Operational Management of M Porting Company

Question: Discuss about theOperational Management of M Porting Company. Answer: Introduction A company is a separate legal entity from its owners with an objective to carry out commercial activities (Murray, 2009). The production department involving turning ideas into products has operational costs. Operations management aims to this minimise costs and maintaining high efficiency. Minimisation of unnecessary expenditures enables a company to maximise profitability. This paper seeks to analyse the sewing operations of M porting company. M porting company manufactures fabric covered metal canisters. Cartridges store and transport cameras and survey equipment. The types of canisters made are standard canisters with hinged lids and discount canisters with flat lids. The assembly of the cartridges gets done within the company except for the sewing operations that are outsourced. M porting company increased its advertising after Donnie, one of the company owners, developed a canister to hold survey equipment. This led to an increase in the production demand. With the rise of application, M Porting got required by the customers to produce more so as to meet the market demand. In the next six months, they are expected to produce an average of one thousand standard canisters and five hundred discount canisters per month. An increase in demand has posed challenges to the production system. Changes are necessary to ensure the company remains profitable (Murray, 2009). M porting company outsources its sewing operations. The reason is that the current facility layout gets designed for product development rather than production. Outsourcing has led to additional labour cost and transportation cost that could get reduced. Besides, there is a product lead time. From the latter argument, outsourcing is both advantageous and disadvantageous if applied by M Porting Company. Donna, the other company owner, has decided to move the sewing operations to the facility. She has two sewing machines and has a challenge of whether to add more to ensure efficiency. The sewing operations are for manufacturing fabric covers and carrying straps (Bharadwaj, 2010). According to the provided indented bills of materials, every canister requires one fabric cover and one carrying strap. If every canister is attached to one fabric cover that conforms to its role, productivity rate is high. With a demand of fifteen thousand canisters, a total of fifteen thousand fabric covers and carrying straps remain required. Two sewing machines will, therefore, be inadequate. Table 1 on route sheets for parts and assemblies shows that a single sewing machine takes fifteen minutes to produce a single fabric cover and would take eight minutes to make a single carrying strap. If one device provides fabric covers and the other carrying straps, on average, for every fabric straps made, two carrying straps are built. This would slow down the assembly of canisters. With a slower rate over which the assembly cartridges offer productivity, this means that the overall productivity of the sewing device is reduced. An increase in the manufacture of fabric straps will require additional devices hence dividing the work among machines. This decision requires that available facility space should get considered (Jones, and Robinson, 2012). With a change of layout, Donna can add a sewing machine. Amending the design over which more devices can be added, the number of sewing machines would need to be increased respectively. The new engine matches the rate of production of fabric covers with that of carrying structures ensuring faster assembly, unlike the existing one. Further, there is a possibility to multitask the company's operations when using the new machine since it can produce more and in a diverse manner. I would recommend to Donna to change the layout of the companys facility. Change in design will increase space availability to accommodate all the operations. Once reorganised, Donna can add one more machine to the sewing area. Adding more than one machine will not only congest the space but will also be a wasted investment. More devices will end up underutilised. Further, Donna should avoid outsourcing of sewing operations for this leads to reduction and avoidance of incurring unnecessary expenditures. In conclusion, service management is necessary for an organisation to ensure operating costs get minimised. Cost minimization gets achieved by reducing or eliminating unnecessary cost. In M porting company, outsourcing of sewing operations increases its operational costs and deciding to carry out the whole manufacturing process reduces this costs. Increasing the number of machines by one also ensures efficiency. The management of M Porting Company needs to keep pace with the current demands, and this may be achievable by providing a responsive tune to the market demand, this is feasible by minimising costs as much as possible and optimising the opportunities for profitability. References Mayson, S., French, D., Ryan, C. (2007). Mayson, French and Ryan on company law. Oxford: Oxford University Press. Bharadwaj, N. (2010). BPEL PM and OSB operational management with Oracle Enterprise Manager 10g Grid Control. Birmingham, U.K.: Packt Pub. Murray, B. (2009). Power markets economies: Structure, costs, operation. Chichester, West Sussex, and the United Kingdom: Wiley. Jones, P. Robinson, P. (2012). Operations management. Oxford: Oxford University Press.