The Operations Management problems of Executive Holloware Ltd.,


London Zoo and I’ll Phone You Back




Introduction



Executive Holloware Ltd., London Zoo and Oilpartz Ltd. are the three organizations, which all enjoy high reputation in UK, forming the subject of this case study. Each of them has well-established institutions, but recently the operations management of the three companies has experienced serious problems. The aim of the course work is to compare and contrast these problems and try to give some means of solving problems. It consists of three parts. The first part is mainly to point out the problems existing in their companies. Then by using the transformation model, types of operations, performance objective and the 5P’S, I will systematically make a comparison and contrast among them. Finally, a conclusion will be drawn.


1. Problems of the three companies


1.1 Executive Holloware Ltd.’s problem


The main problem of Executive Holloware is the quality of its products, which causes customers returns, risen costs and low profits. Moreover, they have difficulties with the new process system and with staff concerning motivation, communication and incentives.


1.2 London Zoo’s problem


Experiencing the period of depression, London zoo has a consistently falling attendance level. It is urgent for them to increase the visitor’s numbers and improve the service quality. While the problem is that they do not know what their customers exactly expect of their visits.


1.3 I’ll Phone you back: Oilpartz’s problem


Nitro chemicals, one of Oilpartz’s lager and profitable accounts, urgently required 20 components referred as NC11 within 2 weeks. But since having got abundant orders and owning limited resources, Oilpartz can not guarantee to give Nitro Chemicals a hand.


3. Compare and contrast





Now I’ll compare and contrast the problems of the three companies by using the operations management theories mentioned above.


3.1 transformation model


In Executive Holloware and I’ll phone you back, the materials are the input transformed resources, whereas in London zoo customers is processed. It is obvious that the transformation process of the first two companies is materials processing while the last one is customers processing. Concerning the input transforming resources, staff, information, buildings and equipment are included in three cases, but for holloware and oilpartz it also includes technology and machinery. In London zoo, animals can be treated as the transforming resources because the happiness of animals directly influences the quality of service (customers’ satisfaction and expectation). All of them have to face the problem with their transforming resource: holloware can not sufficiently motivate their staff to perform well under the new processing system. Oilparts meets the problem with its capacity since owing fixed numbers of machinist and machinery to be used for production. London zoo has difficulties to attract visitors without noticing what visitors concern about is the happiness of animals.


As I mentioned, the transformation process is materials processing. Materials go through a process that changes their physical properties (shape and constitution). So their outputs are tangible, transportable, storable, non-simultaneous and low customer contact. Compared with them, customers in London Zoo are processed in a way of changing their psychological state, e.g. a good day out and being happier afterwards. Services are its output, which are intangible, non-storable, simultaneous and high customer contact. For Holloware and London Zoo there lies a quality problem in their outputs: Holloware produces the products with low quality. The tableware has got scratched and bruised during the process, which leads to customer return and re-working costs. Zoo does not identify the expectation of their customers so that the attendance level has been falling. It is easy to be seen that over past several years, the attendance level can reach 1000 per day on busiest times whereas by 1990s the average visitor levels were just over 8000. On the contrary, Oilpartz doesn’t get into trouble with output quality but output quantity. According to their working hours, they are not sure if they can not only fit in Nitro’s order but also accomplish other orders on time.


Here, I would like to mention the theory ‘the process hierarchy’ further to analyze the problem of Holloware and London Zoo. The transformation process model can also be used within operations. Look inside most operations and they will be made up of several units or departments which themselves act as smaller versions of the whole operation of which they form