MBALN670 – Supply Chain Management

CRUISE INTERNATIONAL, INC.

A VIRTUAL SERVICE CASE

Operations Management, 4e Reid, Sanders

Mission Statement

We are committed to serving our customers, both the guests and travel agents who book and support our cruises. Every service we provide must be of the highest quality whether it be shipboard or shore side.

We constantly seek improvement and innovation as we strive to reduce costs in order to maintain reasonable fares, further enhancing the value of our service. All bookings are serviced promptly and accurately with the highest respect and courtesy. We recognize that our suppliers and distributors must have an opportunity to make a fair profit.

Cruise International, Inc. is concerned about our staff, the men and women who work with us, whether shipboard or shore side. All employees are provided with clean, orderly, and safe working conditions. Each employee is treated with respect and recognized for his/her effort. Cruise International is committed to providing competent management.

Our ultimate responsibility is to our parent company and its stockholders. Our business must make a reasonable profit.

Data and Charts Cruise Data • North American Passenger Capacity • Cruise Destination Data • Cruise Destination Data (Seasonalized) • Average Length of Cruise Data • Length of Cruise Demand Data • Average Capacity Utilization Quality Survey Data • Billing Errors Data • Guest Survey Data • Housekeeping Stateroom Cleaning Data Work Sampling Data Hours Required to Accomplish Routine Maintenance Tasks Cost Reports Processing Time Chart Activities for Telemedicine System Implementation

CRUISE DATA

North American Passenger Capacity

Individual Cruise Line Detail at Year-End 2009

Cruise Line

No. of Lower Berths No. of Ships

Carnival Cruise Lines 47,908 21 Celebrity Cruises 14,762 9 Costa Cruise Lines 17,265 10 Cruise International, Inc. 13,120 12 Crystal Cruises 2,014 2 Cunard Line, Ltd. 4.411 2 Disney Cruise Line 3,508 2 Holland America Line 16,929 12 MSC Cruises USA 9,073 7 Norwegian Coastal Voyages 5,923 13 Norwegian Cruise Line 20,950 11

Oceania Cruises, Inc. 2,052 3 Orient Lines, Inc. 845 1 Princess Cruises 28,800 14 Regent Seven Seas Cruises 2,410 5 Royal Caribbean International 45,570 20 Seabourn Cruise Lines 624 3 Silversea Cruises 1,356 4 Swan Hellenic 360 1 Windstar Cruises 604 3 Total 234,077 155

Cruise Destination Data

Cruise Destination Data (Seasonalized)

Average Length of Cruise

Length of Cruise Demand Data

Average Capacity Utilization

QUALITY SURVEY DATA

Billing Errors Data

Cruise Number

Number of Defective Bills

1 47 2 45 3 59 4 50 5 74 6 71 7 65 8 49 9 26

10 29 11 32 12 35 13 48 14 46 15 51 16 64 17 52 18 44 19 46 20 51 21 45

Total 1029

Guest Survey Data

Cruise Number

Number of Outstanding Responses

1 14 2 13 3 15 4 14 5 18 6 10 7 26 8 8 9 17

10 12 11 13 12 14

13 17 14 11 15 8

Total 210

Housekeeping Stateroom Data

Day Number of

Defects 1 108 2 104 3 94 4 105 5 88 6 150 7 85 8 98 9 145

10 95 11 105 12 65 13 77 14 82 15 90 16 98 17 116 18 113 19 88 20 94

Total 2000

Housekeeping Work Sampling Data

Activity Number of times observed Cleaning stateroom 144 Delivering room service 12 Removing room service dishes 17 Arranging laundry/dry cleaning service 13 Delivering clean garments 22 Evening turndown service 70 Assisting guests 20 Preparing for crew show 10 Other activity 20

Unavailable for observation 38

Hours Required to Accomplish Routine Maintenance Tasks

Cost Reports Processing Time Chart

Cost Reports Process Time (minutes) Report Review Time Data Entry Time Specialty Restaurant I 12 10 Specialty Restaurant II 14 16 Wine I 17 18 Wine II 20 22 Wine III 12 15 Bar Service I 10 15 Bar Service II 25 32 Bar Service III 22 28 Bar Service IV 16 20

Shore Excursions 30 35 Gift Shops 24 30 Salon/Spa 18 25