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Operations Management

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James Gavin

on 13 December 2013

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Transcript of Operations Management

Operations Management
Resort Quality Team
Definition of the Business
The Holiday Resort has hired a Junior quality Manager (Me) to investigate, based on the number of visitors, whether the operations system at the resort have been optimally designed.
I have made recommendations to improve quality systems and the service experience of visitors, which should improve the profitability and operations of the business. Current problems are:
Cut number of staff
Overspending catering allowances (Wastage)
Complaints over noise
Poor cleanliness
Staff rarely available
The Main task is to find out whether or not a resort quality team would improve the profitability of the business.

Customer Policy
At the moment the resort is at the Customer Service level of commitment to customers as the resort is providing customers with the basic level of customer service and just meeting the needs of customers.
The resort should aim to meet Customer Satisfaction and in order for it to do so it needs to meet and exceed customers expectations of the resort. If we are able to exceed customer’s expectations then they may tell other friends and families about there excellent experience they had at the resort. This requires all functions at the resort such as the accommodation, bars, entertainment and catering to be of good quality and having a quality team would look at all these processes and help improve the quality of service at the resort.

System Specification
Transformation Process Model
Hierarchy of performance Objectives
Quality of services is the most important internal performance objective because the resorts primary objective is to improve quality systems and the service of visitors. The quality of service is based on the measure of customer service, making sure staff are friendly and are able to help the customer as much as possible to make sure they exceed customer demands and meet customer satisfaction. The quality team is key to meeting this objective as they can optimally design the operation systems that the resort has thus improving the quality of service, meeting customer satisfaction.
Cost is equally important as quality as an internal performance objective because of the overspending from catering due to high (wastage), which is a main factors that the resort is failing in terms of profitability.
Flexibility towards meeting customer demands is a slightly important factor to make sure that the variety of services in the resort meet customer demands.
Dependability of the availability of service is the least important performance objective. It is to make sure that staff are always around to help customers and that they deliver customers demands of what the resort should provide.

Student Number: 1204321
Mostly families that tend to have young children looking for a cheap and fun holiday.
Tend to visit during school holidays.
They expect a good level of customer service that will meet their needs.
They expect the resort to have a high standard of quality throughout the site

Who is the Customer of the Quality Team?
Quality Team Objectives
The objectives of a new quality team are:
To improve the profitability of the business
To improve the quality of services at resort
Look at processes that need to be improved so that they meet customer’s demands
Reduce operating costs to improve profitability

Strategy Matrix
Customer Service Life cycle
Process Modeling
Inventory Management
Planning and Scheduling
Any Questions?
Quality Policy
Capacity- Break-even
Capacity - Financial Plan
Trade Offs
Cost Vs. Quality
Inventory List
Having a Quality Team will benefit Bognor Regis resort massively. They can improve the quality of key processes, which will help to improve the quality of the customer experience at the resort. Doing this will help the resort reach customer satisfaction, which will mean that customer expectation have been exceeded and therefore tell other people about their amazing experience at the resort, which will improve sales. The Quality Team saves the resort money as well by creating new cost-efficient processes and reducing the cost of inventories and quality procedures. Having a Quality Team will be very beneficial and will improve profitability of the Resort.
Most improvements in quality of services at the resort will lead to costs to rise. Quality is the essential part of the customers experience is one of the main factors that will help reach customer satisfaction. Introducing a new quality team will help to make this trade off so that when they improve quality cost won’t rise as much than it should do.

Resort Inventory
Cleaning supplies
Emergency supplies
Office stationary


entertainers equipment


Toilet rolls


Salt and Pepper Cruets

Inventory Policy
An inventory system would benefit the Resort to ensure that there are enough supplies to anticipate customer demand.
The bars and catering venues will use P systems where the time period between orders remains continuous but the order quantity differs such as food and drink which needs to be replenished regularly.
This helps to meet season demand, so when it is a school holidays where demand is highest, the Resort can anticipate the expected demand and avoid stock-outs.
In terms of the resort Quality Team they will require a P system as they only need essentials to do their jobs such as stationary, cleaning equipment, etc. which needs to be replenished regularly.
Forecasting will anticipate expected fluctuation in demand (mainly in school holidays)
Buying in bulk will save costs due to economies of scale

Re-order point
Perceptual Map
Service design
Phone Display
ABC Analysis
leaflet has been created to be placed in travel agents so that it will attract more customers to the resort.
Quality Management
Defining Quality
Measuring Quality
Pareto Diagram
Quality Process
Key Quality Processes
The key aim for the Quality Team is to deliver good quality service to customers to reach customer satisfaction. This involves looking at each process and making sure that customers receive top quality service. Doing this will help improve our standards of customer service and will help to reduce costs of operations.

Who is Responsible for Quality?
There are many people within the organisation who are responsible for quality. Quality Team are the main people responsible for quality as they aim to deliver quality in the organisation and make sure that other members of staff provide excellent service quality to customers. Managers of each area are also responsible for quality in their areas and making sure they are providing quality customer service.

Based on actual budget last year
Displayed in Rooms
Customer Services of Staff
Quality of Facilities
Quality of Catering
Quality of Accomidation
Quality of Bars
Quality of Entertainment at the Resort
Quality Control-
During each new quality improvement process made will start off with training the employee on how to complete the process right. This period is about 2 weeks, in which the Quality Team will conduct inspections after the employees have completed work to see if the process is top quality and too prevent any faults.
Quality Assurance-
After 2 Weeks the Quality Team will begin using quality assurance making sure that employees get it right first time, ensureing that employees check standards themselves and make sure there are zero faults. This will help to reduce costs and improve quality. The quality team will provide workers with a checklist too make sure they have made no faults in the process.
Quality Improvemen
t- After 4 week into the project the team will look at any faults with the new quality proccess and at quality measures (Parote diagram) to see if it has improved the quality of the process.
Quality Planning
- In the last 2 weeks the Quality Team plan for their next improvement, which needs to be completed following the same process, Quality control to quality assurance to quality improvement to quality planning.

During the busier months (holidays) We will need to take into account the increase in demand. We will need an additional member (temporary workers) of the Quality Team to deal with the increase in customer complaints during these busy periods. The sole purpose of this additional worker is to help with dealing with customer complaints and queries and helping the other members of the quality team. This way the rest of the Quality Team are not overworked and don’t have a heavy workload.

The Quality Team can save the resort 25% by creating new innovative processes that help to reduce costs in each area. Reducing the costs of inventories (Inventory Management) and improving quality process (Quality Policy) will help the resort to save money on each area of the resort.
This is an example of a typical day for a Member of the resort Quality Team. Most of the time they will be dealing with complaints and queries that customers are having
The Diagram on the left shows how planning the of projects for next. Each 2 Months there is a new quality management project for the quality team
Full transcript