Operations Management Project - Case Study Example

BUS 300 Operations Management Term Project Name of Student Name of Institution BUS 300 Operations Management Term Project Business Plan Abstract Applying the Operational Management principles to ensure the success of a business is fundamental. It is important to properly design the goals and objectives of a company or the goods or services that are on offer. The principles ensures the alignment of the operations and the aspects such as the supply chain management and the delivery options can result to much success if well executed. There is a stronger need to ensure that prior to the launch of the product or service, the market is analysed and the development must keep in mind all these conditions that are part of the operation management framework (Jones, & Robinson, 2012). In the current business world, the driver of growth is differentiation and adding an innovative edge to the operations. Striving to give only the very best in terms of customer experience and also implementing a feedback mechanism is critical for continuous product evolution and it has to be factored in the development of the new product. Introduction Event management is one of the most robust industries today. There are many challenges that people face when conducting event management today. The aspect of operations in such events is often daunting to the event managers. Planning the logistics, ensuring that everything is where it is needed when it is needed, proper resource management for both human and physical resources and ensuring proper synchrony is realized during the management are always touch points that often result in challenges that often risk to spoil the entire events. In addition to this, coordinating the supply chain with the focus on customer satisfaction in mind is a fundamental segment of such a process. Streamlining this aspect therefore can ensure that costs are saved, time wastage is minimized, and that the peace of mind of the organizers, those taking part of the events and the clients is guarantee (Jones, & Robinson, 2012). This is a perennial problem facing the service industry that is known for its high dynamicity in the way it is rendered—there is no one-way-fits-all approach to events and most of them are customized or tailored down depending on many factors. Having a way to manage the operations effectively implies that it will be a great part of organization. The company will be called “The Way.” The name will be instrumental is laying down the fundamental of the enterprise. It will be based on the provision of catering services, enabling those organizing events to organize specific aspects of the business. The name of the business will instrumental in allowing for multiple fields to work on. The perspective or future growth of the company will be pegged on the reduction of the value of the projects. This business plan seeks to solve to problem relating to operations management and organization. It entails the use of a simple truck or van that can then be used for arranging all the gatherings needed by the user or the event manager or attendees. One can hence show up at an event with little need of fearing what to do. It allows for one to be organized such that one can show up in the best picture in front of the guests attending the event one is organizing. The truck or van can then be used to arrange the small events that require less demanding requirements. The truck will be customized and equipped everything that is required to fully manage such an event. The truck has everything that can be used to organize small events, organize simple meals that are often needed in such events such as simple breakfast such as English, American or Turkish breakfasts. It can also be used to organize the offering and presentation of lunch of different types. The population of United Arab Emirates is more diverse and there is need to ensure that the meals offered can be tailored to fit the different cultures and even offer traditional cuisines such as Arabic meals or more universal ones such as French or English cuisine in order to fit the specific needs of the guests. The business gives those in need of the services the autonomy needed. Most people who want to organize for events are often torn between making the events themselves and outsourcing. The traditional model of doing the event themselves or outsourcing. As a company that the work is outsourced to imply that we have to build a specialized business enterprise that is highly efficient. The customer can then focus on other core competencies of the event. In order to properly manage the events, the truck or van used has been equipped with all the requirements that can make it a full catering unit. The different items that are required in the van in order to ensure that the events are a success include the plates, the forks, spoons, accessories, decorations, sweets, sandwiches, juices, hot drinks and flowers. These can be rented or owned. As noted, the events world is dynamic as the owners may choose to use their own. Again, the truck of van has been built to be versatile in such situations. This is a business that leverages the ability to be innovative and solve a problem that exists in the market. The mark of any business today is its innovative approach towards solving a problem in the market and more specifically, addressing the clients’ fears and pains. The use of a simple truck that has everything that can be used to successfully manage a simple event brings a cost-effective edge to the provision of a solution to the challenges facing the customers. While other vendors in the market are more high-end and seek to target a smaller and exclusive segment of the market, the use of this truck will open up opportunities to resolve the problems of events operations and management for everyone as the costs of management are low while delivering same or more value to the customers. It can be deduced that the organizers of most small events are busy people and peace of mind is essential to them. At the same time, most of the people may not be able to be able to organize the events. They may lack the expertise to properly handle the different aspects of the business. While the idea may not be new as it builds on several business models in catering and service industry in general. The focus of the business is that it will enable the provision of a new and unique service, marketing and offering ways to minimize the time and costs for the customers. The focus of the business is premised on the timely provision of services to the consumers. The operation management is based on the provision of services within 8 hours. With the smaller turnaround time presents unique challenges and opportunities and the company will focus more on the provision of value to the customers. There is greater need for the guarantee of customer satisfaction and this will be realized with proper coordination of the services. Opportunities for the business The UAE is a fast-growing location with a robust and dynamic middle and upper class. The hospitality sector in Dubai is valued at about $7.5 billion in 2015. The growing value of the industry is as a result of the geo-political and cultural diversity that is found in Middle East and which has been leveraged and still can be leveraged for growth (Zawya.com, 2017). The growth of service providers in the hospitality niche can be associated with the robust growth that has been in the industry for some time at about 25% per annum. With the rapid growth in the market and the fact that there exists few providers, there are many opportunities that present themselves in the market. There exists opportunities that can be exploited by the company. The market is wide and can therefore be accommodative for new players such as Truck Way. Coordination of the supply chain The company will seek to amalgamate all the supply chain. In order to execute the business well, there are different things needed. A typical simple event may include foods and drinks, flowers and other requirements. Convenience for both the customer and the guests is important and thus there is need to ensure that the different things are delivered when they are needed and where they are needed. The business recognizes that there is a lot to gain when the supply chain responsible for the delivery of the different requirements for the business is effective. Delivery Management and Supply Management Most of the goods and items required for the event will be sourced from independent suppliers on a need to need basis. The suppliers will be contacted once an event comes up and the suppliers’ will mainly focus on delivering the consumables. As noted above, handling events takes into consideration many factors. Factors such as culture and the tastes of the client or type of guests will be critical in determining what is supplied especially in terms of foods and drinks. The preparation of the meals and drinks will be handled in conjunction with the host, enabling the coming up with a comprehensive cuisine and budget. The suppliers will then supply the different ingredients for the food to be prepared by a specialized crew before it is delivered by the van or truck. In terms of the other requirements such as pates and cutlery, the suppliers will be notified to supply depending on the number of guests attending the event. The firm will also work with other suppliers to supply flowers and other accessories on a need to need basis as they are optional. The suppliers will issue an invoice after tendering their services and will be reimbursed appropriately. Structure of the business As noted in the introduction, the business will require the use of a van or a small truck. This is to enhance mobility and fast rack the delivery process. The most important specification for truck or van will include: A light truck with adequate space in the cargo area. Efficient consumption Preferably 1200cc and 2000cc will be adequate Maximum 800 tonnes Temperature controlled cargo area that is insulated and protected to ensure that dust and other contaminants that may go into the food in the cargo area. It should be equipped with a freezer to ensure that drinks and flowers that may require refrigeration do not spoil It should also be fitted with warmers such as microwaves to warm the food when needed before being served. It should have stores and storage containers such as vases so that different things can be properly organized. In order to aid the serving of the meals, a table should be added. The table will also be used to prepare the flowers. The van or truck will also be equipped with two boards on the outside, one each of the two main sides. They will be used as a means to advertise the services to other prospective clients. The same may also be used for the advertisement of CSR initiatives which are important in portraying the firm in a good light. After understanding the needs of the client such as the culture, the specific type of foods and drinks needed, the company comes up with a menu and creates a budget. Once the menu and budget has been approved, the company then proceeds to organize the event. The success of the company will be pegged on high level of integration of the company with The firm makes it easier to be contacted. In addition to advertising on multiple channels and giving the prospective customers an easier way to contact them, the company also has a mobile application that can be leveraged for bookings by the potential customers and for them to get all the necessary information regarding the services. As part of making the company unique, the mobile application will allow the customers to give their suggestions on how best to increase the quality of service in the future, give their complaints if they feel aggrieved in any way about the services provided. The mobile application will also be an avenue for the customers to choose themes for the services that they need, the venue and give any information and in return get feedback and information requested such as a quote when needed. Another way that the customer will target and reach out to the clients will be through having a presence in related events such as those attended by Abu Dhabi events. As part of diversifying the income, the company will also use the events not just to showcase the services but also it will make and sell tea, coffee and chocolates among other snacks as the events proceed. Requirements and Budget The company will work mainly with the one truck or van manned by about five workers—one driver, 2 staffs each for breakfasts and lunches immediately. For a simple event, the minimal budget for the clients will be from 799 AED. That should work for a simple event of about 6 people. The decorations, the flowers and any other accessories for customizing or adding sophistication to the event will be depend on the customer and therefore they will be part of the additional costs as they are varied. The budget is modest and gives more people the ability to afford. The meals and other costs related will also go up depending on the number of guests, types of meals and other special specifications as needed by the customer. Cost of van and other costs The van will cost about 100,000 AED inclusive of the purchase cost of the van, the design especially of the interior, the insurance for the car and the workers, the accessories included, the decorations, the vases and the advertisement magnetic walls. These included the installation and all associated costs before the van is delivered. These will be the main major costs that will be needed to set forth the firm. Summary The above business plan is a summary of the way the firm will undertake the process of operationalizing a business in the service and hospitality industry in the UAE. The use of a van will make it easier to manage the events as it will make it easier to organize and transport all the requirements to make the events a success. The focus on giving cost-effective value to the customers gives the business a boost. The van ensures that the clients can get business done where they want and whenever they want, which is fundamental to the success of the value chain. The focus on adding value to the clients’ lives through the provision of a solution to the challenge of organizing events especially the operation management segment is what sets the company on the path to success. While there are many different companies in the same market offering nearly similar services, the innovative approach used to addressing the problem will give the firm the edge in the market. While there exists many challenges in the market such as penetration, there are a lot of opportunities as the market is fairly wide and diverse, with unique needs and dynamic customers. The dynamic nature of the clients in terms of culture, amount capable to spend and tastes makes it impossible for the domestic company to entirely fill it, allowing for voids for new players. References Zawya.com. (2017). Dubai's event management industry was estimated at DHS165.15 million and continues with an annual growth of over 25% | Zawya MENA Edition. Zawya.com. Retrieved 2 May 2017, from http://www.zawya.com/story/Dubais_event_management_industry_was_estimated_at_DHS16515_million_and_continues_with_an_annual_growth_of_over_25-ZAWYA20160208100234/ Jones, P., & Robinson, P. (2012). Operations management (1st ed.). Oxford: Oxford University Press. Page, S., & Connell, J. (2014). The Routledge handbook of events (1st ed.). Routledge: London. Read More