Management

Project 2: Q&A Project

Course Objectives:
CO4:” Examine the supply chain network as a system of processes”

CO5:” Evaluate operations management and explain it’s role in the Supply Chain network ”

Project 2 Prompt

The MS Word template attached to this week’s assignment includes 10 questions from the lesson material you have covered in Chapters 3 and 5 (weeks 3 and 4). Research each of these questions in your textbook and online as instructed in each question. Also, give examples as you are prompted in each question. There is no word count for this project. Before submitting this assignment, read it over to yourself to check for grammar, sentence structure, and completeness. A word to the wise, this is a two-week project and in-depth answers are expected. Use your time wisely to show your insights into each question after carefully reviewing the reference materials.

Instructions:
Submit your completed project 2 in this section by Sunday of Week 4. Please carefully review the grading rubric, also attached. If you are needing a refresher on APA7, there are two resources attached you may want to download and review prior to completing this assignment. Use the following naming convention to save and submit your assignment this week:

ANSWER

SCMG 201 – Principles of Supply Chain Management

Chapter 3: Network and Systems Design (Questions 1 through 5) 

Question 1: There are two views for how to manage processes across a supply chain.  Research these two views both in your textbook and on the internet and then describe each view, the primary focus, the advantages and disadvantages of both, and find an example of each on the internet.  DO NOT copy or paraphrase your textbook, use your own words in defining these two views.

Transactional view and relationship view are the two views of managing processes across a supply chain. The relationship view is a process of establishing relationships with one’s company’s departments and the suppliers and customers. A transactional view is a process of ensuring that the supply chain process is as best as possible for the company based on its needs and requirements. The key focus of a transactional view is looking at the supply chain process and ensuring that changes to ensure that it runs smoothly are made. The main advantage of the transactional view is that it results in a more efficient supply chain process. For the relationship view, the primary focus is to build good relationships across the supply chain. The advantage of the relationship view is that it builds good long-term relationships within the supply chain and the company, which are important when working on future projects.

Question 2: Assume a retail harbor can process 28,000 containers from cargo freight ships per day, under maximum conditions, using overtime hours.  The harbor offloading facility was designed to process 22,000 containers per day under normal conditions.  During the month of July, the harbor facility processed 19,000 containers per day.  Calculate the harbor’s ability to offload containers for both design and effective capacity.  Show the formulas and the steps using Microsoft Office’s “Insert à Equation” function.

Design Capacity = actual production/target production * 100

Effective Capacity = actual production/maximum possible production * 100

Question 3: Using the Word “Smart Art Function” create three separate illustrations for the evolution of supply chain integration for Material Flow where organizational functions are (a) independent, (b) integrated within the organization, and (c) integrated across the supply chain.

Question 4: Explain the “Modular Method” for Enterprise Resource Planning.  Pay close attention to the advantages and disadvantages.  Research online and find two expert resources for the modular method, summarize them, and provide a hyperlink to the resource on modular enterprise research planning.  Do not use a software company or any other “Ad” for a product.  A good place to start is in Google using keywords found in this question.

The modular method for ERP is where an organization purchases only the necessary parts of the database system to manage its supply chain network. Using the modular method can save a company a lot of money since only what is needed is purchased rather than the entire system. “Smartsheet” is an example of a resource for the method. It is an organization that aligns technology and people to ensure that companies move effectively and efficiently. The company’s official website provides an in-depth explanation of what ERP entails, how it works, its advantages and disadvantages, a list of ERP vendors, and a checklist for companies to assess if they are ERP ready.

https://www.smartsheet.com/enterprise-resource-planning-guide

“SelectHub” is another resource for ERP. The company collects data, analyzes platforms and software, and works with companies to provide the best software programs. The company’s website gives information on ERP, how it works, the types of software products that companies can use, and how to use ERP software.

https://www.selecthub.com/category/enterprise-resource-planning/

Question 5: Papi Toys can produce 500 toys in a single day under maximum conditions. However, it is designed to produce 400 units per day under normal conditions. In February, it produced 480 units per day. What was Papi Toys’ capacity utilization for both design and effective capacity? What do these numbers tell you? (Sanders, Nada R. Supply Chain Management, 2nd Edition. Wiley, 2017-09-18. VitalBook file)

Design Capacity = actual production/target production * 100 = 120%

Effective Capacity = actual production/maximum possible production * 100 = 96%

These figures show that Papi Toys is operating above its normal or optimal conditions. The company is, however, not equipped to maintain such a high capacity for a long period
. Chapter 5: Operations Management (Questions 6 through 10)

Question 6: Explain the unique challenges to operations that manufacturing and service organizations each face.  When explaining these challenges use a company of your choice for each (service and manufacturing) to explain these differences and how, if managed poorly, the impact could destroy the company.

Uber is an example of a service company that connects passengers with drivers. There are various challenges that the company faces. Government policies are a great challenge for the company, especially where states seek to pass laws that require the company to treat their drivers as employees instead of independent contractors (Page, 2019). Taxes are also a challenge since if the company becomes an employer-employee organization rather than a technology company that connects people, the company will be required to pay huge taxes. Various countries and airports have banned the company from accessing their areas, making it impossible for people to enjoy its services. Driver and passenger safety and protection are also serious challenges that the company faces. Procter & Gamble is an example of a manufacturing company, a dominant firm in the global consumer goods industry. As a manufacturing company, Procter & Gamble faces challenges such as imitation of its goods, as its products are susceptible to imitation (Thompson, 2017); a limited online presence since its website is only accessible in the United States, and huge production and marketing costs involved in its operation.

Question 7: In your own words, explain the Product Design Process.  Use an example of your choosing to illustrate the process of product design.

The product design process refers to the stepwise process where an organization enters a creating phase or period for a new product that it wishes to sell to its customers. The Toyota Corporation has a product design or development process that has 13 steps (Morgan & Liker, 2006):

1. Establishment of customer-defined values that direct the separation of value from waste.
2. Frontloading of product development to maximize the design space and assess possible alternatives.
3. Development of the process flow.
4. Utilization of standardization to minimize variations.
5. Development of a chief engineering system to integrate product development from start to finish.
6. Organization to balance functional expertise.
7. Development of towering technical competence for all engineers.
8. Full integration of suppliers into the product development system.
9. The building of continuous and in-learning improvement.
10. Building a culture that supports excellence.
11. Adapting technology to fit the employees.
12. Aligning the organization.
13. Using standardization and organizational learning tools.

The company uses its product development process to innovate new vehicle models that enable it to remain ahead of its competition.

Question 8: Music Inc. has been selling music DVDs for 10 years and now wants to enter the Movie DVD business.  They have entered a deal with paramount pictures to sell on DVD all of their future and past movies.  The accounting department has estimated the cost of the DVD, Packaging, and Copyright fees for each DVD to be $5.00.  The fixed cost for machinery, buildings & grounds, and overhead to be $30,000 per year.  If Music Inc. sells each DVD for $20.00, how many DVDs must they sell to break even?  Next, if Music Inc. sells 18,000 DVDs per year at a price of $20.00 what is their profit?  Finally, if Music Inc. instead decides to lower the selling price per DVD by 10% ($18.00) and projects they will sell 10% more in that year (19,800), what is their profit?  What conclusion can you draw about lowering prices in the market by 10% (hint – how many more units must be sold to recover the profit lost from selling at a 10% lower price)?

1. $30,000 / ($20 – $5) = 2000 DVDs to break even
2. (($20 – $5) * 18,000) – $30,000 = $240,000 profit
3. (($18 – $5) * 19,800) – $30,000 = $227,400 profit

Despite the company selling 1,800 more units at $18, it still made a smaller profit by $12,600. The company needs to sell 970 more units to realize the same profit as before.

Question 9: Pizza Field Trip Exercise: Observe and then define in detail the process design for creating a Pizza in a “make to order” pizza house of your choice.  Allow for different sizes and toppings. (Note: Feel free to pose this to your family as a mandatory field trip 😊)

I and my family went to the local pizzeria, Mario’s. the menu used by the pizzeria is small since all the ingredients used are imports from New York. The pizzeria offers only New York-style pizza. We always order two pizzas since the children in my family only like cheese pizza, while the rest of use like meat pizza. Alongside pizza, Mario’s sells calzones, salads, and beverages. You can listen to music while waiting for your order to be processed. The company rolls out the dough, places cheese and sauce on it, and then places all the other toppings of choice on it. The pizza is then placed in a brick oven for baking for about ten minutes. When the pizza is ready, the chef will cut it into slices and place it on a pizza sheet, after which it is presented at the customer’s table.

Question 10: Discuss in detail the four types of Facility layouts.  Explain the differences, applications, and advantages and disadvantages.

1. Fixed-position layout (Huang, 2003): used when a product cannot be transferred during production due to its size or difficulties in moving it. An example of this layout is the manufacture of an aircraft carrier. The disadvantages of this layout include the numerous planning and the requirement of huge spaces for product building.
2. Product layout: when a facility uses an assembly line arrangement to produce products. Large volumes of a product are produced. The key advantage of this layout is the large quantity of production within short periods. The disadvantages of this system include the risk of assembly line breakdown and downtime during maintenance.
3. Process layout (Huang, 2003): where a production facility is used to produce different products having different process requirements. A facility is used for multiple product production at the same time to save costs, time, and manpower costs, which is the main advantage of the layout. The disadvantages of this layout include equipment overutilization, challenges juggling production layout, and product quality issues.
4. Cellular layout: where machines are organized according to the process requirements for similar products. The main advantages of this layout are cost savings, faster processing time, flexibility, and quick production of small batches of goods. The disadvantage of this layout is that it may require a lot of planning and organization.

References

Huang, H. (2003). Facility layout using layout modules (Doctoral dissertation, The Ohio State University).

Morgan, J. M., & Liker, J. K. (2006). The Toyota product development system (Vol. 13533). New York: Productivity Press.

Page, V. (2019). 4 Challenges Uber will face in the next years. https://www.investopedia.com/articles/investing/072215/4-challenges-uber-will-face-next-years.asp

Thompson, A. (2017). Procter & Gamble SWOT Analysis & Recommendations. http://panmore.com/procter-gamble-swot-analysis-recommendations