Operations Management “ Your Garden Gloves ”

Operations Management “Your Garden Gloves”

Team: Papaya Nick

Presented by: Jason, Jimmy, Nick, Rachel, Richard, Sandy

Professor: Ying Jiun Hsieh

Outline

1. Case Introduction2. Question Discussion3. Questions and Answers

1. Case Introduction – “Your Garden Gloves”

Company Background:• Gardening business• Established 5 years ago• Substantially business growth• Each year 10 new clients and a new employee• Currently 8 seasonal employees

1. Case Introduction – “Your Garden Gloves”

Company Background:• Assign crew to do tasks• Crew size range from 2 to 4 workers• Largest job took longer time• Take a investigation

2. Question Discussion

Question 1Which crew size had the highest productivity? Which crew size had the lowest productivity? What are some possible explanations for these results?

Crew Size Average Productivity per Crew

2 4,234 square feet per day

3 5,352 square feet per day

4 7,860 square feet per day

Productivity Ratios

• Productivity ratiosCrew Size Average Productivity per Crew Productivity Ratio

2 4,234 square feet per day 2,117 ↑

3 5,352 square feet per day 1,784 ↓

4 7,860 square feet per day 1,965 →

Explanation Productivity Ratios

Productivity Paradox1. New workers (Grouping of employees with different experience level)2. Quality of tools

2. Question Discussion

Question 2After a recent storm, a customer called in a panic, saying that she had planned a garden party for the upcoming weekend and her garden was shambles. The owner decided to send a crew of four workers, even though a two-worker crew would have a higher productivity. Explain the rationale for this decision.

Prioritization

Critical activity with high importance and urgency

Rational Explanation

• Time pressure

• 4 people have the highest total output per day• 4 workers should complete the work asap

Crew Size Average Productivity per Crew Productivity Ratio

2 4,234 square feet per day ↓ 2,117 ↑

3 5,352 square feet per day → 1,784 ↓

4 7,860 square feet per day ↑ 1,965 →

Illustration

• Assumption: Garden size 20,000 square feet

Case 1Crew size 24,234 ft²/dayDuration: 4.7 days

Case 2Crew size 47,860 ft²/dayDuration: 2.5 days

2. Question Discussion

Question 3What is a possible qualitative issue that may very well influence productivity levels that the productivity ratios fail to take into account?

Qualitative Issues

1. New company: • Founded only 5 years ago• Low employee loyalty

Solutions:• Offer long-term contracts• Provide a career path• Develop relationships

Qualitative Issues

2. Seasonal work: (weather conditions, location)• 6 month operating time• No continuous work flow through the whole year• Employees may look for permanent jobs → drop outs

Qualitative Issues

3. Standardization:• Standardized processes increase the productivity

level of employeesSolution: Introduction of standard operation procedures

• In long term, employees may feel less motivated and reduce productivity level

Solution: Assign different tasks from time to time

Qualitative Issues

4. Incentive plans that reward productivity can increase productivity• Productivity level influenced by structural division

between management and labor• Goal: Willingness that workers give their best

Solution: Performance related wages

Qualitative Issues

5. Experience of workers• Employees with longer experience have usually a

higher productivity level than less experienced workers

6. Quality of tools• Has an impact of the productivity level

3. Questions and Answers

Sources• Operations Management by William J. Stevenson (11th Edition).• http://anywhereworking.org/2013/productivity-hack-friday-actions-

urgent-important-matrix/• http://upload.wikimedia.org/wikipedia/commons/thumb/5/50/

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• http://de.climate-data.org/location/17804/