Servis Operations Management

3264 Words14 Pages
Service and Operations Management | Medic- Call Personal Alarm System: Capacity Planning and Resource Management | Magdalena Kulikowska |

International Tourism Management


Words count: 2020

Contents Executive Summary 3 1. Introduction 3 2. The role and importance of capacity management to the success of an organisation. 3 2.1 Level strategy 4 2.2 Chase strategy 4 2.3 Demand strategy 5 3. Queue strategy 5 4. Evaluation of capacity planning and resource management in Medi-Call Company. 5 Chart 1. 6 4.1 The implications of coping zone on both staff and customers. 7 5. Recommendations and Conclusions 8 References 9 Appendix.1 11 Appendix . 2 – Plagiarism
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However, providing insufficient capacity may led to deteriorating delivery performance, unnecessarily increase work in process, forming queues and frustrate service-providing staff. Inability to provide good quality of service when consumers want it, can result in reduced profit due to the loss of current and future customers interest (Heineke 2003) (Eggins 2013). On the other hand, exceeded capacity leads to under utilisation of resources, unnecessarily increasing costs and reducing profits (Johnston et al., 2012).
It is difficult to achieve the balance between capacity and demand in always changing service environment. As every system has, at least one capacity limited resource: labour or equipment available, there are three main strategies used to manage the demand.

2.1 Level strategy
This approach requires companies to set up their capacity at constant level while any fluctuations in demand are ignored (Olhager & Johansson 2012). It seeks to get the best return from expensive and limited resources through developing off peak demand, use of reservation system, price changes and queue management techniques. It is mainly relevant when the demand for particular service is more noticeable before time of usage. Moreover, the service provider can tell the customer to wait when the demand cannot be satisfied. When the service is highly valued by the
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