3.21 service operation management

profileduty13
Sample3AS21.pdf

Background of Subway

 A large fast-food franchise primarily focusing on submarine

sandwiches (Subway, no datea).

 First store opened in 1965 and expanded to 16 locations by 1974

(Subway, no datea).

 The company experienced growth after deciding on franchising

(Subway, no datea).

 Largest submarine sandwich chain boasting more than 44,000 branches

worldwide (Subway, no datea).

 I chose to cover Subway Hednesford identifying its service concept

and operations.

 I’ve identified problems in the operations of the branch.

Background- Service concept

Adapted from

Johnston, Clark

and Shulver

(2012)

Background- Layout  Functional

layout – low-

volume, high

variety (Slack

and Brandon-

Jones, 2019).

Based on own experience

Background- Service processes

 Branch operates

a process focus

strategy (Heizer,

Render and

Munson, 2017).

Adapted from Johnston, Clark

and Shulver (2012)

Background- Process map

 Process times

may vary due

to decisions

(Rowbotham,

Galloway and

Azhashemi,

2007).

Adapted from

Heizer, Render

and Munson

(2017)

Problem analysis

Service supply chain

justification

 Service supply chain is “a wide concept that covers businesses dealing with things such as the supply of spare parts, third-party providers, finance, insurance, retail and governmental services” (Arlbjørn, Freytag and de Haas, 2011, p. 279).

 Address the problem of inaccurate online orders through third party delivery companies.

 Pareto analysis results showed this was the biggest problem.

 The restaurant can improve in Service supply chain.

Adapted from Heizer, Render and Munson (2017)

Service layout justification

 Service layout is one of the

decisions that determines the

efficiency of operations (Heizer,

Render and Munson, 2017).

 Address the lack of customer

toilets.

 Pareto analysis showed that

the lack of customer toilets is

a significant issue.

 The branch can improve in

the service layout area.

Adapted from Heizer, Render and Munson (2017)

Research objectives

1. Identify the most significant problems of Subway Hednesford’s

operations (Wright and Mechling, 2002).

2. Focus on the Service supply chain aspect of Subway Hednesford

and identify ways to improve in this area (Arlbjørn, Freytag and de

Haas, 2011).

3. Focus on the Service layout aspect of Subway Hednesford and

identify ways to improve in this area (Heizer, Render and Munson,

2017).

Resources and data

Data Source

Secondary research and personal

experience to identify problems

with Subway Hednesford’s

operations.

Google reviews (Appendix A, B

and C), Personal experience

Research to find out which

problems were the most

significant.

Questionnaire (Appendix D)

Research to find out which

solutions were the most effective in

solving the problems.

Questionnaire (Appendix E)

Research to complete cost-benefit

analyses of the chosen solutions.

Various websites and estimation.

Problem 1 analysis: Inaccurate online

orders via third party deliveries

 Customers may receive the wrong order or a lack of items, leading to a decline in service quality (Goh et al., 2017).

 Communication and cooperation isn’t the best and there’s no direct communication (Keeble et al., 2020).

Adapted from

Johnston, Clark

and Shulver (2012)

Problem 1 solution: Cross

training staff

Criteria Total

Solution Descripti

on

Amount

of

investm

ent

required

Impact

on the

problem

Time

required

to

impleme

nt the

solution

Applica

bility of

the

solution

Weight 2 (0.2) 4 (0.4) 1 (0.1) 3 (0.3) 10 (1)

1 Three

way

commu

nication

messagi

ng

56 64 57 65 61.8

2 In-house

delivery

53 71 51 62 62.7

3 Cross

train

staff

52 72 49 69 64.8

Adapted from Faulconer, Faulconer and Hanamean (2019)

Solution explanation

 Cross training staff would involve the branch training members of

staff to perform other tasks more effectively (Bokhorst, Slomp and

Molleman, 2004).

 Not all team members may have the best communication skills or

team building skills – training courses may be necessary (Pratchett et

al., 2016).

Solution 1 cost benefit analysis

Refer to Appendix F for

cost calculations

Problem 2

analysis: Lack of

customer toilets

 Customers unable to

access a toilet leads to

a decline in service

quality (Ryu, Lee and

Kim, 2012).

 The branch size may

be the root cause of

the problem.

 Local authorities

could force the

branch to install a

toilet under the 1976

Local Government

Miscellaneous

Provisions Act

(Ramaswamy, 2016). Adapted from Slack

and Brandon-Jones

(2019)

Problem 2 solution: Reducing

seating and install a toilet Criteria Total

Solution Descripti

on

Amount

of

investme

nt

required

Impact

on the

problem

Time

required

to

impleme

nt the

solution

Applicab

ility of the

solution

Weight 2 (0.2) 4 (0.4) 1 (0.1) 3 (0.3) 10 (1)

1 Reduce

seating

and

install

toilet

46 88 38 73 70.1

2 Direct

customer

s to other

shops

71 38 72 46 50.4

3 Allow

customer

s to use

staff

toilets

71 55 65 36 53.5

Adapted from Faulconer, Faulconer and Hanamean (2019)

Solution 2 cost benefit analysis

Refer to Appendix G for cost

calculations

Service supply chain conclusion

 To summarise, the Pareto analysis and Fishbone chart highlighted

the problem of inaccurate online orders via third party food

deliveries.

 Decision matrix shown cross training staff is the best solution.

 Cost-benefit analysis shows the benefits may outweigh the costs.

 I recommend that Subway Hednesford implement this solution.

Service layout conclusion

 To summarise, the Pareto analysis and tree diagram shown that the

lack of customer toilets was a big issue.

 Decision matrix shown reducing seating and installing a toilet is

effective.

 Cost-benefit analysis shows that the branch can increase sales in

the long term.

 I recommend that Subway Hednesford implement this solution.

Thank you very much

for listening to this

presentation

References

 AA (2021) Mileage calculator. Available at: https://www.theaa.com/driving/mileage-calculator.jsp (Accessed: 16 April 2021).

 Arlbjørn, J.S., Freytag, P.V. and de Haas, H. (2011) ‘Service supply chain management: A survey of lean application in the municipal sector’, International Journal of Physical Distribution & Logistics Management, 41(3), pp. 277-295.

 Bokhorst, J.A.C., Slomp, J. and Molleman, E. (2004) ‘Development and evaluation of cross-training policies for manufacturing teams’, IIE Transactions, 36 (10), pp. 969- 984.

 Brooks, A. (no date) PRICE GUIDE: HOW MUCH TO BUILD A DOWNSTAIRS TOILET EXTENSION. Available at: https://www.bellabathrooms.co.uk/blog/how-much-to- build-a-downstairs-toilet-extension/ (Accessed: 17 April 2021).

 Djekic, I., Kane, K., Tomic, N., Kalogianni, E., Rocha, A., Zamioudi, L. and Pacheco, R. (2016) ‘Cross-cultural consumer perceptions of service quality in restaurants’, Nutrition & Food Science, 46(6), pp. 827-843.

 Faulconer, E.K., Faulconer, L.S. and Hanamean, J.R. (2019) ‘Arriving at a Better Answer: A Decision Matrix for Science Lab Course Format’, Journal of College Science Teaching, 48(4), pp. 31-35.

References

 Focus on training (2021a) Team Building. Available at: https://www.focus-on- training.co.uk/leadership-management-training/team-building-courses/543134- birmingham-2021-06-17/ (Accessed: 16 April 2021).

 Focus on training (2021b) Communication Skills. Available at: https://www.focus-on- training.co.uk/personal-effectiveness-training/communication-skills-courses/539867- birmingham-2021-06-01/ (Accessed: 16 April 2021).

 Goh, S., Ng, S., Wong, S. and Chong, L. (2017) ‘OUTSOURCING TO ONLINE FOOD DELIVERY SERVICES: PERSPECTIVE OF F&B BUSINESS OWNERS’, Journal of Internet Banking and Commerce, 22(2), pp. 1-13.

 Google Maps (2019) All reviews. Available at: https://www.google.com/maps/place/Subway/@52.709747,- 2.0026315,17z/data=!4m7!3m6!1s0x487a75350345054b:0x59d390251cc2e8ee!8m2!3d52.7 09747!4d-2.0004428!9m1!1b1 (Accessed: 8 April 2021).

 GOV. UK (no date) National Minimum Wage and National Living Wage rates. Available at: https://www.gov.uk/national-minimum-wage-rates (Accessed: 16 April 2021).

 Hamilton, R.W., Rust, R.T. and Dev, C.S. (2017) ‘Which Features Increase Customer Retention?’, MIT Sloan Management Review, 58(2), pp. 79-84.

References

 Hedges, A.R., Johnson, H.J., Kobulinksy, L.R., Estock, J.L., Eibling, D. and Seybert, A.L. (2019) ‘Effects of Cross-Training on Medical Teams’ Teamwork and Collaboration: Use of Simulation’, Pharmacy, 7(1), pp. 1-10.

 Heizer, J., Render, B. and Munson, C. (2017) Operations Management: Sustainability and Supply Chain Management. 12th edn. Harlow: Pearson Education Limited.

 Johnston, R., Clark, G. and Shulver, M. (2012) Service Operations Management: Improving Service Delivery. 4th edn. Harlow: Pearson Education Limited.

 Jones, D. (2020) All Reviews. Available at: https://www.google.com/maps/place/Subway/@52.709747,- 2.0026315,17z/data=!4m7!3m6!1s0x487a75350345054b:0x59d390251cc2e8ee!8m2!3d52.70 9747!4d-2.0004428!9m1!1b1 (Accessed: 5 April 2021).

 Keeble, M., Adams, J., Sacks, G., Vanderlee, L., White, C.M., Hammond, D. and Burgoine, T. (2020) ‘Use of Online Food Delivery Services to Order Food Prepared Away-From-Home and Associated Sociodemographic Characteristics: A Cross-Sectional, Multi-Contrary Analysis’, International Journal of Environmental Research and Public Health, 17(14), pp. 1-16.

 McDonald’s UK (no date) The Financials. Available at: https://www.mcdonalds.com/gb/en-gb/franchising/the-financials.html (Accessed: 20 April 2021).

References

 Morgan, V. (2020) All reviews. Available at: https://www.google.com/maps/place/Subway/@52.709747,- 2.0026315,17z/data=!4m7!3m6!1s0x487a75350345054b:0x59d390251cc2e8ee!8m2!3d5 2.709747!4d-2.0004428!9m1!1b1 (Accessed: 8 April 2021).

 Nisbets (2021) Jantex Jumbo Toilet Rolls 2-Ply 300m (Pack of 6). Available at: https://www.nisbets.co.uk/jantex-jumbo-roll/dl919 (Accessed 17 April 2021).

 Paul, J.A. and MacDonald, L. (2014) ‘Modelling the benefits of cross-training to address the nursing shortage’, International Journal of Production Economics, 150, pp. 83-95.

 Pratchett, T., Young, G., Brooks, C., Jenkins, L. and Monagle, H. (2016) Practical Tips for Developing Your Staff. London: Facet Publishing.

 Ramaswamy, C. (2016) ‘Why a new toilet law could flush cafes and takeaways down the pan’, The Guardian, 18 May. Available at: https://www.theguardian.com/lifeandstyle/shortcuts/2016/may/18/new-toilet-law- flush-cafes-takeaways-down-the-pan (Accessed: 8 April 2021).

 Rowbotham, F., Galloway, L. and Azhashemi, M. (2007) Operations Management in Context. 2nd edn. Oxford: Butterworth-Heinemann.

References

 Ryu, K., Lee, H. and Kim, W.G. (2012) ‘The influence of the quality of the physical environment, food and service on restaurant image, customer perceived value, customer satisfaction, and behavioral intentions’, International Journal of Contemporary Hospitality Management, 24(2), pp. 200-223.

 Slack, N. and Brandon-Jones, A. (2019) Operations Management. 9th edn. Harlow: Pearson Education Limited.

 Subway (no datea) The History of Subway®. Available at: https://www.subway.com/en-GB/AboutUs/History (Accessed: 2 April 2021).

 Subway (no dateb) Menu. Available at: https://www.subway.com/en- GB/MenuNutrition/Menu (Accessed: 2 April 2021).

 Trusted Traders (2020) Cost guide: plumbers. Available at: https://trustedtraders.which.co.uk/articles/cost-guide-plumbers (Accessed: 17 April 2021).

 Victorian Plumbing (2021a) RAK Series 600 Close Coupled Toilet with Wrap Over Seat. Available at: https://www.victorianplumbing.co.uk/rak-series-600-close- coupled-dual-flush-wc-pak-with-wrap-over-seat (Accessed: 17 April 2021).

References  Victorian Plumbing (2021b) Armitage Shanks Sandringham 21 2TH Basin & Pedestal. Available at:

https://www.victorianplumbing.co.uk/armitage-shanks-sandringham-21-2th-basin-pedestal (Accessed: 17 April 2021).

 Victorian Plumbing (2021c) Bristan - Club Basin Taps - Chrome with Metal Heads - VAC-1/2-C-MT. Available at: https://www.victorianplumbing.co.uk/bristan-club-basin-taps-chrome-with-metal- heads-vac1-2cmt (Accessed: 17 April 2021).

 Victorian Plumbing (2021d) Zack Indici Information Sign - Stainless Steel - Man/Woman – 50712. Available at: https://www.victorianplumbing.co.uk/zack-indici-information-sign-stainless-steel-man- woman-50712 (Accessed: 17 April 2021).

 Victorian Plumbing (2021e) Franke CHRX669 269mm Wall Mounted Jumbo Toilet Roll Holder. Available at: https://www.victorianplumbing.co.uk/franke-chrx669-269mm-wall-mounted-jumbo- toilet-roll-holder (Accessed: 17 April 2021).

 Victorian Plumbing (2021f) Wenko Treviso Infrared 650ml Soap Dispenser - White – 18416100. Available at: https://www.victorianplumbing.co.uk/wenko-treviso-infrared-650ml-soap-dispenser- white-18416100 (Accessed: 17 April 2021).

 Viking Direct (2021) Carex Liquid Hand Soap Refill Antibacterial Professional Original 5L. Available at: https://www.viking-direct.co.uk/en/p/7022573?sgt=GB- R21&?utm_source=google&utm_medium=organic&utm_campaign=surface_google&cm_mmc=G oogle-_-pla_gen_google-shopping_desktop-essentials_gosc-_-desktop-essentials-gosc-_- 7022573&gclid=EAIaIQobChMI7N-6_OmA8AIVQZ7(Accessed: 17 April 2021).

References

 Wright, C.M. and Mechling, G. (2002) ‘The importance of operations

management problems in service organizations’, Omega, 30(2), pp. 77-87.

 Yang, K.K. (2007) ‘A comparison of cross-training policies in different job shops’,

International Journal of Production Research, 45(6), pp. 1279-1295.

Appendices Appendix A- Google review 1

Jones (2020)

Appendix B- Google review 2

Google Maps (2019)

Appendix C- Google review 3

Morgan (2020)

Appendix D-

Problem survey

Appendix E-

Solution survey

Appendix E

Appendix E

Appendix E

Appendix E

Appendix F:

Solution 1 cost

calculations

Appendix G:

Solution 2

cost

calculations