Block 2 Operations Management
TMA01
H L LIN ( A2294803)
12/4/2009
B203 Hsu Lin LIN (A2294803) – TMA01 Operations Management
Part 1
Question 1 –
From the review of the block 2 DVD, I would choose Vue to compare the operations management functions with Bmibaby.
As we knew, that Bmibaby and Vue both are very young company. Both of them have very positive to expend their
business. There are seven aspects of operations management what I will be analysis of similarities and different of it. The
seven aspects are operations strategy, design, planning and control, supply chain management, quality and
performance.
Operations strategy – any operations function has three main roles to play within an organization as an implementer of
the organization’s strategies, as a supporter of the organization’s overall strategy and as a leader or driver strategy. The
extent to which an operations function fulfils these roles, together with its aspirations, can used to judge the operations
function’s contribution to the organization. On the structural of Bmibaby - it operation of hubs within the UK and
destinations in UK and Europe ; use of demand management systems to maximize the utilization of aircraft; supply
network design involving extensive outsourcing of ground services ; aircraft fleet of appropriate size, commonality of
equipment to drive low maintenance costs. Vue – establishment of high quality and appropriately sized multi screen
cinemas in readily accessible areas that already provide appropriate ancillary services such as transport, parking,
restaurants; in-house catering facilities to maximize income from ancillary sales. There are some obvious similarities of
them as they both have high capacity utilization; use of ancillary sales to boost
B203 Hsu Lin LIN (A2294803) – TMA01 Operations Management
income; cost management. There are also significant differences as the greater involvement of supply chain partners in
operations processes in the case of Bmibaby. The focus on the customer experience for Vue compared with the focus on
the technical aspects of service such as punctuality for Bmibaby.
Design – Good design makes good business sense because it translated customer needs into the shape and form of the
product or service and so enhances profitability. Design includes formalizing three particularly important issues: the
concept, package and process implied by the design. There have very few organizations that can be successful without
offering new products and services to the marketplace from time to time. In some industries, no organization can
expected to be in business for very long unless it frequently introduces new products and services. This is especially the
case in industries linked to technology and fashion. Some of the approaches and techniques that are available for use in
the new product design process was highlighted. In particular, the concept of interactive design does introduce and
techniques for design simplification and improvement described. The similar in design of products and service can
consider with Bmibaby and Vue: competitive prices and value for money, good customer services, enjoyable experience,
ease of ticket purchase and getting information. The different as their customer base, the classic marketing strategy is to
target the “general population” or the “average consumer” with as many “product or service benefits” as possible.
The planning and control – planning is the setting of realistic goals and choosing effective ways to achieve these goals.
Goals must be understandable, achievable and able to
B203 Hsu Lin LIN (A2294803) – TMA01 Operations Management
assess! If a goal is not clear, it cannot be assess and, hence, it cannot be manage. If a goal is unrealistic, any plan will
also be unrealistic and, therefore, unlikely to succeed. The successful manager must ensure that a project’s plan is clearly
defined and realistic and control is the process by which the manager ensures that all actions are consistent with the plan
– all actions are, therefore, directed at achieving the stated goals. The control is the systematic effort of comparing
performance to plans. Planning and control is the important management of any project. These are essential functions for
every successful manager – without them, every project are generally not successful, not completed on time, or cost
more than they should! The successful manager must always ensure that case do base on excellent plans and followed by
good control during implementation. Planning and control is concerned with operating those resources on a day-to-day
basis and ensuring availability of materials and other variable resources in order to supply the goods and services which
fulfils customers’ demands. Bmibaby has announced the launch of the first phase of its summer flights programme for
2010, allowing travellers to start planning next year's holidays early. Vue continues with its commitment to build and
develop the most distinct, modern multiplex cinemas in the UK and will be opening an estimated 10 sites in the next 2-3
years. Vue have focused on being the dominant exhibitor in the business. Aside from upgrading and increasing
infrastructure, Vue has concentrated on building an entirely new culture within the industry. The similar of this concept of
Bmibaby and Vue as they do have same planning that to push their co-operator have more benefit to the customer or the
business just different as Bmibaby’s planning would based on the people’s travelling needed
B203 Hsu Lin LIN (A2294803) – TMA01 Operations Management
and Vue has base on when people’s enjoyed entertainment need. They both included the business planning and control in
their long-term management development.
The supply chain is a system of organizations, people, technology, activities, information and resources involved in
moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials
and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems,
used products may re-enter the supply chain at any point where residual value is recyclable. A typical supply chain begins
with ecological and biological regulation of natural resources, followed by the human extraction of raw material, and
includes several production links (e.g., component construction, assembly, and merging) before moving on to several
layers of storage facilities of ever-decreasing size and ever more remote geographical locations, and finally reaching the
consumer. Airport is the most important supply chain of Bmibaby, internet technology is also important for them as
customer buying ticket to choose what they need via internet. Beside, staff, food supply..ect all include of the supply
chain. VUE, the UK’s largest operator of modern multiplex cinemas, is close to completion of a major IT overhaul that
involves adding new point-of-sale and head office technology to its 50 and more multi-screen cinema circuit nationwide.
Around 700 point-of-sale terminals and 150 self-service kiosks have being installed with Vista software, an integrated
retail and hospitality system developed specifically for cinemas. Beside it, they do make the majority of their money from
their food counter such as popcorn, drink. Therefore, that food supplier is one of supply chair of them. The similar with
Bmibaby and Vue as their most important supply chain is IT system and catering Supplier Company. There are also
significant
B203 Hsu Lin LIN (A2294803) – TMA01 Operations Management
differences as the greater involvement of supply chain partners in operations processes in the case of Bmibaby. The focus
on the customer experience for Vue compared with the focus on the technical aspects of service such as punctuality for
Bmibaby.
Quality - in business, engineering and manufacturing has a pragmatic interpretation as the non-inferiority or superiority
of something. Quality is a perceptual, conditional and somewhat subjective attribute and may be understand differently
by different people. Consumers may focus on the specification quality of the product/service, or how it compares to
competitors in the marketplace. Producers might measure the conformance quality, or degree to which the
product/service has produced correctly. Numerous definitions and methodologies have been creating to assist in
managing the quality-affecting aspects of business operations. Many different techniques and concepts have evolved to
improve product or service quality. Quality control is the branch of engineering and manufacturing which deals with
assurance and failure testing in design and production of products or services, to meet or exceed customer requirements.
Like Bmibaby’s aim – attracting as many customers is important for most business; in that case, Bmibaby gives priority
to cost management rather than generating revenue. So that, they try to improve their service quality to make customer
more comfort and save the money in their trip. They did very good in their quality improvement for the contribution they
can make to the business. Vue's multiplexes vary in size from 4 to 27 screens and as a result the staffing of each site is
slightly different. The management team runs each cinema. This team will consist of one general manager assisted by
between 2 and 5 other members of the management team and their main aim is provided the best service to customer.
B203 Hsu Lin LIN (A2294803) – TMA01 Operations Management
The similar of Bmibaby and Vue as they get the improvement in their service quality in customer service such as ticket
cost, comfortable level, waiting time etc..
Performance - is the concept of measuring the output of a particular process or procedure, then modifying the process or
procedure to increase the output, increase efficiency, or increase the effectiveness of the process or procedure. The
concept of performance improvement can be applied to either individual performance such as an athlete or organisational
performance such as a racing team or a commercial enterprise. In Organisational development, performance
improvement is the concept of organizational change in which the managers and governing body of an organisation put
into place and manage a programme which measures the current level of performance of the organization and then
generates ideas for modifying organisational behavior and infrastructure which are put into place to achieve higher
output. The primary goals of organizational improvement are to increase organizational effectiveness and efficiency to
improve the ability of the organization to deliver goods and or services. A third area sometimes targeted for improvement
is organizational efficacy, which involves the process of setting organizational goals and objectives. Performance
improvement at the operational or individual employee level usually involves processes such as statistical quality control.
At the organizational level, performance improvement usually involves softer forms of measurement such as customer
satisfaction surveys that be used to obtain qualitative information about performance from the viewpoint of customers.
Considering Bmibaby's punctuality performance over prior years, there has been a big improvement. Whatever they have
done to their schedules/turnarounds, it has worked and hopefully this level of performance will continue.
B203 Hsu Lin LIN (A2294803) – TMA01 Operations Management
There has similar with Bmibaby and Vue in their performance of the service will allow callers to easily access information
and to book tickets from the full and extensive range of ticket and performance types across the network and to select
where they would like to sit in the cinema auditorium or flight service and to keep this as a personal preference. It will
also feature increased levels of personalisation so it will offer callers where desired, selections based upon their previous
call patterns to make the call quicker and more intuitive.
Question 2 –
Operations Management provides me a foundation for understanding the role of production and delivery capabilities in
creating business value. While the disciplines of strategy and marketing deal with choosing the best approaches to the
right markets, operations focuses on developing and managing processes for serving those markets. This block two has
provides me in study an in‐ depth introduction to the fundamentals of transforming inputs into outputs, demonstrates
how companies match supply with demand, and explores the interdependence of strategies, processes, technologies. It is
also some functional theories what I do think to be applied in the Nortel Case as Process Design to introduces core
operations concepts, types of processes, and process performance characteristics and Operations Control to considers
approaches to controlling, correcting, and maintaining high performance in operations systems and the central role of
technology in supporting, and even driving, business strategies and organizational capabilities. After completing this block
two, I should be able to know how to analyze and assess the performance of production and delivery processes and
operations systems
B203 Hsu Lin LIN (A2294803) – TMA01 Operations Management
even in the Nortel case. Diagnose process problems and identify improvement opportunities. Develop recommendations
and action plans to improve business processes. Discuss the connections between operations and other functional areas
of business. Describe how information technology enables and supports business and operations strategies. In a recent
study of Nortel case in three ways of their economic, social and environmental. The study found that network at Nortel
has quantifiable, positive impact to the bottom line, the environment, and the quality of life for those involved.