Operating Strategy and Management - Assignment Example

OPERATING STRATEGY AND MANAGEMENT By Operating Strategy and Management Question One A supply chain is a system through which the goods or products developed by the company move from the manufacturer to the final consumer. The Coca Cola Company has developed a blue print in the business through which they keep track of their products in the supply chain until the final consumer. The network comprises of the manufacturer, the distributors, the retailers and vendors finally reaching the consumer. This represents a wider supply network that the company has used for years registering success over the years. The flow appears as below: The initial stages involve the supply of raw materials that involve the packaging material and the fruits used in the production of the products. The major business footprint is then developed that involves the manufacturing process that marks the beginning of the supply chain network. At this level, the raw materials provided developed into ready products for market consumption. The products undergo packaging and ready for distribution to different arms of the chain. The company provides the distributors with the products that distribute them to the retailers and other vendors. The vendors and retailers reach the products to the final consumer through a purchase by the consumer when demand develops. These mark the end of the supply chain process of the company with the collection of the recyclable packaging material taken back to the company for cleaning and repackaging. Question Two The supply chain operation of coca cola involves the operations that start from the collection of raw materials to the manufacturing process that leads to final products development. The process mapping eases the production process (Jones & Robinson, 2012, p.279). The process map may flow as below: The process map above simplifies the operations that the company undertakes to reach the products to the market. Each stage of the map indicates different activities that yield different results all leading to the ultimate result of products for the company to trade. The inputs stage of the operations marks the beginning of the production process. Inputs indicate to the collection of raw materials and their measurements and engagement into the machines for the production of final products. The inputs stage involves labor, machines, management, capital and the materials. The inputs then proceed to the transformation process through which the raw materials are processed into finished products. The transformation process involves the machines churning out the raw materials injected into the system. The output part yields the final products that reach the market. At this stage at which the final products become realized and ready for the market. The map indicates the process flow and hence leading to formation of the final products that Coca Cola Company distributes. The major time consuming part of the process is the input phase that involves the development and purchase of raw materials. The process involves the detailed consideration of the chemical components of the products and the fruit needs necessary for the production of the soft drinks. These may at times require some value addition to ensure the taste that the customers have remains the same. The inputs stage control the production process. The level of inputs determines the level of output. More inputs will result to more outputs, which indicate more demand. The step is the most vital stage in the whole process and the nature of raw materials input into the production chain determine the nature of output that the company will obtain. The transformation process will have the inputs transformed into final products. The inputs enter the machines in the production process that may begin with peeling of the fruits provided. At this stage, the raw materials after selection and proper sorting to ensure each nature of raw material goes to the right channel to avoid any mixtures that may affect the final products. The machines normally undergo washing for companies that have limited machinery capacity while large companies like Coca Cola have variety of machines each handling specific brands. The transformation process then employs different machinery in refining the fruits that then produce final products. The production process allows for production of a given quantity and the quality based on the production quantity determined by the demand aspects. The transformation of the mixtures then leads to the filling stage in which the products are filled into the product packaging materials. The cans are then sealed and ready for transportation to the fields for sale. The output is the final product in a can that appears in different packaging names. That creates the difference in the products with Fanta, Coke, Sprite, Krest all coming in different cans as in the packing process. These final products enter the store from which transfer to the market occurs to reach them to the final consumer for consumption. The production process continues under the supervision of the different personnel that the manager has appointed at each point of the production process. These ensure efficiency in the production process to ensure capabilities of the company remain served (Jimenez-Lutter, 2014). These have different roles they each serve in the production process. Some may work towards the ensuring that proper packaging occurs for the products, some provide the supervisory role to ensure products move in the right direction, proper product handling by the other employees, and minimized wastage at the production site among other roles. Question Three The coca cola company produces soft drinks among the many products. Sales history reflects these products have been on the market the longest and serve the company in billions of sales worldwide. Through these products, the company has consistently obtained profits that have helped it grow to its current state. The process of packaging of these products relies on machines heavily with technology at the core of the company’s packaging process. Considering a plant in United Kingdom, that produces canned products, the company uses a number of machines in canning their products. After production, the products filled in the cans sealed then packed in different quantities and packages then delivered to the stores from which they reach the distributors ready for the market. The company boosts of a 2000-can-per-minute machine that fills the products in the bottles and ensures that the filling is efficient and no wastage at the process (Kable Intelligence Limited, 2015). During the process, the company employees monitor and ensure that the process continues smoothly. The company also installed a new canning line that is aimed at improving efficiency and the production levels. The company prides in their resource mobilization approaches that allow for the development of better methods of managing products from their initial development stage to the packaging stage. These provide the company with consistency in packaging that allows for uniformity in the completely packaging process. The use of machines at the packaging point ensures that the quantities produced prove sufficient for the market and meet the market needs. The company also ensures that the products packaged in uniform packages to ensure that the production units and packaging units work efficiently and measure efficient qualities for easy accountability. Based on the above process, the packaging of coca cola company products allows for the efficiency of the operations of the company that allows for efficient utilization of resources. Analysis of operations using the Four Vs The four Vs of volume, velocity, variety, and veracity provide a guiding principle for the operations of the company (Basu, & Wright, 2010, p.117). These provide the order winning and order qualifying factors that help in ensuring that the orders produced by the company in the manufacturing process provides efficiency and effectiveness at the same time looking at the economy in ensuring proper resource allocation and mobilization. During the production process, the first item that needs identification relates with the volume of the product to produce. The company considers the volumes that the demand or market needs before producing to limit production of excess products or less for the market. The volume aspect considers the product log that records the different volumes produced. They provide the company with records on the production aspects to ensure a close monitoring of the orders and manufacturing process quantities. The different varieties of products also considered. These reveal to the company productions and operations managers the different varieties of the products to produce. These range from the selection of the product from the wide range of soft drinks. The selection of the variety is also based on the quantity that the market requires. Prevention of excessive products is major to minimize wastage. The varieties also ensured that each type or brand is produced sufficiently. The veracity aspect requires the maintenance of accuracy in relation to production orders and ingredients mixed in developing products. The company may organize different charts through which different measurements are taken to ensure that the mixtures provide on ingredients provide a consistent taste that may not affect the quality of the product. Veracity also allows for the easy monitoring of customer reactions to the products especially to new products allowing for the improvement of the products overtime based on their observations and tastes. The velocity aspect explains the time taken to produce a given quantity of the products (Denning, Martell, & Cerf, 2015, p.32). Velocity considers the length of time that the employees take to deal with production of a given batch. Velocity applies the rate at which the company has the production process have all their demand quantities produced within a specified time. Considering these four Vs in the operations management ensures that the quality of the product and the market needs remain taken care of regularly. They also ensure the same taste of product that the market is used to leading to improved performance of the company as a result of product positioning and loyalty developed. Question Four Wastes may arise in the organization that may affect the general company product development. Wastage at the manufacturing process comes from poor handling of the products and poor records on the mixing and quantities that produce various products. The production of excessive products that may fail to serve the market is a waste of resources and may lead to heavy losses to the organization. Improving these requires the maintenance of a production schedule that allows for the production of products with a consistent taste. The maintenance of a product schedule will allow for the easy monitoring of the production quantities and ingredient quantities of the products that the company relies on to make decisions. These records support new employees allowing them to easily understand and fit into the system and maintain the production needs. The measurement of the ingredients, quality and quantity they need to produce products in the company provides accuracy that reduces wastage. Other wastes stem from product spillages within the production process. Spillages may occur at different stages of the production and may lead to excessive losses if not controlled. The use of machines for the bottling of the products and directing into different packaging materials provides a more efficient means of controlling the product spillages. Employing employees to monitor the machine processes allows for the reduction of chances of spillage since they will ensure a proper fitting of machines into the cans before filling. Ensuring care in handling the products during transfer and carriage within the manufacturing places also provides for the reduction of any potential wastes. The company may employ the use of machines more technologically advanced to provide for a reduction in wastage of the products and raw materials. During the accumulation of raw materials, care needs to be involved since the raw materials normally are perishable. Obtaining the right quantity for production purposes will allow for reduction in losses. Proper storage too allows for diminished losses. Other wastage points may arise from the machines if not well maintained. Proper maintenance of the machines will allow for the identification of any leakages that may lead to wastage of products. The leakages may result from the perforation of the pipes transporting the products to different destinations in the company. Monitoring these in different levels will result into better control of wastes. The need for regular maintenance aspects that allow for the improvement of the machines and close monitoring of their nature will lead to reduced chances of wastage as a result of machine breakdown or defects. The process map that the company employs serves the manufacturing purposes well. The process directs different resources in the right direction under the supervision of a team of employees that ensure that the process proves successful and the final products meet the standards of the company. Additional adjustments would feature at the production units that would include the inclusion of the process of recycling the packaging material. These would provide the better and complete process of product development. The process would look like below: The process would include the packaging part that covers the cleaning part that ensures that the packaging materials especially bottles are cleaned and disinfected. The stage may also involve the production of other packaging materials before the process of product production or may happen at the same time. After these, the inputs stage follows that has raw materials injected into the process. The transformation process begins as described above followed by the outputs. The last stage would include the collection of the repackaging materials then the development of others and the process continues repeatedly creating an easily controllable process map that covers all activities that the company engages in to develop final products for the market. In conclusion, strategic management requires that a company employ means that ensure timely and continuous production activities that lead to customer satisfaction and supply response that allows no demand unsatisfied. These lead to better customer loyalty that helps the company beat competition. Reference List Basu, R & Wright, J N. (2010) Total Supply Chain Management. Routlegde. Denning, P J., Martell, C H & Cerf, M. (2015) Great Principles of Computing. The MIT Press. Jimenez-Lutter, M. (2014) The Coca-Cola Company. Supply Chain World. Viewed on March 7, 2015 from http://scw-mag.com/index.php/sections/distribution/143-the-coca-cola-company Jones, P & Robinson, P. (2012) Operations Management. Oxford University Press. Kable Intelligence Limited. (2015) Coca Cola Canning Line, United Kingdom, viewed on March 7, 2015 from http://www.packaging-gateway.com/projects/coca-cola-canning/ Read More