The Operations Problem At J C Company Business Essay

J & A ; C Building Company Ltd is a fast growth hardware concatenation shops runing in the whole of Uganda. It has five subdivisions in the nucleus divisions of Kampala territory. The shop import lasting edifice stuffs, plumbing and kitchen adjustments from Europe and America and provide the full state.

The company was structured in such a manner that it had the undermentioned sections:

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Administration section that was responsible for order/requisition, accounting and finance, procurance and general disposal. This section was centralised in Kampala functioning all the shops in the state.

Shops section that was responsible for the storage and supplies to clients. Whenever shops ran out, the shops must describe to the cardinal office in Kampala who will so put orders for that stuff.

Transportation division that was responsible for motion of stuffs to shops around the state.

The human resources section that was responsible for the hiring and maintaining of high quality forces who could function clients as outlined within the mission of the company and the civilization that had been built in the yesteryear.

The company had gained repute for providing excellent and high quality stuffs to clients in the full state. They were the taking traders in that sector for a figure of old ages running and as such ordering the monetary value as the market leader.

However, figures from the direction comptroller showed that like-for-like gross revenues for the past three old ages had taken a changeless dip. The figure of clients has besides fallen well as a consequence the net incomes fell by 10 % in 2006, 20 % in 2007, 28 % in 2008 and 35 % in 2009. The direction history made a upseting reading to the main executive officer and senior direction including the board of managers.

The board ordered an probe on the changeless autumn in profits/sales and why the figure of clients go toing the shops in the state has been fallen twelvemonth on twelvemonth.

The consequences of the probe revealed that clients has lost trust and assurance in the company ‘s operating activities that is why the was the switch to other little providers.

A farther analysis showed that the existent jobs were holds in providing client orders. Some clients would hold to line up for a long clip to purchase stuffs. Some of the stuffs that ran out of stock took long to be replenished due to the drawn-out procedure of shop requisition to shops directors for vetting to the caput of shop operation in the caput office to the comptroller for verification to the main procurement officer who places the order. This procedure take rather some clip for stocks to be replaced given that stock degrees were no proper controlled. Furthermore, it was noted that the quality of the stuffs supplied to clients had fallen so clients no longer want to purchase low quality stuffs. The effect of the above job was justified in the consequences reflected in the direction histories and one-year fiscal statement.

Harmonizing to Slack et Al ( 1997 ) operations direction is that portion of the direction that is concern with the design, planning/control and betterment of the administration ‘s resources and the procedures to bring forth goods or services for clients. Whether the activities trades with physical goods or services they all form portion of the operations activity of an administration. Plagiarism

The jobs identified have a direct relationship with operation pattern in an administration in that they all form portion of the procedure ( transmutation Process ) that ensures that inputs are processed into end product for client satisfaction. In this peculiar instance, the input will be the labor, stuffs that are ordered, disposal procedures and the end product is the bringing of fast, efficient, effectual and quality services to clients or purchasers of edifice stuffs.


Waller ( 1999 ) has postulated that a procedure is made up of a series of activities that a performed in order to accomplish a peculiar end. While Galloway et Al ( 2005 ) has stared that for an administration to be successful, there must be an operation scheme which they states “ involves the determinations on the design of the production or service bringing system and the administration of operation ‘s resources for updating the developing new merchandises or services ”

If J & A ; C Company would derive its place in the market, it would necessitate to reexamine its operations and re-invent is activities and cut the holds and waiting lines that presently impacting their operations. This will imply a root and subdivision inspection and repair of procedures to drop inefficiency.

The success of the operations will depend on how good the procedures flow and the location of installations for easy entree to clients. plagiarism

Operation processes that cover the whole state like those of J & A ; C Company are described as macro procedures while those that are with units of the same sections are known as micro procedures ( internal clients ) .

I am looking at the operation procedure of J & A ; C Company at the macro degree. The consequences from the direction and fiscal history show that the company is affected in the whole state so one would wish to look at the whole operation procedures of J & A ; C and so propose for betterments in the system to construct client assurance. The overall operation procedures of the company are:

The client order supplies from one of the shops

The shop worker inspect the order to corroborate whether the goods are in shop

The order is passed on to the shop director for blessing

The order is sent to the teller for payment and sent back to shop for supplies

Shops so supplies the goods to the client

If the goods are non in shop, the shop worker who raises a shop requisition note and sent to the shop director for proof

The goods requisition note is sent to the procurance section in the caput office in Kampala who acknowledge reception by subscribing and returning a transcript to the shop in divisions.

All requisition from shops in the state are summed and presented to the comptroller who approves for the procurance to travel in front before the procurement officer can put an order.

Goods are received in a cardinal warehouse in Kampala before being dispatched to the assorted shops around the state utilizing their fleet of transit vehicle.

When stuffs run out in some parts of the state that are really far, it takes clip for stock to get. Which means that some shop have to travel for some clip without stuffs, farther note that the whole of the procedure is done manually as the company does non hold an IT section to run their procedure electronically.

The procedure map for the current procedure of the company is shown below.








Procurement officer








The above processes show that when stock runs out the bureaucratic procedure that has to be carried out before the stock is replenished in warehouses in the state takes long. Second it takes long for clients to acquire their orders fulfilled. This creates holds that have moved clients to rival providers of stuff. Third, given that Uganda has two major seasons ; clients like to take advantage of the dry season to build their place, therefore increasing demand during that period which the company can non fulfill.

Undertaking 3: Relevant OPERATIONS THEORY

The operations scheme should suit it the overall scheme as it is clearly portion of the administration ‘s entire scheme. While a scheme defines the entire form of the determinations and class of action which a company like J & A ; C has agreed to prosecute, an operation scheme hence involves working the capablenesss of the operations resources towards run intoing the overall mission of the company.

Hill ( 1993 ) had developed the Hill methodological analysis of operation scheme which connects the overall scheme to the operations scheme. On the other manus, Platts ( 1990 ) produced a method of operation scheme development which had three phases as follows:

Phase 1 – this involved the development of an penetration into the market place of the administration.

Phase 2 – involves measuring the capablenesss of operations. At this degree, current operations patterns are identified the extent to which they can assist in accomplishing the degree of public presentation the market demand.

Phase 3 – at this degree, the direction looks at the demand for developing new operations scheme. This means that reappraisals are made and the best options are selected to run into current demands.

The success of an operation depends on how effectual the direction can convey together the right quality and measure of stuffs, labor, operating expense and clip to present to the demands of the client.

The success of an operations direction will depend on run intoing the undermentioned aims:

Quality aim: the company should endeavor to make things right first clip with no room for errors. In the instance of J & A ; C Company, they should provide clients on clip, with the right quality of stuffs.

Speed aim: this is concerned with the clip taken to present services to clients. Customer should non wait for a long clip to be served as seen in the instance of J & A ; C Company in some of its subdivisions. Second shops should be supplied on clip to the assorted warehouses. The over-bureaucratic process is likely to decelerate the velocity of bringing therefore get the better ofing this aim.

Dependability objectives: this involve maintaining on clip with bringing to clients. Customer can merely judge the dependableness of a service one they are supplied with the service or merchandise. Thus will be a grade of dependability for the company.

Flexibility aim: this involves the velocity with which a company can accommodate to altering fortunes rapidly. An administration should be able to set to unanticipated events fast without doing client dissatisfaction.

Cost aim: operations should be cost effectual to both the administration and the client who pays for the merchandise or services. The administration should endeavor to make things cheaply by blending the right resources and installations to supply the good value for money products/services.

Administrations will hold to guarantee that the overall scheme is translated to operation procedure for success to be achieved.

Theoretically, the operation of an administration can outdo be judged by utilizing some theoretical accounts. In my assignment, I have decided to utilize the input/output or transmutation theoretical account of procedures and the fishbone theoretical account to explicate my company.


This theoretical account which is shown in the diagram below explains how an operation procedure takes in a set of input stuffs or services which are so transformed through a transition procedure and eventually comes out as end product of goods or services which satisfy client demands.

This theoretical account has three cardinal constituents know as input, transition procedure and end product.

Input signal: these are the resources that are used by the operating system. They can be classified either as transformed resources. That is those resources that would necessitate to be converted or treated into finished goods or transforming resources that act upon the transformed resources.

The transformed resources include such resources as stuffs, information, clients and. While the transforming resources include, installations such as edifice, equipment, works and procedure engineering of the operation and staff that operate the installations, program, maintain and manage operations. In the instance of J & A ; C Company, the transformed resource will be the assorted stuff stocks for sale while the transforming resource is their staff, the edifices, warehouses and fleet of transit vehicles.

Conversion procedure: this is concerned with the design of the operation system, be aftering and control and betterment needed during the industry and supply of goods/services. At this phase, the transformed resources are assorted harmonizing to the needed specification to bring forth goods/services. The procedure involve as the design of activities to ease the free flow of the procedure. Conversion procedure besides involves uninterrupted betterment. This means that incremental betterments ( kaizen ) are carried out at this phase.

End product: these are the concluding merchandise or services coming out of the operations procedure to fulfill the client demands.


End products



Transformation Procedure

Design activities

Planing and control activities

Improvement activities

Methods of transition

Input signals













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