GROUP FOURSHEENA 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. 1 | Page many asked her to take care of their lawns. and maintenance. Among her responsibilities are forecasting. 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? 2 | Page . inventory management. Questions 1. Some people were simply glad to turn the work over to her. Sheena knew she could earn a living this way. quality assurance. scheduling. and trimming shrubbery. (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. she believed she could expand further if she wanted to. Business became so good that Sheena hired two part-time workers to assist her and. In what ways are Sheena’s customers most likely to judge the quality of her lawn care services? 2. but once people realized Sheena was available. even then. (e) What kinds of maintenance must be performed? 3. weeding gardens.At first. Sheena is the operations manager of her business. By the end of her first year in business. business was a little slow. others switched from professional lawn care services. She also performed other services such as fertilizing lawns. directly or indirectly. be used to judge the quality of her services. demand forecast. Among her responsibilities are forecasting. quality assurance. Production Management Caselet – Sheena 1. maintenance. and allow her to compare her company to industry norms. Sheena’s manner of treatment with each customer will also. The town is considering an ordinance that would prohibit putting grass clippings at the curb for pickup because local landfills cannot handle the volume. a. What kind of things would likely require forecast? Things that would likely require forecast for Sheena’s business includes sales forecast. scheduling. Most important is the sales forecast so that she can evaluate the current sales levels and growth of her business. 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. 2. Sheena is the operations manager of her business. It will also help her in establishing the policies so that she can easily monitor the 3 | Page . and with the time it took her to complete the work. inventory management. inventory forecast. and budgeting forecast.4. What options might Sheena consider if the ordinance is passed? Name two advantages and two drawbacks of each option. In addition. Sheena’s inventory items probably have fuels. and garbage cellophane. oils and lubes for the mowing machine. She started only because she has no work but grew to business because the quality of her services was found helpful to her neighbors. Some things that might occur include natural disasters. or at least minimize. for inventory purchases. d. With these inventory items. How important is quality assurance to Sheena’s business? Sheena has no background in lawn mowing services. worker’s sickness. and machine breakdown. Sheena should decide the best reorder quantity for each item to avoid service disruption and minimize cost. Quality 4 | Page . b. She should also create her schedule with flexibility to avoid. 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. c. for the employees’ workload. and for machine maintenance. What inventory items does Sheena probably have? Name one inventory decision she has to make periodically. disruption and rescheduling.prices and operating costs to guarantee profits and make her aware of the minor problems before they become major problems. To insure this quality means business for Sheena because her customer will be satisfied and will seek for her services again. likewise as she have to decide that she would give time and focus in this matter. If Sheena will take to start this business. Among her responsibilities are forecasting. she must have to write plans in this kind of business. 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.assurance is also important to Sheena’s business especially that she is planning to expand. yards and ornamental plants and trees. quality assurance. she must have to do such things that this kind of business may improve. 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. When Sheena wanted to start this business in order. she must have to do her own style of service like making her lawn service unique and have a customer satisfaction. Sheena is the operations manager of her business. and maintenance. the people around her may like the way she anchor the necessary details about lawn business. Technological forecast deals with the characteristics of technology. inventory management. lawn and plant care services include any work you do to maintain or improve lawns. scheduling. e. (a) What kinds of things would likely require forecasts? 5 | Page . In this way. 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. How important is quality assurance to Sheena’s business? Explain. e. disruption and rescheduling. and allow her to compare her company to industry norms. Most important is the sales forecast so that she can evaluate the current sales levels and growth of her business. Sheena should decide the best reorder quantity for each item to avoid service disruption and minimize cost. or at least minimize. 6 | Page . With these inventory items. What kinds of maintenance must be performed? • Checking of fertilizers if it still up to date so as not to use expired fertilizer. oil changed and motors overhauled. Some things that might occur include. d. and garbage cellophane. • Checking if the lawn equipments are in well condition i. and for machine maintenance.e. b. ‘blades sharpened. • Making sure that the facilities are clean. oils and lubes for the mowing machine. Sheena should also create her schedule with flexibility to avoid. for the employees’ workload. c. What inventory items does Sheena probably have? Name one inventory decision she has to make periodically. 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.Things that would likely require forecast for Sheena’s business includes sales forecast. Sheena’s inventory items probably have fuels. inventory forecast. It will determine the number of Sheena’s customers this will also reflect on her business credibility. demand forecast. and budgeting forecast. for inventory purchases. The quality assurance to Sheena’s business is indeed very important. It would be less effort for Sheena. she will not be the boss she won’t see the future of the business. 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.3. The town is considering an ordinance that would prohibit putting grass clippings at the curb for pickup because local landfills cannot handle the volume. 7 | Page . 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. Two drawbacks The customers may not like the grass clippings left on the backyards. building and hiring more employees which leads to buying more equipment. 4. (b) Expanding the business? In expanding her business it would take her more cost in marketing. hence less cost for fertilizer and cost of buying garbage bag. It would make Sheena’s work look bad because of the grass clippings. Individual stores differ somewhat in terms of actual size and some special features. rolls. Wegmans operates over 70 stores. Wegmans has evolved into a very successful organization.0 billion. cakes. and offer a wide variety of fresh-cut flowers. Headquartered in Rochester. NY. In fact. they generally have a large bakery Section (each store bakes its own bread. Aside from the features normally found in supermarkets. and extra large produce sections. double or triple the size of average supermarkets. pies. 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. and listening to its customers. and has annual sales of over Rs. Through a combination of market research. varies and plants. 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. Inc. The company employs over 23.GROUP FIVE WEGMANS FOOD MARKETS Wegmans Food Markets. A superstore typically employs from 500 to 600 people.000 people.000 square foot superstores. In-store floral shops range in size up to 800 square feet of space. 8 | Page . They also offer film processing a complete pharmacy. In-store card shops covers over 1000 square feet of floor of floor space. SUPERSTORES Many of the company’s stores are giant 100. trial and error. 2. and pastries). is one of the premier grocery chains in the United States. a card shop and video rentals. flower arrangements. Wegmans has a strong reputation for offering its customers high product quality and excellent service. a salad bar and a dessert station.Each store is a little different. each devoted to preparing and serving a certain type of food. PRODUCE DEPARTMENT The company prides itself on fresh produce. Wegmans offers locally grown produce a season. Among the special features in some stores are a dry cleaning department. Wegmans uses a ’farm to market’ system whereby some local growers deliver their produce directly to individual stores. Customers often wander among stations as they decide what to order. That reduces the company’s inventory holding costs and gets the produce into the stores as quickly as possible. In several affluent locations. Some stores have a coffee shop section with tables and chairs where shoppers can enjoy regular or specialty coffees and variety of tempting pastries. The larger stores have produce sections that are four to five times the size of a produce section of an average supermarket. Produce is replenished as often as 12 times a day. customers can stop in on their way home from work and choose from a selection of freshly prepared dinner entrees. MEAT DEPARTMENT 9 | Page . bypassing the main warehouse. For example. 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. and a salad bar. Some feature a Market Cafe that has different food stations. one station has pizza and other Italian specialties. a winery. and another oriental food. There are also being a sandwich bar. It typically invests an average of Rs. The superstores typically receive one truckload of goods per day from the main warehouse. new employees learn the importance of good customer service and how to provide it. a store may receive two truckloads from the main warehouse. The company exercises strict control over suppliers. insisting on product quality and on-time deliveries. In addition to learning about stores operations. 10 | P a g e . cheerfully answering customer questions or handling complaints. The employees are helpful. managers often check scanner records to learn what past demand was during a comparable period. special promotions.7000 to train each new employee. they are not used directly for replenishing stock. unless the main warehouse is also out of stock. The short lead-time greatly reduces the length of the time an item might be out of stock. such as holidays. Although sales records are available from records of items scanned at the checkouts. for seasonal periods. However. During peak periods. profit sharing. 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. local circumstances must all be taken into account. such as pricing. EMPLOYEES The company recognizes the value of good employees. Other factors. ORDERING Each department handles its own ordering. and benefits.In addition to large display cases of both fresh and frozen meat products. Employees are motivated through a combination of compensation. If a customer is dissatisfied with an item and returns it.QUALITY Quality and Customer satisfaction are utmost in the minds of Wegmans management and its employees. If the cause can be determined. How do customers judge the quality of a supermarket? 2. If the item is a Wegmans brand food item. the customer is offered a choice of a replacement or a refund. (d) Location (e) Inventory management. Moreover. Questions 1. (c) Capacity planning. (g) Scheduling. corrective action is taken. (f) Layout of the store. it is then sent to the test kitchen to determine the cause of the problem. Indicate how and why each of these factors is important to the successful operation of a supermarket: (a) Customer satisfaction. employees are encouraged to report problems to their managers. or even a portion of the item. Private label food items as well as name brands are regularly evaluated in test kitchens. Operations Management MGT3210 11 | P a g e . (b) Forecasting. Managers are responsible for checking and maintaining products and service quality in their departments. along with the potential new products. 33-36 1. dry cleaning. 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. photo. coffee shop. floral shop. grocery. Can the customer get everything that they need from Wegman’s? Convenience is a major factor in today’s society. whether the prices competitive when compared to others supermarkets * Quality. video rental. is the store conveniently located where it will be easily accessible to the greatest amount of customers * Hours of operation. and a fisherman’s whaft) * Layout. card shop. and courteous to the customer * Pricing. Some of the customer’s judgments could be based on the following factors: * Did the customer get what they came for. is the store operating at a time that is most appealing to customers. is the layout of the 100.Operations Management Wegman’s Food pp. salad bar.000 square foot store customer friendly so that things are sorted and easily located throughout the store * Location. how the quality of supermarket products meet or exceed the customers’ expectations * Product availability and variety. was inventory correctly maintained to avoid shortages or out of stock items * Customer service. Indicate how and why each of these factors is important to the successful operation of a supermarket: (a) Customer satisfaction. café. were the employees that the customer interacted with helpful. is this a one stop shopping experience for the customer. knowledgeable. is the store open earlier or later than its competition 2. 12 | P a g e . (pharmacy. reduce holding costs. accessibility to potential customers is essential for success. Customers are a great source of free advertisement. 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. This will allow for correct inventory levels. (d) Location (e) Inventory management. * Capacity Planning is essential to maintain reasonable profit.(b) Forecasting. Customer loyalty will help keep the store successful and profitable as a function of customer satisfaction. location from outside suppliers as well as main warehouse must be considered. * Forecasting. and eliminate out of stock items. * Inventory management must ensure that the correct levels of inventory are being maintained throughout the store. and plan accordingly. capacity planning will help avoid his situation * Location. 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. Forecasting also takes into consideration outside factors such as local festivals. (c) Capacity planning. and inventory. which are going to be slow moving. and that merchandise is purchased at the best price point possible 13 | P a g e . weather conditions. a satisfied customer can spread positive thoughts and through word of mouth marketing create more customers. correct forecasting is important as managers need to understand which items are going to be very fast moving. and customer’s tastes and preferences. cost of location compared to profitability at that certain location must be calculated. (g) Scheduling. proximity to competitors is crucial. (f) Layout of the store. * Customer satisfaction. Scheduling will help maintain constant levels of inventory and account for transportation time of merchandise 14 | P a g e .* Layout of the store should be customer friendly. 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. attractive and inviting to customers. not overcrowded with product. well organized. scheduling will also protect employees from being overwhelmed and ensure that they are able to work productively.