Operation Performance Objectives
Operation management is the process through which organization achieve maximum level of efficiency. In other words, it is the method to develop productivity and managing resources which help company to increase profit (Wolniak, 2020). The present report is based upon Chappelli cycle which is a bicycle manufacturing company based in Sydney. The selected innovative product is electric cycle an initiative by the company to make travelling more convenient. Furthermore, it covers different aspect of operation like inventory, product design and quality management. All these factors contribute in making operation activity and are explained in detail. At last, conclusion is made which help in understanding the process and who it useful for company for growth.
Define OM Performance Objective Firm Wants to Compete
The operation performance objective is set by the company to achieve high quality product efficiency. Apart from this, they are used to measure the significant role towards competitiveness and improve manufacturing. For Chappelli cycle is it vital to setup performance objective like quality, speed and cost as this provide competitive advantage in the business. The detail explanation of performance objective is explained below:
Quality: This indicate that, how company is processing the operation and meeting the maximum standard of the customer expectation. Quality is considered as fundamental aspect of performance and it need to improved provide better product (Zhen et al., 2019). Chappelli cycle, need to focus on quality of raw material like high standard batteries, tyres and steel as this will help to develop brand image and compete with other rivals. To measure the objective, quality check department need to be established and provide grade for every component to meet the expectation.
Speed: It is a time between the customer ordering product to the final delivery. This is important as organization offering on time it increases the customer experience (Koptev, 2017). In order to measure the objective of Chappelli cycle, management need to use lean method as this help to eliminate inefficient movement of workers during production and increase speed. Apart from this, company need to take their product online which reduce the time and increase sales effectively.
Cost: It is considered one of the most important factors for the company as it is directly associated with the profit. To maintain the cost for producing bicycle it, is important to identify the effective way like hiring multiple suppliers for raw material as this help to manage cost (Qian, Zhong and Du, 2017). To measure the cost, management need to calculate the actual price of single unit of Chappelli electric cycle from raw material to final delivery. Hence, it will provide the overall cost for manufacturing and company can take future action to overcome the problem.
For new product design of Chappelli cycle is Electric bicycle as for people to make it convenience to travel in city. There are different steps which are involved in product design like idea generation and identifying the need. The detail discussion of product and service is explained briefly as to get better understanding.
New Product Design
Identify the need: This is an initial stage where company tend to figure the need to the customers through market research. For Chappelli cycle, management analyse the importance of cleaner environment and easy convenience for people during inter city travelling. Apart from this, organization acknowledge about making electric bike which is cost effective and have large customer base (Hung and Lim, 2019).
Concept Development: In this stage, Chappelli cycle take different elements into consideration like cost of producing electric cycle, revenue and profits. Furthermore, company use to conduct research through like identify the competition and its major strength as well as weakness (Qian, Zhong and Du, 2017). This provides clear insight for Chappelli cycle to proceed in the business for electric market.
Product development: This is most important stage in product design as company make prototype and test the performance. Chappelli cycle management decide to bring electric cycle for the people to make travelling more convenient. Beside this, company have setup different charging point in different places to make it easy for the users to charge cycle at any given point (Trojanowska et al., 2018).
Commercialization and rollout: This are final stage for Chappelli electric cycle and prompting the new and innovative product for the people. In addition to this, company have chosen social media as promotional platform as to attract more audience (Trojanowska et al., 2018). This is cost effective and company can save money and time and use such resources in market development.
Both process strategy and layout design are important for the product as they help in establishing procedure and guide organization to achieve desire goal. Beside this, it is relevant for the product because it identifies drawback during production and eliminate unwanted activities like waste of resources at workstation and mismanagement. For Chappelli cycle, management need to make blueprint regarding production and sales of Electric bicycle in the market. Hence, it is crucial for Chappelli to focus on the quality of the product as this will create customer base as well as stability in electric bicycle business.
- In the first stage, Chappelli production team need to identify the raw material and different components like battery, tyre, rims and seat of high quality which will be used in cycle. Having right supplier is crucial as this it will help in maintaining the quality of the product.
- Second step for process layout is cycle time which indicate the total time taken to deliver the final product to the customer (Liu et al., 2018). It is crucial for Chappelli cycle to minimise the time by using lean method. Apart from this, six sigma during production will facilitate company to minimise failure and it will increase quality of bicycle.
- To make complete the electric cycle there are mainly three stages where at initial stage is gathering raw material at workstation, assembly and final step is testing (Zhang, Jiang and Jiang, 2017). Such indicator is obtained by using different manufacturing tool like six sigma and lean model which will help to improve efficiency while offering new product to customers.
Capacity planning is the method to evaluate the available resources like manpower, capital and machinery present to meet the demand (Liu et al., 2018). In order to measure the capacity, Chappelli management need to identify input, output as well as combination of both. For example, company can calculate its capacity by analysing the present sales or number of electric bicycles sold by in complete year. Apart from this, by acknowledging the current market share tend to provide idea about the company capacity and furthermore company can take future decision accordingly. In addition to this, most of the organization use two different measure of capacity which are theoretical and rated. The theoretical define the maximum output whereas rated is used on long term perspective.
The capacity strategy is appropriate as this help Chappelli cycle to figure out optimal level of operation while producing electric bicycle. Beside this, it also facilitates company to have determine how organization can allocate budget and meet the demand of the production (Rishi, Srinivas and Ramachandra, 2019). In addition to this, capacity planning allow management to forecast future risk and make sure to about achieving desire aims and objective in a specific time frame. Furthermore, it manages the production cycle and look after the demand and supply of the product. Through this, manager can easily allocate the resources to respective department which allow to increase overall efficiency.
Layout Design
This is method through which companies identify the stock present to meet the demand and supply. For Chappelli cycle, maintaining proper inventory of electric bicycle is important as this help in increasing brand value in the market. It is important to have effective inventory management as this help company to save cost (Zhang, Jiang and Jiang, 2017). For example, if there is proper record of batteries used in cycle as it will reduce overstocking of batteries. Hence, it will prevent company to spend more money on the raw material. Apart from this, maintaining inventory require huge capital like electric, manpower and rent which leads in high price of final product. It is important to make strategy to manage resources more efficiently.
Beside this, it also helps Chappelli cycle to maintain cash flow as this will prevent company to reduce bulk buying. For instance, if company use advance system for inventory management in this case, company will buy those raw material which are not in stock. Through this company can save money and utilise in production or research (Chan et al., 2017). Beside this, it also free up the capital and management can reinvest in other areas which help in development and growth. Furthermore, this strategy also facilitates Chappelli to reduce labour cost as employee effective inventory planning and control solution significantly reduce all the cost associated with labour. The mismanagement of inventory also increases the logistic cost (Apostolou, 2020). To manage such expenses, practise of inventory management system will help company to produce more electric bicycle.
To implement quality management in Chappelli cycle, it is important for the top-level authority to make changes in the policies as this will help in improving quality. There are different steps for implementing quality management are explained below:
Develop training programme: Outstanding quality management starts with having better training module (Wang et al., 2020). In the case of Chappelli cycle, manger need to implement training for employees as this will to understand the complex process of making electric bike. For example, electric bike has more parts as compare to normal bicycle. Hence, proper training will help staff to make less mistake and provide better quality product to the customers. In addition to this, quality standard needs to be stress during at the initial stage with the motive to bring out effective results.
Quality inspection department: It is most critical aspect of quality management as this help in identify the flaws and ensuring to deliver high quality product. For Chappelli cycle, the manager needs to setup quality inspection team as to ensure to reduce faulty product. For instance, at the final stage of the production, the quality team need to inspect the bicycle at full scale and make sure that, it has met all the standard of the company. In the case of any failure the product should be rejected as to maintain quality (Zhang, Wang and Lin, 2019).
Period and timely audit: For Chappelli cycle, implementing quality management regular inspection and audit will help to improve supply chain. The top-level management require to conduct timely inspection regarding the performance and process on entire organization (Hung et al., 2017). This will help in improving companies’ internal activity and also manage to meet the demand of the customers. Apart from this, it will allow production department to prepare for safety and external compliance evaluation.
Capacity Planning
Using appropriate SCM strategy have become difficult for the company due to having complex process involve during production. For Chappelli cycle, management can use demand driven planning strategy where firm will make electric bicycle as per the market requirement. To utilise such approach, company can use Artificial intelligence as this help to improve supply chain of the company (Bazmohammadi et al., 2018). Apart from this, company can optimise for product design or management for supply where detail planning will be done regarding product to final consumption. For example, while making electric cycle, it is important to identify the supplier, market trend and the customers as this will assist company to overcome problem and effectively operate business.
Another SCM strategy for Chappelli cycle is to choose the correct location and market to provide product to respective customers. Aa this help business goals as this help in overcoming the problem and also reduce logistic cost for the company. Developing long term goals is important as this help in measuring sustainability (Park and Huh, 2018). The company initiative is the make travelling more convenient and also reducing carbon footprint by making electric bicycle. Hence, it is important to understand the market and need of the product which help organization to sustain in the market. The prime objective of supply chain is to optimise the process and provide increase the overall value of the product. The appropriate strategy for the company is to make develop effective business model which help to increase sales and provide long term profitability.
Conclusion
From the above stated report, it has been identified that operation management plays an important role during developing innovative product or design. Furthermore, it helps organization to manage the production effectively and reduce cost. It has been concluded that, quality and cost are the important factor for the company performance objective as this help in developing better brand image in the market. Apart from this, making relevant strategy for product design will assist organization to improve quality of the product and increase customer satisfaction. Furthermore, it is recommended for the company to focus on inventory management as this reduce the cost and help in maintaining cash flow. At last, identify the location for the production is consider as appropriate SCM strategy for firm as it provides sustainability to the business.
References
Apostolou, D., 2020. Assessing the operation and different refuelling cost scenarios of a fuel cell electric bicycle under low-pressure hydrogen storage. International Journal of Hydrogen Energy, 45(43), pp.23587-23602.
Bazmohammadi, N., Tahsiri, A., Anvari-Moghaddam, A. and Guerrero, J.M., 2018. Optimal operation management of a regional network of microgrids based on chance-constrained model predictive control. IET Generation, Transmission & Distribution, 12(15), pp.3772-3779.
Chan, S.W., Tasmin, R., Aziati, A.N., Rasi, R.Z., Ismail, F.B. and Yaw, L.P., 2017, August. Factors influencing the effectiveness of inventory management in manufacturing SMEs. In IOP Conference Series: Materials Science and Engineering (Vol. 226, No. 1, p. 012024). IOP Publishing.
Hung, N.B. and Lim, O., 2019. A simulation and experimental study of dynamic performance and electric consumption of an electric bicycle. Energy Procedia, 158, pp.2865-2871.
Hung, N.B., Sung, J., Kim, K. and Lim, O., 2017. A simulation and experimental study of operating characteristics of an electric bicycle. Energy Procedia, 105, pp.2512-2517.
Koptev, V.Y., 2017, February. Improving machine operation management efficiency via improving the vehicle park structure and using the production operation information database. In IOP Conference Series: Materials Science and Engineering (Vol. 177, No. 1, p. 012005). IOP Publishing.
Liu, R., Xie, X., Yu, K. and Hu, Q., 2018. A survey on simulation optimization for the manufacturing system operation. International Journal of Modelling and Simulation, 38(2), pp.116-127.
Park, S. and Huh, J.H., 2018. Effect of cooperation on manufacturing it project development and test bed for successful industry 4.0 project: Safety management for security. Processes, 6(7), p.88.
Qian, F., Zhong, W. and Du, W., 2017. Fundamental theories and key technologies for smart and optimal manufacturing in the process industry. Engineering, 3(2), pp.154-160.
Rishi, J.P., Srinivas, T.R. and Ramachandra, C.G., 2019. Lean Manufacturing to Green Manufacturing: Practices and its Implementation in SME’s. In Applied Mechanics and Materials (Vol. 895, pp. 21-25). Trans Tech Publications Ltd.
Trojanowska, J., Kolinski, A., Galusik, D., Varela, M.L. and Machado, J., 2018. A methodology of improvement of manufacturing productivity through increasing operational efficiency of the production process. In Advances in Manufacturing (pp. 23-32). Springer, Cham.
Wang, J., Li, H., Lu, H., Yang, H. and Wang, C., 2020. Integrating offline logistics and online system to recycle e-bicycle battery in China. Journal of Cleaner Production, 247, p.119095.
Wolniak, R., 2020. Main functions of operation management. Production Engineering Archives, 26.
Zhang, J., Jiang, Y. and Jiang, W., 2017, April. Quality management of manufacturing process based on manufacturing execution system. In AIP Conference Proceedings (Vol. 1829, No. 1, p. 020025). AIP Publishing LLC.
Zhang, W.J., Wang, J.W. and Lin, Y., 2019. Integrated design and operation management for enterprise systems. Enterprise Information Systems, 13(4), pp.424-429.
Zhen, L., Zhuge, D., Murong, L., Yan, R. and Wang, S., 2019. Operation management of green ports and shipping networks: overview and research opportunities. Frontiers of Engineering Management, 6(2), pp.152-162.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
