An introduction to the operations management Essay Example
An introduction to the operations management Essay Example

An introduction to the operations management Essay Example

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  • Pages: 9 (2422 words)
  • Published: October 23, 2017
  • Type: Case Study
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The text discusses the concept of Operations Management, which includes tasks such as Marketing management, Human resource management, Production management, and Logistics management. It emphasizes that Operations Management is responsible for producing and delivering valuable goods or services to customers. The purpose of this paper is to analyze how Operations Management is applied in a specific company and assess its progress and shortcomings in conducting business. Decision-making plays a crucial role in operations management and can be done by an individual or a group of people. The functions of the Management Council or operations director include planning, organizing, leading, and controlling responsibilities related to production and sales. The process refers to how the organization's goals are achieved through the performance of these responsibilities.
Operations Management principles encompass Business Process Reengineering, which utilizes technology for performance impro

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vement, as well as Lean System developed by Taiichi Ohno and used in Toyota Production System. Lean Thinking emerged from postwar Japan's limited resources and remains applicable to future process improvement plans. It can be applied across different industries such as mature (energy), slow-growing (automotive), or low transaction volume sectors (small business). Additionally, it is relevant even for organizations without mathematical tools utilizedLean focuses on reducing waste and cutting costs while considering all process interactions using systems thinking. It is important to balance released resources with increased throughput and resource demand in Lean or Six Sigma improvement plans; otherwise, cost-cutting may lead to job loss and a halt in the improvement plan.

The use of Lean systems helps organizations reduce waste and improve operational efficiency. Additionally, manufacturing employs the Kanban system where a machine shop supplies components for final assembly, which i

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manual with minimal setup and produces based on customer demands in batch sizes. Machining is a more automated process that incurs significant setup costs. It involves batching green goods to amortise equipment and arrange parts efficiently, minimizing tool changes (source: http://www.strategosinc.com/kanban_1.htm). The Kanban system is primarily used to control the work sequence and meet assembly schedules.

Six Sigma is a widely-used methodology aimed at understanding customer needs, collecting valuable information from processes, and conducting accurate statistical analysis to improve them. Most companies operate at around 4-sigma precision, which represents about 99% perfection. By striving for 6-sigma precision, companies can learn from past mistakes and successful deployments with support from colleagues and top management.Achieving this level of precision eliminates the need for excessive quality control and leads to a growing base of happy and satisfied customers (source: www.dummies.com/how-to/content/six-sigma-principles.html # ixzz11GYvbTPF).

Forecasting involves predicting future events or circumstances.

The Theory of Constraints (TOC) focuses on managing constraints or obstacles that hinder desired outcomes. These limitations are also referred to as restrictions or constrictions in achieving goals. The study and improvement of these constraints are also known as constraint accounting (source: http://www.accountingformanagement.com/theory_of_constraints.htm).

TOC can be utilized to optimize operations by identifying and scheduling resources that limit overall efficiency.

Material Requirements Planning (MRP) is a scheduling process for multi-level production systems. It involves analyzing production requirements, inventory levels, and batch sizes to determine a schedule for operations and raw material purchases. This tool provides all the necessary features to develop and solve small-scale examples (source: http://www.me.utexas.edu/~jensen/ORMM/omie/computation/unit/mrp_add/mrp.html).

MRP helps operations meet the demand for materials based on customer orders.

Enterprise Resource Planning (ERP) is a system that integrates all activities of an organization, including marketing, human resources,

sales, and finance, into one system.The purpose of ERP is to assist organizations in saving costs, increasing competitiveness, and generating long-term profits. Implementation of ERP brings benefits such as reduced operating expenses and inventory, timely responsiveness, improved market share and image, faster design-to-manufacturability processes, keeping up with technology changes, and facilitating a unified system for clients in multiple locations. The application and implementation of these principles effectively improve organizational operations. It is important to note that all employees within the organization, not just managers, are responsible for implementing these principles. However, the complex relationship between managers and employees can pose challenges when implementing these principles. Additionally, applying Material Requirements Planning in organizations can be difficult due to reliance on material demand from suppliers. To enhance operations, organizations can apply various principles including Business Process Reengineering, Lean Systems, Six Sigma, Forecasting, and Supplier Relationship Management. Bianfishco is a seafood company owned by Dieu Hien Group that specializes in farming seafood (particularly Tra and Basa fish), processing it,and exporting it. They have successfully implemented Material Requirements Planning (also known as Enterprise Resource Planning) with involvement from their functional units and Board of Directors.
Established in 2005, Bianfishco is a seafood company with the largest scale and most modern facilities in the Mekong Delta region. Operations began in late 2006, and the company has invested approximately 1,000 billion VND capital until 2008. Located at two addresses in Cantho city's Industrial Zone, it occupies about 90,000 square meters of land.

The success of Binh An Seafood Joint Stock Company is due to the unwavering efforts of its officers and employees who consistently strive for improvement. They have worked closely with Madam

Pham Thi Dieu Hien, the Chairwoman of the Management Board and General Director of Binh An Seafood. Under her guidance, the company has gained international recognition for its products that meet esteemed quality standards such as HACCP, HALAL, BRC, IFS, ISO/IEC 17025, ISO 22000:2005. They have successfully entered demanding markets like USA and EU.

Recently, Bianfishco received the "Century International Quality Era Award" from Spain's Business Initiative Directions Organization for their innovative application of the QC100 quality management system model.

The Binh An Seafood Processing Plant is located at 2.17 Tranoc II Industrial Park in Cantho City. It spans over an area exceeding 30,000 square meters and has a production capacity of processing 500 tons of raw pangasius materials per day. Additionally , it provides employment opportunities for over 5 ,000 workers within the local community .The plant is equipped with advanced machinery from renowned companies worldwide, including evaporative capacitor: Evanpco - Belgique; IQF Freezers: Mycom - Japan; Flake-ice machines: Geneglace - France; Cooling Water systems: Guntner - Germany; Skin removing and grading machines: Marelec - Belgique; Cold Stores: PoliStamp - Italy, along with other specialized equipment sourced from the USA and Asia. Bianfishco has established a large-scale Pangasius byproduct plant covering an area of 7,500 square meters. This plant utilizes both domestic and overseas equipment and technology, with an invested capital exceeding 20 billion VND. It has the capacity to produce 300 tons of byproducts daily. Furthermore, Bianfishco has invested 300 billion VND in constructing the "Seafood Processing Plant" situated opposite Binh An Seafood Joint Stock Company. The objective is to create a closed aquaculture plan for farming and treatment. With a total area of 30,000

square meters, this facility can produce 300 dozens granulated meals each day. Cutting-edge equipment sourced from experts in France, USA, and Asia has been selected for this plant. The products offered by Bianfishco come from two farms: Area 1 located in Tan An commune within Binh Tan territory in Vinh Long state; and Area 2 situated in Tan My commune within Cho Moi territory in An Giang province. Collectively, these farms span over an expansive area of more than 50 hectaresThe annual production from these farms can reach up to 20,000 dozens (of unspecified units), which is achieved by strictly adhering to internationally recognized standards such as Best Aquaculture Practices (BAP) and Vietnamese Good Agricultural Practices (VIET GAP). These measures ensure that our products are delivered fresh while maintaining high quality. Our goal at Bianfishco is to enhance the efficiency of seafood production and farming throughout Vietnam, providing top-notch seafood options.

Construction on the "Vietnam Pangasius Research Institute" began on December 2nd, 2008 in Mekong Delta specifically at batch number 2.11A Tranoc II within Cantho metropolis region. The Bianfishco Pangasius Research Institute covers a 2,000 square meter area with an initial invested capital of around 30 billion VND. Its main objective is to conduct research on various aspects of aquaculture, including fingerlings, nutrients, and biological science engineering for seafood processing. This research aims to provide insights on biology, chemistry, physics, antibiotics, and quality control in order to ensure food safety.

The institute serves as a collaborative hub for specialists and engineers from both domestic and foreign countries who work together on long-term research and development projects.The Binh An Seafood Institute, which is supported by Bianfishco, focuses on

improving the value of processed products made from Tra and Basa fish while also increasing income for local farmers. To achieve this goal, Bianfishco has invested in machinery and equipment for the institute. The institute conducts experiments and research on fingerling selection, gene analysis, suitable fish feed and nutrition ingredients, fish diseases prevention methods and treatments. Their ongoing objectives include producing Tra fish with high Omega-3 content and breeding fish with microbiological enzymes.

Bianfishco, a well-known player in the seafood processing and export industry, has solidified its position in the USA market. They established a representative office in Beverly Hills City in October 2009 and completed all necessary procedures to construct Bianfishco Market in San Francisco. This market combines wholesale and retail functions while also showcasing their products to integrate an underwater world with tourist trade. The company aims not only to introduce Vietnamese seafood to Americans but also promote their unique cultural heritage rooted in South Vietnam's rivers. Vietnamese Tra and Basa fish are now directly supplied to major supermarkets like Ipura, Cosco, and Walmart without intermediate imports.Bianfishco's decision to target the USA market, known for its stringent quality control and food safety standards, has raised curiosity among many. Madam Pham Thi Dieu Hien confidently asserts that entering the US market will facilitate access to other markets due to their strict control system and guaranteed product quality. In 2008, Bianfishco enjoyed a zero rate of antidumping tax for exports to the US market, thanks to their confirmed product quality. These favorable regulations will continue benefiting them until 2011. With a current farming area of 100 hectares meeting Global Gap standards, Bianfishco is not concerned about

the rigorous technical requirements set by the US market. All aquaculture processes and exports from Bianfishco adhere to high management standards in terms of food safety and hygiene, such as ISO 9001/2000, HACCP, BRC, IFS, ISO/IEC 17025, etc.

To further expand in this sector, Bianfishco has invested in constructing a processing factory spanning over 30,000 square meters. This facility has a daily capacity of processing 500 metric tonnes of fish and can produce 54,000 metric tonnes of finished filet per year. Additionally,this investment has created employment opportunities for more than 5,000 local workers.
Madam Pham Thi Dieu Hien has made several developments in her business. She acquired land on an island in the Hau river for fishpond excavation, with a size of 30 hectares. She also obtained another parcel of land, measuring 60 hectares, for seafood breeding in An Giang province. Furthermore, she invested 20 billion VND to construct a byproduct mill that can process 300 MT per day. This investment aims to improve aquaculture procedures and effectively utilize available resources.

The company also invested 300 billion VND in building a fishmeal mill with a capacity of producing 300 MT per day. This investment ensures that high-quality products can be supplied to the market. Additionally, Bianfishco expanded its operations by constructing a cold storage facility and a re-frozen area to meet demand from various partners.

Bianfishco's mill is well-known for being one of Vietnam's cleanest facilities. It features waterfall systems, a flower garden, and a greenery park on the premises. While Bianfishco targets customers in retail supermarkets with their unique exporting approach, this meticulous process results in higher prices.

Despite operating in multiple industries such as fast food, wooden trade,

and real estate, Bianfishco products with their brand are now available in 27 countries worldwide including strict markets like the EU and the USA.

Currently, Bianfishco is working on projects for building Binh An House 1 at 83 Nguyen Van Troi in Ho Chi Minh City's Phu Nhuan District. This project involves constructing a high-level residential and modern office building.
Bianfishco, a company based in Ho Chi Minh City, has been recognized for their achievements in the construction industry. They are currently working on Binh An House 2 project and other projects within the city. In fact, they were recently awarded the "Platinum Technology Award for Quality and Best Trade Name" in Italy, which highlights their commitment to producing high-quality products using advanced technology and modern equipment.

The company's dedication to quality is further supported by positive feedback from European Union customers who ranked their products highly compared to those of other companies globally. This recognition marks Bianfishco's fourth prestigious award, solidifying their reputation as a reputable organization worldwide.

Their main goal is to establish the Vietnamese brand internationally while prioritizing "quality" as their primary standard. To achieve this, they have implemented six criteria for quality: Quality of Life, Quality in the Farm, Quality in the Factory, Quality of the Products, Quality of the Services, and Quality for You.

Through effective operations management systems such as Thin System and Six Sigma methodologies, Bianfishco has overcome obstacles and achieved profitability. According to a report from 2009's first eight months alone, they successfully exported 12.77 million tons of frozen Tra fish valued at $34.05 million to various countries across the globe.In August 2009, Bianfishco exported a total of 1,819 metric tons valued

at $5.5 million and 782 metric tons of Tra fish worth $2.86 million to the U.S market. They planned on exporting over 70 containers to the U.S market in that same month. However, despite their efforts, they have not received enough inquiries from the U.S market according to Sales Director Mr. Vi Tran Tan Nang.

Mr. Tan Nang mentioned that there is an increasing demand for Tra fish in the EU due to the upcoming Christmas and New Year holidays. However, Bianfishco faced challenges with clients in the EU and Middle East markets who consistently requested lower prices in August 2009. Despite trying to meet these demands, their export value to countries such as Spain, England, Germany, Holland did not exceed previous months' levels.

Currently, Bianfishco operates at two-thirds of its processing capacity because it takes time for workers to produce high-quality products. In August 2009, they had planned on exporting 70-80 containers of Tra fish to the U.S., but only slightly over 50 containers have been exported so far this year.

In September 2009, along with continuing exports to the EU market, Bianfishco aimed to increase its total Tra fish exports by reaching 2,570 million tons across thirty different markets (Extracted from Bianfishco's Press Release).

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