StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Operations and Process Management - Assignment Example

Cite this document
Summary
The paper 'Operations and Process Management' states that replenishment processes represent one of the fundamental planning parameters for the activities of supply chain. The term for replenishment processes differs by ERP system and can be expressed in more than one field…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.3% of users find it useful
Operations and Process Management
Read Text Preview

Extract of sample "Operations and Process Management"

Operations & Process Management a) Work out the key replenishment parameters for Item H1. Then, produce a fully-labeled graph of the expected inventory level for this component over the first 20 weeks of 2015. Replenishment processes represent one of the fundamental planning parameters for the activities of supply chain. The term for replenishment processes differs by ERP system and can be expressed in more than one field. Other terms that are used to describe this process include order plan or policy code. Every replenishment process needs further planning parameters, however many of these parameters are common across different processes. The important replenishment parameters contain the Item H1Unit Cost, Standard Order Lead-time and Stock On-Hand. The component structures of the Item H1 are distributed by Item K3, Item M4 and Item K3. Expected inventory level is the stock held by a business more than its obligation for the lead-time. Firms hold Expected inventory level to guard against “stock-out” (Shah, 2005:227). Expected inventory level = “(Maximum Daily Usage − Average Daily Usage) × Lead Time” (Mowen, Hansen & Heitger, 2011:334) = (1328.142857- 664.0714286)*20 = 13281.43 Following is the inventory profile chart over the first 20 weeks of 2015: b) Calculate the expected average inventory level (no. units) and value () for each component, during the whole of 2015. Average inventory is utilized to approximate the quantity of inventory that a company naturally has on hand more than a longer time period than just the last period. Since the balance of inventory is computed at then end of the last dealing day of a month, it can vary significantly from the average quantity over a longer period of time, depending upon whether there was an unexpected decline of stock or possibly a big supplier delivery at the ending of the month. “Average inventory” (702) is also helpful for assessment to revenues. While revenues are naturally accessible in the statement of profits and loss not only for the most recent month, but also for the “year-to-date” (Bragg, 2011:151), it is helpful to also compute the average stock for the “year-to-date” (151), and then match the inventory average balance to the revenues of year-to-date in order to see how much stock investment was required to support a specified sales level. Average Inventory level Calculation: The calculation of average inventory is to add mutually the ending and beginning inventory balances, and divide the sum by two. The rule is: “(Beginning inventory + Ending inventory) / 2” (151). Beginning inventory total (A1-H1) = 13359 Ending inventory total (A1-H1) = 14690 So Average inventory levels = (13359+14690) / 2 = 14024.5 c) Propose a detailed alternative inventory management policy that would help the company reduce its total annual stockholding costs by at least 20%, and quantify the expected savings. The company considers the average costs connected with “placing, processing and receiving” (Sabri, Gupta & Beitler, 2007:34) a replacement order for any part amounting to £40. It also estimates the standard cost of holding a particular unit of every component in inventory for an entire year at 6% of the unit cost of the item. An “alternative inventory policy” (Fu, 2014:46) that denotes the quantity of units of inventories, which should be held to decrease costs is proposed. We can reduce the total annual stockholding costs by recognizing average inventory and decreasing “safety stock” (Minner, 2000:35). By reducing overall lead time and lead time variability, estimating investment cost and having a clear awareness of real possible investments with bulk purchases, optimizing store layout and assessing the possibility of using narrow “aisle handling equipment” (Bose, n.d.:82) can help in reducing low producing SKUs to decrease holding cost. Recognizing one-time dealings, prior and seasonality forecasts, and creating baseline anticipation, estimating merge-in-transit, utilizing tools and moving stock from one place to another to avoid unnecessary buys etc. If you are reducing stockholding costs by $300 for instance, you still want replenishing to stay the line running. If you ordered about $1000 of stock and are now altering to $500 two times per month, the savings will be the cost of money $500 X 20 % cost of money. It is anticipated that this would help to quantify the savings. d) Use the weekly usage data for Item H1, along with any other relevant parameters from your work on part a (above), to develop the MRP records for Items H1, K3 and M4 over the first 26 weeks of 2015. “Material Requirements Planning” (Kale, 2013:545) (MRP) is a computer-based manufacture planning and stock control system. MRP is concerned with both inventory control and production scheduling. It is a “material control system” (558) that focuses on keeping sufficient inventory levels to assure that necessary materials can be obtained when needed. MRP is appropriate in conditions of numerous items with compound “bills of materials” (558). MRP is particularly suited to producing settings where the demand of a lot of the subassemblies and components rely on the demands of items, which face outside demands. Demand for finish items is independent. On the contrary, demand for factors used to make end items rely on the demands for the ending items. The differences between dependent and independent demands are significant in categorizing inventory items and in increasing systems to control items within every demand categorization. The systems of MRP were developed to manage better with dependent items of demand. The three main inputs of an “MRP system” (547) are the master production plan, the product arrangement records, and the stock status reports. Without these essential inputs the “MRP system” (547) cannot function. MRP records of H1 week (Including items K3 and M4) Week (26 weeks) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Gross requirements 620 444 629 552 473 212 632 383 338 615 724 593 571 587 301 275 411 317 420 200 376 498 259 689 578 432 Scheduled receipts (cash on hand-1800) 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 Net requirements 551 375 560 483 404 143 563 314 269 546 655 524 502 518 232 206 342 248 351 131 307 429 190 620 509 551 Time phased net requirements 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Planned order releases 1173 821 1191 1037 879 357 1197 699 609 1163 1381 1119 1075 1107 535 483 755 567 773 333 685 929 451 1311 1089 1173 Reference List Bose, S. (n.d.). Sustainable 2020: Future Supply Chain Through Spyglass. Lulu.com. Bragg, S. M. (2011). Bookkeeping Essentials: How to Succeed as a Bookkeeper. John Wiley & Sons. Fu, M. C. (ed.) (2014). Handbook of Simulation Optimization. Springer: NewYork. Kale, S. (2013). Production and Operations Management. New Delhi: Tata McGraw-Hill. Minner, S. (2000). Strategic Safety Stocks in Supply Chains. New York: Springer-Verlag Berlin Heidelberg. Mowen, M., Hansen, D. & Heitger, D. (2011). Cornerstones of Managerial Accounting. USA: Cengage Learning. Sabri, E. H., Gupta, A. P. & Beitler, M. A. (2007). Purchase Order Management: Best Practices Process, Technology, and Change Management. U.S.A.: Ross Publishing, Inc. Shah, P. P. (2005). Financial Management + With CD Indian Text Edition. New Delhi: Dreamtech Press. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Operations & Process Mgt Assignment Example | Topics and Well Written Essays - 1000 words”, n.d.)
Operations & Process Mgt Assignment Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/management/1675346-operations-process-mgt
(Operations & Process Mgt Assignment Example | Topics and Well Written Essays - 1000 Words)
Operations & Process Mgt Assignment Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/management/1675346-operations-process-mgt.
“Operations & Process Mgt Assignment Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/management/1675346-operations-process-mgt.
  • Cited: 0 times

CHECK THESE SAMPLES OF Operations and Process Management

Operations and Processes Management - McPherson Charles Solicitor

Strategic impact in Operations and Process Management Operations and Process Management can be very crucial in the success of a business in terms of revenues, the capacity, investment and the cost incurred in the process of doing business.... Operational and process management is applicable in industries because every function in an industry requires a process for it to be accomplished.... process management can also be defined in terms of management where the mangers receive more experience on managing various types of operations in an organization....
12 Pages (3000 words) Essay

Management Operations

This assignment "management Operations" shows that this report outlines a problem encountered within a further education college relating to the provision of tuition for students.... hellip; The issues identified will be explained using operations management concepts and possible solutions presented.... The issues identified will be explained using operations management concepts and possible solutions presented.... It begins with an outline of the problem and its consequences, then presents a process map....
16 Pages (4000 words) Assignment

Supply Chain Theory: Argos

Operations and Process Management.... The book is also responsible for the avocation of the debate developed in association with sustainability, innovation and supply chain management, which are used in the concept of sustainable innovations (Slack et al, 2012 Pg 32).... The same model has used management, which is used in the gap for differentiating development initiatives and those that are seen to have flopped....
6 Pages (1500 words) Case Study

Just answer 7 questions

Operations and Process Management.... Operations management.... Overtime, Mattel may be seen as mirroring the strategy of its XXXX XXXX Mattel Case Study 01/11/11 Mattel Case Study Mattel has lost control of its quality process through outsourcing and processes designed to ensure compliance of suppliers appear to be ineffective.... )Although Mattel has dedicated employees to ensure the quality of products produced by sub-contractors, it is believed that the erosion of margins and pressures in the market have lead to such employees turning a blind eye to bad practice and corner cutting in the manufacturing process....
1 Pages (250 words) Assignment

The Product Service System

he process of servitisation necessitates supply chain and procurement professionals to adapt quite a large number of variables within their... This concept is of the essence in that the decisions made herein have monumental effects on the cost of production of a company, efficiency in… Product servitisation refers to the stratagem of value creation through the addition of services to products or rather, instilling a service in the place of a product....
6 Pages (1500 words) Essay

Operations Management

All these activities… Additionally, there are some other activities that are related to operations management such as managing purchases, quality control, logistics, storage, inventory control and evaluation processes (Slack, 2012, p.... In the urse of this study the knowledge that I have acquired with regards to operations management is simply based on some of the activities that are listed above.... My understanding of operations management is that it mainly focusses on the substantial measurement as well as analysis of the internal processes....
8 Pages (2000 words) Assignment

The Operations and Process Management Systems of IKEA

The Company is started in the year 1943 at Sweden by Ingvar.... IKEA is considered to be the world's largest manufacturer of furniture.... IKEA is a retail outlet which sells flat pack furniture,… IKEA, Ingvar Kamprad Elmtaryd Agunnaryd is the company selected for this study.... The Company is started in the year 1943 at Sweden by Ingvar....
17 Pages (4250 words) Research Paper

The Issue of a Gold Coast Savings Bank

The paper "The Issue of a Gold Coast Savings Bank" highlights that with the increased number of requests, the bank requires to develop a process plan which is more effective and efficient.... Based on this the set of issues that have been chalked out are then used to improve and redesign the workflow of the process.... Gold Coast Savings Bank has designed a new process flow for the refinancing for the home loans.... The company has been faced with a number of requests during the year, and developing a process which is effective as well as fast has become a prime concern for the company....
9 Pages (2250 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us