The case study of Armour Plastics Company by Danilo Raya highlights the challenges of the company$$s operations across various functional domains and the significant improvements led by Catalino $$Cat$$ Avellana, who joined the company as Operations Manager in $2008.$ Cat$$s explicit mission was to drive improvement on APC$$s operations.

Armour Plastics Company $($APC$),$ a family$-$owned enterprise established in $1957,$ is one of the leading contract manufacturers of plastic bottles situated in Taguig, Philippines. They specialize in the production of small plastic bottles, particularly in the Cosmetics and Health and Beauty Aids $($H&BA$)$ segments, APC caters to an array of esteemed clients from local household brands to multinational companies.

However, despite its established existence and clientele roster, APC struggled with several challenges that significantly impacted its operational efficiency and financial sustainability. Prior to the transformative leadership Cat, APC found itself trapped in managerial incompetency, escalating costs and resource misallocation, leading to recurrent financial losses and underutilization of its manufacturing facility.

This paper aims to examine in detail these challenges and the transformations of APC operations in relation to the concepts and theories of Operations Management. This paper also aims to show how effective operations management strategies can help transform a company.

Challenges in APC Operations

APC encountered several challenges across its operational domains. The company's lack of a cohesive strategic approach hindered the effective resolution of its competing priorities. Financial constraints compelled APC to operate with outdated technology and processes, significantly impacting its operational efficiency and productivity. Before integrating CAD$/$CAM capabilities, the company relied on labor$-$intensive molding processes, resulting in prolonged cycle times. Furthermore, APC operated with old machinery operating at half the capacity of competitors, leading to noticeable inefficiencies in their slack times.

Inventory management posed another significant challenge for APC, particularly with excessive buffer stocks due to customer demands. Additionally, dedicating warehouse space for extended storage of finished goods for specific clients occupies valuable warehouse space, hindering the efficient utilization of space and possibly impacting the company's own safety stock management.

Workforce$-$related issues were apparent within APC, marked by overstaffing, redundant roles, and management roles dominated by family members. Following downsizing, the company adopted a chase strategy by employing contractual workers during seasonal peaks and uptrends. However, managing and motivating these contractual employees posed a significant challenge.

APC's neglect of quality standards resulted in persistent issues, notably the presence of excess plastic protrusions in their finished products, indicating insufficient attention to quality control measures.

Moreover, the Management Team lacked a unified understanding of optimizing supply chain processes from end to end. Given the industry's intense competition, operational efficiency stood as a crucial determinant of APC's competitive edge and profit margins. Logistics and Distribution c$.$ Identify six $(6)$ principles$/$concepts and explain each of the theoretical scopes and purposes.

d$.$ Apply each of these six $(6)$ principles$/$concepts to the organization$$s operations, clearly explaining and demonstrating evidence these principles will improve the operation.