management is actions that enable an organisation to transform a range of straightforward
inputs into outputs for the end customer (Brown et al., 2005). Denwire Ropes is the company that
will be analysed. First established in Denmark by Erik Tromholt and due to the high
tax brackets being at an average of 60% and that there were higher demands for
wire cables in the United Kingdom than there were in Denmark, Tromholt took at
that opportunity and to move to England. It is a leading business in the ground
of steel wire rope products, as well as accessories all around Europe but the
operation that will be analysed in this report is Denwire Ltd, located in the
West Midlands which covers the whole of the British Isles and customers outside
of Europe. The ropes are supplied for areas of construction, design and
functions and rely solely on speed to
allow to be efficient towards its partners and for other businesses that guarantee that all products are made at the
highest quality (Denwire Ltd). In this
report, the five performances; quality, dependability, flexibility, cost and
speed will be evaluated and how this supports the strategic aim for Denwire
Ltd. And how Denwire designs, delivers and develops its operation and whether
these are successfully or not. The main aims of this operation are speed,
quality and cost, the analysis will provide a clear view on whether speed,
quality and cost can be totally compatible or whether only one or other can
really be met successfully or whether none are essentially met.
2. Analysis of Denwire Ltd.’s
2.1. Directing the Operation.
There are four approaches on
how to direct the operation; operations management, operations strategy, the
structure and scope of the operations, product and service innovation and
operations performances which includes the internal benefits; quality,
dependability, flexibility, cost and speed of an operation. This is to allow
the observation of the essential activities and decisions that outline the
overall direction and strategy of the operations function.
Operation management is how an
organisation creates and deliver services and products (Slack et al., 2016, 4).
At Denwire Ropes, based on an efficient quality control system to guarantee
that all our products meet the highest quality standards. This illustrates the
operations function depends on a lot of the speed, quality and cost. Their service
is to produce the right rope for their consumers, quickly, at an excellent
quality but also at an efficient price. However, some may be sceptical about
this as it may be unlikely that products that are produced at an excellent
quality cannot really be made quickly and at
a cheaper price.
The operation function
consists of the marketing function, which is the in control of the
communication of the organisation’s services and products to its markets in
order to create customer requests; the product/service development function,
which is in charge for producing new and modified services and products in
order to generate future customer requests and the operations function which is
responsible for the creation and delivery of services and products based on the
customer requests (Slack et al., 2016, 6). Most companies like Denwire will
most likely have all three of these three functions as all organisations
centralise themselves on selling their products and in this case, Denwire have
a need to sell steel wire ropes, meet customer requests, their customers give
them details of what it is that they want and the manufacturing part of Denwire
is to produce this correctly and
effectively, as well introduce new services and products to keep their
customers happy. However, it could be said that maybe Denwire is not able to provide new products as cable
and steel rope are to some extent similar worldwide and people are looking for
the same product, but somewhat could be said differently
about the services that Denwire can provide. For example, modern technology is
being produced, maybe the service of being able to order your products online
could be a step forward rather than having to call the company to be able to
order the products that are needed.
However, there are other functions that need to be considered, this includes
accounting and finance function, and information systems function. Operation
management is needed in an organisation as without the office workers, services
would not be able to create and without the warehouse workers at Denwire, the
products could not be produced.
input-transformation-output process is a process is an operation process that
has set input resources that are used to transform into something or are to
transform themselves into outputs that create products and service for a
company (Slack et al., 2016, 15) as mentioned in figure 1.
Figure 1 – Input-Transformation-Output
For the transformed recourses,
Denwire would restore their materials and products that they have created or
will be using to create the ropes at their warehouse before delivering it to
their customers. Information that Denwire can use to process information could
be the price of each individual order, for each order, it is different and to
drive their market shares and competitiveness up, they may change the
possession of the information. Customers are a driving point for Denwire
therefore, they need more and more loyal customers, customers also change their
physical properties. Again, this is because the nature of each individual order
can be extremely different therefore the company has to meet the need of their customer’s demands or they will most likely
lose out on profits. Overall, most organisations process all three, materials,
information and customers but usually,
only one is really dominating. In this case for Denwire Ltd. customers, input resources are the most dominant since customers ask for
what they specifically need therefore it could protentional also be ‘co-production’
as customers play a role and provide the information of what products they wish
to be made and by when.
There is also a business
process that is used as an attempt for a business to fulfil their customers
needs using both its operations and function process. Though operation
processes are somewhat similar in the aspects that they all transform inputs,
they also differ to some extent.
The volume of their output, a variety of their output, variation in the
demand for their output and the degree of visibility which customers have of
the creation of their outputs (Slack, et al., 2016, 22) also known as the four
Vs. An example that summarises the implications of such position of operations
using discretion to move on the dimension using the four Vs is stated in figure
2 (Slack, et al., 2016, 26).
Figure 2 – A typology of
Operations are also judged on
how they perform. These can be done through the process of quality, speeds, dependability,
flexibility and cost.
Quality is a major factor in
customer satisfaction. Quality means consistency in producing the product or
service. Denwire guarantees their customer of excellent quality products but
also guarantees a fair price and speed. However, it may be unlikely that
Denwire Ltd. is able to fulfil this as it
could be said that quality reduces costs and increase dependability. I may not
be realistic to guarantee all this and be fully successful. However,
considering they are a leading business in the ground of steel wire rope
products and a considerable number of
long-term customers, it may be possible that they can guarantee this to their
Speed increases the value to
the customers It is important internally because it reduces inventory, reduces
risks (forecasting times are shortened). Denwire has a specific amount of
times on how long they need to produce the products by. Whether workers must
work extra time to fulfil this, the deadline must be met or again it can
jeopardise their loyal customers who were relying on their speed to produce
what it was that they wanted.
Dependability also a factor as
no matter how cheap, fast, innovative a product/service from that company is,
if the customer cannot depend that it will be delivered in time, of the right
quality, loyal or not, a business could lose a customer. Dependability inside
the organisation is important as if saves time and money as it diminishes the inefficient use of recourses as well as time.
Dependability also gives stability to the
organisation, as and disturbance of this will affects the quality of the
service and products in operations time which goes further than time and
Flexibility is the ability to
be able to change in either, for a company to be enabling to provide four types
of requirements; product/service flexibility – ability of operations to
introduce new or modified products/services, mix flexibility – ability to
produce a wide or mix variety of products/services, volume flexibility – able
to change level of output and delivery flexibility – ability to change time of
delivery. Flexibility inside the organisation is also a crucial factor as it could
speed up responses to change in the environment and increases speed as well as maintaining
dependability. Denwire provides services
and products that are different to other orders as customers and businesses
choose what it is that they need therefore Denwire must be flexible and allow
themselves to produce and supply what is demanded of their customers.
Every organisation wants to
keep their costs low as the lower it is, there are usually more customers,
Denwire guarantees a fair price and quality, which may be impossible for some
but according to their loyal customers and success in the industry, it shows
that cost and quality can be compatibility to some extent.
Figure 3 – Polar Diagram of
Overall, from understanding
how successful Denwire Ltd. really are in the industry, it is fair to conclude that their guarantee of speed,
cost and quality are somewhat successful to a certain extent. If cost had increased, then it is best to conclude that the
quality of the products is also to
2.2. Designing the Operation.
a system of an organisation’s operation can be advantageous both for both the
customer and organisation (Bamford and Forrester, 2010). The focus of design is
on technology, systems, procedures, facilities and people in the operations. It
is arguable that the first three are seen to more important as technology in
the workplace allows more efficiency as
it may be quicker and not so prone to human errors. Though there may be
negatives towards people in an operation, it could also be viewed as an asset
in an operation. The importance of abilities, attitudes and culture of the
people in the operation and how they really make up the operation function.
Human recourse aspects are vital in the operations function, where most of the
‘human resources’ can be found (Slack et al., 2016, 277). This can affect their
insight on how they contribute to their organisation.
Denwire Ltd started in business when Erik moved to England therefore grouped
resources by the markets which it indented to serve as there was more demand for cable in the UK, but over
the years started covering all over Europe. Erik retired in 2017 and his son
and daughter Iben and Steven Tromholt are the joint managing directors of
Denwire Ropes APS, Denwire Ltd and Denwire Ropes France which opened ten years
ago. They too have got the same drive and determination to carry the business
forward with their own ideas. Denwire
Ltd relocated from a 12,500-square ft. unit to a purpose built 57,000 square ft.
unit with its own rigging facilities. To enable the manufacture of cable
assemblies up to 32mm diameter. Denwire Ltd now services
any industry who use wire rope. And carry stocks in the UK more than Twenty
million meters. Sold into Marine, The Armed services, Offshore Oil and Gas
platforms, Architectural, Sports equipment, Cranes, Towing, Fishing industries,
The Food Industry, General Engineering and of course Farming, to name a few.
The management of Denwire changed which resulted in these innovative ideas and
it can be an advantage to their customers as there are newer facilities that can
allow more supplies being made that matches to their demands even further and this
could also increase the speed of how long it takes to produce, as well as modern
technology can drive the quality of the products made to be higher. Another
form of the Denwire that it can be seen to take is the U-form, this is because
there is obvious management that is up higher in the hierarchy, however, employers are still able to promote
the creation and sharing of technical knowledge, therefore, give the prominence
to functional groupings of resources. As well as they are efficient at
continuing good customer services and can adapt to changing in the marker. Without
the new management, Denwire may not have
modernised therefore could have fallen behind to other competitors.
2.3. Delivering the Operation.
Operations principle of
capacity is the maximum level of value-added
activity over the period that the process of an
operation can achieve under normal operating conditions (Slack et al., 2015,
256). The nature of demand and supply is understood therefore planning and
controlling the capacity in the short term which can be flex output day to day, hour
by hour, medium term, 2-18 months vary output in accordance with forecast
demand and long term, 18 months+ which is a major change to the physical
capacity, however, this needs to be effective
to the company as well as still reconciling the competing demands of efficiency
of recourses and satisfaction of their customers.
The objectives of capacity are
measured through cost, revenues, working capital, quality, speed, dependability
and flexibility. These decisions are taken by the operations managers that have
plans that may affect various aspects of performance. Though, insufficient
capacity management would not be beneficial to a company, is because if working
capitals are affected, as if an organisation must fund the inventory before it
can be sold as an operation decides to make good inventories prior to what is
demanded may lead to a company making workers redundant, so they are able to
make up for the extra funds needed. The quality of goods and services may also
be affected if a company needs more workers during the specific season as there is a
higher demand for the product or service.
This may be because an organisation needs to hire temporary staffs to fill in
the extra gaps, those who may not have as high skill as those who are permanent
staff which also could increase the likelihood of errors being made.
However, with Denwire there is no part-time
staff as the nature of the business is not seasonal. Some of the industries
Denwire sell to may have busier and slower periods but the overall as farming
drops off construction will kick in etc. The only quieter part of the year is
the week before Christmas shut down, but the number of workers does not increase or decrease depending on the
season unlike many others even if there are a huge or low amount of orders.
Denwire has a total of seventeen full-time
employees, nine in the factory and eight in the offices who have spent between
two years to twenty-nine years in employment at the company. As well as they
have never made anyone redundant, even if the stocks and inventories are low.
However, by not increasing their factory workers or office workers when there
is a higher demand in their products and services, it could raise the risk of
Denwire, not assure their customers with quick services, or quick services are
provided but their products the quality of their product lack excellence that
they guaranteed their customers.
2.4. Developing the Operation.
Both service and manufacturing organisations use OM to ensure they are
competitive and assist in providing and maintaining good levels of customer
service (Johnson et al. 2012). Customer service is the experience a customer
receives during a service provided the organisation. Customers may repeat their
purchases from a business if there are satisfied enough with the service. This
can drive up a company’s success as satisfied customers are more than likely to
recommend a friend, therefore, customer rates and sales would increase. However,
sometimes services and products do not
meet the need of their customers, this would create a problem for a business as
it can potentially be a loss of profits as loyal customers deter from being involved with the business that did not
meet their standard even if it had previously. The organisation must continue
its high standard of customer service to
allow the continued partnership with
their already loyal customers as well as potential loyal customers. This
sometimes could be difficult as those in management’s view and customer’s view
of excellent quality may be different, however, this would not make an
organisation successful but instead, the
operation must find what the customer needs are and match that.
Most hospitality settings are dynamic in nature—managers are
continuously attempting to update their image and accommodate changes in tastes
and fashion by making changes to their retail environment. However, decisions
to make such changes are not necessarily based on accessible information
regarding consumer perceptions (Spielmann et al., 2012, 360). Denwire changed
their location and the environment of where their warehouse and office where
this made it more modern and make it easier for
businesses to access their products.
The customers Denwire Ltd tend are extremely loyal
and once they become customers, they tend to be for decades/generations. This is partly to do with the fact they are
now the largest stockist in the country of our products and having the most
competitive price and provide what the customer’s
needs, as they must take orders specifically for that customer, therefore,
continue to grow their customer satisfaction with each individual customer.