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ZOOTER COMPANY Operations Management refers to the administration of business practices to create the highest level of efficiency possible within an organization, along with taking all necessary measures to do the safely and efficiently in terms of the duties completed, operations are the most diverse of all the company departments when you examine all the difficulties that come up when managing a tradition, it's easy to see why operations managers never get bored what do operations managers do and who are they? The vice president of operations, vice president of manufacturing, VP or director of supply chain operations is usually the leader of the operations function in a corporation and reports directly to the president or chief operating officer, Midlevel managers report to vice presidents and include manufacturing managers, operations managers, quality control managers, plant managers, and others below these managers are a variety of positions, such as quality specialist production analyst, inventory analyst, and production supervisor. These people perform a variety of functions analyzing production problems, developing forecasts, making plans for new products, measuring quality monitoring inventory, and developing employee schedules. Thus, there are many job opportunities in operations management at all levels of the company. In addition operations jobs tend to offer high salaries interesting work, and excellent opportunities for advancement. Many corporate CEOs today have come through the ranks of operations. For example the third president and CEO of Wal-Mart from January 2000 to January 2009 H Lee Scott, came from a background in operations and logistics The Zooter Company is a large electrical manufacturer. Recently, a new division of the company wat started and entirely new facilities were required in equipping the new plant, it was decided that for certain sub-assembly operations it would be desirable to have production employees seated at high stools instead of standing at their work benches. Eight hundred and fifty employees were to be so sested in the new plant After investigating many possible stool designs, the plant engineering department and the personnel department agreed on a certain style of stool that was easily described to the trade as "Carter's 816 or equal." Supply management requested bids from most major fabricators of this type of item and bids from nine suppliers were received more than ten days before the announced closing date. Several days before the final bid date these suppliers started to call the supply manager to see how they ranked. The supply manager answered their questions honestly with phrases ke You are not low bidder, but you are fairly competitive "You are not low bidder You are way out of line. "You are presently low bidder, but others seem to be revising their bids By April 23, the day originally chosen to close bidding every supplier except supplier Chad submitted at least one revised quotation (See Exhibit 1) In most cases, the prices quoted were substantially below the initial bids EXHIBIT 1 UNIT PRICES QUOTED BY SUPPLIERS Original bid April 23 bid May 7 bid Supplier A Supplier B Supplier Supplier D Supplier Supplier supplier G Supplier Supplier $55.92 44 70 39 48 45 36 43.86 38.70 39.00 42.78 48 60 $41.10 3750 39 48 35 88 38 58 37 92 35.400 39 60 41 34 $3408 31.52 3948 30.06 3190 29.88 30.50 31.50 33.18 maits low bid Lato in the afternoon on April 23, two suppliers asked for special permission to make a final bid on April 24. Since these two firms had been satisfactory suppliers of the Collier Company for years, the supply manager was anxious to give them any opportunity to feep their facilities operating in the depressed conditions that the characterized their industry. He gave them a special extension of one day. By the next afternoon, the supply manager had heard from three more firms who wanted the same privileges as the two concerns who had ro-bid. Firms kept asking for special extentions or equal bid privileges until the supply manager finally said to all who called that May 7 was the last day, he would entertain bids On May 7 several suppliers asked for special permission to bid late and were refused Supplier C still had not called in to change its original bid By May 7, the supply manager felt that all the firms were bidding at less than their total costs in order to keep their facilities operating at the highest possible volume in this slack period. He also felt that further price adjustments would be negligible. However, not wanting any supplier to go out of pocket on the order the supply manager asked the plant engineers to make a cost estimate on the chairs. The engineers estimated costs as follows Labor $12.00 Materials 13.62 Overhead: 150% of direct labor 18.00 Total cost (excluding profit) $43.62 Having satisfied himself that all suppliers were making some contribution to overhead st the quoted prices, the supply manager awarded the order to Supplier D who had done business with the Collier Company in the past and was considered one of the best fabricators in its field On May 9 two days after making the award, the supply manager heard from both supplier and supplier Supplier C was extremely angry that he had not been told of the acceptance of new bids. He said that he would write a letter to the vice president of material requesting a review of this entire deplorable situation. The have given him any in the TRT er wurd, the supply manager neara rom both support and support Supplier wat extremely angry that he manor Don Toort acceptance of new bids. He said that he would write a letter to the vice president of material requesting a review of this entire deplorable situation. The supply manager informed supplier that reasonable follow-up on the latter's part would have given him any information Wailable to other potential suppliers Supplier C was not at all satisfied with this answer and again expressed his intention to contact the vice president of material Supplier Fasked why the supply manager had requested bids at all of his mind had been made up all alone Supplier F said that the order should have gone to the lowest bidder who could provide the object desired. He said he could meet the specifications and could deliver to any schedule supplier D could meet. He demanded the order and when the supply manager informed supplier F that "final selection of the supplier is entirely my province," the supplier raged that he would spread the word to the trade and would write the Collier Company president who "should know of such favoritism and incompetence." He further stated that he even suspected that money had passed hands for this order In How Can Functions of the Operations Manager increase Productivity: "An operations manager takes og tasks designed to improve productivity and assist in the growth of the organization. Some of the functions directly affected by the operations Manager are purchasing, manufacturing, shipping, packaging, human resources, company finance, and computer support. To understand the job a production manager is required to do, you need to understand how the functions of an operations manager increase productivity Operations Managers are responsible for, and work in conjunction with many aspects of the company, their skill-set must reflect both a breadth and depth of knowledge from a myriad of areas. Root highlights several best practices used by operational managers to increase productivity decrease waste, and generate proft 1 Equipment Upgrades. One of the responsibilities of an operations Manager is to analyze work functions and determine what equipment upgrades would improve productivity 2. Communication Coordination-Improved communication within an organization can increase productivity. When information is sent from one department to another quickly and accurately, it can speed up the pace at which the company can operate and ensures that all necessary parties get the information they need to be productive 3. Revenue Collection - The operations manager is in charge of billing and revenue collection By analyzing revenue collection procedures the operations manager can create ways of collecting revenue quickly to make sure the company has cash on hand 4 Training - Operational managers work with the human resources department and departmental managers to develop more efficient ways for employees to do their obs Analyzing work functions is one of the many tasks that an operations manager performs each day, 10-05 4. Training- Operational managers work with the human resources department and departmental managers to develop more efficient ways for employees to do their jobs. Analyzing work functions is one of the many tasks that an operation manager performs each day Those working in operations management must engage in all types of critical analysis with a particular emphasis on effective decision making to meet the needs of stakeholders and the goals of the company. Bringing innovation and cutting-edge best practices to the areas of quality management, inventory control delivery, supply chain and information management, is what makes the difference between a marginally successful company and a company that dominates their share of the marketplace Questions 1; case study (50 marks) The supply manager was upset by these calls and did not enjoy his supper on May 9 1. What suggestions might you have made in the supply manager's handling of this matter? Dioedas (5 marka) 2. Do you think high stools are better than standing? Discuss (5 marks) 3. What are the consequences of working while on a high stools if any? Discuss (5 mana) 4. Who do you feel should have received the order and why? (5 marks) 5. What are the weaknesses inherent in the competitive bidding process? discuss (5 marks 6. Discuss benchmarking in relation to Zooter's tondering procedure that was used 5 markas 7. With regards to best practises in improving productivity, do you think production employees seated at high tools instead of standing at their work benches will add value? Discuss (5 marks) 8. in relation to defining ergonomics do you think that this idea equida teir business practice? Healthwiscuss (5 marks) 9. Discuss organational effectiveness as one of the best principle in relation to how Zooter tender was awarded 5 maksi 10. What wub Zooter's benefits if the new operation plant achieves its objective? 15 maria ZOOTER COMPANY Operations Management refers to the administration of business practices to create the highest level of efficiency possible within an organization, along with taking all necessary measures to do the safely and efficiently in terms of the duties completed, operations are the most diverse of all the company departments when you examine all the difficulties that come up when managing a tradition, it's easy to see why operations managers never get bored what do operations managers do and who are they? The vice president of operations, vice president of manufacturing, VP or director of supply chain operations is usually the leader of the operations function in a corporation and reports directly to the president or chief operating officer, Midlevel managers report to vice presidents and include manufacturing managers, operations managers, quality control managers, plant managers, and others below these managers are a variety of positions, such as quality specialist production analyst, inventory analyst, and production supervisor. These people perform a variety of functions analyzing production problems, developing forecasts, making plans for new products, measuring quality monitoring inventory, and developing employee schedules. Thus, there are many job opportunities in operations management at all levels of the company. In addition operations jobs tend to offer high salaries interesting work, and excellent opportunities for advancement. Many corporate CEOs today have come through the ranks of operations. For example the third president and CEO of Wal-Mart from January 2000 to January 2009 H Lee Scott, came from a background in operations and logistics The Zooter Company is a large electrical manufacturer. Recently, a new division of the company wat started and entirely new facilities were required in equipping the new plant, it was decided that for certain sub-assembly operations it would be desirable to have production employees seated at high stools instead of standing at their work benches. Eight hundred and fifty employees were to be so sested in the new plant After investigating many possible stool designs, the plant engineering department and the personnel department agreed on a certain style of stool that was easily described to the trade as "Carter's 816 or equal." Supply management requested bids from most major fabricators of this type of item and bids from nine suppliers were received more than ten days before the announced closing date. Several days before the final bid date these suppliers started to call the supply manager to see how they ranked. The supply manager answered their questions honestly with phrases ke You are not low bidder, but you are fairly competitive "You are not low bidder You are way out of line. "You are presently low bidder, but others seem to be revising their bids By April 23, the day originally chosen to close bidding every supplier except supplier Chad submitted at least one revised quotation (See Exhibit 1) In most cases, the prices quoted were substantially below the initial bids EXHIBIT 1 UNIT PRICES QUOTED BY SUPPLIERS Original bid April 23 bid May 7 bid Supplier A Supplier B Supplier Supplier D Supplier Supplier supplier G Supplier Supplier $55.92 44 70 39 48 45 36 43.86 38.70 39.00 42.78 48 60 $41.10 3750 39 48 35 88 38 58 37 92 35.400 39 60 41 34 $3408 31.52 3948 30.06 3190 29.88 30.50 31.50 33.18 maits low bid Lato in the afternoon on April 23, two suppliers asked for special permission to make a final bid on April 24. Since these two firms had been satisfactory suppliers of the Collier Company for years, the supply manager was anxious to give them any opportunity to feep their facilities operating in the depressed conditions that the characterized their industry. He gave them a special extension of one day. By the next afternoon, the supply manager had heard from three more firms who wanted the same privileges as the two concerns who had ro-bid. Firms kept asking for special extentions or equal bid privileges until the supply manager finally said to all who called that May 7 was the last day, he would entertain bids On May 7 several suppliers asked for special permission to bid late and were refused Supplier C still had not called in to change its original bid By May 7, the supply manager felt that all the firms were bidding at less than their total costs in order to keep their facilities operating at the highest possible volume in this slack period. He also felt that further price adjustments would be negligible. However, not wanting any supplier to go out of pocket on the order the supply manager asked the plant engineers to make a cost estimate on the chairs. The engineers estimated costs as follows Labor $12.00 Materials 13.62 Overhead: 150% of direct labor 18.00 Total cost (excluding profit) $43.62 Having satisfied himself that all suppliers were making some contribution to overhead st the quoted prices, the supply manager awarded the order to Supplier D who had done business with the Collier Company in the past and was considered one of the best fabricators in its field On May 9 two days after making the award, the supply manager heard from both supplier and supplier Supplier C was extremely angry that he had not been told of the acceptance of new bids. He said that he would write a letter to the vice president of material requesting a review of this entire deplorable situation. The have given him any in the TRT er wurd, the supply manager neara rom both support and support Supplier wat extremely angry that he manor Don Toort acceptance of new bids. He said that he would write a letter to the vice president of material requesting a review of this entire deplorable situation. The supply manager informed supplier that reasonable follow-up on the latter's part would have given him any information Wailable to other potential suppliers Supplier C was not at all satisfied with this answer and again expressed his intention to contact the vice president of material Supplier Fasked why the supply manager had requested bids at all of his mind had been made up all alone Supplier F said that the order should have gone to the lowest bidder who could provide the object desired. He said he could meet the specifications and could deliver to any schedule supplier D could meet. He demanded the order and when the supply manager informed supplier F that "final selection of the supplier is entirely my province," the supplier raged that he would spread the word to the trade and would write the Collier Company president who "should know of such favoritism and incompetence." He further stated that he even suspected that money had passed hands for this order In How Can Functions of the Operations Manager increase Productivity: "An operations manager takes og tasks designed to improve productivity and assist in the growth of the organization. Some of the functions directly affected by the operations Manager are purchasing, manufacturing, shipping, packaging, human resources, company finance, and computer support. To understand the job a production manager is required to do, you need to understand how the functions of an operations manager increase productivity Operations Managers are responsible for, and work in conjunction with many aspects of the company, their skill-set must reflect both a breadth and depth of knowledge from a myriad of areas. Root highlights several best practices used by operational managers to increase productivity decrease waste, and generate proft 1 Equipment Upgrades. One of the responsibilities of an operations Manager is to analyze work functions and determine what equipment upgrades would improve productivity 2. Communication Coordination-Improved communication within an organization can increase productivity. When information is sent from one department to another quickly and accurately, it can speed up the pace at which the company can operate and ensures that all necessary parties get the information they need to be productive 3. Revenue Collection - The operations manager is in charge of billing and revenue collection By analyzing revenue collection procedures the operations manager can create ways of collecting revenue quickly to make sure the company has cash on hand 4 Training - Operational managers work with the human resources department and departmental managers to develop more efficient ways for employees to do their obs Analyzing work functions is one of the many tasks that an operations manager performs each day, 10-05 4. Training- Operational managers work with the human resources department and departmental managers to develop more efficient ways for employees to do their jobs. Analyzing work functions is one of the many tasks that an operation manager performs each day Those working in operations management must engage in all types of critical analysis with a particular emphasis on effective decision making to meet the needs of stakeholders and the goals of the company. Bringing innovation and cutting-edge best practices to the areas of quality management, inventory control delivery, supply chain and information management, is what makes the difference between a marginally successful company and a company that dominates their share of the marketplace Questions 1; case study (50 marks) The supply manager was upset by these calls and did not enjoy his supper on May 9 1. What suggestions might you have made in the supply manager's handling of this matter? Dioedas (5 marka) 2. Do you think high stools are better than standing? Discuss (5 marks) 3. What are the consequences of working while on a high stools if any? Discuss (5 mana) 4. Who do you feel should have received the order and why? (5 marks) 5. What are the weaknesses inherent in the competitive bidding process? discuss (5 marks 6. Discuss benchmarking in relation to Zooter's tondering procedure that was used 5 markas 7. With regards to best practises in improving productivity, do you think production employees seated at high tools instead of standing at their work benches will add value? Discuss (5 marks) 8. in relation to defining ergonomics do you think that this idea equida teir business practice? Healthwiscuss (5 marks) 9. Discuss organational effectiveness as one of the best principle in relation to how Zooter tender was awarded 5 maksi 10. What wub Zooter's benefits if the new operation plant achieves its objective? 15 maria