Operation Management | Assignment I

February 17, 2014

1. Describe operation system of your organization (input, transformation process, output) Retreat Serviced Apartments formerly known as Retreat Apartment is a project under CE Construction Pvt. Ltd. Retreat Service Apartments was introduced as accommodation facility for tourists and expats visiting Kathmandu for long or short term recreational or business visits. The Accommodation service is provided on a self-catering basis. Each Apartment has either 2 bedroom or 3 bedroom apartments, with a fully equipped kitchen, a living area and two bathrooms. The apartments are furnished to provide a luxurious stay and amenities of daily life. Retreat Service Apartments strives to be an innovative value for money upper midrange secured accommodation 2.0 solution where leisure travellers and mid-range business people, expats / company / project workers who work in a 4 km radius of the building find peace, comfort and rest. Derived from the value statement mentioned above the operation procedures strive to provide secured and comfortable accommodation, the operation system can be described as:

Input

Transformation

Output

Factors
Labor Capital Technology Materials Information

Processes
Apartment Development Housekeeping Booking System CRM Maintenance and Facility Management Request Processing Inventory management Human Resource Management

Service Delivery
Clean and Hygienic Apartment Secured and Comfortable Accommodation Customer Satisfaction

Kaushal Shrestha | 13522 | IV Trimester EMBA

Operation Management | Assignment I 2. How can you enhance competitiveness of your organization?

February 17, 2014

The Organization cannot seek to achieve price competitiveness because of the number of units are limited (25 Units in total) and the organization cannot seek to achieve economies of scale because of this limitation as well as the huge investment in operation to provide daily amenities such as uninterrupted power supply, hot water services and extreme broadband services to the guest. However, Retreat Serviced apartments can increase its competitiveness through service differentiation. Through: Facility management: Uninterrupted facilities in electricity, hot water, internet and minimized response time in maintenance and repair. Housekeeping Service: Providing excellent housekeeping to provide clean and hygienic apartments to the guests. Value Added Services: Service to provide guest with hassle free access to transportation, ticketing and recreational service. Bundled Services: Provide all the amenities of daily life to guest bundled in the rent instead of charging extra for each item. Customer Relationship Management: Keeping track of customers interest, request and queries that help the organization to manage customer relationships in an organized way.

3. Formulate mission and strategy of your organization? Be an innovative value for money upper midrange secured accommodation 2.0 solution where leisure travellers and mid-range business people, expats / company / project workers who work in a 4 km radius of the building find peace, comfort and rest.

Mission:

Strategy: Deliver better services through facility management and service differentiation

4. Describe/calculate present productivity (partial, total) of your organization? There are 7 Housekeeping staff working to clean and provide hygienic accommodation to the guests, currently 12 units in the building are in operation for the month which needs to be cleaned every day, the house keeping works 8 hours a day to clean the entire apartment in operation. The overhead cost is calculated to be 2 times the labor costs, each staff are paid a net salary of Rs. 37.5 per hour (9,000 per month). 0.67 lts of cleaning chemicals per day is used (20 ltrs month) and cost is calculated to be Rs. 150 per ltr.

Kaushal Shrestha | 13522 | IV Trimester EMBA

Operation Management | Assignment I The present partial productivity: Labor measures = =

February 17, 2014

= 1.71 Apartments per Labor

Overhead measures

= 0.16 Apartments per Overhead

Material measures

= 0.119 Apartments per Chemical Cost

The total productivity

Total labor cost/day Total Overhead cost/day Total Equipment cost/day Hence, Total Productivity measures

= = =

= 0.0043 Apartments per Rupees

Kaushal Shrestha | 13522 | IV Trimester EMBA