Management concepts Essay Example | Topics and Well Written Essays - 2000 words

Management concepts - Essay ExampleAccording to CEO James Thompson, operations management within impression be after service totally change our outlook, our resources, and our prospects over a ten-year period, resulting in a phenomenal unanticipated financial success (Chambers, 2003, p. 46). Management assessed Concept Design Services original growthelement, industrial credit card components, and noted the decrease in sales and the unreliability of the grocery in both purchasing the product and requesting larger orders. As Concept Design Services diversified into household goods and plastics, the demand for inexpensive household products expanded. At this time Concept Design Services was faced with the issue of an increasingly competitive set market from smaller manufacturers that could produce a duplicated item within a tightly controlled overhead. Even while these items appeared to be duplication, they were not the quality of the Concept Design Services items. Concept Design Services evaluated their product line, deleted the less profitable industrial enterprise, and developed a niche market with a new intriguer and a new concept. Designer household plastics became the it item for new homebuyers and those with a desire for fashionable home decoration. While developing the new product line, Concept Design Services created a new distribution network that brought the product closer to the consumer and the point of purchase. Placing their designs and color coordinated products at eye level in retail markets and chain stores, Concept Design Services launched their products with enhanced publicity by providing visible merchandise on television cooking shows, color powder store advertisements, newspaper articles and advertisements, and point-of-sale color brochures and self-service displays (Chambers, 2003, p. 48). As a first step in transformation, Concept Design Services changed their inputs, by changing the command and gaining control of the process that transforms resources. Next in the transformation process, Concept Design Services changed the physical design of their product, changed the customer base for their product, and changed the information available to customers to market a chic, new product. At this time Concept Design Services changed the distribution process, or output, so that the customer had better service and a quicker turnaround time for product availability. While enacting the new focus for Concept Design Services, operations management utilized the four dimensions, of operations management in the fol broken ining ways Volume-The company concentrated on providing a spicy volume product (plastic housewares) and abandoned the low volume product (industrial plastics). The new high volume product required an entire new division of designers, colors, marketing, and increased the cost per unit of the new plastic housewares. This change was capital intensive as it required paying royalty payments to Italian designers in return for the endorsements and designs, an operating cost that was not previously anticipated (Chambers, 2003, p. 53). Variety-The Company moved from a low variety (only specific models of industrial plastics) to a high variety (plastic housewares with multiple colors and designs). The higher variety brought a more complex set of parcel requiring more mouldings, more tooling changes, more color changes and more waste of the product