CASE STUDY: HUDSON'S ALPINE FURNITURE (MARCUS) Operations management deals with the designing and redesigning of business operations in terms of production of inventories. It ensures that the business operations are efficient due to use of few materials and effective because they meet customers’ requirements. It deals with the way the business converts inputs into output. Operating in a highly competitive environment, Hudson’s Alpine Furniture business firm needs standard procedures to operate the firm successfully. Indeed, any operational issues affecting the business should be addressed with a sense of urgency so as to avoid of customers dissatisfaction, employees low morale and the business incurring losses.
Hudson should play an extraordinarily significant role in ensuring that any inefficiency is effectively solved to enhance business performance as well as overall productivity. He should be able to provide the necessary tools needed and cater for expenses incurred. Everybody in the business should work as a team in attaining their objectives and also addressing the operational issues. This problem should not be viewed as a problem that only affects the employees or the owner of the business, but it should be seen as everyone’s problem.
Although many businesses need to produce and deliver their products to their stakeholders and clients, this may not be the case always depending on the plan of the organization. Performance of the business may be influenced by a variety of operational issues and problems. Operational Problems fall under five categories: these are delay issues, control and management issues, wastage issues, work cultural issues and quality issues. Wastage, delay and quality are direct and primary while management or control and work cultural are secondary and indirect factors.
Operational issues and problems frameworks are superb value to the organization because they assist it in identifying and understanding operational problems and issues in an effective way. By use of these frameworks, the business will be able to analyze the operational issues and problems and be able to solve them. In this essay, operational issues and problems facing Hudson’s Alpine furniture will be identified. It has discussed on how to enhance the operational effectiveness and efficiencies of the firm in relation to operations management based on their current operations (Mark, 2004).
The firm has too many customers because they are supplying to private owners of ski lodges, holiday cabins within the snow fields and the country of New South Wales Alp, and commercial buyers. These many buyers are causing problems in the firm under the following conditions, delivery levels, production scheduling, quality of raw materials and products, and in terms of consumer satisfaction. As a result, Hudson Alpine furniture should find ways of sustaining their current operational productivity, effectiveness and efficiencies. For the firm to improve on their productions and operations, they should employ integrated management strategies such as management of supply chain, production scheduling, quality management and inventory management.
These strategies have been covered in this discussion and all the information related to them, and lastly operational problems have been solved. Also, recognition of development of operations management and trends will be discussed. Finally, we shall conclude discussions whereby operations management solution on how to maximize the operations and management, production capacity and consumer satisfaction, rationalize the suppliers and on making improvements on the quality of products (Mark, 2004).
The dilemmas caused by the problems facing the firm may be evaluated by use of operations management evaluations. The following are the issues that need to be addressed in the discussion. Delivery operational management is supposed to ensure optimal operations in transport. It implies that the cost will be reduced leading to increase of speed and safety of distribution. The firm should ensure that products are of high quality output thus minimizing rejections of the product by the consumer. Production scheduling system maximizes the productivity of raw materials available such as manpower and equipment.
Also Customer satisfaction reduces complains of the consumer and increases the loyalty of the customer. Process strategy practices lead to faster retrieval of needed merchandise. However, Inventory management practices and policies reduce the stock holding and increases the availability of raw materials needed for production. Hudson Alpine furniture firm should see the opportunity to enlarge their current operation management so that they may increase their profits. Later, I will discuss several management operations that the firm may use to increase on their profits.
This discussion evaluates the firm behavior of the operations management. Due to the increase of production level, the firm will raise supply of products to local customers, and commercial buyers are intertwined directly or indirect to the operations management trends (Lambert & Cooper, 2000). This shows clearly how Hudson furniture firm is faced by the problem of delay in deliveries due to resource limitations (Cristobel et al. 2005, pp. 289-301). Scheduling and Strategic planning of operations are highly required by the firm. Production is based on three dimensions: quality, delivery and cost.
Quality is the primary value of the product, and it is highly desired by firms. Quality is characterized by specifications, varieties and features. The second dimension is the delivery, and it deals with the provision of finished goods to meet customer needs at the right place, the right time and the right amount or quantity (Lambert & Cooper, 2000). Lastly, cost as a dimension refers to the production cost and the cost of delivering commodities to the customers. Cost affects the marketing and profits of the product. The following are the basic components of scheduling chain management.
The firm needs a strategic plan so that it may manage its resources. It should consider a source that will be providing them with raw materials. Supply chain managers should plan the required items for production like packaging, testing and preparation for delivery. Also, the firm should get the receipts of orders from their consumers and satisfies their needs appropriately. Return component is where the supply chain planners should build a flexible system which can accommodate excess products coming from consumers.
The firm is also affected by delivery management. In fact, it should take the responsibility of controlling its inventory and deliveries. The firm is incurring too much cost because it has to hire an expensive warehouse and in addition due to delivery costs. The demand associated with delivery of promised goods may lure the operation management to shorten or speed up some valuable operations leading to decrease in the quality of the products. The cost of rejected and wasted products is spreading all over products that are valued (Tan & Wisner, 2003).
This will as a result raise the production cost. The firm is supposed to address this by distributing all the unreliable stock. Management should also supply all stock needed to be transported on time. The firm should focus on reduction of cost; they should consider planning for delivery programs such as frequency of delivery so that the inherent costs are reduced. They should consider being reliable in terms of response to time and maximizing the consumer’s utility.