Operations and maintenance.

Q1.

Comparison between manufacturing and services.

The main variations between manufacturing and service industries include are defined by,

• The nature of the output (whether tangible or intangible).
• The specific needs of customers.
• The amount of labor and automation required.
• The nature of production (on-demand or achieving a specific target).
• The necessity for a physical production setting.

On the other hand, both manufacturing and service establishments have various similarities in the production cycle. Both are essential in improving the quality of life of their customers by satisfying their specific needs. Most manufacturing organizations offer their services alongside their primary goods to ensure that the institution remains in its profit margins. The differences and similarities are expanded in the sections below.

Output.

The physical nature of the output defines the main difference between service and manufacturing organizations. Services firms offer services such as training, insurance, management, and maintenance. Such services cannot be felt by their physical presence and appearance, hence considered intangible. On the other hand, manufacturing firms produce tangible goods, and the clients can see and touch the products.

Inventories.

Service organizations provide a service when a customer requires it; therefore, they do not hold an inventory, unlike manufacturing firms. Most manufacturing companies produce goods based on potential market availability. Therefore, surplus goods produced at a particular time are stoked and delivered to the market when they are on demand. Inventories are also essential in monitoring the cost of production of various goods.

Clients.

Service firms offer their services according to the demand and needs of the customers. Therefore, even though the preparations for the services are made before the customer requires them, services cannot be offered in absence of the client. On the other hand, manufacturing industries have the freedom and the flexibility to produce goods and products without a client’s order. The production is mostly through the projection of the potential market and needs of the clients. However, some other goods are produced in good faith without the projection of clients’ needs. Though it is a poor strategy, it assures the company presence in the market, therefore, standing a chance to interest potential clients.

Labor.

Only people with specific skills and knowledge are recruited for various disciplines availed by service firms. An employee has to strictly meet the minimum requirements to be qualified for such a post. This is because service provision requires the physical presence of the employee to interact with clients. The needs of the clients may differ due to various factors specific to each client. Therefore it becomes hard to automate most of the processes involved in service delivery.

On the other hand, manufacturing involves the mass production of physical products that are later availed to the clients. Therefore, it does not include clients’ participation during the production process. It is, therefore, possible to employ casual laborers in the firms. Besides, to improve the amount of output, casual labor can be replaced by automated machines that enhance mass production.

Location.

Manufacturing firms, especially firms involved in mass production, especially for the global market, require a physical location fitted for the firms’ production capacities. The firms’ location is also determined by other factors such as the availability of raw materials and the nearness to the potential market. On the other hand, service industries do not need a physical production site. Most of the services are mobile and can be located anywhere. Also, some of the services are flexible and can be offered to the customer in their locations. In recent years due to the advancement of communication technology, some services can be provided to clients through various communication channels such as phone calls.

Q2.

Competitive priorities are crucial operational scopes a process or chain supply must follow to meet the current and future needs of both the internal and external customers. These priorities are essential to organizations since they help the industry develop reasonable, achievable goals and objectives while laying out the organization’s plan and mission. Through such priorities, an organization can remain at the course of actions that are important for its effectiveness. Companies that lose track of their competitive preferences put the business in jeopardy unless they revise and realize their priorities. Such priorities also organization put up with stiff competition put up by companies offering similar services and products.  The most common competitive priorities are,

Regardless of the importance of competitive priorities, it is not a secure establishment for many companies. Some of them spend a better time of their operation time coming up with priorities that will keep the business functional. Below is a review of the competitive priorities of Enova by Veolia, a company that a facility and services company devoted to providing the best facilities and energy management services to their clients.

Quality. Energy is one of the most crucial tools required to run many industrial processes and conduct various domestic operations. Besides, technology is gradually developing each day. One of the driving forces to technology growth is the availability of energy. Therefore, the need for power increases each day. People are, however, in need of stable, reliable energy for various operations. Enova by Veolia satisfy such requirements by providing alternatives for renewable, reliable energy such as solar power. Renewable energy sources are safe since they can be freely obtained from the environment at a minimum cost. Additionally, the company provides clients with energy efficiency and performance tips to get the most out of renewable energy sources. Therefore, by ensuring the customers get alternative reliable energy sources, Enova by Veolia identified and maintained one component of their competitive priorities.

Innovation. This is the development and nurturing of a new business idea. This is one of the components that help achieve healthy competition in businesses. Each business is striving to come up with a new business idea to attract more and more customers. Enova by Veolia is a company that has ventured into innovation by availing efficient energy and smart waste technologies to both industries and individuals. In a call to preserve the environment to prevent impacts such as global warming, industrial and domestic waste needs to be controlled. The amount released to the environment is reduced to low levels. One of the ways that can be achieved is by slowing production or stopping production in specific industries. However, slowing or stopping the production will negatively impact the production industries and clients who rely on such products, whether directly or indirectly. Enova solves this problem by providing quick waste disposal and management services that will help boost productivity and improve the quality of life for people who depend on the products.

Cost. Most of the products and services of the company are lower compared to other companies. For instance, the cost of using renewable sources of energy is much lower than electric energy supplied through the national power grid. Therefore, by providing reliable energy at a reduced cost, the company can identify a competitive priority.

The role of the operations manager in ensuring that these CSFs are achieved in an organization.

In companies with diverse operations such as Enova, all the managerial processes are handled by operational managers. The most pronounced functions of operational managers are to make sure that various products and services are produced in the right quantities and safely delivered to customers. Managers are concerned with planning and monitoring all the activities involved in the provision of various products and services. Therefore, the aspects that make up the main operation of an operations manager include, realizing the products and services that the company should be producing, facilitating the size and location of the industry based on the needs of customers and suppliers, develop and implement marketing approaches to attract new customers and stakeholders, avail equipment and techniques that will improve provision and delivery of products and services, ensure the workforce is well trained to handle various tasks in the company, and monitor and measure the quality of work done by all the workers. All the mentioned activities aim to increase the productivity of a company, reduce the production cost, and enhance the flexibility to satisfy the dynamic needs of customers. By meeting the dynamic needs, the institution enhances the quality of products and improves customer relationships with the business.

Q3.

Time-based competition.

Speed is the rate of completing a particular task according to a specific timeline. In businesses, time is a significant competitive factor that enables an organization to meet the needs of its customers, both locally and internationally, within the shortest time possible. Time-based approaches are aimed at minimizing the time used in the production of a particular product. Therefore, the product can reach the market atelier than expected. The less time that is used to accomplish a certain task, the more competitive the company becomes.

The company, Enova, by Veolia, seems to be competing for fats’ responses to the needs of its clients and the adaptation of new solutions and technologies introduced in the market. By definition, time-based competition is a competition based on the reaction and response time to various business and customer needs. I am working for Facilities and Energy Management, a company that offers its clients products and services. The company is involved in the production of both physical outputs as well as services. The company mainly concentrates on the needs of the customers. However, the output of the company is mostly price-based competition that is not based on time. Therefore, the company does not emphasize on the time-based competition.

A lot of business researchers and scholars have conducted studies and concluded that time management would help a company gain competitive advantages. However, the topic is still under research, and more evidence is required to back up this suggestion. Besides, n a modern business setting, the approach of time-based competition needs a deep understanding of the general time-based managerial processes. Comprehending such operations will help introduce different concepts into the primary activities of the company. Apart from understanding various business approaches, time-based management will help to introduce tools and techniques of governance that will change production control systems, cost management, and accounting practices, while improving the performance measurement systems based on time approaches and perspectives.

The main challenge is the lack of enough research to support the importance of time factor as a resource to enhance the management theory or categorize different management concepts. Enough research is also necessary to establish how the various time-based methods influence the modern perception of time-based competition. Therefore, for a company such as Enova by Veolia, time-based competition is not an advisable approach. This decision is based because they are a lack of universal implementation standards and strategies in such industries. It is, therefore, hard to quantify the risks and benefits associated with the time-based competition. The approach can be considered for implementation in the future if there is enough documentation of the system’s risks and benefits from real-time applications in various industries.

Q6.

The main variations between manufacturing and service industries include are defined by,

• The nature of the output (whether tangible or intangible).
• The specific needs of customers.
• The amount of labor and automation required.
• The nature of production (on-demand or achieving a specific target).
• The necessity for a physical production setting.

Basic layouts for manufacturing and service firms and their applications.

Generally, there are three basic industrial layouts that are applied in both manufacturing and service firms. They are process layouts, product layouts, as well as fixed-position layouts. Besides, other advanced layouts are used in modern organizations, and the improved designs include cellular, mixed-model assembly lines, and flexible manufacturing systems.

Functional layouts.

Functional layouts, generally known as process layouts, involve grouping similar activities in the firms into departments based on their functions and contribution. For instance, in an automotive workshop, exterior components of cars are stored in one section while interior components are stored in a different part. Another practical example is seen in stores and malls. All the products sold in stores are put into different departmental stores. For instance, the location of different clothes will be divided according to gender, the subdivided into other groups depending on the age.

Furthermore, the closes ae later divided according to size, functions, and quality. Such a layout helps customers to quickly locate the clothes they need, therefore saving on time. Besides, people assigned to various sections can manage their work into portions. It, therefore, ensure effective management.

People assigned to various sections are answerable to all the activities that take place in their assigned departments. The head of such department reports to the manager of the institutions who can independently review the operations of every sector. It is therefore easy to notice what every department is bringing to the table in its development. The managers can also see the areas that require more attention and come up with specific suggestions to improve operations in every department.

Process layout in manufacturing industries requires flexible machine handling equipment such as fork lifters that can easily navigate the narrow pathways left while handling heavy materials. Similarly, process layouts in service firms need large aisles for clients to move along while trying to access various services.

The main challenge for functional layouts is finding suitable locations to settle various departments or centers for machine handling equipment. The locations must be precise and must not inconvenience the operations of other departments in the firm. Multiple factors, such as the efficiency and the types of materials and services handled by every department, should be considered while looking for suitable locations for various departments.

Assembly lines.

Product layouts are another crucial business arrangement approach. The approaches are best known as assembly lines. The layout involves arranging activities linearly based on the sequence of operations needed to accomplish the assembly of a particular product. Each product in the industry has its specific sequence of operations designed to meet its production requirements specifically. The workflow of the various process is connected in a network that ensures order and efficiency moving from one work station to the next until the entire assembly process is accomplished.

Since the production line concentrates on producing one product, special machines and equipment can be purchased to facilitate the production process. The special machines are specially manufactured to cater for all the processing processes particular to any specific product. Such layouts are best applicable for mass production mainly to satisfy the global market of the product. Since this layout concentrates on creating a particular product, it is therefore easy to automate various processes and assign specific duties to workers working in the processing plant.

The layout is associated with various benefits. The main advantage is improving the efficiency of the production of a specific product. Efficiency makes the layout suitable for mass production. However, the layout is not flexible. It is not easy to make changes to the final output. If a significant change is required, the entire production line may need to be changed too. Inflexibility challenge is also experienced when the product demand is low.

Fixed-position layouts.

Such a production layout is essential for companies that deal with exclusive products that are bulky, heavy to move around, or fragile. An excellent example of such products is aircraft and aircrafts parts. The layout ensures that the product remains at the same point during the whole production cycle. Therefore other factors of production, such as the necessary resources, are brought to the manufacturing cite.

The movement of equipment and other resources to and from the manufacturing site is most expensive. Therefore, manufacturers prefer to leave such resources at the manufacturing cite. This leads to low utilization of resources.

Due to the vulnerabilities of the products to destruction, special care is observed at the manufacturing point. Therefore, only skilled people are allowed to work on the product. Even the slighted damage to the product at various stages may jeopardize the entire production process and lead to losses. Skilled labor is also distributed around the site to avoid overcrowding that may compromise the production processes. Special laborers are paid higher wages, which increase the production cost. On the other hand, some of the equipment used are leased, reducing the cost of purchasing costly equipment.

Q7.

Criteria used for purchasing critical decisions in the supply chain.

A complete purchasing process is comprised of various activities that ensure the efficiency of the entire holistic process. Each of the steps requires to make crucial decisions through the processing of different information and factors. The decisions made at various stages of the supply chain affect the success of the entire purchasing process. The processed data is turned into an output that is taken to the preceding purchase step. The purchasing process may vary based on the functions and objectives of a company. However, the fundamentals of the process remain constant. These fundamentals are described below.

This is the initial process of purchasing. It involves identifying the product you wish to purchase, quantity, quality, and the specific time you want to buy it. There exist two forms of requisition, a manual method created by filling manual documents. The second method involves the automatic creation of requisitions through the ERP system. The requisition must go through approval processes where the necessary authorization to purchase is made.

2. Supplier selection.

Most buyers usually identify the supplier they wish to purchase their products. The buyers might also consider other suppliers with similar products to evaluate the quality of the products.

3. Purchase order.

This document is available to the supplier identifying the intentions of purchasing the products, the quantity of the products, the total price offer of the products, the expected time of delivery, and the delivery address. The order will also include any terms and conditions.

The suppliers release the required products to the customers. After the buyers receive the goods, go through the list of products delivered, and access the goods’ quality. The goods are also accompanied by an invoice, including the cost of all the products offered.