Operation management – Tokyo Cement


Operation Management – Tokyo Cement

Word count 5539


1.) Critically assess the current operations strategy of the organization. Identify strengths and weaknesses of the current strategy. Draw Input-Process-Output diagram to describe the operation stagey of the organization.

2.) Select five processes mentioned above and critically describe each with standard process management tools and diagrams. (Standard tools and diagrams are: Process Chart, Process Flow Chart, Responsibility Matrix, etc…)

3.) Critically analyze and propose the improvements/changes to the processes mentioned above in the view of “Process innovation and improvement”. Support your answer with total innovation management (TIM) implementation, technology acquisition and automation practices.

4.) Critically describe the “Quality Management, Inventory Management and Supply Chain Management” processes in the organization. Strength your answers with examples.

Additional information

Table of Contents

1.0 Introduction
1.1 Company background
2.0 Current operation strategy
2.1 Strengths and weaknesses of current operation strategy
2.1.1 Strengths
2.1.2 Weaknesses
2.2 Input – Process – Output Diagram of Tokyo Cement
3.0 Critical analysis of standard process management tools and diagrams
3.1 Input – Process – Output model
3.1.1 Input
3.1.2 Transformation process
3.1.3 Output
3.2 Process flow charts
4.0 Process innovation and improvement
5.0 Operation management processes
5.1 Quality Management
5.1.1 Quality planning
5.1.2 Quality assurance
5.1.3 Quality control
5.2 Supply Chain Management
5.3 Inventory management
6.0 Conclusion


1.0 Introduction

Tokyo Cement Company (Lanka) PLC is the largest cement and concrete manufacturer and distributor in Sri Lanka. The objective of this study to comprehensively evaluate the operation strategy and operation management process of Tokyo Cement. Tokyo Cement Company has different product range such as cement, flooring/water waterproofing compounds, concrete, wall plasters and tile adhesives. Company has many different brands under these different product categories.
In an any industry, operation can be identified as transformation process. Operation management is the methodical approach to conduct all aspects of operation smoothly. Operation management mainly focus on design, selection process, organizing works, provide location facilities, design, scheduling work, layout, production, measuring performance, quality management, inventory management etc. Companies need to work closely with suppliers, customers to continue operation management process. Operation mangers have major responsibility to continue this process and coordinate with suppliers, customers and other experts.
Modern technology has been significantly affected to the operation management. Modern technology support to improve efficiency and minimize defects by automating processes. Currently, there is a huge argument about global warming and other environmental issues. Therefore, organization also need to consider new concepts such as green manufacturing practices and environmental friendly operational practices. Especially, cement manufacturing company need to highly consider about environmental factors when conduct operation.
This report will extensively analysis the operation strategy by discussing strengths and weaknesses. Manufacturing process of the company can be described via input – process – output model. Process flow chart are used to illustrate these processes. Further, this report discuss how process innovation can be used to improve the processes. Quality management, inventory management and supply chain management are highly significant processes of Tokyo Cement (Lanka) PLC. Thus, this report discuss how company manage these important processes.

1.1 Company background

Tokyo Cement Company (Lanka) PLC was established in 1982 as a joint venture with Japan’s Mitsui Mining Co. Currently, company increase its total annual production up to 2.8 million MT. Currently, it is a listed company in Colombo Stock Exchange. Organization’s operation strategy need to be developed based on its vision. Company vision is to be the leading partner in nation building; setting standards that exceed expectation. Mission of the company is that strengthening market leadership by empowering people, driving innovation, following sustainable development, ensuring consistence quality, and committing to impeccable service; thereby developing shareholder value and customers’ trust (Tokyo Cement annual report, 2019).
Tokyo Cement has won many different national and international awards for its operation excellence. Company has obtained different IOS certificates related to quality, environmental friendliness etc. Tokyo Cement manufacturing factor is located in Trincomalee. Company has dealers and distributors all over the Sri Lanka. Currently, company has more than 600 employees. Annual production has been increased to 7.63% in financial year 2018/19 it was recorded as 2.98% in previous year. Further, market share was recorded as 33% in 2018/19 and it has been increased by 2% compared to previous year (Tokyo Cement annual report, 2019). Tokyo Cement is the market leader in the industry. However, recent past was very challenging for construction industry and its suppliers. Therefore, some aspects of operation management process need to be reviewed and changed.

2.0 Current operation strategy

Operation strategy need to be aligned with business strategy and also need to be upgraded according to day to day activities of the company. Further, market requirements need to be fulfilled by operation strategy. There is a standard price in Sri Lanka to sell cement. Therefore, generic strategies are not relevant to the industry. Tokyo Cement mainly focus on product development strategy which involves developing new products and placing them in existing market. Currently, Tokyo Cement Lanka has many different products under product categories such as cement, tile adhesives, flooring waterproofing, wall plasters, concrete and lightweight block.