Operations Management Issues Delta Syntetic Fibres
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Delta synthetic fibre is an international company and also a successful company as well. Over the years the delta synthetic fibre had been heavily dependent on one and only range product which is based on the polymer " Britlene". Although Delta Synthetic Fibre is a small industry, but the industry is technically successful company. Britlene range was produced at three of the companies which is Teesside in United Kingdom, Hamburg in Germany and Chicago in Unites States of America. Operation management can be defined as the activity of managing the resources which are devoted to the production and delivery of products and services. Based on authors study, the main good issues that had happen in delta synthetic fibre in the terms of operations management is the Delta Synthetic Fibre had been lucky by having only one product range to concentrate on which it is meant that the early parts of the delta synthetic fibre manufacturing process do need to cope with a little variety. Secondly, the other good issue that delta synthetic fibre tackle on is the developing a new product range which is Britlon with the idea's and quality of heat resistant and electrical insulation. Thirdly, earnings growth likely to be gtreatest in continental Europe and USA as well although the market for Britlene range in UK declined over 60 percent in 1998 to 40 percent in 2004.
2. Identify the main product based issues at delta Synthetic fibre, and outline the process to identifying what products that the business should produce.
Based on the issues at delta synthetic fibre, author believed that the main product that benefits the delta synthetic fibre is the Britlene. This was prove over the past eight years in the late of 1990s when the delta synthetic fibre industry had heavily dependent on one single range of products based on which is britlene until competitor products eroded delta synthetic fibre's traditional market.
Here author would like to highlight on the process to identifying what products that the delta synthetic fibre should produce. Firstly, the delta synthetic fibre will need to perform the basic fundamental of operation management system which is the three main key for the process to be complete. The basic fundamental of operation management system is input, transformation and outputs.
Input ƒ transformation ƒ output
Input consists of capital, technology, energy, experience, materials, and customer information. Transformation process is where act on behalf of as in manufacturing operations, as in transportation operation, as in retail operations, as in health care, as in entertainment and act on behalf as informational in communication. Output, is where consist of tangible, intangible, physical and psychological benefits.
Based on the analysis at delta synthetic fibre industry, author found out that delta synthetic industry had been success on making profit for britlene over the past eight years in the late of 1990s. Britlene products had achieved profits for 97 percent of total revenue while the other three percent came from the sale of licenses. However, the sales of delta synthetic fibre had started to fall off in 2004 as the competitor products eroded delta synthetic fibre industry's traditional market. Here the input playing a role where the technology, energy, experience, materials need to be adapt as well in order to gain the trust and confidence of the consumers. From there, the delta synthetic fibre had come out with the idea of develops a new product range around the new polymer which is known as Britlon.
Once the process of input is done, then it continues to process for transformation. Here the process of transformation is playing the role whereby those materials, information, technology, experience and energy being transformed to get the valuable output. Here all those inputs which is manpower, information, experience, energy and etc will be combine together to process the output.
Once the process transformation is done, output is ready to satisfy the needs and wants of the customer.
3. Critically analyse and evaluate how Delta Synthetic Fibres implementing the "sustainable" strategies and techniques into its global business situation, highlighting typical difficulties that occurred, and how it can overcome them to achieve a successful outcome to support its competitive operations strategy.
According to author's analysis, there are three legs of sustainability which is social, environmental and economic. Why does social sustainability environmental, and economic is important? Urban areas does rely on the community's hard infrastructure which is the electrical, gas and water utilities and other aspects of the physical structure that define the communities form. In the past decade, there has been a growing concern with the environmental sustainability of the community. This has significant implications for the design and operation of the hard infrastructure ecological management of storm water and sewage; energy, water and etc.
What does it meant with community here? Community is where the people and the placed that they lived. It is as much a social environment as a physical environment. Thus, communities must not only be environmentally sustainable, they must also be socially sustainable.
However, when it comes to sustainability, both social and environmental is significant to realize that both social and environmental need a structure of economic action which is well-matched and not critical of both ecological or social of which there are a element, and upon which we depend for people's physical condition, well-being and value of living.
Human development and the accomplishment of individual talent need a shape of economic action that which is environmentally and socially sustainable for coming generation. (CPHA, 1992)
Talk about economic, economic growth can also donate either reduce the social resources (Osberg, 1990). People may argue that the shape of economic progress champion by Thatcher and Reagan has been publicly indefensible, reduce human and social resources in addition to the spoil that it has bent towards the natural surroundings.
The idea of socially sustainable growth as well as socially sustainable town progression (1992) did acknowledged a lesser amount of awareness compare to the idea of environmental sustainable growth.
Author would argue the meets fundamental requirements for foodstuff, protection, teaching, employment, earnings and secure livelihood and working environment, enhance the physical, mental and social well-being of the residents, conserve our educational and biological inheritance, thus intensification the common sense to our olden times and situation, and is inhabitable, involving "the form of the city's public places and city dwellers' social, emotional and physical well-being" (Lennard and Lennard, 1987)
Economic sustainability is normally used to recognize a variety of strategy which it is easy to utilize obtainable resources to most excellent benefits. The plan is to encourage practice of the resources which are efficient and accountable, and probable to give long-tem reimbursement. In the term of a business operation, economic sustainability is mainly for using resources so that the company continues to utilize over the years, while time after time recurring a profit.
In the majority cases, the gauge of economic sustainability is obtainable in financial terms. The value of property and resources in dollar statistics is ordinary, as it is capturing the sum of return generate by the well-organized exercise of individuals resources. This is to assist in identifying areas of the operation in which resources are not being utilized in the the majority well-organized way, and obtain the ladder to right the condition. Therefore, the planned change to the process are measured in conditions of their on the whole result on the manufacture flow, make it probable to identify some potential difficulty afterward in the procedure prior to the changes which are in reality implemented. By that, it means engage in a tactic identified as cross-sectoral harmonization, which involves identify what force to the changes in a single region of the operation contains on following phases of the manufacture procedure.
A real economic sustainability encourages the accountable employ of capital which involves both making sure so as to the industry is creation income, but if there is operation which is not creating environmental concerns that might cause damage to the sense of balance of the local ecology. As people is aware of the crash of the operation on the local the public, the industry is clever to decide raw materials which is environmentally welcoming, and plan a squander removal tactic which does not spoil the local environment. In the long run, notice to these types of information that has the possible to boost the communities asset in the sustained operation of the commerce, and recover the odds for left over a feasible operation in favor of a longer period of time.
Although the idea of economic sustainability is simple, there is a possible obstacles that might be found in dissimilar industry. Resistance to amend can frequently direct to a fewer than well-organized exercise of obtainable capital. A breakdown to path operating cost and give good reason for expenditures will also have unfavorable belongings on the long-term constancy of the industry and limit the potential for economic sustainability. For this reason, industries at times work with outside consultants who can assess the business operation with comparatively with a little bias and point out what needs to be done to improve the sustainability of the operation.
As the there is economic sustainability, the objective is to set up productivity in excess of the long-term. A gainful commerce is a great deal probable to stay strong and carry on functioning year to the year. From this viewpoint, economic sustainability be able to see like a instrument to make sure the industry do contain a prospect and continue to donate to the monetary wellbeing of the owners, the workers, and to the the public where the commerce is situated.
While in the case of delta synthetic fibre, Liam Flaherty, (vice president of operation in Teesside) comes out with the statement in the part of acquiring Britlon capacity where Liam Flaherty consider that waste of the man power and physical resources that need to invest and he believes expansion could take place in one or more of the existing sites. According to the research, there is higher than average general unemployment at Teesside, while the rate for skilled and semi skilled workers is low. Here the, environmental, economic and social sustainable take place in when unemployment rate high in Teesside. Once the unemployment rate is high, the communities have no work to care for. It indirectly, slow down the process of money flow in the country as well. In gives a bad impact when we discuss about growth of economic in the term of economic of scale. The money doesn't go in to government. From there all the products, even facilities rate going to be increased as well. It also effects the communities in the term of basic needs such as food availability, equitable access to work and education, communities design that enhances social communication and contribution, and way of decreasing living costs, especially for low income groups. In the term of production cost, it really worries as the cost of productivity is higher at both Hamburg and Chicago plant, it indirectly effects the Teesside lines were relatively old and prone to breakdown.
The strategies that going to take place in the global business situation are first identify the market mix is where the delta synthetic fibre should specify the main products. Secondly, delta synthetic fibre should think of how they would develop competitive advantage in total offering to its customer. Thirdly, where the segmentation take place. Here the delta synthetic fibre should segmentise into groups such as children's, adult, women, men and identify the needs of the particular group. Fourthly is the portfolio. Then the goals on what specific strategic objectives should be set by delta synthetic fibre and the final attempt is the mission which is focus on the vision on what delta synthetic fibre industry going to be and identify the values that going to share with people around as well.
A very good example of sustainable strategies and techniques in Malaysia is the eliminating plastics in totally. This is very clear example to determine the sustainable strategies and techniques. Eliminating plastics in totally had been introduced by Penang government itself. Penang government found out that there are much benefits the country and the sustainable environments as well. Let's have a look on social, environmental and economic wise; by eliminating plastics in totally the Penang government had preventing green house effects. The government does not need to chop down more rubber trees to produce plastics begs. By preventing the trees to chop down, it creates a good atmosphere, fresh oxygen as well. Indirectly, Penang government is protecting flora as well. The penang government also prevent from globalization to be occurred.
As a conclusion, author believed that by implementing the process of input, transformation and output as well as by giving concentration on sustainable in the term of economic, social, environmental, delta synthetic fibre would be overcome the difficulties and archieve the objective of the delta synthetic fibre industry.
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