OPM 530 - Individual Assignment 1 - 20% PDF

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Complete the assessment form and attached is as the cover pageUiTM Sarawak Operations Management (OPM530) Individual Assignment 1 - Written ( 20% ) Program : BA242 FACULTY OF BUSINESS AND MANAGEMENTNo Student's Name Id 1 DAYANG NURUL RABIATUL BINTI ABDULLAH 2021601188No. Assessment criteria MaximumM...

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Complete the assessment form and attached is as the cover page

UiTM Sarawak Operations Management (OPM530) Individual Assignment 1 - Written ( 20% ) Program : BA242 FACULTY OF BUSINESS AND MANAGEMENT

No 1

No.

Student's Name

Id

DAYANG NURUL RABIATUL BINTI ABDULLAH

2021601188 Maximum Marks

Assessment criteria Explain 2 reasons why is it necessary for organization to minimize its inventory?

1

(700 – 900 words)

20

Globalization has increased an organization supplier base. 2

Explain 3 ways how this would benefit the 15

organization operations management (700 – 900 words)

Provide three (3) justification, why you need to 3

managed Service Operations holistically?

15

(700 – 900 words)

Total

Lecturer : Dr. Abg Hamizam

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50

Marks Awarded

1. Explain 2 reasons why is it necessary for organization to minimize its inventory? (700 – 900 words)

For most of the firm, inventory represents a major investment. Inventories consists of four types which is raw material , work-in-process, maintenance, repair, and operating (MRO), and finished goods. Raw material inventory has been purchased but not processed. This inventory can be obtain separately from many suppliers. However, the preferred approach is to eliminate supplier variability in quality, quantity, or delivery time so that separation is not needed. Work-in-process (WIP) refers to components or raw materials that have undergone some modification but have not yet been finalized. WIP exists as a result of the time it takes to make a product, which is referred to as cycle time. Reducing cycle time reduces inventory. This task is frequently not tough, and much of the time a product is "being created," it is actually sitting idle.They exist because the need for and timing of some equipment maintenance and repair are unknown. Although maintenance schedules generally drive demand for MRO supplies, other unscheduled MRO demands must be anticipated. Finished-goods inventory refers to products that have been completed and are ready to ship. Because future client wants are unknown, finished goods may be inventoried. The reason why it is necessary for organization to minimize inventory is to minimize total costs. Significant costs, based on the assumptions just made, are the ordering and carrying costs. All other costs, such as the cost of the inventory itself, are constant. As a result, if we reduce the overall cost of setup and holding, we will also reduce total costs. The overall number of orders placed per year will decrease as the quantity requested increases. As a result, the annual setup or ordering cost decreases as the quantity ordered increases. However, when the order quantity increases, the holding cost rises due to the bigger average stocks kept on hand. The total cost curve will be lowered if the holding or setup costs are reduced. The ideal order number is likewise reduced when the setup cost curve is reduced (lot size). Furthermore, smaller batch sizes improve quality and manufacturing flexibility. At Toshiba, the $77 billion Japanese conglomerate, workers can make as few as 10 laptop computers before 2

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changing models. This lot-size flexibility has allowed Toshiba to move toward a “buildto-order” mass customization system, an important ability in an industry that has product life cycles measured in months, not years. Furthermore, understanding stock trends allows you to see how much and where you have something in stock, allowing you to make better use of it. This also allows you to hold less stock at each location (store, warehouse), as you can fulfil orders from anywhere As a result, all of this lowers inventory costs and reduces the quantity of product that goes unsold before it becomes obsolete. In order from getting a lowest total cost of inventory, the firm enable to make a competitive pricing. This will be a strong reason why is it necessary for organization to minimize its inventory. Moreover, if the firm work in a competitive environment, such as a large city, the savings from lowering inventory may enable you to price your items or services more aggressively. The additional contracts you secure will boost your company's visibility in the neighbourhood. You may establish yourself as a regional leader in your industry. Developing a competitive pricing plan for your company can help it grow. A competitive pricing’s results are usually seen after a short period of time. In order to assess the long-term implications, the business owner must be able to adequately understand the broader trend as well as their place in the industry. Competitive price enables a company to manage its competition by preventing consumers and market share from being lost to competitors. By keeping pricing the same as or lower than your competitors, customers will be less likely to switch brands or pick your competitors' products/services over yours, allowing you to maintain market share. Competitor pricing monitoring helps you to react to every move your competitors make, which can help you improve your company's positioning. As a conclusion, Inventory management is the cornerstone of a profitable business and depends on your ability to forecast demand trends. Inventory reduction is the process of lowering inventory levels to a point where they meet customer demand. Reduction of inventory is necessary minimization total cost and involve in competitive pricing. 3

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2. Globalization has increased an organization supplier base. Explain 3 ways how this would benefit the organization operations management (700 – 900 words)

Customers, talent, and suppliers are all spread around the globe as a result of globalization. Nearly 3 billion individuals in developing nations have overcome the cultural, religious, ethnic, and political hurdles that stifle productivity since the early 1990s. They are now all participants on the global economic stage. As distance barriers dissipate, breakthroughs in technology, dependable delivery, and low-cost communication occur at the same time. More and more businesses are entering the global marketplace, marketing their goods and services to international buyers and sourcing their raw materials elsewhere. Node companies from various countries are increasingly implementing supply chain processes and functions. A supply chain's material, information, and financial movements pass through a variety of geographical, cultural, and legal settings. As a result, supply chain management has progressed to a new level in the global supply chain management process. Quality, variety, customization, convenience, timeliness, and loss are all impacted by the new global competitiveness criteria. Companies have been paying more attention to supply chain on a worldwide scale in recent years. Concerns about international competition, the need for better suppliers, research into specific competences, and the need for better suppliers in the upstream part of the supply chain have forced companies to improve their ability to deal with suppliers located in different countries around the world. There are few ways how global suppliers would benefit the organization operations management.

First and foremost, a global supply chain can help to optimize operations. When operations get a greater understanding of advances in different nations, this can be put into effect. For instance, the Japanese have improved engagement, the Germans are 4

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aggressively using robots, and the Scandinavians havto improved ergonomics throughout the world. Another reason to have international operations is to reduce response time to ers’ changing product and service requirements. Customers who purchase goods from U.S. firms are increasingly located in foreign countries. Providing them adequate service is often improved by locating facilities in their home countries. Furthermore, a global supplier can assist in the understanding of markets. Because worldwide operations include engagement with overseas consumers, suppliers, and other competitors, international enterprises are inevitably exposed to new product and service prospects.. Europe led the way with cell phone innovations, and then the Japanese and Indians led with cell phone fads. Knowledge of markets not only helps firms understand where the market is going but also helps firms diversify their customer base, add production flexibility, and smooth the business cycle. Another reason to go into foreign markets is the opportunity to expand the life cycle (i.e., stages a product goes through; see Chapter 5 ) of an existing product. While some products in the U.S. are in a “mature” stage of their product life cycle, they may represent state-of-the-art products in less-developed countries. Last but not least, better goods and services should be provided. Learning does not happen in a vacuum. When businesses allow the free flow of ideas, they benefit both themselves and their customers. For example, Toyota and BMW will manage joint research and share development costs on battery research for the next generation of green cars. Their relationship also provides Toyota with BMW’s highly regarded diesel engines for its European market, where diesel-powered vehicles make up more than half of the market. The payoff is reduced risk in battery development for both, a state-ofthe-art diesel engine for Toyota in Europe, and lower per-unit diesel engine cost for BMW. Similarly, international learning in operations is taking place as South Korea’s Samsung and Germany’s Robert Bosch join to produce lithium-ion batteries to the benefit of both. In conclusion, companies with advanced procurement functions know that there are limits to the value they can generate by focusing purely on the price of the products 5

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and services they buy. These organizations understand that when buyers and suppliers are willing and able to cooperate, they can often find ways to unlock significant new sources of value that benefit them both., closer relationships between buyers and suppliers could create significant value and help supply chains become more resilient especially can improve operations, better understanding of market and provide better goods and services. The firm have to fully utilize all the benefit from globalization to maximize the productivity of firm.

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3. Provide three (3) justification, why you need to managed Service Operations holistically? (700 – 900 words) Many businesses have effectively altered their manufacturing, research and development, and other company processes, enhancing performance while reducing costs. Despite the fact that service operations can have a significant impact on client acquisition and retention, considerably fewer companies have optimised their service operations. When service levels and costs are correctly balanced and optimised, they can provide a significant and long-term competitive advantage that rivals will find difficult to replicate. Service businesses are labor-intensive and difficult to manage by their very nature. The hallmarks of excellence in service operations, repetition and consistency, can work against an organisation striving to achieve step-change improvements in procedures and behaviours. Furthermore, executives in a variety of businesses are finding it increasingly difficult to control service costs (particularly personnel expenditures, which are the single largest cost component of any service operation) while maintaining service standards. Recent technical advancements, such as selfservice kiosks found at airports, banks, and hotels, have aided in increasing overall efficiency, but technology is only one component of the answer. The reason why it is necessities to manage service operation is to help in the attainment of objectives: Operations management plays an important part in achieving an organization's p-determined goals. It ensures that all actions are carried out according to plan by regularly monitoring the organization's operations. As we know, every organization works to attain itsobjectives and goals. Proper production activity management helps businesses in effectively implementing their strategic strategies in their operations. Operation management guarantees that all business operations are running smoothly. It keeps a close eye on all activities and takes any necessary remedial action as needed, depending on the scenario. The proper operation of a firm in accordance with strategic plans aids in the achievement of targeted outcomes. Other than that, the reason to managing service operation holistically is to improve employee productivity. It assesses and evaluates the performance of all employees in the company. Operation manager trains and educate their employees for better performance. As we know, operation management played a key part in boosting firm productivity as a whole. It oversees all parts of production to provide the highest level of efficiency. The operation manager is in charge of creating a production plan to carry out the activities for employee. They make sure that all of an organization's inputs are efficiently converted into outputs, such as products or services. It is critical for all 7

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businesses to properly manage their day-to-day operations and make efficient use of all of their resources in order to increase productivity. Last but not least, optimum utilization of resources is one of the reason why it is a need to manage a service operation holistically. Operation management focuses on making the most of the organization's resources. It develops appropriate strategies and, as a result, keeps the service operation running smoothly. All actions are monitored by operation managers. And as we know the optimum utilization of recources surely will give a direct impact on a company's profitability. It focuses on lowering the cost of operations for businesses by decreasing resource waste. Operations managers keep a close eye on all service operation activities and take all required actions to keep the company running smoothly. They strive to strike a good balance between cost and revenue. These operation managers are also responsible for maintaining product quality and delivering them according to customer requirements. It helps in attracting more and more clients, hence increasing the company's overall revenue. and make certain that all resources are put to good use and are not squandered. In conclusion, the fundamental role of operation management is to efficiently manage all aspects of an organization's operations. Operation management is in charge of monitoring and controlling an organization's whole production system. Customers' needs must be met, and operation managers are accountable for delivering products that meet those expectations. They make all critical decisions about the the process. Furthermore, it is a need to make sure that service operation managed holistically so that it helps in achievement of objective, will improves employee productivity and Improves Employee productivity which all this matter will lead to customer satisfaction and bring the good name of company.

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