I have read and understood the rules on cheating, plagiarism and appropriate referencing as outlined in my handbook and I declare

that the work contained in this assignment is my own, unless otherwise acknowledged. No substantial part of the work submitted here has also been submitted by me in other assessments for my degree course, and I acknowledge that if this has been done an appropriate reduction in the mark I might otherwise have received will be made

Signed:

FAZIL HUSSAIN PANIKKAVEETTIL

(for on-line submission it is only necessary to type your name in this space)

MODULE TITLE:

Operations Strategy for Industry

MODULE CODE:

UKFM-OPSI 11--01

MODULE DATE:

10th-14th October 2011

NAME/NUMBER: FAZIL HUSSAIN PANIKKAVEETTIL / 1159438

GROUP: A

THE UNIVERSITY OF WARWICK WMG FULL TIME MSc PROGRAMME

OPERATIONS STRATEGY

POST MODULE ASSIGNMENT.

CASE STUDY Halton Materials Ltd.

ii

OPERATIONS STRATEGY FOR INDUSTRY

TABLE OF CONTENTS

PAGE NO

1 CUSTOMER REQUIREMENTS OF THE TWO PRODUCT RANGES 1 1.1THE PUTTICK GRID: CUSTOMERS PERCEPTION1 1.2ORDER WINNER/ORDER QUALIFIER3 1.3 5PERFORMANCE OBJECTIVES (POLAR DIAGRAM).4 2 FORMULATION OF OPERATIONAL STRATEGY7 2.1 STRUCTURAL ELEMENTS OF SRATEGY FORMULATION7 2.1.1 VERTICAL INTEGRATION (MAKE/BUY).7 2.1.2 CAPACITY PLAN.9 2.1.3 FACILITY.10 2.1.4 TECHNOLOGY.14 2.2 INFRASTRUCTURAL ELEMENTS OF STRATEGY FORMULATION..15 2.2.1 ORGANISATION..15 2.2.2 QUALITY..16 2.2.3 WORKFORCE16 2.2.4 PRODUCTION PLANNING AND CONTROL.17

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2.2.5 PERFORMANCE MEASUREMENT.18 2.2.6 NEW PRODUCT LAUNCH..19 2.3 3RD,4TH AND 5TH SECTIONS OF TERRY HILL FRAMEWORK20 2.4 IMPLICATION AND PROBLEMS OF PRODUCTION OF TWO RANGES ON SAME CAPACITY20 2.5 BALANCED SCORECARD22 3 WORKING CULTURE DIFFERENCE IN CHINA AND U.K26 4 REFERANCES.29

LIST OF FIGURES: 1 .PUTTICK GRID SHOWING THE POSITIONS OF THE TWO DBP RANGES1 2. POLAR DIAGRAM SHOWING THE FIVE PERFORMANCE OBJECTIVES6 3. VENKATESHANS OUTSOURCING STRATEGY.8 4. CAPACITY PLAN OF AFTERMARKET AND OEE.10 5. PROCESS TYPE OF AFTERMARKET AND OEE DBP.12 6. PROCESS LAYOUT OF THE PLANT FOR AFTERMARKET AND OEE DBP13 7. BCG MATRIX..22

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LIST OF TABLES: 1. ORDER WINNER/ORDER QUALIFIER FOR AFTERMARKET AND OEE DBP3 2. THE 4VS OF AFTERMARKET AND OEE DBP.11 3. TERRY HILL FRAMEWORK SHOWING ELEMENTS OF STRATEGY20 FORMATION. 4. HOFSTEDES CULTURAL FACTORS..26

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1 CUSTOMER REQUIREMENTS OF THE TWO PRODUCT RANGES Halton materials generally manufacture Disc Brake Pads (DBP) for motorbikes as an aftermarket product range and lately they also intend to start the manufacture of the OEE product range as well. However, the customer requirements would be different for the two product ranges and the characteristics can be compared by using the different models from the module like the puttick grid, order winner/qualifier and polar diagram with respect to the customer point of view. 1.1THE PUTTICK GRID: THE CUSTOMERS PERCEPTION: The puttick grid explains the characteristic criteria of a particular product according to its complexity and demand uncertainty (watt.A, 2011) as shown in fig. HIGH PRODUCT COMPLEXITY LOW

AFTERMARKET HIGH

UNCERTAINTY

OEE

LOW Fig.1.puttick grid showing the positions of the two DBP range
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Source: operation strategy for industry, module note, watt. A (2011) sec 4, pg19.

On a customer basis, both the product ranges of DBP are of low complexity as the entire product only consists of a frictional pad attached to a mild steel back plate. For an aftermarket product range ,since the customers are mainly repair shops or individuals who carry out self servicing they would need a DBP only when the existing pads are torn out or when they feel some kind of a problem with the pads . The repair shops would make an order only when there are a lack of pads in the shop, due to which we can say that the customer requirement of an aftermarket DBP is highly uncertain and the need would be unpredictable yet urgent as the customer wouldnt want to wait for it and there should be ready-todeliver stocks of DBP .Therefore, because of the low complexity and high uncertainty the aftermarket DBP would fall on the top right handside of the puttick grid. Now, considering the DBP as an OEE product range, the complexity remains low as discussed earlier, but for an OEE DBP, the customers are motorbike manufacturers .They would require a whole set of DBP in a batch according to the production volume of the motorbikes and so they would place an order well in advance according to their purchasing schedule like once in a month or so i.e. highly certain and predictable as a customer. Therefore, the OEE product range would fall on the bottom right side of the puttick grid.

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1.2ORDER WINNERS/ORDER QUALIFIERS: Order winners and order qualifiers are specific elements that are to be the foundation of manufacturing strategies in a company (hill, 1993).The basic features that should be found in a product are its order winners and qualifiers. ORIGINAL EQUIPMENT Quality Order qualifier Order qualifier Low cost Order qualifier Order qualifier Speed Order qualifier Order qualifier Dependability Order winner Order qualifier Flexibility Order qualifier Order winner Brand name Order qualifier Order qualifier Design/fitment Order qualifier Order qualifier Table .1. Order winner/order qualifier for aftermarket and OEE DBP For a DBP, all of the above mentioned parameters are essential but the most important factor would differ for the two product ranges. The most critical factor for an aftermarket range would be the dependability of the DBP. Any aftermarket customer would desire to buy a DBP that would last longer with a constant performance level throughout the usage; he would buy the DBP hoping not to replace it soon. So even though he would prefer a low cost, good flexibility DBP, he will never accept it unless he feels that he can depend on that DBP for a long period of time and even receive the DBP at the time of urgent requirement. PARAMETERS AFTERMARKET

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As far as an OEE is concerned, the manufacturers perform a one-timeassembly of DBP on motorbikes and would want the design/specification of the DBP manufactured by halton materials to be compatible with the different models of motorbikes they manufacture so they can order the DBP in bulk and from the same supplier as well as that would help them reduce their purchasing cost. That says that they would need maximum flexibility in the DBP as halton materials would be manufacturing a single specification for supplying to different two wheeler manufacturer(third paragraph of the case study), along with secondary requirements like quality that would be tested by the technical experts of the customer. 1.3 5PERFORMANCE OBJECTIVES (POLAR DIAGRAM): The polar diagram compares the five significant parameters of two different product ranges. Out of all the characteristic parameters of a DBP, the 5 performance objectives are as shown in the polar diagram (fig.2).The five objectives are the basic factor that are set to satisfy customer requirements(slack et al, 2007).they are: DependabilityMeasurement of reliability in case of receiving goods on time as promised (slack et al, 2007)An aftermarket customer would appreciate the product or service only if he/she receives the product as promised on time and also if the product could serve the customer for a longer period of time. Low costThe extent to which a customer would require a lower cost unless he/she does not find a value for it. Since the OEE customers require
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bulk ordering, they would prefer the cost of an OEE product to be cheaper than that of a single aftermarket product. For an aftermarket product the customer would bear a little more cost for immediate replacement required. QualityAccording to (slack et al, 2008) quality is the level of specification to which a product can be known as fit-for-purpose. As such, here quality means production of DBP according to the specifications .For an OEE product customer, the quality and specifications would be of much more importance than for an aftermarket as the DBP excellence can affect the performance quality of the motorbike for a customer. SpeedThe time between the ordering and receiving of a product (slack et al, 2007). The speed of a DBP operation for an aftermarket customer is of a great consequence than for an OEE as an aftermarket customer would be in an urgent need to buy a new DBP for immediate replacement than an OEE customer who provides some time limit for receiving the product. FlexibilityThe ability to adapt to changes according to the customer needs. An OEE customer cannot purchase a DBP which will suite only one motorbike like an aftermarket customer as they may manufacture different model motorbikes, and the suppliers would manufacture only a few specifications of DBPs because they cannot afford to produce DBPs of separate specifications for separate OEE customers which is

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why the OEE requires a higher flexibility than aftermarket since the new product introduction must suite maximum number of motorbike model

flexibility

dependability 35 30 25 20 15 10 5 0

low cost AFTERMARKET OEE

speed

quality

Fig.2 polar diagram showing the five performance objectives Source: operation strategy, Nigel slack, Micheal Lewis (2008)

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2 FORMULATION OF OPERATIONAL STRATEGY

For the development of manufacturing strategies, all the elements of the Hayes, wheelwright and Clark which are parted into structural as well as infrastructural elements are considered for aftermarket and OEE ranges.

2.1 THE STRUCTURAL ELEMENTS ARE: 2.1.1 Vertical integration (make / buy): A DBP consists only of a frictional pad attached to a steel plate. However, the pad is our core competence and we have been specializing in it since the beginning of halton materials for aftermarket DBP and can even produce more specific DBPs for OEE range. The packaging material is not a strategic component and it is better to continue outsourcing rather than making it in house, also the chemical ingredients for the pad as we are not specialist in chemicals and producing chemicals will again promote quality problems due to inexperience which cannot be compromised as the quality of the friction pad for OEE pads should be of international quality. Comparatively steel plates are of higher consequence and the decision to make or buy steel plates can be justified by venkateshans process (watt.A, 2011)

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Venkateshans strategic sourcing process:

Yes
Is the subsystem strategic?

Form families of componentsDBP

Yes No
Outsource Is investmen t justified?

No

Internal capabilitie s

Is the family strategic?

Fig.3. venkateshans outsourcing strategy. Source: strategic outsourcing, watt.A (2011) The steel back plate is a strategic component and is much needed for the manufacturing of a DBP, however our internal capabilities for production of steel plate is low as we do not have the machinery and forging operators for that reason investing in the steel plate production wouldnt be good as it is not our core competence and chances of production problems are certain which could delay the high demand production of DBPs.Therefore, it would be better to continue steel plate outsourcing for aftermarket and OEE ranges and the OEE specification can be even improved by our machining centers.
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2.1.2 CAPACITY PLAN: The main aim of a capacity planning is to identify the companys level of resources in terms of facilities, equipment and workforce. (Chase et al, 1995). LONG TERM CAPACITY STRATEGY A companys long run capacity plan would be to expand or contract major facilities within the plant (Meredith, 1992) .with the renaissance of OEE product, the capacity will have to be well organized. Currently under the finishing team, the CNCs are running under full load and even with overtime to meet the existing demand of aftermarket range. As of this, we will have to set up a new machining centre for the OEE products to meet the OEE demand which can even provide better precision of specifications, along with the machining centre there would also be a need of a separate production line from the bake to packaging (finishing team) in order to avoid the mixing up of the two product ranges (shown in fig.).A new machining centre costing $65,000 is within our means as we had a profit-after-tax of $430,000 last year and can be accommodated in the extra space available as mentioned in the case study. Aftermarket products can be machined in the same machining centre and even in the new centre if demand goes high. MEDIUM TERM CAPACITY STRATEGY: This capacity plan is the ability to rectify the sudden demand changes within short period of time.

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3 2.5 2 january 1.5 1 0.5 0 time february march

Fig.4.capacity plan of aftermarket and OEE. Source: formulation of operation strategy.watt.A (2011) The above chart shows an imaginary demand of DBPs for first three months of a year and the plan for the remaining months would be the same as we have a stable demand (horizontal axis shows the time and vertical axis gives the demand in 100s), the BLUE LINE plotted indicates the capacity plan of aftermarket products i.e. anticipate demand. For an aftermarket as discussed earlier the demand is mostly unpredictable and will have to keep ready-to-deliver stocks in store. Therefore the capacity will have to be pre-planned to meet the unexpected future demand. The BLACK LINE indicates the capacity plan of the OEE products i.e. lag demand as the orders received will be in bulk and will have some demand-to-receive time provided by the OEE customer. 2.1.3 Facilities: Facilities for the aftermarket and OEE production can be discussed by some of the deciding procedures like: (a) The 4Vs:
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Volume- the volume of DBP production is high as mentioned under the production planning and control that a general batch size would be 300 pieces for aftermarket and by the entry into the OEE range, they would produce about 150,000 pads thus the volume would go even higher for both product ranges. Variety-most DBP products are of a standard size and shape and the only difference comes in the mixing of the resin of the frictional pad which gives a two or three kinds of an aftermarket DBP,however for an OEE it was mentioned that they would produce DBP with only one product specification, so variety remains low for aftermarket and OEE DBP Variation in demand- the demand of DBP can be assumed as stable or routine as DBP are required throughout a year by different OEE customers while there may be a little increase in variation for aftermarket as the orders are unpredicted, though the occurrence of a steep hike or fall as a seasonal demand is negligible. Hence variation is low for both product ranges. Visibility- An aftermarket customer would be in an urgent need and would directly buy a DBP without being involved in the production but in case of OEE, the whole production may be based on OEE customer feedback as the customer would inspect the DBP in before placing an order.hence, visibility is high for OEE and low for aftermarket ranges. 4vs/ product range Volume Variety Variation in demand Visibility Aftermarket DBP High Low High Low OEE DBP High Low Low High
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Table.2. the 4Vs of aftermarket and OEE DBP Usually high Volume product would have low variety and high variety products would have low volume (slack et al, 2007) Based on the 4 Vs, we can discuss the process type in manufacturing operations for both the ranges. (b)Process type: High volume low variety process can use the process that is more concentrated to its narrower range of processing necessities (slack et al, 2007) Low high
Project

volume

High

Jobbing Batch

Variety

Mass Continuous

LOW

Fig.5.process type of aftermarket and OEE DBP Fig.5. process type of aftermarket and OEE DBP

Source: formulation of operation strategy, opsi notes, watt.A (2011).

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Since we have low variety and high volume for both the product ranges, the most ideal type of production process would be batch process as shown in fig.5 as the production would be in several hundred of pieces per batch and would be the same for an aftermarket and OEE as well. (c)PROCESS LAYOUT:
Aftermarket DBP store OEE DBP Store

Pack label cell

Paint cell

Goods out

New machining centre

Old machining centre

Goods in

store

Mix cell

Press cell

Bake cell

Fig.6.process layout of the plant for aftermarket and OEE DBP

As discussed earlier, we have high volume and low variety, in that view a cell layout is the most ideal for aftermarket as well as OEE as the
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manufacturing process must go one after the other from the mixing to packaging in different cells. However, there is a separate production line from the bake to assure quality and no interchanging of the products until the two types are packed and labeled separately. Major facility changes are not required as the initial production of OEE would only be 150,000 pieces along with a 2 million aftermarket pieces that was produced with the sufficient existing facility. The location of the existing plant is also ideal as it is only 10miles far from the largest motorcycle manufacturer of U.K. which would be a benefit once we enter the OEE range. 2.1.4 TECHNOLOGY: If a company does not record its work on an electronic platform then it would be difficult to understand where and what they have to perform better and would be hard to control costs (slack et al, 2007) The foremost development over the technology of the company should be the realization of an internet facility within the supply and purchasing unit. With the OEE product operation, we would need to make faster orders of raw materials also we could get faster orders from both aftermarket as well as OEE customers which would give time for planning rather than receiving orders at the end of the day. The internet also allows the company to stay in frequent contact, with customers and suppliers for a promising professional relation. The second change would be making use of the capacity planning feature of the MRP2 system to collect transactions made at the same point of time. Moreover, all finished product stocks are calculated by traditional principles which must be changed and stock calculations
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must be carried out by certain stock counting software as there would be a larger number of stocks by the OEE product ranges and keeping track of the stocks would be difficult when both the product ranges are held together in store.

2.2THE INFRASTRUCTURAL ELEMENTS ARE:

2.2.1 ORGANISATION: The current organization can be called as a matrix organization, where we have one head and all other employees work under the same roof in different departments, since we produce products of one standard nature it is better if we follow the same organizational structure as decentralization of organization would again add up to the overhead cost. Matrix management is a type of organization where people of similar knowledge and skill are called together for the same job. (Matrix organization.12 manage.) In spite of this, the communication levels within the organization should improve for better understanding between the different sectors of organization. The range of customers would increase with the entry into OEE product range due to which even centralization of the organization will not help to deal with all the customers. However, the organization can be expanded and divided i.e. can be made as functional structure (where the company has a head office and other branches) for the aftermarket operations and OEE operations once if the company gains a strategic growth and becomes difficult to manage both the product ranges under one plant.
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2.2.2 QUALITY: In the present world, if quality standards are not maintained, the company could end up in an order losing scenario (hill, 1993) For capturing a good position in the OEE market, the products will have to be assured of the highest quality like being an ISO certified. For this reason, the company will have to improve its responsibility on quality. Quality controller should monitor the products after each stage of manufacturing to see if the products have met the requirements. A Quality slip can affect the companys years of reputation and may also cause loss of orders and with the renaissance into OEE the quality should be considered as an important factor. 2.2.3 WORKFORCE: In todays information era, the most important assets of a company are now on two feet and no company would minimize its ability to attract talented employees (rob mcinnes, diversity world) With the expansion of the company, the workforce will have to be increased. The introduction of a new machining centre and software enabled programs and with improved quality checks, the company would require more number of employees for these three areas. The selection would depend on the skill and experience since we are just beginning the OEE production. Job rotation will be provided on request for the base level operators alone along with yearly increment of wages. This would also make the company a medium sized company as wished.

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2.2.4 PRODUCTION PLANNING AND CONTROL: The company should be able to meet the raw materials required by forecasting the demand for the two product ranges and keeping track of both aftermarket and OEE orders. The companys requirement of raw materials would be the steel plate and mix ingredients for pads and packaging material. The company will have to schedule the purchasing of these materials as in per demand of the finished product. Since we anticipate the demand of an aftermarket DBP and have an actual demand for OEE but as we are only planning to produce about 150,000 pads, we can follow the materials requirement planning2 (mrp2) system for both the product in the time being in order to reduce complexity and if the OEE market grows we can switch the OEE to a kanban production system later on. A kanban system, which is a method of lean manufacturing helps in continuous production flow and can be implemented for the OEE production once the market grows. In a kanban as customer orders decrease the supply of finished goods, a point is reached that triggers a production order. Likewise, when a production order depletes raw material to below its trigger point, a purchase order is sent to the external supplier (kanban, world class manufacturing). Because of predicted demand in OEE, a kanban can be used to produce DBP according to the outflow of OEE DBP stocks. However, for an aftermarket product, theMRP2 system would be more ideal as the orders are unpredicted and we forecast an estimated figure early ordering would lead to more space requirement and which leads to higher inventory whereas late ordering would end up in late
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production and unable to supply to the customers on time. An mrp2 system monitors the requirements of each end product and their required dates (Meredith, 1992) An mrp2 system can provide updates of various material requirements according to the variation. When the production planning system of an mrp2 shows the requirements of finished products for a particular order on a due date, the production planners can explore the bill of materials for that finished product to determine the subcomponents or raw materials required (Meredith, 1992).thus, an mrp2 system is best suited.

2.2.5 PERFORMANCE MEASUREMENT: The company must keep a track of its performance especially with the new OEE market entry, the critical success factor for both the product ranges must be the quality of the product made as all the marketing and capturing orders can be doing well only if the customer trusts on the quality of the products and the level of dependability for aftermarket customers. (Slack et al, 2007) The key performance indicators (KPI) can be set as: Reducing number of defects per batch Improving the customer satisfaction score. Increase the level of meeting the promised time. Rating the customer satisfaction for the long life of the product incase of aftermarket customer.

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A customer feedback is essential for the OEE as the company can improve with the valuable suggestion from its customers. The target of 150,000 OEE pads must increase to 300,000 pads by the end of the OEE production year as a matter of demand in the OEE market. The company must keep track of the key performance indicator and check the return on assets before and after the OEE product supply as it is the new market entry.

2.2.6 NEW PRODUCT LAUNCH: With the new OEE product launch and new production line, the company must train the operators and provide the latest tooling techniques for them to operate to the finest specification of the OEE product. A new product launch will also boost the companys profile and can be a talk of the market. The company can introduce pilot training camps for 3-4 weeks and upgrade the successful existing operators to the operation of OEE products; this can also motivate the employees.as long as a manufacturing company is profitable with their existing products they have to realize the new product introduction as a part of keeping their market requirement stable.

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3RD,4TH,5TH,SECTIONS OF TERRY HILL FRAMEWORK: 3.HOW DO PRODUCTS WIN ORDERS IN MARKET PLACE AFTERMARKET: DEPENDABILITY. OEE: FLEXIBILITY. However, quality and brand image are also considered as important factors MANUFACTURING/PRODUCTION STRATEGY 4. PROCESS CHOICE 5. INFRASTRUCTURE Process choice: BATCH Production planning: PROCESS. MRP2 system. Process layout is as shown in fig.(cell layout). Strict quality control. Increase in the workforce.

No change in location as mentioned above in No change in the end of facility. organization. Increase in capacity Intensify performance like new machining measurement by centre. setting KPIs. Table.3.terry hill framework showing elements of strategy formation Source: formulation of operation strategy, opsi notes, watt.A (2011). 2.4 IMPLICATIONS AND PROBLEMS OF MANUFACTURING FROM SAME FACILITY AND STRATEGY As the company moves on to production of two product ranges, they will have to broaden up its marketing and operational activities. Some of the implications would be:

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-With the excess production of DBP the breakdown of machines is possible and has to be eliminated as it may cause severe delay in production and continuous test of machines must be conducted to avoid the scenario. - The raw materials will also have to be better utilized or there may be a chance in shortage for anyone of the products .The schedule must be planned according to the MRP2 system. -The company also has to make sure that they wouldnt compromise on the quality of the aftermarket product for the betterment of the OEE product. However, the problems in manufacturing both the ranges in the same facility would be - narrowing up of the free spaces within the plant as new machines have to be operated as well as with the increase in the number of operators. - Storage problems of the two product type, the company will have to expand the warehouse. -The transportation of goods will also have to be enhanced and the company will have to think of alternative supply for aftermarket and OEE as they would be in different locations and different time of order. -Packaging error must not happen at any cost as there could be a possibility when an OEE product may be packed in an aftermarket packaging cover. -The operational strategy for the two products is designed according to their demand and characteristics, if the same strategies are used for
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both the products, the raw materials and other resources would be utilized equally and keeping track of the resources (raw materials, operators, machine capacity,etc) would be difficult. - the quality and specifications would be the same for both the products and resulting in little difference between our OEE and aftermarket products there could be a possibility of losing OEE customer order.

2.5 The balanced scorecard:

Financial How should we be viewed by our shareholders to show them a return on investment

Customer/market How should we be viewed by our customer and what should we do for customer satisfaction

Balanced scorecard

Internal business process. At what business process should we excel at

Learning and growth. How can we build capabilities over time and provide employee satisfaction.

Fig.6.balanced scorecard. Source: Performance measurement, watt. A (2011).

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The balanced scorecard gives a measure of the four main perspectives of any business i.e. financial, customer, business process and growth that a company can mainly focus and later help them achieve a common goal.(Kaplan, Norton,1996)

AFTERMARKET DBP Financial perspective: GOAL: TO ACHIEVE MAXIMUM RETURN ON CAPITAL. We can achieve a return on capital if the ROCE goes higher. The current ROCE is 0.54 which should be reached to around 0.75 .this can be done by increasing the current profit after tax(430,000pounds) by 300,000 pounds. The company must minimize the overhead cost and also the general&admin expense. Customer /market perspective: GOAL: TRANSLATE ALL CUSTOMER NEEDS INTO SERVICES AND PRODUCTS Customer satisfaction should be achieved in the customer perspective. As an aftermarket customer, satisfaction can be achieved by delivering the DBP on time, improving product quality, providing purchase offers etc.A customer satisfaction is a key factor for improving the financial perspective of the company. Internal business process: GOAL: MEET PRODUCTION UPTO THE PLANNING.
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the internal process that the company will have to excel at is the planning of the production process like the amount of raw materials required, the number of operators for a machine etc. the machine should have little idle time and employees must ensure that the product meets the specifications and set up production according to the anticipatory demand. Learning and growth: GOAL: TRAIN OPERATORS TO WORLD CLASS STANDARD. The growth of the aftermarket DBP have been good in the past years and can be supported by figure of sales growth, market growth etc.however, for a consistent further growth, we would have to satisfy the customers and employees as well. The employees can be awarded a skill certification for the years in experience which would also motivate the operators. OEE DBP: FINANCIAL PERSPECTIVE: GOAL: TO OBTAIN THE BREAK EVEN POINT. Due to the initial production of the OEE DBP, it is not possible to compare our current performance in the OEE market as there are no previous records of finance perspective. However, to see the point that we are not going down to a loss, we can measure the cost of the raw materials and machinery spent for the OEE along with the return of the OEE product and make it a point to meet the breakeven point in the developing stages. CUSTOMER/MARKET PERSPECTIVE:
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GOAL: CAPTURE ORDERS OF TOP U.K MOTORBIKE MANUFACTURERS. To obtain financial stability in growth, we would need a good market and will have to capture orders of the top motorbike manufacturers and this can be successful by studying and providing the precise standard specification of DBP for the different type of motorbikes and stressing the flexibility factor of the new product (OEE DBP) introduction onto the motorbike which can make the buying process much easier for the OEE customer. INTERNAL BUSINESS PROCESS: GOAL: Outclass productivity of the OEE DBP. The new market entry should be with a very good impression and the very first DBPs should be of the finest specification and quality, this can be achieved with the latest machining centre that would have better accuracy of machining and with the operation of skilled employees who has a wide experience in the production of DBPs.It is only if we excel in our productivity can we make a 100% OEE customer satisfaction. LEARNING AND GROWTH: GOAL: certify the OEE operators. The skill level required for the OEE production is certainly higher than the aftermarket operators therefore the company must provide training camps of 3-4 weeks and the successful operators may be awarded a certificate of OEE.This can in turn motivate the learning habits of the operators and can also gradually result in the growth of the company.

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3) WORKING CULTURE DIFFERENCE IN CHINA AND U.K Off shoring the OEE product range to china have become an essential step yet very complicated as the company will have to adopt some of the Chinese working attitude and the tradition, the company will have to understand the requirement of Asian customers as they will also have orders for their motorbikes as well. The British manager should be highly efficient with the Chinese language and culture. The company would have benefits like reduced wages and increased working time. However, for a better understanding the manager can consider the hofstedes view of cultural factors which are mentioned in the table below: U.K Power/distance relation Uncertainty avoidance Individual vs. collective Masculine vs. feminine Long term orientation Low Low Individual Masculine Low High Low Collective Masculine High CHINA

Table.4. hofstedes cultural factors. Source: HOFSTEDES SCORES, Greet Hofstedes cultural dimensions (2009).

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Power distance relation (p/d relation) The power distance relation measures the scale of dissimilarity between the different ranks of people in an organization. In the U.K the p/d relation is quite low and mostly everyone is treated equally and everyone have the rights to express their thoughts and ideas over a particular issue. While in china, the p/d relation is quite high and mostly the lower level employees dont generally speak out their views to the higher level employees, the British manager have to realize this fact and must encourage the employees to have an open discussion on relevant matters and take equal responsibility for the plant operations. (Power distance, kwintessential) Uncertainty avoidance It is an employees hunt for accuracy .Uncertainty avoidance tells us the level to which the people neglect a doubt in work. China and U.K have the same level of uncertainty avoidance i.e. low, but if the p/d relation in china plant keeps staying high there is a chance of increase in uncertainty avoidance which must be brought to zero for a fine quality plant operations. Manager must make sure that the operators feel free for any assist in work and support.

Individualism vs. collectivism This factor explains the height to which the people appreciate working as an individual or working in collective groups. U.K is an individualistic country where individual rights are stressed on and more valued; the British are known for its power to set changes and new trends in fashion or technology (Childs et al, 2002). whereas in china collectivism
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is more valued and people enjoy working in groups rather than individual work. The British manager must realize this fact and should promote individualism in certain operation units where limited numbers of people are required as it can save more time and the plant can get better results with better utilization of workforce. Masculine vs. feminine. The dominance of a particular gender is considered as a cultural factor as the dominance may change from different countries. China and U.K have a male dominancy over female at work places, to equalize the ratio and to avoid differences; the manager must encourage female employment like in the front office areas. By doing so the company can have a high recognition in female employment as the number of female employees are increasing every year, women now constitutes half of the workforce in the modern world. Long term orientation vs. Short term orientation. Long term orientation refers to the fact that a person always remains concerned about the way he/she spends and the thrive for excellence along with the ability to work in difficult situations. Whereas the short term orientation refers to the fulfillment of social regulations, protecting ones feelings .In china people would be ready to work in harsh conditions unlike people in the U.K and are more concerned about the costs of living(greet hofstede, 2009). However because of cheap labour and persevere working attitude the British manager can have better flexibility with his employees and can assign different job roles for the same number of people.

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4 REFERANCES:

1) ADRIAN WATT (2011), OPERATION STRATEGY FOR INDUSTRY, MODULE NOTES.WMG (WARWICK MANUFACTURING GROUP).

2) GREET HOFSTEDE CULTURAL DIMENSIONS (2009).AVAILABLE (ONLINE) (ACCESSED ON 5TH NOVEMBER 2011). http://www.geert-hofstede.com/

3) JACK.R.MEREDITH (1992),THE MANAGEMENT OF OPERATIONS: A CONCEPTUAL EMPHASIS.4TH EDITION, CHICHESTER:JOHN WILEY&SONS.

4) KANBAN, WORLD CLASS MANUFACTURING.AVAILABLE (ONLINE) (ACCESSED ON 1ST NOVEMBER 2011) http://world-class-manufacturing.com/Kanban/kanban.html

5) MATRIX ORGANISATION.12MANAGE.AVAILABLE(ONLINE) (ACCESSED ON 25TH OCTOBER 2011) http://www.12manage.com/description_matrix_organization.html

6) MIKE STORRY, PETER CHILDS(2002).BRITISH CULTURAL IDENTITIES , 2ND EDITION, LONDON:ROUTLEDGE.

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7) NIGEL SLACK, MICHEAL LEWIS (2008), OPERATION STRATEGY, 2nd EDITION, ESSEX: PRENTICE HALL/FINANCIAL TIMES.

8) NIGEL SLACK, STAURT CHAMBERS, ROBERT JOHNSON (2007), OPERATIONS MANAGEMENT, 5TH EDITION.ESSEX: PRENTICE HALL/FINANCIAL TIMES.

9) POWER DISTANCE, KWINTESSENTIAL. AVAILABLE (ONLINE) (ACCESSED ON 3RD NOVEMBER 2011) http://www.kwintessential.co.uk/intercultural/dimensions.html

10) RICHARD.B. CHASE, NICHOLAS.J. AQUILANO (1995), PRODUCTION AND OPERATION MANAGEMENT, 8TH EDITION.

11) ROB MCINNES, DIVERSITY WORLD.AVAILABLE (ONLINE) (ACCESSED ON 27TH OCTOBER 2011) http://www.diversityworld.com/Diversity/workforce_diversity.html

12) ROBERT.S.KAPLAN, DAVID.P.NORTON(1996). THE BALANCED SCORECARD: TRANSLATING STRATEGY INTO ACTION. U.S.A, HARWARD BUSINESS SCHOOL PRESS.
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13) TERRY HILL (1993), MANUFACTURING STRATEGY, 2ND EDITION.LONDON: MACMILLAN.

WORD COUNT (FOR 3 ANSWERS):5519 WORDS.

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