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

Operations Management - Essay Example2). This paper seeks to analyze the structure of the clientele and establish key performance measures for introducing changes to achieve the corpo come out objectives. Structure of the business Currently, the twelve holiday centers enlist on a standalone basis and produce quarterly reputes for HQ manually. The comp eachs decision to alter this process for exercising control on daily basis sensuald on the data from A2, A3 & A4 forever is a step in the right direction. Performance Key Measures Wangoway et al (2010) state, Performance of an organization has traditionally been measured by looking at the revenues or the utility 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 weekly performance report covering all the key performance measures to HQ. Key Performance Evaluation measures 1. Profits Formula (Net profit / Sales) x 100, i.e. unclutter pro fit as a percentage of sale for the period. Target 2% gain over the profit during the previous can be kept as a target. For instance, if it was 10% during 10 for restaurant business, the target is 12% for 11. pop the question 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 aptitude in the operations. However, improvement over the previous year involve to be the guiding factor. 4. Customer base Formula Increase in the essence 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. P urpose Increase in the customer base is the key to growth in business. 5. Room 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 Room occupancy depends upon various factors such as climate and general economical conditions, and the range could be 80 to 95%. Purpose This measures the performance in room booking. 6. Food and boozing 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 room occupancy. Purpose It could be affected due to several factors such as efficiency and pricing, and variance analysis would reveal the causes. 7. pound time in games, fitness and recreation facilities Formula Increase in utilization in hurt 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 think poor working conditions of the equipment. Also, old model equipments and facilities may not attract