Case Assay 1: Hightone Electronics, Inc. Identification Information: This case assay is from affiliate 1 of our argument book, Operations Management. It is begin on folio 25 and titled, "Hightone Electronics, Inc. " Summary of the Facts of the Case: Hightone Electronics, Inc. (HEI) is an cyberbanking apparatus accumulation aggregation founded over 50 years ago. The aggregation has a acceptability for aerial affection and service. HEI's simple business of bartering radio adjustment shops with genitalia has developed to accommodate home delivery, and beyond barter such as abstruse schools, universities, and acclaimed corporations.
The aggregation stocks and sells over 22,000 altered items and best barter accept their adjustment aural 48 hours. George Gonzales is the operations administrator for HEI. He has been tasked with authoritative operations administration decisions all-important to accomplish HEI a acknowledged Internet-based business. Mr. Gonzales agrees that this is an important footfall for the approaching success of the aggregation but believes there is added to analytic the problems of the alteration to web-based than the lath thinks. Case Questions: 1.
Explain why operations administration is analytical to the success of a business. Operations administration (OM) is analytical to the success of a business for several reasons. OM is amenable for the controlling and administration action that creates the artefact or account the business provides. The role of OM is to booty inputs such as, labor, raw materials, and technology, and about-face them into accomplished appurtenances or services. Alternative functions of the business, such as marketing, are additionally important. But, after OM, there would not be a product/service to bazaar to consumers. Reid, 2-23) Why would developing an Internet-based business crave altered operations application for HEI? A acceptable catalog-order business and an Internet-based catalog-order business would be absolute agnate in accepted appearance. A alteration to web-based acclimation though, would crave changes. First, the aggregation would charge to advancement its technology. Either through outsourcing or centralized servers, the aggregation would charge to actualize a website. The website would charge to be able to handle the chump cartage after crashing.
Also, the website would charge to be convenient so as not to annul and about-face abroad abeyant customer. Chump abutment cadre would charge to be accomplished to adviser barter with questions about the website. Second, and added important than the absolute website, is analogous orders so that requested appurtenances are alien to the able customer. Each adjustment transaction will not be entered by a person. Therefore, all of the advice aggregate by the website will charge to be adapted to orders calmly accepted by barn personnel.
Is George Gonzales actual in his appraisal that this would not be "business as usual"? Yes. The amount functions of the concrete locations of the catalog-order business will abide mostly the aforementioned as before. They will accept orders, and address out goods. However, the methods of accepting orders, chump feedback, acknowledgment orders, appropriate orders, and abounding alternative beneath notable but still all-important functions will change drastically. If done properly, it will best acceptable accumulate the business, but the antecedent alteration will be difficult. . Recall that HEI wishes to abide its acceptability of aerial affection and service. Identify key operations administration decisions that charge to be considered. * Will we accept more/less orders? * If appeal increases, can HEI accumulation the demand? * If appeal decreases, can HEI "weather the storm" until appeal rebounds? * What new cadre will be required? * Can accepted advisers be trained? * Do new, added technically-advanced advisers charge to be hired? * Can banal be bargain and operations fabricated added lean? * Should banal be increased?
How altered will these decisions be for the Internet business? The above aberration will be that with a lot of the web-based breadth of the business, assignment will be handled electronically and not in a concrete location. This will annihilate the charge for ample alarm centers and axial annal befitting locations. A few servers could authority all the advice already captivated by an absolute administration such as sales, accounting, chump service, etc. This additionally changes the focus from managing abounding low-skilled advisers to beneath moderate-to-high-skilled employees.
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