Table of Contents
1.0 Stimulation Game Report 3
2.1 introduction 4
2.2 Operations in practice – The impact of operational decisions in the manufacturing context 4
2.3 operations performance – The impact of operational decisions in the manufacturing context 4
Section 3 – Undertaking supply chain management responsibilities 5
Section 3.1 – Supplier Relationships 5
Section 3.2 – Quality within the supply chain 5
Reference List 7
Appendix 8
1.0 Stimulation Game Report
2.1 introduction
The simulation game is based on a business which accepts contracts varying in quantity, quality and delivery time producing different types of clothing and us as the user make all the fundamental decisions in order to make the most money and increase reputation, which is stated under ‘Net Worth’ and ‘Stars’ represent the businesses reputation. The specific role that the user plays within the game is ‘operations manager’ making the user in charge of operations such as choosing delivery time, quality of supplier, training workers and what machinery is in use.
2.2 Operations in practice – The impact of operational decisions in the manufacturing context
Operational practices are the activities that a manager carries out as his day to day activities(reference). One of the theories which applies in the game is the conversion process. The conversion process “represents the conversion of a specific set of input resources into the specific output” (Brennan, 2011). In this case, the raw materials were transformed into goods such as ‘Slacks’. A fundamental operational practice is implemented in the game. For instance, the production process is demonstrated in the game when transforming inputs such as cotton into outputs such as T-Shirts, this was transformed through the use of machinery when sewing items. Which is the sequence of productions activities that the business undertakes to get the end product to the customer. For instance, in the game it included ordering supplies with variations on quality, delivery times and lead times based on contract specifications.
Furthermore, the theory on machine capacity and efficiency levels determines how much production can be utilised. For instance, the capacity levels in the factor were at 100% when 4 products were being made at once, this slowed down overall production. However, there are disadvantages to having high capacity utilization which I experienced as I couldn’t make the products which meet the contracts in turn resulted in delivery times not being meant clients dissatisfied. Variety of products is practiced/offered to meet customer demands and tastes.
2.3 operations performance – The impact of operational decisions in the manufacturing context
Over the duration of playing the game I was able to practice operations and grasp a better understanding (see figure 1). This was a result of taking into consideration the ‘Capacity Utilisation’ where resources were the slowest and all workers and machines were running at 100% utilization. This reduced the remaining process as products were being manufactured at a faster rate. This can be seen as ties were being produced at a rate of 300 rather than 200 a week when at full utilization. When doing the simulation again I would make sure that not all operations are running at 100% and instead prioritise by delegating the resources to the contracts which is near its due date.
Moreover, I could’ve expanded my resources through training and other methods which would ease the production workload by employing more staff or making them more efficient. However, at the time I did not employ more workers or provided training due to the high costs associated. This recommendation can be seen in Taylors Theory on Scientific Management where “managers spend their time planning and training, allowing the workers to perform their tasks efficiently” (Mindtools.com, 2012).
Section 3 – Undertaking supply chain management responsibilities
Section 3.1 – Supplier Relationships
“Supplier Relationship Management (SRM) is first and foremost an approach used for engaging with suppliers on a level that reflects the priorities of the customer organisation and how best these needs can be achieved” (Anon, 2017). Having a relationship is very important as it can get the business discounts on prices and other benefits such as longer trade credit periods, increased efficiency and custom orders, to have these benefits the supplier must see the business as a valued customer. A strategy which can ensure a long-term relationship with a supplier is customer loyalty as the supplier will benefit from the firm’s commerce and will try and ensure the business only buys from the supplier through various methods which were mentioned prior.
A strategy to ensure a short-term relationship is to ensure you are a ‘Valued Customer’ so payments towards the supplier must be consistent and not fall behind, “Provide adequate lead times” (Reiss, 2010) and personalise the relationship for instance, invite them to strategy meetings. If these strategies are adopted correctly then the business and supplier can both have a long or short depending on what is desired, beneficial relationship which rewards both parties. This can even improve the ‘Production Process’ and efficiency of the business by ensuring the quality of the stock is improved and the delivery is on time, cutting down times from choosing what supplier to buy from and making sure the customers are satisfied. This was demonstrated in the game for when orders arrived in week 3, where ties were due in 2 weeks, the short term supplier was selected due to its low cost and minimal holding time which is an example of the Just-In-Time process.
Section 3.2 – Quality within the supply chain
“Supply Chain Management is defined as the management of materials as well information flows both in and between links in the chain; which include vendors, manufacturing plants, and distribution centres” (Robert Johnston, 1994). Quality is an important factor as it determines whether the customer is satisfied or not, overall business reputation, gain customers based on recommendations, “maintain or increase market position and reduce liability risk” (Graphic Product Info, 2017). TQM (Total Quality Management) is demonstrated in the game with the inspection of certain clothing for instance the denim is inspected and improved, which is essential to meet customer demands and satisfaction. Moreover, so the business reputation is perceived as good quality so more potential customers are interested to the products.
There are methods to ensure quality is of upmost importance through Kaizen theory and various other methods. The ‘production process’ is affected as the inspection of quality control can cost the business for example denim which did not meet the standard was deemed defective and thrown away, which can also slow down the production process. Which was the situation in the game where the denim did not match the quality which was required by the customer causing a small lost.
Reference List
Anon, (2017). [ebook] Available at: https://www.procurementleaders.com/AcuCustom/Sitename/DAM/052/sample-strategy-guide-SRM-0613_1.pdf [Accessed 25 Oct. 2017].
Brennan, L. (2011). Operations management. New York: McGraw-Hill.
Reiss, B. (2017). Build a Good Relationship with Suppliers. [online] Entrepreneur. Available at: https://www.entrepreneur.com/article/205868 [Accessed 25 Oct. 2017].
Robert Johnston, (1994) "Operations: From Factory to Service Management", International Journal of Service Industry Management, Vol. 5 Issue: 1, pp.49-63,
Graphic Products Info. (2017). Quality Control In Manufacturing. [online] Available at: https://www.graphicproducts.com/articles/quality-control-in-manufacturing/ [Accessed 25 Oct. 2017].
Mindtools.com. (2017). Frederick Taylor and Scientific Management: Understanding Taylorism and Early Management Theory. [online] Available at: https://www.mindtools.com/pages/article/newTMM_Taylor.htm [Accessed 27 Oct. 2017].
Appendix