Production And Operations Management Information Technology Essay

Production And Operations vigilance Information applied science EssayAs Purchasing Manager for hoity-toity Motors, I let endeavored towards continuous critical evaluation of the existing processes and policies that has impact on the chance(a) operations, with the take of promoting readiness, reducing costs and further improving the act of extravagantlyfalutin Motors. This report aims to give solvents to the challenges faced by highfalutin due to its addition, of acquire and assistanceability of swear out split and materials which play a signifi back tootht affair in its operation and sustainability of the disdain. This report attempts to critically evaluate the process and evoke recommendations for thanksgiving of the watchfulness. It ordain in addition highlight the significance of buying and entry vigilance policies and procedures and introduce the concept of ply twine management as solution to operation challenges and strategies as well as performance management in terms of deliverables and service levels of grandiose Motors to its stakeholders most especially to its guests. postp star OF CONTENTSIntroduction1.1 Aims2.0 terra firma hoity-toity Motors3.0 Critical Evaluation of the authentic Purchasing and Inventory serve for hifalutin Motors Dealership network3.1 structure Processing and Inventory hightail it4.0 RecommendationsTASK 1 Recommendations with respect to structuring the get and gunstock functions SCM Implementation at la-di-da Motors Business Operation render twine ManagementPurchasing and Inventory Management Policies and ProceduresTASK 2 Recommendations for antithetical purchasing and document management policies for purchase of divergent types of service separate and materialsTASK 3 grant filament and Inventory management concepts designed to reduce Investment and stead questments and maintaining adequate service levels of hifalutin Motors dissolver to reduce Investment and Space requirementsPerf ormance Management and inspection and repair LevelsGrandiose Motors Operational Strategies and its ImplicationSCM professionals or SCM consultant or practician using SCM ERP Packages5.0 Conclusion6.0 List of ReferencesIntroductionGrandiose Motors is foreseeing that the sustainability of its successful performance and efficient service is to manage its veritable challenges -ensuring availability of service move and materials and finding a solution to facilities and w atomic number 18house space requirements to accommodate the growth of Grandiose Motorss worry. To sustain the companys growth, impending challenges for the company have been identified and the film to address them has been raised.1.1 AimThis report is made to critically evaluate current processes subscribed in the operation and suggest whatsoever recommendations to address the extr all overted challenges. An idea and the perception from industry practices that Supply Chain Management solves broth and w arhousin g concern for demarcation operations, is an excerpt that Grandiose Motors desire to explore. This publisher go away provide an overview of how Supply chain can help business operations as well as solving the current challenges of the company.2.0 Background Grandiose MotorsGrandiose Motors was established 15 years ago, starting from unrivalled office it has grown to its cardinalth automotive franchise. Grandiose Motors is involved in automobile gross gross sales and by and by sales table service. Managing four automotive franchises and cater to over a million consumers requires hard work, consistency in customer service and continuous improvement to insure sustainability of the business. The automotive dealership of Grandiose Motors operated autonomously wherein only one car sack is being shift and serviced. The business was started with the acquisition of the Mitsubishi dealership after over a decade it had already acquired two to a greater extent and direct it is o n its fourth dealership, the company is now going beyond being synomomous with one car make. The new dealership is his first auto supermarket where they sell multiple car makes. This includes Nissan, Toyota and Volkswagen.The success of Grandiose Motors is attributed to common chord interdependent let out factors. First is volume, second is its marketing methodological analysis hassle-free buying watch and lastly, its solid reputation for after sales service. These three factors are cyclic by nature, the high volume of sales pertains to availability of choices of cars and car makes, then the buying experience entices customers to make their purchases at Grandiose Motors and of course, all cars purchases are keep to ensure its usability and this is done through with(predicate) after sales service- handle diagnosing repairs, by the bye and efficient service and capital customer experience. Grandiose Motors is banking on these performance indicators as their solid trigger for their customers. They have gained the confidence of their buyers, thus, they are known as a trusty car sales dealer and have outstanding after sales support and servicing.3.0 Critical Evaluation of the current Purchasing and Inventory Function for Grandiose Motors Dealership networkCurrently, the purchasing and pedigree function of the four dealership network of Grandiose Motors follows that they purchase their own service split and materials. Grandiose is following de centralize purchasing policy where each dealership is buying their lineage independently. It leads to higher costs and more time for managing caudex at each dealership. of importized purchasing policy helps in give out control over inventory investment, space, quantity and cash discounts and assures uniformity in quality and reduces overlap and duplication of purchasing effort. Grandiose is not profiting from these advantages of centralize purchase policy, (Ng Lam 1991).Supplies forecasts are based on histor ical requirement data since service and material requirements are based on seasonality factors. These seasonality factors are based on weather during the winter there are high requirement for batteries period during summer there are high demands for air-conditioner split. On the other hand, during autumn there are high requirements for antifreeze. In addition, Grandiose Motors may have seasonal promotion for vehicle sales and its work therefore there get out be demands for service split and materials. Grandiose is not managing inventory risk associated with seasonal products effectively. By using a pull contract it can get discount on the prices as well as the inventory risk leave be upon the supplier rather than the retailer during the season, whereas the risk result be with the retailer forward the season (Cachon 2004).Due to different car influences and car make sold by Grandiose Motors, there is a demand for service separate and materials for each kind and model. On t he other hand, there are assorted types that should be maintained and kept operable. The supplies are used to service vehicles and some are sold to consumers over the look to. Parts suppliers are the car manufacturers and sure wholesale to maintain authenticity. There are variant suppliers for oils, lubricants and rooter belts. The sermon of these two types of purchasing should be different as the demand, procurement, type of suppliers and inventory and entrepot is totally different. For example high inventory has to be maintained for rapidly touching separate, where as small inventory for slow moving parts (Duft 2010). And also the purchasing should be centralized for products comparable oils, lubricants and fan belts where as for genuine save up parts it can be centralized (Bossart et al. 2007).Grandiose is able to maintain hassle free buying experience as well as outstanding customer servicing, by ensuring dis rank cost concept, service and repair using the right par ts and repairs at the right time as well as reliable after-sales servicing. This key performance policy might not be sustainable in the future as the company is handling various spare parts of different automobiles and if the current policy is not changed about how it handles the procurement, inventory and storage of the different parts, cost provide definitely increase because they are not using effective ways like placing the rapid moving parts in such a way that they are easily available to the employees for restocking, using mechanical means to handle and movie stock. This forget shine the labor cost and time (Duft 2010).3.1 Restructure Processing and Inventory FunctionFrom the higher up critical evaluation of the current inventory process it is bare that Grandiose needs restructuring of its inventory processing function. Grandiose Motors is growing, the company wants to make sure that the business operation pull up stakes continue through intensify customer experience an d sustainability of the companys after-sales service and support. The seemly use of storage space for inventory is also crucial because space is costly and with the new dealership acquisition investment finances, space and facility support are over stretched. In addition to this, financial resources on hand is depleted in every business investments. It can be said that restructuring and purchasing and inventory supply chain management pull up stakes address these operation at constraints.RecommendationsBased on the above critical evaluation the following recommendations are being suggested for Grandiose Inventory management with relations to the different tasks or forthcoming challenges.TASK 1 Recommendation with respect to structuring the purchasing and inventory functions SCM Implementation at Grandiose Motors Business OperationSupply Chain Management.Supply Chain Management (SCM) can solve its current challenges in space, supplies and finances. As supply chain pertains to strat egic and systemic coordination of all business factions for an arranging with the purpose of efficiency and long-term performance improvement, SCM is the best option for Grandiose Motors. This includes products, services, finances and information from one source to the other in spite of appearance the chain of operation and down to the consumer or end user. The entire purpose of SCM is to create value for the company and the consumer (Jespersen Skjott-Larsen 2005). SCM can be used as a competitive strategy which integrates suppliers and customers also it reduces response time and creates flexibility (Irfan, Xiaofei Chun 2008). signifier 1.Source Jespersen Skjott-Larsen ( 2005), p. )The above model illustrates the Supply Chain Management cycle in terms of externalizening specific to the requirement of the organization (Jespersen Skjott-Larsen 2005). interest this model, the initial step is to identify the operation strategic requirements efficiency in investment, supplies p rocurement and space requirements.1. Supply Chain and Process single-valued functionThis is the designingning part where the CEO and Grandiose Motors management team will brainstorm and define the strategies and directions. The purpose is to identify the required supply chain capabilities and gaps appropriate to solve the operation challenges. As of this time, it has been earlier identified that the challenges involve investment, supplies procurement and space requirements.2. selective information Gathering and categorizationThough meetings, handling and interviews, data are gathered and documents are checked for the data sources like reports, suppliers lists, demand reports, product inventory, infrastructure, storage warehouse distribution and expenses and others.3. Analysis and ValidationData gathered will be analyzed and the SCM model will be recommended. This model will include cost, warehouse, distribution and inventory for supplies and materials. Validation will be done by finance and management. Findings and results and possible issues will be identified from sample data and the model. Recommendations will be acted to get the approval of CEO and the management in order to design the solution model.4. Solution Design and RecommendationThe Supply Chain simulation model will be presented. This is the model designed specifically to address challenges and operation of Grandiose Motors. In addition to this, an optimal chain model will present the financial impact.5. Implementation PlanBased on the recommendation the solution that will be implemented for Grandiose motors will be presented. expand of the task, the resources, suppliers, accountability, structure and timeline will be included. Implementation or Output will carry out a Solution Implementation Plan. This will full point out the task, the resource, the involved party or partners and the time frame. The simulation plan will present opportunities and gaps in order to come up with a specific sol ution. See illustrations below.Sample Supply Chain SimulationFigure 2.Saurce Jespersen and Skjott-Larsen (2005, p. )Purchasing and Inventory Management Policies and ProceduresPurchasing and inventory management policies and procedures will differ depending on the processes and policies of the respective supplier in the Supply Chain. With the SCM, these differences can be minimized since industries and suppliers are now familiar with efficiency and dogmatic process. Purchasing and inventory management ensures physical control and layout of key landing fields of operation. This manages the different procedures with third parties and other partners essential to availability and procurement of supplies and parts. This would cover prognostication and replenishment strategies, quantity calculation and inventory systems (Muller 2003).TASK 2 Recommendations for different purchasing and inventory management policies for purchase of different types of service parts and materialsIn the case of Grandiose Motors, the four dealership networks are managing various car make and models and this would entail different suppliers for materials and parts. This would have various differences in policies and procedures like purchasing policy, delivery time, demand, schedule and methods, forecasting, order placement, payment elimination and return policies and others. With regard to servicing, Grandiose Motors is supporting genuine parts for different car makes and models are which are being supplied by authorized dealers and wholesalers. And it is also selling over the counter products like oil, lubricants and fans. overly it has certain spare parts whose demand is only seasonal. For Grandiose Motors, the company and its Purchasing discussion section has already established a system to manage this inventory and purchasing system. However, due to the business growth, changes in operation as well ensuring persistence of supplies and parts procurement in the future, it has to red uce procuring and inventory costs by having a different policy for different products. Following are the recommendations.1. Using a pull contract and an advance-purchase discount system for procuring seasonal parts. A pull contract has a single wholesale price, and the supplier bears the supply chains inventory risk because only the supplier holds inventory while the retailer replenishes as needed during the season (Cachon 2004).Advance -purchase system will give a discounted price for inventory purchased before the season, and a unvarying price for replenishments during the selling season thus it has two wholesale prices. Also the risk allocation will be with the retailer for parts reproducible before the season and for the parts replenished during the season risk will be with the supplier (Cachon 2004).2. Maintaining high level of inventories for rapid moving parts like oil, lubricants and fans and low inventories for slow moving parts or genuine parts which are required only at the time of servicing (Duft 2010).3. change purchasing policy for servicing parts and centralizing for over the counter sales spare parts (Bossart et al. 2007).4. Rearranging the sales area and storage area in such a way that rapidly moving parts are easily picked and restocked by the employees using mechanical means for storing and moving parts. Using storage space interchangeably, with seasonal parts (Duft 2010).5. Using JIT -Just in time inventory for rapid moving and over the counter sales for parts like oil, lubricants and fans which are easily available and have a large number of suppliers. JIT reduces inventory cost as firms have to pay back costs and interest for holding inventories (Morgan 1991)TASK 3 Supply Chain and Inventory management concepts designed to reduce Investment and space requirements and maintaining adequate service levels of Grandiose Motors.A. Solution to reduce Investment and Space requirements enthronisation Efficiency in nest eggThe solution for in vestment is settled through review of all processes and ensuring efficiency and eliminating redundant process. This ensures cost minimization and ensures savings for the company. Minimize paper transactions and the use of recycled papers for receiving papers and documents is recommended. This will ensure savings on office supplies costs.SPACE REQUIREMENT Central WarehouseThe locations of the four dealership network may have epoch-making differences, however the company has to strategically situate a central warehouse for the four dealerships as it is more cost efficient. The 45 minute to an mo drive is better than renting expensive warehouse spaces. In addition, proper scheduling of supplies and parts replenishing will ensure that a proper inventory system is in place. The following will be involved cargo ships of company moving trucks, warehouse people and warehouse department, database in place for inventory and order system, central warehouse.B. Performance Management and S ervice LevelsThe above recommendations automation, paper-less transactions, process efficiency and other cost reduction measures for Grandiose Motors will ensure savings on investment. Since there is no need to avail on expensive warehouse spaces, the company will save more to use the investment in purchasing supplies and supporting system automation and database software. The Central Warehouse may be located in one of the network dealerships or in the main office of Grandiose Motors this will just be an additional facility and will not require additional start up investment. Service levels and performance management are measured through the companys key performance indicators. These are measurable objectives to ensure that the performance of the company is able to attain its target and measure the savings and cost of the organization (Muller 2003). The service level for Grandiose Motors is determined by various factors such as servicing turn around time, timely availability of su pplies and parts for different dealership network, sales and volume, distribution and inventory. at a lower place is the sample transport and packaging process model followed by Toyota Motors which illustrates the model to follow and ensures that each process is documented and all are certain of the system (Iyer, Seshadri , Vasher 2009).ToyotaFigure 3.C. Grandiose Motors Operational Strategies and its ImplicationBy Following SCM concepts, best sources and sustainability of the business is ensured through proper sourcing of suppliers, planning of warehouse and savings efficiency in processes to manage investment finances. The forecasted implication would be a change in operation. For effective management of inventory and to meet the changing demand and supply trends of the market, it is essential to develop a SCM which is responsive to the propellant business environment so as to profit from the new opportunities in the market (Len Pea 2008).D. SCM professionals or SCM consultant or practitionerGrandiose Motors should employ the services of consultants or third party professionals ingenious with Supply Chain management and familiar in the Automobile dealership, servicing and supply procurement. SCM can be outsourced at Grandiose Motors.E. Using SCM ERP PackagesERP packages are used to substitute traditional separate SCM into an integrated suite for a new business model resulting in a compact move of information through the enterprise. It helps in automation of SCM updation, inventory control, reporting, ordering, and scheduling, (Wu Kao ,2006).5.0 ConclusionSupply chain management is a system that is implemented to an organization to ensure improved performance. For organizations that are new to this model and application, this may be change that has to be managed. Management has a significant role in ensuring that the plan and implementation of the SCM model has been carried out. With the growth of a business, the entire organization should go steady t he direction of the company and that the quality measures through SCM and efficiency in processes should be encouraged.This paper proposed recommendations for the improvement in terms of resolving the current challenges in investment, space and supplies procurement. In addition to this the benefits and implication to business of SCM concept has been discussed.