Race-Tuned Extractors Australia Operations Management

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The new contracted has apprehended all the doors to flexibility, freehandedness, and comfort to the workers. The intentions of the management were undoubtedly not wrong but there is a need to analyze the capacity and substantiality of the current working process first before entering into any new contract especially in the manufacturing business. The new contract of production affected Race tuned extractors in three ways, in the first place it slowed down the production runs and processes of off the shelf systems and affected their operating and working cycle adversely. Delayed the supply of the systems and shortened the margins of contribution earned by the company from off the shelf systems by increasing the cost of inventory and holding. In the second step, the new contract also overburdened the workforces that can be an open threat to their efficiency and effectiveness of their performance. It made the company bear extra expenses of storage. The expenses were completely unproductive and the company cannot claim any of the expense from the victimized product. The business lost all its’ expected and forecasted profits and moved towards a decreasing level of performance, practically and financially both. In the third place, the business lost the contribution from its flag leading product, Custom Made (Coughlan and Coghlan 2002). This resulted in lowered reported profits and huge expenses waiting to be absorbed. The new contracts had risked the sales of the company, the quality of the systems, the efficiency of the workers, the brand name of its’, the international image of the company, and the customers that are expecting deliveries on time with the same old efficiency and quality. The new contract requires more labor, machinery, and space to get fulfilled (Lee 2011).

The daily operational decisions are required here because of the critical and very sensitive situation and position of the business in this very time. Very short termed planning is likely to be more useful and helpful rather than long term plans. The operational co-ordinations and collaboration of the manufacturing department has become very weak and unstable. The alignment of the processes and lining up the tasks is very necessary at each level of production every day in order to survive in the industry for the business. Drop by drop this pond must be filled so that assurance of the quality and efficiency must not be lost by the business. There are some operational decisions that can be applied on the daily basis in the case of Race tuned Extractors. The company can seek forward to the Lean Management techniques to apply on the daily process. Lean management is a technique that is applied to get efficiency and frequency in the operating processes in manufacturing business especially. In the very first place the business need to identify where it is overproducing. The production plan for the items must always match the demanded generated by the consumers. Once the demand is identified the business breaks that demand into proportions and assign each set of unit to be manufactured every single day. Once the delegation of every day production has been done, there will be no possible chance for the business to over produce. This allocation of units to the everyday production run will also help the business to allocate labor for the production and identify any spare capacity or time that the company may have. This will also assist the business to ascertain the efficiency and capacity of the work for that will help in the assessment of the quality of workers and products (Arora 2004).

In the second place the business must monitor the lag time between the production phases. The longer the lag time would be, the longer the product will be counted as stuck in the work in progress and the greater will charge a cost to the company. The lags must be identified and shortened. Small lags will increase the capacity of the workforce and will generate spare capacity and time that can be utilized in other useful manners. Another aspect that should be observed closely is the supply of inventory in the work in progress. Heavy volumes of inventory must not be pulled into the work in progress that in other words mean the work in progress must not be very much occupied and tied up in a way that things mess up and get out of the control of workers and management. As the Race tuned extractors were over processing and had burdened the workers beyond their capacity and talent. The capacity of the workforce and the availability of the time expected to be devoted by the workers must be kept while decision making. Race tuned Extractors were not considering the above described points that can prove to be fruitful to any manufacturing company in the time of difficulty and peace (Shim and Siegel 1999).

Another daily “to be checked” task is to observe closely whether the people and machinery move effectively between tasks to tasks and operations to operations? If so, then the workforce is proved to be highly efficient. Another aspect which can be looked upon while lining up daily operational tasks is that how much time does it take by the workers or machinery to identify any error or mistake or fault in the manufactured product? This time period must be examined closely and time wasters should be eliminated from the process of production (Krishnaswamy and Mathirajan 2010).

The management of time and team is also a daily activity to be performed by the operational manager. In the case of a heavily busy and overloaded manufacturer, time management is the only key to success along with the management of its team. The time management does not only involve the managing the time of when to start an operation and when an operation must end at. It involves many other time bounded things as well, such as, the time when inventory must be ordered, the time when the inventory must be pushed into work in progress; it involves the management of inventory levels in depth (Shim and Siegel 1999).

It is best suited to the busy manufacturing business to apply the “just in time” inventory control and ordering technique. The “just in time” JIT systems help the company to save the cost of holding inventory by ordering the required quantity only when it is required by the manufacturing process. This technique helps the company to save the costs of keeping the inventories and the associated costs of holding, obsolescence, stock outs, and stock counts. Race tuned extractors were facing huge expenses under such heads and just in time ordering approach is the best way for the business to get rid of extra unproductive expenses (Young 2009).

There can also be applied the “Theory of Constraints” TOC to the operational day to day activities of the business. The Theory of constraints helps to identify the weakest link between