Operations, Synthesis and Professional Practice Project

Module code: MMN220983

Trimester 3

Session 2011/2012

HASIB ULLAH

Student ID: SO910606

Dissertation Project Portfolio, Submitted in partial Fulfilment of the

Msc Global Supply Chain and Logistics Management

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“This project is my own original work and has not been submitted elsewhere in fulfilment of the requirements of this or any other award”

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I have:

Read and understood the guidance on plagiarism in the Postgraduate Handbook

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Provided the sources for all data in tables and figures that are not my own work;

Not made use of the work of any other student(s) past or present without acknowledgement. This includes any of my own work, that has been previous, or concurrently, submitted for assessment, either at this or any other educational institution, including school;

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In additional, I understand that any false claim in respect of this work will result in disciplinary action in accordance with University regulations.

Student Name (Print): _________________________ Matriculation No:

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Student Signature: ………………………………….............…… Date: .....……………………………………….

ACKNOWLEDGEMENTS

Firstly, I would thank Almighty Allah for giving me the strength to do my dissertation and afterwards I would like to take this opportunity to thanks my family and friends, particularly Ishrat Perveen, Wali Muhammed, for their constant support and patience throughout my research.

But the most important person throughout my dissertation is my research professor Dr karen to whom I wish to convey my heartfelt thanks for guiding me in my dissertation.

Content Page

Executive Summary

1.0-Constancy Approach………………………………………………………………………………………………..2

1.1-Introduction …………………………………………………………………………………………………………….2

1.2-Literature Review ……………………………………………..………….………………………………………….3

1.2.1-Layout ……………………………………………………………………………………………………………………3

a-Product Layout……………………………………………………………………………………………………4

b-Layout Processes……………………………………………….……………………………………………5

1.2.2-Inventory management………………………………………………………….……………………………..6

a- Lean System ………………………………………………………………………….…………………………..7

1.3-Situation Analysis ……………………………………………………………………………………………………10

i-Strength…………………………………………………………………………………..……………………….10

ii-Weakness……………………………………………………………………………………..………………….10

iii-Opportunity ……………………………………………………………………………………………..….11

iv-Threat……………………………………………………………………………………………………….…….11

1.4-Problem Identification ……………………………………………………………………………………………12

1.5-Recommendations ……………………………………………………………………………..……..………….14

1.6-Proposal ……………………………………………………………………………………………….………………..16

References………………………………………………………………………………………………………………………

2.0-Dissertation…………………………………………………………………………………………………………21

Executive Summary

2.1-Introduction …………………………………………………………………………………………………………..21

2.2-Literature Review…………………………………………………………………………………………………22

2.2.1-Overview of the chapter………………………………….…………………………………………………22

2.2.2-mportance of Warehousing ………………………………………………………………………………..22

2.2.3-Warehouse management System …………………………………………………………………………..23

2.2.4-Challenges to be kept in mind when developing WM……………………………………………24

2.2.5-Technologies………………………………………………………………………………………………………….25

2.2.6-Transportations………………………………………………………………………………………………………27

2.3.1-Problem Identification…………………………………………………………………………………………….30

2.3.1-Research Methodology………………………………………………………………………………………..32

a-Interviews……………………………………………………………………………………………………………………….32

b- Survey ………………………………………………………………………………………………………………………34

c-Research Approach……………………………………………………………………………………………………….35

d-Mix Methods………………………………………………………………………………………………………………….36

e-Sampling…………………………………………………………………………………………………………………….37

f-Validity and Reliability……………………………………………………………………………………………………37

g-Time Horizon …………………………………………………………………………………………………………….38

h-Ethics …………………………………………………………………………………………………………………………..38

2.3.3-Plan of action …………………………………………………………………………………………………………39

i-First Month ……………………………………………………………………………………………………39

ii-Second Month………………………………………………………………………………………………….39

iii-Third to Fifth Month………………………………………………………………………………………..39

iv-Sixth to tenth Month ………………………………………………………………………………………40

v-Eleventh Month……………………………………………………………………………………………….40

vi-Twelfth Month …………………………………………………………………………………………….41

Reference

Executive Summary

3.1-Introduction ……………………………………………………………………………………………………………..48

3.2-Reflection…………………………………………………………………………………………………………………..49

3.2.1-Significance of hard and soft skills…………………………………………………………………………..59

a-Interpersonal Communication………………………………………………………………………………………50

b-Team Work ………………………………………………………………………………………………………..……..50

c-Leadership style …………………………………………………………………………………………………………..51

d-Problem Solving…………………………………………………………………………………………………………..52

e-Time Management………………………………………………………………………………………………………53

3.3-Personal Reflection………………………………………………………………………………………………..…54

3.3.1- Personal Strength ………………………………………………………………………………………………..54

3.3.2-Personal Weakness…………………………………………………………………………….…………………56

3.3.3-Personal Challenge…………………………………………………………………………………….………….58

3.3.4-Personal Goal ………………………………………………………………………………………………………….58

4.12-Reference

5.0-Appendix

5.1-Appendix 2

5.2 Appendix 3

5.3 Appendix 4

Executive Summary

In competitive world organisations are increasingly competing amongst each other, and internationally with other organisation for spaces to sell their products in their respective markets. To ensuring competitive edge organisations are increasing focusing in improving and enhancing their existed manufacturing processes. The purpose of this report is to critically evaluate the problems which Ogel organisation is facing in their manufacturing process by providing recommendations on those issues.

Initially, in the literature review a critical discussion was discussed on possible solutions. Ogel faced serious challenges from its functional/process layout, and batch flow process understanding of these problems eventually led to the development of mechanism solution such as alternative plant layout for Ogel which is called product layout utilising line Assembly in addition to these solutions other feature are also highlighted that Ogel might consider to adopt Just in time because it reduce the waste as product as when is required. Other feature is Kanban system, it allow the proper structuring of products. Ogel will be explained the time frame, in terms of how the solutions presented could be implemented and finally wrapping the discussion with providing of recommendation.

In light of situation analysis of the company and problem identification, it became clear that organisation’s current strategy in terms of manufacturing process is causing serious problems and hinders Ogel for becoming successful company to fulfil the orders of its customers on time.

It is critically recommended that Ogel adopts the solutions been presented to them and deal with the problems occurred but it is in their best interest to implement the solution suggested failure to act upon the recommendation, mean their problems will persist which can ultimately translate into the failure of the organisation since dissatisfactory customer will likely move on to other competitor organisation for the making of their products.

1.0: Consultancy Approach:

1.1-Introduction:

This main objective of this report is to investigate problems and to recommend the

solutions to Ogel Production Corporation. After, participations in the Federal-

Mogul Business Game, it became evidently clear that Ogel Production Corporation

have serious problems, in their factory that are hindering Ogel’s ability to satisfy its

customer orders in the agreed time frame leading to further harmful consequences.

After identification the issues and their impact, strategies to eliminate production

problem facing Ogel has been discussed. The first section of this report will present

the literature review, with detailed critical discussion of theories, concepts, which

can aid the organisation to overcome their challenges from issues has been

identified in playing Ogel game. The Second section of this report will cover the

consultancy approach starting with situation analysis; this will be done to

understand the problems of the organisation through ‘SWOT’ analysis. After

situation analysis, problem identification was conducted with aid of cause and

effects diagram to understand the areas that require attention to fix the problems.

Then recommendation has been presented containing the solution for Ogel’s

problems and lastly proposal will be discussed stating the time frame in which the

solution can be implemented.

1.2-Literature Review:

This literature will critically discuss the solutions to manufacturing problems of

simulation games. In simulation games initial problem got noticed was layout

followed by its process problems that impacted the game which resulted in waste

of time and material. Literature will provide solutions. Change in layout is

suggested with replacing of process layout with product layout. Batch flow process

also further made the situation more complex, so it suggested that alternatively

Assembly line is adopted. To eliminate the waste from manufacturing;

implementation of Lean and Just in time are recommended.

1.2.1-Layout

Layout of operation is concerned with physical location (Slack et al., 2010, p. 177).

Plant layout is central decision for any organisation since its represents long -term

commitment. Any misjudgement in making the decision to choose appropriate

layout can render organisation ineffective and uncompetitive in their respective

markets. Glover and Laguna (1999, p. 297) further express the importance of

layout by arguing that effective utilization of layout, can results in 20 to 50 per cent

reduction of the total operating expenses in manufacturing, since they mainly

consist of material handling and layout related costs.

The failure on part of the organisation to choose the proper layout can potentially

lead to confused flow patterns and as a consequence, resulting in inflexible

operation, unpredictable flow and high cost (Slack et al., 2010, p. 179). So, it is

important that companies will design an appropriate layout which efficiently

integrates the components/elements of output, floor area and manufacturing

process.

a. Product Layout

The two layouts most frequently found in manufacturing are process and product

layouts. Product layout can be defined as “in which the product is assembled to its

finished form” (Young, 2010 p. 264). In product layout ‘materials’ sequentially

moves forward to another machine without any backtracking enabling for output of

one machine to become input of the next machine. A product layout offers a

number of advantages : Lussier (2012, p. 509) notes that this layout can be very

beneficial as it sets the routines “that help standardise operation and reduce

complexity along with providing a basic for collaboration a common vocabulary,

and a common set of principle for making decisions”. A process layout can “be

more complex because of the need to organise different types of work in different

areas of the company” (Young, 2010, p. 264, Chary, 2009 p. 38) notes that the

failure to organise a process layout effectively can increase costs failure to achieve

that accuracy by the company can negatively impact them. In presence of

information mentioned it can said product layout is much more appropriate/

feasible for the companies to adopt in their work place since it is much simpler and

more straightforward product layout to adopt and practice than a process layout.

In manufacturing the ‘cycle times’ depend on the desired output rate but can also

be influenced by maximum workstations that are allowed. As a result, the

maximum line efficiency differs as per selected cycle time. Exploring various

available cycle time makes sense, as its can allow the manager to compensate for

the mismatch through changing the number of hours of the manufacturing line

operate each day or through extending the shift hours of the workforce by adding

new shifts. These solutions can be effective for a particular line in the

manufacturing working processes but might fail to address the problems in multiple

lines (Krajewshi et al, 2007 p. 331).

An important issue in all manufacturing processes is pacing, the movement of

product from one station to next as soon as the cycle time has elapsed, (Krajewshi

et al, 2007 p. 331). In manufacturing process pacing allow material handling to be

automated and requires less inventory storage area. However pacing is less flexible

in dealing with unexpected delays in handling situations where organisation either

has to slow down its entire manufacturing production or alternatively pull the

unfinished products off the production to be done at later time.

The lead-time for a certain job is the time that must be allowed to complete the job

from start to finish. There are two types of lead time which are ordering lead time

and manufacturing lead time. An order lead time for an item is the time required

from initiation of the purchase of raw material that is stocked by the supplier it

should be kept relatively short while manufacturing lead time is the time needed to

process the products through sequence of machines (Mishra, 2009 p. 147).

b. Layout Processes

Companies can choice from several types of processes available in order to support

the structure of their chosen layout. An assembly line process is one such process

which largely used by the organisation to support product layout. In assembly line

process, a product is moved down the line where workforce, who usually staying in

their respective workstations areas assembles the product that is moving from one

station to another to them. This practice is adopted to ensure that time required to

perform task at each workstation is the same (Khanna, 2007 p. 199). While the

batch flow that is practice in the process layout also moved the product from one

machine to another in batches but it lack the characteristic of a linear arrangement

like the assembly line (Young, 2010 p. 244). Assembly Line process seem better

system between the two organisation might wish to consider.

1.2.2-Inventory Management

Inventory management refers to the process of managing the stocks of finished

products semi-finished product and raw materials by the firm. The practice of

Inventory management if done correctly can significantly reduce the costs while

increasing the revenue for the organisation (Saxena, 2009 p. 2). It is important that

organisation develop good inventory management because the lack of inventory

management can lead to stock-outs resulting in the stoppage of production.

According to Bose, (2006, p. 2), to address this situation control of the inventory

must be compatible with the goals, function and demand of the particular

inventory. Toomey (2000, p. 8) notes that the inventory control is considered the

important responsibility since in many organisations purchasing, moving and

controlling the materials is costly for them because approximately 50% of the costs

in majority organisations are related with purchasing of goods. This clearly

highlights the importance of control over inventory management since it can have

significant impact whether an organisation meets its objective (Lussier, 2012 p.

517).

a. Lean System

To achieve inventory control organisation can use lean. Which systematically

eliminates all non-value adding process in order to achieve targets with least

possible effort commented by Sonnenberg and Sehested, (2011, p. 3). Wang (2011,

p. 1) defines Lean manufacturing as “the production of goods using less of

everything compared to mass production: less waste, less human effort, less

manufacturing space, less investment in tools, and less engineering time to develop

a new product”.

There are two approaches to inventory management: Material Requirements

Planning (MRP) and Just-In-Time (JIT) both these system are designed to address

the situation of waste. Material planning (MRP): Dennis (2007, p. 69) states that

MRP is a computerised system that attempts to keep track of inventory, order

material and send instructions to all department in the manufacturing related to

what they should produce next. But there are major problems with MRP system,

which is that if all relevant instruction are not logged properly into the system as

they proceeded from one production to the next that can lead to errors began to

accumulate resulting in defects, equipment downtime, unscheduled changeover

etc. The issue with MRP is that it cannot be used immediately by the organisation

as its computer system, which is just part of the total project which is usually long-

term, taking one to three years to develop before organisation could use them.

MRP uses ‘Push system’, is considered the top system which discover the product

quantities all the way to the lowest level. MRP triggers a series of order to

manufacture the product in designated quantities but this approach leads to weak

control over the production.

The other approach that available for inventory management is Dennis (2007, p. 67)

mentions that Just-In-Time production aim to achieve the production of the right

items at the right time along with right quantity eliminating wasteful inventories.

As a result of Just in time implementation by organisation their inventory of raw

materials and work-in-process is likely to falls to the level needed each day. This

situation is achieved by reducing set-up times and lead times so that small lots may

be ordered. It means that suppliers might have to make several deliveries a day of

their product demanded by organisation. This is done for achieving the defect- free

high quality materials so that cost of inspecting the material before the storage is

eliminated and further for avoiding the stopping of production line due to defective

material (Bhattacharya, 2006 p. 247).

Hansen &. Mowen (2006, p. 3) state Just in time brought about many significant has

many advantage through improvement like better quality, increased productivity,

reduced lead time, set up times and major reduction in inventories mean less

investment by the organisation as they purchased the material that is precisely

required. Gopalakrishnan (2010, p. 133) argue other advantage to the organisation

for Just in time it positive approach of Just in time because it good at forecasting

abilities that can establish customer demand while highly flexible in production

lines that can produce a selection of different items eventually leading to zero

waste and reduction of scrap by organisation. All these aspect has encouraged

many successful organisation likes of Wal-Mart, Ford, and Motorola to implement

JIT techniques in their organisation.

JIT manufacturing is a demand pull system, it control the flow of work through the

entire organisation by only releasing the material, extra goods are only released

into the process accordingly when customer demand them. However the

instruction to begin building the product comes from downstream only those parts

are created which are asked by downstream workstation and if there is no

instruction received to build more parts then operator stops building. The prime

aim of this pull production is to eliminate the over production (Wang, 2011 p. 221).

An effective JIT inventory control process requires kanban. Kanban is considered a

visual tool in which quality is fundamental part that is used by the organisation to

achieve JIT production through managing flow and controlling inventory. Cimorelli

(2006 p. 13) Kanban eliminates buffer inventories and communicates customer

demand upstream to trigger process steps just in time to meet demand by

acquiring products at the time needed in the quantity needed. Kanban benefit can

only be optimised once the organisation removes some of its own non-value added

activities and operate in the direction of lean. However, Kanban is no without its

problems as organisation demand increase the Kanban system had to adjusted

correspondingly, such actions in Kanban can increase the complexity of the Kanban

making it difficult to manage it (Wang and Nee, 2009 p. 323).

There are two types of Kanban are relevant to this manufacturing context are

supplier Kanban and withdrawal Kanban. In supplier Kanban order are given to

outside supplier for parts needed at assembly line in the manufacturing of the

product. Withdrawal Kanban is used between the processes providing the details

needed to withdrew products from the upstream acting as a signal for the more of

that product to be manufactured (The productivity Press Development Team, 2002,

p. 63). Effective uses of Kanban by the organisation can bring them several benefits

it reduce the excessive requirement for inventory as a result preventing

overproduction since product only would arrive at the organisation when there are

required and in the quantity needed. This allows the organisation to response to

change in demand as there would be no excessive inventories holding them from

adopting change in fact minimize risk of inventory obsolescence, according to

(Gross and Mcinnis, 2003 p. 4). Use of Communication technologies like Electronic

Data Interchange (EDI) can help further enhance the command mechanism of Pull

system in order to replenishes stock from supplier (Baudin, 2004 p. 43) Implanting

Just in time along with Kanban system could significantly enhance the performance

of the organisation.

There are many tools are available for performance management, which are

essentials that organisation should use for both monitoring and analysing the

effectiveness of the progress of new aspect been implemented by them in the

organisation. As performance management tool can allow the organisation to

detect the problem and adopt appropriate solutions.

1.3-Situation Analysis;

Ogel Rowet has many strengths, weaknesses, threats and opportunities, the

knowledge of which can help them to inform better their future decision making.

i. Strengths – the supplier to Ogel Rowet was always punctual in providing the

organisation with the raw material on time. The raw material delivered by the

supplier was always of good quality and free from defects, enabling Ogel to

continue their production of products without any hindrance from this supplier.

The number of staff that was available to conduct the operation of the machines in

each of the department was sufficient, allowing for the continuation of a smooth

flow of operations by their respective departments. The machines that were

available to staff in all departments performed their functions at an optimal 100%

level, without any break downs throughout the entire operation.

ii- Weakness- The layout that was adopted by the organisation to run the

operation, along with the support of different processes created problems for

them, as staffs were initially confused about whom they were supposed to

coordinate with for taking raw materials for their specific department. Due to the

complexity of the layout there was also a mismatch in the production of products as

the base was taking six weeks while the top were taking five weeks. This meant

that there was a delay of one week before the final assembly of the product could

place.

In Ogel on two places de- burr were used in the manufacturing floor where parts

stayed each week which besides being irrelevant and serving no purpose to the

organisation, resulted in products being produced late, disturbing the

organisational flow and making them unable to meet demand. This caused losses

to organisation as late products were sold to customers on reduced prices, causing

reduction in the revenue, since Ogel had to sell their products below the agreed

price.

The other weakness occurred due to approaches that had been practice in the

organisation. This resulted in weak control over the organisation since there was

no centralised person controlling the organisational decision making process. This

further added to the complexity because it became virtually impossible for team

members to make a plan with regard to fulfilling the particular demand order on

time as required by the customer. This resulted in several orders remaining

incomplete.

iii- Opportunity- If Ogel decide to adopt different layouts along with different

processes to support the layout function, this could have a positive effect on the

organisation, since the combination of layout and process can simplify the

operational mechanism. This in consequence could improve the coordination

amongst the various departments, increasing the production and eventually leading

to them meeting the demand targets.

As Ogel become able to address the challenges through adopting new approaches

in the organisation, it will be highly likely to have positive impacts on the outlook

amongst potential future customers. Those potential customers would likely to be

more inclined to do business with them. This could significantly increase the

revenue sources and as a result making them more profitable.

iv- Threat – There were many treats that were faced by Ogel. One was that the

Supplier had stiff penalties since the supplier sells Ogel raw material at their

preferred interest rate with no option for negotiation. The other threat was that

the owner of the facility did not co-operate at all with Ogel. The owner always

demanded payment is made on time. Failure to make payment on time can result

in Ogel being told to evacuate the facility.

Due to the continual late meeting orders Ogel, it is likely to increase customer

dissatisfaction which can be a cause of concerns as customers could in future cancel

their order with Ogel and move to a new organisation. Such scenarios can create

serious financial implications for Ogel; with no customers they might go out of

business.

1.4- Problem identification

In the light of the above contextual discussion and with the aid of a cause and effect

diagram, problems and their respective solutions will be provided. Ogel, in relation

to the cause and effect diagram, faced several challenges. Three significant

challenges to Ogel came to light which were Layout structure, the Process chosen

and inventory Management. Applying the cause and effect diagram to the

organisation from a people perspective, showed a lack of proper training to the

workers to perform their tasks efficiently and there was a communication crisis

amongst people. Lastly, there was no mechanism or tool practiced to judge the

performance of inventory activities performed in the organisation.

In Ogel, the Process layout was used for manufacturing products. It caused many

problems for the organisation. Process layout is considered extra complex in

managing operations since in it, different types of work processes are performed in

different areas of the organisation. Affiliated with process layout is lead time

amongst various productions which was different, as 5 weeks were taken to make

the base of the product, while 6 weeks were being taken for the top to be

manufactured. Due to De-Burr being used products stayed for one week at each

de-burr point, before moving to the next allocated area. This absolutely added no

value to the organisation but made it very difficult to visualise the WIP and make

planning to deal with future demand orders difficult.(see old process Layout

Appendix 3 )

The set up time required for changing from one colour product to the next colour

product increased the problem further because as one department goes off this

would mean on that particular week, the next workstation would not receive raw

material to produce their products, disturbing smooth flow of movement. This

resulted in Ogel products being created and delivered late to the customer who

then paid less than the agreed amount for the products being sold to them late,

causing financial problems to overcome the expenditure issue, Ogel had to acquire

a loan from the Bank for taking new suppliers of raw materials and paying the rent

for the facility.

Ogel used a Batch flow process; it moves the product from one workstation to

another workstation in batches but it lacks the characteristics of a linear

arrangement like the assembly line. This scenario adds to the confusion in the work

place as staff juggle in between manufacturing products and engaging in acquiring

new raw material from previous departments which could have been located

anywhere in facility.

Ogel for its Inventory control used many tool likes of MRP and Push system with the

aim to strengthen the control on the movement of Products. The MRP system has

one very serious drawback. If all relevant instructions are not logged properly into

the system, as manufacturing products proceed from one production to the next

this can lead to errors beginning to accumulate, resulting in defects, such as

equipment downtime and unscheduled changeover. While the push system is weak

at control it also caused problems because there was no centralised system/ person

for coordinating the activities of various departments that made it even more

difficult for employees to ensure they get their appropriate raw material on time.

Due to MRP push system employees on several occasions had to vacate their work

stations to engage with other member, which only complicate further doing the

manufacturing.

1.5- Recommendation:

The aim in the later discussion is to enable Ogel new tools and direction so they can

achieve the smooth flow in manufacturing process without any hinders with the

least amount of wastage in particular in inventory so that Ogel could become an

effective and efficient organisation that can aim to reach the target of optimal profit

from its business.

For improving its layout structure, Ogel should look to adopt product layout

replacing its previous process layout structure. In product layout, goods are

assembled to finish by moving from one station to another, without backtracking.

This is quite beneficial since it standardises the operation and minimises

complexity. New Product layout can also help address the lead time difference

between the base and top, enabling them both to reach final assembly line

simultaneously. It makes it easier to visualise the Work in Process (WIP) that in turn

allows for better panning for meeting set demand order targets on time. .(see new

Product Layout Appendix 3 )

Product layout will also allow for collaboration amongst workstations and making of

common set of principle in decision making, which can help tackle set up times as it

allow all department to make the coordinated plan so the manufacturing workflow

in terms of raw material doesn’t arises. This will also help Ogel to minimise

occurrences of late orders which will increase profit margins for the organisation as

they would be receiving full agreed amounts of their goods sold to customers,

making them financially more stable organisation.

Ogel should adopt different processes for supporting their new layout such as the

assembly line product moving from one station to another station so that the

required time to perform the task at each workstation is the same. This makes the

assembly line process much easier to understand in contrast to the batch flow

process being used, since the assembly line process avoids confusion in the staff

because they do not need to worry about acquiring new raw material which will

come to them from the facility located behind them.

Ogel for in controlling their inventory should try to choose tool likes JIT with and

Pull system. Just-In-Time production aim to achieve the producing the right items

at the right time along with right quantity eliminating wasteful inventories rather

than optimize them. By making improvement like better quality, increased

productivity, reduced lead time, set up times and major reduction in inventories

mean less investment by the organisation as they only be purchasing the material

that is precisely required. Just in time also good at forecasting and meeting

customer demand since it’s highly flexible.

Kanban is considered a visual tool in which quality is fundamental part. Kanban is

used by the organisation to achieve JIT production through managing flow and

controlling inventory. Kanban eliminates buffer inventories and communicates

customer demand upstream to trigger process steps just in time to meet demand

by acquiring products at the time needed in the quantity needed. JIT help address

the issues which come to light from implementing MRP likes of errors began to

accumulate resulting in defects if everything doesn’t go as planned.

To ripe full benefit of JIT, Ogel should consider using Pull system in their

organisation. Pull system control the flow of work through the entire organisation

by only releasing the material, items extra are only realised into the process

accordingly when customer demand them. This enables Ogel to tackle the problem

of weak control resulting from staff continuous need to go from their workstation

to plan and acquire required raw material needed by them for future uses.

1.6- Proposal:

It is essential that all the recommendation stated are not implemented

instantaneously as there is high probability that might lead to confusion and

problems in the organisation. Ogel must implement new idea as they will be stated

to them.

It will take Ogel between 3 to 6 months for plant layout change from process layout

to Product layout along with implementing Kanban. Since Kanban consist of

scheduling so it can happen once layout structure is complete. It is likely that

optimal use of the new system can take some where one year span to happen. Ogel

should also focus on training their staff to changes that are happening in the

organisation so that maximum efficiency in terms of smooth flow product

manufacturing could be achieved from the staff. Finally, Ogel should use

performance measuring tool to judge or gage how successful they are so they can

look at alternative mean available to address can difficulty that might arises.

REFERENCES:

Baudin, M. 2004, Lean Logistic: The Nuts And Bolts of Delivering Materials and Goods, Productivity Press, New York, pp 3, 34

Bhattacharya, H. 2006, Working Capital Management Strategies and Techniques, Prentice-Hall of India Private Limited, New Delhi, pp 247, 301

Bose, C, D. 2006, Inventory Management, 1st Edition, Prentice-Hall of India private Limited, New Delhi, pp 2

Chary, N, S. 2009, Production & Operations Management, 4th Edition, Tata McGrew-Hill Education Private Limited, New Delhi, pp 38

Cimorelli, S.2006, Kanban for Supply Chain: Fundamental Practice for Manufacturing Management, 1st Edition, Productivity Press, New York, pp 13

Dennis, P. 2007, Lean Production Simplified: A plain Language Guide to World’s Most Powerful Production system, 2nd Edition, Productivity Press, New York, pp 67, 73

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Executive Summary

In today’s Globalised world where demand of goods dramatically decline and fluctuate, in such scenarios to ensuring smooth flow of goods are available in the market to the customers, warehouses and transportation plays a central role. In crafting warehouses and transportation processes more efficient organisation are increasing adopting different information communication technologies. The purpose of this report is to critically evaluate the problems occurring in various departments of the Heathcote whiskey and provide Heathcote whiskey with possible recommendation to overcome the problems in one year.

To achieve that objective consultant initially Problem identification will be made by implementing plan of action in the first month analysis of the Heathcote was done along with construction of CEO interview. In second Month, face to face Semi-Structured interview will conducted with CEO, in which Ethics will finalise and initial probing will done of the problem by gathering information of problematic areas. This Information was analysed for the later part of the month. Third and fourth Month to achieve the objective consultant will utilise semi-structured face to face interviews, where company and department head will be consulted regarding the issues. Afterwards questionnaire with the employees of those departments will be conducted for the identification of the problems. In light of the problems warehouse management and transportation department were considered and the literature is developed to highlight the possible solution for those problems so that Heathcote could further improve their operations if they consider the recommendations.

Two prominent problems in the Heathcote whiskey warehouse were lack of technology system that can facilities the company in controlling their caskets and absence of other technological system in correlating data of two warehouses. With regard to logistics, their current transportation was limited to road and they had to look in to methods to reduce spending financially whilst improving the environmental impact for continuous improvement.

It will be recommended that Heathcote whiskey adopt from the solutions such as use Barcode system for holding the details of Casktes, Upgrade their Current Warehouse Management System, so it programming is up to date this will help eliminate transfer problem with Sap leading to smooth and correct data transfer, in the absence of Rail Network availability till 2015 Heathcote should aim to improve their current Roads transportation system with efficient use of available technologies that are presented to them otherwise there operational capability function will continue to suffer which could lead to consequences on the growth plans for the future.

2.0: Dissertation:

2.1-Introduction

The report will analyse Heathcote whiskey, which is major player in the Scottish

whiskey industry. Since their establishment they have grown from a local company

to a worldwide exporter and now planning to expand their business further, but like

every other business there are some issues which can restrict the business to

expand and cause hindrance in their efficiency overall. This main purpose of this

report is to present Heathcote whiskey with consultancy report on the problem

occurring in the company. This will be achieved by conducting imperial research

design for identification of the problems happening at Heathcote through

implementing plan of action. The first section of this report will present the

literature review with in detailed critical discussion on the technological systems

that are available to Heatcote for improving their warehouse department along

with comparison of two most frequent modes of transportations. Next part will

illustrate the problems that come to light after collecting primary data from semi-

structured interviews and questionnaires through the use of research design and

finishing the report with plan of action highlighting how the research will done.

2.2-LITERATURE REVIEW:

2.2.1-Overview of the chapter

This chapter critically reviews relevant logistics literature on the challenges and

solutions relating to warehousing and transportation. The importance of

warehousing is firstly established. The chapter then proposes a solution to the case

study organisation’s problems - Heatcote Whisky. A warehouse management

software system is proposed that will enable the organisation to collaborate and

centralise their information system. Radio Frequency Identification (RFID) and bar

coding are then critically evaluated and the latter is deemed most appropriate to

address the issues of information storage. In relation to transportation, advantages

and disadvantages of the rail and road systems are analysed and technology that

can be used to support a process of continuous improvement is then proposed.

2.2.2-Importance of warehousing

Maheshwari (2004 , p. 123) explains that warehousing involves storing or

accumulation of goods for the purpose of equalising supplies over a period of time.

The development of warehouses came about because the place was required to

store goods in proper conditions and to protect them from damage of sun and rain.

Warehousing availability creates time utility and takes away hindrances of time

while enabling organisations to hold up goods till required. Absence of

warehousing for the organisation could lead to many problems of urgency to make

sales of goods once manufactured.

Faber et al (2002, p. 1) further argues that warehousing has become a critical factor

in organisational supply chain to outperform competitors. Because warehousing

has changed fundamentally from the past, as a result supply chain concepts focus

on warehousing has become an important part in the supply chain. However, to

achieve this competitive advantage organisations are required to integrate

warehousing with a Warehouse management system (WMS) which is a manual and

automated solutions in warehouses and distribution centres.

2.2.3- WMS

Autry (2005 p. 167) further elaborates on the role of WMS by highlighting that they

are often considered to be the core information management systems of the

logistics because although like many IT-related systems such as enterprise resource

management (ERP) and material requirement planning (MRP) warehouse

management system also does not work as an exclusive domain for logistic but

(WMS) function significantly benefits the logistic. Bidgoli, 2010, (p. 169) further

supports the argument that (WMS) provide automated support in processing of

logistical processes.

Autry (2005, p. 167) states that an advantage of a WMS system is that it enables

organisations to plan, optimize, and execute warehouse operations. This is through

supporting basic warehouse activities such as order picking, order packing, and

inventory put-away. In addition, real-time inventory status is typically reported.

Bidgoli (2010, p. 169) further support this reasoning, stating that WMS aim is to

control the movement and storage of materials within the warehouse. By doing this

(WMS) create the necessary conditions to achieve efficiently, the high performance

of warehousing operations required in today's marketplace.

Schmit (1998, p. 1) states that other advantage is that WMS gives efficient work

instructions to all material handling employees in a warehouse by “validating

activities and maintaining inventory balances down to bin location level and

interfaces to host enterprise resource planning or order-management system.” This

allows organisations to measure their warehousing efficiency through examining

the investment to arrive and return on that investment because WMS provide

availability of appropriate data through which the saving and return can be

determined.

Faber (2002, p. 384) argue that WMS development has come from similarity in

information, planning and control requirements amongst so many warehouses. This

is why many standard WMS have come about from a custom-made WMS system

for one specific warehouse to which more and more features and functionality have

been added to meet over time the needs of other warehouses.

2.2.4-Challenges to be kept in mind when developing WMS

Bragg (2011, p. 10) states many problems are required to be kept in focus when

developing WMS or implementing it in warehousing, problems such as alterations

to packaged software and lack of testing. This is because a common cause of failure

in packaged software happens when organisations choose to adopt newly releases

features by updating their current software without internally checking or

consolidating their ability to successfully manage it. The other problem which

requires attention is lack of testing by the organisation, due to their rushing into

adoption of a new system or avoiding undertaking proper testes to verify the

systems progress. There is nothing more dangerous for warehousing organisation

than to install a (WMS) system and then discover it fails, because this can have

serious financial consequences. Therefore efforts should be made by warehousing

management to prepare the organisation for the changes so failure in new system

could be minimised.

IT is advised based on the information that Warehouse Management System is

most appropriate system for meeting the demand of Warehouses needs so any

customised warehouse management system should be contently up dated to meet

the changes requirement of WMS.

2.2.5- Technologies:

In tracking goods there are two prominent technologies are available which are

Barcoding and radio-frequency identification known as RFID; two technologies

generally used for tracking and materials (Sullivan et al., 2010 p. 91). Barcode and

RFID facilitate automatic reading, and operatives can carry hand-held scanners

around the warehouse to speed up the task (Connoly, 2008, p. 108). Barcode and

(RFID) facilitate automatic reading, and operatives can carry hand-held scanners

around the warehouse to speed up the task.

Bourlakis et al, (2011, p. 160) describe barcode as optical machine reader system

that uses different thickness of bars and spaces line on label to abstract the

information. The component of barcode consists of scanning advice, a portable

terminal and a label.

An advantage of Barcode technology is that it has been developed for 40 years. It

has been used successfully by organisations to compete effectively in the market

place, because the use of Barcode has increases productivity for the organisation

while minimizing human error by providing an automated means for data collection

and product tracking (Jangsombatsiri and Porter 2006, p. 133). The uses of Barcode

allows entry of total data to be done accurately, which otherwise if done through

human can be very labour intensive and time consuming exercise while increasing

the risks of mistakes.

Socka (1993, pp. 9) further states the advantages, arguing that effective use of a

bar codes system allows elimination of errors caused by hand writing and keying of

information can be a valuable tool in improving the accuracy of computerized

information in business areas such as inventory tracking, asset identification, forms

management and service order tracking allowing for more effective warehouse

management.

The other advantage of warehouse Barcode function is that it can allow the

following details to be stored such as the product name, expiration date, and

source; the lot number, the date on which that product was received, the date on

which the container was emptied, the container quantity and location code (Vail,

2006 p. 291).

Holmquist (2006, pp. 51) argues that aBarcode system has the disadvantage just

like any other technological systems has drawbacks. Barcode object does not do

anything on its own to function Barcode requires tag reader and a connection to a

database of tags, and some way of displaying the results to get anything useful out

of it.

The other disadvantage of barcode is that it can only read one barcode at a time

while requiring the clear sight of the barcode to read its symbol. To make the

situation further complex the reading distance is short that requires the physical

contact of the scanner to read it (Kato at el, 2010, pp. 6).

An alternative technology to Barcode that is available is called Radio Frequency

Identification (RFID). RFID has been identified as one of the ten greatest

contributory technologies of the twenty-first century (Yahia 2011pp. 251). RFID

function uses many components such as software, chips, tags, readers, antennas

and vertical market applications (Lam and Shankararaman, 2007, pp 314).

RFID tags advantage use a memory storage device to store data and it has the

capacity of two kilobytes of data to hold information such as the product

identification number, price, cost, manufacture date, location, and inventory

available in warehouse store. Due to the availability of this information data can be

quickly read by a wireless scanner (Yahia, 2010 p. 282) .

Another advantage of RFID technology is that it can help a wide range of

organizations and individuals such as hospitals and patients, retailers and

customers, and manufacturers and distributors throughout the supply chain to

realize significant productivity gains and efficiencies (SABBAGHI and

VAIDYANATHAN, 2008, pp. 73).

D'Mello, (2008, pp.1-12) argues that RFID has many disadvantages; many issues

arise when tags and readers are deployed in real world settings. If in RFID reader

collision of signal with other signals such as water sources, presence of metallic

components, cell phones, computer equipment and people all of these situations

can impact on the reading, leading to incorrect data being generated from the

warehouse.

Alan (2005, pp. 16 – 28) states other disadvantage with RFID that is putting

organisations off is the “initial cost of investment and training staff. Although, it has

been projected that there will be a dramatic reduction in the price of the tags over

the next few years, the current cost may be relatively prohibitive for many

organisations to consider”.

Rao (2010 p. 576) states that RFID is not necessarily better than barcode. It seems

more appropriate that organisations consider adopting barcoding technology for

their warehousing needs.

In light of that information it can be said that Barcode system is better of two

discussed for meeting the needs of Whiskey Industry.

2.2.6-Transportation

Transportation plays an important role in the movement of goods from one

destination like a warehouse to the next in the market or alternative avenues.

REGGIANI et al (1997, p. 261) state that although sea accounts for the largest

volume of goods transported by freight facility, this is followed by road and rail

transportation. The transport industry in the economic development of countries

throughout the world plays a vital role. PÉRSIO PENTEADO et al, (2012. pp. 207)

state that the roles of transportation are evident from countries like Brazil because

they provide significant importance to road transportation since it gives them

advantage for the exploitation and exploration of resources and mass production.

The other advantages of road transportation is its ability to provide the customer

with door to door excellent service in terms of reliability, flexibility, speed, lower

probability of damage and finally costs (MCKINNON,2006, p. 230). These qualities

clearly highlight why road transportation is a useful means of transporting their

goods, and the reason for road transportation having such a dominant position.

One of the disadvantages of steady growth in the road transportation sector is that

it increasingly causes problems like air pollution. RAUX, (2010. pp. 133) states that

the transport sector currently accounts for around 25–30% of global CO2 emissions

and this contribution is growing rapidly. Moreover, road transport holds by far the

major part in these emissions

WIEGMANS, (2010, p. 44) states that in Europe expansion in trade has led to

increases in freight volume. As a result, requirements for road and rail

transportation have been on the increase but particularly rail freight transport is on

the rise. This due to the advantage rail freight has with extra capacity to be able to

accommodate more goods than road freight could do.

GARCIA and GUTIERREZ (2003, pp. 32-40) argue that when it comes to the

environment and security rail transport demonstrates clear advantages amongst all

its competitor mode of transportations. This is particularly with regard to road

transportation since it removes the chance of delayed delivery due to congestion

on roads and also reduces the burden of traffic happening on the roads. As a result

of these advantages the European Union has designated rail transport as one of the

key elements in the development of the TransEuropean Transport Network.

LEWIS et al (2001. pp. 23) argue that a prominent disadvantage of the rail system is

that it failed to evolve along with the integrated European economy which is clear

from the example that Swedish firm IKEA moves 60 percent of its products through

road transportation while only 20 percent of its goods by rail. The reason for their

preference to road freight is guarantee of a container load of furniture deliveries in

eight hours, as compared to forty-eight hours by train.

Although the Rail is better transportation for whiskey industry since Rail is fast and

can carry more loads but in the absence of Rail organisation should aim to better

use of their Road transportation through making it more efficient.

2.3.1: Problem Identification

Heathcote facing many problems firstly, Heathcoate whisky views that RFID to be

problematic rather than a solution to the company problem. Because caskets that

are used by Heathcote whisky are basically wet wood, filled with a liquid as any

attachment of RFID with water sources can impact the RFID ability to read the date

leading to generation of incorrect data from their warehouse. Whisky barrels are

stored for the minimum of eight years and Heathcote whisky has 72000 barrels

capacity at their site in which other companies’ barrels are also kept. This make

absolute critical that Heathcote whisky know the correct details for each such as

when the whiskey are placed in the casket, who own the whisky, the characteristic

of the whiskey in store along with the exact details of particular barrel is movement

as needed by custom and excise.

Second problem is Heathcote whisky has warehouse in two locations on the east

and west coast. This is causing problems in warehouse management because in

reconciling of routine data exchange on SAP from other parallel custom-written

data causes problem for them. The result of this parallel system with SAP causes

Heathcote whisky causes 30 days of wastage time each year that it has to spend to

correct errors and interfaces in the data. Although the two problem highlighted

requires their own particular solutions but in some ways these are interconnected

with each other because successful collection of detail from warehouse on the

Whiskey Barrel will lead to correct data been placed in the coordinating with SAP

technology.

Third problem, Heathcote whisky faces is in logistic Strategy because they are

searching for finding new means of making their transportation service more cost

effective for their organisation and environmental friendly. because the nearest

port 23 miles away from them while they bring raw materials from as far afield as

Manchester through the use of road lorries because they rail isn’t open and would

not be least till 2015.

2.3.2- Research methodology

Research methodology is very important aspect of conducting professional

investigation because in the absence of clear understanding of what is to be aimed

and how to achieve them. It is high unlikely that research will be successful due to

improper planning.

a. Interview

Interviews method of collecting data involves presentation of oral verbal stimuli

and reply of oral- verbal responses. This used for personal interviews method since

it requires a person known as there interviewers asking questions generally in face-

to-face contact to other person (Kothari 2004, p. 97).

Gratton and Jones (2010, p. 156) identify many advantages of conducting the

interviews. First, it enable the interviewers by allow participant to talk about their

own experiences in their own words and at the same it enables participant to

elaborate themselves about any issue which they might consider of particular

importance or interest. The other advantage is that interviews it allows interviewer

to assess the participant’s body language, facials expressions, tone of voice so forth

that might be significant uses in certain cases. While, Wood and Ross-kerr (2011, p.

182) argue that another advantage of conducting interviews is that it usually results

in the higher responses rate than does the questionnaire because people who don’t

participate in the questionnaire are willing to talk with an interviewers. However,

Walsh and Wigens (2003, p. 98) argue that are many disadvantages as the

information of the interviews can be difficult for recording. Writing down what

people say can be difficult and intrusive, since it might be hard to keep up and it

also interrupts the flows of an interview if interviewee is writing down. The other

disadvantage is that people usually provide extensive information in the interviews

and sometime most of what is said is not usable. Hucher (2001, p. 76) argue that

other disadvantage of conducting interviews is that interviewers can unconsciously

through non-verbal communication can impact upon the responses. Because there

is a possibility that smiling and nodding influence on what interviewee say or

discloses in the meeting.

Researcher will aim to address the challenges firstly by taking voice recorder to the

meeting, second challenged through keeping the interviewee focus on the subject

and finally researcher will aim to stay natural by avoiding giving any signal that

might influence the interviewee.

There are three types interviews questionnaire consistent unstructured, semi -

structured and structured. Structured interviews are associated with the tenets of a

quantitative and unstructured, semi – structured interview with a qualitative

methodology. In relation to Heathcote Whiskey researcher will make use of semi-

structured interviews since it very useful tool in exploratory research allowing for

clarification of concepts and problems which then could lead to development of

solutions (Bless et al, 2006 p. 119).

Cohen et al (2007 p. 321) there are two types question can be asked closed ended

and open ended questionnaires. Open ended questionnaires allow for the

understanding of the issues when the answers are unknown also is a useful means

for generating issues/ matters that will eventually become the focus for closed

questions in a subsequent questionnaire. This technique will be used by researcher

to develop the initial understanding of problems of Heathcoat whiskey while

conducting the interviews because that will eventually lead to focus generation of

focus questionnaire in second stage.

b. Survey

One of the techniques for gathering primary data is Questionnaire. Interview and

questionnaire are essentially the same except the manner in which the question is

presented since questionnaires are usually in writing while interviews are done

orally (Thomas at el., 2011, p. 273).

Singh (2008, p. 176) argue that are many advantage of doing questionnaires

through survey first, is that it permit wide coverage at a minimum expense in term

of money and effort. Because it allows interviewee cover wider geographical and

questionnaire also enable for greater validity in the results through promoting the

selection of a large and more representative sample. Second advantage is it offers

greater anonymity. The other advantage in questionnaire is it offers greater

anonymity because there is no face-to-face interaction between respondents and

interviews this enables respondent greater anonymity, In some situation where

sensitive question are asked respondent more likely to express accurate

information. While Athanasiou et al (2010, p. 488) argue that advantage survey

questionnaire are generally quicker to administer because mass distribution via

postal technique or internet avenues, this allow for large numbers to be recruited

into studies. Another disadvantage is in the questionnaire the opportunity to clarify

issues is lacking. Because for any reason if respondents do not understand some

question is stated, there is almost no opportunity for him/her to have meaning

clarified. However, Kumar (2011, p. 149) argue there are many disadvantage of

using questionnaire method. Firstly, questionnaires are considered notorious for

attaining low responses from peoples. Because how individual choose to response

will depend on various factors such as interest in the topic of study, the layout of

the structure and length of the questionnaire.

Researcher will strive to address these challenges firstly by his own presence if any

respondent needs any explanation on the matter and secondly researcher will aim

to keep the questionnaire simple in order to ensure that he gets maximum

respondents.

Cohen et al (2007 p. 321) state there are two question can places which are closed

ended and open ended questionnaires. Closed ended questions usually present

range of responses from which the respondents might make the final choice. Such

styles of question are useful means to gather data that is up to the point and allows

for quicker analysis. This approach will be chosen in the survey questionnaire to

exactly determine the issues happening in particular departments of Heathcoat

whiskey so the solution can be recommended to them later point.

c. Research Approach

Pleizier and Pleizier (2010, p. 16) argue that both deductive and Inductive theory

have problems in relation to deductive theory it should be based upon the reality of

data and not to be invented behind the desk while with regard to Inductive theory

it is argued that there are no fact without prior theoretical assumption but the

observations and theoretically laden by suggestion. The approach will be chosen as

it enables the researcher to make analysis of the Problem Heathcote whiskey

current facing from which then to build the Hypothesis what can be the possible

solutions available to deal with the problems.

Lee and Lan (2008, p. 7) state that while Inductive theory is opposite of deductive in

Inductive process of moving specific observation to a more general theory take

place. This allow for general explanation to be attained which account for the data

relevance. Inductive approach will be used in relation to addressing Heathcoat

whiskey problems because it work by making the observation that will be done by

gathering qualitative information from interview, which lead to analysis of situation

been developed which in the Heatcote whiskey case be happenig.

Jankowicz (2005 p. 224) state in post positivist approach it is possible to combine

both Inductive and deductive techniques. This is usually done due to the need of

the design or to allow the result of one method to be cross checked with other. In

order to understand the situation happening in the Heathcoat whiskey researcher

will make use of post positivist approach to aid the analysis process through

obtaining information from observations.

d. Mix Method

Flanagan (2005, p. 46) state that interview and questionnaire can provide

quantitative data or qualitative data or might both of them together. Gramatikov

(2010, p. 48) argue that both quantitative data and qualitative data has pros and

cons. There are advantage of both quantitative data and qualitative data as these

methods are beneficial for the purpose of measuring justice from the views of the

user. In the case of quantitative data disadvantage is reduce the information about

people to over simplify statistic while qualitative data disadvantage is more difficult

to analyse as a result conclusion are difficult to draw. Researcher will use

qualitative technique in interviews to abstract maximum form managers of various

department of Heathcote Whiskey while alternative quantitative approach will used

in the questionnaire to employees to gather only relevant information needed to

build the solutions. For analysing quantitative research involves process of

numerical data through a survey, experiment etc. (Pride et al 2008, p. 565) both

qualitative and quantitative data support each other and for data analysis use of

computer is a common mean to achieve the results. However qualitative data will

analysed as per researcher’s views of the matter.

Questionnaire will aim to address with the aid of likert Scale technique respondent

is asked to specify his /her option on the matter through agreeing or disagreeing on

the factor that they attached importance too. Attitude statement is used for the

exploration of respondent attitude toward wide range and complex issues (Kumar,

2011 page 137). 100 questionnaires will be put to each department of the concerns

which are warehouse and transportation.

e. Sampling

Lodico et al, (2010, p. 134) Purposeful sampling strategy allow for the selection of

information rich cases from which one can learn a great deal about issues of central

importance to the purpose of the research. Convenience Sampling involved getting

participant whenever you can find them and typically wherever is convenient.

Interviews will be conducted with the aid of Purposeful sampling strategy and

Convenience Sampling. This will used for managers of the Heathcote Whiskey as

particular individual collection of data.

f. Validity and Reliability

(Cohen et al 2007 p. 133) highlights that for effective research to be carried out, it is

important that research be carried out hold validity and reliability because invalid

research is worthless piece of information. But for ensuring validity requires both

qualitative and quantitative research. To achieve validity it is important that

research produce the finding for which the research is designed and to achieve

reliability it is necessary individual carryout research receive the consistent

measurement each time (Kumar, 2011 p. 186). In Heathcoate whiskey for ensuring

researcher will carry out both questionnaire and interviews will be conducted

multiple times so that consistency is ensured and to achieve validity and reliability

all the information that will receive will checked against the aim of questions asked

so that research is not collecting invalid data/ information.

g. Time Horizons

Bryman and Bell (2007, p. 55) states that cross – sectional design are interested in

variation at a signal point in time in order to collect a body of quantitative data in

connection with two or more variables. But cross – sectional is not easy to depict in

terms of notation. Cohen et al (2007, p. 217) state that cross – sectional study is

less effective method for those interested in identify individual variations in growth.

But Singh (2007 p. 299) say that cross – sectional study advantage as it enable the

gathering of data quickly. In relation to research cross-sectional techniques will be

used there researcher has very limited time in which to conduct the investigation

and report back the finding as what measures can be taken by Heathcoate Whiskey

to resolve their problem in various departments.

h. Ethics

Research ethics concerns with the responsibility of researcher to be honest and

respectful to all concerns that will effected with conducting of research (Fredericks

et al, 2012 p. 108). During the course of research researcher is accepted to be

governed by a set of ethical guideline that assist them to make a proper decision

and choose proper actions. To address the ethical aspect of the research researcher

will only focus on the relevant issues that are tasked by the Heathcote Whiskey and

will provide the best possible solutions.

2.3.3- Plan of Action

i. First Month

The entire duration of this month will be spend on gathering the information of

Heathcote Whiskey and understanding of how its function and departments gets

information about the company and the collated information will be analysed and

development of interview questionnaire will be finalised for CEO.

ii. Second Month

At the start of the conversation with CEO the structure of work ethic will be evolved

and finalised for the rest of the project duration along with the time frame for the

consultancy will be provided. To understand the situation that persist in the

Heathcote whiskey decision is taken to do purposeful sampling by researcher in his

first interview the Margret who is current CEO of the company as this will allow the

researcher to learn great deal about the issues of importance for the purpose of

further research. This interaction will be constructed in the form of semi-structured

interviews where by both open ended question will be asked. This will enable the

researcher to gather qualitative data from Interviewee. After the initials interview

rest of that month will spend in analysing the primary data information provided as

per views of the researcher and identifying the interest of department where

company is facing the issues. (See Appendix 2 for questionnaire )

iii. Third Month to Fifth Month

Warehouse and Transportation department has come light from previous

conversation with CEO it seem only appropriate to further understanding the issues

and gain deeper understanding and so researcher took the decision to interview is

done using purposeful sampling. Interviews will conducting by semi – structured

approach, while containing using same style open ended questions to warehouse

and transportation department managers of the Heathcote whiskey at various

points during the course of month. This will enable the researcher to gather

qualitative data from Interviewees. After the initials interviews next two months

will spend in analysing the primary data information provided as per views of the

researcher and identifying where these department is facing the issues. (See

Appendix 2 Appendix 2 for questionnaire)

iv. Sixth Month to Tenth Month

Descriptive style questionnaire will put to 100 employees of each warehouse and

transportation departments through using convenience sampling. It involved

getting participant whenever you can find them and typically wherever is

convenient. Likert Scale technique and Attitude statement technique will be used

to generate specific and relevant response from employees. This will enable to get

the quantitative information which will then generate into numerical data to get

qualitative information to confirm the hypothesis developed. After the consultation

on the needs of warehouse and transportation department managers, Employee

will asked since they face the issues first hand can allow accurate understanding to

be achieved. This will allow researcher to achieve consistency as researcher

become able authenticate the information provided earlier by warehouse and

transportation department managers on the issues as result ensuring validity. These

questionnaires will done through making a drop in sessions will last about two

month as a result Information gained will be analysed to achieve reliability

researcher will check information receive provide the consistent measurement.

Next two month will spend to draw final conclusions on possible solution that could

be adopted to address the problems in these departments. (See Appendix 2 for

questionnaire)

v. Eleven Month

Detailed analysis of the entire information gathered from the course of interviews

and questionnaire will done. To make the final judgement of the problems

happening in the Heatcote Whiskey, after which finding will be made into

preparation format that will be present to Heatcote Whiskey management.

vi. Twelfth Month

At the start of last month of contract information on What problems came to light

will be presented to Heatcote Whiskey, in sum to investigation as per the mandate.

Leave the rest of last month aside. So that Heathcote Whiskey had the opportunity

to study the information presented in detail and make any further clarification on

matter they wish further required clarification. Finally, on the finishing of last the

contract with Healthote whiskey will stand terminated. (See Appenix 1 for Grant

Chart).

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Executive Summary

In achieving employability amongst organisations especially when global economies are going through a period of recession in which opportunities are scarce. One aspect that helps differentiate prospective employee from others is his/her soft skills that are complemented with technical skills. The aim of report is to enhance and establish the importance of technical skills and soft skills in the outcome of any situation.

To achieve this objective the initial part of the report has been critical discussed with relevance of examples from throughout the academic year but particularly from simulation game. How the lack or presence of soft and technical skill impacted the game and other general academic outcomes. Similarly later part will present the discussion on personal strength, weakness, challenge and personal goal.

Analysis affirm the importance of both these soft skills and hard skills highlighting importance of having both technical skills and soft skills being present to successful come out of situation. The second part of the reflection allows for the self-analysis which helped to understand the importance of these skills been present in myself and there importance in achieving success in various situations while highlighting the areas amongst my personality that still require the attention.

It is important in all situations that the effective uses of both skills are made because till then it is hard to reach a successful outcome. While measure are taken to overcome the weakness and challenges still present in my personality.

3.1-Introduction

The report will critically analyse significance of technical skills and soft skills from

academic point of view and highlighting how the technical skills support the

effective use in learning experience from throughout the year in the Msc Degree,

particularly in the simulation game While illustrating the importance of soft skills in

achieving the effective outcome to tasks or the failure in the absence of it. Lateral

part of the reflective writing work will be showing the analysis on my journey during

this year with relevance to technical and soft skills. The first section of this report

will present literature review with in detailed critical discussion on the soft skills

along with the use of technical skills which can support in successful outcome to the

task.

3.2-Reflection:

This chapter will discuss the importance of soft skills and hard technical skills in

relation to addressing the operational challenges and how they impact on a supply

chain.

3.2.1-Significance of Hard and soft skills

Babar et al 2009 p. 63) state skills can be broadly categorised into two groups. The

first are technical skills, knowledge about technology issues and soft skills, and

competencies, which are of a more personal and social flavour, such as organising

and handling complexities in project work, enabling people to contribute with their

resources, and customer communication.

Araimi (2011 p. 52) further states that hard skills are those that contain a clear

objective, this could be measured and considered necessary for a job completion

without hard skills an individual cannot perform in the task designated to him/her.

On the other hand, soft skills are concerned with individual personal development

and growth. Soft skills mainly consist of communication, team work, leadership,

creative thinking and interpersonal skills without proper understanding of soft skills

one can’t develop the acumen that could impact on working relationships.

(Eunson, (2007, p. 1) states that technical skills over a period of time may become

irrelevant; however on the contrary, soft skills are still likely to be useful due to

their transferable nature which will likely support the individual in some manner or

another.

Particularly in an organisational context, this transferable nature could help the

individual to progress when the time is correct for such a move. Araimi (2011 p. 52)

states that both hard skills and soft skills are considered essential for the overall

organisational performance.

a. Interpersonal communication

Interpersonal communication is an important part of the overall structure of the

communication. It is applied to the verbal and nonverbal interaction that occurs in

both one-to-one and small group settings. Krizan et al (2011, p. 407) explain that

technology has increased the speed at which work is processed and reduced the

number of face-to-face encounters. Due to these changes, organisations are now

more interested in employees that demonstrate flexibility and adaptability and who

also are capable of solving problems creatively, manage time efficiently, and

perform work well under pressure while learning from constructive feedback.

Failure to demonstrate these soft skills can create the communication barriers. Lack

of interpersonal communication amongst team members in the first simulation

game caused the operational challenge regarding the supply chain. On several

occasions movement of manufacturing parts got disturbed as group members

weren’t engaging in conversation regarding acquiring of their manufacturing parts

with other members, which eventually led to delays in meeting customers’ orders

as material didn’t proceed on time from one area to another. This situation

remained unaddressed despite technical knowledge of members to run the

manufacturing and the demonstration of flexibility by some members in between

games due to decentralised system of the layout.

b. Team Work

In selection of employees by employers one such criterion considered is individual

ability to work in a team. Guffey and Loewy ( 2011, p. 70) state that team workers

has become all the more important because many organisations are forming teams

to achieve better results in fast – paced competitive economies. Team working

typically goes through four stages of development that are forming, storming,

norming and performing. Rao, (2010, p. 84) states that team building consists of

panning, organisation, influencing, staffing, directing and motivating the members

with a common aim of achieving mutual organisational goal and objectives. As part

of the lego case study project presentation, students were tasked to work in

groups, but it created technical operational challenges for achieving successful

outcomes because team working started to break down at the performing stage as

certain individuals didn’t work on agreed tasks that were asked or excepted of

them. Each member was allocated the tasks according to their technical expertise

and interest which made it difficult for other member to compensate through

adding their contribution. This operational challenge was eventually addressed

when remarks made by one group member about the consequences of failure to all

members of the group and lack of time left to accomplish the task influenced group

members who started to work together.

c. Leadership Style

Leadership style can play an important role as it determines how one expresses its

influence on situations been faced with. Priest and Gass (2005, p. 244) state that

leadership styles consists of many types which are telling, selling, testing,

consulting, joining groups, and delegating. These are all those ways through which

leadership may impact upon the situation to achieve the desired outcome.

Leadership can integrate with management to achieve the best possible and

successful outcome. Daft and lane (2008, p. 28) argues that soft skills of leadership

complement technical skills of management and both are required to effectively

and successful guide organisations. Organisations require individuals with both

these skills. Leaders are needed to provide the creative vision for the future,

shaping culture, value inspiring and motivating followers. Management skills are

requiring running the organisation with technical knowledge’s, the manager usually

has already qualities to be an effective leader. However if the manager doesn’t

have leadership qualities then these can be learned and developed because the

manager might not have gone through the process to bring those aspect to life. In

the first simulation game, final assembly management members, despite having all

the information to guide other members, failed to provide the leadership. This led

to supply chain challenges being created because members got confused in what

direction the game was proceeding. As a result some members got disengaged

from the manufacturing process which led to failure in meeting customers’

demands on time. This situation remains unaddressed as the final assembly

members throughout the entire game did not share the technical knowledge on the

specific manufacturing products required with other members about what should

be send to whom and when to make the demanded product on time.

d. Problem Solving

Another soft skills competency is a problem solving approach; the tendency to

gather information from various sources so as to problem solves the task

effectively. Kumar (2008 p. 76) states knowledge of hard skills that are related to

given profession would contribute to effective performance in problem solving.

Tannahill( 2008 p. 24) states that rationale problem solving alone isn’t enough by

itself. It is important that an individual has creative problem solving skills and an

ability to identify opportunities which is crucial in a competitive environment.

Schwable (2011, p. 100) identifies the ways through which problem solving can be

done is by encouraging all participants in problem solving to give their ideas, only

using constructive criticism and focusing on solving problem rather than blaming

other individuals and lastly through striving to build on each other’s ideas. In the

first simulation game, failure on the part of all members involved to engage in the

problem solving exercise created operational challenges because members started

to blame each other for the failure occurring, eventually leading to conflict amongst

members over various aspects. Attempts were made by members during the break

to encourage each other on solving the problem being faced in the game, but their

efforts remained unsuccessful.

e. Time Management

Another competency of soft skills is time management that allows for doing of

multiple tasks within a stipulated time frame. Rao (2010, page 106) states that

effective time management allows people to be punctual because when individuals

are punctual it enables them to utilise their time effectively by executing their tasks

as per their plans, resulting in better time performance. Effective time

management also allows for saving of precious time because people are organised

so they don’t have to waste time on researching irrelevant issues as they would be

efficient in management of time. One way to achieve time management is through

earmarking specific time for each task and striving to execute that within that time

frame chosen. But lack of time management caused the supply chain operational

challenges in the first simulation game because in the conclusion of the game there

were stocks left in the manufacturing floor that could not be made into products

and delivered to customers, since there was no time left to achieve that. This

situation remained unaddressed as members during the game failed to utilise their

time effectively, despite all members having technical ability in their respective

departments to run them efficiently, they still could not manage time appropriately.

3.3: Personal Reflection

3.3.1-Personal Strength

My personal problem solving skills have been constantly improved throughout the

year and now I believe are my sources of strength. On several occasions, this ability

to provide solutions had come to aid me significantly. Particularly, when I was

working on the MFI group report, where all members in my group came from

different nations all over the world and with those group members was a new

experience in which they were quite uncomfortable specially in relation to sharing

their resources with other members of the group. This observation provided great

opportunity to understand members from an academic point of view, since I was

able to understand their mind set. Nonetheless, it also created an academic

challenge to get all group members working together. To explain myself and

ensure they all worked together, I devised a problem solving strategy with use of

my leadership experience. I first gathered information to understand the root

cause of the problem. Afterwards I explained to them the importance of sharing

their research findings especially in the group. When I was doing mentoring them

about sharing information I tried to ensure that my focus was on addressing the

problem rather criticising or blaming them. As a result of this strategy we become

able to function smoothly, which in consequence allowed us to achieve the target

of completing the work on time.

The other skills that got improved is my Communication. Although before

participating in this course my communication skills were good. This MSC course

has helped me significantly to enhance communication skills further. Nowhere, I

got more opportunity to polish and prove my communication skills than in personal

professional development module. This helped me great deal as I got there

numerous opportunities to work in the group working environment. During one

such group working where we got the task to prioritise items that would be

necessary to survive after air crash in the desert in 20 minutes. This was first time

for me to work with large group, there were nine people were in that group. But as

soon as we got gathered in the group I realised it would be virtually impossible to

accomplish the task in given time, while ensuring that all members receive the fair

opportunity to state their opinion in detailed. To address that situation I use my

convincing communication skills power to get all members in the group to listen to

me on how we should proceed with doing the task as a result all members did

follows on my ideas. I achieved this by making the impression of been confident

that I know what I am doing, which I believe led to my positive image in their heads

being developed that eventually created the opportunity for me to achieve the

successful outcome.

Next skills on which I got the opportunity to improve further is time management.

This skills is my I considered always as my strength but I happened to drop my

conscious level on effectively utilising this skills before this year. In many academic

tasks during this year time management skills significance helped me and as result

it’s importance became more clearly and evident to me. Particularly in one module

while doing group assessment I over looked the importance of doing thing on times

management. I let Global supply chain work to remain unattended till the last

possible movement because I was focusing on different tasks of other module.

This lack of commitment in managing time effectively nearly come to hunt me

because as time approaches near for the submission date for that work. The

gravity of the situation hit me and quickly I started to make plan to address that

situation. Firstly I engaged all members in my group to meet, although they were

still in unwilling mood and wanted keep the work in the back burner till they are

free from fulfilling their other commitments to work. My effective decision then on

calling group meeting made possible for the assessment to be done on time.

Because we literally made the online submission of the work just two minutes

before the deadline had I not made the decision to call the meeting and got all

member working outcome could easily had been different for us.

3.3.2-Personal weakness

My angry temperament has been one of my biggest weaknesses on many occasions

it created hurdle for me to achieving desire outcome. Although on surface my

personality is of serine and came person. The cause for this angry temperament is

driven from my emotional attachment to personality on issues/ things that I hold

close to my heart or has views on it. In past If I perceive that someone doing or

saying anything that is any way going against my cores views on the matter. I

would be quickly would go down the road which results in departing away from

that individual or alternatively fight them. During one accident in group work of

Personal professional development I came across an individual who was criticising

the other person who I have great respect for in the class and this situation made

me angry. However rather than leaving that individual to himself I stayed there

and listen to him. This has happened because personal professional development

module has allowed me to view events from a different perspective or point of

view. If that had that not been the case I believe my reaction would had being

same as in the past. Despite showing control in my temperament with that stand

alone incident I won’t state that I have developed patience in me, but rather I

would state it was very good beginning for me with regards to starting to listen to

other people views even when I disagree with them. I still have long journey to

make in this regard where I could confidently state I am a patience person.

The other weakness that I have is my highly competitive nature. Nothing less than

winning in the end satisfy me as a result I hated losing come what may. Due to this

nature I had always to try to lead from the front in all situations. In simulation first

game, I learned of how wrong this attitude of mine was and what effect it could

create on the team working because there too I tried to lead the group members

with one aim in mind to winning the game. But I was failed to realise that it was a

group work effort and no one person could call the shoot on how thing should be

done rather all members were required to work in collaboration with each other.

Couple weeks down into the game progress is when I realised that what I am doing

is wrong and only hurting the progress of other members. So I took a step back

from been a leader to one that try to listen and do task with other members. I still

require working on my competitive nature and understanding that wining in life

isn’t everything. The other significant lesson which I learned from this entire

experience is that it important to understand when to be competitive and when is

best to be part of the group.

My next weakness is that I have very judgemental personality. As a result this has

become my nature that I do not accept new views into my philosophy that is stated

by others, till I am fully made convinced with logical reasoning that I am wrong on

my views on the matter. This judgemental personality resulted in me looks things

form the perception/ prospective that what my views are always correct and other

incorrect. This rigidity in views has caused problems for me time and time again.

But I learned now that how wrong that I was hold such judgemental personality

from my experience. Because I advise my friend in this module on how thing

should proceed despite that individual in conversation repeatedly point out to me

that my approach is wrong, but I persisted on my views on continued and

eventually after extensive in that direction I discovered from the effect back. How

incorrect I was in my perception. The lesson that I adopted from this experience is

that I require listen to others and think over what that other person is saying to me

before rejecting their views as of no use to me. I still haven’t overcome this

problem with myself but I hope over time and through more experience in life I will

learn to discipline myself in that regard.

3.3.3-Personal Challenges

One very serious challenge still need to be dealt with is that certain situation I get

panic. Many situations which could be dealt different get handled wrongly because

of me getting panic. I realise of this problem with me during structuring this

dissertation. In one occasion I informed by supervisor that my literature review is

heading in wrong direction, I quickly got nervous. This feedback led to my entire

day becoming unproductive since I did not work on that day after my meeting. I

plan to reflect on the causes that led me to become panic after completing this

study and if necessary to seek professional opinion how it can be controlled.

3.3.4-Personal Goal long term

My aim in life is to full fill my parent aspiration from me by achieving my dream that

I always discussed with them. It is to start my own business at completion of my

master degree. I believe this degree will significantly contribute to me in achieving

my mentioned dream. I plan to start my own business of import and export where

my component of my supply chain and logistics management degree will benefit

me to do trade globally. Particularly module like managing financial information

will significantly assist me because knowing of how check and eventually control

the financial information is essential skills need to be known in business.

References:

Araimi, A. F. 2011, Power of human resources, Thinkstock, Bloomington. Pg. 52

Babar, A, M. Torgeir, D. Lago, P. Vliet, H. 2009, Software Architecture Knowledge Management: Theory and Practice, Springer-Verlag Heidelberg, London, pg 63

Draft,L, R., Lane, G. P., 2008, The leadership experience, 4th edn, Thomas South-Western, Mason, pg. 28

Eurson, B. 2007, Business Writing, John Wiley & Sons, Milton, pg. 2.

Krizan, C. A., Merrier, P., Logan, P, J. 2011, Business Communication, 8th edn, South-western Cengage Learning, Mason, pg. 407.

Kumar, A. S. 2008, Small Business and Entrepreneurship, I.K International Publishing House Pvt. Ltd, New Delhi, pg. 76.

Priest, S., Gass, A. M. 2005, Effective Leadership in Adventure programming, 2nd edn, Human Kinetics, Bradford, pg. 244

Roa, S. M. 2010, Soft Skills Enhancing Employability: Connecting Campus with Corporate, I.K. International Publishing House Pvt Ltd, Delhi, pg. 84

Roa, S. M. 2010, Soft Skills Enhancing Employability: Connecting Campus with Corporate, I.K. International Publishing House Pvt Ltd, Delhi, pg. 107.

Schwalbe, K.2011, Information Technology Project Management, 6th edn, Course technology Cengage Learning, Boston, pg. 100.

Tannanhill, K. G. 2008, A study of soft skills for IT Workers in Recruitment Advertising, UMI, East Eisenhower Parkway, pg. 24.

Appendix 1

Appendix 2

Interviews Questions

CEO

How significant does the family ethos impact the organisation?

What are the issue that your organisation is experiencing?

How significant is an expansion plan to the overall strategic direction?

How concern is this organisation about environmental impact?

Does the organisation has available the mean to successfully implement their expansion plans?

Transportation Warehouse managers

What are the modes of transportation available to company?

Does the company use its own logistic mean for transportation or third party logistic?

When times of the year’s demand of goods are high?

How the warehousing impact upon logistic planning strategy?

Do you use any technology for meeting your transportation for making transport more efficient?

Interview Questions for Warehouse Manager

How many warehouse of Heathcote you manage?

Are you satisfied with current casket data gathering system?

Are there any problems while uniting data from two warehouses?

To accommodate Heathcote further expansion plan throughout the world do you warehouse have a strategy to expand their warehousing capacity?

Survey

Warehouse employees

Are there are any issues in the warehouse?

o Yes

o No

o Don’t Know

Are you satisfied with complexity for gathering data information manually?

o Yes

o No

Do you use technologies for the movement of goods in the warehouse?

o Yes

o No

Do you have the training for using those technologies?

o Yes

o No

Are you satisfied with current systems?

o Yes

o No

Transportation Labour

Do you travel at particular hours only for taking or delivering goods?

o Yes

o No

Do you use manual mechanism for gathering detail of goods being delivered or received?

o Yes

o No

Do you use technologies for gathering detail of goods being delivered or received?

o Yes

o No

Do you use any technologies for guiding you to destinations?

o Yes

o No

Appendix 3 Old plant layout

Appendix 4 Proposed Plant layout