Operations Management

EDO Performance UK is an affiliated organization of an American company EDO Performance Tuning Llc in Huntington Beach, California. EDO Performance based in the USA, the main specialization of the Enterprise is automobile performance efficiency control instrumentation. Founded in 2003, EDO Performance represented itself as a company with sustainable results and progressing business. In order to provide customers with the most efficient on time delivery service, EDO has fully stocked warehouses on the USA, as well as in the UK, to provide faster delivery service options to most cities in both continents (EDO official website). EDO Performance is a direct distributor for many renowned Japanese automotive performance manufacturers such as Defi, ZERO/SPORTS, Tomei, and PLX Devices Braille Batteries.

The company primarily operates in the Automotive Parts and Accessories Stores industry. Edo Performance Tuning Llc receives £5 Million in estimated annual revenue. Edo Performance Tuning Llc employs 4 managers and 29 employees in the UK affiliated organization. EDO Performance UK is an SME company that aims to develop Business Expansion Scheme in order to broadcast the manufactured products, improve technologies and strategies (Bakerjian, 1993 p. 14).  

On the one hand, SME company can experience difficulties in business development in contrary to business rivals, bread in globalized market of manufacturing. Therefore, it is important to invest energy and resources in strategies that ultimately leads to an organization’s growth. Examining market and target customers leads to realization of goals and needs. However, it is also important to improve techniques and develop each step of manufacturing process of the company.

Nowadays, the theory and practice of management companies use engineering approach. Methodology of business processes engineering based on design of the business processes and tools, which include software and standard model functions, processes and structures.

In the context of changes in the external environment the development of production technologies, as part of the basic business processes, management is a complex task, which should be based on specific approaches. Methodology of the management system is based on the interaction of various management affects on the production technology.

The new approach to the management is oriented on the control of technical quality and results. The concept of production technology includes system-processing methods of four types of resources: information, funds, materials and labor, which are carried out by changing the patterns established by the basic element - material resource.

The control object parameters adopted in production capacity by adapting it to the market parameters. Therefore, the monetary component functions as the agent for the evaluation and selection of management decision (Greasley, 1999 p.41).

Complex systems management approaches include systemic, objective, processing and projective approaches. These approaches provide rules for the process architecture, structures and resources based on the criteria of efficiency, stability and reliability. The control systems provide solutions that deliver strategic business goals, volume and time of realization of results.

The solution for these demands implements the requirements of the results representing three basic issues: the level of development of productive capacities, level of resources and fund balance of the production capacity, and a level of financial stability of the company.

Task architecture of the capacity level development is based on finding the optimum combination of two life cycles - the source and the planned life cycle. Objective is realized in compromise between market opportunities and resource development for the long term (Hoogervorst, 2009 p. 229).

The basic model for this issue  is the result of this logic-level information model with the parameters of the production technology of combining the original and new technologies in space and time of their products placed on the market.

Task architecture of the level of resource potential balance is based on finding optimal parameters of the balance between resources and assets. Physical power potential is determined by compromise solutions between the production technology and the possibility of restructuring the existing conditions.

Requirements of the system approach is realized through the accounting relationships the adoption of resources and funds as a member providing development process approach through the adoption of the sequence optimization in the direction of fixed assets and resources , the project approach through the adoption of the economic size of the project as an organizational standard. The base model is the result of this logic- level information model that balance production capacity organizational parameters combining resources and funds in the sphere of a structured process

Architecture-level tasks of financial sustainability of the capacity is based on finding the optimum ratio of the financial condition and risk. Financial condition of the building is determined by the compromise between the source and develop financial and risk potential

The basic model of the result of this level is the financial information model production capacity organizational alignment parameters and financial parameters of the risks in the space of restructured production technology.

Basic three-level model of technology development potential is the basis for the orientation of different types of controls in the direction: the technology potential and organizational structures that form a full company profile structure according to the models accepted in technology design of the company.

The methodologically based models performed the advisability of development in the system development of concept, project and program. When this control is carried out through the development of key performance indicators for the concept stage, and resource content and maintenance of the project are in the stages of economic and investment planning. These methodological systems can be performed as MRP, CRP, MRPII and ERP models of manufacturing planning.

MRP is understood as Material Requirements Planning systems, consisting of a series of logically related procedures, decision, rules and requirements outsource production schedule in the demands time-synchronized and scheduled according to the requirements for each unit of reserve components needed to meet production schedules. MRP system reschedules the sequence requirements and coatings due to changes either in the production schedule, stock structure, or product attributes (Bhadbury & Shenoy, 2005 p. 48).

The main sphere of EDO Performance UK Company manufacturing is fuel pumps. Therefore, it is important to underline that the improvements in the Material utilization policy can be observed in giving preference to aluminium alloy materials, used for the basis of fuel pumps. 

CRP identified as Capacity Requirements Planning, manufacturing process planning. This concept is similar to MRP, but instead of a single concept of materials, it addresses to concepts as the planning of processing quality due to the implementation of CRP which technically more complicated.

Usually used in conjunction with the MRP view of the close logical connection with the planning, rationalization of the process. In the sphere of fuel pumps production, CRP could be connected with optimization in recruiting policy and modernization of the methods of treatment, additional examination of junction pieces, attentiveness of employees. Methodology of MRP / CRP is used in MRPII manufacturing enterprises.

The main function of the complex Manufacturing Resources Planning MRPII involves

Material Requirements Planning (MRP) Requirements Planning capacities (CRP) SCM (Supply Chain Management) (Bhadbury & Shenoy, 2005 p. 88).

MRP II involves the ability to receive information from the corresponding systems or subsystems. Therefore, implementation of complex program MRP II is much more effective than elementary MRP I, CRP, SCM and MPS system, subordinates of MRP II. Moreover, this complex system is based on the analysis of needed data and certain types of order in which the subsystems are usually formed with reference to the list of the functional blocks, which consist of a processing product, which is the part of MRP II complex system.

The basic modeling blocks of the MRP II are: Forecasting Sales Management Space-time scheduling - production planning management specifications and the structure of product BOM, Bill Of Material, is a list of components and materials necessary for the production of the manufactured product, indicating the number of time and planned production or supply.

Therefore, the manufactured products analyzed according to material and component inventory management MRP and CRP processes. CRP system involves the calculation of time-Structured requirements capacities for each work center required to produce components, assemblies and finished products planned in terms of material needs (MRP) (Moore, 2007 p.225).

The process is similar to MRP, however, routing information is used for each product instead of BOM. CRP process affects only the components of the product structure, designated as produced, and not related to the purchased components.

CSM is the Supply Chain Management. This system is oriented on additional control in the sphere of supply supervision. SIC components are usually corresponds to economically suitable raw materials or assemblies, which are used in many components of the finished product, such as external brochures of pump, papers for instructions and other functionally unimportant spheres. These components are typically manufactured or purchased based on SIC policy, the type of system to maintain a minimum level of stocks (Bhadbury & Shenoy, 2005 p. 94).

The absence of any consistent system in the composition of a software product provides lack of functional characterization of MRP II system. However, this system suggests ways to prediction and examination products, process of their manufacturing and practical ways of improvement.

As a result of the planning systems, generated manufacturing processes analysis helps to identify and solve problems, appeared in manufacturing processes. However, new planning systems may be concluded from issues, unexpectedly appeared in the process of manufacturing (Moore, 2007 p.228).

Moreover, statistical analysis and prediction of the market environment are also concluded from specific cases in the practice of manufacturer. If a particular business process is not using scheduling, sales can be predicted for the MRP component, based on sales budgets. In some cases (spare parts, for example) can be predicted sales for MRP component on the basis of the marketing budget.

The planning process involves product type components, order policy, ordering system, and order method to determine whether a product should be oriented on planning function needs, the amounts and specific of extra needs. Moreover, methodological systems are also oriented of CSRP (Customer Synchronized Resources Planning) (Kalpakjian, 2001 p. 18).

Modernization of general manufacturing techniques road poses a number of problems, the main of which is to improve the organization and technology of maintenance and repair of fuel pumps in order to improve the quality of their work, reducing delays in repair, material and labor costs for their maintenance.

t is known that the cost of maintenance and repair of the fuel pumps exceeds the cost of their production (Moore, 2007 p.226). Moreover, due to the increased vehicle production is assumed that in the near future a significant portion of the working population will be used in the field of operation of fuel pumps.

Therefore, one of the tasks of scientific and technical progress is to reduce labor and material costs for maintenance and repair of fuel pumps while improving the reliability of its functions, which is achieved by improving the organization of production and technical base of the company, increased levels of automation and mechanization of production, improvement of production management methods, using advanced methods of rationalization (Kamm, 1995 p. 12).

The development of production and technical base is provided by the new functional orientation of enterprises. Enlargement of the vehicles can economize up to 50% of the investments in production base, is widely applied to mechanization and automation of production processes, reducing of turnaround time, improvement of their quality and productivity (Appendix 1).

The development of automotive production should be provided by comprehensive measurement and reducing of manual labor through the production mechanization. Improving the quality of repair, it is highly recommended to use modern diagnostic techniques and introduction of flexible manufacturing systems (Kalpakjian, 1997 p. 36).

On the one hand, it is important to control improvements in commutations, involving threaded connections, rivet connections and compression connections. It is also important to improve disassembly process using mechanized devices. On the other hand, the amount of clearing work can be decreased, being substituted by effective washing liquid use. The clearing solutions should be effective in various cases of pollution.

Moreover, it is necessary to develop and implement automated systems to inspection and examination of manufacturing units. The considerable improvement in technological processes should be primarily based on examination of the essential parts of the fuel pumps and their components.

The main objective of the development is the process of the fuel pump assembly. Projecting means for checking the performance of the fuel pump and the pressure.

It is also needed to analyze the function of mechanism, examine repair circuit process technology, make rationing and measure fitters work to calculate the annual labor intensity, number of workers and the number of necessary equipment, as well as to determine the manufacturing area (Appendix 2).

In order to satisfy demands of end-user consumer, it is important to supply him with information about the most effective implementation of fuel pumps. Therefore, it is necessary to suggest a practical scheme of checking the pump, give a brief description of the purpose and tools, device description and operation, the utilization instructions, maintenance, security advisory and benefit cost analysis of its use to display the advantages of manufacturing process improvements.  

SUMMARY

To sum up it should be mentioned that Operations Management Methodology includes planning systems, such as MRPII system that is based on complex systematic planning, consisting of such subsystems as Material Requirements Planning ERP (Enterprise Resources Planning) and ERP (Enterprise Resources Planning).

The process of planning methodology needs for material resources determining the ultimate requirements according to improvement of production from high-level raw materials. Key concept of the methodology is the concept of bringing the product to Bill of Materials. The upgraded version of MRP allows adjusting procurement plans dynamically in progress of manufacturing. Analyzing the process of fuel pumps manufacturing improvement, it is important to pay attention to materials, their constituents and fitting, chemical and physical characteristics. Alloys and fluids that are involved in manufacturing process play crucial role in formation of the criteria of manufacturing improvements.

ERP (Enterprise Resources Planning) of corporate resources adds financial management and marketing to MRPII system. ERP concept is the main subsystem of MRPII aimed at the management of the business. MRPII perform complex system of MRP/ERP planning. During the process of fuel pumps production, human labor influences various criteria of company’s success. On the one hand, manipulating tools and materials, employees influence quality of work. On the other hand, spending certain time on manufacturing, workers influence schedule and time frames of producing process.

However, manufactured products should also be oriented on target consumers, contain explanations and warnings. Therefore, various planning systems provide improvement of SME, consulting small companies about strategies and economic environment and bringing possibility to perform products of global market of fuel pumps.

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