MBA576 Week 7 Responses

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MBA576 Unit 7 Discussion

Rashad Jafarov

Park University

MBA576: Operations Management

Dr. Kevin Loy

September 29, 2021

Abstract

As the operations manager at Kibby and Strand, I was assigned to carry out an analysis of the way Kibby and Strand manages receiving, production, and shipping. I will also prepare a memo to the CEO detailing to what extent supply chain management is being utilized, along with suggestions to improve efficiency of operations in order to prevent the quality issues and other problems.

Process Improvement Plan 

Before signing the contract, Marketing department first needs to verify whether Kibby and Strand has enough raw materials of relevant quality to deliver the order on time also they need to constantly collaborate with production and shipping departments to verify whether order can be produced and delivered timely. In case if we do not have raw materials, Marketing need to cooperate with Receiving department to order the relevant raw materials and make sure it is shipped on time. Measurable indicators for this are as follows: expected completion date, quantity, quality, raw materials on hand, raw materials unsorted, bulk order discounts, and holding cost (Stevenson, 2018). The receiving department can affect forecasting in various ways. This will include items such as how a shortage of raw materials might affect decision making with regards to production operations and the effect of raw material quality in production. The priority scheduling plan for Kibby and Strand will give a guideline for managing production based on incoming contracts. Production must use the number of weeks to determine priority followed by the number of units. This will focus on the largest order with the shortest amount of time until expected completion is first for priority. When production begins, a priority is established and when there is a shortage of materials we lose time, which is most important when it comes to customer satisfaction. The shipping department manager will ship finished goods so that it reaches customers on time according to contract due date. It also allows Kibby and Strand to get products out the door as soon as possible while not accumulating holding costs. It is important to understand the shipping capacity as production increases. Therefore more employees for shipping department to handle shipments will be needed. The shipping manager will conduct a quality assurance check of each order and discard any items that fall below quality standards.

Vendor Comparison Matrix

Using Vendor Comparison Matrix our Receiving Department can easily evaluate suppliers of raw materials by actually comparing their scorings in order to select the best vendor. I have identified the following variables for our Vendor Comparison Matrix:

· Textile quality

· Price

· Thickness of fabric

· Material Variety

· Support and maintenance

· Delivery time

The first step in creating Matrix is sorting Variables by Order of Importance. Next we assign weights for each variable. Third step is to rate each vendor in regard to each variable. The last step is to create Weighted Score for each vendor.

From the following Matrix we can see that weighted score of Vendor B (7) is higher than weighted score of Vendor A (6). So, Vendor A should get the order:

Variables	Vendor A	Vendor B
	Weights	Score (1-10)	Weighted score	Weights	Score (1-10)	Weighted score
Textile quality	35.00%	7	2	35.00%	6	2
Price	25.00%	6	2	25.00%	8	2
Thickness of fabric	15.00%	6	1	15.00%	7	1
Material Variety	10.00%	3	0	10.00%	6	1
Support and maintenance	8.00%	8	1	8.00%	5	0
Delivery time	7.00%	4	0	7.00%	8	1
Total	100.00%		6	100.00%		7

This is a simple model that we can use to compare several vendors against each other. The goal is to compare vendors objectively to determine who suits best with our company’s requirements.

MEMO To: Kibby and Strand CEO

From: Operations Manager Date:

September 29, 2021

I found that the methods we use to forecast supply of raw materials and forecast demand for product are not accurate and need a revision which is why we failed to deliver some customer orders on time. Beside that marketing started shortening delivery time to satisfy customers this may result in quality problems with our products. The shorting of delivery times also impacted the flow of cotton and wool from our suppliers. We need to streamline forecasting with all departments so everyone can make decisions and know how it will impact their department (Pratt, 2018).

References:

Pratt, M. (2018, June 14). 5 Ways to Increase Supply Chain Performance. Retrieved from https://www.business.org/software/supplier/ways-to-increase-supply-chain-performance/ Stevenson, W. J. (2017). Operations Management (13th ed.). New York, NY: McGraw-Hill Education.