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CAPE Industrial Services - case study

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PgDip/MSc OPERATIONS AND SERVICES MANAGEMENT OPERATIONS MANAGEMENT COURSEWORK 1 - CAPE INDUSTRIAL SERVICES Prepared by: George Gourlay Date: 27th August 2004 Executive summary The variety of the service sector makes it complicated to come up with useful generalisations concerning the management of service organisations. The means of classifying service models are indeed varied. CAPE Industrial Services is a provider of Multi-Disciplined Services to the Oil and Gas Industry and can be classified under the Professional Service category. Professional service is described as the provision of services with high customer contact and high labour intensity. The Oil Industry service sector continues to increase and is continuing to develop and that is a very important contribution to the gross domestic product (GDP) of all advanced economies and also contributes largely in terms of the percentage of workforce employed in the service sector. As a company in the service sector of the Oil and Gas Industry, CAPE are located and can be found almost anywhere around the world, in short CAPE'S services are accessible, incurring fewer costs to the customer for equipment and labour. Operational and Innovation developments are a part of CAPE'S continued improvement to serve the customers better and to compete with their rival competitors. CONTENTS PAGE 1.0 Introduction 4 2.0 Model of the Service 4 3.0 Service Design and Delivery 6 4.0 Service Strategy 7 5.0 Service Encounter: People in the Service 7 6.0 Managing Service Expectation and Capacity ...read more.


Charges built into the contract rates cover the costs of the additional project management. At times, services are requested that are not of the norm for CAPE, to service these Third party companies are brought in under the CAPE banner. While the cost of these services may vary much from the standard contract rates, excellent service is a must. Thus, extra costs are incurred for additional time and effort put into the contract by the CAPE managers. So as to make the services offered by CAPE more affordable and viable for their customers; the company tends to work on providing innovative ideas that will improve work ethics. Typical innovative ideas are the Introduction of Industrial Rope Access; this is a benefit to the customer as it cuts out the need for Scaffold or other means of conventional access solutions. Like other service companies, one of the common strategies of CAPE is to offer a volume discount or a reduced rate if the period of the contract can be extended. 4.0 Service Strategy Service companies in the Oil and Gas Industry have numerous strategies on how their rendered services can be better than competitors. Aside from maintaining quality and safety in service, one of the aims of the CAPE Industrial Services is to provide innovative ideas to their customers that will keep them ahead of their competitors whilst at the same time providing cost savings and improvements in quality to the customer. ...read more.


Virtual organisations can produce superior results because they harness market forces to combine competencies in ways that traditional organisations, using internal mechanisms, cannot (Chesbrough & Teece, 1996). Once constituted, the "lead organisation" operates the virtual organisation by co-ordinating parallel tasks through the use of sophisticated information technologies and management systems, thus creating a coherent system. A virtual organisation's membership changes over time as market conditions and technologies shift and the strategies and resources of the constituent organisations evolve. While virtual organisations are most often found in high technology industries such as the development of new computer systems, some characteristics of CAPE Industrial Services make it amenable to the successful operation of a company that services the needs of the Oil and gas Industry. 9.0 Conclusion While CAPE'S Operations may take a lot of resources to maintain the business and the quality of service provided, the benefits that it can provide outweigh the expense incurred. Aside from that, the services offered by CAPE will definitely increase in quality, hence, greatly contributing to the goals of the company. Through careful and effective planning, budgeting and implementation, CAPE Industrial Services can begin on making little changes, improving the company one step at a time. The important thing is that constant adaptation to change is being done and that the Operations management is coming up with ways on how to improve the services that are provided by the company and keeping the customer coming back. 10. ...read more.

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