Operations Management

September 2023 Examination

1. List down and briefly explain the various types of inventories along with techniques of
how to manage each. Identify at least three inventory management techniques applicable
to pickup point stores of a large retail business operator with reasoning for the same.
Explain how each technique contributes to the effective management of inventories for
pickup point stores (assume several inventories of your choice). (10 Marks)

Ans:

Introduction:

Stock control carries out an imperative role in the smooth activity of any retail business. It
entails preserving the highest possible levels of various inventories in order to meet customer
demand while simultaneously reducing expenses and increasing productivity. On this response,
we will investigate different stock styles, momentarily make sense of each, and afterward select
three stock control methods reasonable for pickup factor shops of an enormous retail business
administrator.

Sorts of Inventories:

1. Inventory of raw materials: This stock includes the fundamental materials expected for
assembling or assembling. It incorporates things like unrefined components, added substances,
and sub-gatherings.

The following methods can be used to deal with raw material inventory:

• Monetary Request amount (EOQ): EOQ empowers deciding the ideal request amount
through adjusting holding and requesting charges. It limits brandishing stock expenses while
halting stock outs.

• JIT (Just-in-Time): JIT involves getting uncooked substances with perfect timing for
assembling, bringing down capacity expenses, and limiting the risk of fabric out of date quality.
It calls for precise interest determining and vigorous provider connections.
2. inventory of work in progress (WIP): WIP stock refers to products in production that are
only partially finished. It comprises of contraptions in different item goes, from starting
handling to definite gathering.

Strategies for managing WIP stock envelop:

• Kanban method: The Kanban framework utilizes noticeable cautions to control the
progression of WIP stock. It ensures that creation techniques are synchronized and that WIP
stock is adequate and adequate.

• Creation Planning: By reducing lead times and bottlenecks, green production

scheduling strategies, simply-in-time production, or Lean production, make it easier to reduce
WIP inventory.

3. Inventory of goods finished: completed merchandise stock includes the stopped items
prepared available to be purchased or dispersion. Those devices are produced and bundled,
ready to be conveyed to clients.

Procedures for overseeing completed things stock include:

• ABC investigation: Based on cost and demand, ABC evaluation divides products into
three agencies. By concentrating on high-priced items (A-items) and optimizing their
replenishment, it makes it possible to prioritize stock management efforts.

• Safety supplies: The term "safety stock" refers to a buffer quantity of finished goods that is
kept to reduce fluctuations in demand and supply. It permits save your stock outs and keeps up
with consumer loyalty sooner or later of sensational vacillations.

4. Inventory for maintenance, repair, and operations (MRO): Tools, spare parts, cleaning
supplies, and other consumables, among other things, are included in MRO stock. The upkeep
and repair of facilities and equipment is aided by these items.

5. Security Stock: Wellbeing stock is an additional amount of stock held as a cradle to safeguard
against vulnerabilities popular and supply. It goes about as a security net to forestall stock outs
and keep up with consumer loyalty.
6. Inventory of Expectations: Expectation stock is held fully expecting unsurprising occasions
or variances popular. It assists organizations with planning for occasional pinnacles,
advancements, or expected supply interruptions.

Stock Administration Procedures for Pickup Point Stores:

1. Without a moment to spare (JIT) Stock Administration:

JIT is a procedure that spotlights on limiting stock holding costs by getting merchandise with
perfect timing for creation or client interest. Implementing JIT can improve inventory turnover
and reduce storage space requirements for pickup point stores. By closely aligning deliveries
with customer orders, the risk of obsolescence or overstocking is reduced. To guarantee timely
delivery, JIT necessitates efficient collaboration with suppliers and dependable transportation
networks.

2. Analysis of ABC:

Inventory items are divided into three groups according to their value and importance using
ABC analysis. Class A things are high-esteem, high-need items that require close observing
and tight control. Class B items have a low value and should be checked on a regular basis.
Class C things are low-esteem, low-need things that need less consideration. Applying ABC
investigation to pickup point stores focuses on stock administration endeavors. It guarantees
that the most basic and high-esteem things are firmly observed and renewed immediately, while
less basic things get less consideration, improving assets.

3. Forecasting of Demand:
Precise interest guaging is fundamental for compelling stock administration. Organizations can
anticipate future interest designs by breaking down authentic information, market patterns, and
client inclinations. When demand forecasting techniques are applied to pickup point stores, the
retail operator is able to maintain the appropriate levels of inventory at each location. It reduces
carrying costs, improves customer satisfaction, and boosts profitability by reducing stock outs
and excess inventory. Procedures like moving midpoints, pattern examination, and relapse
investigation can help request determining.

Benefits and drawbacks:

• EOQ benefits: EOQ limits keeping up with expenses, streamlines request parcels, and
forestalls stock outs. In any case, it depends on precise calls for anticipating and may should
be more reasonable for quickly changing interest designs or dangerous business sectors.

• Advantages of JIT: JIT lessens carport charges, limits the danger of item out of date quality,
and works on stock turnover. To guarantee timely deliveries, however, it necessitates effective
logistics, accurate demand forecasting, and solid dealer relationships.

• ABC examination benefits: ABC analysis makes high-cost items a specialty, improves
overall inventory control, and makes it easier to prioritize stock management efforts. In any
case, it could disregard the ability of diminishing worth articles and requires customary
reassessment as it calls for designs change.

Conclusion:

It is essential for retail groups, including pickup point stores, to effectively manage inventories.
The three stock administration procedures referenced - basically in-Time (JIT) stock control,
ABC assessment, and request determining - add to upgrading stock levels, limiting costs, and
improving client pride. Forcing JIT diminishes capacity region prerequisites and adjusts
conveyances to buyer orders. ABC assessment focuses on assets for exceptional stock classes.
Call for guaging empowers precise stock preparation and forestalls stock outs. A large retailer
can improve inventory management standards and enhance the efficiency of their pickup point
stores by utilizing these strategies.

2. Define the theory of constraints and its key principles. Using an example of any
synchronous manufacturing system, identify a bottleneck in the production process and
describe how the Theory of Constraints can be applied to address this bottleneck. Also,
describe how the concept of drum-buffer-rope (DBR) can be used to optimize production
scheduling and improve overall system performance (10 Marks)

Ans:

Introduction:

The hypothesis of Imperatives (TOC) is a control reasoning Dr. Eliyahu M. Goldratt created in
the Nineteen Eighties. Its goal is to make organizations work better by figuring out and fixing
the problems that stop them from working well on a regular basis. The idea shows that every
framework, whether an assembling way, a conveyance chain, or an endeavor, has as a base one
limitation that keeps it from achieving better execution levels. TOC gives an efficient technique
to seeing, exploiting, and raising these requirements to improve the framework's result.

Essential standards of the hypothesis of Limitations:

1. The constraint has been identified: the most vital phase in applying TOC is sorting out the
bottleneck or imperative that restricts the framework's run of the mill execution. A machine,
system, resource, or policy that restricts workflow is an example of a constraint.

2. Taking advantage of the constraint: Utilizing the constraints to their fullest potential is the
next step after determining the condition. This entails eliminating non-essential responsibilities
or activities that do not immediately increase the constraint's output.

3. Subjection of non-requirements: TOC underlines subjecting non-imperatives to the

limitation. It adjusts the whole framework's exercises to help and adorn the imperative's
exhibition. Non-limitations ought to adjust to the beat set by the condition to forestall the
formation of silly bottlenecks somewhere else in the contraption.

4. Height of the limitation: In the event that the condition is diligent and can't be killed,
endeavors ought to be made to build its capacity. This could mean making the constraint work
better, investing in more assets, or coming up with creative ways to get around the restrictions.

5. Continual advancement: TOC supports a consistent improvement cycle, wherein imperatives

are ceaselessly reconsidered, and the center is moved to the ensuing control in line.
Associations can continually work on their presentation over the long run by distinguishing
and tending to restrictions.

Illustration of a Simultaneous assembling machine and use of TOC:

Allow us to consider an auto fabricating organization that follows a coordinated creation

machine. Engines travel through different assembling stages on this device, welding, painting,
meeting, and testing. There are multiple workstations and strategies on each level.

After breaking down the gadget, it's far distinguished that the bottleneck or limitation is the
depicted degree. The composition framework takes a lot of time because of controlled shower
corners and drying limit. A backlog of cars waiting for the painting stage is affected by this,
resulting in delays and a decrease in overall throughput.

To address this bottleneck utilizing TOC, the resulting steps might be taken:

1. Identification: The creation way bottleneck, the artwork level, is the imperative.

2. Exploitation: The portray level's potential is explored to its fullest extent. This might include
advancing the work process, lessening arrangement occasions, and wiping out non-significant
obligations or pointless investigations.

3. Subordination: different phases of the creation interaction, like welding, gathering, and
testing, are adjusted to help the speed set using the depicted degree. They should abstain from
over-burdening the composition stage with radical works of art and focus on sending vehicles
to paint most straightforward while the limit is accessible.

4. Elevation: Investments can be made to increase the painting stage's capabilities if it continues
to be a significant constraint. This incorporates adding splash stalls, improving drying
innovation, or reevaluating a couple of painting techniques.

The company is able to effectively address the bottleneck at the painting level and increase the
public float of motors via the producing device by imposing these TOC principles. This would
diminish lead times, increment throughput, and progress client delight.

Drum-Cradle Rope (DBR) and its application:

Within TO, the scheduling concept of Drum-Buffer-Rope (DBR) can be found.

C spotlights on streamlining the skim of materials and commitments through a gadget. It
guarantees that compositions are sent off into the gadget appropriately to forestall over-
burdening the imperatives and creating setbacks. The three main components of DBR are as
follows:

1. Drum: The device's constraint or bottleneck is represented by the drum. It sets the rhythm
for the total contraption and decides the most extreme creation cost. The drum goes about as a
metronome, organizing the work process to hold a practical beat.

2. Buffer: To guarantee uninterrupted flow, the buffer is a shielding inventory placed prior to
the constraint. It goes about as a security web, engrossing any variants or disturbances in the
upstream strategies and preventing them from straightforwardly influencing the control.

3. Rope: The rope addresses the correspondence contraption that synchronizes the functioning
send off into the gadget. It guarantees that canvases are started or "pulled" by the limitation
fundamentally founded on capacity. The rope forestalls radical work underway (WIP) and
contains the over-burdening of the condition.

By applying DBR, producing booking can be streamlined, and customary framework execution
can be progressed. The support toward the front of the limitation considers better coordination
and limits the impact of fluctuation and disturbances in the framework. The requirement units
the framework's cadence, forestalling overproduction and guaranteeing proficient asset usage.

Benefits of DBR:

1. Further developed stream: DBR guarantees a smoother stream of work through the
contraption by halting over-burdening of the requirement and keeping away from exorbitant
WIP.

2. Diminished lead times: DBR permits less lead occasions and further develops standard
vehicle execution by synchronizing the arrival of work.

3. Concentrate on managing constraints: DBR focuses on the imperative and its advancement,
vital to higher asset designation and further developed machine execution.
Inconveniences of DBR:

1. Restricted adaptability: DBR might should be more adaptable while overseeing dynamic
changes or surprising disturbances. The framework's capacity to adjust rapidly can be
compromised.

2. reliance on precise forecasting: DBR depends on right interest figures to ensure the suitable
canvases discharge. Underutilization of assets or inefficiencies can result from inaccurate
forecasts.

Conclusion:

A scientific approach to identifying and managing constraints that limit standard device
performance is provided by the Theory of Constraints (TOC). Businesses can address
bottlenecks, increase resource utilization, and optimize work flow with the help of TOC
principles. Drum-Support Rope (DBR) is a booking idea inside TOC that further improves
framework execution by synchronizing work discharge and safeguarding the imperative.
Indeed, even as DBR offers endowments, for example, further developed stream and
diminished lead cases, it likewise has limits in expressions of adaptability and reliance on
precise guaging. Associations can fundamentally further develop their creation strategies and
in general execution by really carrying out TOC and using guidelines like DBR.

3. The facilities management department is a good example wherein the operations

involve the integration of the “core operations function” to be coordinating and working
in sync with other departments. With reference to the healthcare sector discuss the
following aspects of operations in a big multi-specialty hospital setup.

a. Explain the role of operations managers in their interface with other functions in
hospital facilities management. Give relevant examples. (5 Marks)

Ans:
Introduction:

In operations managers play a crucial role in ensuring the smooth and effective operation of
various facilities and services at a large multi-specialty hospital. In the management of hospital
facilities, the operations managers play a crucial role in coordinating and integrating the core
operations function with other departments. They oversee assets, enhance processes, and work
on generally functional execution. This paper will investigate the job of tasks supervisors in
their connection point with different capabilities in clinic offices the board in the medical
services area.

Idea and Application:

1. Coordination with Clinical Offices:

Activities directors in emergency clinic offices the board work intimately with clinical
divisions, which incorporate nursing, research center, radiology, and drug store. They make
certain that the equipment, components, and infrastructure required to support clinical
operations are readily available. For instance, operations managers work with nursing
departments to make sure that patient rooms are clean, well-kept, and equipped with the
necessary scientific instruments. In addition, they collaborate with departments of radiology
and the laboratory to guarantee the prompt delivery of test results and the availability of
diagnostic equipment. Planning between tasks administrators and clinical offices is
fundamental for turning in great patient consideration.
Advantages:
- Effective use of resources: Tasks supervisors guarantee that sources, like clinical frameworks,
parts, and staff, are really dispensed to address the issues of clinical divisions. This empowers
streamlining asset utilization and lessening waste.
- Better outcomes for patients: by planning with clinical offices, activities administrators add
to upgrading patient results. For instance, ensuring that operating rooms have the necessary
equipment and supplies on hand can help cut down on surgical delays and increase patient
safety.
- Cost reduction: compelling coordination among activities administrators and clinical
divisions can cause cost reserve funds by smoothing out approaches and keeping away from
duplication of endeavors.
Disadvantages:

- Problems with communicating: Planning with different logical offices requires strong verbal
trade and coordinated effort. In enormous multi-uniqueness medical clinics, oral trade moves
may likewise emerge because of the intricacy of activities and the association of different
partners.
- Clashing needs: Activities chiefs might require help adjusting various offices' needs. Clinical
offices could likewise have explicit prerequisites that need to be tended to, and accommodating
these necessities with in general functional dreams can be mind boggling.
2. Collaboration with services for support:
In the management of hospital centers, operations managers also interact with a variety of assist
services, such as home tasks, security, protection, and food services. They collaborate closely
with these divisions to ensure a safe, easy, and secure environment for patients, visitors, and
teams of workers. For instance, tasks chiefs team up with housekeeping offices to keep up with
neatness and cleanliness necessities in quiet rooms and normal areas. They coordinate with
upkeep divisions to guarantee convenient fixes and redesign of gear and foundation.
Advantages:
- Upgraded office support: Operations managers can quickly address security issues by
working with guide offerings, ensuring that the health facility's infrastructure and system are
accurate. This adds to a solid and informal setting for victims and the labor force.
- Making the most of available resources: In order to maximize resource utilization, operations
managers collaborate with help offerings. For example, they might arrange with the dinners
administrations division to restrict food wastage and guarantee effective feast arranging.
- Worked on understanding fulfillment: Using help and effective collaboration makes it
possible for patients to have some fun. Advanced patient satisfaction can be influenced by
exceptional food options and an accessible and well-maintained clinic environment.
Disadvantages:
- Problems with allocating resources: Activities chiefs can likewise confront difficulties in
assigning assets effectively all through exceptional guide administrations. Controlled resources
and contending requests might require wary prioritization and choice making.
- Coordination of maintenance: Organizing security exercises across assorted divisions might
be complicated, especially in enormous multi-specialty clinics. All around planned booking
and execution of redesign obligations might take time, requiring effective correspondence and
coordination.
Conclusion:
In a major multi-strength clinic arrangement, tasks directors are urgent in planning and
coordinating the middle tasks highlight with various offices in emergency clinic offices the
board. They connect with clinical offices to guarantee clean activities and the most effective
asset assignment.
Furthermore, tasks chiefs team up with guide administrations to keep a safe and comfortable
climate for patients and staff. While there are endowments, along with worked on persistent
results and cost reserve funds, there might be difficulties related with correspondence, clashing
needs, asset assignment, and upkeep coordination. Utilizing proficiently dealing with those
elements, activities chiefs add to the general productivity and viability of clinic offices the
board inside the medical care district.

b. Define Quality and list and discuss in brief the various dimensions of quality in hospital
facilities management. (5 Marks)

Ans;

Introduction:

The control branch of the center plays a crucial role in ensuring the smooth operation of the
entire multi-specialty healthcare facility. Offices the board incorporates organizing and
coordinating different tasks inside the facility, guaranteeing that the middle activities capability
consistently with various divisions. Maintaining and providing high-quality services is one
important aspect of facilities control in the healthcare sector. In the management of hospitals,
satisfactory means that the services provided meet or exceed the needs and expectations of
patients, staff, and other stakeholders. It encompasses many aspects that contribute to daily
service excellence and patient satisfaction. We can define first-class in the context of control
over hospital centers in this discussion, and we can investigate all aspects of satisfaction in this
domain.
Idea and application:

1. Safety: wellbeing is fundamental in clinic offices the board. It incorporates making and
saving secure environmental factors for victims, the labor force, and site guests. This
incorporates forcing measures to forestall mishaps, guaranteeing legitimate taking care of and
removal of hazardous substances, keeping up with fire security conventions, and sticking to
contamination control rehearses. Solid security measures impart trust in patients and add to
their in general appropriately being.

2. Accessibility: The ease with which all people, regardless of their physical abilities,
socioeconomic status, or location, can access healthcare services and facilities is known as
accessibility. In wellbeing office offices the board, guaranteeing availability involves giving
boundary free access, sufficient stopping offices, slopes, lifts, and signage that take special care
of the longings of people with handicaps. Additionally, it ensures that marginalized populations
have access to healthcare services both inside and outside of the medical facility.

3. Performance: execution streamlines strategies and utilizations resources adequately to

achieve favored results. Controlling sanatorium centers entails streamlining operations,
shortening wait times, cutting down on waste, and making the most of facilities and equipment.
Productive focus the board adds to the smooth float of activities and improves the impacted
individual revel by diminishing deferrals and guaranteeing the opportune conveyance of
administrations.

4. Neatness and Cleanliness: Tidiness and cleanliness are fundamental in facility habitats'
control. Holding simple and clean environmental elements is basic to forestall contaminations
and safeguard the impacted individual. It includes oftentimes tidying up and cleaning impacted
individuals' rooms, normal regions, and gadgets. In order to maintain the highest levels of
cleanliness on the premises of the health center, perfect waste control procedures and strict
hygiene protocols are essential.

5. Comfort: solace is vital for emergency clinic offices' control. It makes favorable and
agreeable environmental elements for patients, gatherings of laborers, and guests. This
incorporates suitable temperature the executives, sound decrease, comfortable furnishings,
sufficient lighting installations, and extraordinary feel. The general well-being of patients, their
healing, and the medical facility as a whole are all improved by comfortable facilities.

Conclusion:
Best in centers control is of the utmost importance in the setting of a massive multi-
distinctiveness health facility. The different components of greatness referenced, alongside
security, availability, execution, neatness and cleanliness, and solace, all add to the overall
greatness of administrations outfitted with the guide of the sanatorium. By coordinating those
aspects into their tasks, focus the executives divisions can guarantee a well-working, patient-
driven medical services climate. Accomplishing and saving great necessities in medical clinic
communities control prompts advanced patient results and joy and supplements the overall
standing and satisfaction of the medical services bunch.