Logistics Management Operations and Supply Chain

Question: Discuss about the Logistics Management for Operations and Supply Chain. Answer: Introduction Development of proper operational strategies and model adaption in the business operation is associated with the understanding of the issues associated with the existing business operation of one organization. In this article, the primary purpose is associated with developing the skills regarding the proper understanding of the operational theories and models based on the current operations of one manufacturing enterprise. The assessment of the case study of Hawkesbury Cabinets Pty Ltd that associated with custom-build kitchen cabinetry for the Chinese community in that region has provided the details of the issues associated with operation. Discussion Main technical issue in this case study can be highlighted as the lack of cooperation in the operation and financial management (Anon, 2016). The traditional business approach of the organization was associated with the development of the custom made kitchen but the market growth has enabled the company to take the orders of standardized kitchen cabinetry products. Technically, the progression with the standardized cabinetry production has indicated the fact that the company was not prepared for this initiatives. It has been found that the orders form the builders are mainly batch based that contains order of one to five cabinetry development of same specification. It affects the delivery system of the organization and exerts pressure in the operational system. Focussing on the manufacturing unit of the organization it has been found that the unit is limited only in the Mulgrave (Anon, 2016). There are no facility of different production unit for the custom made product and standard cabinetry. It is the basic need of the business production system that different production facility is essential for two different types of product, otherwise it will create problem in production. Thus, it has been found in the case study of Hawkesbury Cabinetry that the custom and standard products are competing with each other in processing time (Bhuiyan, 2016). Technical analysis of the production facility of the organization has indicated the availability of high quality cabinet making equipment to ensure flexibility in the wide range of custom cabinetry processing (Slack, 2015). However, the maintenance of the two different aspects of product development is associated with increasing the pressure on the different sections of the manufacturing unit and the craftsman. As the reputation of the business is mainly associated with the custom made product it is expected that the major priority has been provided towards custom product and it create problem on time delivery of the stan dard products (Bhuiyan, 2016). The general overview of the technical aspects and issues are associated with the corporate strategy and facility mission of the organization. Considering technical efficiency it has been found that the company is facing the operational issues regarding five major aspects such as process, capacity, facilities, integration and infrastructure. It has been found that the automation process is not possible in this company as it solely dependent of craftsmanship and development of the quality product is associated with requirement of enough time (Butler et al., 2012). Decrease in the capacity due to manufacturing unit limitation has raised the pressure on the lead time management of the company (Espinoza Smith, 2015). Facilities are less as based on only one location and extension of the manufacturing unit is not possible in that limited place. Integration is not practiced in the business operation due to the maintenance of the quality. One significant draw back of the section of the manufacturing unit of the company is associated with maintaining a separate place for lathes and other less frequently used machines (Slack, 2015). It is actually blocking the free space that can be used for controlling some separate place for the standard product. As a general manager, Mei Chan has understood the need of incorporating the new builders kitchen line in the business operation of Hawkesbury Cabinetry. However, the progression with the idea has resulted in the creation of issues in the production operation of the company. The major intention behind the incorporation of new line standard cabinetry product is comprised of the sense to ensure better revenue and proper business growth in the market. One major issue regarding the standard product is that it mainly of low volume contract that actually hampers the time of the company. Incorporation of new operations and signing of further contract is dependent on the proper understanding of the productivity and capacity analysis. The new line incorporation highlights the issues regarding the poor operational decision as trend analysis, horizontal analysis, vertical analysis and budgetary analysis has not been performed as per the expectation. In addition, the incorporation of the builders Kitchen line has affected the capital and labour ration of the organization. It is due to rise in the pressure of lead time and shortage in the manufacturing capacity of the firm. The major concern of Hawkesbury Cabinetry is associated with custom made cabinetry for the Chinese community. Parallel adaptation of low volume contracts from the builders resulting in the clogging up of the partially completed standard product work as the primary priority of the company is the custom product. Enhancement in the short notice orders deals from the builders has resulted in the half completed standard cabinetry in various stages of the manufacturing unit divisions that hampers the spacious manufacturing area and rise in working space difficulties. Considering the available literature content it has been expected that without proper management of the business operation and incorporation of new business initiatives is associated with considering the lead time management and inventory management capability (Butler et al., 2012).. If an organization has failed to analyse tease capabilities then several issues can arise in the business operation Capital and labour ratio create problem regarding proper availability of the machinery for production and efficient management of labour hours. Differential operations system of the products results in the scarcity of resources for one operational unit that can create productivity problem (Subramanian Ramanathan, 2012). Depending on the literature findings it can be postulated that the development of the cost efficiency planning is the major concern of any business operation as it ultimately ensures the success of the organization (Schnsleben, 2016). Proper amount of mechanization is necessary for the maintenance of the business economy depends on the demand of the product, flexibility of the product and continuous maintenance of the supply of the product in the market. All these processes are involved with certain amount of cash. Financial structure of the organization regarding the business operation is associated with various developmental aspects of the core business operations (Brown et al., 2013). Time horizon is one of the major parts of this as long time horizon and short term horizon of product supply affects the financial structure in different manner. Apart from that development of the training program, work force size control, resource maintaining, inventory maintenance and improvement o f the product quality are associated with the cost enhancement process of the organization (Fernie Sparks, 2014). Considering the case study of Hawkesbury Cabinetry it has been found that the incorporation of the builders kitchen production move is actually affecting the financial structure of the organization (Motyka Szczeblewska, 2014). As discussed earlier in the article that the new business initiative results in rising some issues in the core business facilities of the organization. Current business initiatives has ensured the growth of the company but as per the calculation of the accountant the profit margin of Hawkesbury Cabinetry is much less though the sale is strong and it is steadily increasing. It is evident that high cost issue is a significant part of the standard builders products. Rise in the cost is due to efficient inventory management. As found in the work of other researchers that the proper inventory management can raise the cost of business financial operation. Rise in raw materials, resources and processed work drives the organization to rent the nearby warehouse that in creases the cost of the organization. Problem in the current layout is also creating a problem for the organization and it clearly indicates an extension in manufacturing unit that will involve more cash (Finkler et al., 2016). Major contributor of the profit for Hawkesbury Cabinetry is custom made cabinets whereas the standard cabinets only contributes to the 40 per cent of the company and contribute only to the 25 per cent of annual revenue. However, this revenue is not of much significant for operations as incorporation of standard process has increased the lead time, space crunch in manufacturing unit and pressure on employees. Conclusion Thus, it can be concluded from the above case study analysis and literature findings that business operational decision can face several problems regarding some decision without consideration of the capability of the business. In case of Hawkesbury Cabinetry it has been found that the major issues of the operational management are associated with technical practice of the organization regarding process, capacity, facilities, integration and infrastructure of the business operation. It is clear from the analysis of the new emergence of the builders kitchen has increased the pressure on the manufacturing unit and the manufacturing process is facing the problem regarding layout function, inventory management and enhancement of the inventory raw material management pressure. In addition, financial structure of the Hawkesbury Cabinetry has also changed due to the standard cabinets as it has increased the cost regarding lead time management, inventory cost and workers cost. Moreover, as th e orders are mainly batch oriented it is also associated with very less profit margin. References (2016). FINANCIAL Management SURVEY, 1(1), 4. Retrieved from https://www.ctohe.org/cccs/pdfs/FinancialManagementSurvey.pdf Bhuiyan, N. (2016). A framework for successful new product development. Journal Of Industrial Engineering And Management, 1(1), 25. Retrieved from https://www.jiem.org/index.php/jiem/article/viewFile/334/240 Brown, S., Bessant, J. R., Lamming, R. 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