Important Factors in Operations Management - Assignment Example

OPERATIONS MANAGEMENT – ASSIGNMENT 3 Question 1) factors that are important in the evaluation of the given options. The other factors that might also be important in the evaluation of each of the options include; i. Accessibility: whatever the location that the University management decides to establish the desired stadium it has to consider how each of the targeted attendance will access the stadium. Some factors to consider here include availability of transport to and from the stadium, the geographical location of the stadium, and the condition of the traffic leading to the stadium1. For instance, if option one is chosen, it will mean that the large number of fans who live in Dallas will continue commuting for long distances and experiencing the traffic jams. For the second and the third option the SWU will have to incur addition cost in taking the students to and from the stadium. ii. Capacity: the size of the desired stadium should be large enough to ensure there is availability of other social amenities. Football games never exist in isolation. It has to depend on other supporting services in order to achieve its end. For instance, some fans and also the players would need some refreshments and still others may require some catering and accommodation services2. Therefore, the ground on which the stadium is built or rather the neighborhood should have these facilities. Question 2) Crossover chart Key factors Weight given by Gardner Weight given by the administration Scores (out 150) Cost “Total Cost” = “Fixed Cost” + “Variable Cost” Existing site New site 3 miles from Dallas Cowboys Facility Existing site New site 3 miles from Dallas Cowboys Facility Convenience 1/5 1/6 10 7 6 1,000,000 + (1*375,000)= 1,375,000 5,000,000+(1*375,000)= 5,750,000 1,000,000 + (10 * 15,000) =150,000 Guaranteed Availability for Next Season 1/5 1/3 11 5 15 Comfort 1/5 1/3 8 14 14 Cost 1/5 1/12 15 4 13 National Image 1/5 1/12 7 10 10 The scores of out of 150 is the total number of people that were involved in the rating, that is, 50 students, 50 members from the Booster Club, and 50 faculty staff from the college3. Question 3a) Best option for South Western University for equal weighing of the factors Key factors Weight Scores (out 150) Weighted Scores Existing site New site 3 miles from campus Dallas Cowboys Facility Existing site New site 3 miles from campus Dallas Cowboys Facility Convenience 0.2 10 7 6 (0.2)(10)=2.0 (0.2)(7)=1.4 (0.2)(6)=1.2 Guaranteed Availability for Next Season 0.2 11 5 15 (0.2)(11)=2.2 (0.2)(5)=1.0 (0.2)(15)=3.0 Comfort 0.2 8 14 14 (0.2)(8)=1.6 (0.2)(14)=2.8 (0.2)(14)=2.8 Cost 0.2 15 4 13 (0.2)(15)=3.0 (0.2)(4)=0.8 (0.2)(13)=2.6 National Image 0.2 7 10 10 (0.2)(7)=1.4 (0.2)(10)=2.0 (0.2)(10)=2.0 Total 1.0 13.2 8.0 11.6 The existing site is the best option. Therefore the existing site should be recommended since it has the highest point score of 13.2 compared to the other locations which have less point score4. Question 3b) Best option for South Western University for weightings of the factors allocated by the administration. Key factors Weight By the administration Scores (out 150) Weighted Scores Existing site New site 3 miles from campus Dallas Cowboys Facility Existing site New site 3 miles from campus Dallas Cowboys Facility Convenience 1/6 10 7 6 (1/6)(10)=1.6 (1/6)(7)=1.17 (1/6)(6)=1.0 Guaranteed Availability for Next Season 1/3 11 5 15 (1/3)(11)=3.67 (1/3)(5)=1.67 (1/3)(15)=5.0 Comfort 1/3 8 14 14 (1/3)(8)=2.67 (1/3)(14)=4.67 (1/3)(14)=4.67 Cost 1/12 15 4 13 (1/12)(15)=1.25 (1/12)(4)=0.33 (1/12)(13)=1.08 National Image 1/12 7 10 10 (1/12)(7)=0.58 (1/12)(10)=0.83 (1/12)(10)=0.83 Total 1 9.77 8.67 12.58 Note that the weight allocated by the administration for convenience=1/6, guaranteed availability for next season=1/3, comfort=1/3, cost=1/12, and national image=1/12 Therefore it is recommended that the South Western University take on the Dallas Cowboy Facility since it has the highest point score of 12.58 compared to the other locations which have less5. Question 4) Recommendation of a location and the reasons for the recommendation. The cost will be considered per year (annum) Cost per attendee: Existing site = $ 1, New site 3 miles from campus = $ 2 Expected attendance per game= 75,000 Therefore, the Expected annual attendance = 75,000 * 5 = 375,000 since there are 5 home games per season The Total cost = the fixed cost + the variable cost The Variable Cost = cost per attendee * number of attendees Location Fixed Cost ($) Variable Cost ($) Total Cost ($) Existing site 1,000,000 1 1,375,000 New site 3 miles from campus 5,000,000 2 5,750,000 Dallas Cowboys Facility 1,000,000 10 * 15,000 =150,000 1,150,000 The location recommended is Dallas Cowboys facility. On the basis of cost the location recommended is Dallas Cowboys Facility since it has the least total cost of $ 1,150,000 per year compared to the other locations which have more cost. This will mean that using this stadium will be cost effective to run and hence the “South Western University” stands to gain from holding these games. If the other locations were used the University may run at a loss hence they should be avoided. Dallas Cowboys Facility also has the highest point-score based on the weightings by South Western University for weightings of the factors allocated by the administration. Based on these two considerations therefore, it is appropriate to recommend “Dallas Cowboys Facility” for the use of the SWU home games. The negatives of the other locations outweigh the benefits that would accrue from their use. For instance, the expansion of the existing site, in addition to the total annual cost, it requires an initial cash outlay of $ 12 million and also runs the risk of not completing the expansion within a nine month period which means it may find itself violating the contract. The option of building a New site that is 3 miles from campus means put an excessive loan (debt) burden that would put pressure on the balance sheet of the SWU6. The large numbers of fans live in Dallas and therefore, shifting the stadium to that place will solve them the problem of having to commute for long distances and the traffic jam experience. Notice that when the needs of majority are satisfied, the reputation and the goodwill is guaranteed. REFERENCES Brown, S, Blackmon, K and Cousins, P Operations management: policy, practice and performance improvement. Butterworth, Heinemann, 2001. Goetz, B Quantitative methods: a survey and guide for managers. McGraw-Hill, New York, 1965. Gordin, B Production handbook. Ronald Press, Wisconsin, 1958. Johnston, R and Clark, G Service operations management: improving service industry. Prentice Hall, New York, 2008. Mark, M Fundamentals of Operations Management. McGraw-Hill, Irwin, 2002. Reid, R. D and Sanders, N. R Operations Management: An Integrated Approach. John Wiley and Sons, New York, 2010. Read More