1

By Group 6
Patham Iyer
Unnikrishnan
Manesh
Latha
Suryanarayanan

AMRITA
SCHOOL OF
BUSINESS
TAKE HOME ASSIGNMENT
OPERATIONS MANAGEMENT
1
Table of Contents
1. Baria Planning Solutions......................................................................................................................... 3
1.1. Organisational and Operational issues .............................................................................................3
1.2. Sales team by Industry .....................................................................................................................3
1.3. ybrid Sales support group stru!ture................................................................................................"
1.". Solution selling pro!ess # Most $alued by the !ustomer...................................................................%
1.%. Problem sol$ing approa!h &or Sales Support 'roup issues...............................................................(
1.(. BPS Sales leadership rea!tions to proposed solutions.......................................................................(
1.). BPS *ustomers rea!tions to proposed solutions...............................................................................)
2. Systems des!ription e+er!ise................................................................................................................... )
2.1. Produ!tion System employed at M!,onald-s...................................................................................)
2.2. .hat are the important aspe!ts o& the ser$i!e pa!kage/...................................................................0
2.3. .hi!h skills and attitudes are needed by the ser$i!e personnel/......................................................0
2.". o1 !an !ustomer demand be altered/.............................................................................................2
2.%. ,es!ribe the pro!ess &lo1 o& the produ!tion3deli$ery system...........................................................2
2.(. *an the !ustomer3pro$ider inter&a!e be !hanged to in!lude more te!hnology/ More sel&4ser$er/. .15
2.). .hi!h measures are being used to e$aluate the ser$i!e/ .hi!h !ould be used/.............................11
2.0. o1 does it measure up on the se$en !hara!teristi!s o& a 1ell4designed ser$i!e/..........................11
3. Break 6$en 7nalysis.............................................................................................................................. 11
3.1. Problem1......................................................................................................................................... 11
1
1. Baria Planning Solutions
1.1. Organisational and Operational issues
.hat are the organi8ational and operational issues that underlie the problems o& BPS/
a9 Sales organi8ation 1as not a single group4 it 1as split into 3 groups4 Sales: Sales Operations
and Sales Support
b9 Sales group dire!tors !omplain that they don-t get timely support &rom Sales support group
thereby the !ompany has lost se$eral opportunities
!9 Sales support group-s di&&i!ulty 1as a&&e!ting the per&orman!e o& entire !ompany. Sales
support group !ouldn-t gi$e the proposals on time.
d9 Proposals 1ere not rea!hing the !ustomers on time and 1ere delayed signi&i!antly thereby
redu!ing the time to market &or the !ustomers 1hi!h resulted in BPS losing out on pro;e!ts.
e9 .in <ate o& =e1 sale opportunities and e+isting rene1als 1ere lo1 !ompared to pre$ious
years.
&9 3 !ompanies that BPS a!>uired in 255)32550 1ere ha$ing their o1n te!hnology plat&orms:
ser$i!e deli$ery plat&orms: di&&erent &inan!ial years. .hile the pressing integration needs
1ere !ompleted in 2552: some te!hnology migration pro;e!ts are still in progress.
g9 *ost !ontrol need to be done due to a!>uisitions and market do1nturn in 2550
h9 BPS is not in a position to lose any sales momentum and market share due to the highly
!ompetiti$e industry.
i9 Sales support di$ision-s 1ork had peak at times during 1hi!h employees 1ork li&e balan!e
1as a&&e!ted.
1.2. Sales team by Industry
.hat &a!tors !ontributed to the !ompany-s de!ision to organi8e the sales team by industry/
1
a9 Industry alignment o& Sales group 1as a lega!y o& BPS-s a!>uisition strategy ad leadership
belie$ed that it 1as use&ul to maintain the industry orientation.
b9 BPS a!>uired di&&erent &irms in 255) and 2550 in the industry &o!used ni!he areas o&
'o$ernment: Manu&a!turing and <etail # though their solutions addressed !ustomer needs in a
similar &ashion. BPS-s &o!us 1as on the energy se!tor. Sin!e the prede!essor &irms 1ere industry
&o!used: the Sales &or!e and sales support sta&& 1ere also industry &o!used.
!9 *riti!al elements o& sales organi8ation 1as organi8ed by industry so that they 1ould !ontinuously
be immersed by the industry issues
d9 Proposal support &un!tion had to be sta&&ed 1ith e+perts in !ustomers industry as it had to be
industry spe!i&i!.
1.3. Hybrid Sales support group structure
.hat &a!tors !ontributed to the !ompany-s de!ision to organi8e the sales support group in a hybrid
stru!ture/
1
a9 Post a!>uisition o& industry spe!i&i! !ompanies: BPS had to get !osts under !ontrol.
b9 Market do1nturn in 2550 brought in a sense o& urgen!y &or &ast !ost !ontrol measures
!9 Sales support 1as organi8ed into the &ollo1ing di$isions? ,ata 6ngineering: ,ata 7nalysis:
Proposal Support and Pri!ing o& 1hi!h e+!ept Proposal support di$ision: other di$isions need not
be industry spe!i&i! and this helped in streamlining the !ompany-s sales organi8ation 1hile still
keeping the proposal support de!ision industry spe!i&i!.
d9 Sales support 1as organi8ed into the &ollo1ing di$isions? ,ata 6ngineering: ,ata 7nalysis: and
Proposal as per the abo$e diagram des!ribing the pro!ess &lo1 o& the sales support di$ision.
1.4. Solution selling process Most valued by the customer
.hat aspe!ts o& the sales pro!ess are most $alued by !ustomers/
a9 Solution selling pro!ess 1hi!h promised !ost redu!tion and per&orman!e impro$ements 1as the
most $alued aspe!t o& the sales pro!ess.
Solution Selling Pro!ess
1
b9 Solution selling pro!ess as it mo$ed the e&&ort to a pre !ontra!tual stage o&&ered the !lients data
mining and analysis be&ore the a!tual !ontra!t 1as e+e!uted. @he proposal 1as highly detailed
and e+e!ution ready.
!9 @he !ustomers gained by ha$ing !lear understanding o& bene&its o& BPS solution and guaranteed
per&orman!e targets.
d9 I& the !ustomer has agreed to BPS solution: this pro!ess bene&ited both parties and eliminated
&urther !ontra!t negotiations.
e9 Indepth analysis o& the solution selling pro!ess built greater !ustomer !on&iden!e.
1.5. Problem solving approach for Sales Support Group issues
.hat alternati$es are a$ailable &or dealing 1ith the problems in the sales support group/ o1 did you
e$aluate the alternati$es/ .hat a!tions should *hristy *onnor propose to Brandon 7li/
@he alternati$es a$ailable are?
1. iring more resour!es
2. 7bandon industry &o!used sales team stru!ture.
3. <e4organi8e a &ully industry #!entri! organi8ation.
". Streamline solution4selling pro!ess
6+!ept rene1als: sales opportunities arose randomly. Per *onnor analysis that team 1as not understa&&ed
looking at the &re>uen!y and !omposition o& the support re>uests that the team re!ei$ed in 2515.
*ross training 1as not &easible be!ause &our &un!tions re>uired di&&erent skill sets and team members
1ere most e&&e!ti$e 1hen they stayed in ea!h role &or atleast 3 months. @hus shi&ting people &or shorter
time periods leaded to de!reased produ!ti$ity.
7!!ording to us: *onnor should propose to hire resour!es only 1here the !apa!ity is &ully utili8ed: i.e
more than 155A. 7!!ording to the one4on4one dis!ussion she had 1ith the one o& her team member they
are o$erburdened 1ith 1ork o$er 1eek ends.
1.6. BPS Sales leadership reactions to proposed solutions
o1 do you think ea!h o& the ma;or internal !onstituents: spe!ially Brandon 7li: *hu!k ,ee: Bane
7lbright: the sales team: and the sales support group: 1ill rea!t to your proposed solution/
,ee &elt that hybrid stru!ture didn-t go &ar enough and 1as adamant that his team 1as losing
opportunities be!ause the sales support team 1asn-t able to meet its deadlines. e belie$ed that the sales
support group should be aligned 1ith the industry se!tor C6nergy. 'o$t: Manu&a!turing D <etail9: 1hi!h
re>uires more resour!es: hen!e 1e &eel he 1ould a!!ept the &a!t 1ith hiring 1here the sales support team
i& &ully utili8ed so that the team !ould meet the deadlines on time.
7s mentioned in the !ase Bane 7lbright and the sales support groups &ormer dire!tor 1ere the ones 1ho
persuaded &or the !urrent hybrid stru!ture: hen!e 7lbright already kne1 it $ery 1ell that a &ully dedi!ated
1
sales support team 1ould re>uire more sta&&: hen!e she 1ould agree i& a de!ision is made to hire resour!es
to 1here the team 1as used more than 155A.
Brandon 7li is only !on!erned about losing the sales opportunities: and he has mentioned that they 1ere
!omplaints that the sales support group 1as not pro$iding &ull support: hen!e he should ideally a!!ept the
&a!t o& hiring more people 1here re>uired.
1.7. BPS Customers reactions to proposed solutions
o1 do you think ea!h o& the ma;or e+ternal !onstituent groups: spe!i&i!ally !urrent !ustomers and
prospe!ti$e !ustomers: 1ill rea!t to your proposed solution/
@he !omplains that &e1 o& the !ustomers had 1as that BPS didn-t ha$e the pretentions 1ell prepared
and ready be&ore they presented: and ,ee 1hen he had a !all 1ith one o& his salesperson: he e+plained
that they !ould not 1ait &or t1o to three 1eeks to present &or a better proposal. ere 1e !an see the time
take by the sales support group 1as longer than a !ustomer !ould 1ait. en!e this de!ision o& hiring
people to support industry spe!i&i! departments 1ould bring more !on&iden!e in their !urrent !ustomers:
and i& the same is e+plained to prospe!ti$e !ustomer: they should ideally be !on$in!ed 1ith the plan.
2. Systems description eercise
!SC"I#PIO$ !%!"CIS!
2.1. Production System employed at Mc&onald's
@he M!,onaldEs *orporation is the 1orldEs largest !hain o& hamburger &ast &ood restaurants: ser$ing
around (0 million !ustomers daily in 112 !ountries.
Produ!t Planning?
=e1 produ!ts added based on !ustomer needs and pre&eren!es and seasonal menus are added.
*apa!ity Planning?
Planning is done to ensure that there are enough sto!ks o& all ingredients.
Lo!ation Planning?
Follo1ing &a!tors are !onsidered in sele!ting lo!ation? Large *ustomer Base: @ransport a!!ess:
7$ailability o& parking spa!e: Spa!e &or ra1 material deli$ery and storage
Pro!ess planning?
Preparation o& &ood uses latest te!hnology ad e>uipments in order to meet the speed and uni&orm
>uality.
L7GOU@ design?
1
Layout is designed !onsidering health and sa&ety issues: minimised super$ision and !ost o&
produ!tion
BOB ,esign?
@e!hni!al: Beha$ioural and 6!onomi!al &easibility are taken into !onsideration 1hen designing a
;ob &or ea!h employee at M!,onalds and they !arried out spe!i&i! set o& ;obs.
Supply *hain Management
Suppliers o& ra1 materials are managed in su!h a 1ay that they get them at the right time: in
proper >uantity: and at a!!eptable !ost.
In$entory Management?
In$entory is managed on the basis o& First4In4First4Out basis. ,eli$ery o& in$entory happens
thri!e or more times a 1eek depending on the business o& the restaurant. Moreo$er in$entory is
stored in &ree8er 1ith proper pa!kaging so as to ensure &reshness o& the &ood items.
Huality Management?
7udits by the &ood inspe!tor &rom the head o&&i!e: super$isor !he!ks in order to maintain Huality
o& &ood.
Maintenan!e
ygiene: !ost: Huality are maintained along 1ith instruments used.
Huestions
2.2. (hat are the important aspects of the service pac)age*
The key aspects of the service package are:
Less waiting time,
good quality food,
Quick delivery time,
Quick billing time,
courtesy of the service personnel
Good clean youthful environment to eat ( where maority get attracted to!
2.3. (hich s)ills and attitudes are needed by the service personnel*
The "ervice personnel should have the following "kills and #ttitudes
$mpathy with the customers
#bility to understand customer preferences
%roactively greet and approach the customer
&eed to be e'pertise with all the menu items ( and also contents of the item
and availability for the given time!
#bility to strike good relationship with (ustomers
1
#bility to carry him)herself well with the customers along with a good
communication skills
2.4. Ho+ can customer demand be altered*
The customer demand may be altered through use of special pricing and
promotional schemes*
+or e'ample, a new meal comprising offer (burger, +rench fries, cold drinks,
dessert etc! can be offered at a discount during launch phase so that
customers can try it out* #lso, any customers who is ordering items worth
more than -./ at a 0estaurant (or any other amount! might be offered a free
take away burgers worth -1 (take home!*
2n a 0estaurant situated near 3ultiple' movie hall, for someone who orders
food worth -1/ and above a movie voucher worth -4/ may be offered*
+or someone who buys large coke, may be provided with +ree refill of "mall or
3edium* This way customer taste for (oke can create more demand for
(ombo offers

2.5. &escribe the process flo+ of the production,delivery system
There are two options available in some of the outlets, hence describing both
the process flows
%rocess +low54
Customer Acto!s
Line o& Intera!tion
O!st"#e Co!t"ct
6mployee 7!tions
Line o& Iisibility
B"c$st"#e Co!t"ct
6mployee 7!tions
*ustomer Pla!es
Order 1ith Front
sta&&
Pay the Bill
D *olle!t
re!eipt
Front sta&&
Member takes the
Order
,eli$ery o&
the Order
Jit!hen sta&&
C @M9 !he!ks
order
@M !leaning
table et!.
*ustomer
*olle!t the
order
1
Line o& Internal Intera!tions
Support Process
ere instead o& *re1 Member taking the order: Jiosks !an be installed 1here the !ustomers
themsel$es !an pla!e order o& their !hoi!e. @his 1ay it 1ill in!rease the speed o& deli$ery and
!ustomer gets time to sele!t and pla!e the order. 7lso: human errors !an be a$oided.
Re%ere!ce?
http?33en.1ikipedia.org31iki3M!,onaldA2)s
http?33en.1ikipedia.org31iki3Book?M!,onaldA2)s
%rocess +low56
(ustomer enters the 3c7onald 8utlet 59 8ccupies the seat after waiting 59
8rders the items from the menu to the +ront staff 59 +ront "taff passes on the
orders to the kitchen staff 59 8rders is prepared by the kitchen staff 59 +ood
item delivered to the customer 59 (ustomer takes the food 59 (ustomer asks
for check 59 +ront staff gets the check 59 (ustomer makes the payment 59
(ustomer leaves the outlet
2.6. Can the customer,provider interface be changed to include
more technology* More self-server*
:es, the customer)provider interface can be changed to include more
technology* +or e'ample: customer can enter into 3c7onald and order their
food through a kiosk touch screen and pay the amount through a credit card
on the kiosk itself* The ordered items are automatically passed on to the back
staff for delivery within a stipulated time frame* The customer takes the food
and leave the outlet without any interface with the front or back staff*
#lso customers can order thru online or thru 3obile* ;y showing the order
number , the delivery can be taken
Preparation o&
order
*he!king o&
order
*entral ,atabase
1
2.7. (hich measures are being used to evaluate the service* (hich
could be used*
3easures that are being used to evaluate the service are: speed of delivery,
quality of food, efficiency of the back5staff, etc* are used to evaluate and
measure the service*
"ome other measures that could be used are: waiting time (before ordering,
for food and for the check! would be critical for evaluating the service*
2.8. Ho+ does it measure up on the seven characteristics of a +ell-
designed service*
Characteristic Match +ith current evaluation measures for
Mc&onald case
8perating +ocus +ocuses on speed of delivery
<ser friendly +ocuses on courtesy, relationship management of staff
0obust &ot considered as staff is directly interfacing with the customer*
=owever, if we assume kiosk based ordering and payment, then
back up of staff should be there for any unforeseen problem in kiosk
(onsistent
%erformance
#ll the staff are trained on different processes so the services are
replicated
$ffective links between
back office and front
office
Linkage between front staff (taking orders! and back staff (preparing
food! is established
$vidence of service +eedback about the changes in the outlet > any other product
changes need to be highlighted to the customer through %oint of
7isplay
(ost5effective 3ore than being cost effective it should provide value to the
customer* The quality of food (?speed of delivery, ambience etc!
against the amount paid measures the value to the client
3. Brea) !ven .nalysis
3.1. Problem/
7 &irm is selling t1o produ!ts: !hairs and bar stools: ea!h at K%5 per unit. *hairs ha$e a $ariable !ost
o& K2%: and bar stools at K25. Fi+ed !ost &or the &irm is K25555.
a. I& the sales mi+ is 1?1 Cone !hair sold &or e$ery bar stool sold9: .hat is the break4e$en point in
dollars o& sales/ In units o& !hairs and bar stools/
1
I& the sales mi+ !hanges to 1?" Cone !hair sold &or e$ery &our bar stools sold9: 1hat is the break4e$en
point in dollars o& sales/ In units o& !hairs and bar stools/
*hair gross margin ? C%542%93%5 L %5A
Bar Stool gross margin ? C%542593%5 L (5A
a9 1?1 mi+ means Each product accounts for 50 percent of the unit sales of the firm
@here&ore the 1eighted a$erage gross margin is
*hair ? %5A M %5A L 2% A
Stool ? (5A M %5A L 35A
.eighted a$erage gross margin L 2%AN 35A
L %%A
Bre"$E&e! s"'es L Fi+ed *ost 3 1eighted a$erage gross margin
L K25555 3 .%%
L ()6)6)
Bre"$e&e! s"'es ! U!ts L Break e$en sales M produ!t sales mi+ 3 pri!e o& the produ!t
Stoo's to se'' L K3(3(3 M %5A 3 K%5
L )6) stoo's
C*"rs to se'' L K3(3(3 M %5A 3 K%5
L )6) c*"rs
b9 1?" mi+ means !hair a!!ounts &or 25A o& the unit sales and stool a!!ounts 05A o& unit sales
.eighted a$erage gross margin is
*hair ? %5A M 25A L 15A
Stool? (5A M 05A L "0A
.eighted a$erage gross margin L 15AN "0A
L %0A
Bre"$E&e! s"'es L Fi+ed *ost 3 1eighted a$erage gross margin
L K25555 3 .%0
L ()++,-./0
1
Bre"$e&e! s"'es ! U!ts L Break e$en sales M produ!t sales mi+ 3 pri!e o& the produ!t
Stoo's to se'' L K3""02.)% M 05A 3 K%5
L 001 stoo's
C*"rs to se'' L K3""02.)% M 25A 3 K%5
L 1), c*"rs