Operation Management Commodities in an Organization

Question: Describe about the Operation Management for Commodities in an Organization. Answer: Operation management describes the persuasion in order to manage the resources that are committed to the manufacturing as well as transporting of the services and commodities in an organization. Every firm has an operation management function in its procedures as every organization generates some kinds of services or goods. This study is based on the case study on operation management of Hawkesbury Cabinets Pty Ltd, which is the leading designers and manufacturers of custom-built kitchen appliances in Australia. The company was founded by two brothers Fung and Mei Chen, Sydney in 2008. The study will also outline how Hawkesbury Cabinets transforms from a local manufacturer to a successful organization. The process of a business starts with identifying the needs and wants of the customers and converting that into a general or specific product or services. It is based on the requirement of the product and works based on identifying the raw materials requirement. Internal and external vendors or suppliers are also engaged in creating the supply chain for finished goods as well as raw materials amongst vendors, the facilities of production and the ultimate consumers (OBrien, Sweet and Sagdic, 2005). The production process of Hawkesbury functions in a sole workplace in Mulgrave. In this department both standard kitchen dressers, as wells as custom kitchen cabinets are manufactured. Managers of the Company gives special attention to their equipments as high quality machines were installed in the manufacturing facility for kitchens cabinet production. The layout of the equipments in the factory was gathered together. Tools like cutting tables, and saws were in solitary section, other tools were placed at other sections. Finishing touch to the products was given at the rear side of the workplace. Because of this placement, it is easier for the workers to finish the products at the given time (Sitzman, 2006). This strategy of placement let the company to increase their products steadily and also lead them have regular scheduling of the works. In arranging the time table, custom kitchen were given importance as they are more profitable for the company (Beecher, 2001). The company would try to implement a contract to ensure that all areas are properly addressed and the firm is doing unbiased business in their respective terms. This strategy has let the company to grow steadily. The sale in the builders line kitchen has continually increased but it becomes issue for many operational problems. As custom kitchen were given priority in the workplace, the arranged cabinets components were absent in the manufacturing facility during the procedure of the completion of the work (Meah, 2016). It headed to enhance the capacity of work, but changed the workplace in an area of partially finished products. The custom made designs of Hawkesbury Cabinets Pty Ltd has made it popular in kitchen appliances due its unique designs and standard working quality. The core operation of the company is to create high-quality products but at an affordable price. The high competitive environment in Home appliances organizations in Australia leads Hawkesbury to pursuit the operation management sustainably. Distinguishing between Hawkesbury and another kitchen manufacturers operation plan is that they deliver additional value from contractors to purchaser for attracting their customers. The respective company is quite popular for their customer oriented facility, for illustration, the cabinets as well as its finished products are held in high esteem and indicate the quality of the material chosen and the skill of the different cabinetmakers. The function of operation management is vital for product and service of any organization whether it is large or small, manufacturer or service provider, to be efficient and at the same much effective. It also affects profitability in various type of business. Without a proper and appropriate operation plan, a firm cannot achieve its desired goals and objectives. An accurate operational management uses resources suitably to manufacture goods or services that accomplish the requirements of the target market (Yi, 2014). Operation management mainly contracts with the services as well as product or commodity development operation for maintaining and increasing speed, quality, cost as well as durability of the service and commodity. The duties of operation management are for maintaining a durable relationship with the vendors for assuring that the required primal materials are delivered timely (Bildsten, Bjrnfot and Sandberg, 2011). Keeping connection with the customers is the key functio n for the success of any organization and thus customer relationship management ensures that best quality service is provided to them to satisfy their demands. The operational strategy can be defined as the way and scope of a firm in a long term to achieve benefits within fluctuating environment via its arrangement of reserves while meeting the shareholders probabilities. It shapes the design of planned decision which determines the roles and aim of the procedure. It is the plan for the operation which is connected to the industrys plan and the operational strategy which will lead to the competitive benefits for the industry. The current operational system of Hawkesbury is pushing its production capacity to its limit, and with the present layout, there is no space left for the extension of the workplace. The workplace or manufacturing place of the Company should be should be designed to production oriented to enable efficient production and to provide quick customer service. The production process for new ideas of product and service of Hawkesbury can come out from a variety of sources. It should include a research and development department, review from customers, research data and development in new technology. Design for the manufacture will ensure the product pattern to be manufactured easily as well as also at a lower amount through principle aspects like innovation and transformation. Hawkesbury is facing problem for the cost associated with its operating process (KuliÅ„ska, 2014). The cost associated with the company is continuously rising and it should be reduced to get more benefits. In an organization, it is vital to know the ways to manage cost. The first way to reduce cost in a company is to get benefits from the providers of the respective industry. If the vendor of raw materials of Hawkesbury does combine its full customer base together for the purpose of providing benefits, the company will likely to find a position where it can save time and money. The company can also control its cost by encouraging its customers. Fulfilling the customer needs and demands will surely decrease the cost associated with the advertisement and promotion of the company. Hawkesbury can also manage its costs with improvement in its technology. In small or medium scale industries, employees and managers see significant cost savings by using online tools or modified improved technology (Ozbilgin and Penno, 2005). Cost can also be decreased by enhancing the use of improved technology, and workers self-service. Cost cutting in an organization does not need to reduce the overall measurement of the savings that companies can achieve. It can be done by shifting the focus from organizational structure to future strategic needs. It is found from the above study that, Hawkesbury cabinets Pty Ltd is facing problems in their cost which is associated with the builders. The recommendation of the respective problem is specified in the study. The study also portrays the operational strategy of the company. The study also examines the manufacturing procedures of the company. References Beecher, M. (2001). Promoting the "Unit Idea": Manufactured Kitchen Cabinets (1900-1950). APT Bulletin, 32(2/3), p.27. Bildsten, L., Bjrnfot, A. and Sandberg, E. (2011). Valueà ¢Ã¢â€š ¬Ã‚ driven purchasing of kitchen cabinets in industrialised housing. Journal of Financial Management of Property and Construction, 16(1), pp.73-83. KuliÅ„ska, E. (2014). Importance of Costs of Risks in Material Management. Foundations of Management, 6(1). Meah, A. (2016). Extending the Contested Spaces of the Modern Kitchen. Geography Compass, 10(2), pp.41-55. OBrien, E., Sweet, R. and Sagdic, Y. (2005). Greening Kitchen and Bath Cabinets. Housing and Society, 32(2), pp.63-80. Ozbilgin, M. and Penno, M. (2005). Corporate Disclosure and Operational Strategy: Financial vs. Operational Success. Management Science, 51(6), pp.920-931. Sitzman, K. (2006). Workplace Germs. Workplace Health Safety, 54(7), pp.336-336. Yi, N. (2014). Evaluation of Importance and Performance for Operation Management by Managers and Chefs at Korean Restaurants. easdl, 24(5).