operation management 2
bahanshla3
om_pr.docxThe process i choose is the process of stocking chocolates in Chocoline stores .
I chose this process because I work there, and i know the process well.
Description of the process:
The Goods get delivered to the stores from the warehouse. Once we received the goods,the store manger will report how many cartons of chocolates we received for accounting purposes. Then, we stock them them in different sections. There are many sections in the stores. For Example, imported chocolates are in different sections than local made chocolates. Also, The expensive chocolates are separate from inexpensive chocolate... etc.
I and my colleagues were seasonal workers. it was really hard for us to remember all the kinds of chocolates. when we did not know the the chocolate's kind, we would ask each other. This will slow up the productivity of the workers, and increasing the chance of assuming the false kinds of chocolate, which decrease the customer satisfaction.
In my project, i will come up with ways that speed up the presses, improve productivity and make easy for the seasonal workers to identify the chocolate's Kinds
Assignment requirement :
The goal of operations management is to improve business processes through documentation of the process, analysis of the process and systematic experimentation with new process designs and policies. All of the topics covered in this course are preparation for that task so a natural way to integrate those topics is to complete an analysis toward the improvement of a real world business process.
So to begin, select a real world business process which you could observe that is of interest to you. The choice could be a process that have experience with or knowledge of as a worker or customer. Or the process can be one typical of a business or functional area in which you might aspire to work someday. It can be either a product or service process.
Use this document as a guideline for preparing your report. Each page outlines a different task. Many of the pages correspond to topics of chapters of the textbook. Your report should document your activity and summarize your results. The guidelines are a minimum and you should have something for each task, the more the better, but quality over quantity. But you are always encouraged to go above and beyond as all tasks will not be as important for each project (e.g. some might have simple data collection, but complex process flow and others have a simple flow but some complex data collection).
The primary rubric for grading will be:
40% Completeness and effort applied to creating a professional description and document including sentence structure, organization, appearance, formatting, spelling and grammar checking.
30% Use of terms and concepts and analytical procedures from the chapters. Review those chapters learn the terminology and use it.
20% Integration of analysis into your process improvement recommendations. Use what you learned to make your recommendations, not just unsupported opinions.
Review the textbook sections before completing your write-up for each task. The more you use terms and concepts from the textbook, the better your score will be!
- Description of the company:-
Chocoline is owned company that sells mainly chocolate and other kinds of candy. It has been in business for almost a decade. Chocoline is one of the most popular chocolate shops across the country. They have many branches within five major cities around the country. For the past ten years, they expanded and established more stores in Qatar, United Arabs emirates, Kuwait and Hong Kong. They are planning to open new stores domestically and internationally as their popularity is growing and the demand for their chocolates increasing.
Description of the process:
The Goods get delivered to the stores from the warehouse. Once we received the goods, the store manager will report how many cartons of chocolates we received for accounting purposes. Then, we stock them in different sections. There are many sections in the stores. For Example, imported chocolates are in different sections than local made chocolates. Also, the expensive chocolates are separate from inexpensive chocolate... etc.
My colleagues and I were seasonal workers. It was really hard for us to remember all the kinds of chocolates due to many kinds of chocolates in the store. When we did not know the chocolate’s kind, we would ask each other. This will slow up the productivity of the workers, and increasing the chance of assuming the false kinds of chocolate, which decreases the customer satisfaction.
In my project, i will come up with ways that speed up the presses, improve productivity and make easy for the seasonal workers to identify the chocolate's Kinds.
The objectives of business Model
The business model of Chocoline depends heavily on manufacturing the goods and selling them. Chocoline has many types of products which vary in prices to fulfill different class of customers. For example, Chocoline has traditional candy which specifically targets the old generation. Also, there is a section of imported chocolates for high income customers. The reason this section is expensive because the chocolates are imported internationally from countries such as Belgium and France. The main target for Chocoline is the middle class consumers as there are many types of chocolates that are produced locally. 70% of the goods in store are suitable for middle class as they have good quality and affordable prices.
Advantages and Disadvantages of the Location:
Chocoline has more advantages than disadvantages when it comes to Location. As I mentioned earlier, 70% of the good are locally made, so Chocoline rely heavily on truck transportation. Chocoline stores are located in the main roads of the city which makes the transportation process very smooth. Also, warehouses are located close enough to the stores. This will help to reduce the any delay in delivering the goods. I remember one time we ran out of some kinds of chocolate, it took one hour for the driver one hour to deliver the shipment. For the imported chocolates, Chocoline uses Air as way of transportation. It is not ideal to use any types of transportation because it will take time and it may damage the chocolate. This is actually one of the reasons why imported chocolate is more expensive than the local chocolates.
2. Include a high level System Diagram (Input, Output, Transformation, Resources and Constraints diagram) satisfied c c
3. Service Data For at least 30 minutes, observe and record the service times for the process. Use your excel and statistics skills to record, summarize and chart these observations. Try and identify different service types or categories if you feel they are significant to the operation of the process. Use terms and concepts from Chapter 6/7 to discuss the factors that affect the service capacity of your process.
4. Demand Data (and/or Forecast) For at least 30 minutes, collect data on the inter-arrival time of customers. Use your excel and statistic skills to record, summarize and chart these observations. Try and identify different customer types if you feel they are significant to the operation of the process. Or prepare a demand forecast using real or estimated data. Use topics and concepts from Chapter 3/6/7 to discuss any seasonal trends you might need to forecast demand data for your process.
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Arrival rate |
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3 |
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Service rate |
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4 |
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Interarrival Time |
1/ = |
0.3333 |
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Service time |
1/ = |
0.2500 |
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System Utilization |
= |
0.7500 |
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Probability system is empty |
P0 = |
0.2500 |
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Average number in line |
Lq = |
2.2500 |
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Average number in system |
Ls = |
3.0000 |
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Average time in line |
Wq = |
0.7500 |
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Average time in system |
Ws = |
1.0000 |
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n = |
2 |
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P(2 units in system) = |
0.1406 |
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P(n < 2 units in system) = |
0.4375 |
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5. Process Diagram: Level 0: Diagram the Major Steps in the Overall Process (use Visio BPMN Diagram. . . or Smart Art for lesser credit)
1.1
Customer Entering the Stores
1.2
Customer browsing the product
1.3
Customer making decision
1.4
Customer placing the order
1.5
Customer checking out
6. Process Diagram: Level 1: Diagram the process flow of the primary value added process from your Level 0 Diagram
7. Process Design and Facility Layout Description Using terms and concepts from Chapter 6, describe the type(s) of process layouts being used including any upstream or downstream processes immediately before or after your process. Identify important equipment and technology that contributes to the efficiency of the process. Identify the bottleneck operations.
8. Process Quality Improvement Employ the terms and concepts of Chapter 10 to identify and rank quality issues with your process. Create a cause and effect hierarchy (instead of a diagram) and identify in bold (see below) the factors you think could be the most important factors that could be addressed.
Quality Issue
1. Cause 1
1.1. Cause 1 Factor 1
1.2. Cause 2 Factor 2
1.2.1. Cause 1 Factor 2 Subfactor 1
1.2.2. Cause 1 Factor 2 Subfactor 1
1.2.3. Cause 1 Factor 2 Subfactor 3
2. Cause 2
3.
9. Inventory Describe terms and concepts from Chapter 11 to describe the primary inventory system needed to support the process. If possible, break them into A category for high value, low usage items, C category for low value, high usage items and B category for those in between. Describe the inventory replenishment issues you think might be the most critical to preventing stockouts or the most difficult to manage.
10. Supply Chain Use terms and concepts from Chapter 12/13 to discuss the supply chain processes necessary to support the process. Who are the primary vendors and what do you believe are the most important factors affecting the vendor selection process for this company.
11. Process Improvement Based on your analysis in Sections 1-10, propose one or two recommendations for process improvement. Do your best to quantify the costs of implementing your solution and the benefits to the firm.
12. Other I have identified sections, but there are many other topics covered in your text. Take one more page by page tour through your text and add another section of your own choosing that you think is applicable to your system analysis.
Transformation
Making the chocolates, Delivering , Packging, sorting, stocking ,
Constrains
Regululations from authority
The avalibility of supply, the size of the market, The nature of of the cometition and the demand in the market
Output
Chocolates, Profit, satisfied customers,
Resourses
Human resourses
Equipment
Input
Employees, Time, Raw Materials such as the ingredients to make the choclates, equipments such as machines and trucks
he process of placing the order 1.3 Customer makes decision of what to buy 1.2 Sales person provide info about the product such as price and kinds. 1.1 Customer asks for info about the products 1.4 Customer gives detail of the order for packaging services Ex (how many kilos or bound of chocolate. 1.5 Worker prepare the order for checking out 1.6 Customer checking out
he process of placing the order 1.3 Customer makes decision of what to buy 1.2 Sales person provide info about the product such as price and kinds. 1.1 Customer asks for info about the products 1.4 Customer gives detail of the order for packaging services Ex (how many kilos or bound of chocolate. 1.5 Worker prepare the order for checking out 1.6 Customer checking out
