GROUP FOUR SHEENA Sheena had

GROUP FOUR
SHEENA
Sheena had worked for the same Fortune 500 Company for most 15 years. Although the company had gone through some tough times, things were starting to turn around. Customer orders were up, and quality and productivity had improved dramatically from what they had been only a few years earlier due companywide quality improvement program. So, it comes as a real shock to Sheena and about 400 of her co-workers when they were suddenly terminated following the new CEO’s decision to downsize the company.
After recovering from the initial shock, Sheena tried to find employment elsewhere. Despite her efforts, after eight months of searching she was no closer to finding a job than the day she started. Her funds were being depleted and she was getting more discouraged. There was one bright spot, though: She was able to bring in a little money by mowing lawns for her neighbors.
She got involved quite by chance when she heard one neighbor remark that now that his children were on their own; nobody was around to cut the grass. Almost jokingly, Sheena asked him how much he’d be willing to pay. Soon Sheena was mowing the lawns of five neighbors. Other neighbors wanted her to work on their lawns, but she didn’t feel that she could spare any more time from her job search.
However, as the rejection letters began to pile up, Sheena knew she had to make an important decision in her life. On a rainy Tuesday morning, she decided to go into business for herself taking care of neighborhood lawns. She was relieved to give up the stress of job hunting, and she was excited about the prospects of being her own boss. But she was also fearful of being completely on her own. Nevertheless, Sheena was determined to make a go of it.
At first, business was a little slow, but once people realized Sheena was available, many asked her to take care of their lawns. Some people were simply glad to turn – the work over to her; others switched from professional lawn care services. By the end of her first year in business, Sheena knew she could earn a living this way. She also performed other services such as fertilizing lawns, weeding gardens, and trimming shrubbery. Business became so good that Sheena hired two part-time workers to assist her and, even then, she believed she could expand further if she wanted to.

Questions
1. In what ways are Sheena’s customers most likely to judge the quality of her lawn care services?
2. Sheena is the operations manager of her business. Among her responsibilities are forecasting, inventory management, scheduling, quality assurance, and maintenance.

(a) What kinds of things would likely require forecasts?
(b) What inventory items does Sheena probably have? Name one inventory decision she has to make periodically.
(c) What scheduling must she do? What things might occur to disrupt schedules and cause Sheena to reschedule?
(d) How important is quality assurance to Sheena’s business? Explain.
(e) What kinds of maintenance must be performed?
3. What are some of the trade-offs that Sheena probably considered relative to:
(a) Working for a company instead of for herself?
(b) Expanding the business?
4. The town is considering an ordinance that would prohibit putting grass clippings at the curb for pickup because local landfills cannot handle the volume. What options might Sheena consider if the ordinance is passed?
Name two advantages and two drawbacks of each option.
Production Management

Caselet – Sheena

1. In what ways are Sheena’s customers most likely to judge the quality of her lawn care services?

Sheena’s customers will most likely judge the quality of her lawn care services with the performance that will be seen in the result of her work, and with the time it took her to complete the work. In addition, Sheena’s manner of treatment with each customer will also, directly or indirectly, be used to judge the quality of her services.

2. Sheena is the operations manager of her business. Among her responsibilities are forecasting, inventory management, scheduling, quality assurance, maintenance.

a. What kind of things would likely require forecast?

Things that would likely require forecast for Sheena’s business includes sales forecast, demand forecast, inventory forecast, and budgeting forecast. Most important is the sales forecast so that she can evaluate the current sales levels and growth of her business, and allow her to compare her company to industry norms. It will also help her in establishing the policies so that she can easily monitor the prices and operating costs to guarantee profits and make her aware of the minor problems before they become major problems.

b. What inventory items does Sheena probably have? Name one inventory decision she has to make periodically.

Sheena’s inventory items probably have fuels, oils and lubes for the mowing machine, and garbage cellophane. With these inventory items, Sheena should decide the best reorder quantity for each item to avoid service disruption and minimize cost.

c. What scheduling must she do? What things might occur to disrupt schedules and cause Sheena to reschedule?

She must create schedule for her lawn services to her customers, for the employees’ workload, for inventory purchases, and for machine maintenance. She should also create her schedule with flexibility to avoid, or at least minimize, disruption and rescheduling. Some things that might occur include natural disasters, worker’s sickness, and machine breakdown.

d. How important is quality assurance to Sheena’s business?

Sheena has no background in lawn mowing services. She started only because she has no work but grew to business because the quality of her services was found helpful to her neighbors. To insure this quality means business for Sheena because her customer will be satisfied and will seek for her services again. Quality assurance is also important to Sheena’s business especially that she is planning to expand.

e. What kind of maintenance must be performed

Business Plan
PAUL MWANGI NGARU
CASE STUDY-SHEENA
Questions
In what ways are Sheena’s customers most likely to judge the quality of her lawn care services?
Through landscaping, lawn and plant care services include any work you do to maintain or improve lawns, yards and ornamental plants and trees. When Sheena wanted to start this business in order, she must have to write plans in this kind of business, likewise as she have to decide that she would give time and focus in this matter, she must have to do such things that this kind of business may improve. If Sheena will take to start this business, she must have to do her own style of service like making her lawn service unique and have a customer satisfaction. In this way, the people around her may like the way she anchor the necessary details about lawn business. Technological forecast deals with the characteristics of technology, such as levels of technical performance, this method will be easier for Sheena to look what are the things she might needed to start the business.
Sheena is the operations manager of her business. Among her responsibilities are forecasting, inventory management, scheduling, quality assurance, and maintenance.
(a) What kinds of things would likely require forecasts?
Things that would likely require forecast for Sheena’s business includes sales forecast, demand forecast, inventory forecast, and budgeting forecast. Most important is the sales forecast so that she can evaluate the current sales levels and growth of her business, and allow her to compare her company to industry norms. It will also help her in establishing the policies so that she can easily monitor the prices and operating costs to guarantee profits and make her aware of the minor problems before they become major problems.
b. What inventory items does Sheena probably have? Name one inventory decision she has to make periodically.
Sheena’s inventory items probably have fuels, oils and lubes for the mowing machine, and garbage cellophane. With these inventory items, Sheena should decide the best reorder quantity for each item to avoid service disruption and minimize cost.
c. What scheduling must she do? What things might occur to disrupt schedules and cause Sheena to reschedule?
Sheena she must create schedule for her lawn services to her customers, for the employees’ workload, for inventory purchases, and for machine maintenance. Sheena should also create her schedule with flexibility to avoid, or at least minimize, disruption and rescheduling. Some things that might occur include.
d. How important is quality assurance to Sheena’s business? Explain.
The quality assurance to Sheena’s business is indeed very important. It will determine the number of Sheena’s customers this will also reflect on her business credibility.
e. What kinds of maintenance must be performed?
• Checking of fertilizers if it still up to date so as not to use expired fertilizer.
• Checking if the lawn equipments are in well condition i.e. ‘blades sharpened, oil changed and motors overhauled.
• Making sure that the facilities are clean.
3. What are some of the trade-offs that Sheena probably considered relative to:
(a) Working for a company instead of for herself?
If she would work for a company, she will not be the boss she won’t see the future of the business.
(b) Expanding the business?
In expanding her business it would take her more cost in marketing, building and hiring more employees which leads to buying more equipment.
4. The town is considering an ordinance that would prohibit putting grass clippings at the curb for pickup because local landfills cannot handle the volume. What options might Sheena consider if the ordinance is passed?
Two advantages
Sheena would not have to sweep the grass clippings any more she could leave it and it would breakdown on its own. It would be less effort for Sheena, hence less cost for fertilizer and cost of buying garbage bag.
Two drawbacks
The customers may not like the grass clippings left on the backyards.
It would make Sheena’s work look bad because of the grass clippings.
GROUP FIVE
WEGMANS FOOD MARKETS
Wegmans Food Markets, Inc. is one of the premier grocery chains in the United States.
Headquartered in Rochester, NY, Wegmans operates over 70 stores. The company employs over 23,000 people, and has annual sales of over Rs. 2.0 billion.
Wegmans has a strong reputation for offering its customers high product quality and excellent service. Through a combination of market research, trial and error, and listening to its customers, Wegmans has evolved into a very successful organization. In fact, Wegmans is so good at what it does that grocery chains all over the country send representatives to Wegmans for a firsthand look at operations.
SUPERSTORES
Many of the company’s stores are giant 100,000 square foot superstores, double or triple the size of average supermarkets. A superstore typically employs from 500 to 600 people.
Individual stores differ somewhat in terms of actual size and some special features. Aside from the features normally found in supermarkets, they generally have a large bakery Section (each store bakes its own bread, rolls, cakes, pies, and pastries), and extra large produce sections. They also offer film processing a complete pharmacy, a card shop and video rentals.
In-store floral shops range in size up to 800 square feet of space, and offer a wide variety of fresh-cut flowers, flower arrangements, varies and plants. In-store card shops covers over 1000 square feet of floor of floor space. The bulk foods department provides customers with the opportunity to select what quantities they desire from a vast array of foodstuffs and some nonfood items.
Each store is a little different. Among the special features in some stores are a dry cleaning department, a winery, and a salad bar. Some feature a Market Cafe that has different food stations, each devoted to preparing and serving a certain type of food. For example, one station has pizza and other Italian specialties, and another oriental food. There are also being a sandwich bar, a salad bar and a dessert station. Customers often wander among stations as they decide what to order. In several affluent locations, customers can stop in on their way home from work and choose from a selection of freshly prepared dinner entrees. Some stores have a coffee shop section with tables and chairs where shoppers can enjoy regular or specialty coffees and variety of tempting pastries.

PRODUCE DEPARTMENT
The company prides itself on fresh produce. Produce is replenished as often as 12 times a day.
The larger stores have produce sections that are four to five times the size of a produce section of an average supermarket. Wegmans offers locally grown produce a season. Wegmans uses a ‘farm to market’ system whereby some local growers deliver their produce directly to individual stores, bypassing the main warehouse. That reduces the company’s inventory holding costs and gets the produce into the stores as quickly as possible. Growers may use specially designed containers that go right onto the store floor instead of large bins. This avoids the bruising that often occurs when fruits and vegetables are transferred from bins to display shelves and the need to devote labor to transfer the produce to shelves.

MEAT DEPARTMENT
In addition to large display cases of both fresh and frozen meat products, many stores have a full-service butcher shop that offers a variety of fresh meat products and where butchers are available to provide customized cuts of meat for customers.

ORDERING
Each department handles its own ordering. Although sales records are available from records of items scanned at the checkouts, they are not used directly for replenishing stock. Other factors, such as pricing, special promotions, local circumstances must all be taken into account. However, for seasonal periods, such as holidays, managers often check scanner records to learn what past demand was during a comparable period.
The superstores typically receive one truckload of goods per day from the main warehouse.
During peak periods, a store may receive two truckloads from the main warehouse. The short lead-time greatly reduces the length of the time an item might be out of stock, unless the main warehouse is also out of stock.
The company exercises strict control over suppliers, insisting on product quality and on-time deliveries.

EMPLOYEES
The company recognizes the value of good employees. It typically invests an average of Rs.7000 to train each new employee. In addition to learning about stores operations, new employees learn the importance of good customer service and how to provide it. The employees are helpful, cheerfully answering customer questions or handling complaints. Employees are motivated through a combination of compensation, profit sharing, and benefits.

QUALITY
Quality and Customer satisfaction are utmost in the minds of Wegmans management and its employees. Private label food items as well as name brands are regularly evaluated in test kitchens, along with the potential new products. Managers are responsible for checking and maintaining products and service quality in their departments. Moreover, employees are encouraged to report problems to their managers.
If a customer is dissatisfied with an item and returns it, or even a portion of the item, the customer is offered a choice of a replacement or a refund. If the item is a Wegmans brand food item, it is then sent to the test kitchen to determine the cause of the problem. If the cause can be determined, corrective action is taken.

Questions
1. How do customers judge the quality of a supermarket?
2. Indicate how and why each of these factors is important to the successful operation of a supermarket:
(a) Customer satisfaction.
(b) Forecasting.
(c) Capacity planning.
(d) Location
(e) Inventory management.
(f) Layout of the store.
(g) Scheduling.
Operations Management
MGT3210
Operations Management
Wegman’s Food pp.33-36
1. How do customers judge the quality of a supermarket?
Customers judge the quality of a supermarket in a variety of ways depending on what they are looking for within that supermarket. Some of the customer’s judgments could be based on the following factors:
* Did the customer get what they came for, was inventory correctly maintained to avoid shortages or out of stock items
* Customer service, were the employees that the customer interacted with helpful, knowledgeable, and courteous to the customer
* Pricing, whether the prices competitive when compared to others
supermarkets

* Quality, how the quality of supermarket products meet or exceed the
customers’ expectations

* Product availability and variety, is this a one stop shopping experience for the customer. Can the customer get everything that they need from Wegman’s? Convenience is a major factor in today’s society. (pharmacy, photo, card shop, video rental, coffee shop, floral shop, grocery, dry cleaning, salad bar, café, and a fisherman’s whaft)
* Layout, is the layout of the 100,000 square foot store customer friendly so that things are sorted and easily located throughout the store
* Location, is the store conveniently located where it will be easily accessible to the greatest amount of customers
* Hours of operation, is the store operating at a time that is most appealing to customers, is the store open earlier or later than its competition
2. Indicate how and why each of these factors is important to the successful operation of a supermarket:
(a) Customer satisfaction.
(b) Forecasting.
(c) Capacity planning.
(d) Location
(e) Inventory management.
(f) Layout of the store.
(g) Scheduling.

* Customer satisfaction, the customer is always right! It is critical to make sure that the customer is more than satisfied with what the store offers for products and services in order to create customer loyalty. Customer loyalty will help keep the store successful and profitable as a function of customer satisfaction. Customers are a great source of free advertisement; a satisfied customer can spread positive thoughts and through word of mouth marketing create more customers.
* Forecasting, correct forecasting is important as managers need to understand which items are going to be very fast moving, which are going to be slow moving, and plan accordingly. This will allow for correct inventory levels, reduce holding costs, and eliminate out of stock items. Forecasting also takes into consideration outside factors such as local festivals, weather conditions, and customer’s tastes and preferences.
* Capacity Planning is essential to maintain reasonable profit, and inventory. Purchasing a large amount of an item that will not sell in the store and eventually go bad or spoil would cause a loss in profit, capacity planning will help avoid his situation
* Location, accessibility to potential customers is essential for success, proximity to competitors is crucial, cost of location compared to profitability at that certain location must be calculated; location from outside suppliers as well as main warehouse must be considered.
* Inventory management must ensure that the correct levels of inventory are being maintained throughout the store, and that merchandise is purchased at the best price point possible
* Layout of the store should be customer friendly, well organized, not overcrowded with product, attractive and inviting to customers, and safety measures must be taken for fire exits and emergency to ensure that they are functional and clearly marked
* Scheduling must be analyzed and properly implemented to ensure that a store is staffed properly especially during peak hours of operations, scheduling will also protect employees from being overwhelmed and ensure that they are able to work productively. Scheduling will help maintain constant levels of inventory and account for transportation time of merchandise
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