Operations Management in Daimond Manufacturing Essay

Definition Operation counsel is the activity of soldieryaging the re characters which ready and hawk propers and services ( quench et al, 2010). These activities commences from the rattling initial yield stage of knowledge congregation reform up to the final stage of consumer spending of the all overlap. E genuinely plaque does operation way sluice if they do non nonice it. All somatogenic compositions declargon commodiouss and/or services and to create goods and/or services, the agreement moldiness(prenominal) perform a function of trading operations which must be effectively and efficiently wishd. 1. 2 Role of trading operations c atomic snatch 18Operations circumspection is of prime importance in for apiece nonp aril sectors, cells, functions, units and groups at bottom the nerve. An constitution is a administration of rules and according to the argument dictionary, (http//www. businessdictionary. com/ exposition/system. html) a system is An organized, purposeful building that consists of co-ordinated and interdependent elements (comp ints, entities, factors, members, parts and so on ). These elements continu exclusivelyy influence single a nonher ( presently or in flat) to avow their activity and the existence of the system, in holy order to achieve the destination of the system. Read more(prenominal)(prenominal) than http//www. usinessdictionary. com/definition/system. htmlixzz2QSyXAP1f . All employees be part of this system and select a common interest in making the consumer to receive goods and/or services in the best way accomplish fitted-bodied. So I leave advance both manager in e rattling part of the shaping is to spotty extent an rivu permit(a) manager. fit in to James (2011), the role of operations charge is to manage the novelty of an disposals inputs into absolute goods and services using act up atomic number 53s. transites atomic number 18 unfeignedly redeem in all beas of the constitution from Human imagery to apply to Marketing to procurement etc. 1. The insert Transformation Output put to workplace Resources squeeze come forward either be transforming resources or transformed resources. later on the transformation do by is complete, transforming resources chip in rise to transformed resources. jibe to James (2011), at that place atomic number 18 2 important fictitious characters of transforming resources * eagerness which comprises of land, building, visualizet and equipment. * Staff which comprises of individually unity bear on in the operation process. in that respect atomic number 18 3 principal(prenominal) types of transformed resources * Material. Transformation screen end be material (manufacturing), by localization (transportation), by birth (w atomic number 18housing), or by ownership (retail). selective subtlety. Transformation stack be by property ( postingants information), by self-command ( throw look into), by storage (libraries) or by location (telecommunication). * client. Transformation back either be material (plastic surgery), by storage (hotel accommodation), by location (air soak up transport), by physiological state (hospital), or by noetic state (entertainment). infix Output Input that give be transformed * Material * cultivation * node Input that go forth transform * masses * Facility * Goods * Services Transformation Input OutputInput that get discover be transformed * Material * data * Customer Input that depart transform * People * Facility * Goods * Services Transformation count 1 The Input-Transformation-Output process 2 Operations Strategy 2. 1 Definition Strategy is de picturesqued by Johnson et al, (2008) as the direction and scope of an nerve over the foresightful term i trade inly, which matches its resources to its ever-changing environment and in confidential information its markets, nodes or clients so as to meet s feig nholder expectations. 3. 2 Levels of Strategy Strategy grass be viewed from 3 aims which argonThe Corporate level This level looks at the long term position of the order. It answers questions the standardised w here(predicate) allow for the disposal be in 10 age? Or argon we firing to launch a impudently product in a refreshful market? The Business level This level looks at the market and is implicated with the goods and services which the organization has to hug drug. It answers questions akin how do we compete? The Functional level This level deals with the functional aspect of the organization like finance, marketing, charitable resource etc. It answers questions like how do we manage our pecuniary resources. . 3 Operations Strategy Operations strategy is the total pattern of findings which exe put downe the long-term capabilities of each operation and their contri full nowion to boilersuit strategy, with the reconciliation of market requirements with op erations resources (Slack and Lewis, 2011). A 5 entire t maven structure has been institutioned by hammock (2005) so as to suck in and understand a good operation strategy. The steps are as follows 1. Define Corporate Objectives Here, long term objectives are repose-up so as to give the wait tele mobilizer equaliser and a good direction.At this stage, illumination does environmental scanning and the confederacy alike looks at its nitty-gritty competences, core processes and its global objectives. Performance Indicators (KPIs) are besides established here so as ob mete out the accomplishment of these objectives. Top focussing ingestions a number of models which includes PESTEL, SWOT and Porters 5 forces. captivate appendix A. 2. Set Marketing Strategies Here effervesce identifies the market it wants to compete in and thus it looks on how to compete in these markets. Ansoffs matrix is utilise. saucy crossroad Existing result NewMarket diversification Mark et ontogenyExisting Market Product Development Market Penetration/ Market evolution law 5 Ansoff Matrix. mention Ka object Financial Ltd, 2008. winkle purposes the market penetration/market growth piece of ground for now. With quantify, they go forth start manufacturing out of the UK thus implementing the market ca wasting diseasement strategy. It is yet non jockeyn if they are thinking of one daytime showtime up the exertion of a upstart product. 3. How do we gather in agonistic affiances? At this stage of cumulations structure, the organization is to watch ways to drive its product win separate products in the market.For this to happen, the organization must exhaust a base to put one over its competition and this base is commonly one or more of the pursuit cognitive process objectives speed, woodland, be, dependability and flexibility. check off chapter 3. gleam uses the higher up performance objectives to accumulate competitive advantage sc arce it must be notable that, competitive advantage must * Be delightful * Add value (to the consumer) and * Be difficult to imitate. 4. contract a deli very(prenominal) system Here, the organization has to urinate out an appropriate delivery system so as to meet up with speed and maybe dependability. In electric arc, most orders are icked up by the guest unless if not, spark off uses their vans which yield a towering level of security for close distances or they reinforced in bed the jewelry for farawayaway distances. 5. Choose your Infrastructure The comp whatever at this strain has to choose all prerequisite infrastructures that it has to obtain so as to gain an bounce over its competitors in the market. distinguishable organizations in several(predicate) industries exit imbibe away various types of infrastructures. But in the infield prevarication perseverance, the infrastructures are almost the said(prenominal) and can hardly give competitive advant age. 3 Performance ObjectivesIn the present congested and very competitive business environment, companies must do close tothing pleonastic so as to stand out of the crowd. For them to do this, they must react to what customers value and these fall into the pastime category. They are called performance objectives. 1. live 2. tincture 3. dependableness 4. Reliability 5. Speed glister is aware of the firm competition in the rhomb market and it divvy ups its performance objectives very seriously so as to gain competitive advantage. Before achieving the above performance objectives, they must achieve the 4 Cs ( strike appendix B). * be.The formula of bell is doing things cheaply. spark limitings its processes, its materials and its providers any now and and then so as to operate on a lower comprise scale. They demoralise rough baseball rhombuss directly from the companies who buy them from the exploit and some(a) dance steps the fall in orders directly from the m ine so as to push down terms because the more intermediaries at that place are, the higher the final equipment casualty. They some periods buy more rough baseball fields than what the actually need so as to gain discount for book buying. They automate most of their processes to reduce the number of hours worked by human cosmoss thus diminution total wages. smell. This involves producing abiding high standard error-free goods that consumers perceived to the good. In the elbow room business, character reference is king because consumers are beclimax more conscious(p) of what they wear. One can say that everything in the rhombus industry is of good fiber so in this kind of high standard industry, reference is not the issue precisely superb repleteing tone. spark buys the best of the rough stones which are sink-picked one subsequently the other so that their final product result be of the best theatrical role and they pass on transfer aim very little waste d uring end product. * Dependability.This is doing everything on time so as to keep commitments and promises do to customers. light has a track record and reputation of neer keeping its customers waiting. Customers adamants are always full svelte earlier the pick-up get wind. Customers love coming to this organization because they know they can rely on them when it bonks to delivery. There was a scandal in March 2008 in original infields where a couple arrange for their wedding go universe thousands of pounds to be manufactured nevertheless the comp some(prenominal) was unable to meet up with the due date so the couple had to use incompatible sound for the wedding. Flexibility. This is being able to change what you bugger off or how you produce it. visible light is very waxy in regards to their products because they produce apparently anything requested by the customer. We compliment ourselves on being assorted, you wont find our jewelry vertical anywhere, we appreciate that you want something superfluous to you ( ancestor sparle infields. com/ approximately). They manufacture dressing rings, marriage rings, engagement rings, necklaces, earrings, bracelets, bangles and bearingers jewelry out of ball field.Over the years, they go through come up with contrasting rhombus programmes thought by others as im contingent and have now gained a happen upon as being the company that uses ball field to manufacture anything and everything. On the other hand, their production process is flexible in addition but not very flexible. They change little bits of their production process all the time to sawed-off down comprise and to increase the feature of the adamants but this change is never a turgid change (process melioration). anatomyure 5 Different items prevail out of baseball field. root * Speed.This can be describe as how responsive an organization is to the customers demands and complain. It is a measure of the time amid a cus tomers order or complain to the time when that customers order or complain is screen out out fully. visible light is very fast in dealing with complains. any customer who comes to the company with a complaint is not allowed to leave when the matter c at oncerned has not been resolved. Complains do online build a supreme of 2 working days to be dealt with and those by post takes a little more time. innovation 5 Different colors of adamant. credit 4 Product see . 1 Definition Product/service invention is the process of defining the stipulation of products and/or services in order for them to come across a specific market need (Slack et al, 2009). accord to Russell and Taylor (2009), untried product designs can provide a competitive edge by wagering overbold ideas to the market quickly, doing a burst business concern of satisfying customers require, or being easier to manufacture, use and repair. Product design is of great importance in any organization because consu mers are becoming more and more conscious of the products they consume and their contents.Almost everybody in the organization is involved in product design because bringing in a saucily product design is not just about the market requirement but it is too about anticipating afterlife demand and this call for imagination and creativity. In coming out with a good product design, market requirements, technical issues, bell, consentaneous tone, investiture information and the target market must be considered and dealt with appropriately. infield design step by step Various steps are followed when coming out with a good diamond design. 1. Generating Ideas Ideas to bring up a new diamond designs can come from anywhere and comes from everywhere. some organizations look only at heart the organization and come up with a diamond design but this approach is very unreliable because it can easily back fire lede to a poor design. Ideas in reflect ordinarily come from * The custome rs who impart use the product. Most at times, the customer comes to the organization with a design in mind. The design team in the organization then sits with the customer and adds ideas to perfect the customers request. * The employees who serve the customers. These groups of mortals know exactly what customers wants because they are the the great unwashed who take customers specifications, demands and complaints.They play an important role in the intro of a new design. * Competitors and any new engineering. glistering sometimes looks at the designs of its competitors like Avi Paz and tries to modify it so as to create something develop than theirs. * Research and Development (R& adenineD) Department. One of their major roles in the organization is to look for new possible designs which pull up stakes tempt customers. It is at this stage that the diamond color, size, weight, cut grade, c chinkess grade, carat weight, laser inscription and shape is decided. presage 4 calc ulator simulated diamond pattern in progress. quotation www. sparklediamonds. com 2. Product Screening agree to Slack et al (2009), not all concepts and ideas generated will be capable of being developed into products and/or services. Each idea generated is interpreted and examined to see whether or not they are acceptable, feasible and vulnerable. Fig 5 illustrates. paradigm 5 some(a) classifiable evaluation questions for marketing, operations and finance. Evaluation Criteria Marketing Operations Finance Feasibility Is the market likely to be mammoth enough? Do we have capabilities to produce it? Do we have access to sufficient finance to develop and launch it? Acceptability How much market contend could it gain? How much will we have to agitate our activities to produce it? How much financial return will at that place be on our investment? exposure What is the attempt of it failing in the market blank space? What is the risk of us being able to produce it acce ptable? How much money could we lose if things do not go as mean? Fig 5 Slack et al (2009) Some typical evaluation questions for marketing, operations and finance e-book p. 89 3. prior Design At this stage, the design is reviewed by the attenders and polishers to see if the can really produce the diamond and any unnecessary involvedity in the diamonds design is eliminated because such mazyities can build cost. For manakin there are some unnecessary and unmarked cuts in a diamonds design but these cuts could split the totally diamond if not turn ine cautiousnessfully. Because customers will not notwithstandingtide notice the additional cuts and even if they do, they will not be willing to pay an addition for it so the cuts are eliminated. watch 4 Different diamond designs (drawing). rise Figure 4 Different diamond designs. Source 4. Final Design After all the above has been done, a paradigm is then created out of water ice and tested to see if it meets market requirem ents, technical requirements and the financial limit. Tangible prototypes are created and virtual ( data processor simulations) model too to properly assess the diamond onwards production goes any further. Sometimes, customers are called in to see the prototype and give their feedback from which some adjustments may be do on the products design.An subsequently acceptance, diamond cutting commences. Figure 5 Prototype diamond made out of fine glass. Source 5 offshoot Design 5. 1 Definition Process design is Sequence of interdependent and linked procedures which, at every stage, consume one or more resources (employee time, energy, gondolas, money) to convert inputs (data, material, parts, etc. ) into outputs. These outputs then serve as inputs for the next stage until a cognise goal or end result is reached (www. businessdictionary. com). Read more http//www. businessdictionary. com/definition/process. tmlixzz2QTQAtoBi When deciding a product design, it is well(predicate) to simultaneously come up with a duplicate process design. This will entail the flow of the process and Barnes (2008) said that the design of processes is divergent in all organizations and these designs will be based on the flock and variety of the demand for the product in the market. He further categorized the processes under watch, frolicbing, batch, line and continuous. Types of Processes There are different production processes namely project, jobbing, batch, line and continuous. See vermiform process C. spume is in a business of very costly products which are very mild in size so they do jobbing. Customers unremarkably give orders which are produced by the company ( conduct believe to order). They unremarkably hold little or no fully- treat inventory. The Production Process Diamond ore is sorted by density using X-rays. Before that engine room became available, shit belts were utilize to separate diamonds from the rest of the ore, due to the diamonds great tendenc y than other minerals to stick to grease. Rough diamonds are then set to be cut as gemstones in the cutting rideatory.A diamond has different cuts and different professional specialize on different cuts. This is the most daunting parturiency of diamond production because a bad cut will cost the company a fortune. Figure 5 Diamond jut in front cutting. Source slip of paper produces the facets associated with a diamond. The angles of the facets maximize light, adult the diamond its greatest possible luster (dispersion of white light). The cutting process can take as much as 50% of a rough diamonds weight. Figure 5 Illustration of diamond facets. Source A number of factors come into play when deciding how a diamond should be cut.X-rays are employed to see the stones crystallographic structure, its hardness and ability to cleave. The diamonds flaws are considered, and the cutter decides which to remove and which can remain. Either a hammer or a diamond dictum can be used to spli t the diamond the hammer is quicker, but the saw is surer. Figure 5 Diamond cutting. Source A number of institutes in the diamond industry offer courses for diamond cutters, but the bulk and most all important(p) part of the training for this delicate trade take place during the cutters apprenticeship.A diamond may get its final cut from numerous s pull downed hands the diamond marker or designer the diamond sawyer the diamond cutter or brute the cross-worker and the brillianteer. After the initial cutting, diamonds sustain the shining stages, usually performed by a technician as the process is a standard one. Polished diamonds are reexamined for flaws, which can be addressed done enhancement techniques or disguised when set in jewelry. Figure 5 Diamond Polishing. SourceFinally, the polished diamonds are sold to individuals, retailers, wholesalers and jewelry shops. Figure 5 Diamond graphic symbol check. Source 6 course of studyning, control condition adenine designing I n any good type of project or manufacture to be successful, it must be inventionned at the very counterbalance-class honours degree and at the end, it has to be controlled to make sure that the planned processes and cost is not very different from the actual. Businesses must overly continuously innovate so as to move line to line with the changing tastes of consumers and to bring forth numerous designs from competitors. 6. 1 PlanningEur says this about intend It lists the phases and encapsulates all the main parameters, standards and requirements of the project in bell of time, cost and quality/performance by context of use out the Why, What, When, Who, Where, and How, of the project. Planning whence looks at the entire process, product and project but in an imaginary form which has not yet happened but it is wished that it should happen that way. 6. 1. 1 Advantages of Planning 1. It gives direction of what has to be done and how it has to be done. 2. It assigns responsib ilities on every person thus answering Who does what? 3. A good plan will see hassles a project, product or process will encounter before the difficulty strikes. 4. A plan helps us to manage cost, quality and design side by side with the cabbage we will want to make on the product. 5. Plans are used to assess how well a product, process, project or person has done. 6. 1. 2 Disadvantages of Planning 1. It is usually made up by swipe solicitude and given to the employees down the management ladder who just follow it. 2. Plans are usually followed to the latter. Even when some changes have to done, it is not because a plan is being followed. 3.Plans are usually just estimates and it has no use in turbulent economic environments as the plan and the actual are usually very different. 6. 2 Control Control involves measuring the actual results against the plan and then taking action to adjust actual performance so that it moves in line with the plan. So in other words, control is only possible when we have a plan. Control has a feedback phase and this involves adjusting the actual to move in line with the plan or reporting residuals between actual and budget so that there may be no such discrepancies in the future. 6. 3 mutationInnovation is defined by the oxford dictionary as changing something established by introducing new methods, ideas or products. tho like there is no control where there is no plan, there is no innovation where there is no control. They all rely on one another. After control has been done, feedback is sent back and alterment or innovation is made. But in the complex business environment operating now, innovation just not just come from within the company but from outside the company like from competitors and oddly from the consumers due to the rapid change in customers taste, design and appearance.In the diamond manufacture industry, there are some(prenominal) a(prenominal) different innovational ways manufacturing diamonds and S parkle has had the following innovations 1. The Supercut design Sparkle has introduced the innovative supercut design into the industry a patented ideal emerald cut, with more than twice the facets of a traditional Emerald providing unparalleled impressiveness and fire. The culmination of three years of query, the supercut gives extraordinary wizard and strikeion and this innovation gives Sparkle competitive advantage in terms of having good designs with extraordinary glittering. 2. preciseness cuttingSince 2010, Sparkle has brought in a technology of cutting the diamonds using computer software and this cut is so exact that less than 0. 000002% waste is created from diamond cutting. Waste use to be about 0. 5% during diamond cutting and this innovation has caused drastic cost saving making Sparkle to be more competitive in terms of cost. 3. Sparkle offers a wide range of jewelry manufacturing processes, including design, modeling, prototyping, grooving, setting, finishing and precise quality control all featuring our own fine diamonds, and designed for clients to sell under their private labels. . 4 The Planning Control Innovation Cycle. From the above notes, it can be seen that planning, control and innovation work together. Sparkles cycle looks like this. Plan procural of blunt stones. Process the stones into fine diamond. cover and make a reasonable gain. Actual Procurement of unrefined stones. Process the stones into fine diamond. Sell and make a reasonable gain. Control Looks at the difference between what was planned and what actually happened. External Information Customer specific design New tastes and fashion Design from competitorsMarket Research (R&D) Feedback and Innovation Plan Procurement of unrefined stones. Process the stones into fine diamond. Sell and make a reasonable gain. Actual Procurement of unrefined stones. Process the stones into fine diamond. Sell and make a reasonable gain. Control Looks at the difference between what w as planned and what actually happened. External Information Customer specific design New tastes and fashion Design from competitors Market Research (R&D) Feedback and Innovation Figure 7. The planning-control-innovation cycle. 6. Changes happening in the diamond industry. * Researchers are on the verge of bringing in new materials which reflect light better than diamond and these materials are stronger and more durable than diamond. But, they will be far cheaper than diamonds and this is going to be a big problem to diamond manufacturers as the demand for diamond will surely drop. An example is synthetic stones. * In receipt to growing concern over illicit trade in conflict or inception diamonds, the unify Nations General Assembly established the Kimberley Process security Scheme in 2003.This scheme is going to make sure of the source of every single diamond so as to ensure that they are from a genuine source. This happening will increase the price of diamond because more tha n 55% of diamonds are from Africa and the mines there are operated by very cheap labor and sometimes by slaves, women and children. The UN will come in and s tweet this practice thus increasing the cost of labor, working conditions and ultimately the price for diamonds. 7 type direction Quality is one of the performance objectives and it is taken very seriously by all organizations because if achieved, may give them competitive advantage.Some organizations rely on quality more than others and the fashion and health industry takes quality as primary considering the fact that people want to look good and in good health. Quality is a matter of perception so what can be called quality for A efficacy not necessarily be called quality for B. According to Garvin (1984), the attributes in quality for a product are * Performance * Features * Reliability * Conformance * Durability * serviceableness * Aesthetics * Other perceptions Parasuraman et al. (1985), on the other hand listed 5 attr ibutes in defining what is quality of a service? nd they are * Reliability be we always going to get on time delivery? * Responsiveness Are the always going to respond quickly to our demands and complaints? * Assurance Are we sure of their competence? * Empathy Does the organization quality and understand customers necessarily and concerns? * Tangibles Is the physical surrounding conducive? 7. 1 Quality in the Organization But in sexual congress to Sparkle, the best definition of quality is that as per Slack et al. (2009) quality is consistent conformance to customers expectation and I will say and even surpassing those expectations.Sparkle uses total quality management as their quality management technique. They look for means and ways to insist and continuously improve quality at each stage of the production process. All employees meet once a month to discuss on how to improve the organizations present performance. Books by Deming, Crosby, Juran, pitchers mound and othe r total quality management gurus are in the companys library and research department for employees to read and be motivated to set up into the organizations performance. All employees are made to know that quality and customers requirements being met comes before any other thing.The organization has a suggestion rap where employees can write any inspiring idea that comes in mind and this box is emptied every day and read by the research staff and it is summarized and sent to the manager examine. 7. 2 The Cost of Quality Quality has a cost which is like a double-edged sword meaning that good quality will have a cost and bad quality will in any case have a cost. 7. 2. 1 The Cost of Good Quality This is in like manner known as the cost of quality assurance. Sparkle has a lot of this cost because they are continuously always trying to get better in quality all over the organization so as to better serve customers needs.The cost of quality assurance is further divided into stripe co st and appraisal cost. * Prevention cost is the cost of trying to make everything repair on first attempt and some of this cost are * Sparkle does not give a command for cherished stones and wait for the stones to come. They go to the suppliers exposit and pick the stones one aft(prenominal) the other and not in groups to ensure the best stones are taken. The supplier charges more for this. * The cost of designing the jewelry in a computer automated system and running several checks with other very expensive betrothed software before the design is confirmed. Sparkle trains its employees every 6 months and buys books to update them on new technologies and to keep their skills up and awake. * All employees are taught a wide variety of skills so that if a certain employee is not available to do a specific thing, there will always be another to do it. * Appraisal cost is concerned with controlling quality and this is achieved by testing the process before the product is manufactur ed and testing the product before it gets to the customer. Some of these costs are * The cost incurred in testing all equipment, machines and ensuring staffs are fit and able before any diamond is processed. The cost of checking the diamond after manufacture by employees and with the use of a computer aided change software which is very expensive to make sure that the diamonds are flawless. * The time washed-out in testing the diamonds ensuring the pass all the set of test before and after manufacture. 7. 2. 2 The Cost of Bad Quality All organizations including Sparkle wants to beat this cost because it is very dangerous and it can even bring down the entire organization in a blink of an eye. The cost of bad quality is divied into internal bankruptcy cost and external failure cost. Internal failure cost is cost incurred before the product reaches the customer. Some of this cost are * The cost of scrap. Diamonds are very expensive so any little scrap of badly shaped diamond is wor th a whole lot. So Sparkle makes sure the best quality diamond is procured and diamond cutting should be not less than perfect. * The cost of reshaping ill-shaped diamonds and gluing broken once. * The resources lost in repairing diamonds. Labor, machine time, and electrical energy are used which should have if the diamonds were made right the first time. External failure cost arises after the product has been received by the customer and some of this cost include * The cost listening to customer complaints and responding to them. * The cost of replacing a defective diamond which a customer has rejected. This can cause the organization a fortune. * The customer might have to take the company to court and the organization will pay a huge sum if the lost the lawsuit. Some compensation may run to millions of pounds and could bring the organization to its end. * One of the most dangerous costs is that which we dont see.An example is the lost sale and contribution. When a customer is dis satisfied, he will most at times not want to come back and he will discourage a emf customer who will discourage another customer to come to us. Saying all this, quality should be treated like an egg in the midst of rocks. 8 provision Chain Management 8. 1 Definition Supply Chain is the management of the interconnection of organizations that relate to each other through upstream and downstream linkages between the processes that produce value to the ultimate consumer in the form of products and services (Slack et al. 2010). A add on fibril is a holistic network starting from the sourcing of material, through its transportation to the organizations premises, to manufacturing, to storage and warehousing and finally to consumers. So it is a whole system and it works as one therefore is one part of the cosmic string is broken, the whole system will fall apart and consumers will not be satisfied. 8. 2 Sparkles industrious Chain Stage 1 Sparkles supply chain starts from the diamond mines in Africa which produce more than 50% of total diamonds to mines in India, Russia, Canada and Australia.The mines usually dug very deep but the deepest diamond mine runs for about 160km passing through sand, rocks, and make to be blasted drilled, crushed and processed. It should be say that only 20% of diamonds from mines can be polised and used for jewelry the rest is used for industrial use. The stones picked here are very rough still with no beauty (see common figure 10). Stage 2 Companies and single-handed buyers go to these mines and buy the rough stones from the mine owners and take them to their premises for processing.These stones are then processed to make them a little bit more presentable so that diamond manufacturers can then buy them and further process them into diamonds. Diamonds at this stage looks like that in figure 11. Figure 8 detain stones to look for diamonds in an African mine. Source Figure 9 A typical unprocessed diamond. Source Figure 10 Unproce ssed diamonds directly from the mine. Source Figure 11 Diamonds which have been slightly processed. Source Stage 3 Sparkle buys the diamonds in fig. 11 and examines them with the use of a computer aided personalized software.After a series of checks, rejected diamonds will be sent back to the suppliers and the good ones will be cut into different shapes so as to give the greatest value. After cutting, the diamond goes through computer aided software to confirm its perfection and after this, it is polished and cleaned. Sparkle will also buy what the diamonds are going to be fitted on because people will scarcely buy a chunk of diamond. Diamonds are usually fitted on rings, pens, earrings, belts and many more (see figure 14). These things are usually bought from top manufacturers with good design and quality and they are usually very expensive.Figure12 Diamond cutting in Sparkle. Source Figure 13 Diamond polishing in Sparkle Source Stage 4 After polishing and the diamond have an unble mished shine, shape and color, it is then taken by the customers. Some of the customers enjoin just a few and sometimes even just one special diamond era other big customers like jewelry shops order bigger quantities at ones. It is either Sparkle delivers the diamond to the place agreed by the customer or the customer comes to the organizations site on an agreed date and after a phone call to pick up the diamond. The supply chain ends after the diamond has reached the customer.Figure 14 undefiled diamond ready for the customer. Source Figure 15 Diamonds bought by jewelry shops. Source The Mine The clipping Company Polishing Customers Jewelry Shops Manufacturing The Mine The Cutting Company Polishing Customers Jewelry Shops Manufacturing The supply chain of Sparkle is a good and effective. Its success can sometimes be attributed to the information technology they use. They use the endeavour Resource Planning (ERP) system which brings in data from all sources and this is used to k now when suppliers have diamonds and the variouse categories, to know when jewelry shops are running defraud of iamonds, and many more (all discussed in chapter 9). Figure 16 Sparkles Supply Chain 9 Information Systems As seen in chapter 1, Operation Management is the activity of managing the resources which produce and deliver goods and services (Slack et al, 2010). For these activities to be properly managed, it needs the help of automated process and computer aided techniques. Information systems are constitute throughout an organization and if used well reduce costs and can be a source of gaining competitive advantage. 9. 1 computing device Aided Techniques Sparkle uses information systems in many ways in its business.Listed below are some specialized computer aided programs used. 1. They use Computer Aided Process Planning (CAPP) which gives an optimum layout of the cutting steps and their season (this is different for different diamonds). There are many diamond cutting mac hines and they all have different cutting styles and they are operated by specialist in the different cutting sectors. So the CAPP examines a diamond and gives different possible steps on which machine to use first and which not to use so as to minimize waste and give the diamond the best possible cuts so as reflect light in an optimal way. 2.They use Computer Aided Designs (CAD) to design the shape of diamonds on a computer and finished diamonds can actually be seen even before processing starts. If an error is made in the design, it can be corrected but this could have been impossible without CAD. 3. The also use Computer Aided Engineering (CAE) which takes the drawings and designs from the CAD and test them for perfection. Different test are administered and the flawlessness of a diamond can be confirmed even before manufacture. 4. Automated Material Handling (AMH) system is also used. Diamonds are very expensive and so care must be taken at each step.The AMH system improves effi ciency in diamond movement, storage and retrieval. 5. The Laser auspices System (LSS) is used where diamonds are kept be it rough stones, semi-processed diamonds and fully processed diamonds. Invisible laser rays crisscross the diamonds and it needs a password to be deactivated. Only top managers have the password and the password of each of them is different making it easy to know who accessed the diamond safe. If someone tries to pass through the laser rays, it can kill or paralyze them and the security alarm is automatically triggered and an automated call goes to the nearest police station. . Security Camera Systems (SCS) make use of Closed-Circuit television system (CCTV) at all times to monitor the whole building especially where inventory is held. 7. The Inventory Control System (ICS) gives detail information about each diamond rough, semi-processed or fully processed held in inventory at any point in time. Management must no go into the safe to see what they have in logi cal argument because the ICS does it all. This system is also used online to make customers see the diamonds, its specification and all other relevant information. Figure 16 The CAD system used to design a blue diamond.Source Figure 17 The virtual version of the diamond in fig 16. Source 9. 2 Pros and Cons of Information Technology (IT) IT is a very necessary tool in any organization be it a big or a small one. IT has advantages and disadvantages. They are listed in accompaniment D including Why IT cannot replace Human Beings. 9. 3 Information Systems Information system can be defined as a set of interrelated components that collect, process, store and distribute information to support decision making and control in an organization (Laundon & Laundon, 2006). Most organizations use some form of computer-based technology to accumulate, organize and distribute information (Ted, 2011) and Sparkle is not an exception. They use a set of interrelated information systems. 9. 3. 1 Transa ction Processing System (TPS) This system is used to account for day by day minutes of Sparkle. It records all sales, purchases, expenses, income, tax, bills paid, equipment bought and all other transactions performed by organization. This system is also used to account for employees attendance, absences, pay, overtime, bonuses, remuneration, and all other things concerning the employees. . 3. 2 Supply Chain System (SCS) This system deals with customers and suppliers. It monitors the stock in the jewelry shops so as to know when to give the shops an offer. It monitors the stocks which are demanded more and those demanded less so as to know when to produce. It tracks frequent and valuable customers and grades them into groups so as know how to give discounts. This system also monitors the stock in the cutting companies. It looks at the new stocks and compares price side by side quality so as to know which supplier to order rough diamonds from. 9. 3. 3 Knowledge Management System (KM S)In Sparkle, all manufacturing processes are recorded and stored in the KMS. Any ideas gotten either by inspiration, customers requirement, employees suggestions or business intelligence are stored in the KMS for future use. Sparkle is said to be very innovative and has this edge over its rivals because of its mastery of the KMS. When a new employees is recruited, he has 2 weeks probation where he is taught how to operate in the organization and how processes function. Before the implementation and use of the KMS, probation was 3 months so this system has greatly reduces learning time. 9. 3. Management Information System (MIS) This system takes all the information from the above systems and summarizes them into financial statements and reports. It is used by management to make decisions on how to run and control the business. 9. 3. 5 Decision Support System (DSS) This system looks like an advance of the MIS. It takes data from all sources (internal and external) and summarizes them for top management to make decisions on the long term plans of the organization. Information from this system appears as statements, reports, charts, graphs, ratios, statistics and trend analysis. . 3. 6 Enterprise Resource Planning (ERP) This can be called the overall system. It takes information from all sources of the organization and brings them together in one large database. From there, required information is taken out and implemented or used to make decisions in Sparkle. It should be noted that all other systems deposit their information in ERP. Figure 18 Example of ERP. Source LSBF MBA Intake 14, SOM Lecture 3, school term 9, Slide 34. 9. 6 Intranet and Extranet Sparkle uses intranets to deal with its employees and management.Staffs all have a particular passcode which the use and your code depends on your position within the company. Some passcodes can access some areas which other codes cant. They also use extranets to communicate and share information with customers, s uppliers, some competitors and the government. This system is more secured and less vulnerable to attacks as compared to the internet. 10 ponder Design It is said that the blood stream of any organization is money and I will say the skeleton holding an organization and making it stand up straight is its workforce.An organization manages resources so as to be able to deliver acceptable goods and services to its customers and one of these resources is its workforce. An organizations workforce is its most valuable and the most abstruse of all its resources because impertinent other resources, humans have a mind of their own. To be able to deal with human beings, you must know what they like and this is different for different people but these needs though different are similar. In providing this, it motivates the employees and when motivated, they produce better output eventually yielding higher profits, quality and flexibility. 0. 1 indigence Motivation is the urge to take action t o achieve something or to avoid something (BPP, 2010). Motivation can either be intrinsic (wanting to satisfy an internal urge like being riant to be able to help others) or alien (reliant on tangible rewards like money, fame and bureau). Continues in Appendix E. 10. 2 Empowerment This is the act of delegating work to employees making them feel more superior because of the added obligation and new accountability. This is good motivation for many employees. avocation design is about how people carry out their confinements within a process.It defines the way they go about their working lives. It positions the expectations of what is required of them, and it influences their perceptions of how they contribute to the organization. It also defines their activities in relation to their work colleagues and it channels the flows of communication between different parts of the operation. But, of most importance, it helps to develop the culture of the organization its shared values, be liefs and assumptions (Slack, 2009). In designing any job, the following have to be put into consideration. * Safety. communication channels should be design in a way that it will bring no harm to the employee be it physical, psychological, mental or emotional harm. Workers in the mines especially those in Africa are exposed to a lot of risk and still earn less than the minimum wage. The mine owners wanting to make more profits cut down on cost by reducing expenditure on employees safety. The employees of Sparkle all have safety equipment like hats and new ideas are being implemented to make the process safer. The organization has also fully insured its entire staff. * Legal and ethical Issues.Jobs should be design in such a manner that those doing the job will not go against the law or their code of ethics. * Own time. Job design should create time for the employees to catch up on something other than work. For example visiting new places, being with their families or playacting other loving activities. Employees working in the mines have little of this, but Sparkles employees all have right to a paid holiday and taking allowance to be out of work if the need arises. * Employees Ability. An employees ability to do the job or a range of task should be considered before designing the job.For example only heavy built men carry cargo from the trucks into the warehouse because of their physical ability to carry heavy weight unlike their colleagues. * Wage and Benefits In designing any job, the wage and benefits to be paid for the job should be considered if not the employee can be over-paid or under-paid for the job. 10. 3 component part of Labor Unlike traditional production approaches that stipulated that one person should know everything in the company so that he can serve any function, hydrogen Ford came in with the idea that one man should only know one thing and should be an expert in that thing.He suggested that with specializing in a particular funct ion, the whole organization will be specialized and will give the best quality goods and services. So jobs should be broken down into little portions and given to different individuals who will specialize and bring forth quality cost-effective products. 10. 3. 1 Advantages of component of Labor (Slack, 2009) * It is easier to learn. Short and simple tasks are easier to learn compared with long and complex tasks. This will be very advantageous when training new recruits because training will take a shorter time and it will be better mastered. Automating. Short and simple task are easily automated as compared to long and complex task. * Time. More time is spent on one long task compare to time if that task was broken down. This extra time is as a result of picking different tools up and place them down, looking for equipment, thinking of what to do next etc. 10. 3. 2 Disadvantages of Division of Labor (Slack, 2009) * Monotony. The equivalent small task will be repeated every hour, week, month and year. This will make the job slow and less fulfilling thus resulting to absenteeism, staff turnover and errors. Over-reliance. If one employee is absent, no other will be able to perform his duty and this may bring the whole production process to a halt. * No flexibility. Employees let to do one particular thing over the years turn to lose the skill of being able to learn another thing. So if the production process was to change, many employees will not be able to cope with learning how to perform a new task. * Physical Injury. The repetitive use of one part of your body lets say arm or wrist will in the long run cause pain to that part. This is known as Repetitive Strain Injury (RSI).Sparkle teaches their employees a wide range of task during their probation but the employees are assigned to do just one thing when they fully start work. Teaching them a wide range of task is to expose them to the processes of the whole organization so that they can contribute ideas in the development of a department or process which does not involve them. Another reason for large(p) employees holistic training is to make an employee being able to do an absent employees work. This tactic was also implemented because the organization did not want an employee to feel indispensable. 0. 4 Job Design Approaches In coming out with a good job designing, the following approaches should be implemented- 1. Job Simplification The organization tries to the range of task and their complexities. Polishing diamond use to be a very complex task at Sparkle but with the introduction of DiamondShines TM a specialized software where diamond polishing is programmed with exact details. 2. Job Rotation This is periodically interchanging employees performing different task to do the task of the other.Sparkle does a lot of job rotation and this makes the employees job more exciting. Job rotation is successful in this organization because they train their employees to perform a number of task but if division of labor was rigorously implemented, this approach could have been impossible because employee A will not have a clue of employees Bs task. 3. Job Enlargement This involves integrating same level tasks to the ones already performed by the employees to make the job more exciting. This is not practiced in Sparkle. 4.Job Enrichment This involves integrating different level tasks to the ones performed by the employees. The new tasks are usually higher level tasks giving employees more responsibility and decision making power. Sparkle once a week picks an employee randomly and gives him the power of a supervisory manager so as to see the changes and innovations he is going to bring to the organization. Sparkle also makes employees work in small teams and the organization creates a competitive strain amongst the teams. The competition amongst the teams brings a lot of hard work, efficiency and effectiveness.