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Module Title: Module Code:

Advanced Operations Management 6ME504

Coursework Assignment No: 1 Assignment Title: Operations Improvements

Introduction Operations improvement enables businesses to increase effectiveness (leading to increased profitability) by understanding, optimising, and aligning business activities and processes to maximise output. Many methodologies, approaches and tools have been adopted by organisations to reduce operational cost, increase efficiency and productivity, and improve the quality of their processes, products and services. Even the best operations need to improve because the operations competitor will also be improving. Learning Outcomes On successful completion of this assignment, the student should be able to: 2. Critically evaluate the appropriateness of technology strategies adopted by organisations and recommend alternative strategies for specific business scenarios. The Brief Compile and write a formal technical report, using an appropriate format and Harvard referencing as indicated in the corresponding tutorial lecture, covering the following:

1. From a company of your choice, identify its operations performance objectives, and
then discuss the internal and external benefits that derive from excelling in each performance objective. (You may need to infer these by assessing its performance in the five operations performance objectives (e.g. cost, quality, speed, dependability and

flexibility)

(15%)

2. SPAD Ltd is a company specialising in the design, manufacture and installation of

signalling equipment for use in the rail industry. Unfortunately, SPAD has noticed a significant downturn in demand for its products and services in recent years. This seemed to be due to a significant increase in competition in this area of the industry. As a result, senior management initiated a benchmarking study of its competitors and the results were quite alarming. The findings were as follows: Cost Although few direct details of cost were revealed it was clear that competitors had lower costs. They were installing their equipment at a cost to the customer which was lower than the cost of manufacture at SPAD Ltd for similar equipment. Quality The manufacturing and installation process at SPAD Ltd was producing ten times as many mistakes as that of its competitors. Late deliveries SPAD Ltd noticed a decline in delivery reliability and increased levels of inventory whereas its competitors deliver their goods and services on time. Manufacturing Processes- The loopholes in SPADs manufacturing processes turned into major problems such as raw materials shortage, part shortage and productivity inefficiencies associated with the recent recruitment of new employees. This resulted in a serious disruption of process flows leading to late deliveries of their products.

Poor maintenance - The Company identified there was poor communication between the various department and job grades. For example, maintenance staff believed that production hold ups were caused by operating errors, while operators were of the opinion that poor maintenance was the root cause. Discuss the applicability for Lean manufacturing for the SPAD Ltd. (20%)

3. From a company of your choice, investigate a particular challenge, issue

and/or problem that it is currently facing (or has recently faced in the past) in terms of the quality of its process, product or service. Critically discuss what quality improvement philosophy, methodology or tool (e.g. SPC, ISO 9000, TQM, Six Sigma, etc.) may help your selected organisation to overcome it or to avoid similar quality issues in the future - explain why. In addition, comment on how the recommended quality improvement philosophy, methodology or tool may help your organisation to enhance its quality strategy and market position in the long term. (25%)

4. Using any case study example to illustrate good supply chain operations and
explain How does your case firm achieve success through good supply chain management? (25%)
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