Reference no: EM132330513

Operational Management Assignment -

Learning Outcomes -

• Students will apply a range of capacity and inventory management tools to improve entity performance.
• Students will appraise the appropriateness and applicability of supply chain management to improve entity performance.
• Students will demonstrate effective communication skills to engage with stakeholders.

Case Study - Call Us Plumbing Supply Company Limited:

The Call-Us Plumbing supply Company Limited produces and stocks millions of plumbing items which are sold to regional plumbers, contractors, and retailers in New Zealand. The company manufactures or supplies one million pieces per year. In the last month alone, they produced 150k individual items alone. Current estimates suggest that this will rapidly rise to approximately 300k articles per month.

Mr Te Whatu, the General Manager, has concerns related to current rapid business growth. The rapid growth has resulted in significant issues, for example:

• Overstretched manufacturing and production resources.
• The delayed production of component materials, for example, the washers for pipe fittings delay the assembly of the final product.
• There were instances of interdepartmental and staffing conflict related to unmet internal demand for production equipment.
• Workers under constant stress resulting in burnout and staff churn.
• The inability for the organisation to keep track of its provision in the rapid growth stage.
• The inability of production and assembly managers to plan effectively given the demands of rapid growth with systems and processes at breaking point.
• Many missed business opportunities especially related to global markets.
• More product returns, related to the reduction in overall quality of garments.

Mr Te Whatu, the General Manager, has voiced his concerns to the board related to rising costs related to suppliers and decreased margins with the product from retailers. He suspects this is possibly related to the new Auckland region fuel tax. He has also been made aware of a competitor who has greater business scalability but offers lower grade products.

As regards production, Mr Te Whatu has noticed:

• A sharp rise in labour costs BUT not profitability.
• Increased inventory costs with excessive work-in-process inventories.
• Frequent overly used and non-optimised production equipment.
• Delays to some major projects at the expense of bespoke one-off projects.

Operations Management - Capacity and Production Planning

Q1. You are charged with creating two capacity strategies for Call-Us Plumbing Supply. First, consider your understanding of 'capacity planning.' Then think about the factors that you must consider in terms of effective capacity management and design this for the organisation. Re-read the information provided in the case study.

1.1) Describe TWO capacity planning strategies.

1.2) Design TWO capacity planning strategies for improving the operational performance of the organisation.

1.3) Implement ONE capacity planning strategy with an applicable policy to the case study. Ensure your answers integrate materials from the case study.

1.4) Provide a diagram, illustration or model of an ideal capacity planning strategy. Ensure your answers integrate materials from the case study.

Inventory and Stock

Q2. You are charged with creating inventory and stock management strategies for Call-Us Plumbing Supply. First, consider your understanding of "inventory and stock management." Then think about the factors that you must consider in terms of effective inventory and stock management. Re-read the information provided in the case study. Ensure your answers integrate materials from the case study.

2.1) Describe TWO inventory and stock management strategies.

2.2) Create an inventory management tool using widely accepted approaches. Ensure your answers integrate materials from the case study.

2.3) Provide a diagram, illustration or model of an ideal inventory management system or framework. Ensure your answers integrate materials from the case study.

2.4) Provide a worked example of the use of a typical inventory management tool for use in relation to the case study. Ensure your answers integrate materials from the case study.

Investigation-Supply Chain Management

Q3. You are charged with undertaking an initial investigation supporting the future direction of the organisation. First, investigate the definition of supply-Chain Management and the different processes involved in the Supply Chain Management of a Fast-Moving Consumer Goods (FMCG) company in New Zealand starting from planning, purchasing, processing & to distribution. You may wish to read your notes and materials related to current trends in Supply Chain Management and Supply Chain Strategies. Remember, you must clearly label and title all diagrams, flowcharts and illustrations so that all stakeholders can understand your findings.

3.1) Illustrate the process for the organisation as a Fast-Moving Consumer Goods company (FMCG), including planning, purchasing, processing, and distribution elements. Appraise the applicability of your chosen FMCG framework or process.

3.2) Construct a supply chain management process flow diagram using widely accepted models, starting from planning through to distribution. Explain the inputs and outputs at each stage of the process.

3.3) Propose and justify a Supply Chain Strategy improving performance and operations in terms of efficiencies and effectiveness.