Operations Management II

Submitted To: Prof. V.K Gupta

Submitted By: Bhupesh Negi

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IMG 15 – D
 Article 1- Balancing Demand and Supply with Effective Sales and Operations Planning

Summary:

Customer happiness, lean operations, and profitability are enhanced when supply and demand are balanced.
Businesses struggle to bridge customer needs and business capacity due to shorter product life cycles and
faster lead times. S&OP integration is the key to the solution. S&OP software has significantly advanced
thanks to machine learning, artificial intelligence, and big data, giving up a world of possibilities.
Companies that use a primitive supply-demand balancing model have flaws in their systems. They are
missing critical integrated components that generate actual value. They will not only cut their revenue
targets, but they will also likely lose money. Stockouts or excess inventory can result from a failure to
balance demand and supply. The former will result in more extraordinary delivery expenses, while the latter
may result in significant markdowns.

In addition, a lack of integration might result in increased manufacturing costs upstream and poor
performance and service delivery downstream. Customers were lost permanently because of frequent
stockouts or poor service delivery.

What are some of the process flaws that can result in a loss of customers and revenue?

• Partial scope (e.g., focus only on supply)

• Unclear objectives
• Undocumented processes
• Decentralized or fragmented leadership
• Inadequate KPIs
• Inconsistent follow-up
• Limited accountability
• Siloed performance views

S&OP (sales and operations planning) is a management process that synchronizes and coordinates a
company's numerous departments to accomplish profitability and performance goals.

• Data, analytics, and tools are all essential. Customers, markets, operations, and financials must all
be thoroughly researched. Supply and demand software is used to evaluate this data and generate
various models, including demand forecasts and inventory management.
• Clear objectives, sequences, frequent checks, and documentation are all part of the process. This is
where the monthly S&OP meeting takes place. Its goal is to compare actual results to the plan and
decide the next steps. The processes' effectiveness is dependent on accurate data reports being
communicated in advance.
• People make informed decisions based on accurate information. S&OP requires executive teams
and high management participation to provide the plan a company-wide breadth, review decisions,
resolve issues, and make policy decisions.

S&OP Software is a critical component of making the planning process effective. Various tools feed into
it. Supply optimization improves the efficiency of the supply network and performance. Demand
optimization uses sophisticated algorithms for the automatic generation of forecasts. Intuitive demand
solutions enable demand planners to fully control the forecast process without getting stuck in complex
algorithms. Balancing demand and supply require integrated S& OP with robust tools and solutions to
deliver the correct data analyses.
 Article 2 - Agile in Enterprise Resource Planning- A myth no more
Summary:
ERP, or Enterprise Resource Planning, is a system or process that many firms utilize to manage and
integrate various aspects of their operations. ERP software packages are essential because they allow
businesses to operate together in a single system. It can involve planning, marketing, sales, human
resources, inventor purchases, etc. The effects of using agile in ERP systems are better than predicted.
ERP solutions are a critical business asset for most large firms because they offer seamless, end-to-end
integration between departments and process standardization across regions and business units. However,
there are some obstacles to overcome, which are as follows:

• Parties in a company might not share the same objectives to integrate.

• Requires extensive, integrated, and difficult talks because it lacks IT management knowledge.
• Activities should drive ERP reforms, not the other way around.
• ERP initiatives take a linear approach, which causes firms to be delayed.
Myths and Truths
There are several misconceptions regarding agile ERP, such as that it is a large and complex system that
is difficult to implement, but the truth is quite different. A traditional ERP can cause issues that can be
mitigated with agile ERP. It entails a quicker speed and more openness, making it easier for managers to
make timely, essential decisions. Elegant substitutes long, opaque project phases with two- to three-week
sprints so managers can track outcomes, progress, and obstacles, contrary to conventional assumption. In
a nutshell, agile approaches are precisely what ERP deployment needs.
Adapting agile ERP
This can be accomplished in a variety of ways:

• It is possible to achieve this without forming end-to-end, cross-functional agile teams.

• The business process and architecture require more attention than conventional agile
implementation.
• Strong ties between agile teams are required.
• A critical program management office that is quick to respond.
• An end-to-end testing phase is required.
The following are the four significant steps in adopting agile to traditional approaches:

• Come up with an ERP approach.

• Getting the program up and running.
• Putting the solution into action.
• Putting the solution into action.
It's worth noting that, in comparison to the typical waterfall technique, the earliest stages of an agile-adapted
implementation are hastened. The majority of time is spent on the later stages, which are focused on
supplying functionalities.
Benefits of agile and ERP:

• Reduction of the program cost up to 10%

• Increase in program’s value by 10 percent.
• Ability to compress three times more workload.
• Wider adoption of the solution by end-users.
• Improvement in team morale.
Conclusion:
Although ERP systems are frequently regarded as a "necessary evil," they are here to stay and cannot be
overlooked as businesses move toward digitalization. The traditional, often complex approach to ERP
transformation should be radically overhauled and, where possible, altered to incorporate agile working
methods. Instead of believing the fallacy that agile cannot be applied to ERP, companies and system
integrators should industrialize the elegant approach to ERP transformation. Furthermore, ERP solutions
should become more flexible, allowing for phased adoption, resulting in lower costs and faster value
realization. ERP conversions are usually tricky, but they can be easily made with an agile strategy.

Article 3 - 7 KEY TRENDS IN OPERATIONS MANAGEMENT IN A POST-COVID

WORLD FOR 2021
In the aftermath of COVID-19, business operations managers will be needed more than ever to help firms
recover and work more efficiently. They will have a significant impact on how companies conduct business
in the future.

INFORMATION AVAILABLE EVERYWHERE

• In today's uncertain environment, digitally equipping your frontline personnel is the single most
important investment you can make to increase productivity, improve safety, and lower costs.
• With increased productivity, safety, and agility, such digital enablement can save you more than
$800 per month.

COMPANY-WIDE COMMUNICATION

• Good operational communication is critical to boosting efficiency and production; minor

modifications in the pyramid's base and middle layers have the most significant impact.
• New communication tools have enhanced productivity for 71% of frontline staff.
• A 10% rise in the manufacturer's profit margin

GET MOBILIZED

• By 2021, mobile access will be critical to operations management.

• Remote employees can access information, tools, and resources that can help them succeed in
their employment thanks to accessibility.
• Using multiple cloud-based apps to digitally empower staff to make quick decisions and handle
any miscommunication or confusion at the moment.

FIRST AND FOREMOST, SAFETY

 • For operation managers, finding new ways to reduce the number of health events and workplace
accidents is a top goal.
• Make quick adjustments to internal processes and procedures.
• By making information available and providing frontline managers more time to teach their
employees, tools like Beekeeper can save $40,000 per year in safety expenditures.

IMPROVE EMPLOYEE EXPERIENCE

• Ensuring open and transparent internal communication.

• Providing direct feedback in the form of direct input.

Developing a culture that:

• Increases employee morale.

• Removes roadblocks to success.
• Promotes efficiency and collaboration.

GET A HAND ON THE DEMAND

• Since several brick-and-mortar stores completed digital pivots, online purchases have increased
by a staggering 49% by April 2020.
• Operations managers will need to continue refining and creating demand-responsive supply
chains considering volatile market fluctuations and the rate of consumer demand changes.
• Master demand forecasting to ensure consistent demand and avoid surplus inventory.

THE CUSTOMER SERVICE DEPARTMENT IS ALWAYS RIGHT

• An operation manager's job entails more than just cost-cutting; it also includes managing global
goals.
• Operations managers should collaborate more closely with customer service divisions to better
understand end-users.
• solid human understanding relationships will overcome COVID's commercial issues. As a result,
relationship managers and operation managers should collaborate closely.
• Everyone, even operations managers, is now responsible for customer-centricity.

Article 4 - The Post-Covid Future of “Everything as a Service”

Summary:
If you work in a B2B organization, you've almost certainly heard the term "servitization." Services and
solutions are being used by B2B enterprises to supplement (and in some cases replace) traditional product
sales. Opponents of solutions question if the advantages outweigh the concerns of increased risk. The
wreaking havoc caused by Covid-19 may appear to have validated the critics. Covid-19's demand shock
reverberated throughout the economy. In an ideal world, solution-based businesses would have been
actively involved in their customers' rehabilitation from the start. Structures, procedures, and people who
may have laid the foundation for effective interactions were usually absent. The unexpected fragility of
these connections was undoubtedly to blame for many providers' lack of agility throughout the pandemic.
However, none of this suggests that companies should abandon their solution-based business strategy.
There will be two significant adjustments because of this. For starters, present solutions are projected to
become more complicated and technologically advanced in the future. If the proposal is successful,
Michelin may find itself at a table with construction companies, public transit agencies, mobility-as-a-
service start-ups, and other companies interested in fully comprehending and managing mobility
ecosystems. Michelin's corporation has practically limitless expansion possibilities. In a published paper
for SMR – Journal of Service Management Research, Andreas Eggert, Anna Gehring, and I investigated the
growing customer success management (CSM) field, which is all about assisting customers in recognizing
and capturing the benefits of technologically innovative solutions.

Article 5- Carrefour Case Study

Summary:
Carrefour has roughly 15,500 company-owned and franchised outlets in 35 countries. Syria, Jordan, Egypt,
Kuwait, Saudi Arabia, Qatar, the United Arab Emirates (UAE), Bahrain, Oman, and Pakistan are some of
the 10 Middle Eastern nations in which it works. The Carrefour Group has become the world's second-
biggest retailer and Europe's most prominent in the last 40 years. Carrefour Middle East decided that
adopting an RF solution would achieve these objectives. The LXE MX8 hand-held computer is at the heart
of Carrefour Middle East's RF solution. The initial RF project in Egypt, Kuwait, and the United Arab Emirates
encompass 15 hypermarkets and six supermarkets. Motorola, Datalogic, and LXE were all considered for
the RF project. After carefully analyzing all of the options, we chose LXE as our RF system supplier, says
Gavin Booth, Carrefour Middle East Back Office System Manager.

The MX8 hand-held computers are used to scan merchandise in the warehouse and retail areas of the
stores. The MX8 has two keypads: • Alpha-mode with 32 keys and • 32-key alpha with numeric triple-tap.
The data is then immediately downloaded into the legacy Carrefour system. Backlit keys and a bright
screen give good vision in low-light environments. Employees can now quickly verify which store has the
item in stock if a specific item is missing from a store. As a result, both customer service and inventory
management have considerably improved.

"The installation went smoothly," Booth adds, "all of the equipment worked properly, and the software
was deployed quickly and efficiently." "Printing customer invoices was a little more difficult, but because
to LXE's capable partner and resources, we were able to do so rather quickly and efficiently." They also
teamed up with a superb partner with whom we'd previously had great success." The legacy system of
Carrefour Middle East is an IBM I Series (previously AS400) with a Cisco backbone. SYLANDE software
controls distribution, labeling, merchandising, and logistics. The application's hand-held component was
developed using.Net technology by Wave Logix, a global systems integrator. In Iraq and Lebanon, new
stores will open with LXE's gadgets installed from the start.