Question.862 - Scenario In your role as a Business Process Consultant at Bryce-Kingston, you are writing business case for JBH Electronics (JBH) in preparation for their upcoming shareholder meeting to vote on a future acquisition. The Executive team from JBH wants to ensure that they have a perspective on what other companies in the electronics industry are using as best practices for operations management and organizational performance processes. Instructions You will create a business case outlining how JBH could increase organizational performance using industry best practices in operations management. Conduct research on the best practices for using operations management in organizational performance measurements and include the following in the business case: Determine what are some industry best practices using in operational performance. Outline how JBH could use operations management to streamline their performance. Determine what operational measurements JBH can use to measure performance. Provide your recommendation from your research on best practices for operations management and organizational performance to support JBH Electronics success. Provide attribution for credible sources.
Answer Below:
Business Case: Implementing Best Practices in Operations Management for JBH Electronics Markus CaravacaRasmussen University MAN 5100 Value Chain and Operations Management Instructor Matthew Ademola, Cole Hamilton and Eduardo Haynes February 28th, 2023 Business Case: Implementing Best Practices in Operations Management for JBH Electronics Executive Summary JBH Electronics (JBH) intends to purchase a new firm in the electronics sector. It is critical to follow industry best practices in operations management to enable effective integration and increase organizational performance. This business case presents the best practices in operations management and organizational performance metrics that can assist JBH in streamlining their performance and achieving success. Best Practices in Operational Performance in the Electronics Industry To remain or sustain the practices that enable the company to stay competitive in the operating marker, firms in the electronics industry use a variety of best practices in operations management, such as Lean Manufacturing, Six Sigma, Total Quality Management (TQM), and Continual Improvement. Lean manufacturing is concerned with removing waste and improving processes in order to enhance efficiency, lower costs, and promote customer satisfaction. Six Sigma is a data-driven strategy to quality management that seeks to eliminate process failures and variability. To increase organizational performance, TQM is a management method that entails continuous improvement, customer focus, and employee participation. Continuous Improvement is a systematic technique to continuously improving processes, goods, and services. JBH may utilize Operations Management to improve performance in the following ways: JBH may use operations management to execute the following measures to improve their performance: Lean Manufacturing: JBH may use lean manufacturing techniques to reduce waste and optimize operations. This can assist to shorten lead times, enhance quality, and boost customer happiness, and build brand loyalty that could help the firm establish sustainability factor in terms of revenue generation (Laursen, 2017). Six Sigma is a data-driven method to process improvement that focuses on detecting and reducing process faults and mistakes. This practice is used to increase product or service quality and minimize process variability. JBH Electronics may improve organizational performance by applying Six Sigma to optimize their operations management procedures and increase efficiency. Among the many advantages of Six Sigma for JBH Electronics are: Brand loyalty is raised when flaws and mistakes are reduced. Productivity gains - Six Sigma may assist in identifying and eliminating waste in a process, resulting in greater production and efficiency. Cost savings - By eliminating faults and mistakes, Six Sigma may help save money on reworking, scrapping, and other quality-related concerns. Total Quality Management (TQM): TQM is a management technique that aims to enhance product and service quality by incorporating all employees in the firm. TQM emphasizes continual improvement and a company-wide adherence to reliability in terms of quality (Oakland, 2014). JBH Electronics may strengthen their operations management procedures and develop a culture of perpetual innovation by applying TQM, resulting in improved organizational performance. Some of the most important advantages of TQM for JBH Electronics are as follows: Improved customer satisfaction - TQM places a premium on satisfying customers' wants and expectations, that can lead to higher levels of satisfaction. TQM increases employee engagement by including all employees in the business and empowering them to discover and resolve quality-related concerns (Oakland, 2014). This can result in higher staff engagement and morale. TQM promotes data-driven decision-making, that can lead to better decision-making and higher organizational performance (Oakland, 2014). Operational Measurements for Performance To measure the success of operations management strategies, JBH can use operational measurements such as Cycle Time: The time it requires to perform a process or activity from beginning to end. JBH may detect bottlenecks and inconsistencies in their operations management processe s by measuring cycle time, allowing them to make adjustments and boost efficiency. Quality measures, such as defect rates and customer satisfaction scores, can assist JBH in monitoring the quality of their goods and services (Rompho, 2018). JBH may discover areas for improvement and conduct corrective steps to enhance their operations management activities by measuring quality metrics. Inventory Management Metrics, inventory management indicators like inventory turnover or stockout rates can assist JBH in optimizing inventory levels and reducing waste (Rompho, 2018). JBH can enhance their supply chain management operations and boost efficiency by measuring these variables. Cost metrics such as total cost per unit or cost of goods sold can assist JBH in monitoring operating expenses and identifying cost-cutting opportunities (Rompho, 2018). JBH may enhance their financial performance and profitability by measuring these KPIs. Productivity measurements, such as units produced per hour or revenue per employee, can assist JBH in monitoring their production levels and identifying opportunities for development (Rompho, 2018). JBH can boost efficiency and improve overall organizational performance by measuring these variables. Recommendation I would advise JBH Electronics to include Six Sigma and Total Quality Management (TQM) into their operations management procedures. Six Sigma is a methodology for increasing process quality and decreasing variability, whereas TQM is a mindset that stresses continuous improvement and customer satisfaction. Applying these approaches may assist JBH Electronics in improving their operations management processes and increasing efficiency, while also guaranteeing that their goods and services match the expectations of their customers. Six Sigma has been successfully adopted in the electronics sector to increase quality and minimize errors, according to research by Singh and Singh (2018). Likewise, Ahire and Dreyfus (2000) discovered that TQM may increase organizational performance and customer satisfaction in the electronics business. JBH Electronics should focus on monitoring performance using operational measures such as cycle time, quality metrics, inventory management metrics, cost metrics, and productivity metrics in addition to applying Six Sigma and TQM. JBH Electronics may enhance organizational performance and profitability by measuring these KPIs and applying best practices in operations management, making them an appealing acquisition candidate. References Ahire, S. L., & Dreyfus, P. (2000). The impact of design management and process management on quality: An empirical investigation. Journal of Operations Management, 18(5), 549-575. Harry, M., & Schroeder, R. (2011). Six Sigma: The Breakthrough Management Strategy Revolutionizing the World's Top Corporations. Crown Business. Laursen, L. N. (2017). Lean Manufacturing Principles, Tools, and Methods. In Encyclopedia of Operations Research and Management Science (pp. 1-8). Springer US. Oakland, J. S. (2014). Total quality management and operational excellence: text with cases. Routledge. Rompho, N. (2018). Operational performance measures for startups. Measuring Business Excellence, 22(1), 31-41. Shingo, S. (1988). A study of the Toyota production system: from an industrial engineering viewpoint. Productivity Press. Singh, B., & Singh, P. (2018). Six sigma methodology in electronics manufacturing industry: A review. Journal of Manufacturing Technology Management, 29(2), 312-338.More Articles From Business Management
.ico)
.ico)
.ico)
.ico)
