BUSINESS FUNDAMENTALS

Business Fundamentals

Business Fundamentals

Introduction

We can define operations management as the area of Business Administration dedicated to both research and the implementation of all those actions that tend to generate greater value added through the planning, organization, direction and control in the production of both goods and of services, all aimed at increasing quality, productivity, improve customer satisfaction for customers and reduce costs

Various advantages exist of supply chain that makes it an important aspect of any business

Value added concept - SCM has been successfully able to add value to the production process by minimizing the production time in order to incorporate creativity and innovation to produce better products in the long run.

Time saving - Efficient use of SCM results in big savings on time so that the customer gets only the type of products that the management wants.

Simulation Analysis

The main purpose of this simulation is to assemble customer demand for assured delivery of high quality and low cost with minimum lead-time, as our company deals in computer manufacturing so in order to accomplish this objective, Personal computers need to have better command and presence into the whole supply chain process of their own strategy, as well as those of their customers, and suppliers. In order to have proper picture of this research see balance sheet and score card of personal computers (see appendix).

Importance of SCM

Supply chain management is categorized as a set of business rules or principles to consistently monitor the production process of the company by ensuring regular supplies of high quality raw material in a timely manner to be converted into finished goods.

In order to elaborate the operations management of personal computers firm, it is important to define and understand the Crosby's 14 steps to improvement and Juran's trilogy approach to quality.

Crosby's 14 Steps to Improvement

Management commitment.

Develop a quality improvement team.

Quality measurement.

Cost of quality evaluation.

Quality awareness

Corrective action.

Zero defects planning.

Employee education.

Zero defects day.

Goal setting.

Error - cause removal.

Recognition.

Quality councils.

Do it again.

Juran's trilogy approach to quality

This approach defines the following:

Quality planning.

Quality control.

Quality improvement

By considering the above mentioned points of both the approaches, we will now analyze the operations management of personal computers manufacturing company.

Evaluation of budgets and pro-forma statements

Evaluating budgets and pro forma statements shows that company is in good position and has no financial issue in near future. This will indirectly help the company in providing uninterrupted financial resource in term of company production.

The pro forma statement (see appendix) is projected at 1% growth per quarter which shows that company can achieve its objective easily. Secondly looking at the Balance sheet (see appendix) it can be observe that company is strong enough to fund this new supply chain management process.

Discussion on analysis and forecasting through pro-forma statements

The analysis and evaluation of the pro forma statements will help the simulation company to keep a track on the current financial performance of the company against the financial plans. In addition, these statements will help the company in avoiding financial risk in instable economic environments. These pro forma statements will also be required ...