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Operations Management Case Studies

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OPERATIONS MANAGEMENT CASE STUDIES TOPICS COVERED 1 LONDON ZOO: NOTES FROM CASE STUDY Objectives: Recognise need to increase visitor numbers yet provide high quality of service. Need to know what they're doing right and wrong. Need a way measure quality of service that they provide. Need to organise operations to maximise their experience. View that zoos are one of the problems rather than solution of animal conservation. Measure if they're giving customers what they want. To ensure service is as wanted and expected; or exceeds expectations - halo effect - spread positive reputation, resultant increase in visitors. Info: Good view of Regents Park. Can see visitors arriving and walking to main entrance from car park or tube station. Started off small; then expanded rapidly to reach present size of 36 acres. Collection expanded as did mass building work from 1830 - 1930. Listed buildings can't be demolished and must be renovated within strict guidelines. Severe lack of capital investment in infrastructure in 1960 - 1970. Children's & Petting Zoo rebuilt late 1980s (society) Awarded �2m, to build an education centre (society) Wildlife attractions showed lowest consistent absolute growth, fall in percentage terms. Decreasing market size, increasing number of new entrants and competitors, other visitor attractions expanded rapidly. Last 25 years lack of investment, new attractions, facilities, educational, conservational development or its image. Major deficit in mid 1970. Following one off government grant and a number of strategy reports; major changed announced. 80% of revenue produced from gate receipts but due to private donations received ramined open. 1992: Focus on conservation of animals with breeding programmes for endangered species. Change from "good day out" to focus on "peoples intelligence". Large infrastructural changes and reorganisation required / finance and the consequences of these. Developments include: childrens zoo, education centre, restoration of terraces and reintroduction of bears. Staff redundancies and size of animal collection reduced. Emphasis on cost cutting evaluation of species in the collection. ...read more.


Flow of transformed resources is dictated by this. Space as capactity; use of space; visibility, safety, flow, flexiblity, accessibility, handling, distance, security and layout type: fixed position layout, proess layout, product layout, cell layout. Process Layout: All the large an more expensive floor-standing machines are grouped together by type. Fixed Position Layout: Although commonly used for products that are too large or heavy to move; with the process of manufacturing including single pieces of equipment shared by joiners an their own complte set of hand tools; this would suggest a fixed position wehre equipment is brought to the product. Fixed Position: Adv. Very high product and mix flexibility, product customer not moved, high variety of tasks for staff. Disadv. Very high unit costs, scheduling spcae and activities can be difficult. Functional (Process): Adv. High product and mix flexibility, relatively robust in case of disruptions, easy to supervise. Disadv. Low utilization, complex flow. B&B has a long thin layout; due to the process steps made to make staircases (from cutting to manual assembly) Long - thin process: controlled flow, greater efficiency, simple handling Short - fat process: higher volume & mix flexibility, greater robustness, higher ownership 4 HOLLY FARM: NOTES FROM CASE STUDY Info: 1993 Mixed Dairy Farm Opened Up to Public Response to diminishing profits from milk and cereals. Invested a 40 space car park and six space car park for 40 seater coaches. Milking parlour viewing area, Special trailers to transport guests, rare breeds paddock, children's adventure playground, picnic area, farm shop. Also a factory making ice-cream. Number of visitors rose; due to advertising. Levelled at 15,000 visitors per year. Farm Opened at 11:00 am Closed 7:00pm 90% arrived 12:30, picnic 2pm, tour until 4pm; 20% visit farm shop and leave, remainder view milking, visit shop, then leave. �4 entry fee. Opened April - October inclusive. Demand too low otherwise. Midweek demand too low; Friday - Monday commercially viable, with almost twice as many visitors on Sat's and Sundays. ...read more.


This contains magnetic strips of length proportional to the work elements that have to be arranged to fit in with the new output requirements. Quality Has to meet standards from customers. Total quality programme started 8 years ago had slow steady impact on defect rates. Over past 8 years defect rates measured by the customer have reduced from 4% to 0.16%. Today 4 staff in quality section serving the whole plant. One spends lots of tie in metrology room - samples taken exacting measurement. Another consults engineers to improve machine capability. Third works with suppliers and customers. Big factors were: introduction of SPC, introduction of pokayoke devices, supplier development programme. Delivery Customers expect defect free products - exactly on time in exact required quantity. Measure performance by individual delivery; any shortage = zero performance on that element. 8 years ago performance was 20%, now its high 90% range. Problem now are quantities where despite large downstream buffer inventories, part shortages still persist. Problem customers don't stick to their own schedule forecasts but expect perfect delivery performance. Inventory Inventory is stocked at very intermediate stage. Kaizen Company established Kaizen Promotion Office 3 years ago. Aim to reduce waste and promote lean initiatives. Kaizen promotion manager also responsibility for the MRPII system production control office.. All operators up through education programme. Covering SOPs. 5S campaign was quite successful where attempts made to locate everything in the correct place. Changeover times addressed. Benchmarking revealed that current levels are still excessive. Current Situation Under pressure to reduce costs and improve quality. Most customers expect price reductions of between 2% and 6% demand perfect delivery performance and expect defect rates to be reduced below 0.01%. Volumes, which grew steadily during most of the 1990s. Meeting Company now in danger of big decline in business. This was due not just to the economic climate but also to the relatively slow rate of improvement in company performance. Without improvements in delivery performance the company would not win new business. . ...read more.

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