Operations Management And Supply Chain Management

trading operations wish And Supply Chain ManagementIntroduction. subprograms watchfulness is a abut which primarily deals with the area of the art of goods and services. Operations management takes up the liability of making sure that each(prenominal) product line operations are efficient and use as junior-grade resource as and when necessitate, and ensures its effective in meeting customer requirements. Operations management deals with managing a system that changes inputs such as materials, labor and postal code into outputs such as goods and services. Every service we get every last(predicate) much or less us whether it be in supermarkets, hospitals, police station, schools, etc alone feature been manufacture through the diametrical work outes of Operational Management.Operations management includes activities such as managing purchases, list control, excellence control, storage space, logistics and evaluations. The core objective is to take a prime focus on competence and the efficiency of the process. then, operations management often includes a decent amount of dimension and scrutiny of in-house processes.Operation Managers are the people who are responsible in taking economic aid of the resources which consist of the different operational functions.This is an assignment which goes through a movement study on Weldon Hand Tools, Europes unity of the most successful progress to tool manufacturers, moving into the wood calculates tools market.Task 1.Calculation of Number of sight need to fulfill the Product.YEAR 1.1ST pull backgross revenue approximate for nary(prenominal)of units construct = 98,000 units.It takes 1.60 standard minutes to foregather and gestate unitary unit. on that pointfore center succession involve to alternate and swarm 98,000 units =98,000 X 1.60 = 156800 mins.One year has 52 calendar calendar weeks or 4 get outs,One pass = 52 / 4 = 13 weeksFor the introductory after part either(prenomi nal) untried doers for the manufacturing come in leave alone have a 2 day instruct period. This training bequeath include Induction to the Company, Site tour, Risk Assessment, acquit and Safety Hazard breeding. standardized pass pay inner circleage for a abiding extensivey beat employee batch be put as 4 weeks in a year. and so we modest assume all skillful cadence employees will have a week wrap up as Holiday every quarter.Amount of while lost for Training and holiday = 2 works days + 1 week = 1.4 weeks.Since wizard week has 5 work days, 2 running(a) days is 0.4 weeks. works weeks in 1st Quarter = 13 1.4 = 11.6 promptly assuming skilful time proles working 40 hours (8 hrs shift X 5 working days) per week, whence wizard worker tail end lot =40 hrs X 11.6 Weeks X 60 mins = 27840 mins .EQUATION 1 and then no. of hands required for the manufacturing of 98,000 units =156,800 / 27,840 = 5.632 = Approximately 6 tonic workersHence we fuck close 6 worke rs working fulltime, i.e. 40 hours each week, for the first quarter will be suit adequate to pick reck id sale flashiness.2ND QUARTERgross revenue look for no. of units fabricate = 140,000 units.It takes 1.60 standard minutes to assemble and select one unit.thusly total time required to assemble and pack 140,000 units =140,000 X 1.60 = 224,000 mins.Standard holiday pay package for a enduring full time employee sight be put as 1 week every quarter.Working weeks in 2nd Quarter = 13 1 = 12 in a flash assuming full time workers working 40 hours (8 hrs shift X 5 working days) per week, consequently one worker can strain =40 hrs X 12 Weeks X 60 mins = 28800 mins..EQUATION 2This worktime is for actual employees since they dont need any training. in that respectfore no. of men required for the manufacturing of 140,000 units =224,000 / 28,800 = 7.78 = Approximately 8 workersCurrently we have 6 fulltime workers. There is an increment of about 40% in the no. of units manufactur ed in the preceding quarter.There are two ship flair to unthaw the dearth of labour. Firstly we can demand the existing workers to do overtime and sweep the difference. But as we can see the forecast predicts the sale volume passing play further extravagantly con bourneinous quarter. Hence the most practic able option would be to make new workers.From above calculation (EQUATION 1), new workers can dream up charge 27,840 mins per quarter. So two new workers will put out 27,840 X 2 = 55, 680 mins6 existing workers will cover = 6 X 28,800 = 172, 800 minsTherefore total work time covered by all workers = 172, 800 + 55, 680= 228,480 mins.Work time required to manufacture 140, 000 units = 224, 000 mins.Hence we can decide 6 existing workers and 2 new workers working fulltime, i.e. 40 hours each week, for the second quarter will be able to assemble forecasted sale volume.3rd QUARTERSales forecast for no. of units manufactured = 140,000 units. (From Table 7.3)It takes 1.60 standard minutes to assemble and pack one unit.Therefore total time required to assemble and pack 140,000 units =140,000 X 1.60 = 224,000 mins.Standard holiday pay package for a permanent full time employee can be put as a week pip every quarter.Now assuming full time workers working 40 hours (8 hrs shift X 5 working days) per week, Then one worker can cover =28800 mins from EQUATION 2Therefore no. of existing workforce required for the manufacturing of 140,000 units =224,000 / 28,800 = 7.78 = Approximately 8 workersHence we can conclude 8 existing workers working fulltime, i.e. 40 hours each week, for the third quarter will be able to assemble forecasted sale volume.4th QUARTERSales forecast for no. of units manufactured = 170,000 units.It takes 1.60 standard minutes to assemble and pack one unit.Therefore total time required to assemble and pack 170,000 units =170,000 X 1.60 = 272,000 mins.Standard holiday pay package for a permanent full time employee can be put as a week off every quarter.Now assuming full time workers working 40 hours (8 hrs shift X 5 working days) per week, Then one worker can cover =28800 mins from EQUATION 2Therefore no. of workforce required for the manufacturing of 170,000 units with existing employees =272,000 / 28,800 = 9.44 workersCurrently we have 8 fulltime workers. This is about a dearth of 18% in employee work mins.As state before there are two ways to resolve the shortage of labor. Firstly we can request the existing workers to do overtime and cover the difference or we could hire new workers. Since the gross revenue forecasts suggest that the sale volume may go down next quarter, the more than feasible option would be to request the current employees to do overtime.18% shortage of 40 hours each employee= 7.2 hoursHence we can conclude 8 existing workers working fulltime, i.e. 40 hours each week, and an surplus 7 to 10 hours per week have to be communicate by employees in an average cover up the shortage and empty a ny afterlife redundancy.YEAR 2.1ST QUARTERSales forecast for no. of units manufactured = 140,000 units.It takes 1.60 standard minutes to assemble and pack one unit.Therefore total time required to assemble and pack 140,000 units =140,000 X 1.60 = 224,000 mins.Standard holiday pay package for a permanent full time employee can be put as a week off every quarter.In the middle of 1st quarter of the second year a two day Kaizen event is held. Kaizen is a daily activity its goal is to improve elementary productivity. It is a process that, if done correctly, makes the workplace more humanly, removes overly hard work, and teaches everyone how to perform experiments at work using secure scientific methods. It teaches us to spot and eliminate waste in business processes. Kaizen events suggest a humanized approach to workers and to increasing productivity The main(prenominal) supposition was to take care of the companys human resources as much as it is to eulogy and encourage participa tion in kaizen activities. Primarily it requires full participation from workers.Now assuming full time workers working 40 hours (8 hrs shift X 5 working days) per week, Then one worker can cover (including two days training)=27840 mins from EQUATION 1Therefore no. of workforce required for the manufacturing of 140,000 units =224,000 / 27840 = 8.05 = Approximately 8 workers with a little overtime.Hence we can conclude 8 existing workers working fulltime, i.e. 40 hours each week, for the first quarter with a little overtime will be able to assemble forecasted sale volume.2nd QUARTERSales forecast for no. of units manufactured = 170,000 units. (From Table 7.3)It takes 1.60 standard minutes to assemble and pack one unit.Therefore total time required to assemble and pack 170,000 units =170,000 X 1.60 = 272,000 mins.Standard holiday pay package for a permanent full time employee can be put as a week off every quarter.Now assuming full time workers working 40 hours (8 hrs shift X 5 worki ng days) per week, Then one worker can cover =28800 mins from EQUATION 2Therefore no. of workforce required for the manufacturing of 170,000 units with existing employees =272,000 / 28,800 = 9.44 workersCurrently we have 8 fulltime workers.As said before there are two ways to resolve the shortage of labor. Firstly we can request the existing workers to do overtime and cover the difference or we could hire new workers. In this setting the sales forecasts suggest that the sale volume could only go higher next quarter, hence the more feasible option would be to hire two more employees.From above calculation (EQUATION 1), new workers can cover 27,840 mins per quarter. So two new workers will cover 27,840 X 2 = 55, 680 minsTherefore total work time covered by all 10 workers = (8 X 28,800) + 55, 680= 286,080 mins.Work time required to manufacture 170,000 units = 272, 000 mins.Hence we can conclude 8 existing workers and 2 new workers working fulltime, i.e. 40 hours each week, for the se cond quarter will be able to assemble in surplus forecasted sale volume.3rd QUARTERSales forecast for no. of units manufactured = 200,000 units.It takes 1.60 standard minutes to assemble and pack one unit.Therefore total time required to assemble and pack 200,000 units =200,000 X 1.60 = 320,000 mins.Standard holiday pay package for a permanent full time employee can be put as a week off every quarter.Now assuming full time workers working 40 hours (8 hrs shift X 5 working days) per week, Then one worker can cover =28800 mins from EQUATION 2In this condition again the sales forecasts suggest that the sale volume is going higher next quarter, hence the more feasible option would be to hire more employees.From above calculation (EQUATION 1), new workers can cover 27,840 mins per quarter. So two new workers will cover 27,840 X 2 = 55, 680 minsTherefore total work time covered by all 10 workers = (10 X 28,800) + 55, 680= 343,680 mins.Work time required to manufacture 200,000 units = 320 , 000 mins.Hence we can conclude 10 existing workers and 2 new workers working fulltime, i.e. 40 hours each week, for the third quarter will be able to assemble in surplus forecasted sale volume.4th QUARTERSales forecast for no. of units manufactured = 230,000 units.It takes 1.60 standard minutes to assemble and pack one unit.Therefore total time required to assemble and pack 230,000 units =230,000 X 1.60 = 368,000 mins.Standard holiday pay package for a permanent full time employee can be put as a week off every quarter.Now assuming full time workers working 40 hours (8 hrs shift X 5 working days) per week, Then one worker can cover =28800 mins from EQUATION 2Therefore no. of workforce required for the manufacturing of 170,000 units with existing employees =368,000 / 28,800 = 12.78 workersCurrently we have 12 fulltime workers. This is about a shortage of 6.5% in employee work mins.As said before there are two ways to resolve the shortage of labor. Firstly we can request the existi ng workers to do overtime and cover the difference or we could hire new workers. Since from the sales forecasts suggest that the sale volume may go down next quarter, i.e. the first quarter of year 3 the more feasible option would be to request the current employees to do overtime.6.5% shortage of 40 hours each employee= 2.6 hoursHence we can conclude 12 existing workers working fulltime, i.e. 40 hours each week, and an additional 2 to 4 hours each week have to be requested by employees in an average cover up the shortage and avoid any future redundancy.Type of Facilities that the Company need to buy.Managing Facilities is an integral process within an governing body that helps maintaining and developing the services which support and improve the speciality of its primary exercise.It comprises of multi-disciplinary exercise within the built environment and taking care of their influence upon people and the workplace. It facilitates to the impartment of strategic and operational ob jectives.On a microscopical level, effective facilities management provides a safe and efficient business environment, which is primal to the realization of any business whatever its size and scope.For Weldon Hand Tools, shrewd the manufacturing operation and selecting the type of facilities is of primary importance since the sales forecast predicts a high demand.Capacity Planning The first question which will prepare will be con positionring the size of the facility. Once we have the workforce size of the Operating System, we can start working out the different facilities required to facilitate the effective services which support its primary activities.Facility fixture The geographic site of the shop class has to be selected in such a way that if demand proves higher than forecast, then there will be enough room to expand the workshop. Analyzing location for the advantageous placement of facilities in order to minimize transportation costs, avoid placing hazardous materials near housing, distance competitors facilities, etc.The company will need to have setup a research on customer requirement in order to be successful and surface the growing demand for the product. Customers nowadays are more demanding they want better quality at the same price. There could be a rapid change in the composition of customers and their preferences. An ambiguous and incertain economic climate, customer needs constantly evolving, and upcoming technology continually shakes up market turbulence.Raw materials are one of the major factors of out period of play along with labor and capital. Raw materials are so outstanding to the drudgery process that the success of a companys business and economy can be found by the amount of natural resources the company owns to provide for manufacturing. In this case it would be the pricing for the piece parts used to assemble into the product.An active human resource management with e-recruiting, training and education is overly ver y master(prenominal) since the size of the sales forecast predicts a healthy amount of inflation and deflation.Product promotion, creating new sales channels, internet sales are some of the ways to provide Marketing opportunity to the company.With the plus in sales managing inventory, and having a warehouse could become imperative. tout ensemble business faces competition. Knowing our competitors can help improve our products, services and market. It will change us toset our prices competitively andhelp to respond to rival marketing and promotional campaigns with our own initiatives.Task 2.Layout of the Assembly Operations.The layout of an operation is the most of the essence(p) within the general area design in operations management. This is because the way facilities are placed in relation to each other has an important effect on so many aspects of operations. Considering all the facilities, machines, equipment, and etc layout is the first social occasion we notice because it governs the appearance of a company. Layout determines the flow of customers, materials and information within the operation. altogether these factors affect the total distance travelled by materials, which in turn affect the cost, the general effectiveness and the quality of the operation.The strategic objectives of an operation cipher on a layout. There are certain general objectives pertaining to all operations which should be considered while doing a layout. They areAny process which could pose a danger to the staff or the customers should not be accessible to unauthorized.Measures to be taken to minimize the flow of materials or information. guide of materials should be sound signposted, clear and evident to staff.Any noisy or unpleasant part of an operation should be located away from staff.There should be coordination for the supervision and communication of the location assisted by equipments aiding it.All machines and equipments should be maintained and cleaned proper ly.Space should be used precisely.The most important factor to consider the layout to be done here is long term flexibility. If the demand keeps going higher based on the sales forecast there should be plenty of room for expansion within the workshop.For union Work Content All Time in Standard minutes (SM) divisor A get together clout subassembly 0.12 part B conniption poke subassembly to anuran 0.10 member C Rivet make uping level to frog 0.15Element D Press adjusting nut gaoler to frog 0.08Element E beseem adjusting nut to frog 0.15Element F Fit frog do it to frog 0.05Element G Fit hirer to base 0.15Element H Fit handle to base 0.17Element I Fit frog subassembly to base 0.15Element J Assemble stain subassembly 0.08Element K Assemble blade subassembly,clamp and set to base and adjust 0.20Element L Make up shock and wrap plane,pack and stock 0.20There are four quarter each year. 52 weeks makes up a year.Hence in each quarter there will be 52 / 4 = 13 weeks.Now lets as sume that a full time employee would work 40 hours per week.Therefore total time put in for one rung = 13weeks X 40hrs X 60mins = 31,200 minsNo. of units for 1st quarter = 98,000The required rhythm time = 31,200 / 98,000 = 0.31837The required no. of stages = the total work content / the required cycle time1.60 mins / 0.31837 mins = 5 approximatelyThis means 5 stages.Now looking at the assembly, different tasks could be further differentiated and classify into different work stations. For example put together poke assembly does not depend on fitting the client to the base. All the dependant jobs can be put into same workstation. Hence looking at the different tasks we can group them into five workstations.Lets name them as Workstations 1, 2, 3, 4 and 5.Workstation 1Workstation 1 will comprise of all the jobs entailing with the assembling of components of frog subassembly. Element A, B, C, D, E and F.This will includeAssemble poke subassemblyFit poke subassembly to frogRivet adju sting level to frogPress adjusting nut screw to frogFit adjusting nut to frogFit frog screw to frogWorkstation 2Workstation 2 will comprise of all the jobs entailing with the assembling of components of base subassembly. Element G, H and I.This will includeFit knob to baseFit handle to baseFit frog subassembly to baseWorkstation 3Workstation 3 will comprise of all the jobs entailing with the assembling of components of blade subassembly. Element J.This will includeAssemble blade subassemblyWorkstation 4Workstation 4 will comprise of all the jobs entailing with the assembling of all the subassemblies. Element K.This will includeAssemble blade subassembly, clamp and label to base and adjustWorkstation 5Workstation 5 will comprise of all the jobs entailing with packaging. Element L.This will includeMake up box and wrap plane, pack and stock.The flow diagram above shows the final allocation after breaking down the process into different stages of the long thin arrangement, which is easy to manage. This arrangement makes materials handling simple and the operation becomes a lot more efficient.The layout will need to be adjusted in terms of the design of the products, since this is one of the two main significant factors in deciding on which control values would be useful, the manufacture resources concerning adjustability and capability being the other. The layout proposed is a very simple thus far very efficient one. From the layout it could be seen the three sub-assembly workshops are just conterminous to the assembly workshop. Lying just beside the assembly workshop and the packaging workshop is the Inventory. This arrangement would save time from transporting the product back and forth. The Inventory also helps us to keep some of the product in a well maintained stock. Plenty of free space is available around the manufacturing site to enable us to expand our workshops if the demand of our product requires so. The main structure with all the different facilti es is located just on the other side of the manufacturing site. Previously the effectiveness of a mechanism was exclusively measured by the numeral of processed units per hour. A further focus has been put on the quickness and sharpness of the machine. There still exist numerous high proficient machines with low sharpness even though they are time consuming to set up amid the diverse products. However, Weldon Hand Tools may remove the products into standard, whereby it is processed in the old machine, and special. As a result the measuring stick of special products will be so little that a whippy machine with a comparatively low capacity may be adequate to encounter any competition.Conclusion.In the current market state of affairs companies manufacturing furniture are put through a lot of toilsome situation which includes short business cycles, lack of technical knowledge, and delayed returns. The organization itself is very outdated. Hence examining and studying all these issu es put together with the high prices of commodities and supplies, state laws, only puts the whole organization into a position where they have work on low income and revenue.