Operation Management

3821 Words Feb 12th, 2011 16 Pages
operation management

• Executive Summary Operation management is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services. Somerset furniture company’s global supply chain was getting lose its competitive edge and even faced shipments delayed by as much as 40%. The company prides itself on customer service and fears that late deliveries to its customers would harm its credibility and result in lost customers and excessive inventories. Somerset set up new strategy and tactics to meet the goals and improve the global supply chain. First, Somerset found out where the problems are and focused on its core competences that improve productivities and reduce
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Thus, Somerset needs to more focus on improving quality and reducing time and then we can define Somerset’s business strategy is providing exceptional higher quality, faster delivery.

• The detailed tactics to meet the goals or solve problems Operation managers are discovering that global supply chains have additional complexities that were either negligible or nonexistent in domestic operations. These complexities include language and cultural differences, declare customs, currency fluctuations, armed conflicts availability of trucking, increased transportation costs, and crucial lead times, and the increased need for trust and cooperation among supply chain partners. Furthermore, managers must be able to identify and analyze factors that differ from country to country that can impact the success of the supply chain, including local capabilities: financial, transportation, and communication infrastructures: governmental, environmental, and regulatory issues: and political issues. Somerset has to develop not only technology information system, sourcing supplies, materials but also relationship with suppliers such as Chinese workers, Chinese managers, trucking availability and customs inspection etc. There are several considerations to improve Somerset’s inefficiency in aspects of quality controls and time reduction, flexibility and cost.

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