Discuss about the Operations Management for Supply Chain Management.
The concept of operation management and supply chain management is the vital part of the success of any business. It is because it is concerned regarding the processes of designing and controlling of the business operations of the organization. It also further involves the development of the responsibility that helps in ensuring the efficient operation in the business processes with having a good supply management. This case study provides the description of a manufacturing company that is running on a small scale, and before that, it has gained a good reputation in the market for the creativity and quality of its designs. In this process, it aims towards the production of custom designed furniture (Bahmani & Azizipanah, 2014). With getting the regular success in the wood furniture business, the organization grow out with its branches by making the production of standard furniture in the market and also making the provision to sell to the retail outlets. Also, the branch diversification leads to putting some pressure on the organization that eventually exerts pressure on the all the production processes to the supply processes. It has its impact on the supply of the products in the market. Therefore the case study in this paper says about the reviewing of the decisions which he has made during the operational management also, the paper deals with the issues that are affecting the operations of internal manufacturing processes along with its respective relationship with the functional aspects of the organization (Copil, Truong & Dustdar, 2015). Due to this reason, the paper will help in exploring the operational decisions which Mr. Chad Thomas is facing in the today’s business condition. Along with there will have the clarification of the solutions that Chad Thomas could have done which would help him in avoiding the raised issues that he is facing currently (Guanghong, 2012)
Kind of Operating Decisions being Faced by Chad Thomas’ Business Today
It is no doubt very difficult to run an organization which requires perfect judgment capacity in judging the efficiency of the judgment that will help in the success of the organization. In the today’s business environment it is important to perfectly detect the raised issue in the development of the business. In the current situation of today’s business, Mr. Chad Thomas is facing the issues in the case of its manufacturing and turn over (Helleno et al., 2015). The issues in the manufacturing and turn over sector have great impact on the furniture business. It clearly indicates that in today’s business Chad Thomas went through the solutions by focusing on the scheduling, inventory, capacity and the layout (Kavousi?Fard, Niknam & Baziar, 2015). By acquiring these decisions, Chad Thomas decided to cope with the business situations. He went through the scheduling part with the consent to get the perfect idea regarding the raw material. It makes sure regarding the availability of the raw materials for the progress status in work. That is the reason the standard line for this purpose needs to be taken properly that will help in avoiding the issue (Li, Li & Feng, 2014). Also, the business status continues with the status that warehouse of the standard product is quite costly which will create some hindrances in the supply chain of the products in the company. That is the reason the required features are taken out to go through the measures for the reduction of the inventory mechanisms. This reduction is done by making the perfect decision in the context of processes of supply chain and along with that having the implementation of such processes. In this process, Chad Thomas noticed that there continue the demand and growth of the business with due course of time. It gained a lot of consideration in the market from the public regarding its quality and creativity. That is the reason he had taken the decision to enhance the productivity by increasing the capacity of the workforce that will help in accommodating the supply in the market as per the demand of the market. It will be further helpful for both the product lines of the company (Niknam, Golestaneh & Malekpour, 2012). As due to this, he took the decision of separating the production lines after the process of increased capacity of the company. This decision of Chad Thomas needed to be taken care of as this will make him successful in attaining to run the short term business. This can be done with proper strategic planning and management that will help in attaining the long-term operations of the company (Parisio & Glielmo, 2013). Chad is facing the scheduling, inventory, capacity and layout decisions that he has taken for the successful development of the business just because he lacked in the strategic management during the implementation of the processes. That is the reason it can be said that Chad need to go through the strategies that he thinks can be helpful in attaining the goals of the company. At the same time, Chad has taken few more decisions that also affect today’s business. Chad made the most important consideration criteria to identify the capability and production of the organization. Next to that he decided to design something new that can help in optimizing the capacity and production of the firm. Similarly the last part is the formulation of plans to get an eye over the production in monthly, weekly and daily basis. Therefore that is the reason Chad took the decision in management and scheduling of the human resources and other equipment for the successful development of the business (Stoppato, 2012). These strategic methods Chad has acquired due to which he has facing problems in the current scenario of business. His aim of satisfying the customers and the step of business diversification led him to this situation. In this process, he has also avoided many defected products from the mass production as the business get diversified, so it affected the quality of the products along with the performance of the product. It is clearly indicated from the situation of the company that Chad got more attentive regarding the increase of sales due to which he made the decision of diversification of the business (Shabanpour & Seifi, 2015). It is because he got the orders for the custom made, standard pieces and the low volume furniture pieces and the higher volume. In this process, Chad neglected the presence of types of equipment, raw material along with the production capacity in which the company is lacking. This made Chad rethink to have the hiring of more employees who can handle the situation in the company. The hiring of more employees in the organization will make to bring the situation of the company under control. Along with that Chad can also think of taking rent of a cheaper warehouse which will be helpful in some situations to handle the issues of the business. With due course of time, Chad Thomas needs to feel regarding the wholesome amount of money that is needed to make up to in the investment in the total inventory processes. The company also face the situation from the setting of the particular type of equipment in the investment to support the efficiency of production (Wakui et al., 2016). The processes that Chad Thomas has chosen for the successful development of his business will also bring out the need for the increase of the workforce in the organization. With the diversification of the business, the issues that Chad is facing is the maintenance along with the accommodating the both the product lines of the company which includes all the allocation decisions of the whole range of capacity and the equipment of the organization in both the product lines. In this situation, Chad needs an emergency of hiring more workforces that will be proven beneficial for the organization as this will enhance the skills and the capabilities within the organization (Zhang et al., 2016). Therefore though Cha Thomas took the decision regarding the diversification of the business for the successful development of the business but with due course of time, many challenges stood before him. These challenges must need to be cleared that will help in better and efficient development of the small scale business of Chad Thomas with the consistency of both strategic and operating decisions across the functional areas of the organization.
Things Thomas might have done Differently to Avoid some of the Problems he now Faces
As per the above mentioned caused it is clear that Chad Thomas faced a lot of issues after the diversification of the business which he has thought for the successful development of business. That is the reason Thomas must identify the issues that are raised and that are hindering the development as per their functional area. In the development of the business, Chad Thomas made many modifications in the organizations. It involves the modifications in its operational functions, finances, marketing and sales along with the distribution of the products of the company. Out of all these as discussed in the above section the company has many types of impacts relating to each of these functional areas. As Chad, Thomas is running a business that is of small scale which became prevalent in the market. Its popularity is due to its quality and its standards which it is taking care of (Qu et al., 2013). Therefore this outcome resulted in the increase in the popularity of the business and along with that the sale of the company also took a huge amount of increase. Later due to this Chad Thomas thought of increasing the scenario of business by taking effective steps in handling the priorities. That is the reason Thomas only thought of the increase in the sale of the products irrespective of the amount if equipment and the production capacity of the company (Shabanpour & Seifi, 2015). The increase of the sale of the products increased the demand of custom made, standard pieces, low volume furniture pieces and higher volume. Due to this, it made the Chad thought of expanding the business which let him acquiring more processes that increased the productive capacity of the company. With the increase in production, there will be the increase in the sale of the products. This condition led to the diversification of the business taking into consideration of modification in the scheduling, inventory, capacity and layout. This led to the situation where Thomas made the availability of the products in the retail outlet which also affects its quality. In this process, therefore, it can be said that different types of orders from different types of manufacturing requirements in the market getting into the competitive world for having the productive capacity. To carry on with this productive capacity, Chad Thomas needs to ensure the delivery date which also affects the workforce working in the organization (Niknam, Golestaneh & Malekpour, 2012). The sudden decision taken by Thomas no doubt increased the sale of the products in the market, but it raised many challenges in front of him. Few major issues raised are within the workforces that make the allocation of the resources and equipment along with the labour and money to bring out best in each product line of the company. The diversification of the business demands perfection in the products as the quality, and the standard is the most important factor for which the small scale business of Chad Thomas was popular for. This condition led the company in the manufacture of the standard furniture than that of the custom designed pieces. These changes are because of the demand of the public which also depends upon few more characteristics that needed to be taken care of. In this process, the quality is the important matter of concern along with the timely delivery and the low cost of the products. Therefore Chad Thomas thought of the modifications that will help in providing flexibility for the introduction of a standard line business. With due course of time, Thomas started the delivery of standard furniture which again raised some issue in the inventory investment and the operation of the costs. These two are the basic features during the marketing that will decide the profit margin of the company (Li, Li & Feng, 2014). It rose because there is having frequent changeovers due to the accommodation of the two product lines along with the conflicts in between their scheduling department. This problem resulted in the need of a ware house for the storage of standards furniture. To make sure regarding the concern about the issues there will have the addressing to the particular area. To figure out the issues of the company Thomas might think of some perfect solution that will affect the growth of the company (Parisio & Glielmo, 2013). Due to this issues or challenges, Thomas will be able to realize different types of requirements raised for the each of the product line. As there are two product lines, custom-based and standard furniture, therefore Chad Thomas in this situation might think about the situation to have his focus on the manufacturing facilities that will make provision for the designed production facilities to deal with the needs of the specific needs of each product line. Apart from the initial thought that will come to the mind of Thomas is to establish a plan that will help in control the growth of the product. Thomas will be able to carry out this procedure by developing the required infrastructure needed to manage in the company as per the need to control the growth. This will further ensure the control of the growth of both the product lines. With due course of time, this process will provide the idea regarding the products entering the market along with that the idea of the need for the development of the product lines. It will also provide the process to make sure regarding the proper process of development of the manufacturing processes. There will also be the enhancement of the capabilities of the manufacturing processes that will eventually increase the quality of the product. Another important part that will be figured out as Thomas might go for the maintenance of the focus of the organization in having the production of the custom designed furniture only (Shabanpour & Seifi, 2015). This thought of Chad Thomas will bring an end to the issues of mixed competitive priorities along with the scheduling conflicts.
The case study has shown the different types of situation that the operation manager can face in any organization as Chad Thomas is facing. The case study goes through all the processes that an operation manager will face during the establishment of the business or take any important decision for the growth of the business. Therefore by going through all the situation of the case study it came out that the customers of the standard line furniture are proved to be more price sensitive. In further situations, these customers only take out the issues imposing more stringent delivery. That is the reason the market value of the custom designed furniture is always more. Also, Thomas took out processes to bring out flexibility in the custom designed furniture. Chad Thomas brings out many developments that will make the successful development by overcoming each and every processes and hindrance that are coming in the way of the business. Therefore the case study presented Chad Thomas as the operation manager who is responsible for all the major decisions that are to be taken in the organization and again that will affect the success of the organization. Through the case study, it is hence proven that the operation manager must be aware of all the functional areas of the organization that will help him to make important decisions for the growth of the organization as done by Chad Thomas.
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