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1.0. Introduction For a business to run well, operations management is essential (Singh, 2008). Designing and creating systems to meet various production and service needs is what operations is all about. They are among the foundational duties of corporate organisations, along with finance and marketing (Stevenson, 2014). A company's total business benefits from ongoing improvements in the efficiency of its operations and the reduction of waste in the system (Singh, 2012). Operations management (OM) is that section of a business that is concerned with the creation, as well as delivering of value to an organisation. Therefore, it is crucial for businesses to implement tried-and-true OM theories. OmegaCo, a medium-sized producer of handmade fruit juice, has enjoyed a strong brand image within its domestic market. However, challenges such as a dated order system, reduced market visibility, and recent market share decline have posed significant hurdles. This has been exacerbated by external factors such as the pandemic and inflation. With ZetaCo's recent acquisition of OmegaCo, there is a renewed vision to pivot towards global markets, aiming to leverage the brand's strengths while rectifying its operational inefficiencies. Hence, this study will develop the swot analysis, business model and an ERP for OmegaCo. Our analysis recommends the following strategic moves: 1. Digital Transformation: Introduce demand forecasting tools and transition from telephone orders to an online platform. This not only streamlines the order process but enhances customer experience and visibility into operations. 2. Supplier and Customer Relationship Management: Implement robust vendor management systems and customer portals to automate and improve transparency in order and delivery processes. 3. Quality and Capacity Management: While scaling operations, maintain the brand's reputation for quality using modern technological solutions for quality control and production forecasting. 4. ERP Integration: Research and integrate a suitable Enterprise Resource Planning (ERP) software solution that can tie together various business processes, ensuring seamless operations and data-backed decisions. 5. Adoption of AI: As part of Industry 4.0 technologies, the introduction of Artificial Intelligence can drive demand forecasting, optimize supply chains, ensure consistent product quality, and provide valuable customer insights.
By implementing these strategies, OmegaCo, with the backing of ZetaCo, has the potential to not only regain its lost market share but expand its footprint into global markets, delivering quality products efficiently and at competitive price points. 2.0. SWOT analysis Strengths Established brand image: Loyalty among small retailers and cafes Weaknesses Lack of visibility of future orders Long lead time for deliveries Dependency on a small number of local
Experience in producing high- quality juice suppliers Difficulty in managing supply and demand Opportunities Entry into global markets with ZetaCo's support Potential for digital transformation Growing market for quality products Threats Market size reduction by 20% Economic consequences of the Covid-19 pandemic Competition in global, price-sensitive markets 2.1. Effective and efficient management of capacity, quality, suppliers, and customers Abadi & Cordon (2014) asserts that capacity planning helps organisations determine the optimal operating level. The capacity for which the average unit cost is the lowest is referred to as the optimal operating level. It is also the maximum capacity in which there is an intention for some processes, therefore, it is the productivity volume in which there is a reduction of the average unit cost. Therefore, capacity planning aids organisations in understanding their optimal functioning levels (Aguirre, Liu, & Papageorgiou, 2018). Through the application of the just-in-time principle, capacity planning, and quality management also raises the level of efficiency of the organisations. According to Altiparak, Gen, Lin, and Paksoy (2016), just-in-time (JIT) production, also known as the Toyota production system, is a methodology that primarily aims to reduce the flow times in the system of production and the response times from the firm’s suppliers to its clients. It can be characterized as the inventory technique employed by producers to boost grades of productivity. It involves placing orders and obtaining inventories only when those things are needed to produce the items, not before. By making sure that stock levels are reduced, Just in Time can function. It comprises placing an order for exactly what is required as soon as possible. However, according to the SWOT analysis, a more adequate and efficient capacity and quality management can help ZetaCo to meet its new performance objectives in the following way.
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2.2. Efficient Capacity Management: The current landscape at OmegaCo demonstrates a challenge with long delivery lead times, primarily stemming from the absence of clear visibility into future orders. Efficiently managing capacity could be the linchpin in resolving this predicament. 1. Demand Forecasting: A reliable forecasting mechanism could provide a clearer picture of impending orders. Employing techniques such as time series analysis or even leveraging machine learning can predict demand more precisely. By preempting demand surges or declines, OmegaCo could better align their production cycles, ultimately trimming down lead times. 2. Optimized Production Schedules: With clearer foresight through demand forecasting, production schedules can be finely tuned. A balance between just-in-time production and maintaining a minimal buffer will mitigate order cancellations and stockpile issues. This synergy could significantly enhance customer satisfaction, giving them confidence in OmegaCo's delivery capabilities. 3. Lean Manufacturing: Adopting lean principles could lead to waste reduction, streamlining processes, and ensuring resources are utilized optimally. With ZetaCo's investment backing, the implementation of lean practices could dramatically transform production efficiency. 2.3. Quality Improvement The bedrock of OmegaCo’s brand image is its high-quality handmade fruit juice. Upholding and amplifying this reputation are pivotal for its expansion journey under ZetaCo. 1. Total Quality Management (TQM): By integrating TQM, OmegaCo can ensure consistent excellence across its products. This approach emphasizes continuous improvement, directly enhancing product quality and reducing discrepancies. 2. Quality Checks and Audits: Regular monitoring of production processes, both automated and manual, can help identify potential issues before they escalate. By being proactive, OmegaCo can avert potential recalls or customer dissatisfaction. 3. Employee Training : Quality is not just equipment and processes; it’s about the people. Investing in regular training sessions ensures that employees are up to date
with the latest quality standards, ensuring that every bottle produced meets the brand's high standards. 2.4. Supplier and Customer Relationships: OmegaCo's supply chain dynamic, characterized by a dependence on a few local suppliers, can be precarious. Also, the customer order and feedback mechanism seem antiquated. 1. Diversified Supplier Base: Engaging a broader supplier spectrum can not only offer better pricing negotiations but also risk mitigation. If one supplier faces issues, others can step in, ensuring OmegaCo's production isn't halted. 2. Supplier Relationship Management (SRM): A robust SRM system can create symbiotic relationships with suppliers. Regular dialogues, feedback loops, and performance reviews can enhance the reliability and quality of supplies. 3. Digital Platforms for Customer Interaction : Transitioning to digital ordering and payment systems can greatly enhance customer experience, ensuring quicker response times and reduce manual errors. Moreover, it provides invaluable data on customer preferences and behaviours. 4. Feedback Mechanisms : Implementing channels for customer feedback provides insights directly from the end-users. This feedback can be crucial in product development, addressing issues, and staying attuned to market needs. Digital Transformation With ZetaCo's backing, a digital overhaul can be transformative for OmegaCo. 1. Automated Production Processes: integrating automation can increase the speed of production while reducing manual errors. It can also offer real-time insights into production metrics, facilitating better decision-making. 2. Integrated Supply Chain Management System: A unified digital system can enhance visibility across the supply chain, ensuring seamless coordination between different stakeholders, from suppliers to end customers. 3. Data Analytics: The power of data cannot be overstated. By analyzing market trends, customer preferences, and internal metrics, OmegaCo can make informed strategic decisions, setting the stage for its global aspirations. By effectively managing capacity, quality, suppliers, and customers, OmegaCo can become more agile, responsive, and efficient, aligning with ZetaCo's performance objectives. This
will not only strengthen their position in the current market but also prepare them for expansion into new markets. 3.0. Business Process Model (BPM) - Focusing on Supplier Management : Organisations presently operate in a business climate that is unstable and highly competitive as a result of globalisation. Reducing the time needed to create the same goods and services, improving their quality, lowering prices, and increasing profits are all necessary for an organisation to become more competitive. Many organisations used the business process model to achieve these competitive aims. A graphic method of presenting business operations, events, flow controls, stakeholders, and their interactions is known as business process modelling. varying authors have given varying definitions of the term "business process" in their works. For example, in 1990, Davenport and Short described it as "a batch of logically associated tasks carried out to attain a defined business result." Furthermore, WMP Van der Aalst (2013) stated that “Business process model refers to the techniques,
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instruments, and strategies employed to examine, comprehend, and enhance the processes employed in the organisation. A business process model for ZetaCo’s services is required given its existing status. The business is transitioning from managing one band to managing several bands at once. Two business process models have been created to indicate a strategic shift in this direction. One shows business processes in the current system, while the other mirrors a business process following the adoption of the new modifications and reflects the management of many bands. "Ordering of music services" is the service that has been chosen for modelling and strategy analysis. Current Position
Proposed Process BPM START OmegaCo receives orders from customers OmegaCo manually receives orders Is raw materials needed? if no, return to receiving orders if yes, move to the next step manual purchase order is sent created purchase order is sent to local suppliers suppliers deliver materials OmegaCo pays suppliers END
By automating and integrating the supplier management process, OmegaCo can reduce lead times, ensure a more consistent supply of raw materials, and foster stronger relationships with suppliers. ZetaCo's experience and technological expertise can play a pivotal role in guiding and implementing this transformation at OmegaCo. Based on the data shown in Figures 1 and 2, it is abundantly evident that as ZetaCo promotes more products, there will be less haggling and less waiting time for responses from customers. This is also anticipated to improve communication across the various bands that OmegaCo manages, resulting in the development of synergy in their business operations. 4.0. ERP Software Evaluation : Since the middle of the 1990s, a lot of businesses have made the decision to put Enterprise Resource Planning (ERP) systems in place in order to increase business productivity, decrease production costs, speed up throughput, expand their services, offer more dependable delivery dates, and better coordinate global demand, supply, and production. Due to the complexity of these solutions and the requirement to modify business processes to accommodate chosen software solutions, their implementation is difficult, generally time- START OmegaCo receives orders from customers logged into the integrated ERP system system auto-assesses inventory Is raw materials needed? if no, return to receiving orders if yes, move to the next step automated purchase order is created system selects priority suppliers suppliers view OmegaCo's supplier portal they see real-time demand fluctuations suppliers deliver materials based on predictive data payments are made through the system suppliers can view payment history forecasts END
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consuming, and over budget. Even with substantial investments, many businesses struggle to install ERP systems, and 70% of implementation efforts fail (Ehie and Madsen, 2005). For OmegaCo, transitioning under ZetaCo's wing, it's essential to evaluate and implement an ERP system that will not only suit their current needs but also scale with their growth. Evaluation Criteria 1. Usability 2. Integration capabilities 3. Cost 4. Scalability 5. Features specific to OmegaCo's operation 6. Support & Community Analysis: 1. Commercial Product 'FruitERP': This system offers an excellent balance of usability and scalability. While it comes at a higher cost, the comprehensive features tailored for OmegaCo's operation and excellent support make it a viable option. 2. Commercial Product 'JuiceFlow': Offering robust integration capabilities and scalability, 'JuiceFlow' provides a more moderate feature set at a comparable price to 'FruitERP'. Its slightly lower usability rating might require a longer adaptation period for OmegaCo's employees. 3. Open Source 'BlendBase: Being open source, 'BlendBase' offers cost benefits. However, its usability and feature set are basic. While it has decent integration capabilities, the potential support costs and time investment for customization might offset initial savings. 4. Open Source 'PureServe: This system offers moderate features and better usability than 'BlendBase'. As with most open-source options, OmegaCo would need to consider potential customization and support costs. Considering ZetaCo's intention to invest in OmegaCo, especially in the realm of digital transformation, it would be prudent for OmegaCo to lean towards a commercial product that offers comprehensive support and features, ensuring a smoother transition and integration process (ZetaCo, 2023). Evaluation Characteristics Commercial product 1 (SAP Commercial product 2 Open Source 1 Open Source 2
S/4HANA) (Microsoft Dynamics 365) (e.g., Odoo) (e.g., ERPNext) Pricing Tiered based on modules & users Subscription based on users & modules Free base, paid for premium features Free, self-hosted Integration with current systems High compatibility with legacy systems Moderate; might require third party tools High with customisation Moderate with some in-house systems Scalability for Medium Business Highly scalable but might be over comprehensive Designed for SMEs and scalable Highly customisable and scalable Scalable with modules and extension Core Modules Relevant to OmegaCo Finance, production, sales, supplier relationship CRM, Finance, Supply chain, HR Sales, Inventory, Purchase, and CRM CRM, accounting, sales, and inventory Customisation for juice production High (with specialised skills) Moderate (with extension marketplace) High (flexible for niche industries) Moderate (with module development) Ease of transition (from current processes) Might be complex due to extensive features Easier with guided setups and wizards Moderate with community support Easier with user- friendly interfaces Support and resources Extensive global support and resources Comprehensive training and resources Active community and optional paid support Active forums and premium support options Cloud vs on- premises Both available, cloud is more expensive Primarily cloud- based with on- premises option Both available, cloud is subscription- based Both; cloud hosting available through third party Customer management Advanced CRM with AI Integrated CRM with seamless Modern CRM with website CRM with feedback and
enhancements capability finance integration integration review capabilities 5.0. Application of Industry 4.0 Technology (Artificial Intelligence (AI)) into OmegaCo Artificial intelligence became a very common word as at 5 years back and it sent a signal to an automated future where robots will be made available to Make life easier. However, in recent times, the application of AI has become less than what the world had imagined but, it still makes a lot of things easier even without giving much thought to it. Just-in-time production, product quality, and sustainability are currently among the top issues for businesses. These problems have been addressed using lean practices, which must be applied consistently and with awareness if organisations are to thrive (Sanders et al., 2016). Most lean practices have been successfully implemented by some businesses. Many organisations are still falling behind in fully reaping its benefits, though. This is where industry 4.0, a novel idea also referred to as the fourth industrial revolution, comes into play (Tortorella & Fettermann, 2017). 5.1. Benefits of AI into OmegaCo Personalisation: Artificial Intelligence is an innovative scientific discipline that is targeted at making innovative theories, machines, as well as creating new applications that are human- like. AI has to do with several systems that human-like characteristics, as well as systems that also behave like humans. Furthermore, AI has to do with systems that think rationally and
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systems which are made to look like humans (Putica, 2018). The major aim of developing an artificial intelligence system is to come up with systems that can be a substitute for humans when it comes to the way they think and make decisions. However, asides from acting as human substitutes, AI is focused on the decision making of organisations and analysing the data in the organization. For OmegaCo, integrating AI into its business will help the business grow and make decisions better. Personalisation is a task that takes time and is quite overwhelming if it is carried out manually however, it becomes easier if it is done using artificial intelligence. It will reduce the number of employees needed by the organisation and the company’s data will be properly kept avoiding third parties penetrating the company. Smarter decision-making: While developing AI, the major aim of developing the AI technology was to ensure business decisions are smartly made. With the development of AI, there will be speed of foresight in market trends which can be used to detect when there is a new market trend in the industry; also, when it comes to the area of marketing, AI, can be utilized to conduct various predictive analysis that will especially be applied when OmegaCo is trying to create new marketing strategy. The predictive analysis will simulate the possible trends and results gotten while the company is trying to implement their strategies and it can as well be the basis of OmegaCo making decisions. Artificial Intelligence Can Help Enhance Customers’ Experience: By the application of AI, OmegaCo will experience efficient and effective reduction of lead and delivery time which will significantly result in developing a stronger and more professional customer and supplier relationships. However, it is important to note that with the implementation of AI, supplies will be gotten better and smarter. Also, there are some chatbots that can assist customers to meet their needs and attend to their complaints with ease ensuring that the clients are happy. 24 / 7 Availability: Introducing AI into OmegaCo will give opportunity for continues production and sales. Orders can be made at any time with the assurance of quick delivery. Digital assistance solutions like chatbots are available to take customer inquiries and orders no matter the time of day.  Deeper Data Analysis : Big data, on the other hand, refers to a collection of data sets used in industry 4.0 to make inferences about the items being produced using analytics. This method significantly reduces decision-making time, improves output, raises goods quality, and provides a heads-up for machine maintenance (Chen et al., 2018; Rüßmann et al., 2015).
Sensors are used to collect data at various stages along the process. These elements consist of production equipment, production processes, business management systems, and customer management systems (Rüßmann et al., 2015). Intelligent machinery is necessary for a smart factory to operate constantly and produce high-quality goods. Additionally, the upkeep of the equipment is a crucial component. The breakdown of the machinery and the need for maintenance can be foreseen with the aid of the data provided by the sensors (Chen et al., 2018). Regular maintenance and failure prediction can significantly lower breakdowns. Increasing production productivity as a result. Artificial Intelligence also significantly aid in the optimisation of product design. As diverse types of data are mined and modelled using data mining techniques to provide desired outcomes (Chen et al., 2018; Frank et al., 2019). 6.0. Conclusion In the ever-evolving landscape of the food and beverage industry, adaptability and foresight are paramount. OmegaCo, with its rich heritage of producing quality handmade fruit juices, found itself at a crossroads, challenged by market reductions and operational inefficiencies. The acquisition by ZetaCo offers a promising avenue for reinvigorating the brand and expanding its horizons. By leveraging digital transformation, emphasizing production efficiency, and cultivating robust customer-supplier relationships, OmegaCo is poised to transition from a local favorite to a global contender. This strategic redirection, backed by ZetaCo's investment and vision, holds the potential to not only recover lost ground but to elevate OmegaCo to new heights in the global marketplace. Also, the study discussed implementing big data and analytics as well as artificial intelligence into ZetaCo to ensure the smooth running of the company’s operations. The journey ahead will undoubtedly present challenges, but with collaborative effort and a renewed focus, OmegaCo's future looks bright and promising.