• April 16th, 2016

Managerial systems and operations

Paper, Order, or Assignment Requirements

Produce a report for the Board of Directors that analyses the provided scenario, that:.(2500 words)

i.Explains the issues in operations management that are discussed in the scenario(LO2).

ii.Discusses the problems and opportunities(Supply chain issues, lean issues, change management, multiple IT systems) the organisation faces, and explain how the Risk Matrix and the WBS below will underpin project success and thus help create a better customer experience(LO1,LO2)

iii.Develop a Risk Matrix for the project to provide a Customer Relationship Management module as part of an integrated IT system.(LO2)

iv.Create a Work Breakdown Structure(WBS) diagram for the project to implement Customer Relationship Management as part of an integrated IT system (LO2)

Your work should draw on the concepts, systems and tools covered in the module and show evidence of academic and commercial research, note there are suggested formats in this brief .

Scenario

5IB002 Assignment Scenario. “ Challinor’s” is a small manufacturing enterprise(SME) in the West Midlands which manufactures actuators for the aerospace industry. While they had suffered during the recession they did keep trading. Because they had a good reputation in the aerospace industry(where quality is a major safety issue) they have been offered a contract with a major automobile manufacturer within the region. If this works well it will mean a major increase in business and overall profit and it will mean that they are able to supply within a much broader market to reduce their dependence on just one sector.

Their existing premises are near Birmingham (near Edgbaston) and have some capacity to increase floor-loading but not a lot if they carry on working in the way they have traditionally worked. The CEO organised a directors’ meeting to look at the possible options for them. The Logistics Director suggested that they use one of his managers, who had just completed an MBA in a local university, to facilitate the meeting.

From the meeting a SWOT analysis was developed as figure 1 as a starting point for a follow up session to try and develop the company’s strategy.

Strengths

Produce a quality product.

Have a good workforce of experienced engineers

Centre of the country.

Have space to develop the new contract

Weaknesses

Only work within Aerospace at the moment.

May over engineer products

We do not have an operations management based IT system to manage work flow, we only have manual systems.

Existing IT systems are standalone, for Finance/Pay, and Inventory and Logistics

If the new automobile contract works well that will use up all existing space in the factory, and already there is sign of the aerospace market increasing.

Opportunities

The new I40 manufacturing and innovation site near Telford has good road access to our main aerospace customers and the new automobile manufacturer.

There is EU money available to develop businesses within the West Midlands

Threats

If we cannot make the contract work it would weaken the company.

Increased traffic around the existing site is extending our lead times and associated costs.

If we relocate we cannot be sure that our workforce will want to move .

If we do not expand the business someone else is likely to expand into the market for us.

We cannot be sure about our existing market.

If we take out large loan from the bank they could interfere with the business or call the loan in.

If there was a general election the government might move out of the EU and grants might no longer be available in the UK .

At the next meeting the CEO explained that the automobile manufacturer had agreed to provide training to develop lean skills in the workforce. The local development board agreed to provide background information and videos to explain what is going on in the region for the workforce. The HR Director agreed to use one of his IT staff to outline the information needs for an integrated IT system, starting with understanding of the Information needed for a CRM module, and to suggest options about more up to-date approaches such as RFID technology.

The Operations Director has agreed to get her transport co-ordinator to provide a brief about the supply chain issues around the existing site and the option for moving to Telford, this should include a view of supplier and customer issues. She said the information would be provided as a table, and asked if the MBA graduate could write the broader discussion piece around it She also thought it would be useful if the lean training was provided to all staff, not just operations.

The CEO decided that the MBA graduate provided such a useful report after the last meeting that they should continue and produce a draft report for the next meeting to cover : the use of lean concepts in manufacturing and administration(service); how the key tools were used: what the relevance was for the board of directors; and what are the quality standards. He also asked the MBA graduate to develop a work breakdown structure and a risk matrix for a project for a CRM module as part of a report to discuss the feasibility of the project, and highlight the pros and cons involved.

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