Operations Management Module Assignment - a Proposal for Operational Efficiency and Quality Improvements

Executive Summary

The objective of this assignment is to write a proposal to medium sized manufacturer to study various business process improvement techniques and tools available, critically analyse them and suggest approaches how to reduce product defects, wastages and, machine breakdowns and also to propose a good inventory management system, using a combination of approaches including effective forecasting methods. The concept of Lean Manufacturing itself refers to a concept of waste elimination in the processes. Total Quality Management (or TQM) can be described as the "development of an organisational culture which is defined by, and supports, the constant attainment of customer satisfaction through an integrated systems of tools, techniques and training". Operations Managers are responsible for managing activities that are part of the production of goods and service, with direct responsibilities include managing the operations process, embracing planing, design, control, performance improvements, and operations strategy. There is a wide variety of options when it comes to determining how specific manufacturing operation will be run. For a manufacturing company of 300 employees, the author proposes the following approach: Reconfiguring the manufacturing into Lean Production to reduce wastage, and implementing TQM and using its tools to improve product quality and reduce rejects and recalls. To address machine breakdown, schedule and preventive maintenance followed by Total Productive Maintenance techniques can be used. For inventory management, forecast accuracy also becomes critical to the proper utilization of inventory and resources, therefore it is a primary requirement in implementing a robust inventory management system. The implementation of ERP can follow suit either as a top-down approach, aided by external consultants or as an overall Business Process Re-engineering initiative or Lean Manufacturing implementation.

Introduction

This paper is written for the Bachelor of Arts Business Management for the Operational Management Module coursework.

Objectives of this Assignment

1. To study various business process improvement techniques and tools available, critically analyse them and suggest approaches how to reduce product defects, wastages and, machine breakdowns.

2. To propose a good inventory management system, using a combination of approaches including effective forecasting methods.

The author has decided to approach the core of the assignment in two separate sections, Part A (Chapter 3), dealing with production quality issues & Part B (Chapter 4), dealing with inventory management issues.

Definitions and Interpretations: A Primer on