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Kennels

Kennels poster for Operations Management
by

Alex Kew

on 10 December 2012

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Transcript of Kennels

Kennels A couple named Katie and Jim want to start up a high end kennel business. They have found a business but are unsure if its right for them. The key problem is, will this property in Devon with kennels be financially viable to meet their specific need. Giving then an income of £30,000 after tax. Innovation The hierarchy of internal performance objectives Strategy Matrix As innovation is not a key resource to Kennels due to the fact the service they are offering is not new. The type of innovation Kennels is likely to implement is, incremental innovation. This type of innovation is not radically new therefore does not have the high risk normally associated with innovation. It is a new way of doing something for an individual business, reviewing exciting products and services.

The system, roles and techniques put in place should be finding ways to improve the services for the customer and also review ways in which the business process is run to reduce costs. As innovation is not a key factor a full time member of staff is not needed in this role therefore, innovation could just be managed via Katie and Jim holding staff meetings seeing what the workforce feel could be improved. Process Map Service Blueprint Location Capacity Planning The Systems Approach The Kennels business last year had a serious over capacity problem, meaning they have the resources to do a lot more business than they actually do. With the cattery never over 10% most of the year and the kennels basically empty apart from 3 specific months of the year.

This problem could be corrected by increased advertising in the quieter months. I have suggested doing this and including it in my financial plan. Introduction Layout Inventory Management Inventory management is an important part of kennels although; they do not need a complex system. Kennels have to ensure they have enough supplies to feed all the dogs and cats, and be able to carry out the additional services.

The system used by kennels to manage its inventory level would be a P-System. This is because the time period of ordering the stock would remain constant, ordering foods and additional service supplies once a week. However, the quantity ordered will be dependent on bookings to ensure the kennel is not over or under stocked. I selected the P-system as the goods being purchased are reasonably inexpensive, time period between orders will remains constant and only the quantity ordered will change. Planing and Scheduling Financial plan Supply Chain Design Quality Policy Summary Customer Policy Order Life cycle When selecting a supplier there are a number of factors to consider, not only price. Quality is important however; as kennels would be buying a product from a wholesaler this would not be a key factor determining which supplier they would go for. The two key factors when looking at the supply chain management would be the dependability and the price. The supplier selected would have to be able to offer various quantity orders through-out the year in order to meet the changing occupancy levels. This is similar to what I stated in inventory management. Price would be the second most important factor after dependability getting the best possible deal. • Getting the right products to meet different needs of Pets (nutrition needs).
• Ensuring we get supplies from more than one supplier to reduce the chance of running out of stock if one supplier can’t deliver on time.
• Managing inventories, keeping a high level of inventories to ensure we don’t run out of food for the dogs. Scheduling Addition staff Quality of service and flexibility of service will be the most important factors. This will allow Kennels to offer a range of services meeting a varied range of customers pets needs and wants. This will ensure Kennels has strong customer retention.
Dependability is the second most important factor insuring that they can offer the service all year around even in the busiest periods. Ensuring no customer walks away without the correct level of service. This is important to enhance the reputation of the business.
Cost is the least important factor as i feel it will only be a small part of the consumers decision making process as the service on offer is of high quality aiming to meet an array of services. This should allow Kennels to offer the higher prices. Taking the dogs out of kennel to exercise. The key layout issues for Kennels are not the physical issue of where kennels will go as these are all ready in place. The key issue is the look and the feel of the Kennels service to give off the impression of a high quality and friendly services. This shows that after tax Jim and Katie have profits in excess of £30,000 this therefore, meets there requirement of having earning of the same level currently after tax. The variable cost per unit was calculate by taking an average from the number of cats and dogs taking into account that the dog kennel is 80% of the business. This factor was also taken into account when calculating the average selling price. One part time member of staff would be required for the majority of months to ensure all work is completed. As Kennels is a seasonal service a part-time member of staff will be employed to ensure all work is complete. During the busiest periods July, August and December the part-time member of staff will have to be able to complete addition hours. I looked at students as my part-time workforce they should be able to do increased hours during these time, as they have time off during this holiday. The Break-Even Point for kennel is: 3740 When looking at the customer policy it is important to ensure Kennels not only meets customer service levels but also customer success.
Ensuring Kennels give customers beyond what they actually want and need.
This would then ensure they maintain a strong customer relationship, leading to increased customer retention. This will be important ensuring Kennels continues to be successful. Here i have compared two properties the Kennels property in Devon and an alternative at a similar price. Comparing the benefits of being based in either Kent or Devon. Tangibles- Ensuring the physical facilities and equipment look professional and of a high standard.

Reliability- Guaranteeing that Kennels have the reputation of being a reliable business that customer can depend on.

Responsiveness- If there is an issue or problem customers can see immediate action been taken to resolve the issue so it either does not reoccur or to fix an initial problem, a willingness to help.

Assurance- Staff giving assurance making sure customers feel at ease leaving their pet. Staff spending time with the animal before owner leaves to send this message across.

Empathy- Ensuring staff comes across as caring, giving specific attention to ever customer. Availability- This is where the dependability would need to be taken into account, ensuring Kennels never turns away customers.

Professionalism- Coming across in a professional manor, making customers feel they are leaving their pet in a controlled organisation.

Timeliness- This is not a key factor however ensuing customer don’t have to wait to long to check in or check out is important.

Completeness- Ensuring that the full service is completed at a high quality.

Pleasantness- Making sure staff have the correct working attitudes, to work not only with pets but also, good people skills to be able to talk to customers. I feel that the Kennels property in Devon is a suitable business for Jim and Katie, as I have demonstrated in my financial plan it would be possible for them to maintain there current income after tax. Allowing them to have the lifestyle they desire with earning over £30,000 after tax.

However this would come at a cost of working a large amount of hours as a kennel business would not be closed over weekends therefore I have taken that fact into account, when calculating the expected revenue saying that Kennels would be open 30 day a month.

Therefore i feel Jim and Katie could go for the Devon property as it is financially right for them. Although looking at alternative properties, like the Kent property for example may be beneficial investigating into the property further and seeing if this is more financially viable before committing to the Devon property. The customer order life cycle will begin when a pet owner is booking or participating in a task, which will leave them unable for a period of time to look after their pet. This will then mean they will have to make an inquiry about the what the Kennels offers, leading to a booking. References From this we can see that Kennels is a seasonal product with higher demand in July, August and December. July and August the kennel industry is busy for the hole of these two months according to the case study. Although December has high demand it is not as high as July and August as again based on the case study the Kennel is only busy for the period of around a week a not the full month. Measures For Kennels to understand true customer opinions on the quality of service on offer a survey could be put in place. This could then be used to measure customers opinions on the quality of service, asking them to rank aspects of the business for example how helpful staff were. This would then allow Kennels to improve upon part of the business they are doing poorly and find out what customers like about the service. 10 dimensions Control To ensure Kennels always maintains a high level of quality control a basic check list could be put in place. This could be of information to give customers and questions to ask also, actions to take in specific situations. for example; when a customer checks in spend a couple of minutes talking to the customer while their pet become use to you. This would ensure that every customer receives the same service. This process map is the more in depth stages which would be taken when taking the dogs out of the kennel to exercise. This is what action should be taken if any problems arise during this process. Break even Analysis Reviewed Break-Even Analysis The new break even point is now: 3959 Due to the findings in the scheduling and planning it is clear to see staff will need to be employed. With this new information i have complete a new break even analysis including wages. This shows how the wages were calculated looking at the figures from the table additional help needed. Devon.gov.uk (2011) Mid year estimates, Devon and districts. Available at: http://www.devon.gov.uk/index/councildemocracy/improving_our_services/facts_figures_and_statistics/factsandfigures/thepeople/peopleestandproj/peoplepopestimates/peoplemyedevon2-2.htm
Accessed: 22/11/12.

Kent County Council. (2012) Unemployment in Kent. Kent: p.1 https://shareweb.kent.gov.uk/Documents/facts-and-figures/Unemployment/un10-2012.pdf

Kent.gov.uk (2011) Population and census. [online] Available at: http://www.kent.gov.uk/your_council/kent_facts_and_figures/population_and_census.aspx
Accessed: 22/11/12.

Leseure, M. (2010). Key concepts in operations management. Los Angeles, SAGE. M

Maps.google.co.uk (n.d.) Google Maps. Available at: http://maps.google.co.uk/
Accessed: 22/11/12.

Swo.org.uk (2012) Devon (Local Profiles 2012) | South West Observatory. [online] Available at: http://www.swo.org.uk/local-profiles/devon/
Accessed: 22/11/12. Coming to the Location Decision Local Customer Base Availability of full time workers Capacity of kennel Size of available outside space Availability of part time workers References:
Devon.gov.uk (2011)
Kent County Council. (2012)
Kent.gov.uk (2011)
Maps.google.co.uk (n.d.)
Swo.org.uk (2012) This is the charts and ranking system used in order to determine what score each location would gain in each section.
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