Function_of_Five_Objectives_of_Operationss_Management_in_Guangzhou_Book_Center

Executive Summary This report introduces the business of Guangzhou Book Center, briefly describes the operation strategies in this organization. It also introduces the organization’s major activities which support its business success in quality, dependability, flexibility, speed and cost. Meanwhile it lists the drawback which the organization should improve within the five objectives. Lastly the report analysis future issues of Guangzhou Book Center. 1 Organization Background Guangzhou Book Center is a company which sells books, stationary and sport products from November, 1994. The total service area is more than 15,000 square meters .The center has more than 100,000 kinds of books, 30,000 kinds of media materials and varieties of stationary. It has more than 3,000,000 individual customers and 200 group customers. Besides business in selling books and other products, they operate various seminars and cultural exchange events which are free to public every year. From 2004 they set up their website and bookstore online. It is currently one of the largest book center in South China. 2 The strategy in the organization In its broadest sense, strategy is the means by which individuals or organizations achieve their objectives (R. M. Grant, 2010). The aim of Guangzhou Book Center is committed to bring large and immediate information to the public, help people to enjoy the knowledge. They focus on providing customers with rich variety of books, best services, excellent environment, as well as joy of reading (Guangzhou Book Center, 2011). They hope keeping a share in the book market and to be one of the largest book center in South China. 3 Function of five objectives of operations management in the organization Five objectives of operations management is quality, speed, dependability, flexibility, cost. These five objectives performance objectives underpin much of the work on performance measurement that has been undertaken subsequently (A. D. Neely, 2007a). Quality is the most important objective for this organization. Having the best products and services is the basic of the organization. It directly affects the success of the central. Dependability is another important objective to the center. Majority of the customer choose the center as they have faith and trust as it is highly dependable. Flexibility can make the central active and dynamic. The growth of this organization also depends on the speed. It is the organization’s highest interest to obtain the latest products and information, as well as their quick delivery service. These are the main factors which attract their customers. The objective in their costing is always to have minimal cost to attain the highest margin. This is a polar diagram of Guangzhou Book Center: cost speed dependability Quality Flexibility 4 Affection of five objectives to the organization 4.1 Quality Quality means the specification of a product or service and the conformance with which the product or service is produced (H. Song-Turner, 2011). It is about meeting and exceeding customers’ expectations. To the organization, quality not only represents environment and society sustainable products, services and solutions, but also the attitude and relationship with their customers. The most important in operation management of the center is quality. The factors that affect the effectiveness for quality is as below: 4.1.1 The center is clean and tidy. It also has a big space to contain various products and customers. 4.1.2 There are rich variety of books and video material and sport products. Therefore, customers have more choices here when they come to the center. 4.1.3 They also serve many group customers, such as libraries, society groups. It is also their goal to maintain a good relationship with them. The special services are supplied to the group customers includes supplying the latest books and video materials, as well as the catalog database. 4.1.4 They often invite many professionals to give seminars in their lecture hall. These are free services to the public. 4.1.5 The staffs are trained consistently in order to provide courteous, friendly and helpful services to the public. Quality, being the most important objective of the center, improvement in having a higher quality and services is needed. 4.1.6 Recommendation It will be better to provide sufficient space and facilities to customers who needed a rest, especially for senior citizens and handicapped. It is better if the staffs are able to assist customers who want to get a specific book which they has checked online beforehand and is patience to customers when it is too crowded. 4.2 Dependability Dependability means that delivering products and services in accordance with promises they have made to customers. It can help the organization to avoid customers’ complaints. Dependability can refer to schedule adherence, delivery performance and price performance (A. D. Neely, 2007b). Promises should be kept and executed – either in terms of delivery or making products and services available to their customers. Dependability is the second important objective to the organization. 4.2.1 It has been the Book Center’s concern to supply the best quality books and other video or media materials to the customers. Customers need not worry about the quality of the products they have purchased, for example, the copyright of the books is conserved; violence and sex content books are not made available. It is the best intention of Guangzhou Book Center be the leader of book seller and distributor of first-class quality. 4.2.2 The opening and closing time of Guangzhou Book Center is stated clearly, the process of the purchase and payment, as well as goods return policy, the process and delivery time are also specifically mentioned. 4.2.3 This organization has quite sufficient stock compare to other bookstores. Even when there are requested products in shortage, the central help to find and deliver the products from other bookstores or the publishing firms, thus reducing the waiting period. 4.2.4 The customer service counter helps customers to solve the problems they face, thus reduce the customers’ complaint and solve problems in time. 4.2.5 Recommendation It will be helpful if the central purchase autopay machines for customers when it is too crowded during weekend and public holidays. To customers who drive themselves, the center should provide sponsored parking vouchers when they make their purchase. 4.3 Flexibility This is a more complex objective because we use the word ‘flexibility’ to mean so many different things. The important point to remember is that flexibility always means ‘being able to change the operation in some way’ (N. Slack, 2011a). Flexibility can comprise up to as below: changing the volume of production, changing the time taken to produce, changing the mix of different products or services produced and innovating and introducing new products and services. To the organization, new or modified products and services can be supplied to the customers in time. 4.3.1 All latest arrivals are displayed on the latest products counter. This helps customers to get the latest information as quickly as possible. By being able to obtain the updated information, it keeps the center to be the leader in the market. 4.3.2 There are various methods of payment, cash, bank cheque (for group customers), bank transfer, post transfer as well as online payment. 4.3.3 Customers can also change or return products within a specified period if it is not suitable for them. 4.4 Cost Cost is obviously influenced by many factors. In the case, cost consists of purchasing cost of materials and services, technology and facilities costs, as well as staff costs and other costs. It is indicated as below: Technology and Purchasing cost of Facilities cost materials and services Staff costs Other costs To maintain the high standard of the center in quality, dependability, flexibility, speed, it needs to have sufficient fund for the purchase of its materials and services, maintain the latest technology and facilities, for example, autopay systems, computer management systems, a user friendly environment, well trained staff to supply good services to the customers. More staff will be needed when new area/ services is set up. It would be a big challenge for the Central to maintain a balance between minimizing cost and keeping first-class products and service. By having an affluent background, it has been the advantage of the organization to maintain being the leader in the market. Unnecessary cost should be reduced, for example, combining departments which are inefficient, retrenching incompetent staff. Though cost is deemed as less important for an affluent organization, cost control is however an important area to look into . 4.5 Speed Speed is a shorthand way of saying ‘Speed of response’. It means the time between an external or internal customer requesting a product or service, and them getting it. Again, there are internal and external affects (N. Slack, 2011b). Speed can refer to the time taken to generate quotes, the time to delivery, the frequency with which deliveres can be made, the time to produce the product (A. D. Neely, 2007c). It can help to overcome internal problems by maintaining dependability and reduce the need to manage transformed resources and saving cost. Speed does not seemed to be a big problem for the organization because by comparing it to other objectives of operation management in the central, customers emphasize on the quality, dependability and flexibility more than speed. Though it may not be the biggest problem, it still has room for improvements as below: It is difficult for a customer to find a particular book as there are too many books of the same category in a particular book shelf. Customers need more time to queue as there are too many people in the weekends and public holidays. It normally takes the organization a long period to finish the catalog database and supply to group customers after they have ordered plenty of books. Group customers often need a longer waiting period between ordering and delivery of books. 5 Future issues Although Guangzhou Book Center has been extremely successful, the question is how it could maintain this success. In the past it seemed to have a clear understanding of the competencies that formed the basis of its competitive advantages, especially in quality, dependability, flexibility, It is necessary to have more improvement in cost and speed. However, it needed to consider whether these would be sustainable, or whether strategic adaptations to its organization and operations strategies would be required.