OPS FPX 5620 Assessment 1 Analyzing Global Supply Chain Infrastructure and Operations 

OPS FPX 5620 Assessment 1 Analyzing Global Supply Chain Infrastructure and Operations 

Name

Capella university

OPS-FPX5620 Supply Chain Foundations and Management

Prof. Name

Date

Executive Summary

This report was developed for Thomson Tools after its acquisition of Mainland Tools, a small tool company based in China. The report aims to evaluate Mainland’s processes and infrastructure, as it will now be integrated into Thomson’s supply chain. Mainland Tools operates from an older building, which was constructed in phases as the business expanded. In addition to providing products, the company offers technical support to its North American customers. Effective supply chain management depends on well-maintained internal operations, which are managed by an Operations Manager (Venkataraman & Pinto, 2018).

Proper management of internal operations adds value to services and products, reducing costs for customers, improving product quality, and enhancing services (Venkataraman & Pinto, 2018). Consequently, operations management within a supply chain requires careful planning and collaboration between internal business owners and external supply chain partners (Venkataraman & Pinto, 2018). Thus, operations management is critical to the success of a business and impacts daily operations (Venkataraman & Pinto, 2018).

Thomson’s Operations Manager will conduct an evaluation of Mainland’s current operational state and supply chain infrastructure. This analysis is essential to seamlessly integrating Mainland Tools into Thomson’s global market. The Operations Manager has been tasked with identifying issues and proposing improvements. The analysis will take a systems-thinking approach, focusing on technology, facilities, and inventory control.

Brief Partner Company Description

Mainland Tools is a China-based company that generates approximately $6 million in annual revenue. During the analysis of its operations and infrastructure, several issues were identified that hinder efficiency. These problems include unnecessary inventory and the loss of prepared orders, which account for 15% of total orders and cost the company approximately $900,000 per year. The losses are primarily due to the outdated order-processing system. As the company expanded, its structure and department layout were poorly planned, leading to the rental of an offsite warehouse located five miles from the main building to store excess inventory. These inefficiencies affect Mainland’s ability to deliver products promptly, which could negatively impact Thomson’s reputation for supply chain efficiency. These issues will be explored further in the company analysis section.

Company Analysis

Systems thinking is a structured approach to understanding complex behaviors and diagnosing systemic issues that may cause unintended consequences (Ballé, 2018). In a supply chain, internal or external events can significantly impact operations, either directly or indirectly (“Supply…”, 2016). This analysis employs systems thinking to examine the interactions and relationships within Mainland Tools’ operations (“Supply…”, 2016).

Lean manufacturing and agile manufacturing are two strategies that can help eliminate waste or enable quick adaptation to change (Venkataraman & Pinto, 2018). Lean manufacturing, also known as lean production, focuses on eliminating non-value-adding processes or activities (Venkataraman & Pinto, 2018). On the other hand, agile manufacturing enables faster responses to external changes using specialized tools and processes (Venkataraman & Pinto, 2018). While agile manufacturing could be beneficial for Mainland Tools, the immediate focus should be on implementing lean manufacturing. This strategy will help identify areas for improvement, ultimately increasing the company’s value and profitability (Mirdad & Eseonu, 2014). Lean production and systems thinking complement each other, making them effective in improving operations (Ballé, 2018).

OPS FPX 5620 Assessment 1 Analyzing Global Supply Chain Infrastructure and Operations