OPERATIONS MANAGEMENT

QUESTIONS

a)  With examples, discuss on the impact of job design on employee performance in manufacturing sectors in Tanzania

b)  Discuss on the effects of job design and ergonomics considerations on employee performance in service sectors in Tanzania

SOLUTIONS

Discussion on the Influences of Job Design on Employee Performances in in Tanzania

Introduction

Job design are among tools adopted in modern management strategies as it has been contributing in the influence of values added to employee within workplace by incorporating organization goals and individual factors toward common objective achievement (Engidaw, 2021). Since improving performance of the workforces become priority of the organization management to develop tools and strategies that enhance employee motivation, productivities, and performance (Tao, Lee, Sun, & Li, 2022), the management forced to change the strategic focus to incorporate more tools which provide opportunities for employee to maximize their productivities by participating to the organization core function which results to the development new skills and knowledge necessary for improving performances. The performance of business operation are depended on the contribution of human capital toward effectively performance of their function since employee are considered as heartbeat of organization, performance of human capital contributed by working environment that influenced by job design (Malkanthi & Ali, 2016).

For better control and manage of competitive advantages in dynamic marketing environment companies shifted on leveraging its workforces as competitive strategies, job design are considered as techniques for improving performance of workforces through driving satisfaction promotion factors which influence employee motivation (Lawalson, 2021). The objective of job design are to ensure workforces and company objective are integrated to ensure achievement of those goals through weaponizing employees with necessary skills knowledge, exposures, and task competence to enable then execute effectively and efficiency those complexity assigned task and enable performance of organization (Munyiri, 2014).

In a global context where business environment are dynamic and intensified by the high level of competition while skilled and experienced employee are scarce and highly demanded it forced organization to in developing countries such as USE, Italy, France, German, and others to made huge investment on organization job design units which would be tasked with conceptualizing company demand with skills and knowledge of human capital under company to ensure effectively adaptation of significant task (Sunday & Paul, 2015).

The job design define requirement of the job, means of the task developed, also the job design provide procedure to perform those task, the job design develop the relationship between task and business goals to ensure all employee are executing those task with aim to meet core business goals (Munyiri, 2014). Job design are the systematical framework that that integrate organization factors and employee factors to form the relationship between nature and scope of the task toward quality of workforces under the organization. The good job design structure are the one that does not exclude human factors in construction of task and responsibilities since those ergonomics factors play huge influence on motivation and productivities of employee in workplaces.

The human factors like physical capacity and psychological aspect have critical contribution to the employee behavior within workplace (Ravindran, 2019), which are necessary for management to integrate ergonomics to the job design framework when formulating task or rearranging work environment.

Problem Statement

Increase in job boredom due to anatomy and low motivated employee which lead to high turnover rate that contributed by internal and external factors of organization like unfavorable working environment, lack of motivation factors or others related to managerial (Hom, Allen, & Griffeth, 2019), those factors contributed to poor performance or organization as well as poor performances of employees In controlling effect related to anatomy factors that results to more damage to the organization performances, job design was utilized by most companies as tools for motivating employees and boost their performances.

Job design have several tools and techniques that have contribution to the performance of human capital toward efficiently and effectively performing their task with focus to meet company objective, selection of right tools accordingly to the capacity of human capital has been another challenges that faced by modern human resource managers (Tsuma, 2015). Thus, this study prepared to discuss different concept and tools of job design and ergonomic and their contribution toward employee performance in manufacturing sector and services sector respectively.

Study Objectives and Questions

The general objective of the paper are to discuss concept of job design in relation to its influence on employees performances, the specific objectives are the following.

·         Discuss the impact of job design on employee performances in manufacturing sector in Tanzania

·         Discussing the effect of job design and ergonomic consideration on employee performance in services sector in Tanzania

Research Questions

·         How does job design impact employee performances in manufacturing sector in Tanzania?

·         What are effect of job design and ergonomic consideration on employee performance in services sector in Tanzania?

Presentation of Keyword

This section describe key term as used in the study, there three major concepts used in the paper which are job design, employee performance, and ergonomic concept.

Concept of Job Design

Job design are structured system that describe landscape which arrange responsibilities to human resources of the company, the job design define the relationship between employee and job contents designed which provide procedure and meaning of the task provided (Etim, 2016). There five major components within job design that aimed in specifying job constituent to employees which are job specialization, job expansion, motivations factors, team design, and psychological factors.

Job specialization. This considered as process whereby employees within manufacturing sectors or services based organization acquire or develop skills tailored to specific task necessary in achieving business objectives, the specialization are performed through development of program that aimed to excel skills and knowledge in selected task (Stevenson, 2012). The specialization are considered key factors in boosting employees performances in manufacturing industry which results in increasing effectively and efficiency execution of assigned task and lead to productivities for example in manufacturing sector employee can specialize into assembly lines, machinery operation, or processing of raw input while in services based sector employees can specialize in marketing, sales, accounting sector and others (Dorling, 2018).

Job expansion. One of common components of job design are expansion that involve diversifying task performed within organization through assigning variety of task to employee across similar working environment which add more responsibilities (Van Vulpen, 2022), this influence job design as company evaluate related task that can be integrated to employee responsibilities in order to increase productivities for instance within manufacturing industry employees can operate machines and also assigned to handle warehouse or store keeper to be tasked with selling responsibilities and in services industry finance officers in bank can be assigned to perform bank taller task (Stevenson, 2012).

Motivations factors. The engagement of employee within work environment are key aspect to the company as it improve productivity and influence goal achievement, the job design focused on enabling integration of several working environment factors that influence employee morale to raise and being motivated with aim to increase productivity (Liu, Wang, & Zhang, 2022)

Team design. The objectives of manufacturing companies to increase productivity and gain competitive advantages as well as increase customer orientation factors, for those goals being achieved most or organization restructured their job design framework basis to non-routine design that based team (Stevenson, 2012), the job designed to empower self-directed team which assign more responsibilities and task to group with mutual objectives and autonomy to make decision based on assigned task.

Psychological factors. As one of components within job design are consideration of psychological requirement of employee within working environment, due to attitude and behavior differences most of employee have distinct characteristics that influence on decision making. Thus the job design should focus on employee’s individual factors contribution which aim to promote skills variation which enable employee to exploit individual skills and talent possessed also to define nature of job that allow employees to understand job identity from initial stage to final stages, also the job design should include autonomy factors that allow creativity and independents with framework that define job significant and feedback structure explained contribution to the performance of individual (Stevenson, 2012).

There several theories that establish the relationship of different job aspect such as Taylorrism, job characteristics approach, and others

Taylorrism

The theory developed in 1910’s by Winslow, Frederick Taylor after postindustrial era which increased the need of specialization for speeding production to cover the market demand. Taylor introduce systematic management approach which breakdown complexity task into simple task to increase performance, the assumption was to define each work with the procedure for implementation, allocate right labor toward selected job, improve quality of labor by offer training, and provide assistance in performing those task (Gobena, 2020).

Job characteristic Model

The model developed in 1976 by Hackman and Oldham that describe influence of the assigned task in promoting motivation on employees in organization, the model based on assumption of enriching job within organization to prevent monotonous and boredom within workplace through diversification of job responsibilities. The model developed five factors that provide direction for effectively job design, those element are skills variety, task Identity, Task significance, autonomy, and feedback.

 

Source: (Sunday & Paul, 2015)

Skills variety describe diversifying employee engagement to wider range of activities to develop more skills, task identity are developing competent to employee to handle task from start to the end, task significant considered as adding meaning to the employees through increase responsibility. Autonomy advocate freedom to the employee to execute responsibilities based on his own structured framework that aligned with business objective, and feedback are means of communication that create interaction between employee and management which develop positive relationship that lead to motivation and performance.

From above components and present job design mode, the paper present four tools that used in job design which are job rotation, Job enrichment, and job enragement, job simplification.

Source: (Kalpana, 2022)

Concept of Ergonomic

Ergonomics tools for job design that incorporate human factors in workplaces by consider capabilities and physical limitation of employees, the aim are to maximize relationship and interaction between workplace and employee which boost efficiency and performance (Heizer, Render, & Munson, 2016), the ergonomic are consideration of designing working places to ensure it reduce discomfort within workplaces which involve arrangement of workstation to enable reduction of musculoskeletal disorder (MSDS) and promote productivity within organization (Garg, Garg, & Dutta, 2016). Ergonomics have three categories which are main focus on designing job in services sectors, those are physical ergonomics, cognitive ergonomics, and organizational ergonomics.

Source: (Christy & Duraisamy, 2020)

Physical ergonomics. These are ergonomics that explain interaction of human bodies with task designed in workplace that executed in regular basis which include furniture arrangement, and overall setup of workplace (Christy & Duraisamy, 2020).

Cognitive ergonomics. These are ergonomic that deals with mental reasoning and processing like human perception toward exposed environment and other factors that are interactive within workplace (Christy & Duraisamy, 2020).

Organizational ergonomics. This are ergonomics that based on managerial framework that link all function within organization through policies, regulatory structure, communication mean, and  other managerial strategies that aimed into enhancement of health relationships within workplace that create supportive structure for performance development (Smith, 2017).

Working environment have included different aspect which include furniture arrangement, equipment, interior design and lighting amount, destruction level, atmosphere  temperature and other elements that included workspaces. Those elements are contributing to the performance of employee in workplace

Sources: (Samson, Waiganjo, & Koima, 2015)

Methodology used in Paper

The objective of the study was to discuss job design and its influence on employee performances in workplace, thus the variable measures was job design as independent variable and employee performance as independent variable. Due to nature of the study descriptive statistics approach was adopted from the study of (Ravindran, 2019), cross-sectional survey design was used that establish relationship between different scenarios by comparison without depending on control group as benchmark for measuring outcome (Chineme, Ogochukwa, & Onwumelu, 2017).

Both primary data that was gathered through interview from randomly organization engaged in manufacturing and services sector in study premises and secondary data that was collected though review of published data from library and internet sources. Phenomenography tools was used for data interpretations and analysis of qualitative research design to measure the relationship between job design and employees performance in Tanzania.

Results Presentation

After discussion on the key concept related with the study, the results of the study that guided by two study question was presented in this section. The research question was;

·         How does job design impact employee performances in manufacturing sector in Tanzania?

·         What are effect of job design and ergonomic consideration on employee performance in services sector in Tanzania?

Job design impact employee performances in manufacturing sector

The first objectives was to discuss the impact of job design impact employee performances in manufacturing sector. As presented in introduction section job design are structured system that describe landscape which arrange responsibilities to human resources of the company by defining relationship between employee and job contents designed which provide procedure and meaning of the task provided, the paper discussed four tools that used in job design as adopted from study of (Sunday & Paul, 2015) which are job rotation, Job enrichment, and job enragement, job simplification.

Job rotation

This are predetermined structure that allow employees to shift between different task and roles within same ecosystem in organization with purpose to improve skills set and knowledge (Munyiri, 2014), the job rotation involve systematic movement of employee from one job specialization to another within similar department in to control monotonous and boredom due to performing similar task repeatedly (Tantua & Nwimana, 2020). Through rotation it enable organization to prepare skills profiles of employee and design job accordingly to showcased skills that best fit to the individual. The job rotation have impact on employee performance as through this mode employee gain new skills and develop flexibilities which keep the occupied and reduce boredom which lead to motivation and hence productivities performance improved for example when salesman allocated to customers care he will gain commutation skills that utilized in sales. But when the job rotation are not well managed it can discourage employee and lead to poor performances.

Job enlargement

The job design technique that increase responsibilities horizontally to the employee within the company by considered those task fallen in same business line (Gobena, 2020), the tools which enable adding more scope toward the responsibilities of employees by increasing volume of the task performed. This design are considered as internal training as employee offered opportunities to improve his skills by provided with additional task in presented responsibilities. For example plan technician added more responsibilities to supervise production process that trigger motivation behavior which lead performances

Job enrichment

Job enrichment. The study found out job enrichment have positive contribution to the employee’s performances in manufacturing sector as it add more complex task vertically that offer more authority to the employees and challenged responsibilities which involve making own decision on performing those task. This increase responsibilities that promote engagement which lead to increase in performance due to development of new advanced skills.

Job simplification

The simplification based on breaking complex task simple task and assign to an individual for the purpose of improving concentration, this job design was established by Frederick Taylor who assumed simplification of job task to enable employee have concentration on simple task that promote productivities, also through job simplifications organization promoted employee performances and also organization performance include saving additional cost that would have incurred by the firm. But when are less attention paid simplification have negative impact as it influence boredom from performing less challenge function which affect performance.

The above results was supported by several literature bodies such as study of (Mac-Ozigbo & Daniel, 2020) aimed to assess effect of job enrichment on employee’s performance, the results indicated that there positive relation between job training offered, job depth provided, and challenge task to the employee performance. Also the study conducted by (Dosso, 2021) that measured the effect of job design on employee performance: the mediating role of job satisfaction, the results showed that there significant positive relationship between job design that used job rotation tools and employees satisfaction that results to the effectively improvement of employee performance. And also study of (Ali & Ziar-ur-Rehman, 2014) that measured the impact of job design on employee performances in Pakistan through adaptation of job characteristic model and the results show that there positive relationship between job design and employee performance.

Effect of Job Design and Ergonomic Consideration on Employee

The second objective was concerned with interaction of job design and ergonomic and their effect on employee performance. Working environment have included different aspect which include furniture arrangement, equipment, interior design and lighting amount, destruction level, atmosphere  temperature and other elements that included workspaces. Those elements are contributing to the performance of employee in workplace

Furniture arrangement

The study found out there positive relationship between employees performances and working environment in services sector where employee spend all times performing desk function that basically uses furniture as tools and platform to organize their function, when to furniture arranged in a manner that provide comforts in workplace it possibly to influence performances of employee as they motivated with work areas but when the furniture affect health of employees such as causes pain it will discourage engagement that results to poor performance of employees.

Aptitude consideration

The purpose of ergonomic are to promote consideration of human factors in job design which influence creating job that match abilities of individuals, when the job designed fail to match aptitude of employees to designed job it affect performance of employee , this means the designing should not base only on skills and knowledge but also the willingness.

Employee’s skill level

The performance of employee are contributed by matching skills level to the designed job which will increase engagement and productivities as the employee aware of the activities performing, but when there les relationship between employees skills and knowledge to job design it will cause burn-out and tiresome to the employee which have negative effect to the performance (Smith, 2017).

Environmental Consideration

The working environment include different aspect that interact with employee within workplace which include office décor, distraction level, furniture, artificial odors, and others within workplace since environment factors have effect on performance of employees within executing their activities either directly interaction or in indirectly form. Environment of the organization are included psychological and physical aspect which have to be incorporated on job design.

The above results supported by study of (Bhatia & Arora, 2021) that aimed to measure the effect of Job design and ergonomic on Employee Performance in Indian automobiles, the results show that there statistical relationship between job design and ergonomics toward employee performances. Also by (Garg, Garg, & Dutta, 2016) to assess the impact of office ergonomics on business performance, the outcome showed that ergonomic deficiencies was contribution to poor performances of organization due to outdated furniture and poor arrangement, also low quality decoration was lowering employee morale as lack of ergonomics factors was affected working health and safety.

Conclusion

The result indicated that job design have positive contribution to the performance of employee which are become significant tools for managers to implements in order to increase quality and value of significant resources, also from the results the study it was found out there positive relationship between ergonomic consideration and employee performance that means managers should invest more on work environment to incorporate human factors when prepare job design or rearranging task to include workplace setup.

References

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Bhatia, S., & Arora, A. (2021). A Study on Effect of Job Design and Ergonomics on Employee Performances in Indian Automotive Sector. Metamorphosis: A Journal of Management Research; Volume 20, Issue 2, 65-76.

Chineme, O., Ogochukwa, N., & Onwumelu, N. (2017). Effect of Organizational Design on Employee Performance in the Manufacturing Industry . International Journal of Business Systems and Economics; Volume 11, Issue 1, 12-39.

Christy, V., & Duraisamy, S. (2020). Ergonomic and Employee Psychological Well Being . International Journal of Management, Volume 11 Issue 03, 435-438.

Dorling, S. (2018, October ). What is Job Specialization . Retrieved from bizfluent.com: https://bizfluent.com/info-8083551-job-specialization.html

Dosso, H. (2021). Effect of Job Design on Employee Performance: The Mediating Role of Job Satisfaction. The Case of Joshua Multi-Purpose Coopeartive Limited Liability Society and Awach Saving and Credit Promary Cooperative Socieyt Ltd . Addis Ababa, Ethiopia : Addis Ababa University.

Engidaw, A. (2021). The Effect of Motivation on Employee Engagement in Public Sectors: In the Case of north Wollo Zone. Journal of Innovation and Entrepreneurship; Volume 10 No. 43, 1-15.

Etim, P. F. (2016). Effect of Job Design and Staff Training on Employee Performance in Nigeria . Gboko, Nigeria : Fidei polytechnic.

Garg, A., Garg, V., & Dutta, P. (2016). Impact of office Ergonomics on Buisiness Performance - ( In Special Reference to Noida Region). International Journal of Advanced and Innovative Research; Volume 5, Issue 4, 88-101.

Gobena, S. (2020). Effect of Job Design on Employee Performance: A Case of Dashen Brewery S.C Debre Berhan. Debre Berhan, Ethiopia: Debre Berhan University.

Heizer, J., Render, B., & Munson, C. (2016). Operations Management Sustainability and Supply Chain Management 12th Edition . Pearson : Boston, US.

Hom, P. W., Allen, D. G., & Griffeth, R. W. (2019). Employee Retention and Turnover: Why employees stay or leave. Oxfordshire, England: Routledge.

Kalpana, R. (2022, June ). Job Design Methods: Rotation, Simplification, Enlargement and Enrichment of Jobs. Retrieved from Businessmanagementideas.com: https://www.businessmanagementideas.com/job/job-design-methods-rotation-simplification-enlargement-and-enrichment-of-jobs/2517

Liu, Y., Wang, S., & Zhang, J. (2022). When and How Job Design Influence Work Motivation: A Self- Determination Theory Approach. Sage Journals, Psychological Reposts: Volume 125 Issue 3, 1573-1600.

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Malkanthi, S., & Ali, H. M. (2016). Impact of Job Design on Employees’ Performance in People’s Banks of Ampara District. 5th Annual International Research Conference (pp. 269-275). Sri Lanka: University of Sri Lanka.

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VUNJABEI LTD Supply Chain Management Case

Introduction

The objective of any profit oriented business entities are to maximize income values from activities performed in industry, for those objectives to be achieved different function are integrated together with aim to improve company utilization of resources and meet its business goals (Walley, 2017). The key function of business activities are business operation function that concerned with several function such business planning, organizing of business process within company, product design, and management of resources, the core function of business operation are to manage the balance of business supply and market demand of the company (Kumar & Suresh, 2008). Since the operation management concerned with utilization of resources from input used to distribution of output to industry, the significant function within operation management and organization overall are supply chain that responsible for moving of material and services within business process and operation.

Overview of Supply Chain

Supply chain are considered as effectively procedure of moving production resources and material from sourcing points into production process points and from production sourcing to market demand, the supply chain include all players from manufacturer, transporters, suppliers to distribution channel and customers with inclusion of all function and components involved in production and distribution (Sarkar, 2017). Due to technological advancement and increase of globalization era that have impacted business operation, as in current business mode for organization to have successful business goal it should not rely only to individual performance through performing all activities and function from recruitment of raw material to distribution. In modern competition era companies are competing through their supply chain that integrate different task, function and players in mutual business goals (Data, Das, & Bagchi, 2021).

The supply background can be traced back to early 19^th century in 1900’s where local companies such as newspaper producers where supplying newspapers in local market restricted to local areas and region coverage, also witnessed during Rome eras as they travel across the global and created different infrastructure that supported business transportation and management of military affair that need organization structure that will allow movement of material from one units to another in different function performed (Monczka, Trent , & Handfield , 2002). One of notable revolution on concept of supply chain were during 1920’s after industrial revolution that lead to mass production, the increase in production volume resulted to increase in need of raw material as well need for different distribution channel of produced end products (Bohnsasack, Kolk, & Pinkse, 2014). The raise of globalization and technologies in 1970’s lead to another evolution within business operation as organization employed automation machinery in production process which facilitate an increase in market competition among manufacturer companies and enforced them to adopt different business operation model that aimed to integrate internal strength of the company with external influence of the market that means company objective changes and incorporated capacity of the company in production and supply with market demand with production process requirement of raw material and other necessary resources (Bohnsasack, Kolk, & Pinkse, 2014).

Supply chain network structure

Since the business process involve integration of different activities performed in business course that involve transformation of raw material to final products through series of activities such as recruitment of raw material from sourcing to production sites and distributing those end products to final consumers that performed in supply chain, supply chain management (SCM) involve controlling and managing of supply chain function that performed with the aim to maximize profits and customers satisfaction and lead to gaining market competitive advantages (Handfield, 2021). The supply chain management have three common component which are first to develop supply chain network structure, second to develop and manage supply chain business process, and third to manage supply chain activities performed within the supply chain network (Lambert & Cooper, 2000).

As one of component of SCM, supply chain network structure is defined as the alignment of different organization that have separate operation procedures and process through supply chain system where they interconnected with the mutual objectives of adding values to the customers (Van Donk, 2018). The supply chain structure is synchronization of complex network structure of different function from several organization that interrelated to the production process from acquisition of raw material and logistic activities suppliers to production units and distribution channels of the company (Wei, Wang, & Chen, 2015).

The supply chain network structure integrate the roles played by different companies within supply chain from suppliers, transporters manufacturer and distributors that have added values to the customers satisfaction, those companies that integrated are grouped in primary function group and supportive companies (Li, Ji, Sun, & Lee, 2009).  There three supply chain structure scopes which are first horizontal structure, second vertical structure, and third is horizontal position structure as described below.

Horizontal structure supply chain network

This are supply structure whereby focal company where several primary companies and supportive companies integrated into supply chain system of the focal company, the structure can have complex long tier that expanded from business operation to raw material sources or the company can have narrow supply system, within horizontal supply chain each tier had own business model that can compete directly or in direct with focus company in supply chain (Marker, 2017). For the case of VUNJABEI LTD there is two tier lines as it distribute products to tier 1 customers included three wholesalers and independent manufacturing firm.

Vertical Structure supply chain

This are supply chain integration structure that involve numbers of suppliers and customers that integrated within the supply chain system of the company, the number of primary and supportive companies integrated within each tier of the company. The company can incorporate wider structure that integrate many customers and suppliers or narrow structure as it incorporate fewer suppliers in each tier (Alor-Hernandez, Aguilar-Laserre, Robles, & Sanchez-Ramirez, 2011). The VUNJABEI LTD have this supply chain structure as it had wider number of suppliers in tier 1  and tier 2 as it have more than 100 suppliers and sub supplier, also in wider structure of customers in tier two with more than 500 retailers

Horizontal position supply chain structure

The structure that describe the position focal company to the accessibilities of raw material as well as the relation existed between Manufacturer Company to the final consumers and customer of products (Marker, 2017). The VUNJABEI LTD do not have horizontal position structure since all resources are from supplier and all products are distributed through channels.

Those three supply chain structure can be explained in the following structure that and framework bellow.

Sources: (Alor-Hernandez, Aguilar-Laserre, Robles, & Sanchez-Ramirez, 2011).

From the above structure that adopted from (Alor-Hernandez, Et al , 2011), the VUNJABEI LTD have two distribution channels that are used for reaching customers which are Wholesalers for electronic products and manufacturing firm which considered as tier 1 customers of VUNJABEI LTD and tier 2 are retails that receive products from Wholesalers and also manufacturing firm also falls in tier 1 customer of VUNJABEI LTD. The VUNJABEI LTD received raw material and other raw material necessary for production purpose from more than 100 suppliers and sub suppliers which grouped in tier 1 for those suppliers and tier 2 for sub suppliers who independently can compete in supply chain through distributing products directly to customer’s tier 1.

Supply chain management processes

As discussed above in introduction, suply chain managenet concerned with management of activities performed in supply chain which invlove recruitment of raw materials from sources to manufacturing process and provide distributun channel th ensure those products are reaching customers. The supply chain management fucntion are supply planning, products planning, planning of market demand, planning of business operaiton and sales (S&OP), and management of all fucntion performed. Supply chain management process is the integration of those fucntion within the supply chain of the company with the aim of maximixing custoemers satisfaction (Pradabwong, Braziotis, Tannock, & Pawar, 2017). Initial supply chain process started business process that tranform raw materials into final products and end with production of those products to cosnumers. For the supply chain structure of VUNJABEI LTD  where there producers and customer, the following are basic supply chain management in structure.

Supply management process

This are process that involve recruitment of raw materials from different suppliers for production purpose (Pradabwong, Braziotis, Tannock, & Pawar, 2017). In the above supply chain structure of VUNJABEI the first process of planning were already made as the company have started production, the process that adopted in structure were based on supply management of production resources. VUNJABEI were planned on the suppliers and sub suppliers as indicated in the case study that VUNJABEI have more than 100 suppliers and indicated major six suppliers for required raw material and production resources.

Manufacturing and production process

The supply chain management process that involve planning for production and executive those plan into action for transforming raw material to the intended products (Anaplan, 2021). In the supply chain structure of VUNJABEI this process were performed to ensure products are reaching customer Tier 1 and Tier 2 with intended orders placed as for wholesaler only standardized products were distributed and for independent form were customized components sold.

Sales and operation planning process

This process concerned with market demand as it aimed to the determine key players demand and influence factors that will drive sales volume of the company, the process are significant in planning for business decision on focus areas (Anaplan, 2021). VUNJABEI were distribution products to Wholesalers that have large retailer which ensue sales volume of the company, thus more resources were located in procurement of standardized part for increasing standardized electronic products.

Analyses, discussion and proposition of Suppy chain strategy and purchase relationahip

In the present business environment that faced with competitive environment and raise of customer demand while product market life span are falling which forced companies to change business operation models to control those changes and reduce production cost through cutting down some function supply chain by outsourcing business activities. The suppler relationship management are focused on integration of supplier’s activities and manufacturer process in ensuring maximum utilization of resources (Gerhad & Ghoshal, 2004). Supply chain management strategy are considered as framework for production process that ensure customers satisfaction are meet, in case of VUNJABEI LTD that have more than 100 suppliers and sub supplier.

From study of (Apeji & F.T, 2020) that conducted an assessment of operational Visibility in sustainability supply chain as results of complexity and pressure of controlling production effect and its impact results from supply chain system to environment. The study analyzed each suppliers within the supply chain to measure their contribution to the supply chain system. This study adopted in analyses VUNJABEI LTD supplier strategy through Entropy Model theory.

Entropy Model theory

Since the supply chain are involve complexity integration of several suppliers that have contributed in the provision of raw material necessary for production, this complexity can results into challenges in production process when company depend heavily in individual suppliers and then short fallen occurred. The entropy model theory provide company measure of uncertainty occurrence and optimize adaptation of measurement strategy that can be used for controlling any downfall of suppliers (Kriheli & Levner, 2018)

Since more than 70% of revenue were directed to purchase made to suppliers and sub supplier where there great variation between the contribution of those suppliers and sub suppliers. The VUNJABEI LTD depend sole to Vendor 6 as 70% of chemical products come from single vendor 6 also for spare parties of factor machinery and customized IT products that come from Vendor 4 and Vendor 6 respectively were each own 70% and 60% of VUNJABEI LTD market share purchases while also VUNJA BEI made purchase to sub suppliers.

Supplier Strategy and Purchasing Relationship

As indicated that more than 70% of revenue were spend in purchase of raw material and other production process, VUNJABEI can control complexity of Supplier chain through adopting  Kraljic Matrix model that aim to maximize supply chain system by effectively control of cost incurred while maximizing output (Manutan, 2021). The matrix grouped purchase of raw material into four groups which are Non- critical purchase, Leverage purchase, bottleneck purchase, and strategic purchase

Sources: (Hawkins, Gravier, & Powley, 2011).

The Non-critical purchase

These are products that had less impact business activities as they have purchase in low amount and have high competitors offered this kind of resources. In the VUNJABEI LTD purchase resources products from vendor 1 and Vendor 2 which are Standardized spare parties that had 5%, customized products components with 10%, and raw material with 7% purchase are considered as non-critical purchase.

From above analysis the suppler strategy that can be used by VUNJABEI LTD for this kind of products are products volume control since they contributed low income and have low supply risk, standardized products monitoring in which VUJABEI LTD can minimize any negative contribution of these products and ensure it only have positive influence from supply chain.

Leverage production resources item

These are production item that significant contribution to the company profits with low supply risk that allow company to have purchase options within the supply chain (Manutan, 2021). For VUNJABEI LTD the item that fallen in this categories are Customized IT products with 60% of market share from three supplier in which VUNJABEI purchased volume amounted 150 million and also customized products components are fallen within leverage purchase as t have 10% market share with option of 5 vendors which have low risk of supplier. Those have great profits margin as they are distributed to manufacturing companies directly.

Thus, VUNJABEI LTD can adopt full purchase control strategies through using substitute products and suppliers within the supply chain.

Bottleneck production items

These are those raw material and production resources that have low substitute suppliers within supply chain, this products have contributed low profits margin to the company but have high supplier risk due to limited market share within the supply (Manutan, 2021).

Spare parts for factory machinery and Chemicals with only two suppliers in supply chain taking 70% of purchase made by VUNJABEI LTD respectively, thus this products should be purchased in high volume to reduce risk of uncertainty due to its limited substitute.

The proposed strategy for this kind of products purchase are creating good relationship with suppliers, to purchase in high volumes that guarantee availability of resources, and also to create control mechanism for those limited vendors.

Strategic purchase of production resources

This are core raw material and production item that purchased by the manufacturer, those items with high supplier risk and limited number of substitute within the supply chain of the company which have high profits contribution as well as high risk of supply (Hawkins, Gravier, & Powley, 2011).

In case of VUNJABEI LTD, the Chemical products, Spare parts for factory machinery, and Customized IT products are considered within strategic purchase as they rare and less number of distribution channel from supplier. Thus the purchase strategy relation that can be adopted were to form partnership with those vendors.

Form the above discussion, the VUNJABEI can adopt three supplier relationship strategy and purchase relationship within supply chain as described below.

Exploitation strategy. This for those product that have limited Vendor within the supply chain VUNJABEI can use long range contacts from those two vendors to ensure stable supply of Chemical products and Spare parts for factory machinery. Diversity strategy. For those items with low supplier risk the company can diversifies purchase to substitute supplier that offer good prices and distribution channels with low running cost. Also balance strategy, this are integration of exploitation strategy and diversity strategy to increase efficiency in supply chain system.

Analysis of distribution channels

After the production process performed by the company and produced final products for customer uses, the company will have to choose methods that can be used to move those products to the market. Distribution channel are considered the company strategy used for making products produced available to the market for consumers utilization (Freedman, 2022), the manufacturing companies have four distribution channels option on disposal that are direct sales wholesales, intermediaries channels, and dual distribution channel.

Direct sales to customer. These are strategies that adopted by the company whereby they distribute manufacturing products directly to ultimate customers, the company can uses these distribution channel for products that sustain long shelf-life with diversity products units.

Intermediate distribution channel. The distribution channel that involve uses other firm as sales points whereby the manufacturer use agency as medium for moving products from industry to market, the intermediaries channel provide distribution ground and connection between manufacturer and consumers.

Wholesales channels. Thus are distribution channel whereby manufacturer distribute in bulk quantity products to resellers, this channel are more significant to manufacturer since they sell direct to customers but its risk to wholesalers as it might cost them if those products fall short of market demand.

Dual distribution channel. This are distribution channel adopted by the manufacturing company through selecting diversity distribution channels that integrated to ensure products are reaching intended customers.

VUNJABEI LTD Distribution Channels

As presented in VUNJABEI LTD data presented which show that the company two distribution channels which are wholesalers and manufacturing company, it show that Vunjabei Ltd only use two type of distribution channel that are direct sales in which the company sale direct to ultimate customer which is Independent manufacturing firm and wholesale distribution channel by selling to three wholesalers.

Since the those three wholesalers are distributing to more than 500 retailers that directly distribute to ultimate consumers, VUNJABEI LTD can manage the relationship with those Wholesaler to increase retailers numbers to ensure timeframe are minimized for the products to reach customers and increase production volume of the company. As those retailer are large in number that cannot be controlled by the company, VUNJABEI can let wholesalers control distribution channel and the company can focus on managing direct sales to the independents manufacturing firms in order to increase movement of the products.

 

 

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