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Practice Operations Module 5
Transcript of Practice Operations Module 5
Maturity/ Peak Phase
* Set up/ Start up Phase
* Production/ Growth Phase
-Dealing with Deficit
* Maturity/ Peak Phase
*The final Stretch- Hitting Your Goal
-Choosing Best Contracts
* Vendor Scorecard
Production management is one of the most important
departments in the firm. Buying necessary equipment
and upgrading existing machines help to cut down on
time per and cost per operations cost. This helps to get
orders done faster and for less money. When making
a bid it is important to look at what machinery is needed for
the job. Buying or upgrading before the order starts will help
speed the production process.
Vendor Score Card
Dealing with Deficit
In the growth phase you will see your biggest
deficits. Building a strong production team and facility will ensure the success of your firm.
Hiring employees is important, in the beginning we decided to hire the most qualified applicants and put them where they excelled. If they were even in their skill set they were position at the need of the firm. To determine need we used the managing organizational chart.
Materials are important to the flow of production
and ordering is important to scheduling of upcoming contracts. Knowing how to look at contracts and forecast materials is important to the firms early success.
When starting out the contracts you choose help
to determine how quickly you can build a reputation.
Hiring for bidding and contracting allows for more
possible bids. players shouldn't be picky on contracts in
the beginning, we selected any contracts that were
simple to produce, had a long lead time and a good price.
Upgrading machinery cuts down on the cost and time per unit for each order. Upgrades can be costly and will be charged once completed. It is best to upgrade by need. If you notice two future orders that require embroidering, then would be a good time to upgrade the machine. Multiple upgrades can be costly especially for a young firm. This is often the cause of most debt.
Skilled workers are an asset for any firm and while hiring is important, it is equally important to train existing employees. Areas that can be improved are:
*Machine Setup Time
*Customer Service Quality
*Materials Sorted per week
While it is easy to acquire a lot of debt early on. It is important to
remember moderation and only upgrade, train, or purchase what is necessary to complete immediate orders. As orders pick up and your deficit shrinks, spending becomes easier to gauge your spending
Once the firm gets its reputation built it
has more latitude to choose its business
strategy and its suppliers/consumers.
By this phase of the Operation most
orders are completed well ahead of
schedule. We decided to ship all
orders as soon as they were ready to
ensure that we got the profits as soon
as possible. We always shipped with a two
week lead. There were no complaints
for early shipments.
At this point the number of
requests coming in vary and your reputation allows you to choose the contracts you want. We decided to filter requests by total price and look for long lead times and reasonable quality/quantity requests.
Once you have achieved a comfortable
level of profit, it is time to consider the
longevity of the firm. Maximizing
efficiency includes all machine upgrades,
training all employees and ensuring all
positions are staffed. This ensures the
firm can handle all orders and allows the
most flexible production schedule.
Close to the end of the Operation it was important to maximize profit by minimizing cost. We looked at unit price and divided that by the materials cost to see what the best ratio would be. This is important to ensure the company finished as profitable as possible and helped to reach the goal as fast as possible.
Wools, denims and nylons are cheaper than khakis
and silk when looking at profit. Quality difference also goes into choosing the best deal. Price and profit was more important to us than client reputation.
In conclusion our team found that using what we learned from the previous operations we were able to successfully start a new branch. Our team decided on a minimalist approach keeping inventory levels as low as possible. We only ordered the materials needed and only upgraded when necessary. Our team worked well together and agreed on all moves the firm made.