Operation Management, Concepts of Competitiveness, Stragedy and Productivity - Term Paper Example

Operation Management - Revision Questions CONCEPTS OF COMPETITIVENESS, STRATEGY AND PRODUCTIVITY 1. (i) Brief Description of the Business According to the proposed business plan for ABC Corp, it has been apparently observed that the business of the organization is intended to deal with Valet Parking Services and Car Wash Facilities based on Al Mirfa city. The primary objective of the venture has been viewed to be focusing upon two major business segments such as car parking and washing services in order to attain considerable profitability. In the context of car parking service, the organizational operations has been planned to offer car parking along with storing facilities with a feasible amount of fees. Contextually, the car washing operations of ABC Corp have been recognized to satisfy its potential customers through providing range of internal as well as external cleaning and detailing services of their personal as well as commercial vehicles. (ii) Mission and Goals of the Company In relation to the proposed business plan, it has been identified that the mission of ABC Corp is to recognize itself as the foremost choice for the customers in Al Mirfa and attain sustainable development in the car wash and parking segment within the respective business market. Moreover, the organization has also committed to offer exceptional experience to its each customer and obtain adequate measure of satisfaction from delivering its services effectively. The organization is determined to obtain its expected business objectives with regard to maintain gradual and steady growth of profit. Additionally, the other major business target of ABC Corp has been observed to expand its different business units in diverse locations within five years of business operations. 2. (i) Organizational Strategy and Rationality With reference to the proposed plan, the business strategy of ABC Corp can be viewed targeting both local customers and tourists who often visit Al Mirfa to attend different festivals, sports or any cultural event. In this regard, the business strategy of the company has been observed to focus on providing adequate parking services along with cleaning and detailing of vehicles in a more effective and quality based manner. In order to maintain the quality of car washing and detailing services, the company tends to invest substantial amounts in developing its services for the target of attaining its expected business targets at large. It can be stated that ABC Corp adopted the aforesaid strategies with the motive of attracting huge figure of customers and most vitally to earn considerable earnings. (ii) Justifying Organizational Strategy with the Mission Statement of ABC Corp The mission statement of ABC Corp has been recognized to attain competitive position in the respective car parking and cleaning industry in Al Mirfa through delivering adequate quality based services to the customers. Therefore, the strategy of maintaining as well as delivering superior quality of car parking along with washing and detailing activities can be a major supportive factor for the organization to meet its desired business goals by a certain degree. Moreover, the strategy of investing can also provide adequate assistance to the company in terms of satisfying its potential customers and strengthening its competitive position in the respective market or industry. (iii) Tactics to Support Chosen Organizational Strategy The process of maintaining competent quality in terms of providing car parking, washing and detailing services can be considered as one of the major tactics that ABC Corp had decided to apply or to support the chosen organizational strategy. Moreover, the integration of advanced machines and elements in the operational process can also ensure to offer quality based services which can further empower the chosen organizational strategy by a greater level. 3. (i) Ways to be Competitive in the Respective Industry or Market In relation to the present rapid development in the personal car as well as commercial vehicles in Al Mirfa, providing better and quality car parking along with car washing and detailing services can be a major competitive strategy which can enable ABC Corp to acquire a prominent position in the respective industry or market. Moreover, a least number of competitors along with budding growth of personal and commercial vehicles also facilitate to build a strong brand position as well as competitive advantage for ABC Corp in Al Mirfa. (ii) Core Competences of the Company In relation to identify the core competent factors, it can be stated that the strategy of providing quality car parking and cleaning services is the major factor which can support ABC Corp to attain superior competitive position in the respective industry. Specially mentioning, the core competences of the company can be viewed as serving the customers with better car parking along with washing services at the time of their visit into the city of Al Mirfa and assisting the customers to avail the facilities with ease. (iii) Ways to Improve Operational Productivity Improving productivity capability can be regarded as one of the major initiatives in order to attain long term sustainability. In the context of ABC Corp, the company has significantly prioritized to effectively design its product or services concerning various aspects associated with safety, dependability, supervisory along with maintainability. Moreover, the key factors of designing products or services like size of the venture, business life cycle along with internal and external environment can further facilitate ABC Corp to improve its productivity by a significant level. Additionally, techniques concerning capacity planning, consideration of different capacity alternatives and incorporation of various effective tools can also play a major role for the company to develop its potential production level as well as productivity growth at large. FORECASTING 1. Major Forecasting Technique With reference to the proposed business plan, it can be firmly observed that the major forecasting technique of qualitative method has been suggested to ABC Corp. In this regard, the company strongly believed that the integration of qualitative method as an effectual forecasting technique can provide adequate support to the management of the company towards improving its overall productivity and complying with the requirements of the customers efficiently. The primary reason of choosing qualitative forecasting technique was to attain better control and strengthen decision-making process of the company. 2. Possible Constraints or Problems from the Chosen Forecasting Technique The proposed forecasting technique ensures various benefits to the company in terms of improving its performance as well as enhancing its decision-making procedure. However, the qualitative technique in the forecasting process can also create certain difficulties to ABC Corp. In this regard, the deficiency in quantitative assumptions concerning demographic condition of the communities along with annual visitors in Al Mirfa can impose unfavorable impact on ABC Corp to efficiently perform its valet car parking and cleaning services. Furthermore, the integration of qualitative technique can further bring risks to the company concerning its decision-making procedure due to lack of statistical presumptions of customer needs and demands. CAPACITY PLANNING 1. (i) Identifying and Discussing the Importance of Capacity Planning The primary objective of capacity planning is to reduce possible constraints that can hinder the overall performance of an organization. A few of the major benefits of capacity planning comprise enhancing organizational efficiency, raising overall productivity, enhancing decision-making procedure and developing budgetary planning (Metron Technology Ltd, “Capacity Planning”). (ii) The Impact of Poor Capacity Planning Poor capacity planning can generate different problems which can impact on the overall performance of the organization. Few of the major possible constraints that arise from the poor capacity planning may include deteriorating quality of product/service and failure to achieve desired financial goals (Metron Technology Ltd, “Capacity Planning”). 2. Explanation about how Selected Forecasting Technique Supports Capacity Planning The facet of capacity planning typically involves identifying the demand of the market and offering appropriate products or services to satisfy customers. In relation to ABC Corp, it can be stated that the steps in the forecasting process can provide adequate support to ABC Corp in order to prepare effective capacity plan. Additionally, the qualitative forecasting technique can also provide substantial benefit to the organization in terms of forecasting the ultimate demand of the customers on availing valet car parking and cleaning services. 3. Alternative Method of Determining Capacity Planning According to the proposed business plan of valet car parking and washing service of ABC Corp in Al Mirfa, it has been apparently observed that the company might face certain constraints associated with measuring capacity of human performances, operational processes along with different organizational policies. Therefore, an effective integration of alternative plan is utmost important for the organization to evade those potential risk factors. In this regard, the consideration of providing adequate training and development to each employee, measuring and controlling of different operational procedures can facilitate the organization to determine capacity planning by a greater level. PRODUCT AND SERVICE DESIGN 1. (i) Key Influencing Factors on the Organizational Products/Services With reference to the proposed business plan, there are primarily three types of major factors that comprise size of business, business lifecycle and business environment which influences the products/services offered by ABC Corp. (ii) Sources of Ideas in Product and Service Design In order to determine the sources of ideas relating to product and service design of ABC Corp, it can be affirmed that establishing an effective and an apparent communication process with the customers can help the organization to build an efficient product/service idea. 2. (i) Legal Importance in terms of Product/Service Design In relation to the business plan of ABC Corp, it has been apparently observed that the legal consideration within its product /service design process can efficiently support the organization to minimize different potential constraints. (ii) Ethical Importance in terms of Product/Service Design Additionally, the ethical consideration would also support the organization to enhance its overall performance and also to ensure effective conduct of business operations. (iii) Sustainability Importance in terms of Product/Service Design Contextually, the sustainability can further assist ABC Corp to build a large number of potential investors along with other stakeholder groups from different geographical nations. PROCESS SELECTION AND FACILITY LAYOUT 1. Process Selection and Facility Layout Types The different aspects of process selection that have been proposed to ABC Corp include operation, recurrent processing, batch processing, job shop process, automation process and manual process. These particular aspects relating to process selection have been selected for ABC Corp as the company would be able to enhance logical design and also to conduct capacity planning effectually. Relating to the type of facility layout, process facility has been selected for the company as it would help in meeting the satisfaction level of the potential customers by a greater level. 2. Importance of Selecting Appropriate Process It is important to make sure that the process selection and facility layout of the company is quite appropriate owing to the reason that this can enable ABC Corp to offer quality based and reliable services to its potential customers. WORK DESIGN AND MEASUREMENT 1. Identifying Work Condition In accordance with the proposed business plan, it has been viewed that ABC Corp has considered the aspect of employee interaction with machinery design in order to deliver quality based services. 2. Identification and Discussion of Various Bases to Compensate Employees In order to recognize various bases of compensating employees, ABC Corp decided to compensate its personnel in terms of providing wages along with offering additional monetary incentives. In this regard, the provision of offering additional incentives to the employees can enhance organizational productivity by a greater level. 3. Work Design Methods to be Used The work design of ABC Corp will be focused on prioritizing the overall efficiency of the organizational process. In order to improve productivity, safety and quality of work-life, efficiency can be applied through structuring effective operational strategy and developing product/service design. In order to develop the productivity, safety and quality of work-life, teams can be applied though establishing effective coordination and communication among each team member. LOCATION PLANNING 1. Importance of Location Planning Location planning for ABC Corp can be considered as a major strategic consideration in terms of attaining a huge figure of potential customers. Therefore, the selection of high traffic area can enable the company to attain adequate number of potential customers especially in the festive seasons. 2. Supporting Key Factors in Location Planning In relation to the proposed business proposal, it has been identified that land, transportation, market and labor are the most influencing factors in terms of location planning. In this regard, the availability of potential employees, adequate availability of resources, standard pay structure along with the availability of potential customers can be the supporting key factors in location planning. QUALITY MANAGEMENT AND CONTROL 1. Importance of Quality Control The deliverance of quality valet car parking and cleaning services can be prioritized as one of the major considerations for ABC Corp. The compliance with the adopted principles concerning product or service quality can ensure to build a strong brand name in the car care market of Al Mirafa. The possible consequences of delivering poor quality based products/services might include loosing loyal customers along with business reputation and restricting towards accomplishing financial goals. 2. Major Concerning Areas with Product/Service Quality The major concerning areas that ABC Corp intends to focus with its product and service quality are reducing number of potential constraints and identifying along with implementing adequate measures to mitigate any sort of issue. 3. Responsible Factors on Maintaining Product/service Quality In order to make sure that product and service quality in the business is maintained, several important tools like check sheet, control chart and Pareto chart can be taken into concern. These tools can prove to be quite beneficial for ABC Corp in terms of monitoring the frequency relating to any specific incident, identifying consistencies of various faults and demonstrating errors in the operational processes. 4. Appraisal and Cost Prevention Process In order to maintain product/service quality in business, ABC Corp had to incur certain appraisal along with prevention expenses or costs that include product examination, product review and quality improvement planning among others (American Society for Quality, “Cost of Quality (COQ)”). 5. Quality Inspection Process One of the major quality inspection processes that ABC Corp can adopt or implement a quality inspection team who would be entitled to constantly monitor the quality factor of the organizational products/services. Works Cited “Capacity Planning.” Home. Metron Technology Ltd. Web 11 Jun. 2013. < http://www.metron-athene.com/capacity-planning/index.html> “Cost of Quality (COQ).” Overview. American Society for Quality. Web 11 Jun. 2013. < http://asq.org/learn-about-quality/cost-of-quality/overview/overview.html> Read More