Operations_Management

CONTENTS INTRODUCTION     What is a Product Industry' What is a Service Industry' Differences in Product and Services offerings Similarities in Product and Services Industry PAGE NO 4 4 4 4 5 5 5 6 6 7 7 7 7 8 9 9 9 9 10 10 10 Operations Management Page 1   Filling and packaging Advantages and Disadvantages 10 11 1.2 Process Strategy and Design 12 12 12 12 12 12 13 13 13 14 14 14 15 1.2.1. Introduction       Process Focus Repetitive Focus Product Focus Mass Customisation Focus PepisiCo.Inc Thekwini Fet College Conclusion Capacity   How to increase capacity How to decrease capacity Conclusion 1.3 Supply chain management 16 16 16 16 16 1.3.1 Introduction    The finances flow The product flow The information flow Viaksha Hurinanthan Operations Management Page 2 1.3.2 Comparison and contrast of supply chain management in the service industry and product industry.   Service Industry- Thekwini Fet College Product Industry- PepsiCo Incorporated 17 17 18 19 20 1.3.3 Challenges 1.3.4 Conclusion 1.4 Scheduling 21 21 21 21 1.4.1 Introduction   Static scheduling Dynamic scheduling 1.4.2 Comparison and contrast of scheduling in the service and product industry.      Thekwini Fet College Advantages Disadvantages PepsiCo Inc PepsiCo goes Digital 21 21 22 22 23 24 24 1.4.3 Conclusion 2. Bibliography 26 Viaksha Hurinanthan Operations Management Page 3 INTRODUCTION Ritzman, Krajewski and Malhotra,(2009) describes Operations Management as, the maintenance, control, and enhancement of organisational activities that are mandatory to produce goods or services for users. Operations management has conventionally been associated with manufacturing activities but can also be applied to the service sector. The measurement and evaluation of operations is usually undertaken through a process of business evaluation. Hence  What is a Product Industry' Ritzman, Krajewski and Malhotra (2009) define a product as a thing produced by labour or effort or the result of an act or a process.  What is a Service Industry' An industry made up of companies that primarily earn revenue through providing intangible products and services. Service industry companies are involved in retail, transport, distribution, food services, as well as other service-dominated businesses according to Ritzman, Krajewski and Malhotra (2009).  Differences in Product and Services offerings Bool (2006) states that product and services differ in the following:  Intangibility versus tangibility – services are not physical, cannot be "possessed," can't be seen, felt, etc. the ability to reduce consumer uncertainty through tangible signals is diminished, were as a product is a tangible physical entity.  Inseparability– Inseparability is the production of the services can't be separated from its consumption. For example, the production and consumption of a medical exam happen together. This means that the consumer often expects the service to be provided in a specific way or by a specific individual. Viaksha Hurinanthan Operations Management Page 4  Perishability -- Services cannot be stored for future use. When a client misses an appointment with his attorney, that time can never be recaptured. In production industry products are be manufactured and stored ahead of time.  Variability -- sometimes called "heterogeneity," services quality and consistency is subject to great variability because they are delivered by people and human behaviour is difficult to control.   Ownership- Services can’t not be owned, in retrospect products can. A product is manufactured by a manufacturing process. A service is accessible by the utility element of corporations.  Similarities in Product and Services Industry Tsiakkiros & Pashiardis (2002) states that in terms of similarities, the manufacturing industry and the service industry is to make a profit, how this is done may differ by at the end both seek to achieve something. Another parallel between these industries is that they encounter demanding customers and who have needs that require fulfilling, as it is these customers who will determine the future of these industries. The product and services industry are comparable, in their strive to offer the best from within their organisations and staying ahead of their competitors. This Assignment will look at four of the ten critical decisions of Operations management from a product industry, as well as, from a service industry point of view, in terms of the following:     The process of Transformation of inputs to outputs. Process and capacity design. Supply chain management. Scheduling. The following organisations will form the basis of this assignment.   Service Industry - Thekwini Fet College Product Industry - PepsiCo Incorporated Viaksha Hurinanthan Operations Management Page 5 1.1. The Process of Transformation of Inputs to Outputs 1. Definition of the transformation process Figure 1: The Transformation Process Source: (Tsiakkiros & Pashiardis ,2002:178) Tsiakkiros & Pashiardis (2002) explains that products and services can characterise the transformation process’ outputs, where the goods are tangible, storable and transportable. Services again are intangible and are not storable and transportable. They are typically consumed simultaneously during the production process. The outputs from the transformation process is usually a combination of these both products and services outputs. 2. Service Industry – Thekwini Fet College FET COLLEGE strive to provide high-quality education and training to help the youth equip themselves with the qualifications and skills they need to start out on a chosen career path. THEKWINI FET COLLEGE also works closely with players and stakeholders from various industries to help fulfil the great need that exists for trained, skilled and qualified employees through customised education and training programmes.  Student selection and registration Applications are accepted from around October each year. Registrations take place once a year, in January. Students apply as soon as possible (once Viaksha Hurinanthan Operations Management Page 6 applications open) as a placement assessment must be completed, and limited space is available for NC(V) students.  The input Highly qualified and competent academic staff, the course pack, textbooks and the learning material to support the modules are the resources utilised at Thekwini Fet College. This input together with the other factors including facilities, support services and value added benefits are all included to transform this input into a suitably qualified individual.  Evaluation of the Service The NC (V) course is monitored continuously through campus and college moderation to ensure that delivery is in agreement with the recommended standards outlined by the Department of Education. The students are afforded opportunities evaluate the various courses and lecturers that they encounter.  Assessments (both Practical and theoretical) After the completion of each module s within the respective courses, students are then given an assessment task to complete. The task is then marked and moderated and the student is awarded a mark that accumulates towards their final year mark. The year mark is added to the marks obtained in the final examination and which will determine the level of competence of the student and whether or not the student is eligible to progress to the next level.  Output- Awarding of the NC (V) Certificate A student who has effectively finished all modules within the course student is entitled to an NC (V) certificate which is equivalent to a matric certificate. The student is thereafter able to seek employment in their respective field of study or further their studies at a tertiary institution. Viaksha Hurinanthan Operations Management Page 7 3. Product Industry – PepsiCo Incorporated Figure 2: Transformation Process PepsiCo Source: (PepsiCo, 2011) Pepsi was founded in 1898 by Caleb Bradham, a New Bern, North Carolina, druggist, who first formulated Pepsi-Cola. PepsiCo (2011) illustrates that today, Brand Pepsi is part of a portfolio of beverage brands that includes carbonated soft drinks, juices and juice drinks, ready-to-drink teas and coffee drinks, isotonic sports drinks, bottled water and enhanced waters. PepsiCo Americas Beverages (PAB) has well-known brands such as Mountain Dew, Diet Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water, Sierra Mist, Mug, Tropicana juice drinks, Propel, SoBe, Slice, Dole, Tropicana Twister and Tropicana Season's Best. In 1992 PAB formed a partnership with Thomas J. Lipton Co. to sell ready-to-drink tea brands in the United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffee through a partnership with Starbucks. Viaksha Hurinanthan Operations Management Page 8  The Raw Materials Carbonated water constitutes up to 94% of a soft drink. Carbon dioxide adds that special sparkle and acts as a mild preservative. The second main ingredient is sugar, which makes up 7-12% of a soft drink. Used in either dry or liquid form, this also balances flavours and acids. Very small quantities of other additives enhance taste, mouth-feel, aroma, and appearance of the beverage. There is an endless range of flavourings; they may be natural, natural identical (chemically synthesized imitations), or artificial (chemically unrelated to natural flavours). Emulsions are added to soft drinks primarily to enhance "eye appeal" by serving as clouding agents. They consist of water-based elements, such as gums, pectins, and preservatives; and oil-based liquids, such as flavours, colours, and weighing agents. Saponins enhance the foamy head of certain soft drinks, like cream soda and ginger beer. To impede the growth of microorganisms and prevent deterioration, preservatives are added to soft drinks.  The Manufacturing Process Most soft drinks are made at local bottling and canning companies. Brand name franchise companies grant licenses to bottlers to mix the soft drinks in strict accordance to their secret formulas and their required manufacturing procedures. 1. Clarifying the water •The quality of water is crucial to the success of a soft drink. They are generally removed through the traditional process of a series of coagulation, filtration, and chlorination. During the clarification process, alkalinity must be adjusted with an addition of lime to reach the desired pH level. Viaksha Hurinanthan Operations Management Page 9 2. Filtering, sterilising, and de-chlorinating the water • The clarified water is then poured through a sand filter to remove fine particles of floc. The water passes through a layer of sand and courser beds of gravel to capture the particles. • Sterilisation is necessary to destroy bacteria and organic compounds that might spoil the water's taste or colour. The water is pumped into a storage tank and is dosed with a small amount of free chlorine. The chlorinated water remains in the storage tank for about two hours until the reaction is complete. • Next, an activated carbon filter de-chlorinates the water and removes residual organic matter, much like the sand filter. A vacuum pump deaerates the water before it passes into a dosing station. 3. Mixing the ingredients • The dissolved sugar and flavour concentrates are pumped into the dosing station in a predetermined sequence according to their compatibility. The ingredients are conveyed into batch tanks where they are carefully mixed tanks, using ultraviolet radiation or flash. • The water and syrup are carefully combined, which regulate the flow rates and ratios of the liquids. The vessels are pressurized with carbon dioxide to prevent aeration of the mixture. 4. Carbonating the beverage • Carbonation is generally added to the finished product, though it may be mixed into the water at an earlier stage. The amount of carbon dioxide pressure used depends on the type of soft drink. The beverage is slightly over-pressured with carbon dioxide to facilitate the movement into storage tanks and ultimately to the filler machine. 5. Filling and packaging •The finished product is transferred into bottles or cans at extremely high flow rates. The containers are immediately sealed with pressure-resistant closures. •As soft drinks are generally cooled during the manufacturing process, they must be brought to room temperature before labelling to prevent condensation from ruining the labels. Labels are then affixed to bottles to Viaksha Hurinanthan Operations Management Page 10 provide information about the brand, ingredients, shelf life, and safe use of the product. Cans are generally pre-printed with product information before the filling stage. •Finally, containers are packed into cartons or trays which are then shipped in larger pallets or crates to distributors. 4. Advantages and Disadvantages PepsiCo (2011) explains that beverage companies operate in a volatile industry that puts a premium on flexible, cost-efficient operations. Rapidly changing consumer tastes, fierce competition, and the constant struggle to sustain margins are just some of the challenges. The supply chain is complex, and customers’ expectations are high. Viaksha Hurinanthan Operations Management Page 11 1.2 Process Strategy and Design 1.2.1. Introduction Heizer and Render(2011) defines process strategy as an organisations approach in transmuting their resources into a tangible product or an intangible service, this should be undertaken to surpass the expectations of the consumer or customer, whilst operating at optimal productivity, yet lowest cost. Heizer and Render (2011) also states that there are 4 process strategies that an organisation may use, which are:  Process Focus      High degree of product flexibility. Small quantities, but larger variety of products or services. Products are made to order and not stored. Fixed costs are generally low, with variable costs being high. Repetitive Focus    This process is usually uses modules. Generally it is an assembly line. More structured, hence less flexibility.  Product Focus    High volume but low variety. High fixed costs, but low variable costs. Finished goods are made to a forecast and stored.  Mass Customisation Focus    Rapid low cost production, which is specified to the customers’ needs and requirements. Goods are built to order. Fixed costs are high, with low variable costs. Viaksha Hurinanthan Operations Management Page 12  PepisiCo.Inc PepsiCo Incorporated process strategy is more products focused, which means that their amenities are prearranged by product, which are manufactured through forecast and can be stock piled. The shelve life of their products is 1 year. Also there is a high volume and low variety of products.  Thekwini Fet College Thekwini Fet College is very much a process focused strategy, resources needed to provide greater capacity of services are known and can be implemented effectively. There are many and varying work instructions as stipulated by the Department of Education and the FET colleges Act.  Conclusion Heizer and Render (2011) alludes to the fact that Process strategies are usually employable within stable environments; however with fluctuation of world markets, worldwide political instability and the recession, these process strategies will need to be revised constantly to meet national and international standards and demands. The ever dynamic competitor market also needs to be taken into account in terms of the process strategies. Viaksha Hurinanthan Operations Management Page 13 1.2.2. Capacity Heizer and Render(2011) explains capacity as the maximum yield of a system within a specified period, which is usually communicated as a rate.  How to increase capacity Services Industry Employ more competent employees Product Industry Upgrade skills Buy more technology Increase productivity Increase overtime Increase overtime Streamline processes through the Outsource relevant components of the organisation Streamline processes through the implementation of lean Reduce change over time implementation of lean  How to decrease capacity Services Industry Early retirement packages Product Industry Reduce the number of products Short time during quiet periods Down-sizing and restructuring of the departsments within the organisation Down-sizing and restructuring of Flexi time departments with the organisation Voluntary retirement Viaksha Hurinanthan Operations Management Page 14  Conclusion Heizer and Render (2011) states that capacity decisions impacts the ability of the organisation to meet future demands and that affects the operating costs. These decisions crucially affect competitiveness and influences on the ability to meet future demands. Capacity fundamentally limits the rate of possible output. Having capacity to satisfy demand can allow a company of taking advantage of tremendous opportunities. Viaksha Hurinanthan Operations Management Page 15 1.3 Supply chain management 1.3.1 Introduction Happek, S (2005) explains that a supply chain is the stream of processes of moving goods from the customer order through the raw materials stage, supply, production, and distribution of products to the customer. All organisations have supply chains of varying degrees, depending upon the size of the organisation and the type of product manufactured. These networks obtain supplies and components, change these materials into finished products and then distribute them to the customer. Managing the chain of events in this process is what is known as supply chain management. Supply chain management flows can be divided into three main flows: •The finances flow The financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements. •The product flow The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs. •The information flow The information flow involves transmitting orders and updating the status of delivery. Happek, S (2005) discusses the two main types of SCM software: planning applications and execution applications.   Planning applications use advanced algorithms to determine the best way to fill an order. Execution applications track the physical status of goods, the management of materials, and financial information involving all parties. Increasing numbers of companies are turning to Web sites and Web-based applications as part of the SCM solution. A number of major Web sites offer eViaksha Hurinanthan Operations Management Page 16 procurement marketplaces where manufacturers can trade and even make auction bids with suppliers. 1.3.2 Comparison and contrast of supply chain management in the service industry and product industry  Service Industry- Thekwini Fet College (2005) addresses the following, in today's aggressive economic Happek environment, services industries are faced with the challenge of improving operational efficiencies and reducing cost, without negatively influencing customer service. Additional challenges arise as a result of technological revolution, escalating consumer expectations, frequently changing consumer requirements and a vibrant market scenario. New product developments, marketing and promotion costs are increasing continuously. Services providers are recognised, because only in that area it is possible to reduce costs in the supply chain. To meet these challenges, services providers are opting to apply Supply Chain Management practices (SCM), that generate a equilibrium between customer needs and supply chain capabilities. At Thekwini Fet College they have realised that the consequences of the current economic market and the need to move from a cost focus to a customer focus As Happek (2005) clearly emphasises the success of a strategy is only as good as the company’s ability to fully and properly execute it. A great supply chain strategy, linked with operational excellence, can provide success for not only the company in question but also its partners and customers. At Thekwini Fet College the academic component is as essential aspect of the college, as service delivery is dependent on this. However other resources like textbooks, computers and their relevant components (hardware, software, Internet service providers), cleaning and campus maintenance, security and catering is outsourced. This is done to assist Mangers in their core duty of ensuring that service delivery to their customers is optimal. Outsourcing has reduced the pressure and time consuming activities on managers and has effectively brought down the operational costs of the campuses. Viaksha Hurinanthan Operations Management Page 17  Product Industry- PepsiCo Incorporated According to PepsiCo (2011) The PepsiCo, Inc. functions as a worldwide food and beverage company, Just-in-time (JIT) remains one of the most cost-effective supply chain solutions for PepsiCo, when it comes to delivering high cost and perishable products to production locations. Just-in-Time (JIT) is a viewpoint that outlines the manner in which a production structure should be managed. The Pepsi brand and other Pepsi-Cola products are responsible for practically of the total soft drink sales in the United States. PepsiCo combined with 3PL provider Penske Logistics to run its transportation. PepsiCo (2011) explains that in a JIT environment, leading-edge technology and optimised transportation are very important. The consumer’s principal concern above all else is having a provider that can impeccably implement the procedure and distribute on time, every time. In regards to, PepsiCo who set two objectives for transportation management. One is to attain an on-time delivery rate at 99.1% and another is to minimise transportation costs. This requires a practiced and efficient operations team with the knowledge and skills to make the solution work in the real world. In 2000, says PepsiCo (2011), Penske converted Pepsi’s transportation management technology from propriety software to i2 transportation optimisation solution. i2 Transportation is a part of end to end solution for planning, execution, and management of the entire transportation cycle. This solution is designed to enable an organization to utilize and manage an entire transportation network, as well as reduce cost while improving transport performance. The growth in visibility makes it easier to keep records of consignments, review itineraries and programmes to accommodate unexpected variations and device substitute plans to counter delays. Viaksha Hurinanthan Operations Management Page 18 Pepsi’s orders are received electronically and improved to guarantee bottommost transportation cost. Progressive technology is organised to select the lowest cost carrier, locate the best routes and amalgamate shipments. Optimum load configuration ensures maximisation of each truckload. In summary, PepsiCo’s used the JIT process to its supply chain management. To make this possible, Pepsi partners with Penske that has provide them with i2 an transportation optimisation solution which has fulfilled their consumer with the ontime delivery and with the advantage to the company for it has also reduced transportation cost. Bertrand (2006) provided the following information regarding PepsiCo. Company Location: Plant Size Employees Operating hours Products handled :The Pepsi Bottling Group Inc. :Wytheville, Va. :354,000 square feet : More than 200 : 24 hours per day, 365 days of the year : Pepsi-Cola, Diet Pepsi, Mountain Dew, Sierra Mist, Aquafina water 1.3.3 Challenges Organization Challenges According to Happek (2005) the following are some common organisational challenges found in many companies:  Lack of ownership – many supply chain processes and value levers do not have an owner in the traditional sense. Managers don’t take ownership of these strategies and implementation becomes problematic.  “Tower of Babel” problem – most organisations across the enterprise do not speak a common supply chain language Viaksha Hurinanthan Operations Management Page 19   Organizational focus – some managers are functional or process oriented and do not understand the value levers’ multiple drivers model Extending the Supply Chain – most supply chain initiatives involve external parties (trading partners) which make strong collaboration a requirement and a necessity.  Developing a supply chain strategy without a true understanding of the business case and value propositions, where the costs and benefits are not known.  Utilising different or new resources in the operational model development that were not exposed to the original business strategy thinking, this weakens the supply chain strategy.  Confusing or conflicting communications to the organization where objectives may be contradictory. 1.3.4 Conclusion Happek (2005) states that Supply Chain Strategies are the backbone to any organisations and that a successful market exposure and the accessibility of products, is dependent on the efficiency of the Supply Chain Strategy employed. When a product is advertise and debuts in a market enterprise, there has to be nation accessibility to this product where the customers are able to buy and take delivery of it. Should the product not be available this can result in drop in consumer interest and demand which can be catastrophic. As Happek (2005) in today's competitive environment with increasing customer demands, organisations are looking for leveraging competitive advantage to deliver better customer service. Viaksha Hurinanthan Operations Management Page 20 1.4 Scheduling 1.4.1 Introduction Heizer and Render (2011) defines Scheduling as a term assigned to the planning of production in all aspects, from workforce activities to product delivery. While this type of planning is almost exclusively seen in manufacturing environments, many of the techniques are used by serviceoriented businesses. There are two main types of operation scheduling: static and dynamic.  Static scheduling carries an theory that all steps in a process can be defined and will not change. An example of a static plan would be a retail clothing company. In this case, production levels are determined up to one year in advance.  Dynamic scheduling adopts that steps in the process will change so nothing is scheduled until the demand is received. Dynamic scheduling works well in environments where there is a high degree of customisation. An example of a dynamic plan would be a floral shop. In these cases, while there may be a few arrangements for display and possible purchase, the primary focus is on creation of arrangements after an order is received. 1.4.2 Comparison and contrast of scheduling in the service industry and product industry  Thekwini Fet College Thekwini Fet College advocates the use of block scheduling, which is the restructuring of the college day whereby students attend half as many lectures, for twice as long. In a departure from the traditional 50-minutes per lecture, 6-8 classes per day ritual, students take four lectures, in 90- or 120minute blocks each day. Viaksha Hurinanthan Operations Management Page 21 In one of the two most common variations, the roster of lecturers alternates from day to day. In the other, it alternates from semester to semester. This was introduced to facilitate longer lecturers, as the courses offered at the college are predominantly practically based and the need for additional or longer lecture times was imperative.  Advantages: • The increased span of teaching time, longer cooperative learning activities can be completed in one class periods. Also, there is more time for practical exposure to Technology. •Students have less information to deal with over the course of a school day. •Because of the decreased number of classes, students have less homework on any given day during the week. •Planning periods are longer. It seems that with a longer span of time, planning becomes easier and more gets done.  Disadvantages • Students lost continuity on their off days. •If a student misses a day, that student is actually missing two, or sometimes even more days, as lectures are not repeated. • Information taught in a semester course has to be covered in 1 quarter. If I am teaching Economics, for example, while football season is occurring (Example Soccer World Cup 2010) lecturers lose valuable contact time. • It is very difficult to cover the necessary material for Advanced Placement courses in the time allotted. As these are practical course, which are generally very time consuming. Viaksha Hurinanthan Operations Management Page 22 PepsiCo Inc As illustrated in the section Supply Chain Management PepsiCo has introduced the Just in Time process as a solution to their Supply chain and scheduling management system. Bertrand (2006) explains that sanitation, automation and operator efficiency are the name of the game at The Pepsi Bottling Group's (PBG's) New River Valley plant in Wytheville. The plant, which PBG designed and built, opened in mid-2004. The company invested $60 to $70 million to build the facility. Bertrand (2006) explains that the plant's sanitation approach takes clean-up to a new level. The plant has a centralized computer system that automatically releases sanitising and cleaning solutions when and where they're needed. This system cleans the inside of the filling machine as well as the exterior. According to Bertrand (2006) this maintenance-free approach contrasts with the sanitation demands of a conventional filling room, in which fillers are housed in a room with tiled walls and a tile floor. Cleaning stations are strategically placed throughout the manufacturing portion of the facility, which allows staff to clean specific areas as needed. This saves time and labour and allows for a very high level of consistency. Bertrand (2006) states that to assist staff to maintain and monitor the equipment, PBG uses a computer system that controls all the equipment. Information about any piece of equipment is readily available instantaneously. Every work station has a touchscreen display that delivers the technicians with specific information about any equipment needs. This state-of-the-art technology improves the efficiency of the lines and reduces the downtime that may be required for diagnosing unexpected situations. The New River Valley plant also uses patented software to track plant performance by system, by process and by line. The system offers feedback that is used to increase quality, safety, service and cost levels. These tools are part of the facility's visual factory configuration, a lean manufacturing approach that simplifies equipment operation and plant navigation by delivering information intuitively. Viaksha Hurinanthan Operations Management Page 23  PepsiCo goes Digital PepsiCo (2011) broadcasted the launch of its Social Vending System, a stateof-the-art networked unit that features full touch screen interactive vending technology, enabling consumers to better connect with PepsiCo brands right at the point of purchase. Using digital technology, PepsiCo (2011) proclaims that PepsiCo’s Social Vending System enables any user to gift a friend by selecting a beverage and entering the recipient’s name, mobile number and a personalized text message. There’s also the option to further personalize the gift with a short video recorded right at the machine. The gift is delivered with a system code and instructions to redeem it at any PepsiCo Social Vending system. PepsiCo’s innovative use of telemetry (the science and technology of automatic measurement and transmission of data by wire, radio, or other means from remote sources), with the Social Vending System also delivers remarkable operational advantages, permitting consumers to carefully manage inventory levels and delivery scheduling remotely, and easily update digital content online, enabling them to change messaging and media content as needed. 1.4.3 Conclusion Happek (2005) explains that scheduling of services often encounters problems not seen in manufacturing. this is as a result of the nature of service, i.e., the intangibility of services and the inability to inventory or store services and the fact that demand for services is usually haphazard. Random demand makes the scheduling of labour difficult as seen in restaurants, movie theatres, and amusement parks. Since customers don't like to wait, labour must be scheduled so that customer wait is minimised. This requires the use of queuing theory or waiting line theory. Queuing theory uses estimate arrival rates and service rates to calculate an optimum staffing plan. In addition, flexibility can often be built into the service operation through the use of casual labour, on-call employees, and cross-training. Viaksha Hurinanthan Operations Management Page 24 Scheduling of services can also be complicated when it is necessary to coordinate and schedule more than one resource. For example, when hospitals schedule surgery, not only is the scheduling of surgeons involved but also the scheduling of operating room facilities, support staff, and special equipment. Along with the scheduling of classes, universities must also schedule faculty, classrooms, labs, audio-visual and computer equipment, and students. To further complicate matters, cancellations are also common and can add further disruption and confusion to the scheduling process. Instead of scheduling labour, service firms frequently try to facilitate their service operations by scheduling demand. This is done through the use of appointment systems and reservations. Viaksha Hurinanthan Operations Management Page 25 2. Bibliography Bertrand, K. (2006) The Pepsi Bottling Group runs clean and lean; highly automated and virtually maintenance-free, the New River Valley plant incorporates futuristic touches [Online], Avalable from: http://findarticles.com [Acessed 1 September 2011]. Bool, H. (2006) Differences between Products And Services [online], Available from: http://EzineArticles.com/'expert=Hans_Bool [Accessed 1 September 2011]. Happek, S. (2005) Supply Chain Strategy. The Importance of Aligning your Strategies [Online], Available from: http://www.ups-scs.com [Acessed 2 September 2011]. Heizer, J. and Render, B. (2011) Operations Management. 10 th Edition. New Jersey: Pearson. Ritzman,L.P., Krajewski. L.J. and Malhotra, M.K (2009) Operations Management. 9th Edition. United States: Pearson Education. Tsiakkiros, A. and Pashiardis, P. (2002) Strategic Planning and Education [Online]. Greece: University of Cyprus. Available from: http://www.emeraldinsight.com [Acessed 27 Jully 2011]. Pepsico (2011) PepsiCo Annual Report [Online][Available from: http://www.pepsico.com/Investors/Annual-Report.html [Acessed 3 September 2011] Mancosa (2011) Mba Year 1: Operations Management- Course Pack: Mancosa Viaksha Hurinanthan Operations Management Page 26 Viaksha Hurinanthan Operations Management Page 27