Name :Mohammad
Alshawabkeh
‫جامعة الزرقاء‬
‫كلية االقتصاد والعلوم االدارية‬
‫قسم ادارة االعمال‬
Course: Operations Management
University id :20199046
Course instructor :Dr .Hazem Shehadeh
Course Number: 0402312
Date: 4/6/2020
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Q1- Supply chain strategies have many important strategies? Explain two strategies and
support you answer with examples?
Many suppliers
- Commonly used for commodity products
- Purchase usually depends on price
- Suppliers compete with each other
- Supplier is responsible for technology, experience, forecasting, cost, quality and delivery
Example
Sameh Mall, as the number of suppliers increases, there is competition among suppliers through prices and product
quality, which has an impact on increasing sales and this increases profitability
Vertical integration
Develop ing the ability to produce pre-purchased goods or services
- Integration may be forward, towards the customer, or backward, towards suppliers
- Can improve cost, quality and inventory but require capital, management skills and demand
- Risky in rapidly changing industries
- Compromise between a few suppliers and vertical integration
- The supplier becomes part of the company's alliance
- Financial support is often provided to suppliers through ownership or loans
- Members expect long-term relationships and provide expertise and stable delivery
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- May extend across several levels of the supply chain
EXAMPLE
Apple is one of the companies known for mastering the art of vertical integration. The company manufactures its own
A chips for its iPads and iPhones. It also manufactures the recommended touch fingerprint sensor. Apple opened a lab
in Taiwan to develop LCD and OLD screen technologies in 2015. It paid $18.2 million for 70,000 square feet of
manufacturing facilities north of San Jose in 2015. These investments allowed Apple to navigate alongside the supply
chain in underdeveloped integration, giving it flexibility and freedom of manufacturing capabilities. The company has
advanced integration as far as the laggard. Apple's retail model "where the company's products are sold almost
exclusively in company-owned locations other than Best Buy and other carefully selected retail stores" allows the
business to control its distributions and sell to the end consumer.
(Case)
suppose you have been assigned as
Director of the Medical Equipment Corporation, and since you have studied supply chain
management at your course operations management, what is your advises in improving the
supply chain management of the medical product to be more effective to prevent disease of
increasing during the Corona crisis.Answer briefly
Self-reliance in the production of medical equipment, and organizations are calling for increased production of
medicines and medical supplies needed to limit the spread of the epidemic
Q2-what do think the reason for the companies globalize there operations?
Corporate strategy is about figuring out the big pillars of a business model. The mission for the corporate strategy is:
the target markets, customers and geographies the company is going to compete in, also the differentiated value
proposition that will drive better value for the target customers over competitors. So, the big picture organizational
strategies, such as what the core competencies are to drive differentiation in the value proposition and competitive
advantage, the organization design and culture strategies.
Functional strategy is the translation of the corporate strategy to the functions, and there are two types of functions:
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1. value chain functions: value chain functions create the value proposition and go-to-market, and deliver and service
the value proposition
2. support functions: support functions support the efficiency and effectiveness of other functions
There is a relationship between Functional strategy and the corporate strategy regarding
changes in goals strategies. What do you think of the mechanism of operational integration
between Functional strategy and the corporate strategy especially during corona crises?
Universities as case study
There has become an integration between Zarqa Private University's strategy and the career
strategy, so that distance learning has been adopted through the dedication of members of the
administrative and teaching bodies in distance learning, instead of face-to-face learning.
Q3-Work-cell layout, warehouse layout. Product oriented layout is types of layout. Explain
briefly the difference between them?.
A-
Warehousing and Storage Layouts
Objective is to optimize trade-offs between handling costs and costs associated with warehouse space
Maximize the total ―cube‖ of the warehouse – utilize its full volume while maintaining low material handling costs
Automated Storage and Retrieval Systems (ASRSs)
ASRSs can significantly improve warehouse productivity.
Typically requires Automatic Identification Systems (AISs) and effective information systems.
Cross-Docking
A logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or
retail chain with marginal to no handling or storage time.
A computerized logistics system is required for accurate product identification.
The global retail giant, Wal-Mart uses this strategy to gain a huge competitive advantage over it’s competitors.
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Warehouses for Product Customization
Value-added activities are performed at the warehouse (warehouse assembly jobs are common nowadays)
Enable low cost and rapid response strategies (Warehouses adjacent to major Airports)
Assembly of components
Loading software
Repairs
Customized labeling and packaging
B- Work Cells
Reorganizes people and machines into groups to focus on single products or product groups (PART FAMILIES)
Group technology is a philosophy wherein similar products are grouped together
Processes required to make these similar parts are arranged as Work Cells
Similarity can be either in shape, size or in manufacturing process
Production Volume must justify forming the cells
Part families
Part families with similarity in shape
Part families with similarity in manufacturing process
Advantages of Work Cells
1.Reduced work-in-process inventory
2.Less floor space required
3.Reduced direct labor, and setup cost
4.More employee participation
5.Increased use of equipment and machinery
C- Product-Oriented Layouts
Fabrication line
Builds components on a series of machines
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Machine-paced
Require mechanical or engineering changes to balance
Assembly line
Puts fabricated parts together at a series of workstations
Paced by work tasks
Balanced by moving tasks
Both types of lines must be balanced so that the time to perform the work at each station is the same
Product-Oriented Layouts
Advantages
1.Low variable cost per unit
2.Low material handling costs
3.Reduced work-in-process inventories
4.Easier training and supervision
5.Rapid throughput
Disadvantages
1.High production volume is required to be justifiable
2.Work stoppage at any point ties up the whole operation
3.Lack of flexibility in product or production rates
Because of the Corona crisis, there will certainly be a difference between the traditional
layout of organizations and the new layout? What do you think of the new types of layout
.Answer briefly
There are many organizations that have adopted serious planning mechanisms in line with the Corona crisis. For
example, the government immediately established the Crisis Management Center, which is a rapid planning process to
find the necessary solutions to combat the Corona epidemic.
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Q4-Choosing the project site is one of the important decisions that must be taken by the
operations manager.?
The location is not suitable for being in the midst of residential areas
It is proposed that the oil refinery be located in an uninhabited area
(Case)
In your opinion, what is the importance of choosing the right site Do you think that
choosing the location of the oil refinery company was an appropriate choice, taking into
account the green environment, and if not, what is the appropriate proposal to solve this
problem? Answer briefly
Choosing the right site is a key component of the organization's success. If the site is in the wrong place, there will be
difficulty in reaching suppliers and customers to the organization.
And choosing the optimal site has an important role in the success of the organization and increasing profitability
Q5- Explain The main issues of product design?
Product design requires managers to evaluate product options. Addressing the Sustainability
and Life Cycle Assessment are two ways to do this. And sustainability means meeting the
needs of the present without compromising the ability of future generations to meet their
needs. Sustainability assessment is a formal environmental impact assessment of a product
The impact of the Corona pandemic on the world has led in some organizations to change the
types of their products, and as required by the current circumstance, due to the fact that some
products have become not required by consumers
The Corona crisis has caused drastic changes in production lines, for example, Ford has
shifted from car production lines to ventilator production lines, and this change has led to a
change in machines and workers
? Discuss briefly
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Q6-Explain why services sector have agreat importance nowadays?
Because it represents an important source of growth in added value and job creation and works to solve
unemployment problems globally by increasing employment rates in the economy as a whole.
important services during the crisis in Corona is the delivery services. Do you think that
these services can continue after the crisis of Corona? Discuss briefly
I think that some services will continue, which has a positive effect, especially delivery
services, as it works to save effort and money on the consumer
good luck
A- Write briefly about the Quality Function Deployment?
1- What are the most important challenges facing the operations manager?
1. determining what will satisfy the customer.
2. translating those customer desires into the target design .
The idea is to capture a rich understanding of customer wants and to identify
alternative process solutions. This information is then integrated into the
evolving product design. QFD is used early in the design process to help
determine what will satisfy the customer and where to deploy quality efforts .
One of the tools of QFD is the house of quality, a graphic technique for
defining the relationship between customer desires and product (or service).
Only by defining this relationship in a rigorous way can managers design
products and processes with features desired by customers
2- Give an example of accompany used QFD? and write your comments
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QFD (Quality Function Deployment) was developed in Japan during the 60’s by
Akao and Mizuno as a method for product development which aims at fulfiling
customer demands.
The primary objective of this method is to assure quality since the earlier stages
of project development . Moreover, QFD is a method which enables to deploy
customer requirements into measurable quality characteristics in order to create
products and services which satisfy those requirements. According to some
authors, QFD benefits include: reduction of engineering changes, complaints,
project lead time, and costs, increase of customer satisfaction, identification of
engineering bottle neck, improvement of communication between departments,
and possibility to transmit relevant quality information from the project to
production.
COMMENT
By comparing it was verified that, in most cases, their objectives were to
identify the extent QFD has being applied in the countries and its main benefits
and experienced difficulties.
Regarding the results of the surveys, it was identified that companies started to
apply QFD aiming at increasing customer satisfaction and improving their
product development process. The majority of QFD users are large companies,
mainly to develop physical products.
Concerning the main experienced difficulties when applying QFD, the results
varied from country to country but in most cases they were relative to the lack
of resources. The principal benefits also varied among the studies. They were
associated with subjective issues such as communication improvement between
company functional areas.
B- A products are born. They live and they die. Usually pass thru a product life
cycle.so operations managers must be prepared to develop new products thru
some strategies. Explain briefly the product life cycle strategies
Product Life Cycles
It may be helpful to think of a product’s life as divided into four phases. Those phases are:
(introduction, growth, maturity, and decline). Product life cycles may be a matter of a few
days , months, years . Regardless of the length of the cycle, the task for the operations
manager is the same: to design a system that helps introduce new products successfully. If
the operations function cannot perform effectively at this stage, the firm may be saddled with
losers—products that cannot be produced efficiently and perhaps not at all .
Life Cycle and Strategy
Just as operations managers must be prepared to develop new products, they must also be
prepared to develop strategies for new and existing products. Periodic examination of
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products is appropriate because strategies change as products move through their life cycle .
Successful product strategies require determining the best strategy for each product based on
its position in its life cycle. A firm, therefore, identifies products or families of products and
their position in the life cycle. Let us review some strategy options as products move through
their life cycles .
Product Life Cycles phases:
Introductory Phase
Because products in the introductory phase are still being “finetuned” for the market, as are
their production techniques, they may warrant unusual expenditures for (1) research, (2)
product development, (3) process modification and enhancement, and (4) supplier
development .
Growth Phase
In the growth phase, product design has begun to stabilize, and effective forecasting of
capacity requirements is necessary. Adding capacity or enhancing existing capacity to
accommodate the increase in product demand may be necessary .
Maturity Phase
By the time a product is mature, competitors are established. So high volume, innovative
production may be appropriate. Improved cost control, reduction in options, and a paring
down of the product line may be effective or necessary for profitability and market share .
Decline Phase
Management may need to be ruthless with those products whose life cycle is at an end.
Dying products are typically poor products in which to invest resources and managerial
talent.
Q2: What are the layout strategies? Explain
1-What type of layout the place your working? If you are not working write about
your university? What is your suggestion for improvement
The Strategic Importance of Layout
Decisions Layout is one of the key decisions that determines the long-run efficiency of
operations. Layout has strategic implications because it establishes an organization’s
competitive priorities in regard to capacity, processes, flexibility, and cost, as well as quality
of work life, customer contact, and image. An effective layout can help an organization
achieve a strategy that supports differentiation, low cost, or response .
The objective of layout strategy is to develop an effective and efficient layout that will
meet the firm’s competitive requirements . These firms have done so. In all cases, layout
design must consider how to achieve the following :
Higher utilization of space, equipment, and people
Improved flow of information , materials, and people
Improved employee morale and safer working conditions
Improved customer/client interaction
Flexibility
Types of Layout. Layout decisions include:
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1-the best placement of machines (in production settings(
2-offices and desks (in office settings)
3-service centers (in settings such as hospitals or department stores
An effective layout facilitates the flow of materials, people, and information within and
between areas. To achieve these objectives, a variety of approaches has been developed :
1. Office layout: Positions workers, their equipment, and offices to provide for
movement of information .
2. Retail layout: Allocates display space and responds to customer behavior .
3. Warehouse layout: Addresses trade-offs between space and material
handling .
4. Fixed-position layout: Addresses the layout requirements of large, bulky
projects such as ships and buildings .
5. Process-oriented layout: Deals with low-volume, high-variety production.
6. Work-cell layout: Arranges machinery and equipment to focus on
production of a single product or group of related products .
7. Product-oriented layout: Seeks the best personnel and machine utilization
in repetitive or continuous production .
we do know that a good layout requires determining the following :
A. Material handling equipment: Managers must decide about equipment to be used.
B. Capacity and space requirements: Only when personnel, machines, and equipment
requirements are known can managers proceed with layout and provide space for each
component .
C. Environment and aesthetics: Layout concerns often require decisions about
windows, planters, and height of partitions to facilitate air flow, reduce noise, and
provide privacy .
D. Flows of information: This issue may require decisions about proximity, as well as
decisions about open spaces
E. Cost of moving between various work areas: There may be unique considerations
related to moving materials or to the importance of having certain areas next to each
other.
Q3-Define Supply Chain Management and Explain the six sourcingstrategies.
The objective of supply chain management is to coordinate activities within the supply
chain to maximize the supply chain’s competitive advantage and benefits to the ultimate
consumer
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The Supply Chain’s Strategic Importance, most firms spend a huge portion of their
sales dollars on purchases. Because an increasing percentage of an organization’s costs
are determined by purchasing, relationships with suppliers are increasingly integrated
and long term. Combined efforts that improve innovation, speed design, and reduce
costs are common. Such efforts, when part of a corporatewide strategy, can dramatically
improve all partners’ competitiveness. Supply chain management describes the
coordination of all supply chain activities, starting with raw materials and ending with a
satisfied customer. Thus, a supply chain includes suppliers; manufacturers and/or
service providers; and distributors, wholesalers, and/or retailers who deliver the product
and/or service to the final customer .
Many Suppliers
a. Commonly used for commodity products
b.Purchasing is typically based on price
c.Suppliers compete with one another
d.Supplier is responsible for technology, expertise, forecasting, cost, quality, and
delivery
Few Suppliers
a.Buyer forms longer term relationships with fewer suppliers
b.Create value through economies of scale and learning curve improvements
c.Suppliers more willing to participate in JIT programs and contribute design and
technological expertise
d.Cost of changing suppliers is huge
e.Trade secrets and other alliances
Vertical Integration
a.Developing the ability to produce goods or service previously purchased
b.Integration may be forward, towards the customer, or backward, towards suppliers
c.Can improve cost, quality, and inventory but requires capital, managerial skills, and
demand
d.Risky in industries with rapid technological change
Joint Ventures
a.Formal collaboration
•Enhance skills
•Secure supply
•Reduce costs
b.Cooperation without diluting brand or conceding competitive advantage
Keiretsu Networks
a.A middle ground between few suppliers and vertical integration
b.Supplier becomes part of the company coalition
c.Often provide financial support for suppliers through ownership or loans
d.Members expect long-term relationships and provide technical expertise and stable
deliveries
e.May extend through several levels of the supply chain
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Virtual Companies
a.Rely on a variety of supplier relationships to provide services on demand
b.Fluid organizational boundaries that allow the creation of unique enterprises to
changing market demands
c.Relationships may be short- or long-term
d.Exceptionally lean performance, low capital investment, flexibility, and speed
meet
If you are the operation manager and you are in charge of handling the
management of the supply chain system at your country during the corona time?write
down som suggestion to make the supply chain more effective
Q4- Give the difference mission and vision and give example of the mission and
vision of your company and what your suggestion or changes? Explain
Q-5What is the Strategic importance of location? Explain
1.One of the most important decisions a firm makes
2.Increasingly global in nature
3.Significant impact on fixed and variable costs
4.Decisions made relatively infrequently
5.Long-term decisions
6.Once committed to a location, many resource and cost issues are difficult to
change
7.The objective of location strategy is to maximize the benefit of location to the
firm Options include:
a- Expanding existing facilities
b- Maintain existing and add sites
c-Closing existing and relocating
Q6- CASE STUDY
.
GOOD LUCK
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