Operations Management What Are the Advantages of Essay

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Operations Management

What are the advantages of using a computer-aided design technology

Computer aided design technology is particular useful in a globalized world of commerce and business activity. Through the use of computer aided design technology information can seamlessly be transferred from one entity to another with little administrative cost to the business. This is particularly helpful for businesses that rely on human capital rather than physical infrastructure to create a product. Through computer aided design, concepts can be manipulated, transferred and discusses via the internet or other channels of communication. Through this mutual exchange of information, more individuals can have input within the overall design phase. Those with a particular specialty can provide feedback to the overall design as well (Askin, 1993).

Cross functional teams are advantaged through the use of CAD. Designers may not have the financial acumen needed to create a product at a price point consumers are willing to pay. Through CAD, teams including finance, accounting, and engineering can all have input within the overall design process. These cross functional teams, each with their own unique perspective and expertise can then create products that satisfy key company metrics. This metrics often include materials cost, profit margins, overhead expense, inventory turnover, and much more. Through the use of CAD on cross functional teams, better more efficient products are ultimately created.

2) Describe the major elements of FMS and evaluate the concept

The FMS has a litany of major elements that provide for efficient and automated operations of facilities. The first major elements of a FMS are computer numerically controlled machines. These automated machines allow for efficient task that humans may not be able to carry out. In addition, these machines also help streamline processes, ultimately helping to improve company profitability.

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In addition to the CNS, the FMS also incorporates machines that can automatically sense when a particular part has depreciated substantially and is no longer able to perform the needed task. An example, is that of a drill bit, which, when thoroughly worn, can no longer be used to help manufacture items. This concept of machine controlled aspect is very beneficial from a company perspective. Unlike their human counterparts, machines do not get sick. Nor do they have families or other obligations that can hinder productivity. As such, operations are more efficient, with fewer errors, and more products being created (R. B. 2007).

3) Discuss how CIM could provide strategic advantage

Computer Integrated Manufacture is particularly useful for organizations with high fixed cost structure within the business. Industries that rely extensively on fixed costs need to produce large amounts of volume to ultimately lower the cost per unit. Property, plant and equipment are fixed cost to corporations. These costs are incurred irrespective of production. A machine that costs $100 and produces 2 items, will incur nearly the same expense as if it produces 200 items. As such, CIM allows for companies to integrate their fixed cost structure to run the business in the most efficient manner. Through integrating assembly, manufacturing, design, testing, and fabrication, companies can better pinpoint areas of opportunity within their firms. They can also can reduce cost as the entire system is connected rather than having disparate parts and operations (D.C. 2012)

Strategically, through integration, a firm can alter operations as business needs dictate. For instance, if customers are demanding higher quality specifications for a product, the design component of the CIM can create these products, which will be manufactured and distributed using….....

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