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BA365 Introduction to Operations Management

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BA365 Introduction to Operations Management
Module Assignments
1
Discussion Forum: Disney World
Case Study: Natural Designs Inc.
2
Discussion Forum: Baldridge
Case Study: Boutique Hotels
3
Discussion Forum: Vaccine Distribution
Assignment Questions Chapter 6
4
Discussion Forum: Weddings
Midterm exam
5
Discussion Forum: Black Friday
Assignment Questions Chapter 10
6
Discussion Forum: Lean Enterprise
Case Study: South Town Medical Center
7
Discussion Forum: Hotels
Case Study: Online Purchasing at McDonalds
8
Discussion Forum: Course Review
Final Exam

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Week 1
Discussion
Explain how operations management activities affect the customer experiences
described in the anecdote at the beginning of this chapter. What “moments of truth”
would a customer at Disney World encounter? Think about the total experience
including lodging, food service, shopping, and transportation, as well as theme park
attractions and operations.
Operations Management is the science and art of ensuring goods and services
are created and delivered successfully to customers. The “moments of truth” expected
by a Disney customer are warm welcome at the entrance or at the reception, the fun
games, covering the Disney park with in a scheduled time, not missing any fun program,
the eatables like ice cream are expected. Apart from the customers also expect
decoration which impresses the children. The Facility layout of the park is also designed
that customers can find the route and also information about the items in the park. The
customers also expect that online booking and a single ticket for visiting all places in the
park. The ticket should also include a complementary food items for children. The rest
rooms suitable for children are also available. Since the actual customers are children
there the park must be clean and guides are available throughout the park for
assistance.
The operations management tools like forecasting, quality management, facility
planning, process design, job design and service encounter design can be used by
Disney to achieve maximum customer satisfaction at the park.
Chapter 1 Case Study – Natural Designs Inc.
1. What types of decisions must Jim McMaster make on a daily basis for Natural
Designs to run smoothly? What kind of decisions must he make on a long-term basis?
Short-term decisions that have to be made, in terms of workforce, Jim has to
decide on a daily basis on how many employees will work on customized feeders

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depending on volume of sales orders. Since orders vary per season, he may train other
employees from other departments/products for the skills needed in producing the
customized bird feeders. These employees can work on the customized bird feeders
product during peak season and go back to their original job function or product on low-
volume seasons. Still depending on sales volume, Jim has also to decide how many
orders to be satisfied daily. This includes production and distribution of the products to
customers. As orders are received and updated real-time with the help of the internet,
daily production targets should likewise be updated. Quality control should also be part
of Jim’s daily decisions or of the company. To ensure that customers receive high quality
products, there should be a dedicated group assigned to check product quality. This
group may be part of the production team or the task may be assigned by Jim to his
production manager.
Long-term Decisions that need to be made are explicitly stated structural
decision in the case is Jim’s consideration of either a second facility or moving to a
larger facility. There is also a need for Jim to review product costs and identify which
costs he can do without since cost has significantly increased from the previous year as
evidenced by the declining percentage of profit to sales. The need for this decision is
also clear in the statement that Jim is not sure exactly how much extra labor is needed
in fulfilling the customization portion of the order. In terms of capacity, Jim might want to
review his current product range since 500 SKUs maybe large enough for a company
with only 15 employees. He may trim down his product offerings or hire additional
employees. But since Jim may currently be having problems with cost control, trimming
down the company’s SKUs may be more beneficial.
2. Describe the operations strategy for Natural Designs. Has this strategy changed as a
result of the custom bird feeder operation? If yes, how?
Natural Designs’ original operations strategy was response or time/delivery. Jim
built his business with strong interactions with his customers through presentations and
talks making him provide his products to customers right away. As the business
expanded, he made use of the internet to make the order process real quick and
provided his customers a 1-week delivery promise. With the entry of the customized bird

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Anonymous
Excellent! Definitely coming back for more study materials.

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