Similarities and Differences in the Management of Operations for Bmibaby and Fullers Brewery - Essay Example

Topic: Compare the similarities and differences in the management of operations for bmibaby and Fullers brewery. Introduction Operations management are those activities that are coordinated to bring about the production and distribution of products and services to consumers. In the views of Slack et al (2007), operations management entails the careful execution of all the processes that transform inputs into outputs. This is simply the conversion of raw materials, labour and energy into goods and services and availing them to customers. Further observations by Slack et al (2007) and colleagues note that a great deal of emphasis is placed on the efficiency and effectiveness of the said processes. In a nutshell, operations management encompasses all the operations that are carried out within the organisation to meet customer requirements. The underlying activities include managing purchases, inventory/quality control, storage, logistics and evaluations. Slack et al (2007) further argue that the manner in which operations management is carried out in an organisation is dependent very much on the type of products and services offered. Similarly, nature and size of the business enterprise concerned dictates operations management adopted. In terms of business sense, it is argued that operations management plays three main roles within the organisation (Slack et al, 2007). It thus serves to function as “an implementer and supporter of the organisation’s strategies as well as a driver strategy” (Slack et al, 2007). In view of this revelation, the current essay compares the similarities and differences in the management of operations for both bmibaby and Fullers brewery. The author specifically compares aspects like operations strategy, design, planning and control, supply chain management and quality and performance in both companies. The author also highlights those aspects of the operations management that are considered to be most important to bmibaby and Fullers brewery. Background information Published works indicate that bmibaby was incorporated in 1996 and has its basis in Derby, the United Kingdom. The company operates a low cost airline services as a subsidiary of British Midland plc. Slack et al (2007) report that bmibaby operates over 750 return flights a week from four UK bases namely Birmingham, Manchester, East Midlands, and Cardiff to 24 European destinations. Apart from providing low-cost air transportation services in the UK and Europe, Slack et al (2007) notes that the company provides online booking services as well as airline information services to holiday and business destinations. Passengers are additionally allowed to pre-book their seats at check-in as cited by Slack et al (2007). Fullers brewery on the other hand is praised as the London Brewery that has been brewing beer on Fuller’s Chiswick site as far back as the era of Oliver Cromwell as reported by Slack et al (2007). Moreover, Fullers brewery is shown to have built up a reputation for running great pubs and brewing outstanding beers attested by the presence of London Pride, ESB and 1845, all of which are winners of numerous awards (Slack et al, 2007). In fact, three of the brewery’s beers namely London Pride, ESB and Chiswick Bitter have won the coveted title of ‘Champion Beer of Britain’ (Slack et al, 2007). Additionally, the brewery’s estate has increased its number of pubs to slightly over 360 according to 2005 statistics. Slack et al (2007) attribute this monumental growth to the brewery’s spirited efforts in embracing technology to address its problematic data transfer system. The similarities and differences in the management of operations in the case of bmibaby and Fullers Brewery Operations strategy Operations function is a vital part of business for both bmibaby and Fullers Brewery. For bmibaby, the function defines the provision of services to the customer in the most efficient manner possible. Fullers Brewery is found to differ in this aspect because its operations function defines the production of goods and how they are distributed to relevant customers. In spite of this difference, research shows that the mentioned operation function is fundamental for both companies because it is concerned with the management of the inputs that both enterprises have to employ to have outputs. Slack et al (2007) concur with other researchers that the main driving force of operations for any business is to improve customer service. In this regards, all the employees in both companies embrace the spirit of teamwork to maintain positive levels of the much needed customer service. On the basis of operations strategy, bmibaby and Fullers Brewery utilise similar structural strategy. Study findings show that bmibaby has operation centres within the UK and destinations in Europe. Similarly, Fullers Brewery has in-house facilities stretching from Birmingham to Bristol presenting an equally domineering estate of pubs (Slack et al, 2007). Additionally, both bmibaby and Fullers Brewery demonstrate high capacity utilization of resources; use of ancillary sales to boost income; cost management and operate in similar environments as cited by Slack et al (2007). Apart from this, several differences abide. Slack and associates note the “use of demand management systems to maximize the utilization of aircraft; supply network design involving extensive outsourcing of ground services ; aircraft fleet of appropriate size, commonality of equipment to drive low maintenance costs” for bmibaby. Fullers Brewery on the other hand has set up high quality and appropriately located pubs with access to essential amenities to maximize income. Design Research has shown that a good design in business transactions brings about competitive advantage of an organisation. Moreover, Slack et al (2007) indicate that there is no successful organisation that lacks a tangible design. The similarities in design of products and service in regards to bmibaby and Fullers Brewery are numerous. Both companies share “access to information, competitive prices and value for money, good customer services, enjoyable experience and ease of ticket purchase” as examples of design. The difference inherent in both companies is found in their customer base. Since bmibaby target the “average consumer” and Fullers Brewery the “general population”, their marketing strategies differ in principle. Moreover, bmibaby design its product in many ways based on where they fly and when they do (Slack et al, 2007). There is a schedule which dictates what each aircraft does over the course of the day. The flying program must meet the demands of the high value business passengers and that of the leisure customers as noted by Slack et al (2007). This design is deemed crucial since it allows the company to get much value as it can out of its high value aircraft asset. Fullers Brewery seems to understand the design of the product with a big chunk of its income accruing from beer sales. Fullers Brewery is in a nice position compared to bmibaby because of its large customer base and its product has a global following. There is also amble entertainment time for revellers to make merry and enjoy themselves undisturbed. Planning and control Fullers Brewery and bmibaby compare on the planning and control of their operations management. Observations made by Slack et al (2007) indicate that scheduling is an important aspect for both companies in delivering their mandates to their respective customers. Significant differences are noticeable in that bmibaby is far much involved with outsourcing for its operations partners in order to enhance their customer experience (Slack et al, 2007). Fullers Brewery on the other hand permits “flexible approaches to customer scheduling, high-quality customer service through investment in staff training and development and use of quality planning and control; management of costs through flexible staffing and multi-skilling” (Slack et al, 2007). This approach ensures that the customer receives the right product at the right time. Supply chain management This in essence implies the processes involved in availing products and services from production point to the ultimate customer. bmibaby is reported to show a much greater involvement of supply chain partners in operations processes whereas Fullers Brewery focus on the revellers’ experience. Conversely, Fullers Brewery focus on the customer experience particularly satisfaction. Bmibaby is further demonstrated to focus on the technical aspects of service such as punctuality. Similarly, Slack and colleagues stress that managing the cost effectively and ensuring they use the resources effectively, Fullers Brewery relies heavily on the staff to operate a fool proof system while bmibaby use firebreaks in their aircrafts. Quality and Performance Quality has been a key consideration in the production process. The same has been associated with competitive advantage in the concerned companies. Comparable effects of this aspect in both bmibaby and Fullers Brewery are found in the manner each one strategizes to perform. Proponents claim that bmibaby came up with strategic goals that served to bring quality and performance to the fray. Foremost was to invest on a competitive skill force through outsourcing and innovative technologies as well as developing partnerships with stakeholders in IT to enforce external business growth and ensure convergence of technologies maximizing return on investment (Slack et al, 2007). From this, bmibaby successfully developed a transition plan without impacting the customer experience at all. Fullers Brewery on the other hand is found to regularly achieve high levels of customer satisfaction through a number of strategies including flexible staffing arrangements that are both part-time and multi-skilling. A highly trained team of staff help to maximize on returns. Most important aspects of the operations management to bmibaby and Fullers brewery Planning and control through the use outsourcing was the most important aspect of the operations management to bmibaby as indicated in earlier paragraphs. This aspect helped bmibaby to gain market share and deliver a customer experience that would promote customer loyalty. The key challenge they faced was on how to deliver a great customer experience without increasing costs. This was attained after partnering with Vertex with marked reduction in costs and showed the importance of teamwork (Slack et al, 2007). Staff at Fullers Brewery on the other hand revered the aspect of quality and performance because after they analysed the business problem and designed a solution using GPRS hand held terminals, they were able to track Fuller’s beer bottle in real-time, thus eliminating the mismatching errors caused by the batch processing (cited in Slack et al, 2007). Ever since the roll out of the GPRS hand held terminals in 2006, staff at Fullers Brewery “improved efficiency, field based operations and customer satisfaction” (Slack et al, 2007). Concluding submissions From the foregoing discourse, it is clear that there exist comparable similarities and differences in the operations management for both bmibaby and Fullers brewery. All the addressed aspects have registered substantial similarities and differences in both companies. Using the transformation model, it can be demonstrated that bmibaby employs such inputs as standard airport, a competitive skilled work force and innovative technologies to output low-cost air transportation services based on punctuality. Similarly, Fullers brewery use inputs like highly trained and multi-skilled staff, a wealthy estate of pubs and real-time data transfer system via the GPRS Wireless network to output products full of customer satisfaction. List of references Slack, N., Chambers, S., & Johnson, R. (2007). Operations management. Essex, United Kingdom: Pearson Education Limited. Read More