Japan Tobacco International Inc. (JTI), being a member of Japan Tobacco Inc. and world's third largest international tobacco company, operates 95 offices, 25 factories, 6 R&D centers and 5 tobacco processing facilities in more than 120 countries. All sites are linked by complex and highly efficient networks supported and directed in a 24/7 mode. More than 10’000 out of total 27’000 company’s employees are engaged in Manufacturing and Global Supply Chain (GSC).
JTI’s operations include sourcing materials, managing product making and packing, directing international distribution, as well as systems and processes support. Such a wide geographical and functional spread provides great challenges to its operations as well as unlimited range of opportunities. “Current competitive arena, which includes lean production, mass customization and agile manufacturing, places huge demands upon operations capabilities” (Brown, Squire, & Lewis, 2010, p.4192).
In general, activities which transform input organization’s own and attracted resources into goods and services outcome supplied by the organization to the external environment are understood as operations. Besides transformation itself, they include also systematic direction, control, and evaluation of the entire range of processes (Slack, Chambers, & Johnston 2007). In JTI decisions regarding the design of the system, e.g. number of products, breadth of product structure, and number of operations in the routing are made globally. However, sometimes local legislation requirements regarding ingredients and packaging differ, time zones, peculiar conditions in carriers’ contracts, as well as road network maintenance has to be considered (Gabriel, 2013).
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...STRATEGIES. Region Formation & Development Studies, (7), 133-141. Retrieved on December 30, 2013 from EBSCOHost http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=89016011&site=ehost-live
Saad, G. H., Greenberg, R. H., & Greenberg, P. (2012). Using Business Process and Operations Management Concepts to Improve Transparency and to Protect Stakeholder Interest. Journal Of Accounting & Finance (2158-3625), 12(1), 11-19. Retrieved on December 30, 2013 from EBSCOHost http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=76118042&site=ehost-live
Idris, F. (2012). ACHIEVING FLEXIBILITY IN SERVICE OPERATIONS USING THE RIGID FLEXIBILITY FRAMEWORK: AN EXPLORATORY STUDY. International Journal Of Business & Society, 13(3), 279-292. Retrieved on December 30, 2013 from EBSCOHost http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=85407023&site=ehost-live
Operations management is essential for the survival and success of any organization. According to Heizer & Render (2011), operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Operations managers today contend with competition, globalization, inflation, consumer demand, and consistent change in technology. Managers must focus on the efficiency and effectiveness of processes such as cost, dependability, distribution, flexibility, and speed. The intent of this paper is to discuss the processes and operations management of the Kroger Company.
Blij, H.J. de , Peter O. Muller, Jan Nijman, and Antoinette M.G.A WinklerPrins. The World Today Concepts and Regions in Geography. Fifth Edition ed. United States of America: John Wiley & Sons, Inc., 2011. Print.
...italize on the resources that are already there. The historical sites and scenery, as well as military presence and agriculture are believed to be additional contributors to the growth of the region.
Based on future supplier contracts, shortening lead time for delivery of parts and materials establishing leaner processes, namely addressing wastes identified through implementing a Just-In-Time (JIT) system. A centralized wharehouse system, co-located near the manufacturing plant will reduce shipping and transportation costs or look for larger space with warehousing capacity. Savings, significant enough will be a factor if space with warehousing falls within the
Operations refers to the transformation of raw materials(inputs) into finished products(outputs). The operations process is one of the key business functions and is a crucial component to business success. Like every business, Qantas is affected by many internal and external influences requiring it to have effective strategies to respond to these influences. Businesses that are able to adopt and utilise effective operational strategies are able to quickly adapt and either reduce or take advantage of these influences that impact the business. The effectiveness of these strategies can measured by Qantas’ performance and whether or not it is able to hold it’s competitive advantage. How well these strategies respond to the influences on operations will determine the level of success that Qantas achieves.
Flexibility is important of firms an operation that enables it to react to their customers quickly and efficiently. Some companies use they two types of flexibility: the customization or the volume flexibility. Customization is usually the ability to satisfy the unique needs of each customer by changing products or services design, with different features, or making them look unique. Primark’s uses both operations. To satisfy their customers need. While volume flexibility is the ability to quicken the rate of their productions to handle large variations in demand.it is usually important for operations. Both companies use both operations.
Ferdows, K., Lewis, M., & Machuca, J. A.D., 2003. Zara. Supply Chain Forum: International Journal, 4(2), 62-66.
Flexibility in the workplace should be a benefit for the employee as well as the employer. According to Christensen, “Having flexibility in the workplace will ultimately lead to better morale, increase retention, and become an effective tool for recruitment.” (Christensen, 2005) Flexibility is an important factor toward overall workplace success. As mentioned by Christensen not only is this a great tool for companies to use for recruitment and retention, but improving diversity in the organization. Flexibility means taking a varied approach to the old way things are done. Some examples, changing work hours, location of where the work is done and restructure of the job. The traditional Monday thru Friday, nine to five work design is no longer the norm. Having a flexible work structure allows an organization to modify schedules for employees which in turn gives the employee opportunity to balance work and life. By doing this...
The organization has had to ensure that it has retail stores in many countries globally and website options in more than 100 countries. The company further enhances access of online stores in more than 37 countries which is accessible all the time and people are able to access the services regardless of their location. Globalization further affects the organization in the sense of international market management which requires it to engage in strictly global decision making. The organization’s production networks have been geared to enhancing global competition (Lüsted, 2012) .The Company is further good when it comes to seizing the opportunities available in global market. For the organization to find efficient as well as cheap means of production, it has to bargain hard so as to allow its contractors to have low profits. This mostly is consequential to the suppliers cutting corners with the use of cheap
The basic premise for JIT is fairly simple: a company only produces an item when there is a need, or just-in-time for a company or individual to purchase it (Manoocherhi, 1988). The theory of JIT also accepts that there may be a need for an item at another work station and this would also create the need for production. Rather than utilizing the common practice of mass production and attempting to sell and distribute the products after they are created, JIT waits until there is a defined need that must be met. By doing this, JIT systems allow companies to decrease the level of production, decrease the necessary manpower hours utilized in mass production modes of supply, and eliminates the waste inherent in over-production. These techniques are especially effective for small companies, who are far less able to absorb the impact of unsold products. JIT has been shown to significantly impact reductions in overhead costs that reduce re-investments, and encourage stabilizing business practices(Manoocherhi, 1988).
The tool essentially shows the chain of activities required to develop and deliver the products. The effectiveness of the organization vastly improves when all the key activities such as customer, vendor, suppliers and partner within the value chain working smoothly. The value chain used to reduce operational and production cost using low-cost producer strategy. If two service or products are delivery by two separate divisions for two different markets, there are functionality and process that can be integrated to save cost.
Roth, A.V. and Velde ,M V D.(1991), “Operations As Marketing : A Competitive Service Strategy”, Journal of Operations Management ,Vol. 10 ,No. 3,pp 303-328
De, Blij Harm J., and Peter O. Muller. Geography: Realms, Regions, and Concepts. New York: J. Wiley, 1997. 340. Print.
When using performance management to improve an organisation’s productivity you need to first decide who is the focus of the organisation’s long term goals, are they focusing on Shareholders or Stakeholders. The Shareholder approach focuses on the profit to the shareholders, no other factors need to be considered aside from the bottom line profits. The Stakeholder approach is a well-rounded, balanced approach to management, considering more than just how much money the organisation makes.
University of Phoenix(Ed.).(2003) Operations management for competitive advantage[University of Phoenix custom edition e-text]. New York: McGraw-Hill. Retrieved February 01, 2005, from university of phoenix, Resource, MGT554- operations management website: https://mycampus.phoenix.edu/secure/resource/resource.asp