Running Head: SUPPLY CHAIN OPERATIONS MANAGEMENT
Supply Chain Operations Management
Student’s Name: Angeline Hibbert
As a report this needs to have subheadings for each of the sections; a good approach is to have similar sections to the assessment brief. Your work requires more in-text citations. This is good academic practice. Please note that a high product variety that needs customisation requires a strategy that is flexible, fast and responsive- take the hint.
A lean supply chain is an older method that greatly focusses on producing more and in a reduced cost. This therefore adds value for their customers and eliminates any wastage on valueless things. Its focus is on forecasting where they pre-plan years or months before production to reduce on cost especially where a large amount of goods is produced. Agile supply method on the other hand gives a high receptiveness to being flexible so as to adapt quickly to changing circumstances in the society. It handles market unpredictability by waiting to see how the market reacts, before they have finished with the production process therefore responding directly to product demand rather than depending on a forecast (Limm, n.d.). Company A is suited to both agile and lean supply strategies. It can be suited to the agile strategy because different customers have different tastes and preferences when it comes to product specifications. They may make more hinges and iron products which may end up not being bought by their customers. Rethink this argument. See my comment above. They may require customizing and they respond quickly to market changes and trends. Through the lean strategy, they can make the products earlier, taking into consideration the current trends in the market. This will enable them to serve customers who may require the products urgently. These are customers who may not have various specifications for the products and may take what is readily available in the market. It will also serve the inconsistent number of orders which they receive from their customers. For company B, they have to cut on inventory costs by reducing on what is produced because they have a consistent order size. To reduce accumulation of products, they should produce what their customer demands, rather than forecasting what their customers will demand but it ends up accumulating in the stores. Therefore, agile supply chain method will be better suited for company B.
Some organizations may prefer the lean method because it highly cuts on the cost of production and minimizes wastage of the already produced products. It is able to minimize wastage because it can eliminate outdated inventories and possibly reduce the operational costs involved I the production process. It also provides for a timely delivery of products to customers and at the place where they want them and hence, they are able to meet customer requirements without having to observe a strict time limit which leads to an improved cu.
Running Head SUPPLY CHAIN OPERATIONS MANAGEMENTSupply .docx
1. Running Head: SUPPLY CHAIN OPERATIONS
MANAGEMENT
Supply Chain Operations Management
Student’s Name: Angeline Hibbert
As a report this needs to have subheadings for each of the
sections; a good approach is to have similar sections to the
assessment brief. Your work requires more in-text citations.
This is good academic practice. Please note that a high product
variety that needs customisation requires a strategy that is
flexible, fast and responsive- take the hint.
A lean supply chain is an older method that greatly focusses on
producing more and in a reduced cost. This therefore adds value
for their customers and eliminates any wastage on valueless
things. Its focus is on forecasting where they pre-plan years or
months before production to reduce on cost especially where a
large amount of goods is produced. Agile supply method on the
other hand gives a high receptiveness to being flexible so as to
adapt quickly to changing circumstances in the society. It
handles market unpredictability by waiting to see how the
market reacts, before they have finished with the production
process therefore responding directly to product demand rather
2. than depending on a forecast (Limm, n.d.). Company A is suited
to both agile and lean supply strategies. It can be suited to the
agile strategy because different customers have different tastes
and preferences when it comes to product specifications. They
may make more hinges and iron products which may end up not
being bought by their customers. Rethink this argument. See
my comment above. They may require customizing and they
respond quickly to market changes and trends. Through the lean
strategy, they can make the products earlier, taking into
consideration the current trends in the market. This will enable
them to serve customers who may require the products urgently.
These are customers who may not have various specifications
for the products and may take what is readily available in the
market. It will also serve the inconsistent number of orders
which they receive from their customers. For company B, they
have to cut on inventory costs by reducing on what is produced
because they have a consistent order size. To reduce
accumulation of products, they should produce what their
customer demands, rather than forecasting what their customers
will demand but it ends up accumulating in the stores.
Therefore, agile supply chain method will be better suited for
company B.
Some organizations may prefer the lean method because it
highly cuts on the cost of production and minimizes wastage of
the already produced products. It is able to minimize wastage
because it can eliminate outdated inventories and possibly
reduce the operational costs involved I the production process.
It also provides for a timely delivery of products to customers
and at the place where they want them and hence, they are able
to meet customer requirements without having to observe a
strict time limit which leads to an improved customer
relationship. The flow of the products from the manufacturers to
the consumers is made continuous and this ensures that there is
no wastage of operational space which leads to a better
production efficiency. Predicting how the market will be helps
in preparing the processes which will be involved in the
3. processing stage and they are therefore able to avoid any errors
which may occur in the future (Shpak, 2018). Despite its
advantages, lean method also has shortcomings which may
override the advantages. There may be equipment or labor
failures because change may result to fear and stress leading to
loss of the optimized advantage. Though it delivers products in
the right quantity, sometime there may be an error in deliveries
or missed deliveries which may be caused by traffic congestion
in some areas. The implementation cost involved is very high
because it involves purchasing of the required machinery,
training employees on the use of these machines and employing
managers who are familiar with the method. Is this not the case
for any manufacturing strategy? Agile manufacturing may
currently be the best considered method of production. This is
because it focusses more on customer needs and product design
and thus, it produces goods which take into consideration
changing demands. The manufacturing companies are able to
quickly respond to change since they retain some mass
production features and remain flexible while still doing mass
customization. There is a tendency to accept uncertainty faster
which leads to them solving a problem faster since it gives
priority to experimentation in order to clear the uncertainty
before bringing a strategy to implementation. Please provide a
source for this. It is not academically sound. Also, it can be
operated with a low inventory in that they produce what is
demanded, thus reducing on product spoilage or being outdated.
The method also has various shortcomings like lack of
predictability in its approach because only what is required to
lead into the next level of business is executed. Greater success
in any organization is achievable through beforehand advance
planning. Lack of adoption to change is another shortcoming
where the employees may lack the dedication towards giving the
method priority in the organization and making it work. It may
be difficult to measure difficulties since tracking of progress in
the agile method is difficult because of unclear resource
planning. Also, lack of formal personnel training on processes
4. involved and tools may lead to overlooking problems and
develop bad habits that may result into a blame game and result
into a poor output since the goods are produced at a much faster
pace and at times with little knowledge. Source?
In implementing lean method of production, the management
should prepare their team for change by making them
understand in details what lean production strategy is and the
benefits which come with implementing it. They should
understand the reason why you are implementing the method as
well as the goals and objectives which they should meet by
using the method. After this is understood, one should identify a
pilot team who should be volunteers and start the change with
them. From here, you choose a department with which you can
start implementing the method, and keep progressing to another
if you have successfully achieved the objectives. By doing this
step by step, then you are able to finally transform the whole
organization. In this section I am looking to see what
techniques of lean are suited to the company according to the
brief you were given; so 5S, Kanban system, JIT, etc- that’s
what we are looking for. Once the organization is familiar with
the concept, identify value-adding activities by involving the
other team players in considering the end product that the
customers get and pay for. Having identified value adding
activities, identify the steps it will pass through before reaching
the customers. Map each process involved and keep correcting it
as you continuously implement the method. Create a flow of
value on which tasks are carried out, how they are carried out
noting the challenges which you may experience. After
identifying challenges, you come up with a way of eliminating
them so that there is a smooth delivery of the product since
receiving the order to delivering the order. Having done this,
establish a pull system where you process items which have a
high priority as they are arranged in the queue. One identifies
the time taken in production and the tasks finished in a given
time. They should choose the shorter time taken with more
production then continuously improve on the methods used to
5. make production more effective. Implement a shared leadership
model where every team player takes ownership for their tasks
and has a responsibility of explaining what they did the
previous day, the challenges they faced, how they plan to
overcome the challenges as well as what they are going to
execute. In implementing agile production strategy, they should
first of all come up with a vision through calling for a strategy
meeting with all the relevant personnel and stakeholders to
come up with the vision and goals. Having developed the vision,
they should come up with the requirements for the project and
when they are going to be developed. One comes up with a
goal-oriented roadmap where they identify the date to
manufacture a certain product, its name, its goal, feature and
metric and everyone should be informed. You only need either
or. Which means you need to do one strategy for one company
so you can get detail in. The product owner then should come
up with the launching and release dates all the concerned
employees and stakeholders should be involved in the meeting.
They should then come up with short cycles in which certain
goals and tasks will be carried out by the individuals. This is
important since it enables the team to accurately plan on future
activities. The cycle should not go for a long period. Within the
short cycles, they should keep holding regular meetings which
may take less time to discuss on the progress or any challenges
which they are encountering. They then come up with a review
plan where they establish that all the requirements were met and
assessing any adjustments necessary at the end of the cycle.
Finally, they should decide on what to focus on after the cycle
is complete, the lesson learned in the cycle and the changes
which they should make in the next cycle.
Spotify is a company that successfully implemented the agile
strategy. The engineering team came up with rules and created
their own rules in regards to their company culture. The first
thing they did was to replace the terms scrum masters and teams
as used in agile methodology with the terms agile coach and
squads (Eriksson, 2015). Each individual had responsibility for
6. what they did and had the freedom to decide what they were
going to do and how. The squads were then allowed to work in
an environment which encouraged team work and sharing of
ideas during meetings. These squads were given a say in making
and acting according to the laid down decisions and came up
with a high alignment and autonomy where the different squads
could agree on a common challenge and came up with the best
solutions. The different squads were allowed to experiment with
whichever agile method they wanted and when any squad
identified a properly functioning system, the other squads had
to implement it for a period of time. The employees showed
great level of respect towards each other and praised each other
for the accomplished achievements which maintained a positive
atmosphere and they were constantly pushed towards improving
the work processes and the environment. People in the squads
were allowed to move into other squads with lesser
inconvenience to other squad members. These squads formed a
community which related closely with each other and the
leaders took upon duties such as being coaches and mentors.
Lastly, the organization had a belief that they should keep
coming up with new versions of their product and so the squad
was continuously working to add new features to the already
existing product. From the implementation of agile supply
chain, Spotify has around sixty million users worldwide and
were able to expand to fifty eight different countries and at the
same time, are able to compete favorably with the main
competitors in the music industry. They were able to recruit
talented people who were in turn involved in continuous product
development. The Spotify team is highly motivated to bring new
developments and they are always encouraged ton aim higher.
They also were able to keep up with rising market trends and
this enabled them to get more users. From the squads, Spotify is
able to deliver a working and tested application where they
continuously work on it to ensure that it is convenient to the
user. Through working with the small squads, they realized how
much productive these groups were and they therefore took
7. advantage of each individual’s skills and ability to mentor
others in the squads. This worked best since unnecessary
competition was reduced and the squads became more cohesive.
There is also a continuous planning which is carried out by the
organization to ensure that the software application is
successful and effective as well as having the appropriate data.
Through the timely planning, they have been able to
continuously test and deliver quality services which they are
testing continuously so as it remains relevant to their customers.
Reference
Limm, M. (n.d.). The Difference Between Agile vs. Lean
Supply Chain Management. Retrieved from:
https://blog.procurify.com/2014/04/22/agile-lean-supply-chain-
management/.
Wood, L.J. (26 September 2017). Disadvantages of Lean
Manufacturing. Retrieved from: https://bizfluent.com/list-
6025715-disadvantages-lean-manufacturing.html.
Shpak, S. (27 June 2018). Advantages & Disadvantages of Lean
Production. Retrieved from:
https://smallbusiness.chron.com/advantages-amp-disadvantages-
lean-production-46696.html
Gilley, C. (12 March 2015). The Pros and Cons of Agile Product
Development. Retrieved from:
https://community.uservoice.com/blog/the-pros-and-cons-of-
agile-product-development/
The Core 5 Principles for Implementing Lean. Retrieved from:
8. https://kanbanize.com/lean-management/implementing-lean/
MacKay, J. (January 11 2018). The Ultimate Guide to
Implementing Agile Project Management (and Scrum).
Retrieved from: https://plan.io/blog/ultimate-guide-to-
implementing-agile-project-management-and-scrum/
Eriksson, U. (31 March 2015). How Spotify does agile – A look
at the Spotify engineering culture. Retrieved from:
https://reqtest.com/agile-blog/how-spotify-does-agile-a-look-at-
the-spotify-engineering-culture/
Erin Brockovich
https://www.imdb.com/title/tt0195685/
Instructions
Write a 5 page paper (excluding title and reference page) in
APA double spaced paragraph format answering the following
questions. Do not strictly answer the questions in itemized
format, and use citations where references are applicable. The
idea behind the short paper is to watch the film and see what
knowledge you have learned throughout reading the textbook
you see applicable in the film and your own critical
thinking/interpretation of it:
Write a brief summary about the current situation in the movie
and what has transpired throughout the film. During the
summary, reference on some of the key points below. You are
9. not restricted to these topics only:
a. What is the problem, who are some “parties” that are affected
by the current circumstances, and what is the current impact of
the communities involved?
b. What was the substance that was making people sick? What
did the substance penetrate (air, drinking water, soil)? What was
Erin Brockovich’s motivation for pursuing this issue? What
illnesses did the substance cause?
c. What laws or statues are applicable in the film ? Is there
anything from the textbook that is applicable ?
d. Are there any other environmental situations similar to the
one in the film that have occurred in the past ? If so, which ones
and what were done about them ?
e. What risks did Ed Masry take as a small business owner? Did
Ed Masry take a risk by hiring Erin? Why or why not? Why do
you think that PG&E continued to lie to the residents of Hinkley
about the water conditions? What should PG&E have done
instead of lying? Consider this…is it sometimes harder to make
the right (ethically correct)
f. decision is than the wrong decision (unethical)? Why is this?
Did the case get settle or not ? If not, what was the ultimate
outcome.
g. What should the government do to prevent companies from
making unethical decisions? What should the consequences be?
h. Think of a time in which you had to make an ethically tough
decision…now, write what helped you to make the right or
wrong decision. What are some suggestions for others who will
face tough ethical decisions? What can help them to make the
right decision? Should businesses demonstrate corporate social
responsibility? Do the decisions I make impact others?
Assignment will be graded on content and appropriate
referencing. Any material that is copy and pasted will have
points deducted. Sloppy formatting, excessive paragraph
spacing to meet page requirement, and improper referencing
10. will also have pointed deducted. Everyone is required to submit
his or her own assignment. Plagiarism will result in a zero. All
papers must be submitted via dropbox in word doc format (no
.pdf)
Essential operations management
· Book by Alex Hill; Terry Hill 2018 Essential
Essential operations management
· Book by Alex Hill; Terry Hill 2011 Essential
Available as an e-book
Global Logistics and Supply Chain Management
Book by John J. Mangan; Chandra C. Lalwani 2015
INDICATIVE CONTENT:
· Globalised Logistics and Supply Chain operations
· The role of supply chain operations in R&D and New Product
Introduction (NPI)
· Channel management including e-business, Outsourcing, Re-
Shoring & In-sourcing
· Ethics, Sustainability and Procurement
· Big Data, Information and Communications
· Reverse Logistics and managing product recalls
· Circular economy and waste reduction
· Risk and resilience mitigation
· Role of consumers in supply chain engagement
LEARNING OUTCOMES:
11. Module Learning Outcomes
On successful completion of the module with limited guidance,
will be able to:
Subject-Specific Knowledge, Understanding & Application
a) Apply and reflect critically on the Supply Chain Management
Models as a basis for effective resource management.
b) Distinguish between key supply chain concepts and
techniques and apply appropriate ones for controlling and
planning cross functional operations.
c) Evaluate and synthesise the various definitions of quality in
an operational context and identify opportunities for quality
improvement.
d) Analyse the purpose and value of operations management
within the supply chain context.
Employability & Changemaker Skills
e) Develop effective oral and written communication and digital
fluency.
f) Demonstrate an ability for problem-solving in complex
scenarios.
Readers are referred to the Programme Specification document
for the list of PSRB requirements met by this module.
TYPICAL LEARNING, TEACHING AND ASSESSMENT
HOURS (for the module as delivered on-site at the University of
Northampton):
View this table on how learning, teaching and assessment hours
map to the KIS Categories.
Learning and teaching information for this module when
delivered off-site by UN partners is available from the partner
institution’s NILE site (or equivalent). Any variation in study
hours must be approved by the University of Northampton
before students are enrolled, ensuring that study hours provision
is always appropriate to support student achievement of the
module learning outcomes.
Learning, Teaching and Assessment activities
Study hours
12. Contact hours: (total)
Comprising face-to-face and online contact hours as follows:
48
· Face-to-face (total) - this may include the following:
· Face to face interactive large group session (e.g. team-based
learning)
· Face to face interactive small group session (generic space in
groups of approx. 30 e.g. seminars/workshops/tutorials
(directly supervised by employers/tutors)
· Off-site activities (e.g. fieldwork, visits)
· F2F (broadcast) Lectures
(e.g. guest speaker, cohort induction)
24
· Online contact hours(total)
(comprising online activities with mediated tutor input)
24
Guided independent study hours (including hours for assessment
preparation)
152
Module Total
200
Alex Hill and Terry Hill
Learning objectivesUnderstand NATURE of capacity and the
mix of RESOURCES involvedAppreciate the PURPOSE of
14. Introduction
Purpose of managing capacity
CAPACITY of resources
MATCH
DEMAND for services and products
TO
>KEY IDEAA key BUSINESS STRATEGY decision is whether
capacity should LEAD or FOLLOW demand
>KEY IDEATOO LITTLE capacity leads to DELAYS and
possible LOST SALES
TOO MUCH incurs unnecessary COSTS
An overview of managing capacity
Defining and measuring capacity
15. TYPE
Reflects
SERVICE or PRODUCT
to be delivered
Reflects volume of DEMAND
AMOUNT
An overview of managing capacity
Defining and measuring capacity
TIME is the common denominator
Some businesses would express as number of SERVICES or
PRODUCTS
e.g. number of people served in a restaurant
An overview of managing capacity
Defining and measuring capacity
16. An overview of managing capacity
Defining and measuring capacity
>KEY IDEAOperations expresses and measures its activities in
TIME
The rest of the business uses MONEY
An overview of managing capacity
Defining and measuring capacity
STATEMENT and MEASUREMENT of overall capacity will
differ
Overall size = ♯BEDS
Emergency unit = ♯STAFF
Consultant clinic = ♯APPOINTMENTS
HOSPITAL EXAMPLE
An overview of managing capacity
Defining and measuring capacity
17. An overview of managing capacity
Defining and measuring capacity
PLANNED capacity
ACTUAL capacity
>KEY IDEAUTILISATION compares
ACTUAL hours worked with
PLANNED hours worked
18. >KEY IDEAEFFICIENCY compares
ACTUAL output with
EXPECTED output for the hours worked
Factor affecting capacity management
Impact of delivery systems and processes on capacity
Use of CUSTOMERS
PERISHABLE nature of service capacity
BACK office vs FRONT office
Use of ADEQUATE CAPACITY at each stage of the delivery
system
>KEY IDEAService capacity is PERISHABLE and cannot be
put into inventory for use or sale in the future
Factor affecting capacity management
19. Determining the level of capacity
ANTICIPATING END of growth
AVOIDING OVER capacity
LEAD or FOLLOW demand
What to do with OVERCAPACITY
Divest or diversify?
>KEY IDEADeciding on the LEVEL of capacity involves:
ANTICIPATING END of growth
AVOIDING too much
Deciding to LEAD or FOLLOW demand
Deciding what to do with OVER-CAPACITY
Divest or diversify?
Factor affecting capacity management
Demand fluctuations
PREDICTABLE
UNPREDICTABLE
Cyclical
Annual or seasonal
Weekly or daily
Random
20. Unexpected
Factor affecting capacity management
Capacity fluctuations
PREDICTABLE
UNPREDICTABLE
Planned increase
Planned decrease
Absenteeism
Machine breakdown
>KEY IDEAOrganisations need to SEPARATE the
PREDICTABLE variations from the UNPREDICTABLE
variations in
demand and capacity
Planning and managing capacity
Issues to consider
21. UNCERTAINTY
Demand is UNCERTAIN
ANTICIPATING THE FUTURE
Forecasts are INACCURATE
TIMESCALES
From LONG-TERM plans to DAY-TO-DAY schedules
ALTERNATIVES
Different WAYS to provide capacity
EXECUTION
FULFILLING the plan
Planning and managing capacity
Resource planning
AMOUNT
How much is required?
TIMING
When is the capacity required?
LOCATION
Where should the capacity be located?
Planning and managing capacity
Resource planning
CONTROL
22. What ACTIVITIES should take place in the operationLayout
WHEN they should take place
What RESOURCES should be allocated to them
PLANNING
Understand what is actually HAPPENING in the operation
Decide if there is any DEVIATION from what should be
happening
Change RESOURCES to affect the operation
Planning and managing capacity
Resource planning
Planning and managing capacity
Resource planning
Forecasts
Investment
Long Term
Planning
Short Term
Planning / Control
1-year demand forecasts
Capacity requirements
Capacity plan
Medium Term
24. >KEY IDEAMEDIUM-TERM planning looks up to
TWO YEARS ahead to resolve how to provide capacity to meet
forecast demand
Planning and managing capacity
Resource planning
TYPES OF CAPACITY PLAN
LEVEL capacity
CHASE demand
MIX plan
Planning and managing capacity
Resource planning
25. Planning and managing capacity
Resource planning
Planning and managing capacity
Resource planning
Planning and managing capacity
Resource planning
Planning and managing capacity
Managing demand
Changing the PATTERN of demand
Alternate PRICING
ADVERTISING
Offering COUNTER seasonal services or products
SCHEDULING
RESERVATIONS or APPOINTMENTS
Fixed SCHEDULES
26. ADVERTISING
EDUCATING customers
Managing UNCERTAINTY
FORECASTS vs known orders
Planning and managing capacity
Managing capacity
Short-term capacity ADJUSTMENTS
OVERTIME
TEMPORARY staff
FLEXIBLE capacity
FLEXIBLE staff
PART-TIME or TEMPORARY staff
SHIFT patterns
STAGGERED working hours
Changing capacity FORM and NATURE
ANNUALISED hours
SUBSTITUTING capacity by technology/customers
SUBCONTRACTING
>KEY IDEATaking actions to change DEMAND patterns and
change the shape of CAPACITY are key tasks when managing
these resources
27. Planning and managing capacity
Type of capacity and demandChairsTablesWaiting
staffEquipmentFoodChefsAir spaceAir traffic
controllersEquipmentAssembly workersNumber of
planesNumber of customersNumber of ordersNumber of
widgetsQuestionAir
trafficRestaurantKitchenFactoryCapacityDemand
Planning and managing capacity
Managing capacity and demandPart-time / Temp staffStaggered
workingOvertime / ShiftsFlexible staffOvertimeShift
patternsHigh automationShift patternsAlternate
pricingReservationsFixed schedulesAlternate
pricingReservationsFixed schedulesQuestionAir
trafficRestaurantKitchenFactoryManaging capacityManaging
demand
29. Alex Hill and Terry Hill
Learning objectivesRecognise the TECHNICAL and BUSINESS
requirements to be met when delivering servicesUnderstand the
CHARACTERISTICS of service operationsIdentify the
CATEGORIES of service and TYPES of service delivery
systemExplain how to DESIGN service delivery
systemsUnderstand how IT impacts service delivery
Lecture outlineINTRODUCTIONFactors affecting SERVICE
DELIVERY design DESIGNING the service delivery
systemCritical REFLECTIONSSUMMARY
Factors affecting service delivery system design
SERVICE COMPLEXITY
THE
30. MARKET
NUMBER OF STEPS
Single
Multiple
TECHNICAL requirements
The service itself
BUSINESS requirements
Volumes
Order-winners & qualifiers
Case studies:Great Nuclear FizzleLloyds BankMcDonald’sPrêt a
Manger
Film clips:Breakfast at Tiffany’sFive Easy Pieces
>KEY IDEAAs services differ, so will the DESIGNS of their
delivery systems
Case studies:Great Nuclear FizzleLloyds BankMcDonald’sPrêt a
Manger
Film clips:Breakfast at Tiffany’sFive Easy Pieces
Characteristics of service operations
Factors affecting service delivery system design
MIX of services and products
31. INTANGIBLE nature
SIMULTANEOUS provision and consumption
TIME-DEPENDENT capacity
CUSTOMERS can help deliver the service
Need to MANAGE CUSTOMERS
No PATENTS
Case studies:Great Nuclear FizzleLloyds BankMcDonald’sPrêt a
Manger
Film clips:Breakfast at Tiffany’sFive Easy Pieces
>KEY IDEAServices are PROVIDED and CONSUMED at the
same time. They CANNOT be stored
Case studies:Great Nuclear FizzleLloyds BankMcDonald’sPrêt a
Manger
Film clips:Breakfast at Tiffany’sFive Easy Pieces
Understanding how services differ
Factors affecting service delivery system design
KEY DIFFERENCES
Level of TECHNOLOGY used
NATURE of service being delivered
Complexity of service
What is being processed
TYPE of service being delivered
32. Professional, Service shop or Mass service
BUSINESS requirements
Volumes
Order-winners and qualifiers
Understanding how services differ
Factors affecting service delivery system design
Understanding how services differ
Factors affecting service delivery system design
Understanding how services differ
Factors affecting service delivery system design
>KEY IDEAThe delivery system processes
CUSTOMERS, CUSTOMER SURROGATES, PRODUCTS,
INFORMATION
33. or some COMBINATION of these
Designing the service delivery system
Overall design
Understand MARKET volumes, order-winners and qualifiers
Identify the service ENCOUNTER and EXPERIENCE to be
delivered
Understand how to RETAIN customers
Designing the service delivery system
Overall design
Designing the service delivery system
Overall design
34. Designing the service delivery system
CUSTOMER INTERFACE
Service delivery
BACK OFFICE activities
FRONT OFFICE activities
Designing the service delivery system
Service delivery
Line of
visibility
FRONT OFFICE
No CUSTOMER CONTACT
Easier SCHEDULING
Higher processing VOLUMES
BACK OFFICE
FACILITIES represent organisation
Easier to manage QUEUE lengths
Involve CUSTOMERS in delivery
Wider STAFF ROLES
Designing the service delivery system
35. CUSTOMER INTERFACE
Service delivery
BACK OFFICE activities
FRONT OFFICE activities
Number of STEPS
Single vs Multiple
TYPE of delivery system
Non-repeat vs Repeat
Low volume vs high volume
DELIVERY SYSTEM
Designing the service delivery system
Service delivery
Designing the service delivery system
Other factors
ENHANCING services
36. Use of IT in service delivery
CUSTOMER participation in service delivery
Designing the service delivery system
Other factors
Service DELIVERY SYSTEMS must be:ALIGNED to its market
ORDER-WINNERS and QUALIFIERSREFLECT its internal
BUSINESS requirementsINCORPORATE IT and other
DEVELOPMENT opportunitiesCustomers become MORE
PROFITABLE the longer you RETAIN them
Critical reflections
Critical reflections
Critical reflections
37. Critical reflections
SummaryServices have distinctive
CHARACTERISTICSIntangible and perishableService delivery
systems must SUPPORTTechnical and business
requirementsTECHNICAL requirementsThe service
specificationBUSINESS requirementsVolumes and market
order-winners and qualifiers
Alex Hill and Terry Hill
Learning objectivesRecognise the levels at which DECISIONS
about location must be madeUnderstand the background ISSUES
that affect the choice of location for an operationDescribe the
TECHNIQUES for choosing a location and explain how they
workOutline the FACTORS that influence the choice of
layoutOutline the FEATURES of each basic type of
38. layoutExplain the process of layout DESIGN
Lecture outlineChoosing a LOCATIONChoosing a
LAYOUTCritical REFLECTIONSSUMMARY
DECIDING WHERE TO LOCATE
Choosing a location
Size of the INVESTMENT
The FIXED NATURE of the choice
The UNCERTAINTY of the future
>KEY IDEAOnce chosen, many organisations
NEVER CHANGE location
39. Choosing a location
Levels of decision
CHOOSING THE
CONTINENT or REGION
COUNTRY
AREA or CITY
SITE
>KEY IDEAThe number of LEVELS and FACTORS involved
differ DECISION by DECISION
Choosing a location
Background factors influencing location decisions
The ORIGIN of existing location decisions
POLITICALLY based constraints
TECHNOLOGY developments
NEW COUNTRIES are opening up
Market ACCESS or local PRESENCE in large consumer markets
CURRENCY value fluctuations
40. Choosing a location
Factors affecting the choice of location
A well developed INFRASTRUCTURE
Proximity to MARKETS
Proximity to SUPPLIERS
Hospitable BUSINESS CLIMATE
Availability of STAFF
Quality of LIFE for employees
VARIABLE COSTS
FIXED COSTS and INVESTMENTS
Favourable GOVERNMENT policies
Proximity to CUSTOMERS
Choosing a location
Factors affecting the choice of site
FACILITIES for staff and customers
Building’s DESIGN
RENTAL costs and local taxes
SPACE
Proximity to SUPPORT SERVICES
Room for EXPANSION
Level of cutsomer TRAFFIC
VISIBILITY to customers
Proximity to CUSTOMERS
Proximity to COMPETITORS
41. Choosing a location
Factors affecting the choice of site
Choosing a location
Site location techniques
WEIGHTED factor
Centre of GRAVITY
Choosing a location
Site location techniques
Choosing a location
Site location techniques
42. Chosen a LOCATION
Choosing a layout
Choose a LAYOUT
Choosing a layout
Factors influencing layout
Core TASK
Available SPACE
Making space for future EXPANSION and layout changes
HEALTH and SAFETY
Choosing a layout
Basic types of layout
FIXED position
PROCESS or FUNCTIONAL
SERVICE or PRODUCT
43. >KEY IDEAThe BASIC TYPES of layout are:
FIXED POSITION,
PROCESS or FUNCTIONAL and
SERVICE or PRODUCT
Choosing a layout
Basic types of layout
Choosing a layout
Basic types of layout
Choosing a layout
44. Basic types of layout
Choosing a layout
Basic types of layout
Low
VOLUME
High
High
VARIETY
Low
Choosing a layout
Service or product type, process and layout
Ask students to position each service or product from the film
clips on the graph above – see the lecturer zone for printouts.
Choosing a layout
Service or product type, process and
layoutQuestionGovernmentAeroplaneCarPit StopService or
productProcessLayout
45. Ask students to watch the film and fill out the table above.
Low
VOLUME
High
High
VARIETY
Low
Choosing a layout
Service or product type, process and layout
Car
Areoplane
Government
Pit stop
Repeat
high-volume delivery system
Project manufacturing process
Process or functional
Fixed position
Mass product
46. Product
Service shop
Special product
Made on-site
Line manufacturing process
Repeat
low-volume delivery system
Cell
Service shop
Choosing a layout
Service or product type, process and
layoutQuestionGovernmentAeroplaneCarPit stopService or
productProcessLayout
Choosing a layout
Detailed layout design
Choosing a layout
47. Detailed layout design
The choice of location and layout significantly impacts COSTS
and SALESTherefore, they must clearly reflect the NEEDS
ofCUSTOMER and MARKET (external)BUSINESS (internal)In
particular, the CHOICE of location is:DIFFICULT to
changeLARGE and FIXED investment
Critical reflections
SummaryTASKS of deciding location and layoutDistinct, but
relatedDecisions need to be made at a number of
LEVELSContinent/region, country, area/city and siteVarious
FACTORS impact the choice of locationExiting sites,
proximity, political, economic, etcThree basic TYPES of
layoutFixed position, process or functional, service or product
49. STEPS required to
Turn INPUTS
Into OUTPUTS
VOLUMES
MARKET
ORDER-WINNERS
QUALIFIERS
BUSINESS
REQUIREMENTS
>KEY IDEAManufacturing processes need to meet both
TECHNICAL and BUSINESS requirements
Factors affecting manufacturing process design
Categories of product
50. Factors affecting manufacturing process design
Categories of product
Factors affecting manufacturing process design
Types of manufacturing process
Developing a strategy
Understanding customer requirementsMade ON-SITEResources
BOUGHT TO SITESPECIAL, non-repeatONE PERSON or
SMALL GROUPSTANDARD, repeat low to high volumeHas to
be RESET for each batch of products madeMASS, repeat high
volumeDOES NOT have to be reset for different
productsMASS, repeat very high volumeProcess runs
CONTINUOUSLY and never stopsProcess
typeProductProcessProjectJobbingBatchLineContinuous
processing
51. Designing the manufacturing process
Process choices
Designing the manufacturing process
Process choices
Designing the manufacturing process
Process choices
52. >KEY IDEAUse the words FLEXIBLE and AGILE with care as
they have many DIFFERENT MEANINGS and, therefore, can
be misleading
Designing the manufacturing process
Implications of process design
Hybrid processes
Cells
54. Less FLEXIBLE
Lower equipment UTILISATION
>KEY IDEACELLS are a commonly used
HYBRID PROCESS
Making products
Product category and process type
Made on-site Special Mass StandardProjectResources moved
to site Line High volume Don’t reset Special One-off
Jobbing Small group
Making products
Product category and process
typeQuestionBirdCarRestaurantPRODUCT categoryPROCESS
type
56. Case studies:Great Nuclear FizzleLloyds BankMcDonald’sPrêt a
Manger
Film clips:Breakfast at Tiffany’sFive Easy Pieces
Operations Strategy
Alex Hill and Terry Hill
Learning objectivesUnderstand LEVELS of strategy within
businessDistinguish between day-to-day and strategic
ROLESIdentify how different levels of strategy INTERFACE
with each otherAppreciate importance of understanding
MARKETSUnderstand different strategic
APPROACHESDEVELOP and IMPLEMENT an operations
strategy
Lecture outlineINTRODUCTIONWhat is STRATEGY?LEVELS
of strategy within a businessDEVELOPING a
strategyIMPLEMENTING a strategyCritical
REFLECTIONSSUMMARY
57. What is strategy?
DIRECTION
WHAT to do
What is strategy?
HOW to do it
IMPLEMENTATION
DIRECTION
WHAT to do
>KEY IDEAOperations strategy concerns developing the
CAPABILITIES of an organisation to reflect the NEEDS of its
customers and markets
Levels of strategy
58. CORPORATE
Levels of strategy
CORPORATE
BUSINESS UNIT
FUNCTIONAL
Levels of strategy
CORPORATE
BUSINESS UNIT
Corporate
DIRECTION OF TOTAL BUSINESS
IMPLEMENTATION
Levels of strategy
Where to INVEST or DIVEST
SALES REVENUE priorities
59. Allocation of investment FUNDS
DIRECTION OF BUSINESS UNIT
Levels of strategy
Business unit
MARKETS in which it competes
Where to GROW its business
Nature of COMPETITION
Relevant COMPETITIVE CRITERIA
WHICH functional tasks to invest in
HOW to invest in these tasks
IMPLEMENTATION
DIRECTION OF FUNCTION
Levels of strategy
Functional
IMPLEMENTATION
Support COMPETITIVE DIMENSIONS within a market for
which it is solely
or partly RESPONSIBLE
60. Meeting competitive REQUIREMENTS
Selecting APPROACHES to attain improvement goals
Implement the PLAN
Levels of strategy
Functional
Levels of strategy
Functional
Developing a strategy
61. Developing a strategy
Developing a strategy
Developing a strategy
>KEY IDEAUnderstanding MARKETS is the FIRST step in
strategy development
Developing a strategy
Understanding customer requirements
62. >KEY IDEACustomer PURCHASES are not only based on the
service or product specification, but also a wide RANGE of
CRITERIA such as price, delivery speed and quality
conformance
Developing a strategy
Understanding customer requirements
QUALIFIERS
ORDER-WINNERS
WIN you the order once
you are on the shortlist
Get and keep a service or product on
a customer’s SHORTLIST
>KEY IDEAUnderstanding CUSTOMER requirements:
AVOID general descriptions
IDENTIFY and WEIGHT order-winners and qualifiers
63. >KEY IDEAAll functions must be involved in the discussion on
HOW to GAIN, RETAIN and GROW CUSTOMERS and
MARKETS
A recap of the operations process is valuable at this point
Developing a strategy
Operations processOperations processPit
stopFactoryRestaurantTRANSFORMED resourcesMaterials
Information
CustomersTRANSFORMING resourcesFacilities
StaffOUTPUTSGoods
Services
64. This table can be used to frame a discussion, or printed for
students to fill in during the clips
Developing a strategy
Understanding customer requirementsKey market
requirementsPit stopFactoryRestaurantORDER-
WINNERSQUALIFIERS
This table can be used to frame a discussion, or printed for
students to fill in during the clips
Developing a strategy
What is the OPERATIONS process?What are the key MARKET
requirements?
[play the clips from Le Mans, Modern Times and Dinner Rush]
While students are watching the clips, ask them to think about
65. the questions shown above
Developing a strategy
Operations processOperations processPit
stopFactoryRestaurantTRANSFORMED resourcesMaterials
Information
CustomersTRANSFORMING resourcesFacilities
StaffOUTPUTSGoods
Services
Car Rain tyres Raw material Pit stop Mechanics Spanners
Car with rain tyres Factory Production line Operator
Spanner Widget Raw material Order details Customer
Restaurant Kitchen Equipment Chef Waiter Food Drink
Service
Developing a strategy
Operations processOperations processPit
stopFactoryRestaurantTRANSFORMED resourcesMaterials
Information
CustomersTRANSFORMING resourcesFacilities
StaffOUTPUTSGoods
67. Developing a strategy
Understanding customer requirements
>KEY IDEAUnderstanding CUSTOMER requirements:
AVOID general descriptions
IDENTIFY and WEIGHT order-winners and qualifiers
What is strategy?
DIRECTION
WHAT to do
What is strategy?
HOW to do it
IMPLEMENTATION
DIRECTION
68. WHAT to do
Developing a strategy
The process of strategy development
Developing a strategy
The process of strategy development
Developing a strategy
The process of strategy development
69. >KEY IDEAUnderstanding MARKETS is DIFFICULT
Identifying SOLUTIONS is EASY
Making it HAPPEN is DIFFICULT
Developing a strategy
The process of strategy development
Developing a strategy
The process of strategy development
Developing a strategy
The process of strategy development
Alternative APPROACHESTOP-DOWN vs BOTTOM-
UPMARKET-DRIVEN vs MARKET-DRIVING
Developing a strategy
Top-down approach
70. FUNCTIONAL
CORPORATE
BUSINESS UNIT
Day-to-day EXPERIENCES and LEARNING
Consolidated into formal STRATEGY
Developing a strategy
Bottom-up approach
EMERGING sense of what strategy should be
Developing a strategy
Market-led orientation
MARKET DRIVES OPERATIONS
MARKET
OPERATIONS
Developing a strategy
Market-driving orientation
OPERATIONS DRIVES MARKET
71. MARKET
OPERATIONS
Developing a strategy
Alternative approaches
What are their strategic OBJECTIVES?What is their
STRATEGY to achieve these objectives?What APPROACH has
been used to develop and implement this strategy?
Ask students to think about the three points above while
watching the clip from each film
Developing a strategy
Alternative approachesAspectPrison CampRestaurantStrategic
OBJECTIVESSTRATEGY for meeting these
objectivesPROCESS of developing and implementing strategy
Developing a strategy
72. Alternative approachesAspectPrison CampRestaurantStrategic
OBJECTIVES ESCAPE from the camp
Get 250 men out Make MONEY
Produce GOOD FOODSTRATEGY for meeting these objectives
Create SMOKE SCREEN
DIG 3 TUNNELS PRIMO
Market-driving
Resource-based
CRISTIANO
Market-driven
Market-ledPROCESS of developing and implementing strategy
TOP-DOWN
PLANNED
BOTTOM UP
EMERGENT
Critical reflectionsOperations helps gain FIRST sale whilst also
securing the SECOND saleMARKET or marketing-led?Moving
to a BUSINESS-LEVEL strategic debate
73. Critical reflections
>KEY IDEAOperations help GAIN first sale
Whilst SECURING second sale
SummaryWhat is STRATEGY?Direction and
ImplementationLEVELS of strategyCorporate - Business -
FunctionalStrategy DEVELOPMENTUnderstand marketDevelop
capability to support or drive marketMarket
REQUIREMENTSOrder-winners and QualifiersAPPROACH to
developing strategyTop down vs Bottom upMarket-led vs
Resource-based
Alex Hill and Terry Hill
74. Learning objectivesAppreciate the ROLE of new service and
product development as the lifeblood of an organisationIdentify
the alternative STRATEGIES in service and product
innovationDifferentiate between LONG-TERM and TACTICAL
programmesList the STEPS involved in designing and
developing services and productsSelect from and use a range of
TECHNIQUES related to service and product design
Lecture outlineINTRODUCTIONDESIGNING and
DEVELOPING services and products TECHNIQUES for
improving designCritical REFLECTIONSSUMMARY
Designing and developing services and products
Is there DEMAND for the proposed services and products?
Can they be
DESIGNED and DELIVERED?
75. ALTERNATIVE STRATEGIES
The research and development process
Designing and developing services and products
FIRST-TO-MARKET cutting edge
FAST-FOLLOWER quick response
ME-TOO imitate
LATE-ENTRANT delayed response
The research and development process
LONG-TERM PROGRAMMES
TACTICAL PROGRAMMES
Designing and developing services and products
RESEARCH
Fundamental
Applied
DAY-TO-DAY
Design
Develop
Launch
>KEY IDEAResearch and development combines
LONG-TERM and TACTICAL programmes
76. The design and development process
Designing and developing services and products
>KEY IDEADuring the design and development process,
organisations need to use both EXTERNAL and INTERNAL
sources to generate ideas
The design and development process
Designing and developing services and products
INTERNAL SOURCES
EMPLOYEES
SERVICE or PRODUCT research and development
MARKET research
SALES force
Reverse ENGINEERING
77. EXTERNAL SOURCES
The design and development process
Designing and developing services and products
CUSTOMERS
SUPPLIERS
LEGISLATIVE requirements
ENVIRONMENTAL concerns
TECHNOLOGICAL advances
Reviewing the service and product mix
Designing and developing services and products
>KEY IDEAAssessing where services/products are in their LIFE
CYCLE helps when FORECASTING sales revenue
>KEY IDEAService/product PORTFOLIO ANALYSIS helps
78. pinpoint those services or products with the greatest potential
SALES REVENUE and CASH generation
Developing a specification
Designing and developing services and products
FACTORS TO CONSIDER
The NATURE of services and products
Developing SPECIFICATION to reflect the service/product mix
The EXPLICIT BENEFITS of the offering
The IMPLICIT BENEFITS of the offering
The supporting structural FACILITIES
>KEY IDEAThe service/product SPECIFICATION offered is
made up of explicit and implicit BENEFITS plus supporting
structural FACILITIES
79. Techniques for improving design
STANDARDISATION
MODULAR design
Mass CUSTOMISATION
TAGUCHI methods
Quality functional deployment (QFD) and the house of quality
VALUE analysis
Simultaneous ENGINEERING
VARIETY reduction
Techniques for improving design
Quality functional deployment (QFD)
Establish CUSTOMERS’ NEEDS and wants
Establish customers’ VIEW OF COMPETITORS
Identify TECHNICAL REQUIREMENTS
Identify LINKS between technical requirements and their effect
on different customers’ need and wants
Complete TECHNICAL COMPARISONS
Evaluate the TRADE-OFFS for different design features
>KEY IDEAQuality functional deployment links CUSTOMER
80. NEEDS to
OPERATIONS REQUIREMENTS
Techniques for improving design
Quality functional deployment (QFD)
Techniques for improving design
Quality functional deployment (QFD)
Techniques for improving design
Value analysis
Select the SERVICE or PRODUCT
Gather INFORMATION about it
Analyse its FUNCTION and VALUE for money
Identify ALTERNATIVE ways to provide the same function
Assess the WORTH of these ideas
DECIDE what is to be done
IMPLEMENT the decisions
81. Evaluate the RESULTS
>KEY IDEAValue analysis is a systematic approach to
REDUCING COSTS without reducing the service or product
specification
Should the RANGE be reduced?
Analysis of current SERVICES and PRODUCTS provided
Techniques for improving design
Variety reduction
POTENTIAL ADVANTAGES
Techniques for improving design
Variety reduction
Less DOWNTIME through fewer changeovers
Less INVESTMENT in plant and equipment
Lower INVENTORY
Less SALES EFFORT
82. Less AFTER-SALES support
Easier PLANNING and SCHEDULING
Better use of RESOURCES
>KEY IDEANew service and products are the LIFEBLOOD of a
business
Innovation starts with understanding the
CUSTOMEREncouraging CREATIVITY is only part of the
solutionNeed to clearly link INNOVATION with corporate
SUCCESSInnovation concerns NOT ONLY R&D, but all
aspects of a businessNeed to CONTINUALLY look to improve
and develop services and productsInnovation involves
EVERYONE and covers EVERYTHING
Critical reflections
SummaryNew service and product INTRODUCTIONLifeblood
of a businessINNOVATION concernsBreakthrough and
incremental developmentsMost companies will sell
TOMORROW what they sold TODAYNeed to rethink what they
do todayIDEAS should come fromInternal and external sources
83. Managing Operations
Alex Hill and Terry Hill
Learning objectivesExplain ROLE of operations management in
an organisationAppreciate the dimensions that make up the
operations management TASKIdentify where the operations
management FUNCTION fits within an organisationIllustrate
the crucial role of operations management in organiational
SUCCESS
Lecture outlineINTRODUCTIONWhat operations management
DO?Variations in the operations management ROLESERVICES
vs MANUFACTURINGCritical REFLECTIONSSUMMARY
84. What does Operations Management do?
Manages PEOPLE, MATERIALS, RESOURCES and
DELIVERY SYSTEMS
To deliver SERVICES and PRODUCTS
that have been sold to CUSTOMERS
>KEY IDEAOperations delivers the SERVICES and
PRODUCTS that have been sold to CUSTOMERS
>KEY IDEAOperations delivers services and products to
customers by MANAGING the PEOPLE, MATERIALS,
RESOURCES and DELIVERY SYSTEMS involved
What does Operations Management do?
How operations management fits into an organisation
ORGANISATIONS NEED TO
SELL services or products to customers
85. DESIGN services or products
PURCHASE materials and/or services
DELIVER the services or products to meet customer needs
ACCOUNT for the cash or credit transactions involved in the
above
What does Operations Management do?
How operations management fits into an organisation
OPERATIONS IS RESPONSIBLE FOR
SELLING services or products to customers
DESIGNING services or products
PURCHASING materials and/or services
DELIVERING the services or products to meet customer needs
ACCOUNTING for the cash or credit transactions involved in
the above
What does Operations Management do?
How operations management fits into an organisation
What does Operations Management do?
86. To deliver SERVICES and PRODUCTS
that have been sold to CUSTOMERS
Manages PEOPLE, MATERIALS, RESOURCES and
DELIVERY SYSTEMS
The role of operations management
What does Operations Management do?
The role of operations management
DAY-TO-DAY role
STRATEGIC role
CONTENT
INTERNAL role
EXTERNAL role
STYLE
>KEY IDEADAY-TO-DAY role of operations include:
Managing within BUDGETS
SCHEDULING
SERVING customers
Meeting OUTPUT targets
Communicating with other FUNCTIONS
87. >KEY IDEASTRATEGIC role of operations include:
Supporting market ORDER-WINNERS and QUALIFIERS
Making company COMPETITIVE
What does Operations Management do?
The role of operations management
What does Operations Management do?
MANAGE
The role of operations management
Large COST centre
PEOPLE
TECHNOLOGY
SHORT and LONG term
Links THINKING and DOING ends of the business
88. >KEY IDEAManagers need to THINK and WORK in:
SHORT-TERM
LONG-TERM
What does Operations Management do?
The role of operations management
>KEY IDEAOperations:
CONTRIBUTES to gaining FIRST sale
PROCURES SECOND sale
89. What does Operations Management do?
Inputs and outputs
What does Operations Management do?
Inputs and outputs
Variations in the operations management role
Variations in complexity
DEPENDING ON
SIZE of organisation
Service or product VOLUMES
RANGE of services or products sold
TECHNOLOGY required to deliver them
Number of operations IN-HOUSE
What is being PROCESSED
90. >KEY IDEAOperations may PROCESS:
CUSTOMERS
CUSTOMER SURROGATES
INFORMATION and/or
PRODUCTS
Variations in the operations management role
Variations in complexity
Variations in the operations management role
Variations in output - services versus products
>KEY IDEAThe operations OUTPUT can be:
SERVICES (intangible) and/or
PRODUCTS (tangible)
91. Variations in the operations management role
Variations in output - services versus products
Variations in the operations management role
Variations in output - services versus products
DEPENDING ON
Nature of the OFFERING
Level of CUSTOMER involvement
Operations CAPACITY
ORGANISATIONAL arrangements
QUALITY control
COMPETITIVE environment
>KEY IDEASERVICES are CONSUMED as they’re provided
whereas most PRODUCTS can be made in advance and
STORED
92. Operations manager’s ROLE is both:Demanding, challenging,
absorbing and satisfying; andFrustrating and complexDAY-TO-
DAY task requires physical effortDifficult to BALANCE day-
to-day and strategic roleGood management of operations is key
to an organisation’s SUCCESS
Critical reflections
Critical reflections
SummaryDifferent SECTORSServices vs ManufacturingTASK
of operations manager is the sameDifferent focusOperations
TRANSFORMSInputs into outputs that are sold to
customersCritical to overall SUCCESS of an
organisationManages 60-70% of people, assets and costs
Pull out points above through discussion…
Make MONEY
Produce GOOD FOOD
Faculty of Business and Law
MODULE NAME: Supply Chain Operations Management
93. Module Code
Level
Credit Value
Module Leader
6
20
Assignment Brief
Assignment title:
Assignment 2
Deadline:
Feedback and Grades due:
30/07/19
Resit Date
TBC
Please read this assessment brief in its entirety before
attempting your assignment.
94. Assessment Breakdown
Company A:
A manufacturing organisation which supplies the construction
industry is currently reviewing its manufacturing processes in
order to improve production, reduce lead-times and increase
customer response. This is an attempt to keep up with demand
and increased customer requirements.
The organisation manufactures Door Hinges from different raw
materials as the main product, as well as other ironmongery
products which are fitted to doors.
The product specification and order sizes can vary from batch to
batch depending on customer requirement. On average 50% of
the product output is made up of standard sizes which can be
stocked and the other 50% are specific sizes and specific raw
materials which are specified at the point of the customer
placing the order. Raw materials have long lead-times but can
be obtained from several different suppliers.
Customers expect the manufacturing company to deliver
products within a short lead-time and this is due to the fact that
doors are fitted at the end of the construction process. An
additional issue is that the purchasing of these products can be
overlooked until a few weeks of the building completion hence
late orders come in all the time.
Company B:
Company B is also looking to improve its manufacturing
process in order to increase competition in the market as well as
reduce inventory costs and have a better managed cash flow
(capital management).
The organisation is currently holding high levels of inventory
95. and in contrast to organisation A, organisation B has a small
number of variation on the manufactured products as well as a
more consistent order size.
Despite the fact of having a good forecast from its customers,
organisation B still has lead-time issues and parts are
accumulating all around the shop floor due to the high number
of works in progress (WIP).
Your task
Give a brief description of lean versus agile supply chains
identifying which strategy would apply to which organisation
and why (25%)
Identify the benefits and pitfalls of each strategy giving
examples from the real world (25%)
How could these strategies be implemented by either company
A or B and what considerations need to be made in each case
(25%)
Give a real world example of an organisation that has
successfully implemented one (or both) of these strategies and
evaluate the success it has achieved since implementation of the
strategy (25%)
Learning Outcomes
The learning outcomes that are being assessed in this
assignment are:
a. Apply and reflect critically on the Supply Chain Management
Models as a basis for effective resource management.
b. Distinguish between key supply chain concepts and
96. techniques and apply appropriate ones for controlling and
planning cross functional operations.
c. Evaluate and synthesise the various definitions of quality in
an operational context and identify opportunities for quality
improvement.
d. Demonstrate an ability for problem-solving in complex
scenarios.
Your grade will depend on the extent to which you meet these
learning outcomes in the way relevant for this assignment.
Please see the grading rubric at the end of this assignment brief
for further details of the criteria against which you will be
assessed.
Word Limit
The maximum word limit for this assignment is 2,400 words
In accordance with the, as stated in section 4.40 where a
submission exceeds the stipulated word limit by more than 10%,
the submission will only be marked up to and including the
additional 10%. Anything over this will not be included in the
final grade for the assessment item. Abstracts, bibliographies,
reference lists, appendices and footnotes are excluded from any
word limit requirements.
In line with section 4.41 of the same Policy, where a submission
is notably under the word limit, the full submission will be
marked on the extent to which the learning objectives have been
met.
97. GRADE CRITERIA:
Rubric Assignment 2:
Learning Outcomes addressed through this assignment
No submission / no evidence
F
D
C
B
A
Work submitted is of no academic value / nothing submitted
Evidence included or provided but missing in some very
important aspects.
Of satisfactory quality, demonstrating evidence of achieving the
requirements of the learning outcomes
Of sound quality, demonstrative which is sufficient and
appropriate to the task or activity
Of high quality, demonstrating evidence which is rigorous and
convincing, appropriate to the task or activity
Of very high quality, demonstrating evidence which is strong,
robust and consistent, appropriate to the task or activity
Distinguish between key supply chain concepts and techniques
and apply appropriate ones for controlling and planning cross
functional operations.
Falls well short of the threshold standards in relation to one or
more area of knowledge, intellectual, subject based or key skills
Knowledge base is coherent and of appropriate depth/detail for
the field of study, including an awareness of current theories
and issues
A firm, detailed/ comprehensive knowledge base for the field of
98. study and its developing and provisional nature, including a
good grasp of current theories and issues both abstract and
practical
Strong comprehensive/detailed knowledge base for the field of
study, including an assured grasp of concepts, principles and
major theories. Some awareness of the provisional nature of
knowledge
Rigorous, comprehensive and detailed knowledge base,
including awareness of the provisional nature of knowledge.
Evaluate and synthesise the various definitions of quality in an
operational context and identify opportunities for quality
improvement.
Insufficient evidence of the ability to sustain valid argument,
critically evaluate evidence from a range of sources, transfer or
apply skills to solve problems in relation to threshold standards
of competence.
Primarily derivative, with limited evidence of
autonomous/creative analysis, synthesis, and evaluation or
application.
Some evidence of the ability to analyse new or abstract,
synthesise data/concepts, critically evaluate and apply
appropriate methods/techniques
Evidence of considered and confident analysis of new/abstract
data/situations, synthesis of data/concepts, critical evaluation of
evidence and effective application of knowledge skills to
address complex problems
Sustained ability to engage in analysis of new/abstract data and
situations, with confidence and authority in application.
Demonstrate an ability for problem-solving in complex
scenarios.
Major deficiencies in knowledge of wider context and
implications.
Limited knowledge of wider context and implications.
Some understanding of wider context and implications
99. Good understanding of wider context and implications
Detailed understanding of wider context and implications
2