Operations & Information Management

Presenting how well the inventories and assets within a production system are managed

Inventory management system is the tool which allow the company to track goods across the business supply chain. Through effective inventory and assets management system, Vinmar International also track goods and business can minimize the waste and then make better investment decision as well. In the same way, there are following ways through which are Vinmar International manage its inventory and assets such that,

Kanban: It is the workflow management and scheduling system which destruct bottlenecks in the plastics manufacturing process in order to make sure that output is good. This inventory and management system is actually helps Vinmar International to prevent product shortage and overstock while applying the supply distribution at each stage of the manufacturing process (Guenther, 2020). Moreover, this system is also preferably used in Vinmar International data system that make sure that company used proper resources in order to satisfy the need of customer. Get Assignment Examples? Talk to our Experts!

Economic Order Quantity (EOQ): It is another inventory and asset technique which is used by Vinmar International that keep focus on taking decision with regard to how much a quantity of inventory should company order at a specific time. Further, this model or tool also specify when should the firm may place the order, thus, when company reaches to minimum level, the store management will further reorder to the product as per their requirement (Claypool and et.al., 2019). This technique assist Vinmar International to save the order cost and also carrying cost which is incurred while placing the order. Thus, through this method, quoted firm Is quite able to place the right quantity of inventory and manage the product as well.

Just- in- time Inventory: This method allow Vinmar International to decrease the amount of inventory on hand by keep low stock for different product. This method also allow the company to optimize its operations and also help firm to take better decision on time. Along with this, Vinmar International also uses cloud based inventory management system which further provide an opportunity to have a clear and concise visibility for an inventory (Biton and et.al., 2019). This, method is also used by most of the company because it saves the cost of storage as well as insurance but small company avoid to use this method because it is quite risky as compared to other.  Thus, it is analyzed that Vinmar International uses best inventory and asset system in its working area and by complying with new and advance tools, quoted firm also keep managing entire inventory system in well manner. Such that the company is also one of the largest shippers of containerized cargo and that is why, it uses Bulk shipment where company transport the range of products when there is a high demand. It is so because it is a cheaper process and as a result, the entire product is shipped without any error. Therefore, the method also helps to manage the inventory and asset in better way.

Describing key operations involved in Vinmar International

Vinmar International is the global marketing and distribution development company for the petrochemical products. As company is operating at international level therefore, there are various key operations which assist the firm to its smooth operations. These are as mention below:

• Marketing and distribution: It is the key operation of Vinmar International such that it helps the firm to reach at wide range of public. As quoted firm's market product from world's leading petrochemical producers and it also serve their participation in the global marketplace (Vartanova and Kolomytseva, 2019). Vinmar International actually work to understand the petrochemical's suppliers' objectives and then develop the marketing plan so that they meet the demand and then sell accordingly. The company's global reach through the local presence make sure about the appropriate market position. Beside this, company also keep using new tools for marketing purpose. Such that it keep posting complete detail about new product in its website and social media so that it will attract new customers and then it will turn to enhance their sales as well. The distribution channel of Vinmar International is also wide because it operates at global level. Firm have good knowledge of plastic plastic market and it tries to apply this in market by offering high quality and also provide excellent properties of finished goods as well (Jia and et.al., 2019). So that Vinmar International creates an extremely new application and expanding its sales in this segment only.
• Logistic: the company has good relationship with international companies and that is why it is a central pillar of the business. The company had a pride on its logistics as a operational creativity because company is one of the top ten exporter of shipping containers in Port of Houston. Such that Vinmar International innovate overland transportation to the key market by reducing the time of shipment from 45 days to 10 or less than it (Matinaro, Liu and Poesche, 2019). On the other side, its logistic operation system is so good because it transport the product safely, and effective manner without indulging extra cost. Along with this, quoted firm also uses custom logistics solutions which is executed at global scale, that also assist in its smooth operations.

• Financing: Company is newly established firm and also has a strong financial history as well. Therefore, company has a good experience to manage country, credit and currency risk. It also offer attractive financial benefits to petrochemical producer and users which helps to maintaining long term relationship with them (Vinmar International, 2019). Moreover, Vinmar International have good and effective financial system and it also uses new and advance technology to maintain data on regular basis so that it will help in smooth functioning.

Describing the area in which organization's delivery system may fails

From the above, it is identified that there are three main key operations of the company which assist firm to attain its objectives within the system. While on the other side, there are two points where an organization's delivery system may fail to align its operational performance measures. These are as mention:

The operation performance measures may fails due to rapid changes in market. It is so because in this digitalized era, every company depends upon the new technologies and these techniques are continuously changes with time and this in turn also leads to change the business dynamics around data and decision. In the same way, if company did not adopt the new techniques within a firm for distribution channel then it will definitely hamper its brand image. Moreover, accepting these rapid changed within a business will help a business to grow otherwise leads to decline stage (Pakdil, Harwood and Isin, 2020). On the other hand, it is analysed that unclear strategy is another cause of failure or delivery system. Moreover, it is also analysed that Vinmar International only focus on reducing the waste, but when company did not develop the best strategy then it will creates leads towards decline.

Another key point is to low logistic system and inefficient personnel which are also consider the cause of fail to align its operational performance measures. It is realized that Vinmar International mainly focus on reducing waste and focus on efficiency. Even company also deal at international level, that is why when the firm did not have enough and strong logistic system in order to meet the demand of customers. At that time, organization's delivery system may ail to align its operational performance measures. On the other side, it is also analysed that the company initially established in 2019 and its makes all its effort for future growth and success (Kang and et.al., 2016.). In the same time, due to poor management system within a firm and did not have effective staff members who may support the business to reduce waste. At that scenario the chances of delivery the best variety of product to their customer may fail and it also affect the operational performance measures in negative manner. Want to get Assignment help? Talk Our Expert Now!

 In addition to this, as Vinmar International also deal at international level and provide best petrochemical products in order to meet the demand of customers. That is why, it is quite necessary for the business to also comply all the laws and regulations that helps to smooth functioning of a business in positive manner. Otherwise, it may leads to affect the overall operational system in negative manner.

How a lean approach could be utilised in production system

Lean approach is a methodology which is used to remove the waste within a operations, also one of the heaviest drains on profitability is waste. This method is also related to utilization of skill set as well as poor planning. Therefore, it is analysed that in lean manufacturing, waste is any expenses or an effort which is expanded but it did not transform the raw material into an item. As company wants to majorly focus on the reducing a waste and that is why, it is beneficial for the firm to use this method in order to reduce the failing which are already discussed. This method is also based upon the five principle of lean manufacturing i.e.

Define value:The first principle work on value which means what customer is willing to pay for (Lean production principles, 2020). For that company may collect demographic information which assist business to determine the need and amount which customers are ready to may.

Map the value stream: Under this, lean approach identify the unique value that company provide to their customers. In this, the goal is to use preference of customer's value as a reference point and also identify the activities that contribute to value. In this, all waste is identified and removed (Azadeh and et.al., 2017).

Create flow: Some strategies are developed that helps to mitigate delay and assist in smooth functioning. Currently for Vinmar International, to cope up with the rapid change in market, company has to implement new techniques that assist in growth of a firm (Singh and Sharif, 2019). Moreover, due to overcome the issue of under skilled employees, company have to provide training session in order to improve the system and meet the demand as well.

Establish pull: It is analysed that in every top company, inventory is consider a biggest waste in production system and by implementing this approach will help to minimize the issue (Roriz, Nunes and Sousa, 2017). This method also help in Just-in-time delivery and manufacturing where products are creates at a time with needed quantities only. In the same way, Vinmar also uses this strategy in order to reduce waste and deliver the product without any failure.

Pursue perfection: Lean approach makes continuous process improvement as a part of organizational culture and state that every employee should strive towards perfection while delivering the products that are based upon the customer needs only.

Therefore, it is analysed that by complying the lean approach within the business will help to improve the overall business and also assist in the smooth operations. Company may faces issue in the logistic and at that time, Lean approach used which reduce transportation waste. In addition to this, model also applicable for non- utilized talent which means that this type of manufacturing waste occur when the management fails to make sure that employees talent is being utilized (Nicholas, 2018). It is so because this waste also allow firm to include the development of staff, otherwise it may result in poor management. Or else, company may also provide effective training system to their employees so that they may retain and may helps to improve overall performance as well. Take Law Assignment Help from professional experts!

Describing three key findings to which lean approach may help production system

Lean approach is all about to minimize the waste without sacrificing the quality and productivity. Thus, it is the continuous improvement which helps to eliminate the waste and the three main key findings which may assist the production system with aligning its operational performance:

• This method helps to improve the efficiency of Vinmar International such that standardized work will also make sure that all the workers are doing well and they also correctly follow the same method every time. Moreover, this work also allow leadership to analyse the problems during the production system and further allow for continuous improvement as well (Dombrowski, Richter and Krenkel, 2017). Moreover, the method also let manager know about determine an issue and provide solution until it has been eliminated. As it is analysed that company faces issue related to developing strategy which may affect the overall operational system in opposite manner. That is why, by using lean approach will help to to develop the best strategy that assist company to meet the defined aim.
• Implementing lean approach with Vinmar International operational system will also create positive impact upon business such that the method is also helps to maintain inventory. Then it assist to avoid manufacture extra quantity of the products and in return it will assist to reduce extra cost of the company. Therefore, it creates positive impact upon the financial performance of the company (Yang and et.al., 2020). Not only this method also assisted to enhance customer relationship. Such that instead of solely focusing on the needs of all consumers, lean approach also focuses mainly on loyal consumers. Therefore, the method also helps to build the strong and reliable relationship with all trusted customers in order to keep steady flow of revenues. It is analysed that Vinmar International faces issue of rapid changes in market, though company comply with new and advance technologies. But these advance techniques are keep changing as the market demands and that is why, implementing lean approach with its operation management will help to meet the demand and develop strategy for the same.
• Implementing lean approach in Vinmar International will help to involve entire company because it is not only to put into action in only one area but it also promote the concept that everyone within a firm are a part of the team. Therefore, it is analysed that it will lead to develop better communication and also reduce space. It is analysed that quoted company faces issue in its logistic system and that is why, it may delay the delivery system as well (Chung and Mutis, 2020). That is why, using lean production helps Vinmar International to analyse the loophole and develop strategy to minimize the issue. On the other side, not having effective management system also create opposite impact. But implementing lean approach within a business helps to easily manage the entire work and reduce the waste as well.

Overall, it is analysed that lean production system is consider one of the most effective tool that helps to manage the entire working system and this approach is mainly focus on reducing waste, that is why, most of the company used this method during production system. On the other hand, it is also analysed that Vinmar International may face issue related to not having skilled training staff and that is why, company should provide effective training system to their employees which assist to maintain the overall performance of the company (Pakdil, Harwood and Isin, 2020). Such that Vinmar international may also provide training to employees not only on lean principles but the specific lean methods and process to be utilized moving forward as well.

CONCLUSION

By summing up above report it has been concluded that operation management system plays a crucial role in the success of every organization. Such that the current study concluded that by using Just-in-time, Kanban and Economic order quantity method will help the business to maintain inventory and asset in well manner. Further, report concluded that Financing, Marketing and distribution, Logistics are the key operation of the company which helps to maintain the overall production system in well manner. Moreover, it is also concluded that not having effective strategy and management system, and low logistics system with untrained employees are consider two points where the organization delivery system may fails to align its operational performance. Then study concluded that lean approach assist Vinmar International to reduce waste and only focus on efficiency and that is why, it is beneficial for the company to use this method that helps to maintain the overall system. Lastly, report concluded that by implementing this technique will help to minimize waste and also improve the overall efficiency of the firm.

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