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Assignment-Logistic & Operation

1) The document discusses productivity and capacity planning in logistics and operations management. It explains that higher productivity leads to lower costs and improved competitiveness. 2) It describes how the author's company provides training to employees on Excel skills in order to increase report productivity. Standard operating procedures are also used to ensure quality and accuracy. 3) Transportation costs are an important factor in capacity and location decisions, as they can account for a large portion of overall product costs, especially in air freight. The lowest-cost distribution plan should be found when evaluating multiple sources and destinations.

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Paul Eshan
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74 views2 pages

Assignment-Logistic & Operation

1) The document discusses productivity and capacity planning in logistics and operations management. It explains that higher productivity leads to lower costs and improved competitiveness. 2) It describes how the author's company provides training to employees on Excel skills in order to increase report productivity. Standard operating procedures are also used to ensure quality and accuracy. 3) Transportation costs are an important factor in capacity and location decisions, as they can account for a large portion of overall product costs, especially in air freight. The lowest-cost distribution plan should be found when evaluating multiple sources and destinations.

Uploaded by

Paul Eshan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Assignment-1

Course: Logistics & Operation Management


Conductor: Dr. Mohammad Rashedul Hoque
Name: Nayan Paul || ID: 20-91648-1

Currently I am working in a BPO company which work as a back office of a USA based Freight
Forwarding company. We provide all the services, which can be performed remotely. One of
the primary responsibilities of our manager is to achieve productive use of an organization’s
resources. Because higher productivity means lower costs; for profit-based organizations,
productivity is an important factor in determining how competitive a company is. productivity
measurements serve as scorecards of the effective use of resources. Business leaders are
concerned with productivity as it relates to competitiveness: If two firms both have the same
level of output but one requires less input because of higher productivity, that one will be able
to charge a lower price and consequently increase its share of the market. Moreover,
productivity measures can be used to track performance over time. This allows managers to
judge performance and to decide where improvements are needed.

As a service provider we know, service productivity is more problematic than manufacturing


productivity. In many situations, it is more difficult to measure, and thus to manage, because it
involves intellectual activities and a high degree of variability. In our company, most of the
report need to be sent in excel format. So, our company provides training on various use &
shortcut of excel by an expert. As a result, employee now produce more report than the earlier
with more accuracy.

To provide better service to our client we have the set of SOPs for each job which equality &
accuracy of service.

Capacity refers to a system’s potential for producing goods or delivering services over a
specified time interval. Capacity decisions are important because capacity is a ceiling on output
and a major determinant of operating costs. The capacity planning decision is one of the most
important decisions that managers make. It is strategic and long-term in nature, often involving
a significant initial investment of capital. Capacity planning is particularly difficult in cases where
returns will accrue over a lengthy period and risk is a major consideration. In evaluating
capacity alternatives, a manager must consider both quantitative and qualitative aspects.
Quantitative analysis usually reflects economic factors, and qualitative considerations include
intangibles such as public opinion and personal preferences of managers. Cost–volume analysis
can be useful for analyzing alternatives.

Transportation costs sometimes play an important role in location decisions. The most common
goals in designing process layouts are minimization of transportation costs or distances
traveled. These can stem from the movement of either raw materials or finished goods. If a
facility will be the sole source or destination of shipments, the company can include the
transportation costs in a locational cost–volume analysis by incorporating the transportation
cost per unit being
shipped into the variable cost per unit.

Since I involved in air freight operation, I can understand how transportation cost work as a
major factor of determining the product cost. Sometimes, total air freight cost is the twice of
invoice values of a product. When a process involves shipment of goods from multiple sending
points to multiple receiving points, and a new location is to be added to the system, the
company should undertake a separate analysis of transportation. The traffic manager involves
finding the lowest-cost plan for distributing stocks of goods or supplies from multiple origins to
multiple destinations that demand the goods. The transportation model can be used to
compare location alternatives in terms of their impact on the total distribution costs for a
system. The procedure involves working through a separate problem for each location being
considered and then comparing the resulting total costs.

===The End===

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