Ups Essay

1315 WordsOct 12, 20126 Pages
UPS Introduction Operations Management is a vital and fundamental key to any successful business. This form of management helps a company become more efficient, effective, and most importantly, customer satisfying. For our groups Business analysis, we studied the operational tools and ideas implemented by United Parcel Service (UPS). UPS is the world’s largest package delivery company and is always on the cutting edge of efficient delivery. Within our research of UPS, we studied aspects of facility layout, logistics, and demand management. Along the way we relate what we found with our classes’ operations book. History Now a billion dollar company, UPS had a very humble beginning. In 1907, a young man in Seattle, Washington…show more content…
Assembly line balancing is “the problem of assigning all the tasks to a series of workstations so that each workstation has no more than can be done…. and so that idle time across all workstations is minimized” (Jacobs, Chase, & Aquilano, 2009, p.228). Since machines can be synced with one another, processes flow in a consistent, calculated manner. Having a facility laid out in this manner allows for high efficiency, because packages are continuously being processed through the system at high speeds and low costs. Demand Management Running such a large company can come with many obstacles and challenges. For a company like UPS, these challenges can come with the need to forecast the projected demand for shipping. UPS has gotten every process it does down to the smallest detail, and is practically a science. They can accurately predict the volume they will be shipping, whether it is daily, weekly, or yearly; sometimes so accurate, the forecast is within a few pieces. When forecasting volume, UPS takes many things into consideration. UPS looks at the previous year’s volume shipped on a certain day, and strangely is very accurate to the volume being shipped on the current day. The bigger companies that ship through UPS tend to ship very consistently, allowing for UPS to be more accurate in their forecast. Taking the past volumes into consideration, logistics and planning people look at how
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