Qualification Module number and title

Cardiff Metropolitan University Level 4 and 5

SRI5151-Operations Management
Higher Diploma in Business Management

Student name & CMU No Assessor name

J.P.K. Dilshan NG/HDBM/CMU/06/03 Ms. Erandathi Jayasekara
Date issued Completion date Submitted on

05/02/2023

Assessment type Duration/Length of Weighting of Approximate Date of

Portfolio Assessment Assessment Submission
3000 words 100%

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I certify that the work submitted for this assignment is my own and research sources are fully
acknowledged.
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IV Signature Date

1
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Operations Management- Individual Portfolio

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Acknowledgment
I am over helmed in all humbleness and gratefulness to acknowledge my depth to all those who
have helped me to put these ideas, well above the level of simplicity and into something concrete.
I would like to express my special thanks of gratitude to my teacher who gave me the golden
opportunity to do this wonderful assignment which also helped me in doing a lot of research and I
came to know about so many new things. I am really thankful to them.

Any attempt at any level cannot be satisfactorily completed without the support and guidance of
my parents and friends.

I would like to thank my parents who helped me in gathering different information, collecting data
and guiding me form tie to time in making this assignment, despite of their busy schedules, they
gave me different ideas in making this project unique

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Table of Contents
Cover ..............................................................................................Error! Bookmark not defined.

Grading descriptions ......................................................................Error! Bookmark not defined.

Acknowledgment ............................................................................................................................ 1

List of illustrations/diagrams .......................................................................................................... 5

1 Operations strategy and competitiveness ................................................................................ 6

1.1 Developing business strategy ........................................................................................... 6

1.2 Developing operations strategy ........................................................................................ 6

1.3 Competitive priorities....................................................................................................... 7

2 Functions of operations management ...................................................................................... 9

2.1 Product designing ............................................................................................................. 9

2.2 Capacity planning ........................................................................................................... 10

2.3 Inventory planning ......................................................................................................... 10

3 Quality management approaches ........................................................................................... 12

3.1 Total quality management .............................................................................................. 12

3.2 Lean management .......................................................................................................... 12

4 Critical path method (CPM) .................................................................................................. 14

4.1 Network diagram ............................................................................................................ 14

4.2 Usage of CPM ................................................................................................................ 15

5 Process mapping techniques .................................................................................................. 16

5.1 Process flow ................................................................................................................... 16

................................................................................................................................................... 16

References ..................................................................................................................................... 17

Appendices .....................................................................................Error! Bookmark not defined.

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List of illustrations/diagrams
Figure 1 Operations Strategy Perspective ....................................................................................... 6
Figure 2 Operations strategy formulation porcess .......................................................................... 7
Figure 3 Evolvement of TQM....................................................................................................... 12
Figure 4Process flow chart............................................................................................................ 16

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1 Operations strategy and competitiveness

The world has limited resources compared to their needs. The management always focuses on
utilizing the limited resources in an efficient and effective manner. Every function is given a
limited number of resources by the organization. Operations functions of which outputs generate
the revenue for the organization is also given limited resource that require a proper operations
strategy to utilize the given resources (Reid & Sanders, 2011). Further, strategy acts as a plan
focusing on achieving the goals and objectives of the organization (Wheelen & Hunger, 2000).

1.1 Developing business strategy

Reid and Sanders (2011) take the view that a business strategy is a long-term plan for the company.
The results of environmental scanning, the company mission, and the core competencies of the
organization provide the basis for developing the business strategy of the organization. Further,
business strategy has been defined as a manner of accomplishing the competitive advantage of the
organization by Ohmae (1982). According to Porter, mainly an organization can create a
competitive edge in terms of low cost or differentiation. An organization cannot achieve low cost
and differentiation at the same time. The product is to be differentiated the cost will go high and
vice versa.

1.2 Developing operations strategy

Operations are the main effective function in an organization as it outputs the profit-generating
units, hence requiring very special attention (Shavarini, Salimian, Nazemi, & Alborzi, 2013).
Operations activities use most of the
organization’s capital and human
resources. Then initially they are not in
a position to create a competitive
advantage for the organization. To pay
attention to the operations strategy
more than ever before, product-process
matrices were introduced (Hayes &
Wheelwright, 1984). This matrix
identified process structures which
include job shop to continuous Figure 1 Operations Strategy Perspective

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production, and the product structures lay between low standardization to high standardization. In
addition to that, there are different perspectives on operations strategy namely top-down
perspective, market requirement perspective, bottom-up perspective, and operations resources
perspective (slack, Brandon-Jones, & Johnston, 2013). The top-down perspective refers to what
the business wants operations to do, the market requirement perspective refers to what the market
position requires operations to do, the bottom-up perspective means what day-to-day experience
suggests operations should do, and finally the operations resources perspective refers to what
operations resources can do. Organizations can use an operations strategy process which is starting
from operations strategy formulation and ending with operations strategy control through
operations strategy implementation and monitoring.

Figure 2 Operations strategy formulation porcess

1.3 Competitive priorities

Competitive priorities can be identified in four categories as cost, quality, time, and flexibility.
Some organizations try to create their competitive edge in cost. They try to have the minimum cost
against their competitors so that their price is low compared to rivals. Further, some companies try
to compete with their rivals in terms of quality. Nevertheless, when an organization focuses on
cost, the quality has to be sacrificed, when an organization focuses on quality, cost has to be
sacrificed. Next, companies try to produce quality products in a very short time. Organizations
cannot achieve both time and flexibility which is the other competitive priority. Addressing the
changes in customer needs and expectations refers to flexibility. When the organization
environment including the customer expectations changes frequently the speed cannot be
achieved.

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The Sri Lankan apparel industry is well known for quality apparel and textiles (L.Ranasinghe,
2018). Evidencing the competitive priority theories, the price of Sri Lankan apparel is higher than
the competitors due to high cost which affects the competitive power of the industry (Rathnayake,
Mlasha, Dissanayake, & Gunathilake, 2022). Moreover, Sri Lankan apparel sector is recognized
for its speedy delivery and reality as well to address global brands like Victoria’s Secret, Nike,
Triumph, Speedo, and so forth (M.M.L.C.Gunathilake & Mel, 2016). However, the cost, quality,
and on-time delivery are entry qualifications to enter the international market (Rathnayake,
Mlasha, Dissanayake, & Gunathilake, 2022). To better use of competitive advantage, the entire
company’s strategies should be aligned. The business and the operations strategy should be
aligned.

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2 Functions of operations management

2.1 Product designing
Consumers are attracted to a product because of its appearance, color, texture, and performance.
Hence, designing the product is essential. Product design is a process that defines the
characteristics of the product and the features. It brings the marketing professionals for instance
the marketing analysts, art directors, sales forecasters, engineers, and finance professionals
together. When it comes to the nature of the product, a good and service require different product
design approaches. This process starts with the idea development. The basic idea is from the
customers which is collected through market research. The idea should be evaluated considering
the functional requirements (i.e. Operations, marketing, and finance). This step is called product
screening. Next, the preliminary design of the product should be developed and it should be tested
ad refined. Finally, the designers come up with the final product design. There are some factors
impacting the product design as design for manufacture, stage of the product in the product life
cycle, concurrent engineering, and so forth (Reid & Sanders, 2011). Traditionally, the companies
has developed physical prototypes. However, with the technological developments they have
replaced their physical prototypes to virtual prototypes for approval of customers. Further, some
organizations use avatars in showing sizes for the products. Through that, they reduce the product
development times.

For example, when designing a car, the design team would consider factors such as the shape of
the car, the color of the exterior and interior, the texture of the materials used, and the car's
performance specifications. In contrast, when designing a banking app, the design team would
focus on the user interface, the app's functionality, and the ease of navigation.

Additionally, a popular example of virtual prototypes can be seen in the fashion industry. Fashion
designers can create virtual prototypes of their designs using computer-aided design (CAD)
software. This allows them to experiment with different colors, fabrics, and styles without creating
physical prototypes, saving time and resources. The use of avatars in the fashion industry also
allows designers to showcase how the clothing will fit on a variety of body types, improving the
accuracy of the final product.

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2.2 Capacity planning

“Capacity refers to the maximum level of value-added activities that a process or operations can
achieve under normal operating conditions”. (slack, Brandon-Jones, & Johnston, 2013). The
output rate-setting process for a facility to be accomplished can be defined as capacity planning
(Reid & Sanders, 2011). Capacity planning and sales forecasts have an interrelationship. When the
capacity is planned, the forecasted units are important as the capacity is planned to meet the
forecasted figures. Design capacity and effective capacity are well-known capacity concepts.
When a company is making the decision to change its capacity, it will be beneficial to think of the
economies and diseconomies of scale which lead to long-run production costs. The company
should ensure that the average unit cost does not increase as a result of the capacity increases.
Companies use Enterprise Resource Planning software in planning the company’s capacity.

For instance, a manufacturing company that produces electric vehicles may use capacity planning
to determine how many vehicles they can produce within a given period of time. They may base
their capacity on the forecasted demand for the vehicles, as well as the availability of resources
such as materials, labor, and equipment. If the company is considering increasing its capacity, they
may evaluate the economies and diseconomies of scale associated with the decision. For example,
increasing production may lead to cost savings due to efficiencies of scale, but may also increase
costs due to the need for additional resources or changes in the production process. By considering
these factors, the company can determine the optimal level of capacity to meet demand while
minimizing production costs. They can then use Enterprise Resource Planning software to plan
and manage their capacity to ensure they are meeting production goals efficiently.

2.3 Inventory planning

Inventories may exist in different forms as physical inventories, queues of customers, and digital
information in databases (slack, Brandon-Jones, & Johnston, 2013). Basically, the organization
keep inventories to meet the future uncertainties, to reduce the ordering and transportation cost, to
carry the production process smoothly, and so forth. Basically, the inventories can be categorized
as raw materials, components, work-in-progress, finished goods and distribution inventory.
Further, there are specific cost concepts involve in the inventory as item cost, holding cost, capital
cost, storage cost, and risk cost. Organizations should manage the inventory, minimizing the total
inventory cost. Hence, the inventory of the organization should be management well otherwise the

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profit will be affected. ABC, EOQ, JIT are few of inventory management techniques that
organization can adopt. Organizations use Enterprise Resource Planning (ERP) software for
planning the inventory.

For example, a manufacturing company that produces cars will have inventories of raw materials
such as steel, plastic, and rubber. They will also have inventories of components such as engines,
transmissions, and tires. Work-in-progress inventory will include partially assembled cars on the
production line, and finished goods inventory will include completed cars awaiting distribution to
dealerships. The company will also have distribution inventory, which includes cars in transit from
the factory to dealerships or in storage at regional distribution centers.

In addition, consider a retail store that sells clothing. The store will have inventories of raw
materials such as fabrics, buttons, and zippers, as well as finished goods inventory of clothing
items. Work-in-progress inventory will include clothing items being altered or repaired. Queues
of customers waiting to pay for their purchases can also be considered inventory, as they represent
a delay in the delivery of the service. Digital information in databases, such as online inventory
levels, can also be considered inventory.

Proper inventory management is essential for both companies to ensure that they can meet
customer demand while minimizing costs associated with holding inventory. By using inventory
management techniques like ABC analysis, EOQ, and JIT, companies can optimize their inventory
levels to reduce costs and improve their bottom line. The use of ERP software can help companies
manage their inventory by providing real-time inventory data and automating inventory-related
processes.

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3 Quality management approaches

3.1 Total quality management
“Quality is meeting and exceeding the present and future requirements of the customer on a
continuous basis”. (Charantimath, 2017). There are different approaches in defining the quality
namely the transcendent approach, the product-based approach, the user-based approach, the
manufacturing-based approach, and the value-based approach all together it is called Garvin’s
approach to defining quality. Eliyahu M. Goldratt. W. Edwards Deming and Joseph Juran are a
few of quality gurus. Total quality management has been evolving since 1900 starting with
operator inspection and ending with TQM zero defect strategy. There are principles of total quality
management such as customer focus,
leadership, involvement of people,
process approach, systems approach to
management, continuous improvement,
factual approach to decision making,
and mutually beneficial supplier
relationships.

When it comes to the apparel sector

quality is a vital factor for the survival
in the industry. (Abeykoon & Alwis,
2015). Previous research has found that
the apparel organizations who
implement TQM would be pursuing a Figure 3 Evolvement of TQM

high quality strategy and will deliver a

high quality performance as well. According to the study carried out by Abeykoon and Alwis
(2015), 74.14% of organizations implement high level of total quality management practices and
25.8%.

3.2 Lean management

Krafcik (1988), Womack (1990), Liker’s (1996) are a few of the contributors to the lean
management (LM) which can be defined as zero wastage originated in Japan after the second world

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war. The main goal of LM is to be agile to customer demand, aiming zero wastage. LM can provide
a competitive edge for the manufacturers as it reduces the cost and improve productivity and
quality. Further, there are quantitative and qualitative benefits of lean management. Quantitative
benefits are reductions in lead time, processing time, cycle times, set up time, and so forth.
Qualitative benefits are morale employees, job satisfactions, and so forth (Bhamu & Sangwan,
2014). Zero-waste designing is a new concept in the apparel industry. Further, in Sri Lanka, the
fabric cut pieces are resold to persons without creating a waste.

An example of the application of lean management principles can be seen in Toyota's production
system, which is considered a leading example of lean manufacturing. Toyota implemented several
lean management techniques, such as Just-In-Time (JIT) production and the use of Kanban
systems, to reduce waste and improve efficiency in their production process. As a result, Toyota
was able to produce high-quality vehicles at a lower cost than their competitors, giving them a
significant competitive advantage in the automotive industry.

Another example of zero-waste designing in the apparel industry is the brand Eileen Fisher, which
has implemented a take-back program for their clothing. Customers can return their old Eileen
Fisher clothing, which is then either resold as secondhand clothing or repurposed into new
garments. This program has helped to reduce the amount of clothing waste that ends up in landfills
and promotes sustainability in the fashion industry.

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4 Critical path method (CPM)

4.1 Network diagram

2 C 5
3 4 3 7 8
F
A D Dummy 01
1
3 3
1 4 G 6
0 0 7 7 2 9 9
4 3
B E
3
4 4

Project duration = 4+3+2 = 9 days

Critical activities = B, E, G
Non-critical activities = A, C, D, F

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4.2 Usage of CPM

The Critical Path Method clarifies the relationships between the activities (Slack, Brandon-Jones,
& Johnston, 2013). In apparel sector, it takes a considerable time in product development. Hence,
the companies should try to reduce the time consumer for that activity. The outputs of CPM are
the shortest time to complete the project, earliest and latest time that an activity can start and ends,
critical activities, non-critical activities and so forth. Basically the Critical Path Method is used for
project type tasks. Through CPM implementation, the organization can find the approximate time
consumed for the project. If it takes a high time, the company can reduce it. Further, activities in
a project have different degrees of importance. Through CPM, the company can identify to which
activity the most priority is required. Then, the company can priorities their resources and time for
the activities as per their relative importance. Further, Critical Path Method can be used for making
process layout of the apparels (Mohibullah & Takebira, 2017). Mohibullah and Takebira have
found that the process layout built using the traditional standard allowed value takes more time
than the process layout developed by the Critical Path Method.

For example, let's say a company is planning to launch a new apparel product line. They can use
the Critical Path Method to identify all the activities required for the product development process,
such as designing the product, sourcing materials, manufacturing, and marketing. The method will
help them determine the duration of each activity, the critical activities that must be completed on
time to ensure timely product launch, and the non-critical activities that can be delayed without
affecting the product launch timeline. By prioritizing activities based on their importance, the
company can allocate its resources and manage its time effectively to meet the product launch
deadline. In this way, the company can reduce the time taken for product development and launch
the product in the market faster. Additionally, the company can also use CPM to optimize the
process layout of its production facility to reduce the time and cost of apparel manufacturing.

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5 Process mapping techniques

5.1 Process flow
Figure 4Process flow chart
Receipt of error free fabric warehouse
and pattern from sample room

Transfer to sewing section

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5.2 Usage of process planning

Process mapping describes processes, focusing on the relationship between the activities. There
are different types of process mapping techniques as process blueprinting, process analysis, and
so forth. Moreover, there are different levels of process mapping to reduce the complexity of the
map. They are high-level mapping and lower or more detailed levels. When a process is
documented, the organization can make the process more efficient by eliminating unnecessary
activities in the process. Further, it assists newcomers to know about the current process. In
addition to that, process maps help to identify the bottlenecks which can slow the process. Using
these maps, the organization can use to brainstorm its processes. And also, helps to identify the
repetition of work, delays, unnecessary storing, non-value-adding activities, and so forth. Through
those things, the organization can more streamline the process.

For example, a clothing manufacturing company can use process mapping to improve its
production line. The company can start by mapping out the high-level process of producing a
garment, from receiving the raw materials to shipping the finished product. Then, the company
can break down each activity in more detail, such as cutting the fabric, stitching the garment, and
inspecting the finished product. By analyzing the process maps, the company may identify
bottlenecks, such as a delay in receiving the raw materials, or inefficiencies in the stitching process.
The company can then brainstorm solutions to eliminate these bottlenecks and streamline the
production process. As a result, the company can increase efficiency, reduce lead time, and
improve product quality.

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References

Abeykoon, M. W., & Alwis, C. D. (2015). The Impact of Total Quality Management Practices on
Export Performance of Apparel Exporters in Sri Lanka. Kelaniya Journal of Human
Resource Management, 104-127.

Bhamu, J., & Sangwan, K. S. (2014). Lean Manufacturing: Literature review and research issues
. International Journal of Operations and Production Management , 876-940.

Charantimath, P. M. (2017). Total Quality Management. Tamil Nadu: Pearson India Education
Service Pvt Ltd.

Hayes, R., & Wheelwright, S. (1984). Restoring our Competitive Edge: Competing Through
Manufacturing. New York : Wiley.

Karfcik, J. F. (1988). Triumph of the lean production system . Sloan Management Review , 41-52.

L.Ranasinghe, A. (2018). Supply chain management issues in the apparel sector: the case of lead
time. Moratuwa .

Liker, J. K. (1996). Becoming Lean . Portland: OR.

M.M.L.C.Gunathilake, & Mel, W. (2016). Cost benefit perspectives of backward vertical

integration: an emperical study on the texile and apparel industry in Sri Lanka. Proceedings
in management, social sciences and humanities, 9th international research conference-
KDU, Sri Lanka, (pp. 265-271). Colombo .

Mohibullah, A. T., & Takebira, U. (2017). Using Critical Path Method for Making Process Layout
of a T-Shirt withinEarliest Finish Time. Journal of Textile Science & Engineering.

Ohmae, K. (1982). The mindof strategist: the art of Japanese business . Ney York: McGraw-Hill.

Rathnayake, D., Mlasha, H., Dissanayake, C., & Gunathilake, L. (2022). Factors nehind the
success of international competitiveness of apparelindustry in Sri Lanka with special
reference to vertical integration startegy. 13th International Research Conference General
Sir John Kotelawala Defence University, (pp. 240-249). Colombo.

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Reid, R. D., & Sanders, N. R. (2011). Operations Management. In Operations Management: An

integrated apporach (pp. 28-53). John Wiley & Sons, Inc.

Shavarini, S. K., Salimian, H., Nazemi, J., & Alborzi, M. (2013). Operations strategy and business
startegy alignment model (case of Iranian industries). International journal of operations
and production management , 1108-1130.

slack, n., Brandon-Jones, a., & Johnston, r. (2013). Operations Management . Harlow : Pearson
Education Limited .

Slack, N., Brandon-Jones, A., & Johnston, R. (2013). Operations management . Harlow : Pearson
Education Limited .

Wheelen, T., & Hunger, D. (2000). Strategic Management and Business Policy. New York :
Addison-Wesley.

Womack, J. P., & Jones, D. T. (1990). The machine that changed the world . New York: Rawson
Associates .

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