The Most Important Raw Material - Assignment Example

Other 03 May April ify each of the following examples of inventory by form  (raw materials, work in process, finished goods) and by function (decoupling, pipeline etc). Inventory (stock) can be devided into three: Raw material Work in process Finished product Raw material is an important element used to transform input into output or product. The main responsibility of operations management is to effectively utilize raw matierials. The raw materials also include the cost of direct and indirect materials. The functioning of operations management begins at the stage of working with raw materials and ends with the finished goods. Work in process in operations management refers to the materials entering the process of production and not the finished product. Work in process is an important factor in the production process. Finished goods are the end results of production. Sausages in boxes moving along a conveyor to the frozen goods warehouse where they will await shipment to customers Production process is the process converting input into output and it consists of raw materials, working or intermediatery processes and finished goods. “The production process is concerned with transforming a range of inputs into those outputs that are required by the market” (Operations Theory para 1). From the above example sausage is the product. There are a number of materials used in the process of making sausages. The most important raw material is meat. Other ingredients used for making sausages include salt herbs, spices, pepper, ice as well as the casing. Additional ingredients can be used for further seasoning and flavor, such as onions, potatoes, eggs, flour, protein powder, rice, dried milk, celery and bread. The working process includes cutting the meat, preparation of ingredients, mixing the ingredients and meat together, stuffing them into cellulose casing, tieing the casing at both ends, steaming the sausage and completing the process by using ice flakes. The finished good thus obtained is sausage. There are some steps involved in making available the finished goods to the market and eventually the customers. From the above example, the finished good, that is, sausage is to be taken to a place where consumers can access it. This process includes various functions, of which the most important function is trasportation. It ensures time utility and place utility. Warehousing, another function, is also essential for all types of products. Warehouses help to store the products and then supply them as and when more demand is seen. This covers the gap of demand from customers and the time taken to produce the goods. In case of sausages, frozen good warehouses are used. The function of warehouse is also to protect the product against any damage. Movement of sausage from manufacturing unit to the warehouse comes under the working process. Passengers walking from the plane to the baggage carousel to wait for baggage Baggage carousels are electronic devices that are mainly used in the airports. It is used to check the luggages of the traveller. Baggage carousel helps to find out whether a passenger is carrying any illegal or unhandled product in his baggage. In this process, raw material can be seen to be the luggage, working process is checking the luggage with the help of X-ray screening security system in the baggage carousel, and luggage that the passenger receives after checking is the finished good. Inspection is the function of baggage carousel. Spare parts (made in house) for repair of the machines used in the production of pipeline welding equipment In this case spare parts are the raw materials, there are different machines used in the pipe welding work. Thus, the repairing of welding machine is the working process. The finished product is doing the pipeline work efficiently and effectively. Production of spare parts as well as repairing can be seen as the functions. Patients waiting in a doctor’s office for their scheduled appointments From the above example, we can assume that patient is the raw material. Working process includes consulting the doctor, doctor examining the patient and understanding the disease that the patient has. In this case, doctor prescribing medicine is the finished good. Here important function is providing service to the patient. Bins of castings awaiting machining in a facility manufacturing plumbing supplies  (taps and fixtures) Taps and fixtures are the finished goods and the transferring of raw material into finished goods can be seen as the working progress. A large pot containing potatoes peeled and sliced for fries at 11:30am in a downtown restaurant that caters primarily to the work force of a large office building. Potatoes is the main raw material used to make fries. The process of peeling and slicing can be considered as the working process and fries are seen to be the finished goods. In this example, the function is preparing fries and catering to the customers. 2)Task Analysis: Task analysis is concerned with the representation and description of activities or task as well as giving structure and organization to that description. It is used to identify the activities or task performance. There are two processes generally following a task analysis. First one is to understand the dependency or sequence among different tasks. The second process is to represent how the tasks or activities fit collectively. This process representing the huge activities can be divivded into smaller components forming a rational relationship among them. “A task analysis explains the processes and inputs that are being used at this time to accomplish results” (Task Analysis Hierarchical; If- Then; and Model Based para 2). Your sandwich making company has just received 2 orders for tomorrow. The first is from the local daycare for 300 peanut butter and jam sandwiches. The second is from city council and is for 100 roast beef sandwiches. Perform a task analysis for each customer and support your ranking. The first task is to supply the received orders for 300 peanut butter and jam sandwiches to the local daycares. Next is to supply 100 roast beef sandwiches to the city council. The above two tasks are entirely different, as in terms of quantity and product type. In this case, the customer choice is different. These activities perform different tasks. The performance is based on the quantity of tasks. Each task can be a sequence of hourly, daily, weekly routine etc. First requirement is to identify the sequence of task, then to set up the standard scale and analyse the priority of tasks as in which tasks should be completed first. Finally, the set up tasks should be performed accoedingly. Ranking will be given on the basis of difficulty of performance. There is a point of view, which supports the second task because it is less difficult than the first task. 3).Raoul Ramsey had just graduated from high school and would soon start university. On his recent visit to the campus, he stopped at the bookstore. He was interested in buying a book for his introductory business course. The text for the course was available from the bookstore in two formats: bound for $54 and unbound for $28. Bound copies were also available from the used bookstore for $40. Raoul discovered that at the end of the year he would probably be able to sell either a new or used bound copy for $25 if he placed a $15 advertisement in the student newspaper. Alternatively, the used bookstore would buy bound books from him, paying $25 for a book purchased new and $15 for a used book. From these prices, the bookstore would deduct a 40% commission. Unfortunately, the unbound version of the book would have no resale value. What is the best option for Raoul? The text books are available in two types. They are: bound ones for $54 and unbound ones for $28. Raoul Ramsey was interested in buying books based on introductory business courses. The actual amount of the new bound copy is $54. But the bound copies are available from the used bookstore for $40, that is, second hand books. Buying books from used books store is better than buying the new bound copies because the amount of bound copies are lesser. Raoul discovered at the end of the year that the books can probably be sold as used bound copy for $25, also $15 was the price given in the advertisement in the student newspaper. It is the better option for Raoul Ramsey. Alternatively the used bookstore can buy the bound books from him, purchasing new books paying only $25 and $15 for used books. That is, through these prices, the booksrtore is ready to deduct the commission of 40%. Raoul understands the value of both books. The bound copy books would have resale value, while the unbound copy books have no resale value. In this case, the best options for Raoul Ramsey is to purchase books from the used bookstore. This is due to the fact that the price of used books is lesser than that of new bound copy books. 4) Due to a large increase in demand, Outwest Drillpress was considering expanding its automatic precision drilling operation, for which it charged its customers $30 per hour. The process was automatic except for setting up the controls, placing the part in a jig and removing it after drilling. Outwest officials were surprised to find that the cost of this type of equipment had doubled since they had purchased the original machine. The precision driller now costs $109000, including a $3000 installation charge. Maintenance of the present machine amounted to $2000 per year, and the electricity cost was $1 per hour. Any new equipment would incur similar expenses. With operator wages costing $15 per hour and a 6000 hour lifespan on these machines, should the company expand? Should they purchase the new machine? In this case Outwest Drillpress had better expand their business instead of buying new machine. When: a) Buy new machine: If they buy a new machine they have to meet $207000, including ($109000 is the cost of equipment,$90000 as operator wages, $2000 maintenance, $6000 is the electricity cost.) The company can earn $ 180000(6000*30) The company incurs a loss of $27000 ($207000(total cost)-$180000(total income) =-$27000) if they buy the new machine. b) Expand the business: If the company expands the business, they have to meet $154000 as its cost. It includes ($53000 cost of equipment, $3000 installation charge, $2000 maintenance$90000 as operator wage and $6000 electricity charge) Earnings of the company is $180000 (6000*30 =$180000) By expanding the business the company can earn $26000 ($180000(income)-$154000(cost) =$26000). From the above calculation, it can be suggested that expanding the company is more profitable for Outwest Drillpress than buying new machines. Works Cited Operations Theory. The Times 100- Business Cases Studies Logo. 1995. Web. 2 June 2012. Task Analysis Hierarchical; If- Then; and Model Based. Needs Assessment Knowledge Base. 2007. Web. 2 June 2012. Read More