TASK ONE:
CDS Company values that operations management is vital to the organisation as it outlines their aims and objectives of manufacturing and assembling products in order to efficiently fulfil customer requirements.
In order to discuss the extent of how existing operational competencies within CDS contributed to adopting to a new business strategy there is an outline of ‘the four V’s’ analysis with a conclusion of using Hayes and Wheelwright’s theory of four stages contribution.
The ‘four V’s’ analysis of CDS is presented in the following table. This type of analysis can give an overview of CDS’s previous operations and the adoption of new ones. VOLUME | VARIETY | BEFORE CONCEPT STRATEGY | AFTER CONCEPT STRATEGY | BEFORE CONCEPT STRATEGY | AFTER CONCEPT STRATEGY | Old machines made 3 items per min.‘600% productivity’
‘600% productivity’
Design under ‘focus’ products was successful and volume was high with high costsReduction in cost
Reduction in cost
Small injection moulding machines usedProduction more efficient
Production more efficient | New machines make 18 items per min.Not only new machines gave high productivity, it allowed production costs to be low and CDS targeted smaller moulding companies.New large multi-cavity moulding machines used | Small injection moulding machines meant small variety of products could only be madeVariety of products can be made at short notice
Variety of products can be made at short notice
Although production becomes flexible, the drawback of this is the complexity of changing moulds on large machines that leads to a prolonged process.
This leads to an increase in production costs.
Although production becomes flexible, the drawback of this is the complexity of changing moulds on large machines that leads to a prolonged process.
This leads to an increase in production costs.
| Large machines allow variety of moulding to take