
advantage in both its manufacturing and service functions. In
manufacturing, the company has advanced technology in the
production process to reduce production cost. It has
implemented automatons, software and other robotic options
that make the production process faster and reduces the reliance
on human labor. Use of this technology reduces the number of
faulty products that come back as rejects which in turn
increases the net sales of the company. Also, as leaders of
wearable technology as seen in its range of wearable gear, it has
been able to capture the customer’s attention before the
competition can come up with competing technology. Its goal to
be a trend setter rather than follower has seen it gain market
share every time a new unique product is realeased.
Also, as will be seen below, Samsung Electronics has a
wide range of products designed to suit the everyday person and
the niche client that wants something very expensive and
unique. The company uses differentiation as an approach to
service strategy to create a range of products for the eccentric
and rich client who wants distinction from his peers by having a
brand item that is not commonly available. It has also launched
seven lifestyle laboratories around the world where market
research and technical support is done in order to improve and
support local product lines. Due to its presence across the
globe, Samsung Electronics has created priceless brand
recognition and the support services offered to its clients has
become an asset that encourages customers to choose its
products over any other available alternatives.
Types of products and services
Samsung Electronics’ business is broadly categorized
into three categories: consumer electronics, IT& Mobile
communications and device solutions. Under the consumer
electronics, Samsung has a range of products namely: visual
11. display products, digital appliances, printing solutions and
health & medical equipment. For the visual display products,
Samsung has 28.3% global market share making it the leading
supplier of flat panel televisions including LCD and LED. It
also has a global market share of 39.1% in the 60 inches and
larger TV market and 34.3% share in the UHD TV market. For
the digital appliances market, Samsung offers refrigerators,
washing machines, air conditioners and home cleaning robots.
For the printing business, the company supplies differentiated
printers that have normal and specialized services including:
cloud and mobile printing. It is the 2nd largest global supplier
of A4 laser printers with a market share of 15%. In the medical
field, Samsung Electronics is a leading developer of equipment
like: large-scale medical imaging equipment (ultrasound, digital
X-ray, portable CT etc.), which are used in medical institutions
all over the world.
For the IT & Mobile communications industry, Samsung
Electronics is the leading global supplier of handsets with a
market share of 22.1% and a smartphones market share of
24.7%. The successive galaxy range of smartphones is
especially popular combined with the company’s new range of
wearable gear tech. On this platform are also laptops and tablets
which are used widely by individuals and institutions globally. .
In addition to the above mentioned products, Samsung also
offers numerous others like: memory chips and flash drives for
which they hold a market share of 40.4% and 36.5%
respectively, and LED lighting products.
Other than the manufacturing business, Samsung
Electronics is also a player in the service industry where it has
collaborated with mobile service providers in Europe, Asia and
the United States to provide innovative technologies like:
carrier aggregation (CA) and LTE networks. Samsung also has
numerous outlets all over the globe that offer technical services
and logic processing technology to its customers
Target market
In a report to the stakeholders in 2014, the management of
12. Samsung Electronics claimed that the range of their products is
informed by people’s everyday needs. Therefore, the
company’s products are targeted to both low-priced markets and
premium markets. In the low priced markets, Samsung
electronics is steadily expanding its market share in Africa,
Asia and the pacific Islands while it still expands its roots in the
United States and Europe especially when it comes to service
providing. An example, the company has one person sized
fridges to institution sized ones which means it targets every
individual and organization able to spend money on electronics.
However, the range of their products is versatile and flexible so
that there are products suited for specific ages and their location
in the world than others.
Samsung Electronics’ supply chain
Samsung Electronics has been ranked among the
companies with the best supply chain management in the world.
There are several factors that have enabled the company to
excel in this area but mostly, it is their adoption of best
practices that has led to this achievement. One of the best
practices adopted is involvement with clients at the macro level
(Jung, 2014). The company installs staff members in local
universities in countries they have interest in to attend MBA
programs and the purpose of these country specialists is it to
gather knowledge of customer behavior and preferences which
is then incorporated in product design in a process called
quality function deployment. The company has also
standardized its production processes and mostly centralized
them in Korea which allows them to manage quality of products
and meet demand for products through mass production. In
addition, Samsung utilizes the APS (Advanced Planning and
Scheduling) system that allows it to manage a flexible
production plan.
Business processes that need
improving
Samsung experienced a decrease in sales revenue in 2014
compared to the previous year due to the increased competition
13. from Apple Inc. on high end products and Chinese companies
on the low end products therefore the company has to come up
with more aggressive sales and marketing processes that will
enable it to regain its lost market share. However, the major
problem Samsung is faced with when it comes to providing the
best product to customers is limited innovation as ironic as it is
seeing that the company is renowned for being very innovative.
Samsung electronics is slow to adopt information and people of
a culture different from Korean culture which is a hindrance to
the creative process. Their innovative pool is confined to what
Korean people can come up with which lacks the diversity that
would be brought by including people of different perspectives
from different parts of the world. Innovation is the first step in
product creation therefore; diversification of the innovative
pool is something that the company definitely needs to work on
if it hopes to keep its position as a global leading supplier of
electronics (Khanna, 2011).
Even with the technological advancements Samsung has
had in its production process, there is still a lot of inefficiency
in the production of products .Operation management is all
about efficiently managing the resources of a company therefore
Samsung can exhaustively use their resources by embarking on:
clean production, material reduction and recycling which not
only benefits the company but it also reduces emission of
pollutants which are harmful to the environment and people.
Current operations and performance
Despite being a global leading supplier of many
electronic devices, Samsung is facing fierce competition from
other companies, one of which is Apple Inc. The financial
reports released in 2015 for 2014, showed a sharp decrease in
sales and operating profit for the company, no doubt caused by
the increasing uncertainty of the world economies. 2014 saw an
increase in US interest rates, financial risks in emerging
markets due to drop in commodity prices and economic
recession in the Euro zone which all contributed to the
decreased profits especially because most of Samsung
14. Electronics’ transactions are in foreign countries and conducted
in foreign currencies.
To combat the above issues and to ensure that the sales
and operating profits do not decrease further, the board has to
come up with strategies designed to launch Samsung into new
markets and introduce new products. With that in mind,
Samsung is in the process of production of Galaxy S6 and
Galaxy S6 Edge for the premium market and several products
for the lower priced markets. Apart from products aimed at
individuals, there is also production of products for business’
and institutions including B2B. The management is also
planning to more closely manage the investment portfolio of the
company to ensure risks arising from currency and interest rates
are hedged against because foreign money represents a lot of
the expected profits.
Human resources
Human resource is one of the most important assets that a
company has and Samsung is dedicated to adding employee
value and training talent as much as possible. Seeing that the
company is global, it recruits talents from all over the world
and puts them through a rigorous education and training system
(Youndt and Snell, 2004). The company offers its recruits over
1500+ education programs on: value & leadership, next-
generation leaders, global competencies and expert training. We
have also seen that Samsung more often than not enrolls its staff
for MBA’s in universities located in countries where they have
a business interest in. These staff members are then used as
expatriate executives, versed in both the culture of the local
economy and the Korean culture so they are able to smoothly
run foreign divisions of the company and effectively
communicate with the mother company back in Korea.
The company operates under principles of legality and
mutual respect for people. To implement this, it has strict
prohibitions in place against child labor and emails are sent to
employees and monitoring officers every day once the worker’s
legal working hours approach which prevents overworking of
15. any of the staff. There are also great work days where the
company organizes festive events to thank and appreciate their
workers. The workers are also given online courses regarding
their rights and the rights of others so that they can have the
knowledge to act in case they experience any discrimination,
sexual offense or any other issues. A counselor has also been
made available for any employee who might require their
services.
The global turnover rate of Samsung employees is
between 10-20% every year which is a relatively high number.
This can be attributed to the fact that the company discourages
labor unions which would normally mediate in grievances
between employer and employees, and there have been cases
over the years of workers developing blood cancer for which the
company offers help and treatment to the afflicted and affected.
It is therefore imperative for the company to come up with ways
to address the safety issues surrounding the workplace because
a high turnover rate adds to the company’s expenses each year
due to the new recruits’ education and training expenses.
Options for improving business performance and
their implication
Business Process Reengineering (BPR) involves
dramatically changing the way a company conducts several vital
business processes in the hopes of achieving better productivity
and quality while reducing cycle times of production. Samsung
Electronics is already very involved with its customer needs and
already started the adoption of cross functional organizations
from functional organizations but there is still a lot that needs
reexamining. For productivity to increase, the company has to
overhaul the production process in order to incorporate clean
production, material production and recycling which will lead to
better resource utilization and translates to better profit margins
for the company. This overhaul would also ensure that the
quality of products produced is of a higher standard. Granted,
the initial outlay for implementing such a project is huge but
the potential benefits arising from improved productivity in
16. time, cost and quality are huge enough to justify such
expenditure.
I also think that Samsung should reduce its manpower in
the manufacturing and assembly departments. A lot of the
company’s expenses arise from salary and benefits to workers
so a reduction on manpower and more investment in automated
options would reduce the company’s expenses dramatically. As
explained above, there is a high turnover of employees therefore
the company should use a sort of escalator program when giving
education and training to recruits because as it is, it is spending
too much money training people who end up leaving after a
year. In the interest of keeping costly lawsuits at bay, Samsung
should invest in safety and preventive measures that protect its
employees from exposure to harmful materials during
production, this measure would go a long way in reducing
expenses that occur in case of treatment and litigation.
Samsung Electronics already has the technology to
produce robots, automatons and complex programs that can do
better jobs than humans so I would recommend that the
company refines and implements that technology so that only
minimal human intervention is required in the production
process.
Conclusion
Despite its position as a global leader, Samsung
Electronics is mandated with the harder task of keeping that
position and that will involve dramatic reengineering of
business process and addition of more innovative talent in the
company.
References
Chase, R. B. and Hayes, R. H. (1991).Beefing up Operations in
Service Firms. Sloan
Management Review 33:1-17
Johnson, G., Scholes, K. and Whittington, R. (2005) Exploring
Corporate Strategy
(7th Ed.), Harlow: Prentice Hall
Jung, S. C. (2014). The analysis of strategic management of
17. Samsung Electronics company
through the generic value chain method. International
Journal of Software
Engineering and ItsApplications, 8:133-142
Katkyama, H. (2010). Significance of Lean Management and
Contribution toward customer
Satisfaction. Industrial Engineering Magazine, 47:
22-27
Khanna, T. (2011). The Paradox of Samsung’s Rise. Harvard
Business Review
Leong, G.K., Snyder, D.L. and Ward, P.T. (1990) .Research in
the Process and Content of
Manufacturing Strategy, Omega 18(2):109–122.
Mills, J.F., Neely, A.D., Platts, K.W. and Gregory, M.J. (1998)
.Manufacturing Strategy: A
Pictorial Representation, International journal of
Operations and Production
Management 18(11):1067–1085
Mintzberg, H. and Waters, J.A. (1985) . Of strategies, deliberate
and emergent, Strategic
Management Journal 6:257–72.
Skinner, W. (1969). Manufacturing-The Missing link in
corporate strategy. Harvard Business
Review,47(3):136-145
Slack, N., Chambers, S. and Johnston R. (2004) Operations
Management (4th Ed.).
Harlow: Pearson Education.
Wernerfelt, B. (1984) .A resource based view of the firm,
Strategic Management Journal
5:171–180.
Youndt, M.A. and Snell, S.A. (2004). Human resource
configurations, intellectual capital, and
organizational performance. Journal of Managerial
Issues, 16:337-360
18. MODULE 4 INSTRUCTIONS FOR REFERENCE AND FLOW
Module 4
Part 1
he Bullwhip effect is often used to describe the magnification of
demand variability due to distorted information through the
supply chain. A classic example of this was during the
“dotcom” bust of 2000 when demand variability for broadband
equipment was magnified several fold as information was
transmitted through the supply chain. The end result was that
several companies were planning for unrealistic demand, and
many companies shut down when this demand failed to
materialize.
Research a company that is actively using Enterprise Resource
Planning (ERP) and Materials Resource Planning (MRP)
systems to manage its processes, resources, and operations. You
can choose a technology company that has survived the dotcom
era or any other company that has lived through a very rapid
change in demand forecasting such as what occurred as a result
of the fiscal meltdown and the liquidity crisis in 2008.
Based on your research, respond to the following:
Analyze some of the processes that the company has put in
place to plan for sudden and drastic changes in demand.
Evaluate the success of the initiatives and analyze the reason
for the result.
Based on the lessons learned, what else could the company do to
plan for future disruptions?
Write your initial response in 300–500 words. Your response
should be thorough and address all components of the
discussion question in detail, include citations of all sources,
where needed, according to the APA Style, and demonstrate
19. accurate spelling, grammar, and punctuation
Part 2
Be sure to visit the Overview of Required Assignments page to
review the instructions for RA 2 due in Module 7 because this
assignment provides the foundation for RA 2.* This is listed
beneath this assignment. For this assignment, you will
complete an academic literature review of current operations
management strategies with an emphasis on best practices for
incorporating new and established technologies into business
operations.
In completing this assignment, you will choose at least seven
peer-reviewed articles from the Argosy University online
library resources (beyond the required readings). You will
review, analyze, and synthesize the selected materials. Later,
you will use this information in RA 2 to develop a case study
that details a business process reengineering (BPR) strategy for
integrating IT with the goal of improving selected operational
aspects of the business.
The purpose of this literature review is for you to practice the
following:
Critically review the articles and understand how the concepts
are related
Synthesize the various concepts and results of the review
Write a collective analysis of the articles
Download and review the following resources you will need to
complete the literature review:
Suggestions for Writing Effective and Organized Papers: Use
this guide for help with structuring the content of your paper in
a cohesive manner.
APA Quick Reference Sheet: Refer to this resource for help
with APA style regarding in-text citations, reference entries,
20. and paper formatting.
Review of the Literature: Apply the concepts in this document
when writing your review of the literature.
Complete the following:
Select at least seven peer-reviewed articles (beyond the required
readings) with an emphasis on the best practices for
incorporating new and established technologies into business
operations using BPR.
Then, write a literature review that includes the following:
Provide an introduction of the context of the articles. Describe
the operations management strategies.
Identify key themes that emerge from the selected articles.
Analyze the patterns of similarities and differences in how each
author has presented each theme.
Evaluate the implications of operations management strategies
on the successful management and leadership of an enterprise.
Note: A literature review is not simply a summary of the
articles, but is a synthesis of the many ideas and concepts
presented in the various articles.
Write a 5–7-page paper in Word format. Make sure you write in
a clear, concise, and organized manner; demonstrate ethical
scholarship in accurate representation and attribution of
sources; display accurate spelling, grammar, and punctuation.
Apply APA standards to citation of sources.
* This is the background information for Module 4, Part 2
For this assignment, you will create and present a case study
based on the information gathered for your literature review
developed for RA 1. You may also include any other resources
that you consider relevant. Your case study should demonstrate
the impact of information technology (IT) on business process
reengineering (BPR) processes and illustrate the relationship
between the two in international operations. Write a 10–12-page
report that addresses the items listed under the Directions
section.
Background:
21. A business process includes activities and tasks that cross
functional or organizational boundaries. BPR is a structured
approach to analyzing and improving fundamental activities
such as manufacturing, marketing, communications, and other
major elements. It is expected from the redesign of the business
processes to foster sustained improvements in quality, cost,
service, lead time, flexibility, and innovation. BPR delivers
radical and incremental business improvements through the
identification and removal of waste and inefficiency. IT is the
most important factor to enable newly redesigned processes;
however, BPR does not refer to automating poor processes.
Directions:
Revisit the literature you synthesized in RA 1, taking into
account the feedback received from your instructor. Identify at
least five other relevant articles that will help you develop your
BPR recommendations.
Identify a company with international operations for which you
will be developing your case study and the business process(es)
in need of improvement.
Your case study should provide the context for BPR by
discussing all of the following aspects of the business:
Facilities, location(s), and capacity (including corporate
headquarters, satellite facilities, warehouses, etc.)
Business strategy
Types of products or services offered
Target markets
Supply chain characteristics
Analyze the business process(es) that need improvement. Refer
to the following:
The place in the value chain and the importance to the
organizational performance
Current operations and performance
Human resources
Current technology as it is related to the addressed business
processes
22. Identify and evaluate the effectiveness and efficiency of at least
two options for improving business performance through BPR
and associated technology needs.
Recommend a technology for improving business performance
based on your case analysis. Consider the human resource
implications of your solution. Justify your recommendation.
Write a 10–12-page paper in Word format. Use at least five
scholarly articles in addition to those used in RA 1 to complete
your research. Your writing should be clear, concise, and
organized; demonstrate ethical scholarship in accurate
representation and attribution of resources; and display accurate
spelling, grammar, and punctuation.
Module 5
Part 1: Discussion—Facilities Management
A critical element of a company’s operations management
strategy is the efficient management and location of the
company’s facilities. To take advantage of lower labor rates or
easy access to raw materials and resources, several companies
in the U.S. and Europe have looked to offshore operations
including manufacturing, design, and customer service in low
cost regions of the world such as China, India, Eastern Europe,
or Southeast Asia. In recent years, there are indications that
some companies are looking to reverse the offshoring trend. For
example, from the end of 2102 and through 2013, GE moved
manufacturing of appliances from China to Kentucky, and
Lenovo opened a design center in North Carolina.
Using the module readings, and the Internet, research a
company with global operations. Based on your research,
respond to the following:
Briefly describe the company’s strategy with respect to regional
location of its facilities for manufacturing, design, research and
development, marketing, and customer service.
How has the company’s strategy evolved with respect to global
location of facilities?
23. What challenges is the company facing in the current
environment?
How can the company be more efficient in how it manages the
global location of facilities in response to these challenges?
Write your initial response in 300–500 words. Your response
should be thorough and address all components of the
discussion question in detail, include citations of all sources,
where needed, according to the APA Style, and demonstrate
accurate spelling, grammar, and punctuation
Part 2
Now that you have completed your literature review in Module
4, take some time in this module to plan for RA 2 due in
Module 7. Be sure to visit the Working Ahead on Major
Assignments section in Module 1 to review the directions for
RA 2.
Using the module readings, and the Internet, research companies
with international operations. Select one company for which
you will be developing your case study and evaluate the
business process(es) in need of improvement. To prepare for RA
2, gather as much information as you can about the company
including the following:
Facilities, location(s), and capacity (including corporate
headquarters, satellite facilities, warehouses, etc.)
Business strategy
Types of products or services offered
Target markets
Supply chain characteristics
Do this in approximately 3 pages
Be sure to check with your instructor concerning any questions
you may have about RA 2.
Module 6
Assignment 1: Discussion—Exploring Potential Research
Topics
Based on your business experience and the information
accumulated in this course, identify three possible research
24. topics related to the subject of the course. What managerial
problems or opportunities would each of the three topics
address?
Provide a short description for each research topic, highlighting
the following:
The problem or opportunity in organizations that needs to be
addressed
The purpose of the research
The question(s) that, if answered, will help in solving the
problem or seizing the opportunity
Write your initial response in 300–500 words. Your response
should be thorough and address all components of the
discussion question in detail, include citations of all sources,
where needed, according to the APA Style, and demonstrate
accurate spelling, grammar, and punctuation
Make sure your writing
is clear, concise, and organized;
demonstrates ethical scholarship in accurate representation and
attribution of sources; and
displays accurate spelling, grammar, and punctuation.
Assignment 2: Facilities Operations
Lean operations create more value for customers while using
fewer resources than traditional operations. In this assignment,
you will identify the business planning process for a lean
management operation by implementing an information system
in a service or manufacturing organization.
Choose a company different from those evaluated in previous
assignments (not Apple, Google or any other company I’ve used
in this class). Examples of information systems that reduce
waste in organizations could include the following:
A new inventory tracking software
An electronic payment system for products and services (For
example, a service organization such as a car wash that
currently only accepts cash payments upgrades their systems to
accept credit card and PayPal payments.)
25. A Web site to receive personalized orders from customers for a
manufacturing organization
Based on your analysis of the company, address the following:
Explain the current business model and discuss the benefits of
incorporating the lean process. Describe a specific approach to
acquiring and using the lean process.
Justify the incorporation of a lean approach. Describe the
potential effect of the business growth as related to supply
chain management. Include safety and precautionary processes
to protect the business from fraud.
Examine the product components for the selected business
operation. Include the business management aspects of the
process, in addition to information on the following topics:
Purchasing operations
Outsource delivery
Lean tenets
The push-pull system
Create a 1-page, high-level flowchart of the process with a
maximum of ten activities. The flowchart should be precise and
look professional. If needed, you can download a trial version
of visual or graphic design software such as SmartDraw.
Write a 3–5-page paper, including the flowchart, in Word
format. Use at least three scholarly articles to complete your
research. Your writing should be clear, concise, and organized;
demonstrate ethical scholarship in accurate representation and
attribution of resources; and display accurate spelling, grammar,
and punctuation.
Module 7
Quality management and control are critical operational
management functions and cornerstone elements in the strategy
of a successful company.
Using the module readings, and the Internet, research a
26. company in the manufacturing or service sector recognized for
successfully including quality management in its business
strategy.
Based on your research, respond to the following:
Describe the quality challenges that the company used to face.
How has the company’s quality improved over the years?
What is the company doing to convey improved quality in its
marketing message? (For example, Ford Motor Company had a
marketing campaign "Quality is Job 1" that ended in 2011.)
Compare and contrast your findings for the company’s strategy
using this module’s readings.
Write your initial response in 300–500 words. Your response
should be thorough and address all components of the
discussion question in detail, include citations of all sources,
where needed, according to the APA Style, and demonstrate
accurate spelling, grammar, and punctuation
Assignment 2
For this assignment, you will create and present a case study
based on the information gathered for your literature review
developed for RA 1. You may also include any other resources
that you consider relevant. Your case study should demonstrate
the impact of information technology (IT) on business process
reengineering (BPR) processes and illustrate the relationship
between the two in international operations. Write a 10–12-page
report that addresses the items listed under the Directions
section.
Background:
A business process includes activities and tasks that cross
functional or organizational boundaries. BPR is a structured
approach to analyzing and improving fundamental activities
such as manufacturing, marketing, communications, and other
major elements. It is expected from the redesign of the business
processes to foster sustained improvements in quality, cost,
service, lead time, flexibility, and innovation. BPR delivers
radical and incremental business improvements through the
identification and removal of waste and inefficiency. IT is the
27. most important factor to enable newly redesigned processes;
however, BPR does not refer to automating poor processes.
Directions:
Revisit the literature you synthesized in RA 1, taking into
account the feedback received from your instructor. Identify at
least five other relevant articles that will help you develop your
BPR recommendations.
Identify a company with international operations for which you
will be developing your case study and the business process(es)
in need of improvement.
Your case study should provide the context for BPR by
discussing all of the following aspects of the business:
Facilities, location(s), and capacity (including corporate
headquarters, satellite facilities, warehouses, etc.)
Business strategy
Types of products or services offered
Target markets
Supply chain characteristics
Analyze the business process(es) that need improvement. Refer
to the following:
The place in the value chain and the importance to the
organizational performance
Current operations and performance
Human resources
Current technology as it is related to the addressed business
processes
Identify and evaluate the effectiveness and efficiency of at least
two options for improving business performance through BPR
and associated technology needs.
Recommend a technology for improving business performance
based on your case analysis. Consider the human resource
implications of your solution. Justify your recommendation.
Write a 10–12-page paper in Word format. Use at least five
scholarly articles in addition to those used in RA 1 to complete
your research. Your writing should be clear, concise, and
28. organized; demonstrate ethical scholarship in accurate
representation and attribution of resources; and display accurate
spelling, grammar, and punctuation.