... When Patsy opened her full service salon and day spa three years ago, she knew that she would have to make some difficult choices regarding the hiring and firing of qualified professionals such as cosmetologists, estheticians, nail technicians and massage therapists. However, she was confident that her salon management training at Chic University coupled with her industry experience as a stylist would serve her well. And serve her well they certainly did! Within three years of starting her own business, and after a few setbacks, she had managed to assemble a team of 10 salon professionals who were all extremely motivated, people-oriented, and driven individuals who worked hard at retaining their clients and drumming up retail sales. Of course, Patsy had put in place an incentive plan, which the stylists found to be challenging, yet lucrative. Patsy’s salon revenues had grown significantly each year to their current annual level of $500,000. On average, the salon serviced about 40 customers per day with an average ticket of $50. However, over the past year or so a number of new salons and nail spas had opened up in the city. Competition had become much more severe and customers were being swayed by numerous discount coupons. Patsy was well aware that her current sales growth rate of 10% would not continue for very long. At the suggestion of some of her regular clients, she decided to explore the possibility of expanding her service offerings to include tanning booths...
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...countries. Until today, MPA has proved its unlimited growth rate and the importance is how maintain the high position and thrive more in the future. Thus, this paper is aimed at the quality improvement of MPA service as well as in Maritime Cargo Transport. The research shows that MPA should consider choosing Total Quality Management or Six Sigma approach to enhance the port performance, maintain the environmental sustainability and efficiency. They are such powerful and essential tools in implementing and getting ultimate goals. MPA's main business is maritime service. Hence, in this report, the author applied the model that is called Supply Chain Operator Reference (SCOR) to measure the Maritime Port service and how it can affect the Maritime Port performance. SCOR module for MPA includes four process that are Plan, Source, Deliver and Return. In Plan process, the author choose customer response time for the most important factor due to the customer satisfaction. The lower customer response time, the better performance of the service is, so customer expectation will be fulfilled. For Sourcing process, there is nothing important than the partnership of suppliers and buyers. Singapore Port is taking towage service from third party and this towage service is such as a critical service at Singapore Port. In order to lower the operating cost and get higher productivity, this partnership must be solidly drawn. At Deliver process, this report shows the importance of the transport productivity...
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...discuss Albatross Anchor’s competitiveness in relation to (please address all items in the below list and provide support for your conclusions): 1. Cost a) Cost of Production: The Albatross Company has managed to keep all departments of the company within the same building, including manufacturing their products and this has helped keep costs down tremendously. Albatross’ manufacturing costs for the anchors are $8 per pound for the mushroom/bell and $11 per pound for the snag anchors. These prices that Albatross has set are the same prices as their competitors and yet they cut costs at a better level than their competition. b) Economies of Scale in material purchasing: Albatross produces their anchors by using the batch production method and finished products have sat inside the warehouse as finished goods. As we know this can be a cost disadvantage for a company. c) Cost of Raw Materials Sitting Idle in the Warehouse: Albatross is beating their competition when it comes to this type of cost. Since they have all of their departments inside this one building, they are cutting the cost of storing raw material that is not being used at the time of...
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...Productivity in Service Sector BRAC University BRAC Business School Spring 2016 Course: Production Operations Management (MSC301) Section: 001 Instructor: Md. Tamzidul Islam Assistant Professor, BRAC Business School Group Members Name ID Tasnia Jebin 12204103 Navid Anjum Khan 13104192 Rifat Shahrukh 13104047 Mohammad Muqtadir Ullah 13104061 Sadia Kamal 12204102 Atik Ilman Hossain 13104205 Date: April 4th, 2016 Question: What is Productivity? How do we measure productivity in a service environment such as restaurant? What are the factors that affect productivity? How does one can improve it? Answer: Introduction Goods and services are the products which have a demand in the market and generate enough revenue to make profit. Goods are tangible products which we can use, consume or otherwise have in our life. For example, cars, batteries, tables and everything which can be easily quantified by units of length, weight, volume. However, services are somewhat different products which are more intangible in nature. These products are usually ones which are rendered by human labor but also have some goods aspect to it. For example, A Hospital has syringes, medicines, MRI machines and lots of other goods. And they also have nurses and doctors who use these goods to give the patients (consumers) satisfaction as a total product package of both goods and services. One useful characterization of services is those things...
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...World Academy of Science, Engineering and Technology Vol:7 2013-06-25 Optimization Using Simulation of the Vehicle Routing Problem International Science Index Vol:7, No:6, 2013 waset.org/Publication/15351 Nayera E. El-Gharably, Khaled S. El-Kilany, and Aziz E. El-Sayed Keywords—Discrete event system simulation, optimization using simulation, vehicle routing problem. points or require a solution to be found quickly. Computational time on the fastest computers for optimization methods has been too long for many practical problems. Cognitive, heuristic, or combination heuristic-optimization solution procedures have been good alternatives [8]. The aim of this work is threefold; to present a new mathematical formulation of the VRP problem that uses fewer decision variables, to show how to model the TSP problem as a discrete event simulation model, and to employ the developed simulation model in finding the optimum/near optimum solution of the problem. This paper is organized as follows: in Section II, the basic concepts of VRP and the solution techniques found in literature will be briefly discussed. In Section III, proposed problem formulations will be presented followed by the simulation model development and optimization using simulation in sections IV and V. Finally, in section VI, the conclusions drawn from this work are presented. I. INTRODUCTION II. LITERATURE REVIEW HE vehicle routing problem (VRP) is one of the most intensively studied problems in operations research...
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...Process - A Case Study of Chinese Airlines Abstract With the development of a national market economy, the Chinese aviation industry is now confronted with international competition. Therefore, it is necessary to research the competitive status of Chinese national aviation, as well as advice on how to enhance the competitiveness of the Chinese aviation industry. The main objective of this paper is to propose FAHP as an effective solution for resolving the uncertainty and imprecision in the evaluation of airlines’ competitiveness. In this paper, we review the research of industrial international aviation competitiveness at both home and abroad, discuss a theoretical framework for the study of aviation competitiveness, establish an index system with 5 first-order indicators and 17 second-order indicators, set up a Chinese aviation competitiveness model based on simple fuzzy numbers from the Fuzzy Analytic Hierarchy Process, and evaluate the competitiveness of 5 major Chinese airlines. The results show that this model and these indicators are scientific and practical, with a wide range of application prospects for the purpose of improving and increasing Chinese airline competitiveness in the international market. The effective approach presented in this paper is especially applicable when subjective judgments on performance ratings and attribute weights are not accessible or reliable, or when suitable decision makers are not available. Keywords: aviation competitiveness;...
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...Introduction Capital budgeting is the decision-making process that establishes the goals and criteria for planning and investing a firm’s resources in fixed assets or long-term projects. Capital budgeting normally includes the evaluation of projects like land, building, facilities, equipment, vehicle fleets, and so on. Capital budgeting is important for the following reasons: 1. The size of the investments. As discussed throughout this book, the key function of a financial officer is to maximize the value of the company. Allocating large amounts of capital without proper investigation and analysis would expose the company to certain risks and may result in the devaluation of the company’s shares. 2. The length of the investment. In many long-term projects, the funds will be tied up for a long period of time. 3. Financing working capital. In the case of expansion, working capital is tied closely to the use of assets and increased sales. Increasing the firm’s output capacity will place additional demands on current asset needs. 4. Selection of a project. The future development and prosperity of the firm depends on proper deployment of funds in appropriate capital investments. Therefore, capital budgeting is an important part of the long-term planning process and should be included in a firm’s business planning. In this chapter you will learn about the capital budgeting process, including different approaches for evaluating...
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...E-business Projects Mark Jeffery, Northwestern University Introduction The Information Paradox Review of Basic Finance The Time Value of Money ROI, Internal Rate of Return (IRR), and Payback Period Calculating ROI for an E-business Project Base Case Incorporating the E-business Project Incremental Cash Flows and IRR Uncertainty, Risk, and ROI Uncertainty Sensitivity Analysis 1 2 4 4 6 6 7 8 10 11 11 11 Project and Technology Risks Monte Carlo Analysis Applied to ROI Executive Insights The Important Questions to Ask When Reviewing an ROI Analysis A Framework for Synchronizing e-Business Investments With Corporate Strategy Beyond ROI: Trends for the Future Acknowledgments Glossary Cross References References 12 13 14 14 14 16 17 17 17 17 INTRODUCTION As the late 1990s came to a close, many companies had invested heavily in Internet, e-business, and information technology. As the technology bubble burst in 2000 many executives were asking “Where is the return on investment?” When capital to invest is scarce new e-business and information technology (IT) projects must show a good return on investment (ROI) in order to be funded. This chapter will give the reader the key concepts necessary to understand and calculate ROI for e-business and IT projects. In addition, the limitations of calculating ROI, best practices for incorporating uncertainty and risk into ROI analysis, and the role ROI plays in synchronizing IT investments with corporate strategy will be discussed. What is ROI? One...
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...and money can be saved through applying looser controls to the low-dollar-volume class items than will be applied to high-dollar-volume class items. The ABC principle is applicable to inventories, purchasing, sales, etc. Available Inventory The on-hand inventory balance minus allocations, reservations, backorders, and (usually) quantities held for quality problems. Often called beginning available balance Safety Stock The level of inventory desired at any time to counterbalance the many uncertainties met in a supply chain. Cycle count An inventory verification method that uses periodic, scheduled counts of inventory and associated locations to determine accuracy. Count schemes may be designed based on usage volume, all parts in specific warehouse rows, or other methods and normally involve the use of trained count personnel. WIP (Work in Process) The inventory under assembly in an assembly plant Backlog All the customer orders received but not yet shipped. Sometimes referred to as open orders or the order...
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...Chapter 15 Operational Performance Measurement: Indirect-Cost Variances and Resource- Capacity Management Cases 15-1 Berkshire Toy Company (Source: Dean Crawford and Eleanor G. Henry, “Budgeting and Performance Evaluation at the Berkshire Toy Company,” Issues in Accounting Education, 15 (2) (May 2000), pp. 283-309.) 15-2 The Mesa Corporation (Source: Robert Capettini, C. W. Chow, and J. E. Williamson, “Instructional case: the Proper Use of Feedback Information,” Issues in Accounting Education, 7 (1) (Spring 1992) pp. 48-56.) Readings 15-1: “Using Enhanced Cost Models in Variance Analysis for Better Control and Decision Making,” by Kennard T. Wing, Management Accounting Quarterly (Winter 2000), pp. 1-9. This article points out that oversimplifications of fixed and variable costs can result in the standard costing system not being used or, if used, can lead to bad decisions. That is, misclassifications of cost behavior patterns make variance analyses “paper tigers.” For variance reporting to be useful, financial managers need to develop cost models that reflect how costs actually behave. Discussion Questions: 1. Describe the implications for variance analysis of analyzing a semi-variable cost as either a variable or fixed cost. 2. Describe the implications for variance analysis of analyzing a step-fixed cost as either a variable or fixed cost. 3. Describe the implications on operating decisions of analyzing an operation with mixed costs...
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...strategies in order to compete with other companies. So, they put together a plan in which everyone in the company can follow. They are responsible for using the company data, to push the company in the right direction. This direction should line up with the organization’s vision or objectives. There can be several different departments and employees involved to accomplish the strategic objectives. While strategic decision making depend on the concepts of data analysis, nevertheless it depends secondarily on optimal decision making as the means for calculating or forecasting the profit. Strategic, tactical intelligence, and routine business practices play a big part of management decisions. Also, cost, service differentiated product strategies are used to make larger profits. Sometimes, these decisions and practices are not always fair to the employees and customers. Ethical problems exist concerning the kind of data sought after and the methods used to get it. “There are six things that God hates, seven that are an abomination to him: a lying tongue, haughty eyes, and a heart that devises wicked plans, Feet that make haste to run to evil, and false witness who breathes out lies”(Proverbs 6:16-19 ESV). Upper management officers have to ask themselves is it worth risking the company’s name or reputation. Upper management must make decisions to earn larger profits under the normal market circumstances facing the company. Companies can inflate their sales by recording proceeds for...
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...Raytheon: An International Firm Raymond C. Branham Embry-Riddle Aeronautical University Managerial Accounting for Decision Making (MBAA 517) Dr. Mark Bellnap December 1, 2011 TABLE OF CONTENTS Abstract 3 Raytheon: An International Firm 4 Section I 4 Goods and Services, Market Share, Geographic Locations, and Major Competitors 4 Section II 5 Activity Based Costing at Raytheon 5 Section III 8 Standard Costs at Raytheon 8 Section IV 14 Relevant Costs at Raytheon 14 Section V 16 Summary, Conclusion, and Recommendations 16 References 18 Appendix 19 Abstract In today’s hectic economic environment, a company’s financial performance is becoming a highly focused upon part of successfully running a company in America and throughout the World. Equally important, is the ability to address accounting matters in this environment. At Raytheon, it is the task of each function within the company to consider each and every accounting aspect, because their customers are all over the world and each one of those customers approaches financial matters in unique ways. For Raytheon to maintain its success, it is imperative for each employee to understand how to manage these accounting aspects. The lack of accounting knowledge and specifically, each unique accounting approach, and how to execute each approach is why there is a huge problem with finances in corporate America today. Many organizations have altered their approach to this issue, but Raytheon has stood...
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...the administration ensures that there is an adequate separation of powers between the executive branch, led by the prime minister, the bicameral legislature and the judiciary, and that there is a system of checks and balances in place. The current population of the UK is 64.1 million. The UK was one of the largest macroeconomics in the world. It was seen to be one of the strongest and most stable economies before 2007, however post 2008 economic deceleration began and the GDP growth rate fell to 0.7%. In 2008, the economy entered into a recession, with a predicted negative growth rate of -4.5% for the following year. (Data monitor Statistics) The current conservative government’s main economic aims are Economic growth with more goods and services produced in the economy, alongside low inflation, little unemployment with a Fair distribution of income. (HM Treasury) Taxation comes in two forms direct taxation (taxation on income and profits) and indirect taxation this is taxation on expenditure (VAT, excise duty). The UK government spends in the region of £400bn a year. Over a third of this money goes in welfare benefits such as pensions, unemployment benefit and other forms of income support. The rest is spent on health, education, defence, roads, law and order and on supporting businesses and local communities. (Data Monitor Statistics) Businesses can benefit direct or indirectly...
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...[pic] Range [pic] Establishing Control Limits or Re-calculating the control limits Process Capability Index Just Capable Industry Standard (min) Excellent Process Capability Where Z (min) is the smaller of: Or: When Cpk=Cp, the process is centered. P Charts (Attributes) Maximum p: UCL*n Minimum p: LCL*n C Charts U Charts Maximum u: UCL*n Minimum u: LCL*n Chapter 1 Quality Perspectives Garvin’s Product Quality Dimensions 1. Conformance 2. Reliability 3. Features 4. Performance 5. Durability 6. Serviceability 7. Aesthetics 8. Perceived Quality PZ&B’s Service Quality Dimensions Tangibles(Physical appearance of facility Service Reliability(Dependable and accurate Responsiveness(Helpful and prompt Assurance(Knowledge and courtesy Empathy(Caring attention Viewpoint depends on function Core Processes • Value Stream Mapping| FlowChart • Six Sigma| value added • DMAIC – Define, Measure, Analyze, Improve, Control Downstream • Shipping and Logistics “Right product, right place, right time, right quantity” • Reliability of delivery • Customer support including after sales service In concurrent engineering, work is done as a multi-functional team. Three Spheres of Quality Quality Management(responsibility of all), Assurance(design), Control (scientific method) Contingency Theory of Quality No one method can be applied in all instances....
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...outstanding customer service. Today, Enterprise Rent-A-Car offers a wide variety of car leasing, vanpooling, car sharing and hourly rental programs – and local car rental customers are picked up at no extra cost. | | | | Neighborhood Network | | Unlike our competitors, we have always operated through an extensive network of local, neighborhood offices, each powered by the energy of a small, highly entrepreneurial team. The concept grew from humble beginnings: the basement of a St. Louis car dealership with a small team of bright, ambitious colleagues fielding phone calls, calculating rates and washing cars. Our first customers were the ones who really shaped the business model that we use today. They told us they wanted to rent cars where they live and work. As we built Enterprise, one neighborhood at a time over the years, we also built strong relationships with the people who call those communities home, and it is because of those relationships that we have achieved unprecedented growth. Through our neighborhood network, Enterprise: * Has locations within 15 miles of 90 percent of the U.S. population * Operates more than 6,500 offices in the U.S., Canada, the U.K., Ireland and Germany * Handles tens of millions of transactions every year * Purchases millions of dollars worth of vehicles through local dealerships | | Culture of Customer Service | | Enterprise Rent-A-Car Customer ServiceThe Culture of Enterprise Rent-A-Car Customer...
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