Operation Management Planning - Scheduling - and Controlling

Question: Discuss about the Operation Management for Planning, Scheduling, and Controlling. Answer: Introduction Hawkesbury Cabinets Pty Ltd is a company that helps in manufacturing and designing custom built kitchen cabinetry (White Pages - Search for an Australian Business, Government Department or Person, 2016). The company was founded by Fung and Mei Chen. The organization is facing many operational issues such as cost, inventory process, etc. The content of this essay comprises of current production system and its processes, the effect of the new builders and the organizational issues that are being created by the operational problems. Analysis and Discussion Current production system and processes of Hawkesbury Cabinets The company operates using a single manufacturing facility. The operation of the company that is provided in Mulgrave includes manufacture of both standard and custom kitchen cabinets (White Pages - Search for an Australian Business, Government Department or Person, 2016). The equipment that is required for high quality machines provides flexibility that is very much required for various cabinets that are custom designed. Painting and Finishing of the kitchen cabinets are done in an environmentally controlled way (Khanna, 2015). Various assembly areas are strategically located throughout the organization. The quality of products that is produced by the factory is held high esteem and it helps in reflecting the quality of the chosen material. The factory is facing some issues due to its recent processes and practices of operation (Sodhi et al., 2012). The problems that are faced by the company include lack of spacious manufacturing area, lack of stringent delivery requirement, and manufacture of price sensitive products. According to Slack (2015), the production cost and stringent delivery system helps in highlighting the large-scale production at low cost. It help the companies in producing huge amount of products that are offered at low prices to the customers On the other hand Stadtler (2015), stated that for attracting more number of customers, sometimes the company provides products at lower prices but those products are not good at quality. It is impossible for any organization to provide products, which are best in quality at lower prices. According to Kerzner (2013), the operation management helps an organization in implementing strategic processes and objectives. One of the most important of operation management is effectively managing the resources of the company by maximizing the potentiality of the products the operation management of an organization includes inventory, processes, resources and materials. On the other hand, stated that Stadtler (2015), operation management is dependent on different component of an organization for achieving success. Even if the management builds proper plans if it is not carried out properly then the business of the organization fails. Therefore, co-ordination is very much important for achieving success within the organization. The operation management of the company uses different process such as manufacturing cabinets in small groups in order to increase the sales of the company and for meeting the demands of the company (Anderson et al., 2015). Although the company has implemented different operation management, it is facing some of the problems that are related with cost, delivery requirement and manufacturing. It is necessary for an organization to have a proper operation and production system, which helps in enhancing the financial condition of the company as well as helps in meeting the demands of the customers. The effect of the new builders kitchen line on Hawkesbury Cabinets operations The sales of the new builders have increased recently. This increased number of sales had led to more regular scheduling of work. However, when scheduling related trade-off is made then priority is provided to the custom kitchen (White Pages - Search for an Australian Business, Government Department or Person, 2016) This is due to high sales and profit margins. Many cabinet components were left around the different stages of completion, which increases the amount of work. This has changed the spacious area of manufacturing into factory congested with partial work. According to Rice (2013), proper manufacturing system is very much important for the development of an organization. Proper manufacturing system not only reduces the cost of the product and increases efficiency but also it introduces some new systems that help in developing skills in the staffs that helps in supporting the changes in the organization. Producing work quickly by the staff of the company helps in increasing the revenue of the company. On the other hand Kerzner (2013), implementing proper manufacturing process requires help from the production staff of the organizations. They help the company, as they are the persons who can increase the rate of production by being involved in the organization. They serve as a resource for the company. Employees of the organization also put efforts to that the manufacturing process of the organization is made effective. According to Stadtler (2015), JIT is defined as a strategy that helps in suggesting are wasteful for the resources of the company. The business equity that is tied up with the inventories of finished goods interferes with the cash flow. The perfect JIT scenario is very much necessary in an organization as it helps in purchasing and delivering products and goods at the time when the products and goods are required. Organizational issues due to operational problems Accountant of the company revealed the fact that the margins of cost are not appropriate. Costs related with standard builders line were rising. As a result, an increasing volume of capital was binded in the inventory process of raw materials (White Pages - Search for an Australian Business, Government Department or Person, 2016). In order to accommodate the increased amount of inventory, warehouses were being rented. Mei Chen was concerned with the increasing lead times due to booth the standard and custom orders. According to Subramanian and Ramanathan (2012), there are many challenges that are faced by different organization due to the operational problems. Due to improper manufacturing process, the organization faces many issues. The demands of the customers are not met due to lack of proper manufacturing process (Krajewski et al., 2013). The customers want quality based product at low prices and the efforts of the company to provide products at reasonable prices put them on danger. Many times due to the effort of minimizing the cost of the products in order to attract more number of customers, put the financial status of the company in danger. The revenue of the company decreases. On the other hand Slack (2015), stated that if an organizations did not improve their operational management then the problems that are associated with the operational management keep the whole organization in danger. Therefore, it is very important for an organization to meet the demands of the customers without affecting the financial condition of the company. The challenges that different organization faces is due to lack of proper production and operation management. For resolving the issues of an organization, it is very much important to implement proper strategies for production and operation management of the organization. Conclusion It is concluded that the organization Hawkesbury Cabinets Pty Ltd faces many operational issues due to the processes and practices that is followed in the company. The problems that the organization faces mainly due to lack of spacious manufacturing area, lack of stringent delivery requirement, and manufacture of price sensitive products. In this essay, it is analyzed that the cost of the organization is not appropriate. Costs related with typical builders line were increasing. Hence, a growing volume of capital was binded in the inventory process of raw materials. References Anderson, D. R., Sweeney, D. J., Williams, T. A., Camm, J. D., Cochran, J. J. (2015).An introduction to management science: quantitative approaches to decision making. Cengage learning. Kerzner, H. R. (2013).Project management: a systems approach to planning, scheduling, and controlling. John Wiley Sons. Khanna, R. B. (2015).Production and operations management. PHI Learning Pvt. Ltd.. Krajewski, L. J., Ritzman, L. P., Malhotra, M. K. (2013).Operations management: processes and supply chains. New York: Pearson. Rice, A. K. (2013).Productivity and social organization: The Ahmedabad experiment: Technical innovation, work organization and management. Routledge. Slack, N. (2015).Operations strategy. John Wiley Sons, Ltd. Sodhi, M. S., Son, B. G., Tang, C. S. (2012). Researchers' perspectives on supply chain risk management.Production and Operations Management,21(1), 1-13. Stadtler, H. (2015). Supply chain management: An overview. InSupply chain management and advanced planning(pp. 3-28). Springer Berlin Heidelberg. Subramanian, N., Ramanathan, R. (2012). A review of applications of Analytic Hierarchy Process in operations management.International Journal of Production Economics,138(2), 215-241. White Pages - Search for an Australian Business, Government Department or Person. (2016).Whitepages.com.au. Retrieved 24 August 2016, from https://www.whitepages.com.au/hawkesbury-cabinets-pty-ltd-10732747/richmond-nsw-10732756B