Operations management Essay

OPER1160 Team AssignmentPage 1Kiwal W2019Introduction to Supply Chain and Operations Management OPER1160 Group Assignment W2019Marked out of 63worth 15% of course markMain Learning Objectives Being Utilized In This Assignment:1.Work effectively in groups to accomplish objectives in a timely fashion.2.Communicate information accurately and credibly in oral, written and graphic formats.3.Describe the advantages and disadvantages of in-sourcing (make) and outsourcing (buy).4.Prepare a recommendation on supplier selection using the weighted-point evaluation system.5.Describe some of the concepts of an effective Total Quality Management (TQM) program including: Continuous Improvement, Employee Empowerment, and Benchmarking.6.Apply time management and organizational skills to facilitate the completion of tasks and to meet deadlines.7.Discuss the determinants of service quality and how it can be measured.Students will be organized into groups of 3-4. Each student in that group is to sign a team contract, create a group list in their Conestoga e-mail account, exchange schedules and contact information and set up a common file area. IntroductionKiwalCustomer Services (KCS) is an Internet Service Provider (ISP) that caters to individual consumers and small businesses who require a high level of service and are willing to pay a premium for it. Specifically, KCSoffers state-of-the-art office applications and web-building software and design, as well as plenty of secure storage space and fast access via its high-speed servers. The territory it serves is Ontario and east. It offers its service in English and French. Meaghan Lafolte, Vice President-Marketing, puts it this way:“There are a lot of companies out there promising the cheapest Internet access. But what do you get for your money? Limited service, slow or no-access, a mailbox full of spam, and an endless stream of system crashes. And I won’t even mention the lack of support if you have a technical question! Our support desk quickly determines where the customers’ problem lies and gets it fixed fast! For a few dollars more a month, we give our customers the environment they need to be productive--without having to think about whether or not they can retrieve their documents, or whether their Web site has crashed. Our focus is on providing an “exceptional” customer experience with each interaction. It’s no surprise that we have the highest customer satisfaction and retention rates in Canada.”The Online Support DeskOne of KCS’s services is its support desk. The online support works as follows: Customers who are experiencing technical problems, or who simply have questions enter a one-on-one online “chat room”, where they can interact directly with an expert. Problems are usually resolved within 6minutes and customers have listed it as one of the top three reasons why they stick with KCS. Presently, KCShas enough

OPER1160 Team AssignmentPage 2Kiwal W2019capacity to handle up to 700",000 requests per year, although management doesn’t expect the number of requests to change much from the current level of 600",000 per year.A firm located in Mumbai, India, has approached KCSabout outsourcing the online support desk. The offer is attractive. The Mumbaifirm’s own personnel would handle the support desk functions. These personnel are fluent in English, some have limited French and have college degrees or appropriate technical backgrounds. Since they are located in India, labour costs would be a fraction of what they are in Canada. (Ontario), a saving that would be passed on, in part, to KCS. And, because the “chat room” exists on the Internet, KCScustomers should be unaware of the switch. KCSmanagement has put together Figure 1, outlining the yearly costs associated with the current system and the Indian proposal. As a team, you have been given the job of preparing answers to a set of questions. They are to be preparedas a written report for your manager (instructor). Figure 1: Yearly Costs of the Present and Proposed Contact (Call) Centre AlternativesCurrent Online Support CentreMumbaiProposalPersonnel Costs50 full-time equivalent (FTE) technical experts @ $50",000 per year (salary and benefits)2 supervisors @ $ 70",000 per year (salary & benefits)Fixed Cost$2",500",000 per contract year (covers all administrative and IT costs)Equipment Costs3 servers @ $6",000 each per year27 PCs @ $900 each per yearVariable Cost$1.15 per contactUse 600",000 contacts per year.Variable Costs$1.35per contact (office supplies, fax paper, etc.). Use 600",000 contacts per year.Source: internal records and written proposal from the Mumbaicompany Questions to Answer:Analysis for the Case Process: Based on your total cost analysis of Figure 1 and the findings from your research on the industry, list and explain your choices for the five performance dimensions or criteria, then utilize a weighted-point evaluation matrix to evaluate the two options.You are to select 4 additional criteria in addition to cost based on yourindustry research

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