In my report to CEO I am going to explain the importance of operational management and how environmental factors affect the operations management then various operational strategies. Explaining the layout of the Alton towers and what the strategic importance of operational management are further more capacity planning, inventory planning and quality control planning.
1.1. Operations management
Operations constitutes an essence role in all case by business enterprise, covering a broad chain of actions, not entirely making up, merely whole steps in the general supply/value chains. This let in procurement, stocktaking’s, adeptness’s, logistics, and statistical distribution. Operations management constitutes the management of the resourcefulness’s, techniques, and systems of rules accustomed translate input signal into end product to produce vendee rate. These courses of study concentrates on trading operations rules and methods utilized through systems contending globally although besides allowing a strong ecumenical masterminding direction ground.
1.2. Main focus of this leisure business
As it is obvious from the case study the main focus of the business is to provide there customer the magnificent surrounding, historic legacy, fun and flight of the imagination which suits all ages and tastes. It is clear from this statement is that there main focus of operation is the customer satisfaction and by doing this achieve the Alton tower strategic goals and objective of profit maximization and become market leader in theme park business.
To attract the visitor Alton tower new attractions like Oblivion, the Nemesis, Ugland and Energizer. Beside the ride and physical leisure for its customers it contain eating places like restaurants, shops where visitors can buy there desired product of the choice. Instead of shopping and eating Alton tower do organize and conduct exhibition and festival to attract more visitors. Alton tower do succeed in achieving there desired target as shown above in the case study there were over three million visitor in 1998 beside of attraction how Alton tower can gain this in providing their customer quality of services in lower price as Alton tower was charging Nineteen pound of the entrance which is not just entrance fee like other theme park do but this price include use of all rides for unlimited times. They do provide special discounts discount to elder or aged customers and organized parties.
For the purpose of offering the high quality of services to its customers Alton tower maintain team of 1800 staff who are performing their duties like operating rides caterers, cleaning and shop supervisors and security purposes.
Security department are one and only by the life-sustaining servicing in business sector alike these, Alton Towers could advance itself for a safe park to travel to along concentrating on it is safe record all over the yrs, and whatsoever safe certifications they have received. They could build safe a primary feature for whatever future rides, and promote these information.
Alton tower has spent 20 million on these new rides in order maintain attraction of the park between peoples which is part of its ten year development program me. Due to size of the park as it is on 800 acres it is not possible for the visitor to visit the whole park in one attempt therefore they take step to construct the hotel in the park in which they provide comfort services to the visitor where they can stay at night by pay the attractive price which is another step of achieving its strategic objective. Alton vary its fee accordingly in peak, off peak, week days and week ends times in which there was rush of visitors.
Alton tower can asses that how well they focus on their operations effectively by providing questionnaires to visitor and examine the level of their satisfaction and there opinions regarding how it can improve its services.
1.3. Environmental Factor Effecting Operations Management
The type of environment within which, the operation functions. The key environmental variables for operations managers are:
*Volume-refers to the number of times that an operation has to deliver a service or product.
The combination of specialization, standardization and high volume and high volume also usually opens up the possibility of using technology to perform the task
*Variation-describe the pattern of the volume demands. If there are many peaks and troughs in demand the situation is said to be one of high variation
*Variety-is the term applied to the number of different types of service or product demanded. High variety environment s require different services or products on a frequent basis, whereas low variety demands look for the same output for most of the time
There are several environmental factors that affect the business operation in an economy. They are classified into internal and external factors. The internal factors are those which relates to organization internal environment that can be under the control of the organization like its culture leadership and manufacturing processes. On the other side the external factors includes social environment, political, rivals, government bodies, rules and regulation issued by the regulating authorities like accountancy standard board etc.
Environmental issues in the case
The 1st issue that create environmental issue arise in 1924 when its operation was bought by Alton tower after that it was under the hold of army during the period of war. War destruction totally destroy the park as we are aware of the during and after war side effect on the local environment it was in poor condition when it handed over to Alton tower again for refurbishment it cause major effect to environment. As there is no way to mitigate the affect of such event as it arise such event are out of control of organisation, as its obvious during war period its impossible to protect any area and property. Therefore the one action is to control such events is in hands of government and their relation with other countries.
2nd impact was made by the technological era as the installation of new rides in park beside of customer and visitor attraction does have environmental issue as well like sound pollution, cutting trees and machinery waste pollution to environment. It can be mitigated by trying to preserve my natural resources like by instead of destroying they can be move them to alternative places which will overcome the overall impact to least level. Using such technology which was closer to sound reduction and produce minimum waste.
Finally, as Alton tower has invested potential amount of money for new ride. Mostly rides was indoor and few which are outside is due to its limitation to cover them as this will cost the Alton tower major cost on the other hand it will destroy the natural things as well. It would have social issue as well as the visitor came there to entertain themselves with naturalistic environment. Another weather issue as the park is closed between November and February. This factor is also out off control of Alton tower as it is weather that prevent the visitor to come there one way it to create as much indoor facilities that protect the visitor from the tightness of weather as this step will cause massive investment as well agree the visitor to come which will happen only by huge marketing policy and attractive packages like reduction in price which I think is not cost benefit strategy for Alton tower as this will increase its cost but reduction in profitability. But most indoor concerts can be organised there to attract the visitor to come and entertain themselves from it.
2.1. Various operation strategies
At the mind of operations is the idea of transformation (output). Inputs are acquired, and the operations process converts them into outputs. Operations strategies in bare:
Operation implies driving matters finished. Operation management comprises significant because it’s causative dealing administration resourcefulness. Operations are an day-after-day action. Strategy constitutes course to accomplish organisation long-run targets. Operation strategies are referred on correcting of aims for operations by whole procedure. There’s accented relationship betwixt operations and functions.
There are all of the time hazards of dispute ‘tween operations and functions. Because commercializing objectives to fulfill clients demands and expect operations to offer diversity, intensity, speed and higher quality service. This will direct to lower effective servicing till an contingent operation strategy is designed to conciliate and associated on additional roles by administration. All procedure experiences it is strategically target also equally operational objectives. E.g. Commercializing functions strategically target aspirant selecting cost, advancement etc and operational side implies daily tactics inward providing service. Operations strategies let in administration set up strategy, localization strategy, man resource strategy, marketing strategy, hence all functions of organization has operations responsibility in addition to equally long-run.
2.2. Evaluate and analyse the operation strategies adopted by the business.
I am going to evaluate the operational strategies of Alton tower under following headings.
Product and services
Process and technology
Capacity and facility
Product and services
Under this operation strategy I believe that Alto tower are offering the design there services according to need and understanding of the taste of the Visitor so they are fully fulfil the need of the users of those services. Alton tower has installed new rides in park like Oblivion, The Nemesis, Runway mine train and haunted house etc. These are the products that meet the international standards and provide its user adventure and thrill they are willing to obtain from it. Alton tower has invested 20 million which is part of ten year program in which they are planning to launch new products and services for their users. There are few age and height restriction for the visitor which on one hand is in best interest of the user but if we see it from the user point of view some of them was not satisfied with this discrimination. Not only ride if we look at other services like shops amusement parks, live entertainment and exhibitions these are all fall in the services that Alton Tower are offering to its Visitors to entertain them and meet the expectations. Therefore I think Alton tower are fully active in its product and services operational strategy.
Process and technology
Alton tower was offering there customer Professional services in each section like ride operators, caterers, cleaner, shop assistant, supervisors and security personnel’s. Professional and trained operator was handling the rides which include the speed and safety measures for the visitors. Therefore visitors consider themselves to be safe when they using the ride as the feel they are under safe hands. Services like catering and shop supervision providing to elderly visitor who was unable to take ride can entertain them selves from the services that meet the highest level of quality their priority was customised to visitor need. In each process Alton tower are using the latest technology in offering these services.
Capacity and facility
In 1998 Alton tower entertained over three million of the visitors and they are planning to increase this annual volume of visitor per year for this purpose they installed new rides as described before to attract more visitors toward Alton tower. As explained in case study during east bank holiday the visitor reaches to 40000 and through out summer this limit sustain to 30000. Alton tower has so much area which is left as for exploring that can be utilise for further activities. There fore Alton tower do pass this operation management strategy of capacity and facility in order to hold the capacity it has develop market and shop exhibition hall where they can facilitate the visitors.
In order to fulfil this strategy objective Alton tower recurit1800 staff members and more as needed during the peak time. As their is limited explanations of human resource policy in case study however Alton tower need to provide training for operating new ride installed in the park before its opening and they need to have policy to treat each member of staff equally and paid standard for like paying them on hourly basis or monthly basis. Teams should be maintain to support each different areas of theme park and task should be assign to them and proper supervision held on them so that they are performing their tasks accordingly. Bonus and post employment benefit schemes should be launched so that employees consider there future safe and offer highest level of quality in their work.
In this business the quality is extremely important as ride need regular maintenance because it raise health and safety issues. It is Obvious from the case that Alton tower in maintaining quality in each business services.
2.3. Strategic importance of operations management
Each and every decision and strategy implementation was imposed from strategic level in every business. Therefore it is vital at strategic level to know whether there strategy was successful at operational level and it is the operation management responsibility to strictly implement instruction to achieve the desired targets. Operation management deal the day to day activities of the business therefore report on regular bases to strategic level the stage of completion on there strategy and if there are any problem arise at operational level that need careful consideration.
3.1. Factors affecting the design of product and services and benefit gained from good design
Operations managers have to consider factors like the nature of demand, the degree of vertical integration, flexibility, degree of automation, and quality level and degree of customer contact while making process design
Nature of Demand:
Organization need to produce products or design the services according the expectation of the customers. Schedule need to be made in order to produce product and services on time by take in to consideration the seasonality, growth in trend and demand of customers.
Influence of demand patterns –
The demand pattern of the product and services are varying due to following factors influence like seasonal factors. For example demand for ice cream rise during summer season and air conditioning etc.
Influence of price level –
Mostly customers demand more products at cheaper price, as they are price sensitive this will affect on the design of product and services.
Degree of vertical integration:
Vertical integration is degree in which determine the degree of product and services can produced internally. There are two types of integration:
Forward integration is expansion of organization product to different chains and different markets.
Backward integration organization tries to expand backward to source of supply.
Organizations have to be flexible in order to increase or maintain their market share. In order to meet the flex demand of the customer’s organization need to be flexible in its operations. Flexibility can be broadly classified into: Product/service Flexibility and Volume Flexibility etc.
Degree of automation:
Despite the cost factor of implementing the automation operation management should focus on the automation for their production processes. This will reduce the labor cost and speed up the process of production. How ever the level of quality demand by the customers also impact upon the cost factors.
Benefit of good design
Below are 5 points to remember in order to assess the usefulness and potential success of a design. It can be adapted to specific design professions, even projects and used as a checklist.
Benefit of good design includes:
It should meet the desired objectives.
It meets the desired quality standards.
Customer is satisfied with the quality of service.
Automation increase the processing time and reduce the labor cost.
Customer is satisfied with the price of the product and services.
3.2. Discuss layout of Alton tower:
Facilities Available at Alton Towers Resort:
Through out the park 8 cash machines are installed which can be used by the customers for withdrawals of cash.
Push chair hire at Guest Services.
Wheelchairs take into service for disabled guests, available from Guest Services.
Lockers at Guest Services.
First Aid is between the Towers Restaurant and Sky ride Station.
Toilets are expediently situated in a multiplicity of spaces all the way through the park.
Restaurants, bars and cafés are as well situated right through the park.
3.3. Work measurement
Work measurement is concerned with the relationship between units of output and resource time. It provides the factor that converts units to time and vice versa.
According to Jack Greene view in the time study and work measurement.
Work measurement is the place to start, for any organization where people or machines contribute to output, customer service, or cost.
Work measurement also provides tools to manage your business better
• calculate actual capacity the operation can produce
• develop standard cost models for products and services
• justify equipment and automation acquisition
• meet the Sarbanes Oxley Act for financial understanding of costs
• adjudicate disagreements about workload, assignments
• analyze variance to find problems
• estimate potential benefit from changes beforehand
According to Institute of management services:
Work measurement is the process of establishing the time that a given task would take when performed by a qualified worker working at a defined level of performance.
There are a variety of ways in which work may be measured and a variety of techniques have been recognized. The essential practice, irrespective of the particular measurement technique being used, consists of three stages;
an analysis phase in which the job is separated into suitable, separate components, normally known as elements;
a measurement phase in which the exact measurement technique is used to establish the time required to complete each element of work;
a synthesis phase in which the different elemental times are added, together with appropriate allowances to construct the standard time for the complete job.
4.1. Capacity planning
In the case after the three million visitors in 1998 Alton tower took plan too increased this capacity for this purpose it had invested 20 million for extension of park, for this reason it installed new ride to attract the new visitors and in order to cope with the increased volume of visitor it constructed magical hotel where visitor can stay day and night during there visit and increased the number of shops and recruit additional staff to serve the visitor in efficient way.
For capacity planning demand need to be forecasted ahead in order to analyse that demand meet the capacity of the company product and services. Demand can be converted into capacity by inserting time requirement. Or following method of capacity planning can be used to support the demand. Level capacity plan: in which capacity remains same it will not alter with the change in demand. Chase demand plan: in this expand the capacity with the increase in volume of demand through increase the shift and no of staff to cope with this. Manage demand: demand will be managed to deal with the capacity.
In Alton tower case they have adopted chase demand plan for capacity planning as the increase the number of rides and shops and to handle the volume of demand they recruit the addition staff to fulfill the demand or volume of visitor.
4.2. Inventory planning Method
Economic order Quantity (EOQ)
The economic order quantity is the number of units that a company should order in an order to reduce the cost of inventory. Costs include cost of storage, cost of holding and cost of shortage. Benefit of EOQ is ongoing review of the inventory system it help to calculate the reorder level which help the business to determine what to order and how many time and who often to reorder to minimize the cost of inventory.
Just in Time (JIT)
Just in time is producing goods in required demand, in necessary quantity and in necessary Quality require by the customer. By doing this many business improve there return on assets. Cost includes Provide regular training to staff and establishing the policy so that they become flexible. Benefit of using JIT it reduce the operating cost, greater performance through put, higher quality, improved delivery and increase in flexibility.
Enterprise resource planning (ERP)
ERP provides business the control and visibility in operation to maximize the profitability and to fulfill the customer demand. ERP provides the business to manage there operation with dynamic forecast using formula based production. Benefits totally based on forecasting and inventory planning, easy to use, system is flexible, easy to understand, quick and reduce cost of operation.
4.3. Approaches for project management and quality control
The traditional Approach
In traditional approach it identifies the step that is going to be completed. It has five steps:
Planning and design stage
Critical Chain Project Management (CCPM)
It is the method of planning that mainly focuses on resources like physical and human need to continue the project. Once the resources is final than project are plane and managed to ensure that resources that had planned are ready when critical chain starts and subordination other resources in the critical chain.
It is information that describes the justification for setting up and continuing a prince2 project. It provides the reason for the project. An outline business case should be in the project. PRINCE2 provide a method for organization project within a plainly clear frame. PRINCE2 describe actions to direct people and activities in a project, how to design and supervise the project, and what to do if the project has to be adjusted if it does not develop as planned.
Quality Control Approaches
Total quality management
This method is beyond the quality assurance under this approach business is concerned by creating the quality culture in the organization in which each employee is aware of quality demand to satisfied their customer. In this method every employee set out to satisfy the customer placing him at the heart of production process.
These are groups of employees who work on similar task or area of responsibility and sort out solutions for the problems to improve the quality of work. This team was head by the manager and supervisors which also improve the employee morale.
In this method organization find out the leading competitor in the market who are performing at optimum level in there production and service areas, in order to benchmark its operation so that to stay level with the competitor.
5.1. Just in time:
The first most suitable strategy of Toyota is just in time inventory. It means manufacture automobiles simply when you get the order from client at real time. Toyota Company establishes just in time inventory idea and gives benefit to its respected clients by providing excellence automobiles. The main advantage of just in time is help to run the Toyota company’s manufacturing operations most easily and without wasting the raw material by estimating that what is required, when is required and how much amount is required in order to finish the given project. Basically, the main attitude behind just in time scheme of Toyota is removing wastes; decrease waste material and unreasonable requirements resulting in improved output.
The Toyota Kanban system is one of the controlled developed inside the Toyota production system (the way we make things). The Toyota production system is exclusive and unmatched. The thinking after it and way of execution has been perfected after long years of test and mistakes. In a nutshell it is also a structure of construction based on the attitude of whole removal of waste that asks for highest in rationality in the way we create equipments. And it can be named as Toyota style production scheme or Toyota production structure. Only when the Toyota production system in its totality is acceptably conducted, can there be an efficient deployment of Kanban structure.
The word Jidoka appears under total production system of Toyota and it can be talked about as an individual aptitude and automation with a human stroke. The word Jidoka captivating its roots forms Sakichi Toyoda the creator of Toyota Group. The major advantage of Jidoka that excellence must be fabricated in the manufacturing procedure. And major purpose of Jidoka technology in Toyota manufacturing procedure is that device is automatically end when the construction is finished. It also has a purpose that device excellence or equipment problem happens, the device automatically discovers the difficulty at its own and stops, and it stops imperfect products from produced. And due to this simply those products are transported to next procedure which is fulfilling the criteria to transfer into next procedure and excellence of building products of Toyota enlarges with the passage of time without damaging the material.
What are manufacturing operations?
A manufacturer is an individual, an enterprise, or a body that produces something. Consequently, a produces process is a company or a plant where goods and commodities are prepared. Raw materials are used to produce these goods and are then twisted into complete goods prepared to be sold. A manufacture is an extremely significant factor in the selling procedure because without them, the products we require, utilize and enjoy would not be present.
What are service operations?
Service Industries comprise those industries that do not generate goods, but offer convinced services. The peculiarity of these industries is that frequently the utilization of the service takes place while it is in the generation. Typically, this segment comprises hospitality, publicity, banking, insurance, consultancy, logistics, etc.
Compare and Contrast the Manufacturing industry with Service industry:
Manufacturing and service business is frequently altering. Basically, in manufacturing business one can determine the presentation of the product. The presentation could be calculate by building efficient utilization of the product physically, and on the other hand in service industry its bit tough to determine the performance of one’s service, because one matter is that it is intangible and it cannot be calculated, but once possible view to measure the performance of service business by captivating the feedback by company’s reliable consumers. Productivity is more simply measured in manufacturing as compared to service. Services operations concerned more and through contact with customers rather than in manufacturing operations. Quality standards are simple to create in manufacturing whereas in service industry once quality is not easy to evaluate. Manufacturing operations can increase or decrease the finished goods record levels in respond to alter consumer demand pattern while service operations cannot increase or decrease the customer demand models. Services can also comprise support operations which are also shaped and stocker rather than developing operations. Online actions are finished in services operations which fits to consumer rather than in manufacturing operations.
The goal of this report satisfy importance of operations management and I have experienced the role of operational management in vital in any organization operational management is responsible for implementing the strategic orders and their implementations. I build up the understanding the key factors affecting the product design and strategic importance of operation management. I build my understanding of different planning techniques for capacity, inventory and quality control. It has enabled me to set goals and take the actions that will lead to best and desired destination.
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