Why is operations management important in CDS?
Operations management is important in CDS if they are to continue being one of Europe’s most profitable home ware businesses. As with any other company, CDS objective is to add value to their final product while using its resources effectively and efficiently through its internal processes. The company has successfully been able to apply the technology used in the aerospace sector onto home ware items, through the mastering of injection moulding machines. Moreover, the company has expanded into a premium home ware product market, integrating new functions within its operations, such as forming partnerships with reputable designers and increasing the volume and complexity of its production.
Draw a 4 V’s profile for the company’s products/services
Volume: High. Although the case study does not specify the amount of production, it can be deduced that production volume is high as it has increased 600% since the acquisition of new large multi-cavity moulds. Another indication of high volume production is the fact that CDS decided to subcontract their Focus line to other moulding companies, so they could focus on the production of their premium line (Concept).
Variety: High. CDS market is a highly competitive one, in which design innovation determines the longevity of the firm. CDS capacity of developing products that are in fashion and moreover, its adaptability to change as fashion changes is key to the survival of the firm.
Variation: High. For the same reason as with variety, CDS is forced to continuously produce innovative designs that would keep their customers interested and therefore keep demand high.
Visibility: Mixed high and low. There is the visible part of the operation that is when the final products are
What would you recommend to the company if you were asked to advice on improving its operations?
There are 2 areas that CDS needs to improve: