Operations issues and improvements

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Reference no: EM13871680 , Length:

A high quality Term Paper emphasizes modeling and solving the three operations management problems of your choice.

However, a fair amount of description is necessary to set up each analysis.

ABC's Operations Issues and Improvements

Term Paper

After a very successful career managing hedge funds, you have decided to purchase and operate a manufacturing business. As a result you have located a business in southwest Florida that is for sale.

ABC manufactures, installs, maintains and repairs solar heating systems for swimming pools and domestic hot water. It sells directly to the consumer and therefore is considered a turnkey firm. There are neither distributors nor dealers. Furthermore, all major components are manufactured by ABC using patents they hold.

Your accountant has completed a thorough financial study of ABC and concludes that the asking price is actually up to 20% lower than fair market value depending upon the valuation method used. Also, you know that the owner has some health issues and is looking for a fast sale.

Your assessment of the business indicates that the current return on investment (ROI) after taxes is 30% based on the asking price. Also, you conservatively forecast that in an expanding market your net ROI would be about 40%. You are further comforted by the willingness of the current owner to serve as a contract employee for one year after you purchase the business. If need be you are in a position to pay cash for the business.

You have become familiar with ABC's operations and like what you see except for three operational issues that need improvement. Identify three such issues of your choice. Fully describe each issue and select at least three quantitative operations modeling techniques from your textbook to resolve the issues. Show all calculations in the appendices.

Once you have developed the solutions, develop an implementation plan to rectify the problems. Feel free to make reasonable assumptions. However, you must state and defend them.

Aim to produce a 3,000-4000 word Term Paper exclusive of references but including pertinent appendices. Use APA style.

It is necessary that you begin by researching the solar industry from the perspective of residential applications. This should enable you to select systems to offer homeowners and generate a production process concept after components are identified. Try to keep your two basic product models simple. Also, keep in mind that some customers purchase solar systems for both pool water and domestic hot water heating. So in actuality ABC offers three systems.

A high quality Term Paper emphasizes modeling and solving the three operations management problems of your choice. However, a fair amount of description is necessary to set up each analysis.

The paper consists of two parts, a plan for identifying and analyzing three proposed OM improvements (Formulation Plan) and another plan for putting that plan into action (Implementation Plan).

Note: Executive Summary - It's simply a very brief summary (1-2pp.) of your paper. Managers who do not have time or want to read your entire paper rely on the Executive Summary to inform them about the purpose, nature and scope of your work. Here you need to give a little background, describe the three updates and indicate the anticipated financial payoffs for each and for ABC overall. It should end with a brief description of your implementation plan. Write your Executive Summary last after the rest of your paper has been completed.

Each part requires that you ask yourself a series of questions such as those that follow:


1. What is and is not the assignment in my view? This discussion creates the boundaries for my term paper.

2. Why are the three OM areas I have selected in need of improvement?

3. Why do I believe that the changes I propose will result in significant improvements to ABC?

4. What are the anticipated side effects of making the changes I believe need to be made?

5. How do I plan to mitigate these side effects?

6. What are the anticipated payoffs from my three proposed upgrades, not only economically, but on any other facet of the organization? e.g. management, customers, suppliers, human resources, space requirements, etc.

Note Proposed Improvements - Here you fully describe each proposed upgrade and demonstrate OM concepts, principles, tools and techniques which are appropriate for the areas you have chosen to improve. You must have a minimum of one for each proposed upgrade. The more you use that are pertinent the more convincing and valuable your paper becomes. Include an analysis of the weaknesses of your proposed upgrades and how you plan to eliminate or at least mitigate them.

Financials - Payoffs for the proposed upgrades should be expressed in financial terms. Include the expected costs, financial benefits and net gain for each. Also, develop before and after income statements complete with notes for each line item. This will show the financial impact of the proposed upgrades on ABC overall. Consult an elementary accounting textbook, if necessary, to learn how to develop an income statement.


1. I now have formulation plans for three proposed worthwhile upgrades. So how do I go about implementing each one?

2. Should I develop one master implementation plan or three individual ones? If three individual implementation plans, should they be linked and if so how? If not, why?

3. Do any of these implementation plans have common implementation components and, if so, what are the implications of these common components? Is it possible to piggyback on them and get synergistic payoffs by doing so?

4. What are the required tasks and timelines for implementing each proposed upgrade?

5. Should these timelines be linked in series, parallel or staggered? Why/why not?

6. Where are the resources necessary to make the desired changes coming from and are they sufficient? If not, where can I obtain the additional resources required?

Note: Implementation - Each proposed upgrade should have an implementation plan. These individual plans should then be integrated into an overall implementation plan. You have many choices. Implement the proposed upgrades serially, in parallel, overlapping, with gaps or using different combinations of sequencing. The implementation plans must go beyond suggestions. The ideas must be rigorously defended through analysis based on course materials.

Remember that you must use OM concepts, principles, tools and techniques to support your contentions.

Appendices - Each appendix should contain data, tables, figures, graphics, etc. However, the discussion of it belongs in the body of the paper.

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