In: Operations Management
SHEENA Sheena had worked for the same Fortune 500 Company for most 15 years. Although the company had gone through some tough times, things were starting to turn around. Customer orders were up, and quality and productivity had improved dramatically from what they had been only a few years earlier due companywide quality improvement program. So, it comes as a real shock to Sheena and about 400 of her co-workers when they were suddenly terminated following the new CEO’s decision to downsize the company. After recovering from the initial shock, Sheena tried to find employment elsewhere. Despite her efforts, after eight months of searching she was no closer to finding a job than the day she started. Her funds were being depleted and she was getting more discouraged. There was one bright spot, though: She was able to bring in a little money by mowing lawns for her neighbors. She got involved quite by chance when she heard one neighbor remark that now that his children were on their own, nobody was around to cut the grass. Almost jokingly, Sheena asked him how much he’d be willing to pay. Soon Sheena was mowing the lawns of five neighbors. Other neighbors wanted her to work on their lawns, but she didn’t feel that she could spare any more time from her job search. However, as the rejection letters began to pile up, Sheena knew she had to make an important decision in her life. On a rainy Tuesday morning, she decided to go into business for herself taking care of neighborhood lawns. She was relieved to give up the stress of job hunting, and she was excited about the prospects of being her own boss. But she was also fearful of being completely on her own. Nevertheless, Sheena was determined to make a go of it. At first, business was a little slow, but once people realized Sheena was available, many asked her to take care of their lawns. Some people were simply glad to turn - the work over to her; others switched from professional lawn care services. By the end of her first year in business, Sheena knew she could earn a living this way. She also performed other services such as fertilizing lawns, weeding gardens, and trimming shrubbery. Business became so good that Sheena hired two part-time workers to assist her and, even then, she believed she could expand further if she wanted to. Questions
1. Explain three (3) ways Sheena’s customers are most likely to judge the quality of her lawn care services? (6marks)
2. Sheena is the operations manager of her business. Among her responsibilities are forecasting, inventory management, scheduling, quality assurance, and maintenance. a) What kind of things would likely require forecast? (2marks)
b) What inventory items does Sheena probably have? Name one inventory decision she has to make periodically. (3marks)
c) What scheduling must she do? What things might occur to disrupt schedules and cause Sheena to reschedule? (3marks)
d) Name and explain two (2) of the approaches Sheena used in her business. (10marks)
3. Describe three (3) functions that can affect Sheena’s competitiveness. (6marks)
Question 2
With relevant example of your choice, explain the important framework for managing operations used by production firm .
Question 3
Critically analyze the difference and the point of convergence between floor inspection and functional inspection.
Answer 1:
Sheena’s customers will most likely judge the quality of her lawn care services on the basis of following three parameters:
1. Her performance that will be evident from her work
2. Time taken by her to complete the work.
3. Sheena’s price for performing the services as compared to that of her competitors.
Answer 2-a:
Sheena would need the trend of the demand of customers from the previous period of same month or same week for forecasting.
Answer 2-b:
Sheena will be having tools and equipments in her inventory along with the fertilizers and other crop enhancing chemicals. She needs to make the periodic decision for fertilizers and the chemicals requirements.
Answer 2-c:
Sheena must schedule the processing of various laws on the basis of time when the lawns are required to be processed and the human resources available for processing. Simultaneous and sudden orders may disrupt the previously made schedules which may require sheena to make new schedule.
Answer 2-d:
Two approaches:
1. Sheena used network marketing approach to acquire the projects.
2. Sheena expanded the business by providing the services such as fertilizing lawns, weeding gardens, and trimming shrubbery.
Answer 3:
Three functions that can affect Sheena’s competitiveness are:
1. She have no experience of lawn mowing which can make the quality of her services inferior as compared to that of her competitors.
2. If the competitor provides services at low cost with the better quality than Sheena, then she could lose her business.
3. Sheena’s customers could be acquired by the competitors through mass marketing campaign.