Operations management

We can see from the above diagram the overall picture of CDS. The inputs are entered into the transformation, where designs are passed to manufacturing then are produced and distributed as outputs. The objectives of the company are used as a template for the strategy of CDS’s operations, which will over see the designs and production of it products. There is also involvement from its design partners that will influence the operation strategy and designs of products. It has been said that the manufacturing department see more of their Design House partners more then their own and that the Villessi partners are always in the factory.

From this, we can see that the most important part’s of CDS’s operations for the operations manager is the good co-operation and communication between three departments design, manufacturing, planning and distribution. These are the three core functions within CDS, which is central to the company because it produces the goods and services, which are its main reason for existing. The product development and operations go hand in hand, as designs are created and tested then assembled and sold.

Operations management is important to CDS, as planning and managing these processes are key to the company’s success. CDS must make sure all its transformation processes, which create inputs into outputs, operate smoothly. The third marketing and sales is important as this segment creates sales volume through advertising the products and attracting business. It helps in determining sales targets and positioning the company within its markets. Due to the firm selling on a business-to-business basis, it is essential that they can meet changes in its customer’s demands.

It is important that CDS try’s to market itself as a quality brand that is unique in the products of home ware goods, as they do not sell directly to the consumer they need to attract the business that do which means that their client base is more narrow. As CDS is a manufacturing company it can be said that, its volume dimension is quite high. This is because of the repeatability of the production tasks carried out by its employees and the systemisation of the work. As shown by the company’s transformation process all production is carried out in the same, way from designing to manufacturing, to planning and distribution.

By doing this, its employees are specialised in their area of operations for example a certain team of people are specialised in creating new moulds for new home ware products. Variety Dimension The variety of CDS can be considered low. This is shown in its manufacturing operations where they are able to use the same workforce to make three times more items per minute increasing its productivity by 60 percent. This is because of the introduction of the new larger machines. Meaning that the firm is able to standardise more effectively, “as any mould could fit any machine”.

(Case study, Grant Williams, CDS Operations Manager) This allows more flexibility as they are able to change product moulds to meet changes in product demands. By doing, this CDS is able to minimise waste and disruption in day-to-day operations design, which will result in low operation unit cost. Variation Dimension The distribution service department was regarded as being at the lowest of the company’s customer service drive. Its purpose was to integrate the effects of design, manufacturing and sales by planning the flow of products through the distribution centre, to the customers.

The planning of its operations aims to maintain high utilisation, manager, Sandra White, “that anticipation of demand in new home ware products is difficult to forecast”. (Case study CDS) The nature of the products makes scheduling difficult as these home ware products are sometimes fashion items and seasonal this means that these types of products have a short life cycle. With promotions being organised at short notice this also adds to planning problems. Again, by being flexible in the manufacturing operation it can meet changes in demand.

This is why CDS has a high variation in demand. Visibility dimension CDS can be said to be a high and low visibility operations. The workforces that perform the vital tasks such as manufacturing the products have little contact with the customers. They are usually centralised to the factory area and are highly staff utilised. Where as, the employees at the planning and distribution operations provide a service in which they need to have good customer service contact skills as they deal with their clients, receiving their request and meeting new customers.

Customer satisfaction is met by quality of service as well as CDS’s products. This is shown by the focus brand, as they are very important clients, failure of this could lead to upsetting the customers and losing their account if delivery was to be missed. (Operations Management, Slack, N, 4th edition) The polar diagram shows that CDS have a high quality rate but their dependability and speed are not as high quality as it should be. The company needs to focus on bringing cost down as low as possible so that they can equalise each position.