The market segments of large companies and different businesses

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Most large companies have some different businesses so its market segments are abundant. Therefore, these firms must plan business strategies for each business clearly to help themselves manage better. There are three types of Business strategy include customer intimacy, product leadership, operation excellence. Each of business strategy needs to have a particular operation strategy to perform easier work and obtain higher efforts. Operations Mission is an important function that is original to develop a new product because if we achieve a good operation mission, I am sure that we will be successful in that business. For example, Iphone 4G has been sold by Vinaphone, Viettel, and Mobiphone corporations and it caused a big craze in consumers in Vietnam. But to make this, firstly, we see that these corporations imported Iphone 4G with small amounts and sold lower prices than very much products that imported external flow. This is operations mission derive from the particular business strategy of these firms and it has achieved the first success for them. In general, Operations mission of a firm should be aligned with its business strategy. Furthermore, Operations mission will help to specify distinctive competence to be able to compete with other companies in perform business strategy.

Reference list

Schroeder, R.G. (2011). Operations management: Contemporary concepts andcases (5th ed.)

http://vnexpress.net/GL/Kinh-doanh/2010/10/3BA21246/

http://vnexpress.net/GL/Kinh-doanh/2010/10/3BA2121D/

Question II

As Figure 3.5 House of Quality (Schroeder, R.G. (2011). Operations management: Contemporary concepts and cases (5th ed.), P.50) show that House of Quality (HOQ) include informative components as Customer attributes (CAs), Engineering Characteristics (ECs), Trade-offs, competitive evaluation and Target value. We can see that it is a relationship matrix to analyze and assess customers what they need and how suppliers must improve about their productions to satisfy their consumers. The first see on the left side of the matrix in Figure 3.5, CAs offers the voice of customers about attributes of production through market research. After we see on the top of the matrix, it is engineering characteristics that must be measurable, specific and are closely related to the final design specifications for the product to suit with customers attributes which customers offered in process of market research. Manufacturers will base on matrix to find out the nature of the relationship between each particular CAs and the ECs by conducting engineering tests or using generally understood relationships. Otherwise, on roof of matrix also indicates how each EC is related to other ECs, so it is possible to study any of the trade-offs that may be required between one EC and another. Finally, on the bottom of the matrix we show other competitors through grades to determine selection of new design for the most eligible production by offering the target value. The target value is the important factor that manufacturers will design new products base on it to satisfy customers and compete with other suppliers. In general, House of Quality is a tool to be embodied customers attributes into engineering characteristics to design product.

Reference list

Schroeder, R.G. (2011). Operations management: Contemporary concepts andcases (5th ed.)

Question III

Both the concepts of Plant within a Plant (PWP) and Mass Customization can apply to your service organization. The first, the concept of PWP applies effectively if performing two or more other services of different facilities or other parts, with different workforces, and appropriate service levels. This make for characteristics of these services to be able to highlight and don't be mixed. It has mean that service operations can be focused by assigning different types of service products to different facilities. For example, when Iphone 3GS product of Apple corporate sold in Vietnam market through three distributors include Vinaphone, Viettel and Mobilephone, they can't apply these distributors for selling the same price on market. They must allow distributors dependently sell products with other price policies base on characteristics of each distributor. From here, each distributor will segment these polices into two different facilities or PWPs with separate workforces and suitable service levels for each type of policy to compete with other competitors. On the other hand, the concept of Mass customization also can apply to service organization effectively as performing for modular design (ex: fast food), modern technologies, fast changeover (ex: supermarket, airlines industry and bank industry, etc.). In these fields, we can apply software to collect and specify requirements of customers fast and satisfaction in short time. As above example, we can see that demand of customers about Iphone 3GS in Vietnam market is massive. When Apple corporate decide to allow their distributors can represent other services in the same product to serve for many other customers with appropriate cost base on economy of their country and so their product can sell with the highest volume.

Reference list

Schroeder, R.G. (2011). Operations management: Contemporary concepts andcases (5th ed.)

http://dantri.com.vn/c76/s76-420598/dat-hang-nha-mang-nhap-iphone-3gs-dot-3.htm

Question IV

As Figure 4.5 Product-process Matrix (Schroeder, R.G. (2011). Operations management: Contemporary concepts and cases (5th ed.), P.72) describes the dynamic nature of product and process choices. On the product dimension (horizontal) of the matrix is the life cycle of a typical product, ranging from a unique, one of a kind product to a high volume, high standardization and commodity. This means that a product evolves from the left side to the right side of matrix. On the process dimension (vertical) of the matrix the various processes are represented, ranging from the project to a continuous process. It has also a life cycle similar to the product life cycle, evolving from top side to bottom side. Therefore, most organizations use this matrix to offer the strategic choices for developing their firm and can position themselves on the diagonal of the matrix that represents a logical match between the product and the process. This is major cause that achieve many benefits for firms where apply this matrix. For example, 24 hour noodle shops in Vietnam, if they still sell follow on traditional methods, they only can open one or two shops and sell with stable amount daily and always get a low volume job shop. So shop must change process from simple to modern produce by setting up a modern product line that make all of noodle shops always keep good flavors and stable quality. Moreover, it will have many customers to their product who don't have to wait for a noodle. So they can expand shops to many countries on the world. In general, the Product process matrix can help make production more effectively. In fact, there are some companies where don't select this matrix, they choice some another methods but still can get profitable for their firm. For example, the NEM fashion corporate, they only produce small clothes amount of each product of women with particular designs that they sell with higher prices. So their products sell with low volume and serve for customers who have high revenue but it still achieves very much benefit for their firm in market niche or private market.

Reference list

Schroeder, R.G. (2011). Operations management: Contemporary concepts andcases (5th ed.)

http://www.mindtools.com/pages/article/newSTR_50.htm

Question V

Lean thinking is a way of thinking about processes at work or sometimes even processes at home. It includes five elements that help to deliver value to customers efficiently. The first element is to specify exactly a product or service which create value. This means that make how customers have to be willing to pay for products or services what they want to use. The second element is to identify, study, and improve the value stream for each product or service. The firm must always think about a good way to create larger value stream for their customers as they can identify all the processing steps and tasks of product or service from beginning to end, its purpose is to eliminate the non value adding processing steps and tasks. The third factor is to design the flow to avoid waste. It is the best process of manufacturing a product or service to save cost for their customers. The fourth factor in lean thinking is to produce only what the customer pulls. This means that the firm only produces goods which customers want and need. The final element is to strive for perfection. The customers always need changes and tend to perfections of product so the firms when producing have to find ultimate perfections and improve processes of producing goods or services to get this for their customers. In general, goal of five elements in lean thinking is tend to improve costs, qualities, and outputs in businesses. As the Chief Operations Officer, I will implement lean thinking in my manufacturing organization because my company operates business base on new tobacco breed research and development. If I apply five elements in lean thinking to manufacture product, it will save costs to avoid waste in research many projects which it can't apply in fact so needs of customers is unnecessary for these breeds. I will focus in improving breeds that customers need to have higher outputs and qualities. It will get large value stream for firm as well as firm's customers.

Reference list

Schroeder, R.G. (2011). Operations management: Contemporary concepts andcases (5th ed.)

Question VI

Business process reengineering (BPR) is an important factor that identifies key processes required to meet the customers' needs. Therefore, major business processes are redesigned and integrated to better serve consumers. BPR can create large changes about internal processes of production process, specially, improve about quality and quality control. Otherwise, BPR is not only affecting a small part of their business that affects to the entire system. A quality control manager applies BPR that can bring tremendous efficiencies for enterprises on cost, quality, service and speed. Applications of BPR can help your business get a competitive advantage towards existing competitors and create new competitive position by improving the whole technology processes of enterprise at present. This is my reasons that I will convince top management apply BPR for my business in getting benefits and applicability to firm's operations. So BRP is used for radical redesign of business process that aid to improve small steps in many simple processes and apply new technologies in firm's production. When we apply BRP have to base on four principles of radical redesign include: (1) Organize around outcomes, not tasks. This means that customers' services were improved better. (2) Have people who do the work process their own information. (3) Put the decision point where the work is performed, and build control into the process. (4) Eliminate unnecessary steps in the process. Although BPR has gained outstanding results but in contrary it also has some failures that we need prevent when apply them. The failures include lack of top management support, a narrow implementation effort, the assignment of the wrong people to the project or lack of changes in incentive systems.

Reference list

Schroeder, R.G. (2011). Operations management: Contemporary concepts andcases (5th ed.)

Question VII

The seven tools of quality include the cause and effect diagrams; check sheet; control chart; histogram; Pareto chart; scatter diagram and flow chart. As the newly appointed operations manager, I will apply each tool of quality to service organizations as following: the first is the cause and effect diagrams that indicate the causes of a certain event. Its purpose is product design, quality defect inhibition and to identify potential factors causing an overall effect. Cause-and-effect diagrams can show important relationships among various variables and the possible causes provide additional insight into process behavior as well as service organizations. Causes identify sources of variation include people, methods, machines, materials, measurements and environment. The second tool of quality is check sheet that is a simple document used by collecting data in real-time and generated data. The document is typically a blank form that is designed for the quick, easy, and efficient recording of the desired information, which can be either quantitative or qualitative. Check sheet has five types as classification, location, frequency, measurement scale and check list. Control chart also is one of seven tools of quality that determine whether or not a manufacturing or business process is in a state of statistical control. The goal of control charts is to allow simple detection of events that are shown in actual process change. Otherwise, Histogram is a graphical representation, showing a visual impression of the distribution of experimental data. Histograms use to draw density of data that estimate probability density function of variables. The fifth tool of quality is Pareto chart that consists of both bars and a line graph, where individual values indicated in descending order by bars, and the cumulative total indicated by the line. Its purpose is to highlight the most important among a set of factors. On the other hand, scatter diagram is a type of mathematical diagram using Cartesian coordinates to display values for two variables for a set of data. The final tool of quality is flow chart that represents a process to show the steps and order by connecting with arrows. Its goal is to use in analyzing, designing, documenting or managing a process in various scales. In general, all of tools of quality are suitable for people with little formal training in statistics and can be used to solve the vast majority of quality-related issues that it relates to directly service organizations to serve well for firm's customers.

Reference list

Schroeder, R.G. (2011). Operations management: Contemporary concepts andcases (5th ed.)

http://en.wikipedia.org/wiki/Seven_Basic_Tools_of_Quality

Question VIII

Total Quality Management (TQM) is a management concept that reduces the defects produced during the manufacturing or service process, increase customer satisfaction, streamline supply chain management, aim for modernization of equipment and ensure workers have the highest level of training. Total Quality Management is often associated with the development, deployment, and maintenance of organizational systems that are required for various business processes. The purpose of TQM is to improve quality by ensuring conformance to internal requirements. While Six Sigma is a newer concept. Six Sigma is a business management strategy that improves the quality of process outputs by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes. It uses a set of quality management methods as statistical methods, and creates a special infrastructure of people within the organization who are professionals in these methods. Besides, Six Sigma helps organizations in reducing operational costs by focusing on defect reduction, cycle time reduction, and cost savings. Six Sigma focuses on improving quality by reducing the number of defects and impurities. We can see that both Six Sigma and TQM only differ about the approach but its end goals is to produce better quality products. As a quality control manager, I also see that if applying Six Sigma in quality control, it has many stronger points but it still has some limits that sometimes TQM will help for producer solve these problems. Because Six Sigma only identify errors and then removing it whereas TQM help producers offer appropriate internal requirements in manufacturing or service process to prevent errors that can happen. This is major reason that I would convince the Chief Operating Officer (COO) use in combination between Six Sigma and TQM as quality control tools so I am sure that it will achieve many benefits for my company.

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