Operations Management: Principles, Trade-offs, and Strategies
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Homework Assignment
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This assignment delves into various aspects of operations management, starting with an examination of Fredrick Taylor's principles and their application in organizations, particularly restaurants, highlighting both advantages and disadvantages. It further discusses the concept of trade-offs in operatio...
OPERATIONS MANAGEMENT 1
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OPERATIONS MANAGEMENT 2
PRACTICE QUESTIONS
1)
Fredrick Taylor’s principle is applied to the allocation of tasks within the
organisation, decision making and setting the responsibilities and authority of the leaders and
subordinates. The Taylor principle advocates for proper allocation of tasks among the
employees and managers. Therefore, the principle assists the supervisors to allocate duties to
workers depending on the qualifications. For example, the waiter serves food and drinks to
the customers, the chefs do the cooking while the cleaners ensure that the restaurant is tidy.
Additionally, the management can come up with the best methods to accomplish tasks and
the necessary job schedules. The establishment happens when the manager checks the
shortest time for each activity. Additionally, the management also uses scientific methods to
allocate tasks to the various employees. For example, the persons who cook properly are
allocated food duties. The Taylor’s principle also applies to the restaurant when recruiting
and training the right expertise for performing tasks. The principle helps management come
up with the best job description, which is used to attract employees with the right set of skills
for the task. Therefore, the restaurant chooses the best employees through interviews. The
training also happens to instil the workers with the necessary skills. Additionally, the
principles also help in controlling the workers by creating the necessary span of control. The
span of control helps to allocate the necessary number of employees to a manager, which
allows easy control and the employees understand the manager to respond. The disadvantage
of Taylor’s theory is the reduction of employee creativity and ability. The disadvantage arises
from the fact that the theory dictates fixed methods of performing tasks, which the employees
cannot go against. Thus, reducing creativity and decision making in the operations (Nigel
Slack, 2013). Additional disadvantages include the high capital required to establish the
system. The Taylor’s theory requires the training of the employees, developing work designs,
PRACTICE QUESTIONS
1)
Fredrick Taylor’s principle is applied to the allocation of tasks within the
organisation, decision making and setting the responsibilities and authority of the leaders and
subordinates. The Taylor principle advocates for proper allocation of tasks among the
employees and managers. Therefore, the principle assists the supervisors to allocate duties to
workers depending on the qualifications. For example, the waiter serves food and drinks to
the customers, the chefs do the cooking while the cleaners ensure that the restaurant is tidy.
Additionally, the management can come up with the best methods to accomplish tasks and
the necessary job schedules. The establishment happens when the manager checks the
shortest time for each activity. Additionally, the management also uses scientific methods to
allocate tasks to the various employees. For example, the persons who cook properly are
allocated food duties. The Taylor’s principle also applies to the restaurant when recruiting
and training the right expertise for performing tasks. The principle helps management come
up with the best job description, which is used to attract employees with the right set of skills
for the task. Therefore, the restaurant chooses the best employees through interviews. The
training also happens to instil the workers with the necessary skills. Additionally, the
principles also help in controlling the workers by creating the necessary span of control. The
span of control helps to allocate the necessary number of employees to a manager, which
allows easy control and the employees understand the manager to respond. The disadvantage
of Taylor’s theory is the reduction of employee creativity and ability. The disadvantage arises
from the fact that the theory dictates fixed methods of performing tasks, which the employees
cannot go against. Thus, reducing creativity and decision making in the operations (Nigel
Slack, 2013). Additional disadvantages include the high capital required to establish the
system. The Taylor’s theory requires the training of the employees, developing work designs,
OPERATIONS MANAGEMENT 3
standardisation of work and a planning department. The requirements dig deep into the funds
of the restaurant, which reduces the profit margins. Moreover, the system reduces the
employee motivation due to the reduction of freedom and pride in the job. The employees
lack freedom and pride since the accomplishment of tasks follows strictly set standards,
which the employees must follow. Therefore, the employees lack the opportunity for
creativity and decision-making. Application of the theory at the restaurant could also lead to
stress among the management and employees. The management is stressed due to the need to
control everything in the workplace to ensure that work is done according to the set
standards. Likewise, the employees also feel stressed due to the need to accomplish tasks
according to strictly set guidelines (Giovani J.C, 2010).
2)
Trade-offs refer to the enhancement of a performance objective by trading-off
developments in some objectives for a decrease in the performance of other objectives. The
face-offs exist due to resource constraints. The trade-offs relate to the performance objectives
of operations, which include the speed of product development and introduction to the market
before competitors. The other objective is flexibility, which refers to the ability to change
product specifications according to the changes in the market. Additionally, the cost is
another objective, which refers to the value of the products in the market and finally the
quality of a product refers to the product meeting consumer expectations. A high street
fashion store faces product face-offs of price, quality and amount of inventory held. The face-
offs are influenced by the market and consumer behaviour, which leads to the choice of
various face-offs to attract customers and reduce the costs of operations. For example, the
store faces the decision of increasing the sale volumes by reducing the prices of the products
standardisation of work and a planning department. The requirements dig deep into the funds
of the restaurant, which reduces the profit margins. Moreover, the system reduces the
employee motivation due to the reduction of freedom and pride in the job. The employees
lack freedom and pride since the accomplishment of tasks follows strictly set standards,
which the employees must follow. Therefore, the employees lack the opportunity for
creativity and decision-making. Application of the theory at the restaurant could also lead to
stress among the management and employees. The management is stressed due to the need to
control everything in the workplace to ensure that work is done according to the set
standards. Likewise, the employees also feel stressed due to the need to accomplish tasks
according to strictly set guidelines (Giovani J.C, 2010).
2)
Trade-offs refer to the enhancement of a performance objective by trading-off
developments in some objectives for a decrease in the performance of other objectives. The
face-offs exist due to resource constraints. The trade-offs relate to the performance objectives
of operations, which include the speed of product development and introduction to the market
before competitors. The other objective is flexibility, which refers to the ability to change
product specifications according to the changes in the market. Additionally, the cost is
another objective, which refers to the value of the products in the market and finally the
quality of a product refers to the product meeting consumer expectations. A high street
fashion store faces product face-offs of price, quality and amount of inventory held. The face-
offs are influenced by the market and consumer behaviour, which leads to the choice of
various face-offs to attract customers and reduce the costs of operations. For example, the
store faces the decision of increasing the sale volumes by reducing the prices of the products
OPERATIONS MANAGEMENT 4
to attract the customers. Therefore, the store attracts most customers who buy more units,
which increases the sales volumes and profits for the store. However, the store faces the issue
of increased inventory costs due to the increased clothes inventory to satisfy the added
demand. Therefore, the store is faced by the choice of increasing the prices to reduce the unit
sales volumes held as inventory. Moreover, the store has the face-off of quality and price of
the products sold to customers. The store could reduce the quality of products and sell at low
prices to the customers. However, the store could increase the quality of products and sell at
very high prices to the customers (Nigel Slack, 2013).
Polar diagram for the high-end store
The high-end store could reduce the quality of the products by mass production and reducing
customisation, which in turn reduces the cost of the products. The mass production reduces
the store’s flexibility since the company does not produce products according to the
specifications of a customer. Therefore, the company reduces the dependability of the
products by the customers. However, the reduction in customisation and quality increases the
speed at which the clothes reach the market (Gjoko Stamenkov, 2015).
to attract the customers. Therefore, the store attracts most customers who buy more units,
which increases the sales volumes and profits for the store. However, the store faces the issue
of increased inventory costs due to the increased clothes inventory to satisfy the added
demand. Therefore, the store is faced by the choice of increasing the prices to reduce the unit
sales volumes held as inventory. Moreover, the store has the face-off of quality and price of
the products sold to customers. The store could reduce the quality of products and sell at low
prices to the customers. However, the store could increase the quality of products and sell at
very high prices to the customers (Nigel Slack, 2013).
Polar diagram for the high-end store
The high-end store could reduce the quality of the products by mass production and reducing
customisation, which in turn reduces the cost of the products. The mass production reduces
the store’s flexibility since the company does not produce products according to the
specifications of a customer. Therefore, the company reduces the dependability of the
products by the customers. However, the reduction in customisation and quality increases the
speed at which the clothes reach the market (Gjoko Stamenkov, 2015).
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OPERATIONS MANAGEMENT 5
3)
The manufacturing company should increase the speed of production and introduction
of bikes to the market. Increased speed of production will ensure that the company satisfies
the demand for bikes faster than the competing firms. The high speed of satisfying demand
increases the customers for the products and builds loyalty among the customers. The
company should adopt strategies such as simultaneous engineering, which allows the
company to manufacture the various bike parts at the same time. The manufacturing of parts
at the same time reduces the time taken for production since the parts do not require separate
manufacturing, which consumes more manufacturing time. Simultaneous engineering utilises
integrated design teams, which consist of persons from various departments who assist in
developing the various parts at the same time. The manufacturing should also use a
modularised approach, which calls for the separate development of parts for use in different
sections of the bikes. For example, the company could manufacture the various gear, brake
levers independently, and then later integrate the levers to the final product. Moreover, the
company should consider variability in the production of bikes to ensure the satisfaction of
different customer needs. The variability allows the company to produce customised bicycles
that suit the unique needs of the market, which results in an increased market share by
creating new markets and cultivating strong customer loyalty. The bicycle company should
focus on the quality performance objective to ensure that the products meet the customer
expectation. The meeting of customer expectations results in satisfaction among customers,
therefore, winning a larger market share compared to the competitors. Additionally, the bike
company should come up with a price that is affordable to all the customers to avoid losing
3)
The manufacturing company should increase the speed of production and introduction
of bikes to the market. Increased speed of production will ensure that the company satisfies
the demand for bikes faster than the competing firms. The high speed of satisfying demand
increases the customers for the products and builds loyalty among the customers. The
company should adopt strategies such as simultaneous engineering, which allows the
company to manufacture the various bike parts at the same time. The manufacturing of parts
at the same time reduces the time taken for production since the parts do not require separate
manufacturing, which consumes more manufacturing time. Simultaneous engineering utilises
integrated design teams, which consist of persons from various departments who assist in
developing the various parts at the same time. The manufacturing should also use a
modularised approach, which calls for the separate development of parts for use in different
sections of the bikes. For example, the company could manufacture the various gear, brake
levers independently, and then later integrate the levers to the final product. Moreover, the
company should consider variability in the production of bikes to ensure the satisfaction of
different customer needs. The variability allows the company to produce customised bicycles
that suit the unique needs of the market, which results in an increased market share by
creating new markets and cultivating strong customer loyalty. The bicycle company should
focus on the quality performance objective to ensure that the products meet the customer
expectation. The meeting of customer expectations results in satisfaction among customers,
therefore, winning a larger market share compared to the competitors. Additionally, the bike
company should come up with a price that is affordable to all the customers to avoid losing
OPERATIONS MANAGEMENT 6
customers who fear high costs. The costs should suit all the customers in the market to ensure
a large market share. (Nigel Slack, 2013).
4)
A service blueprint refers to the operation plan, which guides the manner of service
provision at an organisation or a company (Terje Slatten, 2009). The blueprint gives physical
proof of staff activities, support systems and the resources needed to provide the services. All
organisations have a blueprint that guides the various personnel on the standards to follow
when providing services. The management and employees should ensure strict adherence to
the standards to allow customer satisfaction. The organisations should develop a service
provision blueprint to ensure that the service provision standards portray the organisation
culture and objectives. Additionally, the blueprint states the methods of evaluating whether
the service provision is in accordance with the set goals. The evaluation methods indicate
whether the service provision follows the set guidelines and gives remedies to use when the
organisation does not adhere to the set standards. For example, the service blueprint of a
hospital front office operation includes the exchange with patients seeking medical assistance
at the medical centre. The medical centre equips the front office with receptionists who take
customer requests and give appointments to the specific doctors who deal with the problem
faced by the patients. The front office acts as the point of contact with the customers and calls
for the high appeal to the customer. For example, creating an attractive appearance and
maintaining a proper ambience for the customers to ensure that the customers feel
comfortable before receiving the necessary services. The hospital could create (Nigel Slack,
2013)
Moreover, the back office of the medical centre involves the doctors and nurses who
deal with the specific illnesses suffered by the patients. The back office also has equipment
such as beds, medicines and machines to detect the diseases such the X-ray machines and the
customers who fear high costs. The costs should suit all the customers in the market to ensure
a large market share. (Nigel Slack, 2013).
4)
A service blueprint refers to the operation plan, which guides the manner of service
provision at an organisation or a company (Terje Slatten, 2009). The blueprint gives physical
proof of staff activities, support systems and the resources needed to provide the services. All
organisations have a blueprint that guides the various personnel on the standards to follow
when providing services. The management and employees should ensure strict adherence to
the standards to allow customer satisfaction. The organisations should develop a service
provision blueprint to ensure that the service provision standards portray the organisation
culture and objectives. Additionally, the blueprint states the methods of evaluating whether
the service provision is in accordance with the set goals. The evaluation methods indicate
whether the service provision follows the set guidelines and gives remedies to use when the
organisation does not adhere to the set standards. For example, the service blueprint of a
hospital front office operation includes the exchange with patients seeking medical assistance
at the medical centre. The medical centre equips the front office with receptionists who take
customer requests and give appointments to the specific doctors who deal with the problem
faced by the patients. The front office acts as the point of contact with the customers and calls
for the high appeal to the customer. For example, creating an attractive appearance and
maintaining a proper ambience for the customers to ensure that the customers feel
comfortable before receiving the necessary services. The hospital could create (Nigel Slack,
2013)
Moreover, the back office of the medical centre involves the doctors and nurses who
deal with the specific illnesses suffered by the patients. The back office also has equipment
such as beds, medicines and machines to detect the diseases such the X-ray machines and the
OPERATIONS MANAGEMENT 7
MRI scanners. Other support activities include the cleaning of the in-patients and the hospital
floors and clothing (Nigel Slack, 2013). The back-office provides services that ensure the
success of the organisation by bringing together the inputs for service provision. For
example, the procurement team connects with suppliers to ensure that the right materials are
available to fulfil the patient demands.
MRI scanners. Other support activities include the cleaning of the in-patients and the hospital
floors and clothing (Nigel Slack, 2013). The back-office provides services that ensure the
success of the organisation by bringing together the inputs for service provision. For
example, the procurement team connects with suppliers to ensure that the right materials are
available to fulfil the patient demands.
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OPERATIONS MANAGEMENT 8
Service blueprint
Physical evidence
Patient’s action
Front office
Backstage
Support processes
Patient books
appointment on the
phone
Welcoming a patient at
the hospital
Welcoming at the
reception
Confirm
attendance
Go to the
reception
Go to the
medical
centre
Generate
number to
the call
centre
Welcome the
patient to
reception
Seat patients
at the
waiting
Generating
advert message Make welcome
cards and
posters
Set up lounge
chairs
Conduct the market plan Recruit receptionists Purchase chairs and flowers
Service blueprint
Physical evidence
Patient’s action
Front office
Backstage
Support processes
Patient books
appointment on the
phone
Welcoming a patient at
the hospital
Welcoming at the
reception
Confirm
attendance
Go to the
reception
Go to the
medical
centre
Generate
number to
the call
centre
Welcome the
patient to
reception
Seat patients
at the
waiting
Generating
advert message Make welcome
cards and
posters
Set up lounge
chairs
Conduct the market plan Recruit receptionists Purchase chairs and flowers
OPERATIONS MANAGEMENT 9
5)
The make to order approach refers to a production system where products are
developed according to the tastes and preferences of the customers. The customers specify
the exact needs of the product and the manufacturer has to adhere to the instructions. For
example, the Hong Kong customers visit the tailor shops and specify the type of suit needed.
The tailor takes the customer measurement, material requirements and the needed time for
delivery. Therefore, the tailor does not make suits in masses and put up for sale to customers.
The tailor only makes suits that align with the specific customer conditions. The make to
order approach is applicable to manufacturers dealing with low production, which allows
more room for product customisation. The make to order has various advantages, which
include the provision of customer choice since. The customer choice is brought about by the
ability to customise the products. Therefore, the customers have the ability to dictate how the
product should be made to suit the customer necessities. Additionally, the make to order
allows flexibility in operations by allowing the manufacturer to tailor products according to
the needs of the customers. The other advantage includes lower costs of holding stock by the
manufacturer since the make to order approach allows holding lesser inventory since the
manufacturer cannot produce in large masses (Nigel Slack, 2013). Additionally, the make to
order allows specialisation at work, which means that each employee works on a certain unit
to perfection. Specialisation gives the employees additional pride on the work due to the
feeling of participation towards the final output.moreover, the make to order approach allows
the firm to make inventory orders efficiently since less material is required to satisfy
customer orders (Kettner, 2013).
5)
The make to order approach refers to a production system where products are
developed according to the tastes and preferences of the customers. The customers specify
the exact needs of the product and the manufacturer has to adhere to the instructions. For
example, the Hong Kong customers visit the tailor shops and specify the type of suit needed.
The tailor takes the customer measurement, material requirements and the needed time for
delivery. Therefore, the tailor does not make suits in masses and put up for sale to customers.
The tailor only makes suits that align with the specific customer conditions. The make to
order approach is applicable to manufacturers dealing with low production, which allows
more room for product customisation. The make to order has various advantages, which
include the provision of customer choice since. The customer choice is brought about by the
ability to customise the products. Therefore, the customers have the ability to dictate how the
product should be made to suit the customer necessities. Additionally, the make to order
allows flexibility in operations by allowing the manufacturer to tailor products according to
the needs of the customers. The other advantage includes lower costs of holding stock by the
manufacturer since the make to order approach allows holding lesser inventory since the
manufacturer cannot produce in large masses (Nigel Slack, 2013). Additionally, the make to
order allows specialisation at work, which means that each employee works on a certain unit
to perfection. Specialisation gives the employees additional pride on the work due to the
feeling of participation towards the final output.moreover, the make to order approach allows
the firm to make inventory orders efficiently since less material is required to satisfy
customer orders (Kettner, 2013).
OPERATIONS MANAGEMENT 10
The disadvantages suffered by the approach include slow speed of production due to
the focus and concentration on the customer details on the products, which calls for changes
and adjustments in production thus taking much time in production. The slow production
results in customers not relying on the promised lead times since the products take longer to
produce than anticipated. The production proves inefficient due to the constant changes in
the system, which renders the fixed production system useless due to the failure to produce
the customised goods without alteration (Nigel Slack, 2013). Additional, shortcomings
include the low supply of inventory, which leads to losses. The tailors lose sale opportunities
to customers who prefer visiting the shop and buy a suit immediately without placing orders.
Additionally, the long lead times for the suit mending discourages customers with short
deadlines to wear the suits. Moreover, the lead times slows the cash flows since the
customers pay for the suits after collecting the completed suit. The shop runs without the
customer’s money leading to a low cash flow at the shop. Additionally, the customer could
opt not to pick the order, which leads to the shop selling the product at low prices to mitigate
loss (Giovani J.C, 2010).
6)
The economic order quantity of the games produced by Toyz-R-Uz retail stores is 500
units. The EOQ system of inventory management is not appropriate due to the uncertainties
in the demand for the video games. The approach assumes a fixed amount of annual demand
for the games, which is 10400 units. However, the retail store cannot certainly set a fixed
number due to the changes in demand for the games during the year. Most of the demand
occurs during festive seasons, which results in higher demand than the anticipated. However,
the demand could also reduce during a year, which makes the EOQ approach inappropriate.
A more necessary approach could be the cyclical review system, which aligns with the
The disadvantages suffered by the approach include slow speed of production due to
the focus and concentration on the customer details on the products, which calls for changes
and adjustments in production thus taking much time in production. The slow production
results in customers not relying on the promised lead times since the products take longer to
produce than anticipated. The production proves inefficient due to the constant changes in
the system, which renders the fixed production system useless due to the failure to produce
the customised goods without alteration (Nigel Slack, 2013). Additional, shortcomings
include the low supply of inventory, which leads to losses. The tailors lose sale opportunities
to customers who prefer visiting the shop and buy a suit immediately without placing orders.
Additionally, the long lead times for the suit mending discourages customers with short
deadlines to wear the suits. Moreover, the lead times slows the cash flows since the
customers pay for the suits after collecting the completed suit. The shop runs without the
customer’s money leading to a low cash flow at the shop. Additionally, the customer could
opt not to pick the order, which leads to the shop selling the product at low prices to mitigate
loss (Giovani J.C, 2010).
6)
The economic order quantity of the games produced by Toyz-R-Uz retail stores is 500
units. The EOQ system of inventory management is not appropriate due to the uncertainties
in the demand for the video games. The approach assumes a fixed amount of annual demand
for the games, which is 10400 units. However, the retail store cannot certainly set a fixed
number due to the changes in demand for the games during the year. Most of the demand
occurs during festive seasons, which results in higher demand than the anticipated. However,
the demand could also reduce during a year, which makes the EOQ approach inappropriate.
A more necessary approach could be the cyclical review system, which aligns with the
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OPERATIONS MANAGEMENT 11
changes in the demand for the products. The re-order systems or the cyclical system calls for
the ordering of products at fixed regular intervals, which happen after inspection of the
inventory to identify the shortages and amounts to order. The re-order system establishes the
best times to order products and considers the lead-times for the products (Nigel Slack,
2013).
7)
The Goldratt’s theory of constraints views the system as being prevented from
achieving more of the set goals by a number of constraints. The systems contain at least one
constraint, which hinders the achievement of total success by a process. Therefore, the
outpatient centre should focus on eliminating the failure by using the Goldratt’s five-step
approach. The approach first requires that the clinic identify the bottlenecks causing long wait
times. The bottlenecks could result from poor and slow service equipment, less experienced
employees who serve the customers slowly and a policy that requires long procedures before
acquiring the necessary services. After identifying the bottlenecks, the clinic should come up
with methods of reducing the bottlenecks such as bringing experienced staff who serve the
customers in lesser time and better equipment that enhance the speed of services. The clinic
could lack adequate medical staff with the necessary experience to diagnose the illnesses in
short times to reduce time spent in the laboratories and in doctor rooms. Additionally, the
equipment such as x-ray machines could produce results slowly, which translates to the
patients waiting in long queues for the results (Nigel Slack, 2013). The clinic should then
review the system to identify whether all activities address the constraint. The focus should
be towards ensuring that all activities at the clinic result in quick customer services. The other
step includes elevating the constraint that is in the event of the continuous existence of the
constraint, further actions should be taken to remove the constraint. The clinic should focus
changes in the demand for the products. The re-order systems or the cyclical system calls for
the ordering of products at fixed regular intervals, which happen after inspection of the
inventory to identify the shortages and amounts to order. The re-order system establishes the
best times to order products and considers the lead-times for the products (Nigel Slack,
2013).
7)
The Goldratt’s theory of constraints views the system as being prevented from
achieving more of the set goals by a number of constraints. The systems contain at least one
constraint, which hinders the achievement of total success by a process. Therefore, the
outpatient centre should focus on eliminating the failure by using the Goldratt’s five-step
approach. The approach first requires that the clinic identify the bottlenecks causing long wait
times. The bottlenecks could result from poor and slow service equipment, less experienced
employees who serve the customers slowly and a policy that requires long procedures before
acquiring the necessary services. After identifying the bottlenecks, the clinic should come up
with methods of reducing the bottlenecks such as bringing experienced staff who serve the
customers in lesser time and better equipment that enhance the speed of services. The clinic
could lack adequate medical staff with the necessary experience to diagnose the illnesses in
short times to reduce time spent in the laboratories and in doctor rooms. Additionally, the
equipment such as x-ray machines could produce results slowly, which translates to the
patients waiting in long queues for the results (Nigel Slack, 2013). The clinic should then
review the system to identify whether all activities address the constraint. The focus should
be towards ensuring that all activities at the clinic result in quick customer services. The other
step includes elevating the constraint that is in the event of the continuous existence of the
constraint, further actions should be taken to remove the constraint. The clinic should focus
OPERATIONS MANAGEMENT 12
on the stage until all constraints are eliminated. For example, the clinic could buy extra
equipment to relive the workload on the existing or employ more persons to reduce pressure
on the available employees. The final step is repeating the procedures of continuous
improvement to ensure that the system has no problems and that all constraints are totally
eradicated (Sieh Lee Mei Ling, 2015).
8)
The statistical process uses the statistical standards and procedures to monitor and
control processes. The method ensures the smooth operation of a system and conformance to
the set standards with less waste as intended. The process is applied where the output can
easily be measured. The bank could apply the SPC to improve the quality of the online and
banking services by measuring factors such as the availability of services, customer use and
the number of errors. The statistical control procedures ensure that the online system
functions as intended by detecting and reducing the errors within the services. For example,
the system could use the cause and effect diagram to identify the various problems facing the
system and the resulting deficiencies on the system. Additionally, the control-charts also help
to reduce errors by showing the upper and lower levels that the system should operate. The
statistical process control identifies and eliminates the problems within a system and assists
the system to rectify problems internally to avoid defects. Moreover, the bank could move to
the six-sigma approach, which advocates for the total elimination of system problems to
eliminate defects in the final output (Nigel Slack, 2013). The bank could also apply the
PDCA cycle, which refers to the plan, do, check and act cycle. The bank could start by
planning the changes to implement to the mobile and online banking system such as reducing
errors of conveying customer orders. The plan could involve developing a system that detects
and corrects errors internally. The next step is the do where the bank implements the system
on the stage until all constraints are eliminated. For example, the clinic could buy extra
equipment to relive the workload on the existing or employ more persons to reduce pressure
on the available employees. The final step is repeating the procedures of continuous
improvement to ensure that the system has no problems and that all constraints are totally
eradicated (Sieh Lee Mei Ling, 2015).
8)
The statistical process uses the statistical standards and procedures to monitor and
control processes. The method ensures the smooth operation of a system and conformance to
the set standards with less waste as intended. The process is applied where the output can
easily be measured. The bank could apply the SPC to improve the quality of the online and
banking services by measuring factors such as the availability of services, customer use and
the number of errors. The statistical control procedures ensure that the online system
functions as intended by detecting and reducing the errors within the services. For example,
the system could use the cause and effect diagram to identify the various problems facing the
system and the resulting deficiencies on the system. Additionally, the control-charts also help
to reduce errors by showing the upper and lower levels that the system should operate. The
statistical process control identifies and eliminates the problems within a system and assists
the system to rectify problems internally to avoid defects. Moreover, the bank could move to
the six-sigma approach, which advocates for the total elimination of system problems to
eliminate defects in the final output (Nigel Slack, 2013). The bank could also apply the
PDCA cycle, which refers to the plan, do, check and act cycle. The bank could start by
planning the changes to implement to the mobile and online banking system such as reducing
errors of conveying customer orders. The plan could involve developing a system that detects
and corrects errors internally. The next step is the do where the bank implements the system
OPERATIONS MANAGEMENT 13
to the operations. After implementation, the bank should check the system to identify whether
the operations run as intended. Finally, the bank should act on the system by correcting errors
that hinder the full operation of the system (Plan-Do-Check-Act (PDCA) Cycle, 2018).
9)
The local dental practice can improve performance using the balanced scorecard,
which focusses on four perspectives of an organisation. The financial perspective refers to the
incomes generated and costs incurred from the operations. The dental centre could check the
profits earned from the patients visiting the hospital. The centre should ensure the collection
of more income from the activities by reducing the costs incurred. The financial perspective
also includes the costs incurred from the daily operations of the centre. The centre should
improve the quality of the services to ensure that more customers visit the centre, which
translates to more income (Giovani J.C, 2010). Moreover, the clinic should introduce a lean
production system to reduce waste, which translates to added profits. The customer
perspective includes factors such as the quality of the dental services received at the centre.
For example, high-quality dental filling materials with no side effects. The customer
perspective also includes the interpersonal relations with the dental centre personnel.
Additionally, another KPI includes the internal business perspective such as the clinic
utilisation rate, which is the rate at which the customers use the dental clinic services within a
given period. The clinic should offer high-quality services to patients to meet the expectations
and satisfy the customers. The satisfied customers refer other persons to visit the clinic thus
increasing the clients. Additionally, the availability of customer support system could
improve the performance of the clinic. The innovation and learning perspective includes
to the operations. After implementation, the bank should check the system to identify whether
the operations run as intended. Finally, the bank should act on the system by correcting errors
that hinder the full operation of the system (Plan-Do-Check-Act (PDCA) Cycle, 2018).
9)
The local dental practice can improve performance using the balanced scorecard,
which focusses on four perspectives of an organisation. The financial perspective refers to the
incomes generated and costs incurred from the operations. The dental centre could check the
profits earned from the patients visiting the hospital. The centre should ensure the collection
of more income from the activities by reducing the costs incurred. The financial perspective
also includes the costs incurred from the daily operations of the centre. The centre should
improve the quality of the services to ensure that more customers visit the centre, which
translates to more income (Giovani J.C, 2010). Moreover, the clinic should introduce a lean
production system to reduce waste, which translates to added profits. The customer
perspective includes factors such as the quality of the dental services received at the centre.
For example, high-quality dental filling materials with no side effects. The customer
perspective also includes the interpersonal relations with the dental centre personnel.
Additionally, another KPI includes the internal business perspective such as the clinic
utilisation rate, which is the rate at which the customers use the dental clinic services within a
given period. The clinic should offer high-quality services to patients to meet the expectations
and satisfy the customers. The satisfied customers refer other persons to visit the clinic thus
increasing the clients. Additionally, the availability of customer support system could
improve the performance of the clinic. The innovation and learning perspective includes
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OPERATIONS MANAGEMENT 14
factors such as technology, training of employees and recruiting highly qualified staff. The
employees should have a system that allows continuous learning and utilisation of new
technology to improve the services. The clinic should ensure that employees attend seminars
and workshops that offer training on better dental care. (Nigel Slack, 2013).
PRACTICE EXAM PAPER 2
SECTION A
1)
Various differences exist between manufacturing and service operations due to the
nature of the activities and results from each of the activities. Manufacturing and service
operation outputs differ in that one cannot store the services but the manufactured goods are
easily stored for future use. Additionally, services are intangible, while manufactured goods
are tangible. However, the major difference between manufacturing and service operations is
the level of customer involvement in each activity.
The manufacturing companies have lesser workers compared to service companies
due to the ability to introduce technology in manufacturing industries. The technology
reduces the amount of labour required. The service sector still requires the human labour to
provide the service, which leads to more employees in the sector (Kettner, 2013). Moreover,
service companies employ more employees due to the need to put up many service points to
serve customers. The service companies open up many service centres to reach a wide market
and beat the competition by having the services near the customers. Therefore, the many
service points require employees to offer services to the customers. The other reason why
factors such as technology, training of employees and recruiting highly qualified staff. The
employees should have a system that allows continuous learning and utilisation of new
technology to improve the services. The clinic should ensure that employees attend seminars
and workshops that offer training on better dental care. (Nigel Slack, 2013).
PRACTICE EXAM PAPER 2
SECTION A
1)
Various differences exist between manufacturing and service operations due to the
nature of the activities and results from each of the activities. Manufacturing and service
operation outputs differ in that one cannot store the services but the manufactured goods are
easily stored for future use. Additionally, services are intangible, while manufactured goods
are tangible. However, the major difference between manufacturing and service operations is
the level of customer involvement in each activity.
The manufacturing companies have lesser workers compared to service companies
due to the ability to introduce technology in manufacturing industries. The technology
reduces the amount of labour required. The service sector still requires the human labour to
provide the service, which leads to more employees in the sector (Kettner, 2013). Moreover,
service companies employ more employees due to the need to put up many service points to
serve customers. The service companies open up many service centres to reach a wide market
and beat the competition by having the services near the customers. Therefore, the many
service points require employees to offer services to the customers. The other reason why
OPERATIONS MANAGEMENT 15
services require more employees than manufacturing is the reliance of service provision on
human labour. Most services are held by a human in the form of skills that machinery cannot
offer. Therefore, more human labour is involved in service provision than in manufacturing.
2)
Modularisation approach can improve the product design of office furniture by
allowing flexibility. Flexibility ensures that the furniture is built according to the customer
requirements and with the ability to change according to the necessary requirements in the
market. The approach allows the product to stand alone as distinct and improvements were
done to each as required. Therefore, the ability to see products as distinct allows the
manufacturer to identify areas of improvement on the design of the product by making the
model simple to understand and reducing complexities that increase the costs of materials.
Additionally, modularisation allows the tailoring of products to meet the needs of various
markets without affecting other products. For example, a seat could be customised to fit a
certain market that is very different from the market that another seat will be made to fit. The
system allows independence in the development of products (Nigel Slack, 2013).
services require more employees than manufacturing is the reliance of service provision on
human labour. Most services are held by a human in the form of skills that machinery cannot
offer. Therefore, more human labour is involved in service provision than in manufacturing.
2)
Modularisation approach can improve the product design of office furniture by
allowing flexibility. Flexibility ensures that the furniture is built according to the customer
requirements and with the ability to change according to the necessary requirements in the
market. The approach allows the product to stand alone as distinct and improvements were
done to each as required. Therefore, the ability to see products as distinct allows the
manufacturer to identify areas of improvement on the design of the product by making the
model simple to understand and reducing complexities that increase the costs of materials.
Additionally, modularisation allows the tailoring of products to meet the needs of various
markets without affecting other products. For example, a seat could be customised to fit a
certain market that is very different from the market that another seat will be made to fit. The
system allows independence in the development of products (Nigel Slack, 2013).
OPERATIONS MANAGEMENT 16
3) Burger bar service blueprint
Customer actions
Front office
Back office
The customer is welcomed at the bar
Customer seats at the bar lounge
Customer gives an order from the
menu on the table
Guide the customer at the entrance Collect the customer’s order
Generate the welcome message
through cards and posters
Make the burger and chips
Customer seats and a waiter takes the
order
3) Burger bar service blueprint
Customer actions
Front office
Back office
The customer is welcomed at the bar
Customer seats at the bar lounge
Customer gives an order from the
menu on the table
Guide the customer at the entrance Collect the customer’s order
Generate the welcome message
through cards and posters
Make the burger and chips
Customer seats and a waiter takes the
order
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OPERATIONS MANAGEMENT 17
Support activities
The customers arrive at the bar and are welcomed by attendants who show the customers
where to seat. The customers’ seat at the bar lounge and make orders of meals available in the
menu. The front office includes of persons such as the waiters who guide the customers at the
entrance and taking the order to the kitchen for preparation. After the meal is prepared, the
waiter brings the food to the customers. The back office also plays a role in generating the
welcome messages at the entrance and positioning to guide the customers. Additionally, the
back office staff prepares the meals such as burgers and chips for the customers. Finally, the
support staff recruit the necessary staff to welcome and guide the customers at the bar.
Additionally, the support staff orders the necessary ingredients to make the chips and burger
such as oil, wheat flour and potatoes.
4)
Assemble to order requires that the customers define the expectations and qualities
needed from the product for the company to start manufacturing. The product follows the
specific requirements laid down by the customers. The dell company tries to exploit the
advantages of make to stock and make to order approaches by ensuring that products reach
the market faster while allowing customisation to customer specifications. The approach is
made successful through the introduction of technology and advanced inventory management
systems that result in cheaper shipping of customised laptops and computers. The advantages
enjoyed by dell company for implementing the assemble to order approach include the ability
Employing the necessary bar
attendants
Ordering ingredients such potatoes,
wheat flour and oil.
Support activities
The customers arrive at the bar and are welcomed by attendants who show the customers
where to seat. The customers’ seat at the bar lounge and make orders of meals available in the
menu. The front office includes of persons such as the waiters who guide the customers at the
entrance and taking the order to the kitchen for preparation. After the meal is prepared, the
waiter brings the food to the customers. The back office also plays a role in generating the
welcome messages at the entrance and positioning to guide the customers. Additionally, the
back office staff prepares the meals such as burgers and chips for the customers. Finally, the
support staff recruit the necessary staff to welcome and guide the customers at the bar.
Additionally, the support staff orders the necessary ingredients to make the chips and burger
such as oil, wheat flour and potatoes.
4)
Assemble to order requires that the customers define the expectations and qualities
needed from the product for the company to start manufacturing. The product follows the
specific requirements laid down by the customers. The dell company tries to exploit the
advantages of make to stock and make to order approaches by ensuring that products reach
the market faster while allowing customisation to customer specifications. The approach is
made successful through the introduction of technology and advanced inventory management
systems that result in cheaper shipping of customised laptops and computers. The advantages
enjoyed by dell company for implementing the assemble to order approach include the ability
Employing the necessary bar
attendants
Ordering ingredients such potatoes,
wheat flour and oil.
OPERATIONS MANAGEMENT 18
to customise goods. The customisation leads to better customer satisfaction since the products
are made according to the needs and expectations of the customers. Therefore, dell has more
satisfied customers as the products meet the specific needs. Additionally, the assemble to
order approach allows Dell computer to deliver products to the market at a faster rate since a
few products are made at a time and delivered to the customer once complete. However, the
assemble to order has some disadvantages like the lack of ready inventory to sell to
customers who intend to buy products quickly and go without waiting for order completion.
Therefore, the company loses the income from the sales to customers with very short
deadlines to use the products. Another disadvantage is that customers have to wait before
getting the products since the company has to fulfil demand in order of priority. Therefore,
customers who arrive late to make orders are made to wait for some period, which increases
the product lead time. (Terje Slatten, 2009).
5)
Services such as education and healthcare pose a challenge when measuring quality
than when measuring the quality of a manufactured product such as motorcar due to various
factors such as the involvement of the customer. During service operations, the customer is
present, which poses a challenge when measuring the quality of services since the same
service has different impacts on various individuals. For example, two customers getting a
haircut from the same barber could have different assessments of the quality of the services.
One customer could term the haircut as of high-quality since the barber did the required style
and made the customer happy during the period with good stories. However, the other
customer could assess the haircut as of low-quality since the client found the barber as too
talkative even if the hairstyle was as required. The quality of phones and motor cars is easy to
to customise goods. The customisation leads to better customer satisfaction since the products
are made according to the needs and expectations of the customers. Therefore, dell has more
satisfied customers as the products meet the specific needs. Additionally, the assemble to
order approach allows Dell computer to deliver products to the market at a faster rate since a
few products are made at a time and delivered to the customer once complete. However, the
assemble to order has some disadvantages like the lack of ready inventory to sell to
customers who intend to buy products quickly and go without waiting for order completion.
Therefore, the company loses the income from the sales to customers with very short
deadlines to use the products. Another disadvantage is that customers have to wait before
getting the products since the company has to fulfil demand in order of priority. Therefore,
customers who arrive late to make orders are made to wait for some period, which increases
the product lead time. (Terje Slatten, 2009).
5)
Services such as education and healthcare pose a challenge when measuring quality
than when measuring the quality of a manufactured product such as motorcar due to various
factors such as the involvement of the customer. During service operations, the customer is
present, which poses a challenge when measuring the quality of services since the same
service has different impacts on various individuals. For example, two customers getting a
haircut from the same barber could have different assessments of the quality of the services.
One customer could term the haircut as of high-quality since the barber did the required style
and made the customer happy during the period with good stories. However, the other
customer could assess the haircut as of low-quality since the client found the barber as too
talkative even if the hairstyle was as required. The quality of phones and motor cars is easy to
OPERATIONS MANAGEMENT 19
measure using the set standards for measurement, which define a high-quality car or phone in
the market (Giovani J.C, 2010).
Case study 1
(a
Jim could utilise the customer perspective approach when coming up with the strategy. The
customer perspective refers to tailoring operations in a manner that results in products that
satisfy the customer demands. The customer perspective shapes the market and castle
windows should adapt to the requirements. For example, Jim should ensure that the
operations are improved to make customer orders quickly to avoid delay since the customers
require short lead times. Jim should negotiate with the marketing department to take fewer
orders that the company can satisfy without stretching the resources. Additionally, castle
could buy more resources such as machinery and inventory to produce more furniture and
satisfy demand. Moreover, Jim could utilise the bottom down strategy formulation method,
which refers to the employees coming up with the requirements for change as opposed to the
senior management giving the orders for a change. The strategy allows the employees to
participate in the decisions and work towards the achievement of goals. Jim could talk to the
employees on how to relieve the pressure in operations and how to satisfy orders within a
short time.
(b
Jim should recommend the modularisation approach in the production of furniture at castle so
that the company can produce goods at high speed, and at low costs with high product
flexibility. Modularisation will allow the castle to satisfy the customer orders within a short
period and reduce wastages through lean productions that avoid wastage. The flexibility
comes in handy due to the various items of furniture made at the shop and the different
customer orders placed. The introduction of modularisation will lead to advantages such as
measure using the set standards for measurement, which define a high-quality car or phone in
the market (Giovani J.C, 2010).
Case study 1
(a
Jim could utilise the customer perspective approach when coming up with the strategy. The
customer perspective refers to tailoring operations in a manner that results in products that
satisfy the customer demands. The customer perspective shapes the market and castle
windows should adapt to the requirements. For example, Jim should ensure that the
operations are improved to make customer orders quickly to avoid delay since the customers
require short lead times. Jim should negotiate with the marketing department to take fewer
orders that the company can satisfy without stretching the resources. Additionally, castle
could buy more resources such as machinery and inventory to produce more furniture and
satisfy demand. Moreover, Jim could utilise the bottom down strategy formulation method,
which refers to the employees coming up with the requirements for change as opposed to the
senior management giving the orders for a change. The strategy allows the employees to
participate in the decisions and work towards the achievement of goals. Jim could talk to the
employees on how to relieve the pressure in operations and how to satisfy orders within a
short time.
(b
Jim should recommend the modularisation approach in the production of furniture at castle so
that the company can produce goods at high speed, and at low costs with high product
flexibility. Modularisation will allow the castle to satisfy the customer orders within a short
period and reduce wastages through lean productions that avoid wastage. The flexibility
comes in handy due to the various items of furniture made at the shop and the different
customer orders placed. The introduction of modularisation will lead to advantages such as
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OPERATIONS MANAGEMENT 20
low cost of production by having products with standard interfaces that can combine in
different ways to form various types of furniture. Additionally, the various interfaces that can
be combined in different ways allow the furniture shop to satisfy customer orders, which
allows quick delivery and low-cost production since the shop does not have to order new
materials for making the furniture.
(c
Jim should introduce the process layout design in the furniture production to allow flexibility
and the ability to produce different products at the shop. Process layout allows production of
goods with high flexibility, which is preferable at castle shop since the customers place
different types of orders of furniture. The process layout allows the rearrangement of
machinery in a way to accommodate the different furniture items being produced. Therefore,
Jim could set the machinery according to the requirements of the customer. The process
design allows flexibility which is necessary for meeting customer demands quickly thus
allowing the shop to avoid failure to meet customer demands. The shop has a problem of
having high demand than the operations can satisfy and the process design will help to solve
the problem by allowing quick production without wasting time on re-arranging the
equipment.
(d
Jim could introduce the just in time system of production, which aims at meeting demand in a
short time without wastage. The system is cost effective and delivers the necessary amount of
parts at the right time, quantity and cost while using the least amount of raw materials.
Therefore, castle furniture will enjoy the benefit of meeting customer demands in a short time
and with the most efficient use of materials without waste.
low cost of production by having products with standard interfaces that can combine in
different ways to form various types of furniture. Additionally, the various interfaces that can
be combined in different ways allow the furniture shop to satisfy customer orders, which
allows quick delivery and low-cost production since the shop does not have to order new
materials for making the furniture.
(c
Jim should introduce the process layout design in the furniture production to allow flexibility
and the ability to produce different products at the shop. Process layout allows production of
goods with high flexibility, which is preferable at castle shop since the customers place
different types of orders of furniture. The process layout allows the rearrangement of
machinery in a way to accommodate the different furniture items being produced. Therefore,
Jim could set the machinery according to the requirements of the customer. The process
design allows flexibility which is necessary for meeting customer demands quickly thus
allowing the shop to avoid failure to meet customer demands. The shop has a problem of
having high demand than the operations can satisfy and the process design will help to solve
the problem by allowing quick production without wasting time on re-arranging the
equipment.
(d
Jim could introduce the just in time system of production, which aims at meeting demand in a
short time without wastage. The system is cost effective and delivers the necessary amount of
parts at the right time, quantity and cost while using the least amount of raw materials.
Therefore, castle furniture will enjoy the benefit of meeting customer demands in a short time
and with the most efficient use of materials without waste.
OPERATIONS MANAGEMENT 21
Additionally, Jim could suggest continuous improvement at the shop to increase performance
through small and more steps of improvement. For example, Jim could simplify the method
used by the sales and marketing department to collect orders from customers and introduce a
system that picks orders that the operations can satisfy. Therefore, castle will have orders that
are easily satisfiable.
Case study 2
a)
Top chef faces various challenges, which hinder smooth operations at the restaurant.
Topgun faces the problem of delays in delivering meals to the customers, which causes
customer complaints. Additionally, the hotel has lost both experienced drivers and chefs,
which results in production bottlenecks since the operations lack the proper expertise to run
the activities smoothly. Moreover, the decisions made by Olivia are causing discomfort
among the employees. The chefs feel that the decision to allow customers to collect the food
at the restaurant reduces the production time leading to pressure. The IT system also fails to
convey the data effectively since errors occur at certain times, which causes mixing up and
confusing of customer orders. The mix up results in customers receiving the wrong orders.
The major problem to solve is that of replacing the departing employees and identifying the
reason for departure to prevent more employees from leaving (Nigel Slack, 2013).
The SWOT analysis assists in identifying the main challenges faced by the
management. The approach of analysis first identifies the strengths of the restaurant, which is
the ability to provide different types of foods. The restaurant allows customers to get delivery
of different types of meals by placing one phone call and the delivery happens within the
shortest time possible (Gjoko Stamenkov, 2015).
Additionally, Jim could suggest continuous improvement at the shop to increase performance
through small and more steps of improvement. For example, Jim could simplify the method
used by the sales and marketing department to collect orders from customers and introduce a
system that picks orders that the operations can satisfy. Therefore, castle will have orders that
are easily satisfiable.
Case study 2
a)
Top chef faces various challenges, which hinder smooth operations at the restaurant.
Topgun faces the problem of delays in delivering meals to the customers, which causes
customer complaints. Additionally, the hotel has lost both experienced drivers and chefs,
which results in production bottlenecks since the operations lack the proper expertise to run
the activities smoothly. Moreover, the decisions made by Olivia are causing discomfort
among the employees. The chefs feel that the decision to allow customers to collect the food
at the restaurant reduces the production time leading to pressure. The IT system also fails to
convey the data effectively since errors occur at certain times, which causes mixing up and
confusing of customer orders. The mix up results in customers receiving the wrong orders.
The major problem to solve is that of replacing the departing employees and identifying the
reason for departure to prevent more employees from leaving (Nigel Slack, 2013).
The SWOT analysis assists in identifying the main challenges faced by the
management. The approach of analysis first identifies the strengths of the restaurant, which is
the ability to provide different types of foods. The restaurant allows customers to get delivery
of different types of meals by placing one phone call and the delivery happens within the
shortest time possible (Gjoko Stamenkov, 2015).
OPERATIONS MANAGEMENT 22
The weaknesses include the loss of an experienced chef and driver. The loss of the
driver has only left one experienced driver, which has resulted in delayed deliveries to the
customers. Additionally, the chef who left has created a heavy workload on the remaining
chef, which has raised the problem of slow customer services. Moreover, the IT system poses
challenges in the transfer of information in the hotel, resulting in errors in customer orders.
The opportunities present to the restaurant is the ability to become the leading food delivery
in Manchester, England. The reason for the opportunity is that no other restaurant has
exploited the idea of delivering different customer orders within a short time (Nigel Slack,
2013).
The threats available to the company is the possibility of the departing employees
starting a competing restaurant. The employees could pose a serious threat to Oliver’s
restaurant. Additionally, the company faces competition from the existing companies who
could also provide the same services to the customers (Kettner, 2013).
The restaurant’s value proposition is the speed of delivery of the meals and processing
of orders to customers who visit the place. The hotel intends to eliminate all kinds of delays
during the delivery of the meals to clients. Additionally, the hotel is dependable to the
customers by providing the variety of meals at all times when required. The other value
proposition is flexibility to ensure that the hotel is able to provide to the emerging and
changing needs of the customers (Nigel Slack, 2013).
The product-process matrix at the restaurant follows the low volume and high variety
nature. The restaurant produces different varieties of meals for the customers at low volumes
since the customers do not order the same meals consistently. The customers place the orders
and determine the meals being prepared at the hotel. The production faces the challenge of
meeting short deadlines set by the customers (Nigel Slack, 2013).
The weaknesses include the loss of an experienced chef and driver. The loss of the
driver has only left one experienced driver, which has resulted in delayed deliveries to the
customers. Additionally, the chef who left has created a heavy workload on the remaining
chef, which has raised the problem of slow customer services. Moreover, the IT system poses
challenges in the transfer of information in the hotel, resulting in errors in customer orders.
The opportunities present to the restaurant is the ability to become the leading food delivery
in Manchester, England. The reason for the opportunity is that no other restaurant has
exploited the idea of delivering different customer orders within a short time (Nigel Slack,
2013).
The threats available to the company is the possibility of the departing employees
starting a competing restaurant. The employees could pose a serious threat to Oliver’s
restaurant. Additionally, the company faces competition from the existing companies who
could also provide the same services to the customers (Kettner, 2013).
The restaurant’s value proposition is the speed of delivery of the meals and processing
of orders to customers who visit the place. The hotel intends to eliminate all kinds of delays
during the delivery of the meals to clients. Additionally, the hotel is dependable to the
customers by providing the variety of meals at all times when required. The other value
proposition is flexibility to ensure that the hotel is able to provide to the emerging and
changing needs of the customers (Nigel Slack, 2013).
The product-process matrix at the restaurant follows the low volume and high variety
nature. The restaurant produces different varieties of meals for the customers at low volumes
since the customers do not order the same meals consistently. The customers place the orders
and determine the meals being prepared at the hotel. The production faces the challenge of
meeting short deadlines set by the customers (Nigel Slack, 2013).
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OPERATIONS MANAGEMENT 23
The restaurant requires trained chefs to prepare meals in the kitchen, experienced call
centre persons to run the call centre and experienced drivers to deliver orders. The restaurant
could acquire the employees through recruitment drives where the best persons are picked.
Moreover, the development could take place through the training of the employees (Nigel
Slack, 2013).
b)
Recruitment of more employees to run the restaurant requires more chefs, drivers and
call centre personnel to meet the increased customer demand. The more employees
will relieve the pressure from the employees already at the organisation leading to
satisfied customers. Moreover, the employees will increase the speed of operations at
the restaurant due to fewer tasks performed by each person. Therefore, the hotel
should ensure the employment of an optimum number of employees to ensure that the
activities are fulfilled in time and with the required expertise. The optimum number of
employees ensures that all the employees have duties to perform without feeling
overloaded with work. Additionally, the optimum number of employees ensure that
the hotel does not have increased salary expenses than necessary, which allows
reduction of costs and increase in the revenues earned by the hotel. (Nigel Slack,
2013).
Improving the IT infrastructure, which has led to a confusion of orders and errors. The
repair should focus on improving the speed of data transmission from customers to
the hotel to avoid delays. Additionally, the system should give correct information
The restaurant requires trained chefs to prepare meals in the kitchen, experienced call
centre persons to run the call centre and experienced drivers to deliver orders. The restaurant
could acquire the employees through recruitment drives where the best persons are picked.
Moreover, the development could take place through the training of the employees (Nigel
Slack, 2013).
b)
Recruitment of more employees to run the restaurant requires more chefs, drivers and
call centre personnel to meet the increased customer demand. The more employees
will relieve the pressure from the employees already at the organisation leading to
satisfied customers. Moreover, the employees will increase the speed of operations at
the restaurant due to fewer tasks performed by each person. Therefore, the hotel
should ensure the employment of an optimum number of employees to ensure that the
activities are fulfilled in time and with the required expertise. The optimum number of
employees ensures that all the employees have duties to perform without feeling
overloaded with work. Additionally, the optimum number of employees ensure that
the hotel does not have increased salary expenses than necessary, which allows
reduction of costs and increase in the revenues earned by the hotel. (Nigel Slack,
2013).
Improving the IT infrastructure, which has led to a confusion of orders and errors. The
repair should focus on improving the speed of data transmission from customers to
the hotel to avoid delays. Additionally, the system should give correct information
OPERATIONS MANAGEMENT 24
and avoid errors on customer orders. Olivia should focus on bringing new computers
that transmit the right information and correct errors made during the entry of orders.
Additionally, the information system should have an internal network that is able to
transmit messages to the required parts of the organisation without failure. The system
should focus on eliminating errors since failure to transmit the right order information
results in a delivery that the customers did not request. The confusion in orders results
in customer frustration and losses since the customers do not pay for the delivery of
wrong meals. Therefore, Olivia should have an information system expert to correct
the system immediately when errors occur and perform repairs in the event of failure.
(Sieh Lee Mei Ling, 2015).
Give more incentives to the employees such as lucrative salaries and other allowances
to reduce employee turnover. The workers require better pay to avoid other
restaurants from poaching the employees. The better pay will ensure that employees
do not leave the restaurant at huge rate thus reducing the pressure on the employees.
Olivia should understand that satisfied employees are motivated to work hard and be
creative in the workplace, which results in better products at the hotel. Additionally,
the salaries should be competitive according to the rates offered at the market since
failure to match the market rates will result in the employees leaving to seek jobs in
other restaurants. (Nigel Slack, 2013).
Allowing synergy when making decisions at the restaurant to ensure that the
employees are satisfied. For example, Olivia made the decision of allowing customers
to pick food at the restaurant, which caused discomfort among the staff. Olivia could
solve the problem by allowing the employees to have a say in the order picking
procedure. The permission to participate in decision-making will help in coming up
with a proper system for collecting orders that do not strain the employees. Olivia
and avoid errors on customer orders. Olivia should focus on bringing new computers
that transmit the right information and correct errors made during the entry of orders.
Additionally, the information system should have an internal network that is able to
transmit messages to the required parts of the organisation without failure. The system
should focus on eliminating errors since failure to transmit the right order information
results in a delivery that the customers did not request. The confusion in orders results
in customer frustration and losses since the customers do not pay for the delivery of
wrong meals. Therefore, Olivia should have an information system expert to correct
the system immediately when errors occur and perform repairs in the event of failure.
(Sieh Lee Mei Ling, 2015).
Give more incentives to the employees such as lucrative salaries and other allowances
to reduce employee turnover. The workers require better pay to avoid other
restaurants from poaching the employees. The better pay will ensure that employees
do not leave the restaurant at huge rate thus reducing the pressure on the employees.
Olivia should understand that satisfied employees are motivated to work hard and be
creative in the workplace, which results in better products at the hotel. Additionally,
the salaries should be competitive according to the rates offered at the market since
failure to match the market rates will result in the employees leaving to seek jobs in
other restaurants. (Nigel Slack, 2013).
Allowing synergy when making decisions at the restaurant to ensure that the
employees are satisfied. For example, Olivia made the decision of allowing customers
to pick food at the restaurant, which caused discomfort among the staff. Olivia could
solve the problem by allowing the employees to have a say in the order picking
procedure. The permission to participate in decision-making will help in coming up
with a proper system for collecting orders that do not strain the employees. Olivia
OPERATIONS MANAGEMENT 25
should hold meetings with the employees and have a discussion forum on the best
ways to serve the customers. The employees feel appreciated during the meetings and
have the morale to continue working hard due to the ability to influence decisions at
the hotel. The discussions create a sense of belonging among the employees, which
translates to the provision of better services, the introduction of new ideas and
avoiding laxity at the place of work. However, Olivia should maintain discipline at
the hotel to avoid too much freedom, which is not healthy for the hotel (Nigel Slack,
2013).
Allowing self-service at the restaurant where the customers come and find buffets
with wide varieties of meals to choose from. The buffets allow flexibility since the
hotel could easily add meals to the selection. Additionally, the buffets relieve the
pressure caused by the customers who visit the hotel and make orders. The buffets
give customers a wide variety of meals to and new meals to sample at the restaurant.
The new meals and recipes keep the customers excited, which increases the customer
loyalty and affection for the restaurant. (Sieh Lee Mei Ling, 2015).
should hold meetings with the employees and have a discussion forum on the best
ways to serve the customers. The employees feel appreciated during the meetings and
have the morale to continue working hard due to the ability to influence decisions at
the hotel. The discussions create a sense of belonging among the employees, which
translates to the provision of better services, the introduction of new ideas and
avoiding laxity at the place of work. However, Olivia should maintain discipline at
the hotel to avoid too much freedom, which is not healthy for the hotel (Nigel Slack,
2013).
Allowing self-service at the restaurant where the customers come and find buffets
with wide varieties of meals to choose from. The buffets allow flexibility since the
hotel could easily add meals to the selection. Additionally, the buffets relieve the
pressure caused by the customers who visit the hotel and make orders. The buffets
give customers a wide variety of meals to and new meals to sample at the restaurant.
The new meals and recipes keep the customers excited, which increases the customer
loyalty and affection for the restaurant. (Sieh Lee Mei Ling, 2015).
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OPERATIONS MANAGEMENT 26
References
Giovani J.C, R. S. (2010). International Journal of Operations. Operations and Production
Management.
Gjoko Stamenkov, Z. D. (2015). A Sustainable E-Service Quality Model. Journal of Service
Theory and Practice, 25(4), 414-442. doi:https://doi.org.10.1108/JSTP-09-2012-0103
Kettner, P. M. (2013). Excellence in Human Service Organization Management. Pearson.
Nigel Slack, A. B.-J. (2013). Operations Management (7 ed.). Madrid, Spain: Pearson.
Retrieved from https://www.pdfdrive.net/operations-management-e19944602.html
Plan-Do-Check-Act (PDCA) Cycle. (2018). Retrieved from ASQ Website: asq.org/learn-
about-quality/project-planning-tools/overview/pdca-cycle.html
Sieh Lee Mei Ling, T. S. (2015). The Sixth Gap of Service Quality: Evidence from
Malaysia's Finance Companies. Developments in Marketing Science: Proceedings of
the Academy of Marketing Science, 185-189.
Terje Slatten, M. M. (2009). Managing Service Quality. Emerald Insight, 17(5), 493.
Retrieved from https://www.emeraldinsight.com/toc/msq/17/5
References
Giovani J.C, R. S. (2010). International Journal of Operations. Operations and Production
Management.
Gjoko Stamenkov, Z. D. (2015). A Sustainable E-Service Quality Model. Journal of Service
Theory and Practice, 25(4), 414-442. doi:https://doi.org.10.1108/JSTP-09-2012-0103
Kettner, P. M. (2013). Excellence in Human Service Organization Management. Pearson.
Nigel Slack, A. B.-J. (2013). Operations Management (7 ed.). Madrid, Spain: Pearson.
Retrieved from https://www.pdfdrive.net/operations-management-e19944602.html
Plan-Do-Check-Act (PDCA) Cycle. (2018). Retrieved from ASQ Website: asq.org/learn-
about-quality/project-planning-tools/overview/pdca-cycle.html
Sieh Lee Mei Ling, T. S. (2015). The Sixth Gap of Service Quality: Evidence from
Malaysia's Finance Companies. Developments in Marketing Science: Proceedings of
the Academy of Marketing Science, 185-189.
Terje Slatten, M. M. (2009). Managing Service Quality. Emerald Insight, 17(5), 493.
Retrieved from https://www.emeraldinsight.com/toc/msq/17/5
OPERATIONS MANAGEMENT 27
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