In: Operations Management
Think that the operations fail because the underlying processes do not match with the “products.” Now you are asked to come up with an example in the business world where the operations succeeds because the underlying processes match with the “products” (but you cannot use the examples that have been discussed in the classes such as Southwest Airlines). Please limit your answer within 300 words. - Hint: you may frame your analysis around the “operations frontier” (b) (10 pts) How would the recent COVID-19 outbreak affect the future global supply chains for personal protective equipment and products (such as N95 respirators, gowns, masks, gloves and face shields)? Elaborate your answer based on the role of lead time in SCM. Please limit your answer within 300 words.
A) An example in the business world where the operation succeeds because the underlying process matches with the products.
Analysis confirms, again and again, that when the number of companies variegate into new markets, their benefits are adulterated and accession is eventually unwound—generally by a CEO aim on creating a more goal-oriented company. For example Coca-Cola’s thrust into filmmaking & Wine, Eastman Kodak’s wander into pharmaceuticals and Philip Morris’s experience with Miller Brewing. Although, conterminous moves are not always a blunder. IBM successfully variegated into different services; Disney does utterly good with a case ranging from fun parks to films, children’s peddle & cruise ships; Apple lucratively entered into the highly competitive mp3-player, cellphones, Ipad, Mac, etc. Berkshire Hathaway, has the best more than a 40-plus-year history of shareholder returns the world has ever noticed.
Some adjacencies work and others not, Why? Believe, two major factors play an important role which creates the difference: First, invading an adjacency materially ameliorates the value proposition of the business. Second, it uses sufficient of the company’s unique capabilities to analyze the right win in the new market.
There is an example of the first factor, assess IKEA, the global home furnishing company. IKEA recognizes afar with a mission to supply a well-intended products at an affordable price than anyone else. Now they are selling televisions. Is this the unique adjacency mindset? if consumers are purchasing furniture, they might also be interested to buy TVs. Now the question comes, Why not seize the business as they’re already in this line? Well, the answer is "NO'. IKEA does not see afar as entering the Television market at all. Instead, the company focused to resolve a furniture provocation that many of its customers do complaints: how and where to place or fit the Television and other components, gadgets & their wires that come with the products more logically into the living room. So IKEA has unified the TVs into a furniture solution. IKEA is not entering a new business rather, they are expanding the value proposition of their current business (Practical & Useful Home Furnishings).
Now, let’s analyze the second factor, considering Hewlett-Packard as a case in point. HP began out in high-tech computation machines that involves a lot of engineering design and execution capabilities. When the PC revolution transpired, HP noticed that desktop printers were a natural addition of the potentiality and printers became a massive lucrative business for the company. But other adjacencies, like ECS, have not been as lucrative due to HP’s abilities were ill-matched to their demand.
The best intention for the following adjacencies is to expand the value proposition of the current business while holding and measuring the current business-distinctive capabilities and abilities. This will build up the business stronger and enhance its reach beyond the boundaries at the same time, simultaneously producing high-quality broadening of continual earnings.
Answer 2 - Covid19 outbreak affect the future global supply chain with respect to the following products or equipments
Generally, most of the medical device companies have their manufacturing hubs in China. Wuhan steers the composite medical device manufacturing in its market, considering various medical laser equipment. In subject to, China has organized to establish Wuhan’s Jiangxia district into a fitness-centered industrial group of biopharma, examination equipment and narcotics manufacturing by 2030; many firms have already started developing their facilities in the area.
Accidentally, the Coronavirus or COVID-19 eruption which started from Wuhan City, China, has outspread across the mainland, influencing various industries globally. The disburse of main or key material has been majorly disorganized due to the necessary quarantine, shortage of labor and raw materials. Although the link between topical warehouses is not smooth and clear, the awarding of raw materials between places cannot be carried out lucratively; this lack of raw material and portion pretentious the medical device supply chain.
Part-Wise Effect on Medical Device Supply Chains
a) Effect on Aluminum - Aluminum, which is frequently used to produce machinery products like hangers and fixing plates, these are important products for medical devices. The scarcity of aluminum materials is happening due to the problems in transportation. In the short term, the price may rise to some level and due to this aluminum output and export volume are supposed to down. Aluminum products or items manufacturing will abide by constraint until the logistics and shipping problems are resolved.
b) Effect on ICs - The IC industry has offered essential technical support for pandemic observation, protection, discernment and treatment. Companies in the downstream of the IC industry are labor-concentrated enterprises, which are have been damaged the most by the pandemics. The plastic materials, substrates and frames for the manufacturing procedure are currently short. It will take at least 30 days to restore the subsite capacity of production.
c) Impact on Components such as (N95 respirators, masks, gloves and face shields) - As the coronavirus disease epidemics outspread, the global health care department has become submerged with likely contagious patients seeking checking, testing and care. Averting spread of contagious too and from health care workers and patients depend on the essential use of personal protective equipment (PPE) such as N95 respirators, face masks, air-purifying respirators, face shields, goggles, gloves & gowns. A critical scarcity of all of these is subjected to establish or has already established in terms of high requirement personal protective equipment, formerly omnipresent and expendable in the hospital is now a short and essential commodity in several locations when it is required most to protection for highly contagious patients. An enlarge in PPE supply will require a large growth in PPE manufacturing.
In this current guidance to managing the use of face masks during the epidemics, the (CDC) notices 3 levels of operational behavior or status: Regular, Contingency, and Calamity.
a) During regular times, face masks are used in standard ways to stop HCWs from sprays.
b) Many societies in the US and globally are quickly entering calamity mode. Therefore due to the shortage of the equipment, advised to use such as plastic water bottle cutouts for eye protection & plastic garbage bags for gowns.
c) Plans for providing through the reuse of industrial capacity and other essentials are granted but seem doubtful to solve the inadequacy quickly fast as supply chains become more flawed in the epidemics.