Operations Management Cds

Topics: Customer, Cost-of-production theory of value Pages: 5 (1369 words) Published: November 12, 2012
OPERATIONS MANAGEMENT ASSIGINMENT 1 OF 2: CONCEPT DESIGN SERVICES.

TASK ONE:
CDS Company values that operations management is vital to the organisation as it outlines their aims and objectives of manufacturing and assembling products in order to efficiently fulfil customer requirements. In order to discuss the extent of how existing operational competencies within CDS contributed to adopting to a new business strategy there is an outline of ‘the four V’s’ analysis with a conclusion of using Hayes and Wheelwright’s theory of four stages contribution. The ‘four V’s’ analysis of CDS is presented in the following table. This type of analysis can give an overview of CDS’s previous operations and the adoption of new ones. VOLUME| VARIETY|

BEFORE CONCEPT STRATEGY| AFTER CONCEPT STRATEGY| BEFORE CONCEPT STRATEGY| AFTER CONCEPT STRATEGY| Old machines made 3 items per min.‘600% productivity’
‘600% productivity’
Design under ‘focus’ products was successful and volume was high with high costsReduction in cost Reduction in cost
Small injection moulding machines usedProduction more efficient Production more efficient
| New machines make 18 items per min.Not only new machines gave high productivity, it allowed production costs to be low and CDS targeted smaller moulding companies.New large multi-cavity moulding machines used| Small injection moulding machines meant small variety of products could only be madeVariety of products can be made at short notice Variety of products can be made at short notice

Although production becomes flexible, the drawback of this is the complexity of changing moulds on large machines that leads to a prolonged process. This leads to an increase in production costs.

Although production becomes flexible, the drawback of this is the complexity of changing moulds on large machines that leads to a prolonged process. This leads to an increase in production costs.

| Large machines allow variety of moulding to take place without changing to many times| VARIATION| VISABILITY|
BEFORE CONCEPT STRATEGY| AFTER CONCEPT STRATEGY| BEFORE CONCEPT STRATEGY| AFTER CONCEPT STRATEGY| Have had a wide variation of products but production schedule was long along with quality inspectionTrading is stable and production process becomes more of routine work. Trading is stable and production process becomes more of routine work.

| Variation is high as they have same contracts to take orders so they know what’s expected.| CDS were manufacturing to five large companies. Quality of focus products was good and distribution channels were excellent.Distribution channels are good but cost has incurred in express delivery made by CDS instead of customer. Distribution channels are good but cost has incurred in express delivery made by CDS instead of customer.

| Having problems of getting use to sub-contracting and recognising on what ‘standards of quality’ there should be in their products|

According to the ‘Four V’s’ analysis and Hayes and Wheelwright’s four stages of operational contribution (shown in appendix 1), CDS have moved from ‘stage 2’ that is Externally Neutral to ‘stage 3’ of being Internally supportive by implementing a new strategy from moving from focus products to concept products. CDS were already popular with focus products so their previous operations were giving a fair contribution to the organisation. The ‘volume’ in the ‘four V’s’ analysis has increased operational capabilities but to a certain extent as there still is a drawback of no planning in sale forecasts and production time wasted in changing moulds. Each area in the ‘Four V’s analysis is what actually contributed in CDS to implement a new strategy. Operations taking place at CDS allow CDS to build upon their ‘stage 2’ strategy according to Hayes and Wheelwrights ‘four stages (see appendix 1).

Positive factors such as increase in productivity and wide variety of products leads to more outputs and results in...
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