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4. 709 Operations Management Individual Assignment Lecturer: Mr.. Ray Minnow Banana Pharaoh – ID NO. 20140195 Total words: 1869 1 . Custom Fabricators Company (a) The balance of Customer Service and Resource utilization Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation. Customer Service is defined by three things: Specification Timing Cost Specification: Custom Fabricators made control panels for elevators. The product specifications were decided in advance as per the elevators.
Over the period of time Custom fabricators had mastered the making of these panels with the help of new technologies. Timing: Timely delivery was of high importance as the shipment schedule of elevators was shared in advance with the company. The product was always delivered on time because of the efficiency of the process of making panels. Cost: The quality of panels was good enough to charge the suitable price. Over the period of time the company has been able to charge a good price from its customers because they were able to satisfy them.
Resource Utilization by strategically eliminating operational inefficiencies. Resource utilization is the use of a resource in such a way that increases through output. The aim is to use these assets efficiently so as to maximize customer service levels. Resource utilization comprises of three things: Machinery Materials Labor Machinery: The Custom Fabricators used efficient machinery which enabled them to meet their customers need and satisfy them as they could make the required parts automatically by Just getting the shipment schedule from the Orleans. Materials: The raw material was always bought by the Orleans.
They always provided the raw eternal to the Custom Fabricators as per the product requirement. Labor: Custom Fabricators had loyal group of employees and they all are well paid as the business is doing good. The analysis done above of the Custom Fabricators shows that they were more focused on customer service. The company’s success can be attributed to producing high quality goods and delivering in time because of the excellent understanding of the customer’s requirement. The company focused on one customer only and did not expand the business to serve new customer, it did not put efforts to build new customers.
Now the business completely depends on one customer which is Orleans. The key success factors of the Custom Fabricators business so far are perfect understanding of customer’s requirement, efficiently delivering the products and loyal employees. The company modified everything as per the customers demand, providing whatever the customer wanted and in time. (b) Using the Grants Model, it can be said that the Custom Fabricators had the competitive advantage. They were efficient in customer service, their production, making good profits, focused on the needs of the customer and were able to set up efficient processes.
Custom Fabricators were able to set up their factory with the help or Orleans as they did not have to bother about the raw material or anything. Ben Just got the land and equipment’s for the plant that too, at good price. They have sustained it for a long time now and with good profit margins. Now the competition has entered the market with Foremasts coming in. As they can get the products made from cheap Mexican suppliers, it’s a threat for Custom Fabricators because they cannot cut down on their labor prices so that competing with the cheap Mexican labor seems very difficult.
This might be the time of decline or Custom Fabricators. Product Life Cycle Custom Fabricators started getting good profits when the launch as the growth was good and they got more and more business. The company is entering the maturity phase in life cycle now and competition has entered the market. Foremasts are getting in the new suppliers from Mexico who can provide the same products at cheaper products. This will reduce the profit margins and there will be immense pressure to reduce cost of production on Custom Fabricators.
Custom Fabricators could take the contract and get the Mexican suppliers to work for them; this will help n sustaining their business. Custom Fabricators value chain All activities should aim at one objective and mission. The company should focus on expanding the business and getting new customers as depending on Orleans would be risky. They should also find out ways of reducing their cost of production. Orleans are exposing themselves to a great risk Orleans are not realizing that it could become a problem for them if they give the complete production to Mexican suppliers as their quality and designing might not competitive advantage.
They making good profits, focused on efficient processes. Custom Fat alp or Orleans as they did not den lust got the land and equip sustained It for a long time now Non the competition has enter can get the products made front Fabricators because they cannon Witt the cheap Mexican labor for Custom Fabricators- custom Fabricators started get good and they got more and Mac phase in life cycle now and com getting in the new suppliers fro cheaper products.
This will reed pressure to reduce cost of prod could take the contract and get All activities should aim at one expanding the business and GE’ be risky, They should also find c Orleans are exposing themselves Orleans are not realizing that II complete production to Mexican be up to the mark. Mexican suppliers are so far away won’t be able to help. Orleans should give the contra ask them to get the work done from Mexican supplier products for them for such a long time and they undo well. C) The initial structure for the supply of products to V – Store of Resources O – Operation or Function C In the initial structure raw material was used once the the product and made into finished goods to be used The structure involving Foremasts: From the entry of Foremasts now the Orleans will g hey will get the Mexican suppliers so the resources customer will also not wait. As Orleans gives the order the price quotes from Mexican suppliers and whoever making the products.
The major issues which Custom Fabricators are facing Outsourcing has become big. The Orleans plant never is not much left at the Orleans plant site. Orleans is associated with elevators for which they are thinking Foremasts. If this happens Custom Fabricators will cheap Mexican labor cost. The competition is comic come up with the idea of taking over the business of from Mexico. 2. Seven Step Improvement Process This report will be discussing the problem delays in s lunch hour at Burger King Market outlet which h till now.
There is delay in serving customers in the lunch hour and the queue goes up till the main door of the outlet. The report will examine the problem of operations especially in the lunch hour at Market Burger King Store and the solutions to give faster and better services to customers of Burger King. Step 1: Select The aim of this report is to solve the problem of serving customers in the lunch hour so that the store can serve more customers and avoid the place getting crowded.
This is possible by reducing the time spent in servicing each customer. Step 2: Record All the material is stored in a bigger freezer at the backside of the store. Small quantity is taken every time the food finishes at the front area where it’s stored in a small refrigerator. The chicken and other patties are kept in the machines or the fryer to fry and then used in the burgers. Once the patties are fried in a small quantity, they are kept in a pan which keeps them hot on the board where the burgers are made.
Then as per the orders they are made and kept near to the front enter where the front staff is serving. Food transferred from the big freezer to small refrigerator 3-5 Minis Stored in pans 30 Sec Patties fried in the fryer Sec Burgers Preparation 20 Sec Meal packed or placed in tray Sec Served to Customer 3 20-30 5 sec The maximum time is taken in frying the patties and because the pans to store them are quite small so the activity has to be repeated again and again. Step 3: Examine The maximum time taken is in the production and preparation area.
Every time transferring the raw food from bigger refrigerator to the production area also wastes mime. The food that can be stored the production area refrigerator is quite less so the crew member at production waste a lot of time in transferring the food. This Job can be eliminated if we are able to store the quantity required in the lunch hours in the production area itself. The production person is transferring the food and also frying the patties, fries and making sure the salads and other containers have enough of everything at the same time.
Step 4: Develop In observing the work process at Burger King, it has been identified that there are a ewe processes which can be eliminated and some can be made faster to improve the services of the store. First of all, a bigger size refrigerator can be installed in the production area to store enough quantity of food in production area before the lunch hour begins so that no more time is wasted in going to the inside freezer again and again to transfer the food. A large quantity of patties should be fried Just before the lunch hour so that cooking time is saved in the lunch hour.
This will save frying time as well the production person will be able to help the person on board to make more orders in less time. This will make the process faster and serve the customer quickly. Step 5: Define Installation of bigger refrigerator in the production area. Using more number of pa to store the patties. Training the production staff to prepare for the lunch hour fro before and finish the additional work in advance so that they are free to help the person on board and process the orders faster.
Then the production crew can also be at the board to make burgers and contribute more to the making the burgers as the number orders are too many and getting help from the other person will help implementing the orders quickly. Step 6: Install Store manager should be communicating the changes in the work process at the store and train the crew members to follow the new process. This will effectively eliminate the steps in the process which are not required and their elimination ca save time.
Manager needs to make sure the material which is required for following the new process should be installed in the store. Step 7: Maintain It’s manager’s responsibility to take note of the effectiveness of process and the changes that have happened have contributed in giving better and faster customer service or not. Manager needs to maintain a standard system of the new process a keep a check that it’s followed by everyone. Installation of bigger refrigerator in the production area.