Hudson Jeweler’s Operations Management

Topic: Management
Words: 1754 Pages: 6


Operations management (OM) is the activity charged with overseeing the production and service delivery process. OM entails planning, arranging, coordinating, and managing all the necessary resources to generate a company’s products or services (Benjaafar and Hu, 2020). This report examines Hudson Jeweler’s production and OM concepts highlighting the issues and challenges in the case. Hudson Jeweler’s management recognizes that the objective of OM is to provide value to a product and service, fostering a solid and long-lasting connection or link with the consumer. In business customer relations, quality services can be offered via a productive and healthy relationship between marketing, production, and customer relations personnel (Terwiesch et al.,2020). Customer relations personnel serve as the company’s face-to-face representatives and give insight into consumers’ actual product requirements.


This report is based on a case study of Hudson Jewelers, which has established itself as one of the most reputable jewelry retailers in the Metro East. As the jeweler of choice for several generations of families, the workers are pleased to provide spectacular diamonds, exquisite fine jewelry, elegant timepieces, unique presents, creative design work, and experienced jewelry repairs. The case highlights that Hudson Jewelers is devoted to making every client feel at home as an individualized service and a vast selection of jewelry styles. Similarly, as a family-owned enterprise, Hudson Jewelers places the utmost importance on maintaining the integrity of the firm and its employees. Hudson Jewelers ensures that every customer must have an exceptional experience that guarantees customer confidence. These principles have helped the business sustain a profitable company with a predictable revenue stream.

Relevant Issues

In the case study, technological penetration of the business sector is one of the variables contributing to Hudson Jewelers’ expansion. Hudson Jeweler invested in computer-aided design (CAD) that helped improve customer experience. Since the 1970s, computer-aided design (CAD), computer-aided engineering (CAE), and computer-aided-manufacturing (CAM) have enabled firms to design and create a broad range of products (Ezell et al., 2018). Today, many businesses have fully linked their design and manufacturing processes into what we commonly refer to as computer-integrated systems (Babich and Hilary 2020). With the introduction of technology into the company, the modeling simplicity and form adoption according to new customer-centric designs have been vastly enhanced. In the case of Hudson Jewelers, CAD technology has found its way into the online and in-store creation of personalized jewelry.

Relevant Challenges

However, the firm faces several issues that directly impact its internal and external environments. Due to the importance of its goods, for instance, the company confronts security challenges. In low season, the typical store inventory is between $1 and $3 million, whereas, in peak season, it ranges from $3 to $6 million. Due to special client orders, jewelry inventory may reach $15 to $20 million for short stretches during certain weeks of peak tourist season. In this instance, Mr Hudson would want extra jewelry display space to showcase more jewels at reasonable prices. High insurance premiums are contingent on shop security measures and inventory quantities. Each floor-mounted fireproof safe at the business weighs more than 8,000 pounds. Various security monitors are directly linked to a 24-hour security contractor. This security burden compels the administration to recognize the business model.

The Global Diamond Value Chain

Similarly, there are risks associated with the store’s core commodity, diamonds. Exploration is one of the primary steps in the diamond value chain. According to Hudson Jewelers, it typically takes between 18 and 36 months for a diamond to reach a retail shop from the moment it is mined. The supply chain is worldwide since no one country or firm is responsible for bringing a diamond to its ultimate destination. The case study notes that approximately fifty per cent of raw diamonds are used in industrial applications, including oil and gas drilling equipment and metal cutting machines. Exploration, extraction, processing, and trade are among the primary steps of the worldwide diamond value chain. Such an overall risk increases the chances of errors within the supply chain.

Exploration and the Dominance of Russia

The extensive value chain presents obstacles, such as surveillance, that allow unscrupulous dealers to exploit vulnerabilities. As stated in the lawsuit, traditionally, a significant portion of the diamond business has included African nations and the exploitation of indigenous people (Fessehaie and Rustomjee 2018, p.401). DeBeers, with a 37 per cent market share, is one of the largest companies specializing in mineral extraction, production, and sales (Girard and Zabsonré 2021, p.197). DeBeers is a South African firm with mines and operations in South Africa, Tanzania, and Namibia. It is headquartered in Kimberley, South Africa. ALROSA operates as a Russian government enterprise with a roughly 30 per cent market share and Angolan mines and infrastructure. Due to Russia’s prominence in the gem value chain, the instability of such failing economies might result in supply chain shocks that negatively influence the business’s stability.

The Emergence of Price-Controlling Monopolies

The highly regulated supply chains raise the likelihood of price restrictions by those at the pyramid’s apex. Current industry trends include the convergence of cutting and polishing trade hubs into a diamond hub in locations such as New York, Tel Aviv, Antwerp, Dubai, and Mumbai, according to the case study (Schulte and Paris, 2020). The primary issue is that long-term deals guarantee both price and demand predictability, predictable sellers and purchasers, and substantial sales volumes (Jabbour et al., 2020). A second strategy for limiting collection in the global diamond market is for significant producers to sell stones to their site holders exclusively (Feng and Ye, 2021). However, new sales channels using internet capabilities, such as online auctions and virtual sales platforms, are developing. Face-to-face talks, take-it-or-leave-it internet offers at predetermined pricing, live online sales with many bargaining sessions, and time-limited internet sales are all types of sales.

The Probability of Low-Quality Diamond

Similarly, lengthy value chains expose the diamond market to the introduction of counterfeit goods. Hudson Jewelers recognizes the complexity of customer and trading centre purchasing choices involving diamonds, in which purchasers must determine if the diamond is synthetic. In a single examination of 1,000 stones conducted by the International Gemological Institute, more than half were discovered to be synthetic diamonds (Breeding et al., 2018). In addition, the synthetic diamonds were designed with defects that made them look like natural stones. Only skilled gemologists with specialized equipment can distinguish between natural and artificial stones. Industry-related groups, governments, and businesses implementing quality and environmental sustainability standards, trade restrictions, and legislation have partly addressed today’s market challenges (Barretiri et al., 2021). The institutions have created certification processes to guarantee no conflict or blood diamonds enter their supply chain. However, there is the worry that the traceability of diamonds along the product lifecycle is very weak.

Question 1

The customer benefit package for Hudson Jeweler
Figure 1: The customer benefit package for Hudson Jeweler

Hudson Jewelers’ Strategy

For Hudson Jeweler, the order qualifiers included diamond Jewellery that may need to meet customer specifications. The preliminary order winners were clients with made-up minds of design finds and financial capacity to pay. The rank orders are based on costs with competitive priorities for more expensive jewelry. Hudson Jeweler’s management emphasizes gaining a competitive advantage through trust and customer satisfaction. The employees at Hudson Jeweler recognize that customer satisfaction is a crucial technique for guaranteeing that loyal consumers help companies make more money.

In any business, measuring customer satisfaction may help a company evaluate what works effectively with its goods, services, and internal procedures and what should be improved or altered. Acquiring new consumers requires significant time, money, and resources (Feng and Shanthikumar, 2018). A firm may believe that after they have completed a sale, their connection with the consumer is useless, yet, it is quicker and less expensive to target more sales from an existing customer than to target new customers (Lu and Shen 2021). The objective of Hudson jewelers is to acquire new clients without disregarding current ones.

Question 2

According to the Hudson Jeweler case, the attributes of “value” when buying and co-designing a $50,000 wedding ring are in the expression of undying love. The ease of getting the most desired Jewellery design defines the buying experience for the customer. In the Jewellery industry, technology has helped improve the buyer’s expertise (Diwas 2020). At Hudson Jeweler, the consumer is guided by a CAD professional through a computer-led, step-by-step procedure to co-design the jewelry. As with Mr Hudson and Ms Lilly, the digitally made ring may be turned and put on a virtual male or female hand once it has been produced. The ring’s design was archived for future reference and was followed by other design alternatives.

In this case, the technology enables side-by-side display on the high-definition television screen, enhancing the client experience. The technology allows for various ring designs that may be sent to relatives and friends throughout the globe. Once the ring design is approved at Hudson Jewelers, the client submits a deposit before the order is sent to the manufacturer, providing a feeling of commitment between both sides. The technology facilitates agreement between the client and the shop owner (Cachon et al.,2020). The personalized experience in design and technical support from the Hudson Jeweler teams helped improve the customers’ experience.

Question 3

Precedence Diagram for Hudson Jewelers derived from Figure 3
Figure 2: Precedence Diagram for Hudson Jewelers derived from Figure 3

The tasks associated with each workstation are defined in Figure 3 with a total time of 811 minutes with delays of 1.7 of total time. The assembly-line efficiency is 13.79. rate delays with a functional efficiency of 86%. The efficiency time is derived from the task design based on relationships and dependencies. The assembly-line balance solution is good owing to the above-average efficiency in timelines.


OM is vital to a company’s success because it facilitates the proper direction, control, and supervision of commodities, services, and people. OM is applicable across all sectors and industries. In the case study, OM emerges as an essential management role, including managing human resources, machinery, technology, and data required for producing products and services. As established, every organization’s critical part is optimizing the business operations. Regardless of a company’s size, the requirement for competent management is evident. As with Hudson Jewelers’ procedures, management enables the business to plan capacity scheduling, productivity analysis, and the ideal customer experience.


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Process Work Activities and Flowchart
Figure 3:Process Work Activities and Flowchart
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