Operations Management Essay Example | Topics and Well Written Essays - 2500 words - 3

Operations Management - Essay Example2). This paper seeks to prove the structure of the business and establish key performance measures for introducing changes to achieve the corporate objectives. Structure of the business Currently, the twelve holiday centers operate on a standalone al-Qaida and produce quarterly reports for HQ manually. The companys decision to automate this process for exercising control on daily basis based on the data from A2, A3 & A4 continuously is a step in the right direction. Performance Key Measures Wangoway et al (2010) state, Performance of an organization has traditionally been measured by face at the revenues or the pull ahead made at the end of the year, or using key financial ratios (p. 859). However, non-financial measures are also important. The centres need to send hebdomadary performance report covering all the key performance measures to HQ. Key Performance Evaluation measures 1. Profits mandate (Net profit / Sales) x 100, i.e. net profit a s a percentage of sale for the period. quarry 2% increase over the profit during the foregoing can be kept as a target. For instance, if it was 10% during 10 for restaurant business, the target is 12% for 11. Purpose Profit is the ultimate measure for success in any business. 2. Sales growth Formula Increase in sales during the current year expressed as a percentage of sales during the previous year. Target Fixed as in the case of net profit. ... Target Industry average could be the target if the company lags behind it. Otherwise, fixation of target is a management task as it is related to capital investment or expansions apart from improving efficiency in the operations. However, improvement over the previous year needs to be the manoeuvre factor. 4. Customer base Formula Increase in the total number of customers serviced expressed as a percentage of the total number of customers serviced during the previous year. Target Fixed as in the case of net profit and sales. Purpose Inc rease in the customer base is the key to growth in business. 5. means occupancy rate Formula (n/164*) x 100 Where n is the number of days booked. (* 90% of 3-1/2 days in a week) Target live occupancy depends upon various factors such as climate and general economic conditions, and the range could be 80 to 95%. Purpose This measures the performance in mode booking. 6. Food and beverage sales Formula Increase in sales during the current year expressed as a percentage of sales during previous year. Target Fixation of target depends upon trends and targets in direction occupancy. Purpose It could be affected due to several factors such as efficiency and pricing, and variance psychoanalysis would reveal the causes. 7. Log time in games, fitness and recreation facilities Formula Increase in utilization in terms of hours during the current year expressed as a percentage of hours during the previous year. Target The target needs to be fixed based on the conditions of the equipments and need for repairs and overhauling. It could be related to room occupancy as in the case of food and beverage sales. Purpose The decrease in utilization may mean poor working conditions of the equipment. Also, honest-to-goodness model equipments and facilities may not attract