Chan Cho Wa

Managing Operations Strategically



Executive Summary3

Introduction4

Poor capacity planning4

Poor forecasting6

Poor delivery-on-time8

Ineffective and inefficient inventory management system9

Poor facility layouts11

Inappropriate use of tools and technique12

Lack of knowledge and experience in applying improvement cycle model14

Conclusion16

References17

Executive Summary

The purpose of this report is take into consideration the different techniques and approaches that an Operations Manager makes use of in countering various problems leading to inefficient and ineffective utilization of resources. Therefore, I have identified several solutions to problems regarding facility layouts, inventory control, and the right blend of machinery and workers so that an efficient level of production takes place. I have developed the report in the perspective of General Electric, which is well known for having a strong control over its entire delivery channel. GE has been found to bring drastic changes in the entire operations management processes. Therefore, I have studied their implementation and executions styles.

The majority of issues could be traced back to lack of planning in the initial stages. Therefore, the Operations Manager needs to assure that all the planning procedures have been applied. It has been found that decisions are based on personal perceptions and intuition. However, Operations Managers needs to develop an understanding that decisions shall be based on research and forecasts. So any future event could be anticipated. The Operations Manager must develop the ability to act in advance so that he could prevent something getting out of proportions.

There is a need for the integration between the different value delivery channels as a combined approach would give rise to creativity, plus a more exquisite execution would take place. For instance, the participation of a major number of departments, in the form of finance, procurement, and production, would be required to achieve an efficient inventory level. Nonetheless, as far all of these factors are taken into consideration, any Operations Manager will be able to perform according to his assigned responsibilities and be able to cater to all the needs of the different elements active in the value delivery channel.

Managing Operations Strategically

Introduction

General Electric (GE) has a proven track record as far as process improvement is concerned. GE has shown that the utilization of resources in an effective and efficient manner is not as complex as it looks; it just requires commitment and dedication on part of the entire members involved in the process. The process consisting of the inputs, transformation and output need to be controlled as they are interdependent (MarketLine, 2012).

Nowadays, there are various management processes which are being used such as Six Sigma. Their ultimate aim is to maximize the utilization of resources and that too at minimal costs. With the implementation of these techniques, it has been felt that productivity of resources has indeed improved, the resource involving labour in particular. Meaning that the worker is able to produce more as compared to before and as a result the average cost per worker has immensely decreased.

The need arises for all departments to work in an integrated manner and improving the level of ...