Operation Management Degree Weston House - Case Study Example

Operation Management OPERATION MANAGEMENT Titus Rock Manickam Order No. 284280 28 March 2009 OPERATION MANAGEMENT Starting from theoretical approaches to 'quality', explain how quality could be defined at Wishton House. Is there a difference between the definition for the caf' and the development team' Quality is an issue at Wishton House. The development of "Rebellion Arising 4" (RA4) was behind schedule and costs were rising. There were many errors that were occurring with RA4 and it was stalling progress. The range of complaints and concerns raised by staff from various departments were: Version control is poor Coding errors appear all the time There is no point in checking something that is not tested Nobody can see the way the system is working In each department there were quality problems. Hassan is concerned that his managers were not performing at their best. Now the issue is to get the managers to improve their performance. Hassan has to take fast decisions in order to catch up with lost time. They are behind schedule with RA4. Susan has mentioned that they discuss the issue at the caf' when they meet. The caf' was very good in many respects, but problems were occurring since the new manager had taken over towards the end of the previous year. The caf' offered hot food for breakfast and lunch, snacks and sandwiches throughout the day and an out-of-hour's service area with tea and coffee and machine-supplied snacks. This had been a replacement for the 'hot food' service that had been available the previous year as part of cost saving measures that the new manager introduced. At that time, the software developers used to use the caf' in the evening, as they often worked late into the night but were rarely to be seen in the current times. The caf' had good reputation, but that was changing. The caf' seemed to be now bogged with problems such as: Amount of time spent queuing in the caf' Lots of the menu not available by 1 pm Hot food was served cold, and coffee machines do not work There were always queues at the start of lunch Frequently the menu choice was not available Presentation was not appealing The bread was never fresh on Mondays Main menu item not available at start of lunch The meals were expensive The queues in the caf' were ridiculous Added to the above, the standard of the freshly prepared food varied enormously and stock outs were getting worse with more occasions when ingredients were missing or late and even some of the snacks supplies were becoming erratic. The canteen manager appeared to be having problems with a number of suppliers and this was having a big impact on the service offered. Obviously, there is a difference between the definition of quality for the caf' and the development team. The difference is limited to the kind of problems. However, conditions both at the caf' and the development team were worsening. Hassan needs to get to grips with the software development teams. Quality is a big issue here; your task is to recommend ways in which they can assess and analyze the problems in more detail using suitable quality assessment. There is no doubt that the software development teams need a shot in the arm. It is pointless to blame anyone. The environment has deteriorated to an extent that nobody is able to produce quality work. Hassan has to make moves that will ensure proper working conditions to enable the software development teams perform to their maximum potential. In this situation, kaizen has the capability to bring about the necessary transformation. Actually, kaizen is the rallying point. Hassan must draw from the principles of kaizen and apply them to work for Wishton House. Basically, kaizen in Japanese means "to become good." In order to become good, there are some principles that must be followed. The foundational principles of kaizen are: teamwork, personal discipline, improved morale, quality circles, and suggestions for improvement. These are broad principles and Hassan must define them in the context of Wishton House so that the rank and file in the company feels the change for the better (Kaizen philosophy and Kaizen method). Undoubtedly, Wishton House has good experience in teamwork and discipline. Otherwise, they would not have got the taste of successes in RA1 and RA3. There appears to be some reason for the drop in concentration for the poor level of workmanship the development teams have been exhibiting. One of the main reasons for the poor performance level is the deterioration of standards at the caf'. The incidence is too clear to be coincidental. The new manager at the canteen was appointed towards the end of the previous year. The new manager is not doing the right thing by making changes even if it is being done to cut costs. The changes appear to be too abrupt and without the normal trial. The problems at the caf' are having a deleterious effect on the development teams. The problems at the caf' were that the standard of the freshly prepared food varied enormously and the stock outs were getting worse with more occasions when ingredients were missing or late and even some of the snack supplies were becoming erratic. There were also problems with a number of suppliers and this was having a big impact on the canteen service. There are two ways of handling the problem at the canteen. Let the new manager at the canteen get a feel of the situation in the whole company. The software developers used to work late into the nights when the caf' was in good shape. They enjoyed good canteen food then. They rarely do so now. There is no more good food available in the canteen now. This attitudinal change does not augur well for a company aiming to score another hit with RA4. The new manager must be quickly made to undo his decisions. Bring back the suppliers who were providing timely services. The canteen chefs and cooks must be men and women who know their job. The other way of handling the problem is to fire the new manager and outsource the canteen job to a capable contractor. Having handled the canteen problem, the other issues of teamwork and discipline can be streamlined through regular meetings and insistence on quality targets (Root Cause Analysis). Overall, the Wishton House needs to raise its game and improve what it does and how it does it. You need to recommend quality techniques that they can employ and show how they could be applied. Hassan is aware that his department managers were not performing at their best. In order to ensure that he gets his managers to attain peak performance, he must provide the necessary motivation first. He must make sure that the software developers are in the position to give their best performance. The weeks or months of aberration have taken place because of the deterioration in the quality of the canteen standards. Now that the canteen issue has been resolved, the software development teams do not have any excuse for poor performance. Nonetheless, the performance must not be tied to the canteen affair. If anything, the teams must perform well in spite of the canteen problem. However, just like Hassan has been instrumental in settling the organizational problem at the canteen, the teams must make efforts to show that they have the capability to solve organizational problems for which they have been recruited. It is necessary to push the principles of kaizen into the minds of the development teams. The teams may be accustomed to some of these principles. Make concerted efforts to see that the teams are moving in the right direction. Get the version controls working properly. Find out where the problem is and attack the problem source (Kaizen philosophy and Kaizen method). The problems have arisen because of lethargy and lack of concern. If the departmental managers are not putting in their best efforts, it means the recipe for disaster is brewing without any hindrance. If this state of affairs is allowed to continue, the end result will show nothing but utter failure. The time to act is now. In order to get the managers moving, it is necessary to make sure that they have highly motivated teams. A team can get motivated if the team members become aware that they are a part of an enterprising venture. RA4 must make it to the top! Just like its previous versions of RA1 and RA3. Do not leave any room for failure. Failures happen due to lack of motivation and foresight. Start plugging the loopholes. Go on a war footing. Maintain the habit of winning. It is a good tonic to the soul. Hassan must make sure that there is good coordination among the different departments. There are bound to be difference of opinions. So long as these differences do not come in the way of the company's targets, one can tolerate them. Make time bound targets and achieve them. It is important to break up the main target into a few minor targets and start achieving them one at a time. It is good to remember the essential ingredients of successful ventures. It is also good to encounter some failures on the way. If these failures serve to act as the precursor for success, these failures must be seen as the harbinger for better times. The improvement in canteen service must provide the sea change in the working habits of the development teams. They are the same teams that produced RA1 and RA3. They have the experience and the expertise to produce the desired results. Give them the targets and leave it to them to bring about the desired changes. There is still some time left to spot the errors in the software and make the necessary corrections. The targets must be geared to teamwork and discipline. Keep an eye on the black sheep. As much as possible, try and go along with the personal needs of the team. People like to know that you are concerned about them. At the end of the day, there must be appreciation and rewards for those whose performances have been above average. Spend a few days in training wherever necessary. The Caf''s supplier strategy is in need of revision and renewal. Demonstrate the application of a selection process to find the best supplier and suggest the supplier strategy most suited to the company's needs. First of all, the strategy must return to the level that existed before the new manager was appointed. The new manager has taken hasty decisions and the problems in the canteen have happened because these decisions lacked circumspection. However, the new manager must be allowed to take decisions in consultations with higher authorities. The motive for the new manager's decision has been cost cutting which is not wrong. However, in the process, the new manager has unknowingly created problems for other departments in the company. The strategy for selection of suppliers is crucial to ensure the smooth functioning of the canteen. If the strategy is erratic, it will show in the inefficient operation of the canteen. If the suppliers are erratic, this will reflect in taste and quality of the food items. The role of the canteen manager is pivotal in the operation of the canteen. His actions must not create qualitative difference in the functioning of the canteen. In the case of Wishton House, there has been qualitative deterioration in the preparation and serving of food items. However, the mistake appears to have been made unintentionally. The management, that is Hassan and Susan, must act fast to stem the deterioration and turn around the performance of the canteen. It may take some time for conditions in the canteen to stabilize even if Hassan and Susan make fast decisions. Nonetheless, the very step of fast action will spur the rank and file in the company to take notice that the right decision has been taken and it will boost their morale to perform better. The new manager must report to either Hassan or Susan and refrain from taking independent decisions. This position holds good for the revision and renewal of the selection process to find the best suppliers. The selection process must take place with due diligence taking the supplier's background into consideration. Do not rely on one supplier for any one item. Have a number of suppliers enlisted for each item. The suppliers must be categorized according to the daily needs. There may be some items that may be required every day. There may be other items that may be required once or twice a week. The items that are required on daily basis must be supplied the day before. The items that are required once or twice a week must be supplied a couple of days earlier depending on their longevity. The payment for the supplies must be made on weekly basis. The suppliers must agree in writing to supply fresh products. Payment can be reduced or totally cut in case the quality of the products is not found acceptable. The method for receiving supplies and making payments must be error-free and transparent. The food products received must be systematically stored in clean and hygienic place in bins showing the maximum and minimum levels of the items so that orders can be placed when the products reach minimum level. The working conditions in the present global environment-based firms quite often require employees to work long hours and late into the nights. It is imperative to have canteens functioning properly at all times (Canteen). Consider the resource implications of your recommendations for service improvements (both financial and in other areas) Financially, the cost cutting brought about by changing the food items by the new manager will go. On the contrary, the need for good canteen will entail raising the budget level for the canteen. Other than this, there will be increased salaries and wages that will be paid to development staff for the increased hours of work. Payment of salaries and wages cannot be fixed rigidly. There must be flexibility because there is always the need for more employees when the work involved is time-bound. More employees lead to more salaries and wages. The resource implications for service improvements will mainly centre round the need for more human resources. This is imperative for three reasons: one can never predict the movement of human capital, employees come and go. If they go, one cannot stop them. When an employee leaves, it is necessary to find replacement. Secondly, there is always the need for fresh talent. The recruitment of new development graduates will entail payment of more salaries. Lastly, there is the need to retain good employees. In order to retain employees, sometimes it is necessary to pay them higher salaries. The need to make changes in human resources is ever present. Human resource is the best capital of any company. The company moves on human resource. Hence, the need for investing financially and in other respects such as proper working environment is paramount when dealing with human resources. Companies employ various means to gain and retain good human resource. Human resources are more than just employees. They are human resource professionals, human resource practices and human resource departments. Human resource professionals are more than people assigned to work in human resource departments. They are competency based individuals who make informed decisions vital to the needs and progress of the company. They are crucial in the selection process and important in building up the human capital of the company. Human resource practices enable the company choose men and women who are critically important to attend the needs of customers. The role of the human resource department must be held to a higher standard than can be perceived by the company bosses. The effectiveness of the human resource department oversees the entire handling of the human capital of a company. Undoubtedly, there is the need for investing in good human resource department. This is one way of ensuring that the company means business with its employees. Obviously, there will be financial implications in maintaining a good human resource department. However, the investment will prove useful in the short-term, medium-term, and long-term functioning of the company. The proper functioning of the canteen is one way of getting the company back to its toes. It is the human resource management that will actually make inroads for the success of business ventures. The professional outlook of the entire company depends on the professionalism of the human resource department (Dave Ulrich). Sources: Canteen, Minnesota Department of Corrections, http://www.doc.state.mn.us/DocPolicy2/FormsWorking/NSI/302.010STW.htm Dave Ulrich, Human Resource Champions, http://books.google.com/books'hl=en&lr=&id=qTxz6I7tNSEC&oi=fnd&pg=PR7&dq=resource+implication+for+service+improvements&ots=Nm-vXgwkbh&sig=hATf7uohozctJRyB6XdxXl9PGuw Kaizen philosophy and Kaizen method, http://www.valuebasedmanagement.net/methods_kaizen.html Root Cause Analysis, Mind Tools, http://www.mindtools.com/pages/article/newTMC_80.htm Read More