Operation Management Assignment-CDS

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Operation Management Assignment
Liu Zhenya(Harry)
Words[1724]Question1: Why is operations management important in this company ?Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. Operations management is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization (Stevenson, W. J., & Hojati, M., 2007). The operations function comprises a significant percentage of the employees and physical assets in most organizations. Operations managers are concerned with each step in providing a product or service. They determine what should go into an operating
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The products are low repetition with high unit costs due to the SKU are with large numbers, but the only unit sales volume is not very high. The old fashioned products are usually replaced by a new version in pretty short time. Concept products are less systemization compared with Focus products. Focus products focus on a small handful of customers with large size of each order.
Variety: CDS has an excellent new product development process. It usually takes around three months to get a new mould, which then has to be tested. For the help of bonus payment, they have good output and excellent productivity. The products are flexible according to the market condition and customer needs. Concept products and the whole design, manufacture, sales, distribution process is rather complex. The new product development department receive detailed drawings of the new products from the Design Office managed by Marketing department, which shows CDS pay much attention to match customer needs. For doing the whole things above, the unit cost of CDS product is high.
Variation: For Focus products , the vast majority of deliveries are to a small handful of customers. The size of each order is usually very large, with deliveries usually to customers own depots, which means the variation is stable, predictable. While for the more profitable Concept products, they are much more seasonal so
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