Title: “Operations strategies and management coursework #2

1. A leading UK producer currently has very high demand for an essential product ‘X’ globally. They have outsourced some of their production activities to Asia and have recently been assessing whether to implement blockchain technology in their supply network. Due to the current Covid-19 disruption, the company is experiencing many challenges across their production sites and supply networks. In view of this disruption they plan to (1) re-design how they manufacture product ‘X’ and (2) reconfigure their supply network based on a number of strategies and principles.

(a) Outline and explain two strategies that the producer could implement and why 

(b) Assuming that the supply network of this company is ‘resilient’ (i.e., it can quickly alter its operations in the face of changing business conditions), analyse what kind of sourcing strategies and market-based supply relationships this company could have both during and after this disruption event.

2. A UK company is currently producing hand sanitisers of different mixes and grades based on where they are used (i.e. both for domestic use and hospital use). They believe that quality is the most important single factor affecting performance relative to their competitors. Here, they consider the ‘sand cone’ model, along with total quality management (TQM), as the key elements of their quality management programme. The ‘sand cone’ model emphasises lasting improvements in performance and quality, while the European Foundation for Quality Management (EFQM) model looks at quality excellence. Due to the increasingly high demand for hand sanitisers, this company has been asked by the UK government to ramp up their production in the UK during the Covid-19 disruption

(a) Justify the company’s use of the ‘sand cone’ model and associated performance measures, using examples to support your arguments. In addition, explain how they could use TQM principles to meet the needs and expectations of UK customers during the Covid-19 pandemic.

(b) Outline and explain the quality characteristics that could help the company design new products and supply network solutions and analyse how the company might assess results using the EFQM model. 

3. A pharmaceutical manufacturer is producing paracetamol tablets and selling the products to pharmacies and retail stores in the UK. Usually the pharmacies do not keep this product in large quantities as most of them operate using a ‘lean’ strategy of operations based on forecasted demand. The Covid-19 situation has created major disruptions across pharmaceutical supply networks. Most retail stores are now unable to replenish paracetamol tablets adequately on their shelves and they are uncertain about future supplies.

(a) Based on the various types of inventory that exist, discuss possible actions that could be taken by retailers and producers in response to these major disruptions e.g., different inventory strategies at pharmacies and retail stores, manufacturing facilities and the suppliers’ base.

(b) Analyse and reflect on your understanding of how operations strategies could minimise uncertainty in terms of inventory and underutilised resources.

4. The UK plants of JCB, the British digger producer, have been suffering as a significant number of JCB’s suppliers in China are not able to supply enough parts due to the outbreak of Covid-19. Some of their suppliers based in China remain closed, while others are working at reduced capacity. Due to the pandemic, the organisation’s product mix is also varying significantly. Hence, capacity is being examined at the ‘aggregate’ level. Being a leading manufacturer, JCB looks at the traditional capacity management strategies from three outlooks: short-term, medium-term, and long-term. The company is assessing utilising the ‘gig’ or ‘shared’ economy as a method of flexing capacity. 

(a) Considering JCB’s current situation, discuss strategies and planning outlooks with appropriate rationale that the company could follow to produce at a capacity that satisfies their customer base.

(b) In light of the company’s recent assessment, analyse how JCB might manage capacity using the ‘gig’ economy.