Operation Management German company Pentacon

Question: The manufacturing/service process design is based on a considerable number of different variables and represents, in essence, a number of trade-offs. Depending on the nature of the business, the nature of the product, and the nature of the market place, the chosen process design will obviously be different. A) By taking as an example a product or a service from an industry that you are familiar with, critically discuss the main factors that influence the manufacturing/service process design?B) Discuss how the five operational performance objectives may influence decision-making associated with process design and layouts? Answer: Introduction: This report discusses some theories and concepts of operation management. It is the internal process of the organization that helps to improve the performance of the organization. This report also shows the process of operation management of a German company Pentacon. It is a German company that manufactures camera. It is mainly known for producing the SLR (Single lens reflex) camera, medium format camera and other cameras. Pentacon also manufactures different types of slide projectors. This report shows the manufacturing design or the design of service process design of the particular company. This report shows the operational performance objectives that influence the process of design. A. Factors of influencing the manufacturing process: Concept of operation management: Hence, the concept of operation management is very necessary for understanding the process of manufacturing or service design of a product or service of a company. It is the internal process of the organization that helps to improve the performance of the organization. As defined by Chopra and Meindl (2013) Operation management is the process of managing the logistics, supply chain of the organization in order to measure the current performance of time, cost and quality. On the other hand, Manopiniwes et al. (2013) argued that, operation management refers to the overall management of designing and controlling the process of manufacturing and production of the products and services of a business company. Figure 1: process of Operation management (Source: Casson, 2013, pp-10) As stated by, Taunton (2014) the activities of operation management involve the manufacturing process of a product, production, development and distribution. On the other hand, Casson (2013) argued that, other activities, like purchase managing, quality control, logistics, inventory control, evaluation are also involved in the process of operation management of a company. Operation management therefore should meet all the requirement and strategy of a company or the demand of the customers. The process of Operation management involves thorough process and method within the company. There are some factors those need to be considered while making plan about the process of operation management of a company. The size, location, logistics elements, products, services and customers of the company are the factors those always need to be considered in order to implement the process of operation management. Supply Chain Management is the most important area of operation management. Supply chain management: According to, Elgazzar et al. (2013) supply chain management refers to the process of managing the materials and information within the links between the chains. This chain therefore includes some logistic elements, like manufacturing plants, vendors and distribution centers. For building an effective supply chain management process, full scale co-ordination among these partners is very necessary and important. This process of co-ordination requires effective communication through these partners. Effective relation within these partners often grows with the help of effective data sharing by communication networks. Therefore, effective communication network will help in the process of supply chain management of the particular company. On the other hand, Narasimhan and Narayanan (2013) stated that, the process of supply chain management involves three important levels of activities within a company. Strategic level, operational level and tactical levels are these levels those have involved with the process of supply chain management. An effective supply chain management therefore involves with the smooth traffic of products from the inputs of the suppliers to the whole portion of the company. In order to manage the supply chain effectively configuration of distributed network, strategy of the distribution, inventory management, information management need to be considered by the organization. Configuration of the network involves location and quantity of the suppliers, warehouses of the company, centers of distribution and customers. Distribution strategy involves the various types of strategies, shipment, third party logistics etc. On the other hand, Elgazzar et al. (2012) argued that, process of inventory management involves best possible raw materials, management of finished products etc. Information flow management involves the process of transferring the inventory that is valuable to the company. Transportation and forecasting the information are also involved in the process of information flow management. Value added by the process of operation management: Figure 2: Value added through Operation management (Source: Zhu et al. 2013, pp-406) Different types of processes of transformation are included in the techniques of operation management. Company who manufactures product always uses the physical process of transformation. Retail operation always exchange for transformational process. Healthcare organization always uses the physical process of transformation. Communication and educational sector utilizes informational process. Operation management also helps to add value in the process of the company. Process of operation management therefore helps to analyze the course of all aspects of the business. Flow of the process of a company therefore helps in order to identify the current position of the company within the competitive sector of the market. This also helps to identify the condition of the departments within a company. There are some process by those a company can add value (Saylor.org, 2015). Identification of the development of the process of production that may be converted to the process of cost savings. The process of cost saving should be passed to the end customers of the company. This makes powerful position of the company within the competitive market sector. Reformation of the infrastructure of the company also adds value to the company. Effective infrastructure of a company also helps to gain competitive position for the company within the market. Effective process of operation management also helps to solve the problems of inventory management and supply chain. This can be able to add value to the business operation of the company. Improvements in the administration of the company can also add extra value to the company. Effective process of operation management can help in identifying key issues of the organization and improves those issues as well. According to, Yamamoto (2013) effective and good management of operation therefore benefit the shareholders and customers of the organization. Value added service fulfils the demand of both the customers and shareholders of the particular company. Cost saving as well as effective process will benefit different types of stakeholders of the organization. On the other hand, Chopra and Meindl (2013) stated that, effective and continuous process of operation management also can satisfy the customers by fulfilling the needs and demands of them. Successful process of operation management can help to deliver the products within the stipulated time that can also satisfy the customers and other stakeholders of the company. There are some factors also those can affect upon the manufacturing process of the organization. Different industries of the market have different process of operation management. Manufacturing process of an organization is an important aspect for the organization. This can be involved in the overall strategy of operation management (Open.edu, 2015). Overview of manufacturing process of Pentacon: As stated by, Narasimhan and Narayanan (2013) the manufacturing process and service process can be based upon some variables. Manufacturing design therefore involves some performance objectives those have the influence upon the decision making process of the organization. According to, Hofmann and Knbel (2013) service design or manufacturing process is related with the implementation process. The process of manufacturing and designing the service is very much different within every company. This process is an engineering process that refers to the art of designing a product or service of a company. Service design or manufacture design provides the easy way of manufacturing the product within the company. It is the basic art of engineering that helps to produce products those are easy for manufacturing within the company. Camera is the major products of the electronic and computing industry. Manufacturing of a camera is the creative art as well as engineering art. On the other hand, Xu et al. (2013) argued that, this is different industry the other industry in case of manufacturing design or service design process. The workers in this industry therefore make a small proportion of workforce as because this is the industry where technology plays an important and great part while making the products. Development of a camera and other electronic device therefore depends upon the technological advancement. As the time goes, the innovative technology is been developing. Therefore, the technological innovation and up gradation has grabbed many part of this industry. So, this camera industry requires many engineers and technicians who can take the advancement of the technology and produces effective products. Rapid growth of innovation and technology therefore requires a high quality of engineers and technicians and other workers of technical part. Some research analyst has also been utilized by this company in order to extensive research and developm ent process for the development of products (Aurich, 2015). On the other hand, Zhu et al. (2013) argued that, this industry requires some efficient as well as knowledgeable marketing and sales employees for different types of segments of this company. This company promotes and sells their manufactured products by efficient sales and marketing personality. Camera and likewise products often contains various types of intermediate components those are mainly purchased by other manufacturers. Therefore, this process of Pentacon often adds extra facilities for the company. It benefits both the buyer and manufacturer companies. Pentacon provides joint development and research process of these two companies. Pentacon therefore is involved within the process of manufacturing products of different cameras. It also involves in the process of research and development of the particular company. Apart from these, some factors often influence upon the manufacturing process of the company. Some factors, like equipments, suppliers, necessary special parts, employees etc. Suppliers are the most necessary element for the process of manufacturing some products or services. Suppliers often create delay for the manufacturing process. The problems of source and other supply related problems are there in the process of manufacturing the products and services of the company. Therefore, Taunton (2014) stated that, the company should manage the smooth and efficient supply operation within the manufacturing process of the company. Especially for this type of technical industry, arrangement of necessary equipment is very much important for the company in order to involve in a smooth manufacturing design and process. On the other hand, Yamamoto (2013) stated that, effective operation management of a company therefore should provide quality service or products to the company. On the other hand, employees as well as workers are the most valuable asset in order to maintain an effective manufacturing design or process. Techniques of labor efficiency and cost efficiency can be able to affect the process of manufacturing within a positive way. On the other hand, Narasimhan and Narayanan (2013) stated that, flexibility in work can be the main strategy of improving the process of manufacturing. Flexibility can be the effective strategy for manufacturing different types of products within the same sector and same time. Apart from this, it can be suggested by, Casson (2013) that, this sector of electronic device has many segments. Every segments produce different products. Mainly, Camera Company takes some products from some other manufacturing industry. Some chips of the camera are often grabbed from other company of manufacturing. Concept of process design and process layout: According to, Hofmann and Knbel (2013) process design involves the process of determining the process of producing a product of tan organization. The objective behind process design is to meet the demands and requirements of customers. Process design is very critical as well as important activity that in this stage, 70 to 80 percent cost has estimated for the manufacture and development of the product. Process of product designing therefore requires clear understanding about the performance and functions of the particular product. Product design has the effect upon the flexibility of the product as well as quality and cost of the products. New or old product needs the process of designing. More or less, new products and old products need modification of process design. On the other hand, Manopiniwes et al. (2013) stated that, process layout refers to the design of the floor of the firm of manufacturing products. Process layout plays an important role in order to improve the efficiency of the firm by arranging important equipment as per the function of the product. Therefore, the production line should be designed for removing the waste of material flows as well as inventory flows and management. Therefore, Zhu et al. (2013) stated that, decision about designing the process and layout is taken by the operation managers of the particular organization. Process design and layout are two most important task of operation management. There are various types of process strategies, like process focus, repetitive focus, mass customization and product focus. These entire tasks are done for the effective making of products. Group decision about this topic can be effective for selecting the effective and useful layout. Decision making process about the selection of layout design is the important factor before the achievement of the predetermined goals or objectives of the organization. Therefore, group decision about the design process and layout can be the effective formula to solve major problems and issues of the process. On the other hand, Narasimhan and Narayanan (2013) argued about five performance objectives those have an impact upon the operation management process and indirectly upon the stakeholders of the organization. There are basic five performance objectives for managing the operation among the organization. B. Operational performance objectives: Figure 3: Performance objectives of operation management (Source: Hofmann and Knbel, 2013, pp-20) As stated by, Elgazzar et al. (2012) five performance objectives are as follows: Quality performance objectives: Quality is the most important objective of performance. Quality refers to the most effective specification of the particular product. Quality refers to the intended performance of the product. Quality refers to the stability of the product. Quality also refers to the degree of the needs of the customers for the particular product. If the customers are satisfied with the products the worth of the cost will be effective for the customers. Speed performance objectives: Speed refers to the responses of the organization in order to deliver the products to the customers. It is the time gap between the requests of external and internal customers for a particular product or service. Speed is the rate of generating sales and delivery of the products of a company. Speed also refers to the time of the process of research and development of the organization. Speed is very important aspect as because it helps in order to respond to the needs and requirements of the customers about products and services. Speed also helps to reduce the cost. It helps to reduce the risks and inventories. Dependability performance objectives: Dependability increases when the desired product or service comes to the customers. Dependability refers to the term being on time. This can be difficult for measuring the dependability. Timely delivery of product as well as service is the important factor for measuring this term dependability. If a company produces and serves products within the stipulated time to the customers as per the cost of customers, then the customers become dependable to the products of the company. Flexibility performance objectives: Flexibility can be called as a complex situation. Flexibility refers to the change of the operation. Company can arrange various lines of product those can deal with various types of requirements of products. New requirements of the products should be matched with the company. Flexibility refers to the variety of different products. Flexibility performance objectives therefore require more production of wide variety of products within different levels of the company. New design modifications therefore are needed in order to produce more flexibility among the operation of a company (Managementhelp.org, 2015). Costs performance objectives: This refers to the difference of unit cost for the change of volume and the huge variety of products. Cost of every product varies upon the running cost and profit of the product. Decision making process of process design and layout depends upon the performance objectives of operational management. Quality, speed, dependability, flexibility, cost are those elements those have influenced over the decision making process of the organization. Decision making process of the operation management depends upon the quality performance objective. Specification of the product is the characteristics of quality of a product. Quality is the most important element that attracts the customers. Therefore, in order to take decision about the layout and design process of the product quality should be considered as the most important factor of the product. On the other hand, Manopiniwes et al. (2013) stated that, speed and dependability are other important factors those have influenced over the decision making process of the organization in accordance with the process of operation management. Operation mangers should look after upon the fact of dependability of the customers for gaining competitive advantage among the competitive market sector. Operation managers should consider the fact of delivering the product within the stipulated time. They also should consider about the fact of flexibility of product. A company should know the process of making different products within a stipulated time frame. Flexibility refers to the variety of different products. Flexibility performance objectives therefore require more production of wide variety of products within different levels of the company. Therefore, operation manager should take decision about different products in accordance with the predetermined objectives and goals of the organiz ation. They should take the decision in order to build effective innovative product design that is more flexible for the customers as well as other stakeholders of the company. Conclusion: This report has dealt with different aspects of operation management within an organization. There are several elements those have influence over the process of operation management within an organization. Supply chain management, value added service are the most important factors of operation management. This report has also discussed manufacturing process of a manufacturing company, Pentacon of Germany. Pentacon manufactures several types of camera. This industry includes in the electronic industry. 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