BUS 515, OPERATION MAMAGEMENT

BUS 515, OPERATION MAMAGEMENT

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Assignment 2: Vice President of Operations, Part 2

Due Week 6 and worth 280 points

Refer to the scenario from Assignment 1.

Write a six to eight (6-8) page paper in which you:

Evaluate two to four (2-4) weaknesses that are evident in the selected organization’s product life cycle. Generate a new product design and product selection, and then determine three (3) strategies that the organization needs in order to strengthen the operation. Provide support for the rationale. Determine the key components of supply chain management for the company you have selected. Determine three (3) major issues that could affect the structuring, sourcing, purchasing, and the supply chain of your organization. Provide a solution to each issue. Develop a total quality management tool that identifies and analyzes any future issues. Provide a rationale for developing the selected tool. Analyze three (3) advantages in employing the just-in-time philosophy in your organization. Evaluate three to five (3-5) means in which the philosophy could potentially impact quality assurance. Provide specific examples to support your response. Determine a qualitative and quantitative forecasting method for your operation. Next, create a table in which you identify the characteristics of the operation that relate to each method. Evaluate the strengths and weaknesses of each method. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources.

Your assignment must follow these formatting requirements:

Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

Determine the key components of supply chain management including structuring, sourcing, purchasing, and managing the supply chain. Examine how the total quality management process is a strategy for a competitive advantage in the marketplace. Identify the key elements of just-in-time manufacturing and its impact on quality assurances. Develop a forecasting method appropriate to a production or service operation. Use technology and information resources to research issues in operations management. Write clearly and concisely about operations management using proper writing mechanics.

Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills. Click here to access

Students, please view the “Submit a Clickable Rubric Assignment” video in the Student Center. Instructors, training on how to grade is within the Instructor Center.

Assignment 1: Vice President of Operations, Part 1

Due Week 3 and worth 200 points

Scenario: Imagine that you are the vice president of operations at a production or service organization. You have noticed that your organization’s current operations strategy is not supporting the challenges that the organization is presently facing. In order to maintain a competitive edge, you must address these challenges with your Chief Executive Officer immediately.

Select an existing production organization. Analyze the organization’s current vision, mission, business strategy, operation strategy, supply chain, total quality management, just-in-time philosophy, forecasting method, statistical technique, facility location, work design, project life cycle, and project management. Note: You will need this information in order to complete this and subsequent assignments.

As you collect the information for Assignment 1 and Assignment 2, remember that in Assignment 3 you must prepare a presentation for your Chief Executive Officer.

Write a three to five (3-5) page paper in which you:

Evaluate key elements of the selected production or service organization’s operational efficiency with its operational strategy. Determine three (3) tasks that do not align with the operational strategy. Determine the weaknesses that are evident in each task. Formulate a new operations strategy for the selected organization based on the four (4) competitive priorities (i.e., cost, quality, time, and flexibility). Analyze both the structure of the competitive priorities and infrastructure of the production process. Develop three (3) new enablers that are aligned with the long-term plan of the selected organization. Evaluate three (3) pros and three (3) cons of the new enablers. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources.

Your assignment must follow these formatting requirements:

Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

Analyze the differences between service and manufacturing operations management to identify planning considerations. Formulate an operations strategy to conduct production or service operations. Explain how an operations strategy impacts product design and process selection. Use technology and information resources to research issues in operations management. Write clearly and concisely about operations management using proper writing mechanics.

Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills. Click here to access the r

OPERTIONS MANAGEMENT
VICE PRESIDENT OF OPERATIONS, PART I
Introduction
DELL computers are the leading supplier to government and corporate customers and provide next level of industry standard Pentium processor power. The company has the unique ability to take a market strategy position during important technology transitions via build – to – order manufacturing process.
Operational strategy
The build – to – order strategy is one of the best operational strategy via which the company is able to sustain its competitive position across the globe (Part 1, Overview, Page no. 6). This approach allows the company to company to maintain low level of inventories and easily integrate the emerging technologies within the systems. In order to sustain its competitive position, DELL needs to redefine its operational strategies so as to make business and operational strategies such that the entire business model is aligned with its customer operation strategy.
In the year 1994, DELL was struggling as a second – tier PC maker as the operational strategy included ordering components in advance and manufacturing to inventory. This model was transformed into build – to – order model, whereby the company is now able to work on “ZERO” inventory level, thus, providing the cost and quality advantage to the customers (Omar Farooq, January 4, 2013). The company eliminated intermediaries in its supply chain and started taking direct order with the companies as well as independent customers. This way, DELL is able to achieve cost advantage and it went the far beyond the simple pursuit of efficiency and asset productivity. In addition to this, DELL carefully targeted customer relationship management strategies, budgeted needs and that wanted a predetermined set of product models. The company has the capability that drove meteoric increase in customer market share as internet becomes more powerful and persuasive. DELL differentiated itself by developing a set of extremely effective customer specific intranet websites, which is tailored as per the situation of the customer.
DELL has implemented direct channel strategy that gave the elements of its powerful business model. It includes extremely crisp product life cycle transitions, real – time customer feedback, ability to control prices on the real – time basis and the ability to “sell what you have” i.e. using sales incentives and day – to day pricing. Thus, it can be said that the company has developed its operations capabilities in five crucial areas that helps it in implementing make – to – order strategy which helps in maintaining the quality standards required by just – in – time operations.
New operational strategies
In spite of best operational strategies, the strategy of DELL is collapsing profit margins because of the rapid increase in competition at the global scale. It is important for the company to focus on better pricing strategy because of the cut throat competition whereby the competitors are also offering same services and quality. DELL has tight competency with other big computer sellers like HP and Compaq (Omar Farooq, January 4, 2013). Social factors are also affecting the business of the company. Computer companies have to acknowledge that in the current culture, people are still not very sure about the credit card sales because of the huge expenses of computers. In order to achieve the confidence of the customers, it is important to implement face – to – face or door – to – door operations. This strategy will help in gaining the faith of customers.
Added to this, DELL has to focus more on internal business environment performance in a continuous improvement processes. It includes sharing the success of the company with the entire team, whereby the company is able to establish the core competent team (Schwie Belmann Jurgen, n.d.). This move is important for DELL, because products and services are the things that can be easily imitated, but the competent team can never be imitated. In the year 2000, DELL redefined its business using e – commerce techniques that has able to share its online sales expertise worldwide. But, the company is facing some force from competitors in terms of Information Technology as the EDI tool gives optimum opportunities for reducing cost and establishing tight relation with its suppliers and the customers as well.
Furthermore, the threats of environment also impact the operational strategy of the organization. Managers of the company need to carry out SWOT analysis periodically so as to judge the current position and look for the opportunities to sustain its competitive position. The company is threatened with the rapid changes in technology that calls for effective change management in offerings, skills and knowledge of the workforce. Added to this, it is important DELL to work on its weakness and these are single sourcing, reliance on corporate clients and new product market. It is important to work in this area so as to sustain its competitive position (Schwie Belmann Jurgen, n.d.).
Conclusion
Thus, operational strategy is the key of success for any organization and DELL’s direct – to – customer business model is the key via which it is able to sell its products and services direct to the customers. This has helped the company in eliminating intermediaries and thus, is able to stay competent on prices. The customized approach is very effective so as to satisfy the different needs of the customers, but it need to take appropriate step for effective team building, change management and knowledge management, as these are the key to success in the current competitive era (Part 1, Overview, Page no. 6). Therefore, DELL must be aware of the benefits, it wishes to realize and must ensure the investment of appropriate amounts of resources to obtain benefits (Omar Farooq, January 4, 2013). The competitiveness of DELL lies in its cost and operational strategy but it is important for the company to focus more on finding several options of sourcing and focus on development of newer products. Although, the information technology has a common threat and that is rapid change of technology but JIT is one of the best options, the company has implemented so as to cope up with these changes. To conclude, DELL has to re – architect its process to facilitate and promote the adaptable model for future.
References
1. Omar Farooq, January 4, 2013, DELL STRATEGIC MANAGEMENT, data retrieved on October 16, 2015 from http://www.slideshare.net/farooqomar/dell-strategic-management
2. Part 1, Overview, Page no. 6, Build – to – order & Mass Customization: The Ultimate Supply Chain Management…, data retrieved on October 16, 2015 from https://books.google.co.in/books?id=mGQXVqM1XmEC&pg=PA6&dq=dell+build+to+order&hl=en&sa=X&ved=0CCQQ6AEwAGoVChMInPfW54HHyAIVEQWOCh1NuA8Q#v=onepage&q=dell%20build%20to%20order&f=false
3. Schwie Belmann Jurgen, Dell: Can Rivals Beat its Strategy, data retrieved on October 16, 2015 from https://books.google.co.in/books?id=HhYqpFx2nY0C&pg=PR2&dq=dell+strategies&hl=en&sa=X&ved=0CDEQ6AEwAmoVChMIi-ug-oHHyAIVRo-OCh0Ezg_F#v=onepage&q=dell%20strategies&f=false

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