THE PRIMER INC. Primer Inc. offers plumbing and air conditioning services to customers in Kumasi, Ghana. The company’s product strategy is to solve the customer’s problem irrespective of what it takes, at the time the customer needs it solved. The company provides same day service for customers, and the aim is to make the customer happy before leaving. The services of the company are available 24 hours a day, 7 days a week for customers. There is no extra charge for requests made on holidays, odd hours of the day, or in festive seasons. The company aims to be available at the call of customers without charging a pesewa extra, even at times when rival firms won’t get out of bed. The company fixes the price of the service before it begins, and customers can be assured of no extra charges. Irrespective of the customer’s location in the city, Primer Inc. does not charge additional fees for transportation. For all services, the company provides a one year guarantee on all parts and labour used, whiles rival firms provide only a 30-day guarantee. Management of the company believes that it is better to focus on customer satisfaction as the main goal since the reputation of firms in the industry is not good. For Primer Inc, making profits is only a by-product of the quality of service they provide to customers. The company uses a rigorous hiring process, continuous training, a customer satisfaction themed compensation scheme, worker empowerment, and teamwork to implement this strategy. Employees are aware and motivated that this is not a regular 8 hours’/day job, and each is prepared for working at odd times. Due to the nature of the service, the company charges a premium price that is well above the industry average. However, customers are willing to pay because the Strategic OM – Prof. J Annan company provides good value for the price. Over 10 years, Primer Inc. has seen an increase in sales of about 1300%. Source: Adapted from Slack et al, (2013) From the case, please answer the following questions. 1. Describe the product Package of Primer Inc. by Identifying the tangible and non-tangible (service) components. 2. From an operations management position, why is the company able to charge premium prices? Why are customers willing to pay the premium price? 3. Describe the operations of Primer Inc. in terms of the four Vs (Volume, Variety, Variability, and visibility), indicating whether each variable is high or low, and its implication for strategy. 4. Explain the role of the following functional areas in supporting the organization’s current operations strategy a. Procurement b. Finance c. Marketing d. Human Resource Management 5. How should each of the following Strategic Operations Management decisions be managed to ensure the success of the company. a. Product and service design b. Managing Quality c. Process strategy d. Location strategy e. Layout Strategy f. Human resources g. Supply chain management h. Inventory Management i. Scheduling j. Maintenance
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
THE PRIMER INC.
Primer Inc. offers plumbing and air conditioning services to customers in Kumasi, Ghana. The
company’s product strategy is to solve the customer’s problem irrespective of what it takes, at the
time the customer needs it solved. The company provides same day service for customers, and the
aim is to make the customer happy before leaving.
The services of the company are available 24 hours a day, 7 days a week for customers. There is
no extra charge for requests made on holidays, odd hours of the day, or in festive seasons. The
company aims to be available at the call of customers without charging a pesewa extra, even at
times when rival firms won’t get out of bed.
The company fixes the price of the service before it begins, and customers can be assured of no
extra charges. Irrespective of the customer’s location in the city, Primer Inc. does not charge
additional fees for transportation. For all services, the company provides a one year guarantee on
all parts and labour used, whiles rival firms provide only a 30-day guarantee.
Management of the company believes that it is better to focus on customer satisfaction as the main
goal since the reputation of firms in the industry is not good. For Primer Inc, making profits is only
a by-product of the quality of service they provide to customers.
The company uses a rigorous hiring process, continuous training, a customer satisfaction themed
compensation scheme, worker empowerment, and teamwork to implement this strategy.
Employees are aware and motivated that this is not a regular 8 hours’/day job, and each is prepared
for working at odd times. Due to the nature of the service, the company charges a premium price
that is well above the industry average. However, customers are willing to pay because the
Strategic OM – Prof. J Annan
company provides good value for the price. Over 10 years, Primer Inc. has seen an increase in
sales of about 1300%.
Source: Adapted from Slack et al, (2013)
From the case, please answer the following questions.
1. Describe the product Package of Primer Inc. by Identifying the tangible and non-tangible
(service) components.
2. From an operations management position, why is the company able to charge premium prices?
Why are customers willing to pay the premium price?
3. Describe the operations of Primer Inc. in terms of the four Vs (Volume, Variety, Variability,
and visibility), indicating whether each variable is high or low, and its implication for strategy.
4. Explain the role of the following functional areas in supporting the organization’s current
operations strategy
a. Procurement
b. Finance
c. Marketing
d. Human Resource Management
5. How should each of the following Strategic Operations Management decisions be managed to
ensure the success of the company.
a. Product and service design
b. Managing Quality
c. Process strategy
d. Location strategy
e. Layout Strategy
f. Human resources
g.
h. Inventory Management
i.
j. Maintenance
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