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Operations Management “ Your Garden Gloves ”

Operations Management “ Your Garden Gloves ”. Team: Papaya Nick Presented by: Jason, Jimmy, Nick, Rachel, Richard, Sandy. Professor: Ying Jiun Hsieh. Outline. 1. Case Introduction 2. Question D iscussion 3. Questions and Answers. 1. Case Introduction – “Your Garden Gloves”.

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Operations Management “ Your Garden Gloves ”

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  1. Operations Management “Your Garden Gloves” Team: Papaya Nick Presented by: Jason,Jimmy, Nick, Rachel, Richard, Sandy Professor: Ying JiunHsieh

  2. Outline 1. Case Introduction 2. Question Discussion 3. Questions and Answers

  3. 1. Case Introduction – “Your Garden Gloves” Company Background: • Gardening business • Established 5 years ago • Substantially business growth • Each year 10 new clients and a new employee • Currently 8 seasonal employees

  4. 1. Case Introduction – “Your Garden Gloves” Company Background: • Assign crew to do tasks • Crew size range from 2 to 4 workers • Largest job took longer time • Take a investigation

  5. 2. Question Discussion Question 1 Which crew size had the highest productivity? Which crew size had the lowest productivity? What are some possible explanations for these results?

  6. Productivity Ratios • Productivity ratios

  7. Explanation Productivity Ratios Productivity Paradox • New workers (Grouping of employees with different experience level) 2. Quality of tools

  8. 2. Question Discussion Question 2 After a recent storm, a customer called in a panic, saying that she had planned a garden party for the upcoming weekend and her garden was shambles. The owner decided to send a crew of four workers, even though a two-worker crew would have a higher productivity. Explain the rationale for this decision.

  9. Prioritization Critical activity with high importance and urgency

  10. Rational Explanation • Time pressure • 4 people have the highest total output per day • 4 workers should complete the work asap

  11. Illustration • Assumption: Garden size 20,000 square feet Case 1 Crew size 2 4,234 ft²/day Duration: 4.7 days Case 2 Crew size 4 7,860 ft²/day Duration: 2.5 days

  12. 2. Question Discussion Question 3 What is a possible qualitative issue that may very well influence productivity levels that the productivity ratios fail to take into account?

  13. Qualitative Issues 1. New company: • Founded only 5 years ago • Low employee loyalty Solutions: • Offer long-term contracts • Provide a career path • Develop relationships

  14. Qualitative Issues 2. Seasonal work: (weather conditions, location) • 6 month operating time • No continuous work flow through the whole year • Employees may look for permanent jobs → drop outs

  15. Qualitative Issues 3. Standardization: • Standardized processes increase the productivity level of employees Solution: Introduction of standard operation procedures • In long term, employees may feel less motivated and reduce productivity level Solution: Assign different tasks from time to time

  16. Qualitative Issues 4. Incentive plans that reward productivity can increase productivity • Productivity level influenced by structural division between management and labor • Goal: Willingness that workers give their best Solution: Performance related wages

  17. Qualitative Issues 5. Experience of workers • Employees with longer experience have usually a higher productivity level than less experienced workers 6. Quality of tools • Has an impact of the productivity level

  18. 3. Questions and Answers

  19. Sources • Operations Management by William J. Stevenson (11th Edition). • http://anywhereworking.org/2013/productivity-hack-friday-actions-urgent-important-matrix/ • http://upload.wikimedia.org/wikipedia/commons/thumb/5/50/Michigan_in_United_States.svg/800px-Michigan_in_United_States.svg.png • http://de.climate-data.org/location/17804/

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