The assignment will focus on manufacturing concrete stone paving. This product has been selected due to its increasing demand. Many individuals and organizations are looking to decorate their homes, businesses, and municipalities, leading to growth in the development of buildings and malls in the Eastern Cape. Concrete stone paving is the preferred choice due to its versatility, aesthetic appeal, functionality, cost-effectiveness, and low maintenance requirements when properly manufactured and laid.
In East London, sellers of concrete stone paving are currently sourcing it from other provinces or countries. There are very few manufacturers available despite the high demand. To address this issue, a new company will be established for the manufacturing of stone paving. The company will develop a business strategy and mission that will align with the operations' mission and objectives. The main goal of the operations is
...to provide quality and value for money stone paving in an effective and efficient manner.
The distinctive competence of the company lies in its local manufacturing capabilities. This will allow customers to order custom designs instead of choosing from pre-existing options. Additionally, the company will capitalize on short lead times due to local production and a highly skilled and experienced cross-functional team that promotes innovation.
When designing the product or service, the company will take an inter-functional view, ensuring that the product meets market needs while also offering a technical advantage. This can be easily achieved due to the company's team of highly experienced specialists.
To ensure the success of the product, a cross-functional team will be assembled. This team will consist of representatives from various fields such as marketing, operations, engineering, and supply chain management. Additionally, supplier
and customers will be involved in the design phase.
When selecting suppliers for the project, specific criteria will be used, including technical expertise, capability, capacity, and low risk. Only suppliers who demonstrate these attributes will be considered.
Regular communication and collaboration with customers are essential for the development of the stone paving. Different methods will be employed to encourage customer participation, such as aligning incentives for knowledge sharing and including them as advisors on the design team.The development of the stone paving involves considering manipulability and value engineering activities throughout the research, development, design, and production stages. These activities aim to improve design and specifications, leading to benefits such as cost reduction, reduced complexity, environmental impact reduction, and increased standardization. Various techniques can be employed in the design of the stone paving product throughout its life cycle. These include robust design, which allows for small production variations without impacting the product, computer-aided design to develop and document different types of paving, and value analysis to review and improve successful products during production. The design aspects considered for the paving include sizes, types, colors, manufacturing methods, quality, and market acceptance. Meticulous specifications are important to ensure efficient production.
According to Higher and Render (2011), it is crucial to define, design, and document a product in order to determine the necessary equipment, layout, and human resources. Engineering drawings will be created for the stone paving to display dimensions, tolerances, materials, and finishes of the components. A bill of material will then list the components, their descriptions, and quantities needed to produce one unit of each type of stone paving. Assembly drawings, assembly charts, route sheets, and work orders will
assist in the actual production process.
The product will adhere to applicable laws and industry standards and will be produced and delivered in an ethical, environmentally sound, and sustainable manner. According to Schroeder et al. (2013), different types of processes exist (batch, assembly line, continuous, job shop, and project), each suited for a specific product. Since the concrete paving slabs are produced in various types, sizes, and colors at a low to moderate volume, the batch process is considered more suitable.
The factory layout will be designed to improve efficiency and reduce bottlenecks in the process. Due to the different types of paving being manufactured, reconfiguration of the layout will be necessary for each type.
The appropriate type of order fulfillment for budget manufactured stone, standard manufactured stone, premium manufactured stone, premium natural stone, and others is make to order. This helps reduce inventory, storage, and damage costs. Suppliers will be arranged to deliver orders for concrete and aggregates just in time for manufacturing.
The manufacturing process for paving will follow the stages detailed below. First, aggregates will be batched and stored separately, ensuring they stay well-drained and protected from rain to maintain dryness before being mixed with cement. This ensures the optimum moisture content is not exceeded. Cement will be weighed with 1% accuracy, except when batched by whole bags. Aggregates will be weighed with 2% accuracy.
The weight of the batched aggregate will be adjusted to account for moisture contained in the aggregates. After batching, aggregates and binder, along with pigment if needed, will be discharged separately or simultaneously into the mixer. They will be thoroughly mixed before any additional water is added. A mix with
high fines content may require longer mixing.Water must be added to the mixture in order to bring it to the optimal moisture content, which can be determined either through measuring the moisture content of the aggregates or visually assessed by operators. It is crucial for the mixture to have uniform water content across batches in order to ensure consistent quality. Once mixed, the mixture is stored in hoppers and ready to be dispensed into molds. When filling the molds, two methods are used. In the first method, the mixture is filled until it reaches a predetermined height. In the second method, a measured amount of mixture is compacted for a specific period. It is important to ensure consistent density and uniform distribution of the mixture within the molds to avoid variations. If there are any gaps in the molds after filling, they can be topped up with a second filling of mixture. Compaction is done by vibrating the molds for an optimum period of 3 to 12 seconds. Concrete papers with a thickness greater than 80 mm will not be produced. The frequency and amplitude of vibration are optimized based on the specific materials being used and the number of blocks being molded per cycle. Water curing improves the quality of concrete papers. Curing can be achieved through moisture retention, steam curing, or thermal insulation.The methods that will be used in the process are as follows:
1. Moisture retention: This method is utilized for blocks that have low density and tend to lose moisture rapidly. It involves wrapping newly made blocks in plastic sheeting to prevent moisture loss.
2. Thermal curing: Newly molded paving blocks
are placed in an insulated chamber for 4 hours. The temperature is increased by the heat produced from cement hydration, without the need for additional heat. This method is cost-effective.
3. Quality control: Control measures will be implemented at critical points in the process. Specific tests will be conducted to ensure high-quality end products.
4. Layout: The company will implement a layout strategy that supports its differentiation and value for money strategy. The layout will aim to meet competitive requirements by maximizing space, equipment, and people utilization, improving flow of information, people or material, enhancing employee morale and working conditions, and improving customer interaction. According to Slack et al. (1998).1. To ensure a consistent product, weight batching will be employed for manufacturing equipment. For smaller projects, compatible batch and mixer sizes will allow for the use of whole bags of cement. A pan and trough mixer will be utilized for effective axing in the creation of semi-dry concrete paving blocks. The size of the pan mixer will correspond to production needs to ensure batches are used in a timely manner.
2. In order for an organization to achieve its corporate and operational goals, machines and equipment alone are not sufficient. People are essential in performing the necessary business operations to ultimately produce and sell products, generating revenue for the business. Decisions must be made regarding job responsibilities and the required skills and competencies of those performing these jobs.The development of the organizational structure should come after the development of the strategy. The Human Resource department, along with other departments, should ensure that the right people are hired and retained for the productivity and sustainability of the
business.
The structure of this business will include core functions such as engineering, operations/manufacturing, marketing and sales, finance, human resources, administration, and information communication technology. A typical organizational structure is provided below to ensure the smooth functioning of the organization. Cross functional teams will be used to utilize skills and contributions from many individuals to achieve organizational goals.
Organizational Structure Capacity refers to the organization's ability to hold, receive, store, or reduce units within a given time period. This assessment helps determine if demand will be met or if facilities will be idle. Determining the size of the business is crucial to achieve high utilization and return on investment. Equipment choices and capacity decisions should align with the organization's mission and strategy (Engel et al.).The following factors, as suggested by (1998), should be taken into consideration in order to achieve effective capacity planning: accurate demand forecasting, understanding of equipment, processes and capacity increments, determination of optimum operating size, and ensuring flexibility for adjustments in technology, product features and mix, as well as volumes. Various techniques such as bottleneck analysis, good forecasting, break-even analysis, scofflaws and net present value can be valuable for making capacity decisions.
Currently, the demand for paving tiles in East London, Eastern Cape exceeds the supply, resulting in high prices compared to other cities or provinces. The only option for purchasing these tiles is from other provinces or countries as there is only one manufacturer. Therefore, focusing on the Eastern Cape market and maximizing on location economies could help achieve the desired market share.
To mitigate risks and promote awareness of our products and their value derived from sourcing locally, a risk management plan will be
implemented and an aggressive marketing strategy will be developed. The Operations Manager will pay close attention to bottleneck management to ensure efficient system functioning and resource utilization.The text highlights the four principles of bottleneck management, including releasing work orders at the pace set by the bottleneck's capacity and keeping the bottlenecks busy. It also mentions that non-bottlenecks should have planned idle time as increasing their capacity does not impact the overall system capacity. Increasing the capacity of bottlenecks increases the capacity for the entire system. The break-even analysis will be conducted to determine the quantity of products needed for profitability, and efforts to reduce variable costs will be made to maximize production. Location choice is important and refers to the geographical positioning of an operation in relation to input resources, other operations, and customers. The goal of a location strategy is to maximize organization benefits. The preferred strategy for the paving manufacturing company is location and costs, while innovation will be considered in the long term. The manufacturing process for concrete paving slabs involves factors such as cement, aggregates, water chemical admixtures, pigments, and people.The company needs to assess various factors, both financial and non-financial, in order to select a manufacturing location. There are different methods for evaluating location options, with the factor rating method shown in the table used to determine the best site. Considering the importance of factors like proximity to suppliers, climate, proximity to customers, labor pool, wage rates, and community factors, site A is determined to be the top choice. The company should consider both supply side and demand site factors to maximize profits. In addition to the factor rating method,
other methods like the centre-of gravity method, location break-even analysis, and transportation model can also provide insight for selecting a location. The chosen location for the company's manufacturing operations is South Africa, specifically within the Eastern Cape. This analysis will aid in determining the specific site within this region. According to Higher and Render (2011), competition no longer rests solely between companies but extends to their supply chains as well.The manufacturing and marketing of the product will involve interaction with various suppliers. Therefore, an integrated approach to supply chain management is necessary. The supply chain plays a crucial role in determining the product's costs, quality, responsiveness, and differentiation. Various strategies can be employed for the supply chain, such as having many or few suppliers, joint ventures, retail integration, and virtual companies.
The company must develop strategies that align with its objectives, provide a competitive advantage, and ensure customer satisfaction. Quality management is essential for offering high-quality products to customers and improving revenues while reducing costs. The organization will implement continuous improvement efforts and employ various techniques to manage quality. This includes ensuring that suppliers meet the required standards, such as compliance with SABA EN 197-1 for cement.
Other measures, like ISO 9000 process certification, inspections, and statistical process control, will be implemented to ensure quality. Operators and Quality Assures will receive training on quality standards and methods for checking. The company aims to adopt both lean and six sigma process improvement approaches, as these have proven beneficial for many organizations.Quality control refers to the stabilization and maintenance of a process in order to reduce consistent output (Schroeder, et al, 2013, IPPP). Throughout the process, critical control points
will be defined to control and improve the processes. Control measures, such as monitoring changes in materials to implement timely changes in manufacture, will be implemented. These measures include regularly monitoring changes in grading and moisture content of aggregates, monitoring mix consistence, and measuring wet density of blocks. In cases where density changes occur, investigations will be conducted to identify and correct the root cause. Routine quality and compliance tests will involve checking dimensions of blocks, testing their strength, and conducting abrasion tests at an appropriate age.
In conclusion, for a company to achieve its business strategy and maximize profits, it needs a clear and well-defined operations strategy aligned with the business strategy. The use of cross-functional teams and supply chain strategy can provide competitive advantage and continuous improvement. Additionally, the product design, process design, layout, and supply chain should support the company's operations and result in profitable outcomes.
In order to adapt to the rapidly changing internal and external environment and the introduction of new products due to technological advancements, it is crucial to manage quality throughout the processes and mitigate risks.
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