operation management
Project description assume that you and your team members aim to establish a small or medium sized business (SME) with at least 2 tangible products and based on what you have learned do following tasks1 : Part 1
1. Introduce your business and its specifications.
2. Introduce your business products and their specifications.
3. Introduce your target customers.
1
OPMT 620 Group Project
You are supposed to complete this assignment in a group. This group project consists of different parts
and each team should upload the parts by its team leader respectively. The group project assumes that
each member of the group will be responsible for certain tasks of the project, but all the members of the
group will be collectively responsible for its outcomes. In forming your Group, you and your fellow
members should complete the following:
1. From up your Team. The team size should be 5-6 students.
2. Appoint a team leader. The team leader is responsible for coordinating team members and
communicating with me.
3. Identify your business. Suppose you want to establish and conduct a small or medium service
or manufacturing business with at least two tangible products. (You can find many business
ideas on Vancouver Public Library website. https://www.vpl.ca).
4. Complete the Team Charter and email it to me. In team agreement you will introduce team
member and team leader and group’s goal.
5. Develop a task list to complete team-project and do the project accordingly.
Project description
Assume that you and your team members aim to establish a small or medium sized business (SME) with
at least 2 tangible products and based on what you have learned do following tasks1:
Part 1
1. Introduce your business and its specifications.
2. Introduce your business products and their specifications.
3. Introduce your target customers.
4. Introduce your business surrounding industry and its global and local trends.
1 During this course you will be using the concepts from each chapter and incorporate them into your group project adding
more and more as you progress through the course.
https://www.vpl.ca/
2
Part 2
1. Write a vision and mission statement for your business.
2. Identify values of your business
3. Analyze your business by SWOT analysis.
4. Define a 3-years strategic plan for your business.
Part
3
1. Create a process flowchart for your production line
2. What would be the capacity of your operation and the break-even point for your business?
3. Balance your production lines based on your capacity and customer needs or your sales
goals.
Part 4
1. What is your inventory control method and discuss why you choose this method?
2. What is your inventory plan for different types of inventories?
3. Explain your supply chain and your supply-chain
strategy.
4. How you evaluate your subcontractors and vendors and measure and monitor your supply-
chain performance.
Part 5
5. What is your method for aggregate planning? Identify your aggregate plan for next Summer
for your products (at least two product)
6. Create your MPS and a BOM for your products.
7. Schedule the first week of this Summer based on your MPS. Explain your method and
strategy.
3
Group Project Deliverables
The group project has four parts:
1. Formal paper written in APA style and turned into me through Turnitin.com (the report should
be a minimum of 1500 words, double-spaced, and in 12-point font)
2. Group presentation using PowerPoint or a presentation medium of your choosing to the entire
class. It should be sent to me as a recorded video.
3. Participation in the presentations. This will entail a discussion from each of you posing
questions and comments on each other’s work. Each presenting group needs to be
answering questions as well.
4. Submission of your individual parts of the work you did for the project left unformatted and
turned into me through Turnitin. This will be about the only time you do not submit APA style
formatted documents to me. I reserve the option to fail students who do not work as part of
their team or who are determined to be plagiarizing their work. Plagiarism may result in stiffer
penalties according to the UCW academic rules on dishonesty.
Final report time table
1. Individual portion of Team Paper uploaded by Saturday Week 10
2. Final Report Due Friday Week 11
3. Group Presentation (recorded video) Week 10
4. Individual Questions and Commentary on Projects to be completed by Saturday Week 11
1. Create a process flowchart for your production line
2. What would be the capacity of your operation and the break-even point for your
business?
3. Balance your production lines based on your capacity and customer needs or your sales
goals.
Production line flowcharts
First step for our process flow chart is the prosses from seed to bean which is divided in two techniques wet processing and dry processing. As has been shown, the overall production (green beans) workflow involves the receipt of ingredients and processing workers from manufacturers, manufacturing, drying, hulling, cleaning, grading, polishing, sorting and bagging.
No
Quality control
Amendment
Meet Q.C criteria
Screening
Green coffee
Yes
Grinding
Roasting
Cooling
Equilibration
Meet Q.C criteria
Coffee
roasting
Mixing
Yes
Flavour
No
Amendment
Process Flowchart for coffee roasting
The processing of coffee roasting follows the method described below:
The green beans are measured and moved to storage hoppers using a belt or mechanical trolley. The green beans are delivered to the roaster from the storage hoppers. Roasters run at temperatures ranging from 370° to 540°C (698° to 1004°F), and the beans are roasted for anywhere from a few minutes to around 30 minutes.
We can choose from flavor-enhancing options like cinnamon, nutmeg, lavender, cardamom, and more
Extraction
(
Aroma
extreaction)
Grinding
Roasting
Green coffee
Quality control
Concentration
Aroma
Recovery
Cooling
Amendment
No
Meet Q.C criteria
Drying
Grinding
Primary freezing
Yes
Meet Q.C criteria
Yes
Instance coffee
Quality control
No
Amendment
Process Flowchart for instance coffee
The processing of instant coffee follows the method described below.
Green coffee is processed in a 5-8 column system with a cell capacity from a few kilograms until 1t with soft water. The process works semi-continuously, water at 160-180°C passing through the exchanger to the coffee from the removed cell to the one just filled with freshly ground, roasted coffee. Then cooled to 4-5°C in a heat exchanger and then sent into quality control.
If we want to dry extract concentrates of 30 percent, we will lose a high degree of aromatic substance. We choose the sample with the extract concentrates of 50 to 60 percent for the drying part and mix with aroma or cold extract to achieve the 40% concentration.
In instant coffee processing, there are primarily two distinct methods of drying the extract: spray drying and freeze-drying. We choose freeze-drying, which includes primary and secondary freezing, grinding and drying.
The Q.C. sections are the main part of our firm. In each area, if the Q.C rejects the quality of that section’s product, it will go to the amendment section, and after amendment again, it will be checked by the Q.C. until Q.C accepts.
References:
Process flowchart. Sucden.
https://www.sucden.com/en/products-and-services/coffee/process-flowchart/
.
R. G. Ostendorf (ed.), “Coffee Processing”, Air Pollution Engineering Manual, Van Nostrand
Reinhold, New York, NY, 1992.
Production of mild gasification co-products project. Fourth quarterly technical progress report, [October 1, 1992–December 31, 1992]. (1993).
https://doi.org/10.2172/101359310
Mission, Vision Statement and Values of the Business
Business Surrounding Industry and its Global and Local Trends
A cup of coffee can only be as good as the beans it was brewed from. We are passionate about sourcing high quality coffees and creating impact through our purchase. We take pride in our craft, small batch roasting, and are committed to serving up only the finest coffees that Vancouver and British Colombia have to offer. When you choose to serve our coffee, you bring unmatched coffee excellence to your customer’s cup, creating a memorable experience that empowers your brand.
The best coffee in Vancouver, British Colombia doesn’t happen by chance. Our coffee is a result of many people’s hard work, from the inspiring farmers who produce the ripe cherries to the barista who pulls the perfect espresso shot. Our coffee is produced by professionals at every step of the supply chain, and support the livelihoods of everyone involved.
Vision and Mission Statement of the Business
Mission Statement
Our coffee roaster serves a coffee that brings unmatched coffee excellence to the customer’s cup and create a memorable experience that empower our brand
Vision Statement
Linking coffee farmers, roasters and customers’ experience
Values of the Business
Creating an unforgettable coffee experience
Customer oriented
Taste in a quality
Bringing unmatched coffee excellence
Supporting the livelihoods of everyone involved
Part 2, Question 3: SWOT analysis for xxx Coffee
|
SWOT Analysis for xxxx Coffee |
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Strengths |
Weaknesses |
Opportunities |
Threats |
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|
Strong financial base due to internally sourced capital from the 5 partners. |
Low barriers of entry into the market |
Development of new products, coffee trends, and varieties in alliance with the vendors |
Easy entrant into the market for other competitors |
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|
High-quality products: |
Many alternative or substitute competitive products |
Attract new customers with special offers and a loyalty program |
High product imitability
|
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|
Focus on a strategic market or niche – Providing specialist but affordable coffee |
Strong existing competitors |
Build stronger customer relationships with the re-fillable bags/tins |
Availability and preference of other drinks/beverages |
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|
Unique packaging with reusable bags and Tins – sustainability |
Storage of the ingredient is not easy |
Extension of product lines /ranges and expansion into new segments or geographies. |
Competitors targeting the same focus group of customers |
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|
Advertising campaign to obtain good brand visibility e.g., refer a friend and get $10 |
Limited market share |
Build our brand awareness by introducing an app, selling online, or offline (wholesale or retail), and via coffee subscription |
Abilities of competitors to provide additional benefits to the customers |
||||
|
Ethical sourcing based on fair trade and direct contact with the farmers |
Low brand awareness |
Foster relationships with people who influence others online – “influencers”. |
Underpriced products due to large competitors with history and more efficient processes |
||||
|
Having an innovation culture with investments in systems and technologies |
Outsource coffee delivery services |
Weak or ineffective bargaining power with the few suppliers |
|||||
|
Good corporate culture |
Possibility of global expansion, with a multi-domestic strategy and franchise model |
Limited or low-profit levels |
|||||
|
Poor customer reviews and ratings on websites |
Table: Oyeniyi M. (2020) SWOT Analysis for xxx Coffee
Part 2, Question 3: Three Years Strategic Plan
Following the outcome of the SWOT Analysis, several alternative strategies could be beneficial to xxx coffee, and these include
· A good corporate culture of continuous improvement in employees, systems, and processes
· Development of new products, coffee trends, and varieties in alliance with the farmers.
· Continuous investments in technologies and developing an innovation culture.
· Ethical procurement practices of not buying coffee beans from poor third world farmers
· Establish a strong web/online presence by developing a website and app
· Reinvests its profits in the first three years in expanding the business.
· Engage in B2B and B2C
· Retain B2B via supply deliveries to coffee shops/cafes and large organizations
· Retain B2C via loyalty program and social media presence on Instagram and Facebook
· Outsource same-day delivery services
· Strategic alliance with dropshipping companies.
XXX Coffee business in the first three years of operations should consider a business-level strategy focused on differentiating its products by investing in its core competencies of developing and producing a wide variety of premium yet affordable products. The company should utilize the new technologies and innovation while keeping a sustainability mindset.
· At the corporate level, a diversified supply chain strategy will create synergy for xxx coffee. Having a long-term agreement with selected farmers to internally research and develop new coffee quality/varieties will provide competitive advantages and profitability.
· Vertical forward integration including wholesale of products to large organizations and/or coffee shops and opening retail outlets which could be cafés, stores, or gift shops. This will reduce dependence on distributors and build stronger customer relationships.
· Explore related diversification to produce complementary products like chocolate with the same resources. This will provide xxx coffee larger market share than some competitors and an improvement in bargaining power with both suppliers/farmers and customers
Part 4. Question 1: Inventory Control Method for xxx Coffee
To maintain a clear view of our stock and inventory lifecycle, the Economic Order Quantity Model (EOQ) will be used as a base, to ascertain the correct inventory order quantities to be bought, with due considerations for demand rates, the total cost of production, and other variables. This model will help us minimize cost via the identification of the optimal order quantities that will balance the ordering and storage costs without keeping cash overly tired down. The EOQ is a convenient and robust inventory management method will allow us the flexibility of working with available estimates of demand, ordering cost as well as holding cost without fear of being outrightly wrong. We will also use the Quantity Discount Inventory Control method to avail ourselves of discount opportunities when offered by the farmers – that is, if quantity discount being offered, minimizes the total annual inventory cost.
Reference
Heizer, Render, Griffin (n.d), Operations Management: Sustainability and Supply Chain Management, 3rd Canadian Edition, ISBN-13: 9780134838076, Series: MyLab Operations Management
Karakowsky, L., Guriel, N. (2014). The Context of Business. [VitalSource Bookshelf 9.4.0]. Retrieved from vbk://9780133589573