Production and Operations Management - Item 2

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1 (a . Clearly , human beings have been involved in the management and organization of big projects for quite some long time . This has recently become a common feature of the modern , globalize generation . This has significantly led to the temporality of the originally permanent organizational structures lending them disposable . This has also led to the emergence of the novel forms of linkages between people nationalities and organizations

However , these projects usually encounter problems which greatly contribute to time and cost

overruns as well the decline in quality . The main question is how the cultural differences as well as the institutional differences affect this process of global projects and their outcomes

Human beings interact in a social environment which is made of formal and informal values , norms , rules , codes of conduct , laws and regulations . There are also different policies and polities together with a variety of organizations . These are usually termed as culture and institution . The main aim of these is to reduce ambiguity and uncertainty in behaviors of human beings such as decision making and interaction

In large global projects , there are many factors that affect them in one way or another . These include client related , management related , and project context factors . The cultural and institutional differences are the basis for all these factors . Therefore , it clearly seen that the cultural and institutional differences have an impact and observable implications on the global projects . This will depend on the situation where the particular project is found

For instant , in an Information and Technology industry , a project to come up with a more sophisticated technology can be affected by the presence of poor management whose basis is the cultural differences

b . The Bullwhip Effect refers to a phenomenon that is observable in forecast-ridden channels used in distribution . It is also known as Whiplash Effect or Forrester Effect . This is mainly in place since the demand of the customers is not always stable . Therefore , there is need for a business to forecast the demand so that it can perfectly balance its inventory and the other resources . These forecasts are usually based on statistics reason as to why they are never perfect

For instant , if the demand is high , there will be a significant increase in s made that will mean that the business should increase its inventory . When the demand falls , the participants will increase their s hence the business will need to reduce their inventory

This can also be caused by the behavioral and operational factors . The behavioral causes include the misuse of the main stock policies , the misinterpretation of the entire feedback and time delays , the panic reactions that are caused by the demands that are not met and the perceived risk of the player 's main rationality . The operational causes are those that depend on demand processing such as the errors due to forecast and the adjustment of the inventory depending on the demand observation . The variation due to lead time...