Managing Operations

Managing Operations

Introduction

The following paper is based on the organization that manufacturing a line of power hand tools, which include electric drills, saws and sanders. The purpose of this paper is to develop a supply chain plan that would guide the investors in designing and organizing the supply chain approach for the operations management perspective. To give the readers a proper understanding of the paper, the author divided the paper under different aspects and highlighted all the aspects in an effective manner.

Discussion

Keiretsu Network

Keiretsu is a term Japanese that refers to a business model in which there is a coalition of companies united by certain economic interests. It is a type of business group. It is usually a structure based on two parts, a central core which placed an organization of great economic power, a bank and a business development organization (trader). On the outside there is a core set of small organizations with great independence, but share departments and economic agreements, and which have a high interdependence with the core.

Keiretsu consider to be one of the best strategy for running the business, however, in the tools manufacturing business this strategy could make things more smooth because briefly described, the technique is used for the long continual business relationship. As already mentioned, it's a Japanese technique, therefore, it is admitted that Japanese economy stand on this technique for merely sixty years. A series of repetitive transactions that occur between two or more firms in an asymmetrical relationship normally uses its position and power to run the relationship.

Therefore, in this case, the tools manufacturing management need to be very much focused that what kind of relationship they want to build with the other parties because the technique has both positive and negative aspects. However, if the management acted smartly than the possible chances are there that management could turned the negative effects into the positive one.

Partnerships, such as employers, or representations of interests, such as unions, arising "organized systems" if you have an environment and other systems as well organized [also able to be a network of decisions that are more or less restrictive assumptions of other decisions in the same field of meaning] (Lobo, 2012).

Current approaches to the problem of networks

Probably a first motivation to study these new forms of organization has been perceived challenge to Western industry (European and American) by the Japanese. The author analyze the reasons of competitiveness not only in Eastern regard to the specific production methods, quality management or logistics (remember headings such as "just-in-time", kanban, Total Quality Management, Hoshin Kanri, Quality Function Development and House of Quality), but also in the way that industry has managed its funding, has organized its distribution networks and, above all, has concluded something that goes beyond the usual strategic coalitions between companies, is say, has found a way to combine competition and cooperation between the partners themselves a "keiretsu" or family of companies. The forms of exchange and communication networks provide an alternative economic order in traditional forms: market and ...