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Case Study

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by

Pat Cotter

on 29 October 2015

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Transcript of Case Study

Case Study
Team 4
Fergal Brosnan
Pat Cotter
Pádraig Fahey
David O’Carroll
John O’Driscoll

Case Study Questions
Background to Case Study
Approach taken by Team 4
Farm Day-to-Day Problem Statements
Preserve Production
Visitor Level Loading
Tractor Ride Improvements
Visitor Car Park Development
Managment Structure
New Venture Recommendation
Conclusion

Agenda

Jim and Mandy Walker have grown their agri-tourism enterprise organically over 6 years.

Pick Your Own
Petting Zoo
Heritage Displays
Tractor Rides
Preserving Kitchen
Farm Shop
Bakery
“I’ve never had so much fun in my life”
Need to design and develop the operations processes to meet customer demand e.g. preserve manufacture

Development of labour model – too reliant on seasonal labour and goodwill

Organic / Unstructured growth over the past 6 years. Not all support services capable of meeting demand e.g. car park and tractor

Seasonality of the farm visitors - no level loading within the week (peaks at weekends) and significant in visitor numbers in Summer months.

Jim and Mandy - Personal commitment , work load, inability to look strategically

Problem Statements Identified
Standardised working week not in place for employees
Issues with reliability of supply
Attraction available during peak periods
Minimal Inventory carried throughout the year
Product always available for customer
Capacity to increase manufacturing capacity when required.
Last Year’s Scenario Preserve [Jam] Production

Potential Operating Scenarios

Excess Inventory carried throughout the year
Inventory exceeds the storage capacity from May to July
Continuously manufacturing at capacity
Highest manufacturing costs.

Standardised working week for all employees
Attraction available during peak visitor periods



Higher manufacturing costs.
Increased manufacturing demand during peak visitor periods.
Standardised working week for all employees
Attraction available during peak periods

Minimal Inventory Carried Product always available for customer
Capacity to increase manufacturing capacity when required.



Shortages on Stock will occur in August and September.
Attraction not available during peak visitor periods

Lowest Manufacturing Costs
Minimal Inventory Carried throughout the year
Standardised working week for all employees
Capacity to increase manufacturing capacity when required.

5 day operation
7 day operation
5 day operation & Jun to Sept 7 days.
5 day operation & Jan & Feb 7 days.
Preserve Manufacturing carried out all year round on 5 day operation except for June to September at 7 day operation.
Increased manufacturing demand during peak visitor periods.
Standardised working week for all employees
Attraction available during peak periods
Minimal Inventory Carried Product always available for customer
Capacity to increase manufacturing capacity when required.



Operating Scenario Recommendation

Level Loading of Visitors

Significant differential in demand between peak Summer months and off peak Winter months.

Challenges
labour ulitisation
equipment utilisation
Inventory holding
Customer Service

Winter and mid-week school tours
Winter and mid-week attractions e.g. Christmas, Halloween and Valentine’s Day events
Bundling of offers
Off peak entrance fee reduction
Farmers markets
Breakfast and coffee menu
Hosting evening and mid-week meetings, demonstrations and lecturers
agriculture
home growing
gardening
history
preserve/cider/chutney manufacture…….

Visitor Level Loading Proposals

Tractor Ride Productivity

Demand greater then capability during key peak periods.
Excessive queuing = Unhappy customers

One Tractor Capacity

Potential Scenarios

Maintain Journey Time at 20 min
Shorted waiting times from 10min to 5min
Rent / Borrow Tractor at known peak periods
Minimal Queuing
Little Redundant Labour and Resources
Minimal Additional Costs
Formalise the Preserve manufacture to a 5 day week in off peak periods with 7 day operation from July to September

Develop the tractor output and rent/borrow additional tractor during known peak periods. Charge nominal fee for tractor ride.

Rent local space at peak periods, offer early/late bird to level load Car Park and charge for peak hour.

Encourage a more level loading of farm visitors – school trips, talks, incentives

Hire Professional Operations staff to run day to day.
How could the Farm's Day to Day Operations be improved?
Background
Case Study Questions
Visitor Trends
Average stay: 3.2 Hours
Major Congestion observed
in Month of August

What Advice would you give to Jim and Mandy regarding this years "New Venture"?

Development of School Tours

Introduction of the wheat maze will overwhelm the existing business, therefore Team 4 advises to stabilize the existing business first and develop firm that has sustainable growth.



Team 4 also advises Jim and Mandy introduce a Bearded Dragon aquarium
However...
Recommendation
Rent a local Farmers field during peak month.
Incentivised early/Late Bird to level load demand for carpark
Penalise mid-day arrivals by adding nominal carpark fee
Thanks
Q & A
Team Process of Investigation
How could the Farm's Day to Day Operations be improved?

What Advice would you give to Jim and Mandy regarding this years "New Venture"?
Recommendation
Minimal Charge for Tractor Ride
reduces the tractor queuing
increases the customer satisfaction
increases revenue
Management Structure
‘There is also the problem of complexity. Every time we introduce a new attraction, the whole business gets that little bit more complex to manage.

Although we enjoy it tremendously, both Mandy and I are spreading ourselves thinly over an ever widening range of activi-ties.’ Mandy was also concerned over this.

‘I’m starting to feel that my time is being taken up in managing the day-to-day problems of the business.
This does not leave time either for thinking about the overall direction in which we should be going, or spending time talking with the staff.
The Problem
Recommendation
Hire Operations manager to run the Day to Day

Invest in time and resources in staff development and stratigic planning
Side Story:
Penrosian concept at play within the case study:
Utilizing unpicked Berry's that would become waste produce unless used.

This department decided that the firm could go into the production of wood naval stores (rosin, turpentine, and pine oil) obtained from the stumps of the long-leaf southern pine -like linters, a waste product of another industry.

REF: Hercules Case Study
Penrose at Play?
Each Carpark Space used 3.4 times over the month of August. [11 Hr open]
Full transcript