BUSINESS OPERATIONS MANAGEMENT

BUSINESS OPERATIONS MANAGEMENT

 Case #1 (High tone Electronics, Inc.)

Question 1

Operations management is quite paramount as it incorporates planning, controlling, managing and supervision of production as well as manufacturing. Implementing it ensures an entity optimizes resources such as capital, raw materials and labor. For Hightone electronics, it will determine whether initiating web-based purchasing will bolster performance and revenues for the entity. Web-based purchasing will also call for additional resources such as finance, HRM and IT. For instance, the HR function will oversee the employment of additional staff that will be maintaining the website and responding to client requests. The IT department will create the website, oversee it smooth operation and maintenance. The finance function will oversee financing and cost management for the entire process. George Gonzales is correct stipulating that incorporating web-based purchasing will not be “business as usual.” This is due to the fact that functional website require more time and resources. It might take the company some time before customers can order and get their products on time through the website. The corporation will also have to recruit more staff, invest in training them how to manage the website, handle clients and offer responses. Such changes will slow down some of the processes and also reduce revenue generation during the implementation season.

Question 2

For a good reputation through quality and proper servicing, HEI should ensure to employ ample customer service staff who will always be available to respond to queries raised by clients. The employees should have good knowledge of products handled by HEI. The company should also ensure they garner quality products which are in tandem with the client’s needs. After enacting the website, the company should work to ensure their customer service staff is always available to answer clients call. The products delivered to customers should also match those presented on the website with deliveries matching the timelines set on the platform.

Case#2 (Creature Care Animal Clinic)

Question 1

Inefficient inventory system

Dr. Barr does not have a formal inventory management system. All the physicians as well as the nurses are permitted to place purchase orders when need arises. This has caused the clinic to have excess inventories at certain instances. In some cases, the clinic has had multiple brands for one product. Excess inventory has encouraged expiration for certain products which accounts as a loss. The clinic also often runs out of certain stocks forcing them to purchase in nearby drug stores.

Improper scheduling

In Dr. Barr’s schedule, they are supposed to work together with Gene (fellow doctor) during the whole week and only exchange the mid week and weekend shift that is, Wednesday and Saturday. The same works for the nurses with the office manager working during the normal business hours. The assistance works during shift change instances (Wednesday evenings and Saturday). However, in reality, demands were high on Saturdays and one doctor could not cover the demand. Friday was also had a high demand as compared to the set Wednesday. Lack of congruency between the schedule on reality means human resources are wasted on Wednesday and should be transferred to Friday and Saturday.

Question 2

Dr. Barr’s schedule performed well in the clinic where she earlier worked compared to her clinic due to;

High pet number

Creature Care Clinic might be located in an area with a higher number of individuals owning pets. A large number of pets create a high demand on Friday and Saturdays.

Large working population

In the clinic where Dr. Barr earlier worked, demands were highly featured on Wednesday and Saturday. Creature clinic is normally quite busy during the weekend, that is, Friday and Saturday. This indicates that a large number of the animal owners are in the working class and often free during weekends.

Question 3; Reasons for inventory problems

The following are some of the reasons that may have contributed to inventory issues in the clinic;

Lack of a proper system

The clinic should have a procurement manager who is to oversee all the clinics orders. A procurement manager inhibits confusion by maintaining records and evaluating orders. Since the clinic lacked a responsible party for the function, physician and nurses made orders without considering the economic order quantity to avoid excesses and shortages.

Ignoring seasons

The clinics management may not be attentive to the seasonal changes at the clinic. Creating forecasts that ignore demand changes contributes to the build-up of excess stocks. Failing to identify elements influencing demand during specific seasons adjudges the accuracy of inventory management. For instance the clinic may lack the proper knowledge behind the high demands featured on Friday and Saturday. Limited accuracy may be the actual cause of shortages in bandages.

Question 4: What Dr. Barr should have done

Instituted a proper inventory management system

A proper IMS would have ensured the clinic orders a single brand at the right inventory amount. Such a strategy would inhibit stock deterioration through expiry, inhibit shortages and centralized the entire procurement system.

Initiated own schedule

Instead of borrowing schedule from former clinic where she was a residence, she would have initiated her own schedule suiting her clinics location. This would ensure duty allocation meet Friday and Saturday demands.

Question 5: Suggestions to Dr. Barr

The doctor should consider;

Implementing an Inventory Management System

The system should be responsible for overseeing orders from all clinical functions, evaluating product brands and maintaining stock levels at desired proportions.

Creating a new schedule

Dr Barr should consider amending the current schedule by adding more staff on Friday evenings and doctors on Saturday. The demands are much considerable during the tow days. Such a change will minimize human resource wastage featured on Wednesday.

Case #3

Question 1; importance of operations function in implementing organization strategy

The operations function oversees management of resources paramount in the production of an entities products and services. Through proper management, the available resources are efficiently scheduled and the workforce well managed under legal constraints and regulations set under the entities strategic plan. Examples of the decisions incorporated in operations management include raw material delivery and planning on operational changes. Through operational management, the operational department is able to plan, control and monitor operational decisions. Such decisions prioritize on individual function targets.

Since operational changes mainly prioritize on resource management, resource mismanagement by Victoria Chen by either over-budgeting on telephone lines and increased staff turnover may increase costs for Prime Bank. In the event where Victoria hires a small number of tellers, they may still not meet the needs of the customers and Prime Bank may end up not bolstering their services. Victoria may however aid the bank by hiring a number of tellers meeting the client demand. All the teller spots should be staffed especially during peak periods. Additionally, considering an additional parking space would be effective in redressing the congestion issue featured during peak hours. Ample budgeting for telephone lines will improve efficiency in the customer service docket necessary for better customer experience and smooth operations. This will be highly critical when it comes to helping Prime Bank.

Question 2: List of Changes for the operational function

Question 3

If the bank had a strategy of cutting costs instead of supporting customer service, parking facilities would be maintained at the existing capacity instead of expanding or leasing. Prime bank would also reduce its staff members to save on costs (payroll reduction). Larger customers would be forced to share queues with other clients to avoid having to hire additional financial managers. Prime Bank would also not consider investing in telephone lines as such a move would incur high costs for the bank. Cutting costs would conflict with all strategies induced in supporting customer service.