To bring out the operational excellence, the company that I work for, namely, Color Jewels, has adapted Lean Operations realizing how much it is beneficial for company in terms of generating revenue and maximizing the profit. The basic principle of lean operation is to reduce weight by keeping demand and supply in balance. Lean operations believe in the following principles:
- Optimizing the entire process
- Eliminating the waste
- Increase in quality
- Delivering quick
Being a diamonds company, it is very important for Color Jewels to optimize the level of inventory. That is because the price of the diamonds is very expensive and it is going to take astronomical amount of capital for the company in order to maintain inventory where the supply is greater than the demand. It has optimized the entire process where it has cut the redundant process In order to bring efficiency in the regular process. Likewise, it has eliminated the waste by keeping demand and supply in Balance so that no inventory is going to be wasted. The company also performs business overseas, hence it is very important that it should increase the delivery time.
For example, recently the company realized that a type of diamond, namely, VS1 diamond, has seen the decline in its demand due to its increasing price. The company has decided to halt its order and storage because it would be a waste in the future if it does not do so. This is one example based on the principle of the Lean Operations.
Operation excellence is an ultimate theoretical concept to improve business strategies in various ways not limited to we can choose various practical application to solve many business problems such as first we have to find out the problem what we are facing in current scenario then we have to find out solution various ways such as find out real problem what we are facing now then we are narrow down to what is the real problem we are having facing current day to day activity. Then we may find out the problem related with our marketing strategy or production process or RMA procedure along with we are moving forward to further like innovative research to improve our business so that we can look forward to achieve the future goal we are not looking backward always. Meanwhile we are improving the production strategies based on the various innovative approaches. Also preparing various notes related with the current strategy that note we will review and given to each managers to improve the business model . Then next is deal with the supply chain management program so that we can able to reduce the expenses of transportation cost which will help as to improve the business. Also giving very important to inventory management which will be the back bone of any company so that each day to day activity will become more stronger and more confident about the stock and sales rather than just a blank report about the information about the stock. Also describing about the plan and procedure for improving the business for both short term and long term goals. Also information about lean process , what are the process we can able to put into lean process and what are process we can put into lean process. Next is deal with the improvement mechanism of the current day to day operation on each and every department. Then defining the quality management which is defining the quality process each and every department so we call it as total quality management is one of them. Finally defining management risk and recovery process it helps the management to make decision based on the strategies.
Gaither, N., & Frazier, G. (2002). Operations management. Australia: South-Western/Thomson Learning.
Slack, N., Brandon-Jones, A., & Johnston, R. (2016). Operations management.