PRODUCTION AND OPERATIONS MANAGEMENT: A CASE STUDY

PRODUCTION AND OPERATIONS MANAGEMENT: A CASE STUDY DESCRIBING,

ANALYZING, AND DEVELOPING RECOMMENDATIONS IN RELATION TO OPERATIONS
MANAGEMENT AT WKK TECHNOLOGY LTD.

In recent months, WKK Technology has experienced increasingly serious problems

associated with production operations. The most salient issues are (a) falling manufacturing
productivity and (b) increasing overtime costs for both line workers and engineering staff. These
operations management problems are related to one another (e.g., overtime costs affect
productivity measures). The probability, however, is that an underlying problem is the root cause
of both manifestations of the production problem at WKK Technology. Further, it is possible that
actions at WKK (Holding) Ltd. in Hong Kong have an impact on production efficiency at WKK
technology (all marketing operations, including customer specified product requirements are
handled at corporate headquarters).

An investigation identified the specific nature of the operations management problems

confronting the company. Specific recommendations were made for implementation by the
company to correct the production and operations management problems identified.

Introduction to the Company and the Operations Management Issues Confronting the
Company

WKK Technology Ltd. is the manufacturing subsidiary of WKK (Holdings) Ltd. The
company is a complete electronics manufacturing service provider. WKK corporate
headquarters are located in Hong Kong, while the manufacturing subsidiary is located in Shajin,
Guangdong Provide in Southern China just north of Hong Kong (ôAbout WKKTö, 2004).

In recent months, WKK Technology has experienced increasingly serious problems

associated with production operations. The most salient issues are (a) falling manufacturing
productivity and (b) increasing overtime costs for both line workers and engineering staff. These
operations management problems are related to one another (e.g., overtime costs affect
productivity measures). The probability, however, is that an underlying problem is the root cause
of both manifestations of the production problem at WKK Technology. Further, it is possible that
actions at WKK (Holding) Ltd. in Hong Kong have an impact on production efficiency at WKK
technology (all marketing operations, including customer specified product requirements are
handled at corporate headquarters).
 External Forces Affecting Company Operations

Substantial foreign investment in China is raising the country's technology and

manufacturing capabilities to globally competitive levels, and this trend should continue. It
seems likely that much of the manufacturing and technical base will continue to shift to mainland
China as foreign corporations transfer their leading-edge technologies.

Hong Kong-based companies have been very successful at finding low-cost

manufacturing sources for firms desiring to cut their production costs. One source is Wong's
International (Holdings), Ltd., a parent company for electronics-product-related companies.
Reflection Essay

As I look back with our previous lessons, I can say that this is one of the most
challenging activities we had. I only have limited resources and as a mother and a barangay
official it is hard to juggle everything. I was able to overcome all this by prioritizing things and
properly managing my time.

As I was reading and understanding the case study presented, I have learned that
production and operations management (regardless of the size and nature of business) is the
core business function in every organization whether service or manufacturing, profit or non
profit business.

More importantly I have learned, it is important to always consider the labour needs first
before making big decisions because this could affect everyones job and the company iself.