The definition of the operational management as a management field has been dealing with regulating, designing, and the supervision in the process of production in business (Krajewski, . Ritzman, & Malhotra, 1999). It also has been catering to the issues relating to the remodeling and the restructuring of the operations in relation to the specific business in the renedering of the services and the production of the goods. The opreartional management’s  main aims has been twofold: (a) utilization of the scarce resources efficiently; and (b) the buisness operartion that is effective in ensuring the need and the desire of the customers that are acomodated in the process of production  (Samson & Terziovski, 1999). This report is analyzing the bottlenecks appearing in the current system of production and the process of operational management of Brisbane Extraction Systems Australia Pvt. Limited. It is the designer and the manufacturer in relation to the high performance of the custom made that is exhausting systems. They have been supplying the exhaust system to the industry of the motor racing in the country. The establishment of the business was done by Benito Tregila and Martin Graves, who were cousins and themselves have been the motorists in 1997. Brisbane Extraction Systems Pvt. Limited has been facing a number of problems because of the operation taking place at above capacity to deal with three types of  orders on the single production unit and by the use of procedures of production that are similar. This took place because the company has been the amateurs in the business. The inefficiency of the management of the plant capacity, escalation of the cost, production’s unfinished units, increased lead times, and raw materials stock outs have led to this.

The existing process of manufacturing production in Brisbane has been the extraction that is consisted of both off-the-shelf custom made commodities that have been manufactured in a single unit. The high technology equipment has been in use by the Brisbane Extractions System has been in nature very general in serving the demand of both off-the-shelf and the custom made products. The designing of the whole factory is based on the departmental and functional sections where there is separation in each section from the other. For instance, the operation of all cutters are in one section while the other sections such as, bending, flaring, wielding and cutting consisting of tube cutters. The turning and the fitting of the equipments has been under the provision with three separate dyno-equipped service bays. There is no difference of the staff for the production of custom tailored systems and the custom based systems. There is also the sameness for both production of the systems and process and the procedure.

The use of the technology in relation to the manufacture of the commodities, that is, off the shelf and the commodity based products that are of general type and meaning that it can be catering to both product types which are being manufactured in the plant. However, deep insights related to the process of production reveals that the operation of the plant is done is such a way that production of both custom based and the off the shelf products have been simultaneously produced  (MacDuffie, 1995). This would be putting greater weight on the plant making the management’s capacity as ineffective. The indication of the scenario suggests that simultaneous production of the systems of custom tailored and the off the shelf has increased the lead time by pushing the machines’ capacity  (Bresnahan & Ramey, 1993). Although, there is full equipment of the workers with set of skills in handling the process of production of both products, there has been a chance that the workers’ efficiency may be reducing in the production carried out simultaneously with respect to the off the shelf and the custom made products. These have been under the manufacturing by the company because of the fact that there is their inability of reaching the learning curve that is desirable within the stipulated time.

The current system of production has been installed in catering the diverse demands of the customers that require the automation of the custom tailored high performance exhausting the system of extraction that have been manufactured in matching the engines individually. The current high performance production related to the automation exhausting the system of extractions up to be tuned in fitting into a standardized car. This has been pushing the Brisbane Extractions Systems Company in looking for the options other than that in order of matching the rise in demand for the systems of more standardized extractions tuning to be fitting into a standardized car and can bought off the shelf. Further, there is struggle in matching both custom based and standardized systems that can be used for the set up of the same production, Brisbane has been entering a contract with Race Gear International; a distributor of a national car parts that specializes the high performance supply of automotive components to both the general public and enthusiasts of the motor racing.

A pact was inked between Race Gear international and Brisbane extraction systems private limited. Under the terms of the pact, Brisbane extraction systems private limited had to meet the manufacturing of the primary stockowner for expansion of the supply chain. To realize this objective, the first orders per system were required to be fulfilled. Ultimately this entailed further difficulties on the manufacturing procedure of Brisbane extraction systems. The plan of additional hours of working envisaged that the workers in return for their work exceeding routine schedule, will be paid a premium and the usage of the tools should be in a way that it stretches at maximum capacity, exceeding all expectations.

Planning schedule of over the shelf product constantly got the precedence more than the product which was created for the Race gear International. The foremost reason for this was the manufactured goods of Brisbane’s extraction system were highly lucrative. If a step was undertaken for a scheduling of both products that is over the shelf product and products of Race gear International, then it preordains that the company is required to plan the process of manufacturing in such a manner that there is no interruption between their parent products and the products which are being created for the Gear International. As a result, it would entail formation of additional difficulties and stress both on the administration and on the workers who would most probably had to perform myriad tasks so that it could realize the objectives of the company.

As the designed products of the Brisbane company were prioritized, the products of the Race Gear International were mostly withdrawn from the process of manufacturing and ultimately incomplete stockpile kept lingering. According to (Fisher & Ittner,1999), it denotes there is a probability that a majority percentage of incomplete stash would have squandered.

Additionally the stalled manufacturing process of the product which was produced for the Gear Race International might give birth to another danger which could jeopardize the company. The plant need to be running work beyond routine hours so that it could finish the process. This indicates that the plant will be working at maximum capacity and even the workers will be required to do overtime.

Secondly, the final product was first carried to Sydney and then it was later disseminated all across nations.  The expenditures for the transportation was met by Race Gear International but the costs for the transport and labor engaged in the process of transportation was taken by Brisbane Extraction Systems. This might led to dearth of labors which were occupied in the shipping of other manufactured goods by the original company.

Turning to trade costs which are being demanded for the goods produced for Race Gera Company, it was specified that it was much higher compared to the costs of the regular products which were created by Brisbane Extraction Systems. This was mainly because of the addition of extra premium in the trade costs which was done to coat the fee of distribution laid down by Rear Gear international.

Besides the costs of bulk goods offered by Gear International to Brisbane Extraction system was smaller in amount compared to the trade charges of original products of the company that are available in the market, which intends a scope of low income. It should be noted that without looking out for options, Brisbane Company has inked a pact with Race Gear International. A rise in demand of Brisbane products signaled that they would have higher earnings rather than  signing pact with the Gear international.

In case of producing 2-5 lot, machine will not take much  assembly time although there would be extreme usage of plant and would require several times to be assembled so that it meets the requirements of stock substitution. According to  (Fisher & Ittner, 1999), if one has to tackle with the regular demand, then there is an urgency to hold the stock and refill them again.

There might be a soar in the retaining of stock to ascertain that the requirement of the goods being produced for Gear International is realized whereas there is avoidance of any products which are out of stock. This denotes there might be a chance of a boost in the supply which is retained by the company. According to  (Eaves & Kingsman, 2004), the keeping of stock indicates higher costs for retaining them and further individuals in management.

Another setback witnessed by Brisbane extraction Company because of soaring demand was an out of stock scenario and there was a rise in lead times of manufacturing. The stockouts which stemmed due to blockage of raw materials might land Brisbane Company in a situation where it can witness a diverted supply for off-exchange trading extraction method. This denotes lower gains from their original product and lead to tribulations of customer discontent.

As result of inking pact with Race Gear International, the power of present plant is hard-pressed. There is dearth of space for expansion of the plant in order to meet and fulfill the soaring demand and assembly of systems  (Fisher & Ittner, 1999).

Its repercussions were felt on the efficiency of the plant’s operation which could entail a fracture in the machinery following extreme production. Earlier extra working hours of staff had met the soaring demand for stockholding by Race Gear International. This indicates that Brisbane is running at same intensity of plant ability rather than improving the plant capacity by advancing or acquiring new plants. The end outcome was manufacturing process became further inept and production time was inoperative.

Decision of Brisbane Extractions Systems Pvt. Limited to shift towards readymade production was coined as a smart step because most of the customers were insisting for uniform system. Nevertheless, the problem which emerged was that it was produced and adjusted to be superlatively attached into customary production cars. It would be of great benefit if the systems were adjusted aptly into harmonized engines rather than amending to suit into typical production cars.

The core product of Brisbane Extraction Systems is the custom made extraction systems as it governed the sales of company despite the step of company to segregate production into standardized systems and custom made systems. Creation of consistent readymade products yields myriad advantages as the expenditure for developing such products be able to widen on overall series of stages of systems. According to (Grover,2013), creation of time-tested systems can alleviate any grievances voiced from customers in the long run. In both ways commercial extraction systems might have yielded grave effects on the financial operations of the company.

Brisbane Extraction Systems stands high on a pedestal due to the notion that it produces custom made, superior quality and enhanced performance extractions systems. However, its shift to standard products is reason of hurdles in manufacturing process. According to (Van Rompaey, 1996), such standard systems were tailored to cater to requirements of huge customers’ base in conjunction with proportion and skill to function in manifold cars.

Standardized systems are produced in such a manner that there is space for minor alterations and inclusions of some extra traits in the usual extraction systems which are uniquely fixed into exemplary engines rather than cars.

The distinct unit manufacturing system inherent in Brisbane Extractions Systems for creating standard systems, custom made systems and depleted volume called for systems from rear Gear International. This entailed weakening of profits and bolstered ineptness in the system.

 

References

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Grover, C. (2013). Automated emergency brake systems: Technical requirements, costs and benefits. DG Enterprise European Commision. Retrieved from http://ec.europa.eu/enterprise/sectors/automotive/files/projects/report_aebs_en.pdf

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