Assignment 3: Your Business Part 1

Operations strategy

Motor Company is manufacturing company for vehicles. The motor company operations strategy concentrates on the optimum reliability, simple maintenance of the vehicles in each class, production systems which involve the design, procedures and supply chain organization insistent on their objective. The company’s successes would be based on its production system, re-engineering, superior Technology and Quality, Hybrid vehicles and staff welfare (typepad, 2008). The production system of the motor company would apply the lean manufacturing which would be targeted at the removal of waste in production as well as client relations, design, supplier networks and factory organization. Its principles would be based on zero waiting and inventory, scheduling, saving turnover losses and improving inventory outcomes.

In re-engineering, it involves putting in place a model that would be more productive and benefiting to the clients. As for the superior technology and quality, the facilities that are applied in the motor company would be geared towards meeting flexibility with the intention of putting in place quality for the brand. Machines would be applied in high production while also relying on human hence bringing about flexibility in limited to high production. The quality control makes sure that the right materials are applied and accurate.

For the hybrid cars, the motor company would make the motors being manufactured more fuel efficient and limited in cost. The company will apply its production facilities to make hybrids. As for the staff welfare, the motor company would put in place a young labor force. It will additionally bring about a well-managed company culture which motivates the staff involvement which is vital for success in production maintenance. The production maintenance would involve vial elements of training and open communication in operators and engineering. The staff would be trained to undertake constant maintenance. Extreme sense of staff loyalty and commitment to quality would be observed in the staff. The staff motivation would be made certain by quality circles, suggestion systems and incentive programs.

Implication of the operations strategy

The operation strategy would have varied implication on the design and process selection. In lean manufacturing, it would be aimed at putting in place less energy, limited inventory and time to produce products as well as space so as to become responsive to the desire of the client. The lean manufacturing would use the Kaizen term to describe the environment where organizations and people proactively engage in processes that elevate the manufacturing procedure. There is also the Jidoka, a term applied in Lean manufacturing which is a quality control procedure that noted errors, hinders and diagnoses the state and examines the source of the error.

Considering that all manufacturing companies are modeled for excellence, in case of failure there would be re-engineering. The re-engineering would correct the failed design applying similar production facility. The application of the machines would completely change the design and process of manufacturing, the vehicles would be manufactured at large numbers and much faster. Flexibility would be added with the incorporation of human beings in the smaller numbers. Quality is ensured by application of the right materials and accuracy in the procedures. A wide range of inspection would be undertaken as the process is underway. The group involved in the processes would be placed charge for what they apply. In case of a problem, the group alerts the others of it; it is after restart that the process continues. The process takes into consideration the group members in monitoring and checking of quality of the production.

The hybrid vehicles will make use of the production facilities to make the hybrids. The hybrids would offer the clients more choices to handle gas prices. The company would lastly make use of a younger staff which would be more energetic to manage the design and processes of the motor company. The culture that would be employed to the staff would be applied to elevate the reliability of the facility and productivity hence limiting its maintenance and working cost.

Supply-Chain Management

The supply chain puts in place economies of scale through the operation with its parts providers to bring in raw resources in bigger sizes. The structure of the motor company would be a wide network involving; the company buying parts from several suppliers. With the acquisition of the parts, the company directs it to the raw resources mill where they are then the parts are taken to the suppliers. The company later acquires them in the assembly plant where they are assembled together (Goswami, 2012). The structure aims to limit the operating costs and elevate production through economies of scale, technology and capacity deployment.

The features of the supply chain would involve the movement of information with the providers and internal guest engineers. There would be strategic sourcing, where there is optimization of value by outside providers; the selection of topmost suppliers in the service. In terms of purchasing, the company looks at the price table for the parts and in any case it is not able to acquire, it engages with the supplier so as to reduce the costs. The satisfaction of the client is of key consideration which is met by the competitiveness in respect to quality, cost, distribution, advancement and management. In management, quality and efficiency is met through constant development; staff control, and quality circles. Client’s satisfaction is key for the supply chain management.

Total Quality Management process in competitive advantage

In Total Quality Management it is applied as a technique for competitive advantage in the motor company. The TQM is a belief of undertaking business and it lays emphasis on limiting costs by declining waste, assisting suppliers to offer quality vehicles and meets the needs of the clients with quality goods. The competitive advantage is acquired by limiting the costs.

In limiting the costs of the vehicles, the motor company acquires great competitive advantage over other companies in the industry (Powell, 1995). The costs are limited through the use of hybrid a facility which as stated earlier offers the client more choices. In limiting the costs, the company would limit loss by limiting the waste. This would lead to production at cheaper cost and acquiring better profit. ‘

The staff and suppliers offer the necessary input that determines the price and quality of the vehicles being manufactured. The strengthening of the staff and suppliers help them meets their objectives hence acquiring competitive advantage. The suppliers offer the clients quality products composing the buying the products from suppliers or acquiring quality parts to make the company’s products, the vital part of the TQM is to assist the supplier in offering quality to the company, hence it benefits from it. Close relation with the suppliers offer better competitive advantage for the supplies. The workers on other hand help in meeting quality products. Others handle clients and offer quality service to the client. Pleasant sales representatives bring about better buying experience for the clients. The company would rely on its workers by paying them well. Similarly handling the workers well gives them the much needed motivation. They hence offer the company a better competitive advantage. In client satisfaction, when they are satisfied with the products produced they would come back for more. Clients need satisfaction through quality, assurance and confidence to offer the company competitive advantage.

Just-In-Time Manufacturing

The production system meets the client demand proficiently and promptly by connecting each production processes to actual marketplace request. Just-In-Time manufacturing is a technique that is applied so as to limit the waste reduction whereby inventory levels are reduced. It depends on well-organized procedures in assembly sequence applying just the quantities if facilities needed. The elements include inventory reduction, limited production lots and batch sizes, quality control, complexity decline and transparency and waste reduction. The inventory reduction is controlled by signals which direct the production process to create the consecutive part (BT, 2012). Its costs are reduced through having the needed parts distributed when they are required. It additionally does away with vigorous work that brings about safety and quality issues.

In the reduction of waste, products which do not add value to the whole production process is done away with. This may be composed of certain regions that are not attributed to be wasteful in normal circumstances; for instance overproduction, acquisition of massive inventory and every unwanted undertaking, handling and waiting. Time supervision is vital to the production system; this takes into consideration the rate of client demand. The important aspect is that it should connect with the demand so as to do away with below or above level production. The time is noted and makes it possible to limit the waste and errors by doing away with time deferrals or over the par production. Time management and inventory reduction makes it dynamic in terms of demand and ensuring production is even, constant and proportional.

The just-in-time brings about a smooth, continuous and optimized workflow which is well organized and estimated work trend and on-request motion of the products, limits the price of wasted time, resources and volume. The staff is able to concentrate on their duties with no interruption hence brining about improved quality, appropriate supply and peace-of-mind for the clients.

Peer review

As a flexible trend, the application of a hybrid fuel system for the motor vehicles would bring about cheaper bigger models while acquiring the level of the fuel economy. The hybrid system will bring about new technology for data and entertainment structure in the cars and additional internet-based services. This will go a long way to addressing the world challenges of energy non-reliance and environment conservation.

The business of the motor company is fully reliant on meeting the needs of the client while satisfying the staff. This is visible by the quality assurance processes and staff welfare consideration. This would go a long way to making it a bigger motor company and strategic in its operations.

The company has made it its priority to becoming a globally competitive company by distributing is services to other countries. This is a competitive opportunity for creating a stronger stand in the business scene. Additionally, the use of machines in mass production makes it possible to manufacture several vehicles at a short period of time. Similarly, while being flexible and keeping its staff satisfied, the company issues small manufacture operations to its staff.

References

(2012). Just In Time. Retrieved May 11, 2012, from Toyota Production System: http://www.bt-forklifts.com/En/company/BTProduction/TPS/just-in-time/Pages/default.aspx

Goswami, A. e. (2012). Supply Chain Management for Honda and Toyota. Retrieved May 11, 2012, from The Automotive Industry: http://www.scribd.com/doc/13754548/Supply-Chain-Management-Of-Honda-Toyota

Powell, T. C. (1995). Total Quality Management as competitive advantage: A review and Competitive Advantage. Strategic Management Journal, 15-37. Vol. 16 No. 1

Type pad. (2008, January 28). A Comparison of the Operations Strategy of Manufacturing and Service Industry. Retrieved May 11, 2012, from Thinking Made Easy: http://ivythesis.typepad.com/term_paper_topics/2008/01/a-comparison-of.html

Your Business Part 1: management