OPS FPX 5620 Assessment 1

Executive Summary

This report was commissioned by Thomson Tools after it acquired Mainland Tools, a small Chinese tool manufacturer. The report is meant to examine Mainland’s processes and infrastructure because it will now be part of Thomson’s supply chain. Mainland Tools is currently housed in an older building that was constructed in phases as the company expanded. Besides selling products, the firm offers technical support to North American customers. Effective supply chain management is dependent on successfully managed internal operations, which are run by an operations manager (Venkataraman & Pinto, 2018). Effective administration of internal activities improves the quality of services and products, reducing costs to customers, increasing product quality, and enhancing services (Venkataraman & Pinto, 2018). Consequently, operations management within a supply chain entails proper planning and collaboration between the internal business leaders and external supply chain associates (Venkataraman & Pinto, 2018). Operations management is, thus, significant in terms of promoting a successful business and spreading its impact to day-to-day operations (Venkataraman & Pinto, 2018).

Thomson’s Operations Manager will conduct an evaluation of Mainland’s existing operational status and supply chain infrastructure. This evaluation is essential to Mainland Tools being a seamless integration into Thomson’s worldwide marketplace. The operations manager has been tasked with locating issues and recommending improvements. The evaluation will be conducted through a systems-thinking approach, with consideration of technology, facilities, and inventory management.

Brief Partner Company Description

When its operations and infrastructure were being examined, several issues were found that were inhibiting efficiency. Among them are excess inventory and order loss prepared, which account for 15% of total orders and represent the company losing approximately $900,000 each year. The primary source of losses is the outdated order-processing system. As the company expanded, its departmental organization and setup were poorly planned, leading to leasing an offsite warehouse a distance of five miles from headquarters to store excess inventory. These inefficiencies will affect Mainland’s promptness in shipping products, which can damage Thomson’s reputation for supply chain efficiency. These inefficiencies will be explored in greater detail in the company analysis section.

Company Analysis

Systems thinking is a structured approach to understanding complex behavior and detecting systemic issues that may result in unintended consequences (Ballé, 2018). In a supply chain, internal or external events may influence operations significantly, directly or indirectly (“Supply…,” 2016). Systems thinking in this analysis helps examine the interrelation and interaction in Mainland Tools’ operations (“Supply…,” …” 2016).

Lean manufacturing and agile manufacturing are two strategies that can help to eliminate waste or allow rapid adaptation to change (Venkataraman & Pinto, 2018). Lean manufacturing, otherwise referred to as lean production, involves minimizing non-value-added processes or activities (Venkataraman & Pinto, 2018). Agile manufacturing, however, allows for quicker responses to external adjustments with the use of specialized tools and processes (Venkataraman & Pinto, 2018). While agile manufacturing could be beneficial for Mainland Tools, the immediate focus should be on implementing lean manufacturing. This strategy will help identify areas for improvement, ultimately increasing the company’s value and profitability (Mirdad & Eseonu, 2014). Lean production and systems thinking complement each other, making them effective in improving operations (Ballé, 2018).

OPS FPX 5620 Assessment 1: Analyzing Global Supply Chain Infrastructure and Operations  

Executive Summary

This section outlines the purpose of the report, which evaluates Mainland Tools’ processes and infrastructure following its acquisition by Thomson Tools. Operations management plays a vital role in the supply chain.

Brief Partner Company Description

Provides an overview of Mainland Tools, including its inefficiencies in inventory management, outdated processes, and how these issues could negatively impact Thomson’s reputation for supply chain efficiency.

Company Analysis

This section analyzes Mainland Tools’ operations using systems thinking and lean manufacturing, providing recommendations to address inefficiencies and improve overall performance.