Operations Management

PPQ Parts’ intention to enter into the global market has a range of advantages. However, the firm needs to acquire the necessary management resources to avoid the last minute trash. Some of these resources include software packages for materials requirements planning (MRP), enterprise resource planning, and capacity requirement planning needs (Dennis and Dennis, 1995).Advertising We will write a custom essay sample on Operations Management specifically for you for only $16.05 $11/page Learn More The Company requires the enterprise resource planning (ERP) software to manage major business activities such as sales, production, delivery, and billing, among others. Whereas handheld computers enhance data collection wherever the data is generated, ERP has the capacity to gather the data accurately and increase its generation (Wallace and Kremzar, 2001). The company, therefore, has to acquire enterprise resource planning (ERP) software to achieve its gl obal objectives. One of the best options available for PPQ Parts is to acquire A1 EPR. The system is available globally (A1 ERP | ERP Systems, n.d.). Therefore, PPQ Parts can acquire it while in the host foreign country. However, the firm can also purchase it from other countries of choice. The EPR can handle all enormous manufacturing tasks making it suitable for meeting the needs of PPQ Parts. Additionally, the A1 EPR can solve business needs of medium and large sized firms. Therefore, the company can use it at the beginning of its trading global session and continue doing so when it is fully established. The other advantage of the system regards its design. A1 EPR is built in Java based on a 3-tier structural design of a GWT Ajax-base front-end. It is, therefore, J2EE compliant system. Its user interface is developed at run-time, and it can be built disjointedly for various platforms such as Smart phones, computers, and other such devices. This system can enhance the efficiency o f a business by keeping its internal processes running through out. Besides, it can lead to increment of output due to the improved customer service. On the other hand, A1 EPR has a number of disadvantages. First, it costs more than other related software do. This may be due to its incomparable degree of integration and comprehensiveness. Second, it is not easy to customize (A1 ERP | ERP Systems, n.d.). The company should consider hiring experts to operate it. Apart from A1 EPR, PPQ Parts can use EPR 5 to meet the manufacturing objectives. This ERP is based on Python and Zope. Its most outstanding feature is that is based on a unified model that describes its performance. EPR 5 implementation consists of between 20 to 30 tables. This is in contrast to the implementation of ordinary ERP software that requires thousands of tables since they work by joining several modules. The EPR implementation procedure involves pulling together electronic documents or papers in the firm, recording each term and fundamental conceptions in each file to the UMB concept, and forming the judgment making process materialized by identification signs via document workflows. (ERP5 Solution Operation, n. d).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The ERP5 system does not alter the processes and sequence of information flow of a firm. The EPR implementation procedure captures effective business practises that are being implemented in the firm and reflect them to the UMB model. This system categorically minimizes the threat of malfunction and high implementation cost for established organizations (ERP5 Solution Operation, n.d). On the other hand, the implementation cannot serve the interests of small firms due lack of cost effectiveness. It is also an inappropriate option for most newly created companies. The companies usually suffer due to time constraints (ERP5 Solution Operation, n.d ). PPQ Parts must evaluate this factor before deciding whether to acquire the system or not. The other major management software performs duties related to manufacturing resource planning. The MRP software is developed to aid management gain insight into real-time production data. It supports marketers to model sales objectives that fit within proficiency constraints. Most MRP tools allow accounting and finance departments to get accurate audit information. The Software, therefore, facilitates producers to realize considerable savings and efficiencies such as quick inventory turns. It also helps to maintain highly efficient use of production equipment and increases repeat sales via client analytics (MRP Software, n.d). Obviously, the software is indispensable. Nevertheless, firms should only use the recommended MRP software to boost chances of attaining their goals. Tuppas MRP is one of the best software for PPQ Parts to consider acquiring. The software has configurable settings tha t grant control over MRP regulations. It supports prediction with configurable logic that can easily incorporate external structures. The software also has the capability to incorporate advanced scheduling systems. In addition, it can be integrated within firms where there are varied reliant information schemes. The software can produce work orders and purchase orders mechanically. Its price is also a fordable. Its components are developed to meet the definite requirements of each customer, and it is possible to use the software from any locked browser. In addition to these advantages, the software is easy to access by using devices such as Pocket Pcs, smart phones, and PDAs. The problem with the MRP software is the high probability of having errors in the output data in case there are errors in the bill of materials. However, the error can eradicated by using bar code scanning and employing pulls techniques (MRP Software, n.d). An alternative MRP for the company is E2 Shop System S oftware. This system can convert quotes into orders without the necessity of making double entries. The tracking element in the system makes it appropriate for maintaining cargo security. It has a resources administration segment that controls all the components and organizes the purchase requirements to align with the recorded orders. The system also tracks the delivery process.Advertising We will write a custom essay sample on Operations Management specifically for you for only $16.05 $11/page Learn More Its scheduling component is also important because it eradicates guesswork .The product’s contact management component also keeps everyone informed concerning the internal operation processes. In addition, it manages all accounting responsibilities from a single setting and utilizes its 200 built-in reports to execute conception scrutiny roles. The nation network of regional offices and other global service centres of Shoptech support the valua ble attributes making the service quality of the system exceptional(Singleton, 2012). However, the MRP software has its outstanding shortcomings. Its major shortcoming is that it requires the user to specify the duration it will take to produce products from its modules. The system design also presumes the manufacturing duration will be identical each time the product is produced (Singleton, 2012). It is, therefore, recommendable if the production rate is expected to be constant for a long duration. The Capacity Requirement Planning (CRP) software can help the company to meet it production capacity objectives such as managing labour, materials, and systems effectively. The software has the capacity to estimate data based on input accurately and the additional resources required in meeting the production target (Gunther, 2007). PPQ Parts should choose Finesse Capacity Requirement Planning software to handle these duties. The software will help it to identify capacity conditions that require upgrading before problems crop in. Moreover, the CPR has simplified the way of changing the load and the capability to provide exceptional reports. It can also re-evaluate present shipping status without employing too much effort. However, it is not the best for small firms as they lack the necessary financial management capacity. It also, sometimes, generate incorrect information, especially when the management in puts the wrong data. PPQ Parts can purchase it and employ competent staff. The company also has the option of acquiring the S2K Enterprise Capacity Requirements Planning software. The software allows users to view detailed analysis of existent and proposed capacity needs. It has a flexible design that makes eases planning for long-term and short-term plans. Additionally, It has a summary information system that detects the require production capacity. However, its weakness is the inability to project the colour and sizes of finished products. It is also costly to maintain (Vai, n. d.). Since the company does not specialize in the attire industry where colour is of outstanding significance, it can acquire and manage the S2k system. Conclusively, the six software systems have the capacity to meet the needs of the firm. However, the firm’s executive committee is obliged to consider the disadvantages and advantages of each of the software categories and determine the best ones to acquire. For example, the committee may consider the pros of acquiring the time sensitive EPR5 verses those of acquiring the costly A1 ERP and direct the firm to purchase the most convenient choice.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More References A1 ERP | ERP Systems. (n.d.). ERP System | ERP Software Systems. Web. Dennis, T. L., Dennis, L. B. (1995). Decision Support Software/Production and Operations Management. Minneapolis/St. Paul: West Pub. Co. ERP5 Solution Operation | ERP5 Most Powerful Open Source ERP. (n.d.). ERP5 Most Powerful Open Source ERP. Web. Gunther, N. J. (2007). Guerrilla Capacity Planning a Tactical Approach to Planning for Highly Scalable Applications and Services.. Dordrecht: Springer. MRP Software . (n.d.). ERP Systems – Manufacturing Software Tuppas. Web. Otterson, D. (2012). Capacity Requirements Planning Software Crp. FINESSE ERP Software for Project-Oriented Manufacturers. Web. Singleton, D. (2012). Manufacturing ERP Software | Reviews of the Best Systems. Software Advice: The Authority on Software Selection. Web. Vai. (n.d.). Manufacturing Work Orders Module | S2K Enterprise. Software Solutions | Business Software | Enterprise Resource Planning. Web. Wallace, T. F., Kremzar, M. H. (2001). ERP Making It Happen : The Implementers’ Guide to Success with Enterprise Resource Planning. New York: Wiley. This essay on Operations Management was written and submitted by user Eliseo Y. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. Operations management Background The Philippines was governed by Spain between 1565 and 1898, before the United States took over until it became independent in 1946. The Islands experienced severe economic turmoil and martial law throughout the 21-year rule by Ferdinand Marcos (1965-86; however, Corazon Aquino (1986-92) restored democracy in the country. Thereafter, democracy was enhanced by other leaders such as Fidel Ramos, Joseph Estrada, and Gloria Macapagal Arroyo.Advertising We will write a custom essay sample on Operations management specifically for you for only $16.05 $11/page Learn More The country has more than eighty-five million residents, which makes it to have great disparities. A wide gap exists in ownership of assets, income distribution, human development, and geographic concentration of economic activity. For example, in 2002, the National Capital Region (NCR) around the city of Manila, with fourteen percent of the entire population, produced more than thir ty-three percent of the nation’s GDP. The socioeconomic status in the Philippines was divided into five groups. These are A, B, C, D, and E. The A, B, and C categories represented the upper, upper middle, and lower middle income households, whereas the D and E categories represented the lower income and below the poverty line households. Definition of the problem Because of the high levels of poverty that was facing the Philippines in the mid-1990s, few analysts believed that it was possible to penetrate this market with mobile phone services. The experts postulated that only five percent of the entire population was able to afford the services of mobile phones. It was thought that the number of people having cellular phones could hardly reach fifteen percent. Therefore, it was widely assumed that this device would continue to be regarded as a luxury item. Business executives, professionals, government officials, and high net-worth people were the ones who were considered to be wealthy enough to afford the services of mobile phones. The middle income earners were never targeted with this product. Another problem cropped up in early 2003 when investigations revealed that since a large portion of the population lived in poverty, it was impossible to sustain the market penetration efforts. This implied that most people could not be able to afford the services of cellular phones. Besides, since more than sixty-five percent of the population lived in rural areas, cellular phones services were limited or non-existent in those areas. Analysis of the situation Smart Communications Inc. is totally owned by the Philippine Long Distance Telephone Co (PLDT). It was established in 1994 and it started by using a well-developed analog platform referred to as TACS (Total Access Communications System).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It later established a cellu lar network with its own countrywide digital transmission system. It became the second largest mobile company in 1995, and by early 1997, it was boasting of 360,000 subscribers which made it become the largest mobile phone operator in the country. Smart managed to penetrate the Philippines market in which most people are regarded to be poor. For example, in 2000, the wealthiest ten percent of the country’s population had an income of over twenty three times that of the poorest ten percent. The poor were approximated to form up to thirty-nine percent of the population. The poverty rate in rural areas was estimated to be at 46.9 percent, while in the NCR was only 12.7 percent. The country had a young population in which thirty seven percent of the population fell under the age of fourteen years. Alternative solutions In order to reach the middle and the lower-middle market segments, Smart initiated a series of alternative solutions to achieve this. The company developed the fir st radical innovation referred to as Smart Gold. This subscription-based offering launched in October 1999, provided contract clients an option of monthly service plans going as low as PHP120 (US$2.16). After this, Smart Buddy was introduced in mid 2000. It was an aggressive low-cost, high-coverage service that was intended for the low-income individuals. Customers were able to access the offer by buying a PHP100 (US$1.80) prepaid, text-only SIM card that they used to reload airtime for various purposes. The airtime cards were available in various denominations that could suit the varied needs of the users. Additionally, in August 2002, the company introduced Pure Txt 100. It was a PHP100-denomination (US$1.80) text-only card which offered ten text messages per day for a period of one month. All these alternative solutions that Smart Communications adopted revolutionized the mobile phone industry in the Philippines since it was no longer considered to be a luxury item. Recommendatio ns In order to penetrate the larger consumer market that is mainly composed of those in the D and E market segments, Smart should intensify its innovative strategies. This is to avoid saturating the market since most people in the Philippines are living below the poverty line. For example, it can intensify the services of Smart Money. Since most low-income earners in the Philippines do not have bank accounts, the service would enable more people to transfer money securely. With this service, more users will be able purchase various items and reload various denominations of airtime at their own convenience. These increased benefits of the usage of mobile phones are able to increase the number of subscribers that Smart has by increasing the penetration into the low-income segments.Advertising We will write a custom essay sample on Operations management specifically for you for only $16.05 $11/page Learn More Furthermore, to reach the low-income market seg ments, the company should engage in intensive market research so as to understand the consumer buying behavior. This is because the consumers in the five different market segments in the Philippines exhibit different purchase behavior. In order to solve the problem of the high-cost of mobile handsets, the company can collaborate with other firms in developed markets to provide its users with low-cost second hand handsets. Prediction of outcomes By intensifying the efforts towards increasing the number of their subscribers, Smart Company is able reach the middle and the lower middle income market segments. This is because the ownership of mobile phones by these customers do not only serve ‘entertainment and enjoyment’ purposes. However, access to mobile phones give them increased benefits as it makes their lives to be easier and enable them to save some money. They are able to reduce the need to travel to carry out various activities, seek medical attention much easier, and communicate frequently with their friends and family members outside the country. The introduction of low-cost prepaid cards is also able to increase the number of its users. Even though these low-priced prepaid cards do not represent the most economic way of buying, they are able to suit the needs of the users in terms of low purchase price. The company is then able to survive on high turnover, low value transactions since low-income Filipinos engage in such purchases. This essay on Operations management was written and submitted by user Soft Flamingo to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.