PRODUCT OPERATIONS ANALYSIS

Product Operations Analysis

Abstract

ABC Shoes Company sells about more than 300 million shoes in a year. The forecasting method of the shoes company depends on the demand of the consumers. The operations plan establishes a comprehensive production guide, which should be executed by a group of people led by an operations manager. Product design and product reliability, lowers cost of the product life cycle, reduces the number of hour's necessary design engineering, and reduces purchasing, inventory and storage space for components. The focus should be based on the product manufacturing and designing the layout of the shoes, it should be innovative and different.

Product Operations Analysis

Strategic

ABC Shoes Company is the company, which is at present operating with more than 5000 stores in USA, Latin America and Canada. Apart from shoes, the company also deals with accessories and leather goods for women and gents. The company sells about more than 300 million shoes in a year. In this paper, we will be discussing the operation analysis of the shoes and the business process such as supply chain and inventory control.

5-year plan

The five-year plan of the shoes business shows that the company has earned profit due to the increase in the number of sales. The company has also focused on product differentiation and making the shoes innovative so that consumers demand for the shoes (Heathfield, 1971). The strategies made by the company are also efficient and they should focus on maintaining their strategies to maintain the balance between the products and to reach the competition in the shoe market.

Forecasting method

The forecasting method of the shoes company depends on the demand of the consumers. Since, the forecast shoes that the demand of the shoes in increasing so there is a need of producing shoes with better quality so that the company image can be improved and the overall production of the company can be improved to meet the competition.

Operating plan

For this, it is necessary to establish production processes, logistics and services best suited to manufacture market and ship the products and services offered by the company. The operations plan establishes a comprehensive production guide can and should be executed by a group of people led by an operations manager. This is why the operating plan also involves the definition of personnel needed to perform tasks related to production and implementation of services and equipment, which will be a part of business operations. The operational plan is to list the resources needed for production, manage raw material inventory, calculate production times, defining and monitoring quality standards, meet legal standards of production, define production costs, establish procedures for store, and deliver the finished products.

Once the company has made sales forecast and calculate the amount of resources, there is a need to develop alternative production plan. 

There are three approaches used in developing the production plan: tiered, progressive and mixed. Leveled production plan is used if the costs of changes in production level too high and the costs of conservation reserves are ...