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Introduction operations management
Operation management
Introduction operations management
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Introduction Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization(Investopedia, 2010).Also converting raw materials and labor to products and services with efficiency and effectively to maximize the wealth of an organization. Supply chain management is the main role in operation management.Supply chain management handles supply side activities of a business with efficiency and effectively to gain the competitive advantage in the market.(Investopedia, 2003)SCM concerned with raw material supply,intermediate supply,end product distribution,retailers and wholesalers.So every aspect of supply chain is critical for the business and doing it right can cause …show more content…
There is a huge competition in the apparel industry.The sellers are looking for real innovation and quality products from the suppliers to survive in the industry (Marudhamuthu,krishnaswamy and Pillai,2011). 1.1. Lean Manufacturing As Paneru (2011,p.17)lean management is a“systematic approach to identify and eliminating waste through continuous improvement by flowing the pursuit of perfection”.The main objective of lean manufacturing is waste elimination.Practicing lean will reduce the production cost,increase the productivity & reduce the production time.Following lean tools and techniques are use to gain those benefits. Table 1.1 Lean tools use in apparel industry Lean tool Example 5S Chowdhury,Haque &Shahwath(2014) says that Talisman Ltd in Dhaka use 5S in 9 months and they increase 27% labor productivity &13% multi factor productivity Kaizen Brandix(2016),Golden Jasmine Intimate manufacturing Co.,Ltd (Switch-asia.eu, …show more content…
Waste reduction 2. Time compression 3. Flexible response 4. Unit cost reduction Bruce,Daly and Towers,(2004)said that the apparel industry is highly diverse and heterogeneous.So the supply chain is complex.And also the manufacturers move on to the sourcing components from overseas.From that the firm can reduce waste,the labor cost,time compression.(Anon,2016) demonstrated that the retailers of the apparel industry have to deal with manufactures with the centralized buying and prices,quality and delivery schedules.And also the writer point out that there are intermediaries like export and import agencies who are play major role in supply chain. Bruce,Daly and Towers (2004) highlighted that the JIT concept is commonly use in throughout the supply chain.Paneru N(2011)said that wastes can be reduced by JIT.(Anon,2016)said by using JIT manufacturer can fix the problems like product shortages,excessive backlogs and lost misplaced yarn at the spinning area.And also flexible delivery throughdomestic sourcing helps to minimized the levels of stock in supply chain and increase the net margine (Bruce,Daly &Tower,2004).These techniques help to reduce the waste. 1.4. Environmental sustainability and the
Entry barriers are low in the apparel industry, there are many companies currently operating in the sporting apparel, footwear, and accessory marketplace. Nike, Adidas, and Champion are considered the biggest competitors for Under Armour. The offshoring and outsourcing creates a unique situation for the Under Armour product line ordering and distribution. To ensure the products are properly stocked Under Armour must have the products manufactured prior to the orders being placed by distributors. On the positive side, the distributors power is high. The products can be found in company stores as well as retail chains, Dick’s Sporting Goods is a major distributor for the Under Armour product. In addition, the buyers power and the threat of substitution is low. The materials greatest competitor is cotton which holds moisture, in opposition to the synthetic material that wicks away sweat. The technology and materials needed to create the synthetic material can be sourced worldwide creating an ease of buying
JIT eliminates waste by finishing production just in time for delivery while reducing inventory holding cost. Thus, allowing them to also have short lead times given their vertical integration in which instructions and process are linked closely to each other in their supply chain. Therefore, short lead times enable Zara to “to offer customers more styles and choices, and yet still create an urgency to buy because items often sell out quickly” (“Zara Clothing Company Supply Chain,” 2016). In support, during class, we learned that short lead times are beneficial to a company because that increases efficiency and allows the final product to be ready for sale much
Dicken (1998) points out that the textiles and clothing industries were the first manufacturing industries to take on a global dimension and are the most widely dispersed in the developing world. As a result of these changes retailers moved towards global supply chains for their textiles and apparel products in order to acquire cost and lead time benefits thus meeting their fast moving and demanding consumer needs. “However when a well-selling stock ‘item’ needs to replenish in the middle of the season global sourcing is not very efficient (Bruce & Daly, 2007).” Even with the internet and new communication systems things are still difficult to manage at a distance. And there are some hidden costs; for example lost sales, as a result of a late or incomplete delivery. In some cases it might be better to source locally.
Supply chain management is basically refers to the fundamental supply chain analysis of the organization which predominantly describes functionalities from source to the delivery point. In this process of delivery, supply chain management framework divides in four categories: In Planning the products and suppliers evaluated and selected, Sourcing pull the information process including contracting, ordering and expediting, Moving is a physical process from suppliers to end user and Paying is the financial process including payment and performance measurement.
Birtwistle, G. & Moore C.M. (2006) Fashion clothing- where does it all end up? The International Journal of Retail & Distribution Management, 35, 210-216.
The Apparel industry is one of the main labor intensive sector mainly in most of the developing nations that are emerging the international marketplace. 50 years ago typically the developed countries were the main leading performers in the international export marketplace. But now Developing nations contributes to the world’s more than half of textile exports.
Supply Chain Management concept is derived from a ‘chain’ based theory. Martin Christopher defines it as the “Upstream and downstream relationship with customers and suppliers defines it in order to deliver a superior value to its customer and suppliers at a lower cost to the chain as a whole”. The focus is on building trust and mutuality between parties.
According to Aquilano, Chase, and Jacobs (2005), "Operations management (OM) is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services" (p.19).
Considering the value chain in production and service sector, operations management manages the synchronisation of different activities of the supply chain in order to maximise its output of the firm by reducing the production cost from the procurement stage to the delivery stage. This enables the operation strategy to be in line with organisations business objective.
Operations management focuses on managing the processes of producing and distributing products and services. Operations activities often include product creation, development, production and distribution. It deals with all operations within the organization. Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations. The nature of how operations management is carried out in an organization depends very much on the nature of products or services in the organization, for example, retail, manufacturing, wholesale, etc.
In all, supply chain operation management has helped many global companies in handling and distributing their products as it is a one-stop solution provider from one warehouse direct to end user. By building trust among the trading partners with effective communications would improve performance metrics both the company and the solutions provider.
Supply Chain Management process -: Supply chain strategy refers to the suppliers and customers, their deliveries, repayments, inventories etc. Operational management plays a huge role in McDonalds including the product to be delivered and the materials required to be purchased to make this product.
A supply chain may be characterized as a coordinated procedure wherein various different business elements (i.e., suppliers, makers, wholesalers, and retailers) cooperate with an end goal to: (1) gain raw materials, (2) change over these raw materials into indicated complete items, and (3) convey these last items to retailers. This chain is generally portrayed by a forward stream of materials and a retrogressive stream of data. For a considerable length of time, scientists and professionals have basically researched the different procedures of the supply chain separately. As of late, in any case, there has been expanding consideration put on the execution, configuration, and examination of the supply chain in general. From a reasonable outlook,
Supply chain management (SCM) can best be described as link or connection between suppliers, manufacturers, distributors, and customers. Supply chain doesn't only apply to materials being moved but also applies to information being moved. In practice, it's moving items from supplier to manufacture to distributer to retailer and finally reaching the customers. The Supply chain method of shipment or way of business hasn't all ways been around in fact it rose to prominence during the late stage of the 20th century. The introduction of trucks, airplanes, computers and the internet has changed everything. The Supply chain's goals are too reduce cost, save money and make forecast by determining the demand so that supply is matched. If the supply doesn't match the demand then there is waste and waste is synonymous with money lost. The importance of reducing cost through well planned strategies shouldn't be glossed over because lower costs and saved money leads to lower prices.
Operations management have play an important roles for the entire company structure, operation management are define as the set of activities that by transforming inputs into outputs in the form of goods and services ( Heizer J. & Render, B, 1999). For an efficient and effective successful operations management processes it have to identify market ,planning ,monitoring, staffing, leading and control resources and creating competitive advantages priorities for adding value to organizational business. In another words, as operations management major in three major functions of an organization. First, what kind of goods and services to produce for making a surplus profit for the organization. Second, an operations management also