Operations Management Coursework
According to Trochim (2012), the word capacity means the potential to accommodate a large number of people. The maximum amount of people, who can be accommodated in Walden Manor in Leominster is estimated in 8,000 per year while their primary goal is to ensure that the business meets strategic planned goal in an effective and efficient way.
Walden Manor is a room containing 35 subsections in the countryside near Leominster and it comprises of many sections like health farm, portfolio, significant of SPA services, alternative therapies among others. However, Walden Manor Massage Studio indicates a figure of 20% of the guests who are estimated to use the massage services in at least once in every three months. The figures used to calculate Walden Manor Massage studio capacity contribution in relation to gross profit are ?35, which is the gross profit of massage subtracted from the number of overnight visitors which is assumed to 8,000 per year.
Therefore the capacity contribution gross profit will be done by subtracting amount of revenues incurred from the profit in studio. Gross profit is equal to gross sale deducted from the cost of goods sold.
8,000 multiplied by ?35 is 280000
The Gross Sale is ? 280000
Walden manor overnight operates at 13% margin; therefore
13% multiplied by the sales of goods i.e. 8,000 per year
To get the gross profit, 8000 is multiplied by35 revenue
35*8000 = 280000
= 13/100 * 8000
Gross profit = 280000-1040
3) Massage Studio Capacity
Massage Studio capacity has a revenues of at least?80 per massage. The calculation figures would be the number received during the overnight which is 8,000 multiplied by the number of visitors in Walden Manor studio estimated in a year:
4) Capacity Utilization
Moira Livingstones survey guests are estimated to be paying ?80 a time. The capacity for the number of massage studios guests would make them to achieve their goal if they would use the service as it is predicated. Generally, the capacity utilization would be;20% of the guests who are predicted to use a massage service, then this figure is multiplied by the assumed total number which 3 times in a year and also 5% multiplied by ? 8,000 which is estimated to be used once in a year.
Therefore; three times in a year
They would be paying ?80 a time,
Therefore a year has 12 months
The above figure is then divided by estimated ?80 of the services which is multiplied by the figure from 3 times in a year
3 times in a year= 12/4
Capacity utilization is ?15
Bearing in mind that staff are allowed regular breaks, time off for training, holidays, and sickness and emergency absence and cannot be treated as if they were machines, and the studio is open for twelve hours a day, whereas the greatest number of massages that a single masseur/se could reasonably manage in an eight-hour working day would be six, to justify this statement.
One to concentrate on the number of customers in a year that can make an increase of the profits goals and then divide by the number of days in a year to get the massage offer.
Staffs hired in total =22
6) Employment Nature
The nature of employment in Walden manor massage would be based on the determined goals and objectives in the organization. As a form of case study, successful strategies will be formulated in tackling the workforce in the organization and other development issues like mentoring the staffs in the organization and developing the pathways through systematic approach (Basau, 2004).
7) Staff Task
Staffs retention will be highly monitored in the organization whereby they will have to guide the other subordinates for good practice in workforce development. On the same, they will be fostering supportive work culture in the organization which involves staff task and developing opportunities by motivating workforce to boost the business and improve profit margin (Bidgoli, 2004).
8) Table 1 of Case Study
Net work diagram is explained in form of creating tables and indicating the activity, predicting time and duration then lastly basing them on network diagram (Bidgoli, 2004).
For the preparation of Massage Studio, there is need of a NetWork Diagram to identify the necessary activities, which have to take place step by step. These activities will be worked out and added in a diagram and at the same time a critical path method is involved to find the optimal way of finishing the activities from task A to W. NetWork Diagram is a very essential task to be performed because it helps in predicting time scale of the project. The benefits of each set of time and critical diagrams shows essential activities like predicting time.
The critical indicated in the diagram above figures out the important tasks of the Walden massage studio. The main aim of indicating the critical path method is to produce a systematic order of activities and break them down into smaller activities that are very crucial in the entire task.
The term free float is used in business operation management to describe the amount of time used to complete the planned activities and goes up to the point at which the next activity starts. Critical Path Method helps to identify days of float available in the start date of the activity and the one which follows afterwards (Silva, 2012).