Operations Management L5M9 paper 1

1. Improve the acquisition process.
2. Ensure consistently high-quality products are manufactured.
3. Develop an effective inventory management system.

Before working on these objectives, Georgio requested a meeting with Hovartons Bread’s senior managers. He felt it was crucial to ensure that his objectives aligned with the overall vision of the organization. To achieve his goals, Georgio knew he would need support from key departments within the business. This meant setting up meetings with departmental managers, gaining their buy-in, and collaborating as a team to achieve positive results.

Additionally, Georgio realized he needed a comprehensive understanding of the manufacturing process. He identified three critical aspects of the operational function that required analysis. To start, he arranged a discussion with the Production Manager to organize time in various areas of the business, beginning with the warehouse, where raw materials were received, and continuing through to the delivery stage, where finished products were sent out to customers.

Once he understood the production process, Georgio planned to meet with the procurement team to better understand their ordering and timing decisions. He wanted to assess whether inventory levels were optimal and how they were managed. Did procurement order large quantities of raw materials at regular intervals, or did they aim to bring materials directly into production without holding them in storage?

After this hands-on approach and gaining a thorough understanding of the workflow, Georgio intended to conduct an analysis based on four key perspectives: financial, customer, learning and growth, and business process. If any part of the organization was underperforming, Georgio needed to identify the reasons. To gather this insight, he spent time observing the shop floor to understand current practices, as he recognized that issues could arise from various causes. He believed this groundwork would support him in achieving objective number two: maintaining high-quality standards.

Once he completed this research, Georgio planned to map out any quality issues and identify potential causes. This would allow him to address and improve areas that contributed to failure. To ensure he met all his objectives, Georgio decided to introduce Total Quality Management (TQM) at Hovartons. He knew this would require integrating TQM into the company's strategy, operations, and regulations to achieve positive outcomes.

Georgio was eager to begin working towards his objectives, fully aware that a substantial effort lay ahead.

1. Make to order
2. Volume production
3. Mass customisation
4. Mass production

1. Products are made based on customer specifications.
2. Goods are produced in large quantities in anticipation of future demand.
3. It is mostly used by tailors
4. Examples include production of canned foods, mobile phones and other electronics.

1. It focuses on a high variety of products
2. Use of forecasting is essential
3. Labour intensive
4. High extent of standardisation

1. reduced proximity of the marketplace to the potential customers
2. reduction of waste and cost by eliminating inefficient processes
3. achievement of varying lead times to ensure customer satisfaction
4. improved productivity due to increased effectiveness and efficiency

1. Financial perspective
2. Shareholder perspective
3. Performance of competitors
4. Business process perspective

1. Facility location
2. Plant layout
3. Inventory management
4. Maintenance and replacement