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KULLIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES
OPERATION MANAGEMENT
(MGT 4010)
GROUP PROJECT:
OPERATION STRATEGY FOR MANISHENNA
PREPARED BY:
AFIFAH NABILAH BINTI MOHAMAD SAFEI 1321976
LAILA SYAHIRAH BINTI GHANI 1321148
NUR FARAH SHAMIMI BINTI MOHD SUKRI 1327814
SHARIFAH SHAHIRAH BINTI SAYED HASSAN 1221572
SECTION: 2
SESSION:
SEMESTER 1, 2016/2017
LECTURER:
MADAM WAN ROHAIDA WAN HUSAIN
SUBMISSION DATE:
14TH
DECEMBER 2016
2
CONTENTS
EXECUTIVE SUMMARY .................................................................................................................... 3
GENERAL INTRODUCTION ............................................................................................................... 4
OPERATIONS ....................................................................................................................................... 5
1) QUALITY MANAGEMENT ................................................................................................... 5
Quality Management Approach .................................................................................................... 6
Islamic Perspective on Quality Management ............................................................................... 6
2) LOCATION .............................................................................................................................. 7
Factors to consider ........................................................................................................................ 7
Service location strategy ............................................................................................................... 7
Islamic Perspective on Location Management ............................................................................. 8
3) SUPPLY CHAIN MANAGEMENT ........................................................................................ 8
Supply chain for ManisHenna ...................................................................................................... 9
Sourcing Strategy: Make and Buy ................................................................................................ 9
Islamic Perspective on Location Management ........................................................................... 10
CONCLUSION ..................................................................................................................................... 11
REFERENCES ..................................................................................................................................... 12
3
EXECUTIVE SUMMARY
Manishenna is a business that provide a products and services to customer which is make a
henna (dip henna and cone henna) and designing it to the customer’s hands. Customers can
choose any design they want through any google images or booklets and show it to the
owner so that they can have their own design henna in their own hands. The owner of this
business, supplies the henna from the suppliers and she also added her own secret recipe in
the henna so that it may last longer and the colour of henna is bright red. Besides, she works
alone as a worker and the owner of the business. The owner cannot make mistake and mess
up the drawing since the main attraction of the Henna drawing service is the quality of the
drawing itself and it can make the customers not trusting her works because once she design
a henna for the customers’ hands, they cannot do anything to erase it and it may take a
longer time to disappear. Thus, quality and performance is very important in this business in
order to attract more customers and increase the profit of the business. In addition, a
strategic location also one of the way the way to attract customers. If the location is
strategic, there will be a lot of customers who are willing to use this services especially
during public holiday season where there are many wedding and engagement day.
4
GENERAL INTRODUCTION
Manishenna is a service business which make a service henna to the customers. The
owner of the business is Shimanisham binti Ruhaini, IIUM students and currently 3rd
year
student who is taking Bachelor in Economics. She started the business in year 2014 with
RM200 as a capital. This service is for customers who want to do henna and she does the
business for event wedding (bridal), engagement and so on. Besides, she also make a
product which is ‘Inai Celup’ in a cup using her own secret recipe and sell henna in cone for
those who want to buy the henna. The location of the business is at Kuala Lumpur and
Melaka. She always join any event in the IIUM festival to sell her business such as during
convocation day, she does henna service at Stanex. For promoting, she does it in the
Facebook, Instagram and also through Whatsapp. The price is different depending on the
design customers’ wants. Henna design for a hand only, IIUM students, and the price given
is RM 5 to RM 8 and for non-IIUM students, the price is RM 10 to RM 15. For bridal, she
set a based price at RM 110 excluding transportation. The adding price is depends on the
place the customers who want to use Manishenna services.
5
OPERATIONS
1) QUALITY MANAGEMENT
“An operation manager’s objective is to build a total quality management system that
identifies and satisfies customer needs.” (Heizer & Render, 2014; p. 245). Quality can be
identified as “the ability of a product or service to meet customer needs” (Heizer & Render,
2014; p. 245). According to Investopedia (2016), quality management is an action of
monitoring and executing all activities and tasks which are needed in order to preserve a
certain level of excellence which includes the determination of a quality policy, creating and
implementing quality planning and assurance, and quality control and quality improvement.1
Having said that, it is important for Manishenna to ensure their product and service
qualities are fulfilling the customer needs and preferences in order to retain its reputation
and to improve their products’ reliability among the customers. There are three dimensions
of product quality which Manishenna should take note which are as follow:
1. Performance: Since Manishenna also provides the Henna drawing service along
with the Henna products, Shima should ensure that she performs well when
delivering the Henna drawing service. She cannot afford to make mistake and
mess up the drawing since the main attraction of the Henna drawing service is
the quality of the drawing itself; whether it is beautiful and neatly drawn or not.
If the Henna is drawn beautifully, the customers may come again and will
recommend the service to their friends and acquaintances and vice versa.
2. Features: Manishenna provides various types of Henna products which follow
the latest trend. The Henna drawing service is also delivered a specific features
where the customer can choose the unique pre-made design or request for a
custom made design.
3. Reliabilities: Regardless of the current issue where most of the Henna sellers
sell fake Henna products which are harmful to the skin, Manishenna continues
providing the genuine Henna products which are retrieved from trusted and
reliable suppliers. Besides, the Henna drawings are durable and will not vanish
easily while it is not waterproof and can also be used by the Muslims.
1 http://www.investopedia.com/terms/q/quality-management.asp#ixzz4SeavgzFA
6
Since Manishenna provides both service and products, the quality management of the
business is taken seriously. The owener, Shima, which is also the service provider involves
directly with the quality management of the business where she manages the business well
according to the above three dimensions and gives priority to the customer satisfaction. The
quality of the Henna products and Henna drawing service provided by Manishenna are
different from the other industry players in term of the colour and reliability of the Henna
products and the details, unique and custom made design respectively.
Quality Management Approach
On the other hand, Manishenna implements the quality management approach of
Just-In-Time (JIT) for the dip henna product. According to Heizer and Render (2014), just-
in-time (JIT) is a system where the products are produced and delivered as they are needed.
It is related to the quality in three ways where it cuts the cost of quality, it improves quality
and reduces the inventory costs. Since Manishenna brew the dip henna product by mixing
various type of henna at one time, just-in-time system is suitable in order to maintain the
high quality of the dip henna when served to the customers.
Islamic Perspective on Quality Management
Ahmed (1996) as cited by Ogunbado (2013) stated that “quality management is a
wholistic approach where qualities of human resources precede, intermingling with quality
input and quality process to achieve quality output.” (p.7). Firdaus, Hussain, Asaad and
Yusoff (2015) highlighted that Islam teaches its followers on the importance of the quality
and perfection in doing job. It is supported by the Quranic verse (27: 88),
“Thou seest the mountains and thinkest them firmly fixed: but they shall
pass away as the clouds pass away: (such is) the artistry of Allah, Who
disposes of all things in perfect order: for He is well-acquainted with all
that ye do.”
The above verse highlighted how Allah created this world perfectly and beautifully.
It shows the importance of the quality in work. Allah notices everything we do; including
the way we manage our resources or services. Therefore, Manishenna must maintain good
raw materials quality and not discriminate their customers by providing bad services.
7
2) LOCATION
Factors to consider
In running a business, particularly in the form of service business, the location plays
a very important role by considering several factors. Currently, Manishenna shop located at
the Student Mall in International Islamic University Malaysia, Gombak campus. Student
Mall area is actually a business space area provided by the university for students who want
to run a business. The university provided there several vacant stalls with a minimum rental
fees as low as only RM 10 per month. The owner of Manishenna who also a student, take
nthis opportunity by opening a shop there. Furthermore, that place proximate to their main
target market which is students because the place itself is the student attractions as its
located nearby café.
The service provided by Manishenna is custom-made henna drawing. Thus, in order
to deliver the service effectively, Manishenna need to a have direct contact with the students
there so that the service can be deliver in no time. In addition, the chosen location is also
proximate to supplier. Manishenna got supplier from Selangor and Kuala Lumpur area
which is within the current shop location. It will ease both parties in term of delivery
because by postage, the supply of raw material will reach within one day only. The time
taken will be reduced and Manishenna will not have shortage in term of their product. The
owner of Manishenna live-in campus which she stay in the hostel. The inventory of raw
material will be kept in hostel. The distance between hostel and her shop in Student Mall
quite close which give her an advantages as she can only walk-in to the shop hence save
transportation cost. Manishenna is sensitive to location as mention earlier, because they
provide custome-made henna drawing which need direct interaction with the customer; they
must make the service approachable to the potential customers.
Service location strategy
One of the service location strategies is to offer service and image compatibility with
demographics of the customers. Demographics is the study of a population based on factors
such as age, race and sex, among others. Manishenna smart in doing business as they
always follow the latest trend of the demographics whether in terms of their product offering
or henna drawing. Besides drawing henna, they also sell a ready-made henna that come in
8
the form of cone and dip henna for customer who choose to make henna by their own. The
cone henna comes with several colours for the customer to choose like black and red. Other
product which is dip henna which they reproduce it by themselves with some additional
ingredients will be pack in a small bottle for handy-user. It is crucial for Manishenna to
continue observing the behaviour aspect in their customer so that it will not be outdated.
Manishenna has uniqueness in their service. Some competitors may use ready-made
henna sticker in the drawing process. But, Manishenna provide free hand henna drawing to
their customers which require creativity in the making process as not many henna drawer
can do that. In addition, the pattern is finely drawn with small details. Customers can
choose the pattern directly from the photo book provided or bring their own pattern.
Islamic Perspective on Location Management
“But seek, through that which Allah has given you, the home of the Hereafter;
and [yet], do not forget your share of the world. And do good as Allah has done
good to you. And desire not corruption in the land. Indeed, Allah does not like
corrupters.” (Quran, 28:77)
In the above verse, Allah commanded the man to find its way to the Hereafter
and find their world fulfilment by utilizing the sources that Allah provided in this
world. This verse is also highlighted that we must take a very good care of this world
and must not corrupt and do corruption on the land of this world.
In this context, Manishenna should utilize all the resources which are
available in order to make the location decision while considering both benefits on
this world and in the Hereafter. And when the location is chosen, Manishenna should
not misuse the resource and the availability of the location by doing something
illegal and bring mischief to the land.
3) SUPPLY CHAIN MANAGEMENT
Supply chain management can be defined as “the coordination of all supply chain
activities, starting with raw materials and ending with a satisfied customer.” (Heizer &
Render, 2014; p.468). Heizer and Render (2014) explained that a series of supply chain
9
consists of suppliers (manufacturer) and/or service providers, distributors, wholesalers,
and/or retailers who will deliver the products or services to the end user (customer). “The
objective of supply chain management is to coordinate activities within the supply chain to
maximize the supply chain’s competitive advantage and benefits to the ultimate consumer.”
(Heizer & Render, 2014; p.468).
Supply chain for ManisHenna
The suppliers for Manishenna are for the cone henna, dip henna raw materials and dip
henna container. After retrieving the finished goods (cone henna) and work-in-process
goods (dip henna), the finished goods will be stored in inventor which is the owner’s hostel
room in IIUM. While, the work-in-process goods are brewed and mixed together until the
finished goods (dip henna) are produced and stored in the same inventory as the other one.
The finished goods then will be delivered to Manishenna stall at the Student Mall, IIUM to
be sold to the customers. In addition, the henna drawing service will also be provided for
walk-in customer at the Manishenna stall and for home visit request for special occasions
such as wedding and dinner.
Sourcing Strategy: Make and Buy
Manishenna use both make and buy sourcing strategy where they buy and outsource
the raw materials directly from suppliers for the cone henna and brew the dip henna by
themselves.
10
Islamic Perspective on Location Management
“He has only forbidden to you dead animals, blood, the flesh of swine, and that
which has been dedicated to other than Allah. But whoever is forced [by
necessity], neither desiring [it] nor transgressing [its limit], there is no sin upon
him. Indeed, Allah is Forgiving and Merciful.” (Quran, 2:173)
In this verse, ALLAH has stated four things, which are prohibited for human
beings which are dead meat, blood ingestion, flesh of swine and those animal over
which any other name than that of Allah has been invoked. In other words, any raw
materials which consist of these prohibited things are haram and should not be used
in the production of the products.
Therefore, Manishenna must make sure that the products and raw materials
are coming from a halal supply chain management which are free from the prohibited
ingredients as mentioned in the above verse.
11
CONCLUSION
The location flexibility is good to compete in the market place because the business can
get as many new customers as possible. The customers also don’t have to go all the way to a
fixed shop location if the business happens to operates near their home. However, it is
harder for the business to gain regular customers as the business don’t always stays in one
location. Their quality control is also their competitive advantage because the customers
would return to them if they are satisfied with the services offered. The weather could affect
business operation especially while they operate in tents during IIUM festivals. During rain,
not many customers will go the festivals. Therefore, the business are advised to add one
fixed location and apply extensive marketing is to reach more regular customers. The
business should also create a systematic procedure for stock order with suppliers to avoid
stock deficiency while serving the customers.
12
REFERENCES
Heizer, J., & Render, B. (2014). Operations Management: Sustainability and Supply Chain
Management (11th ed.). Pearson.
Firdaus, F. S., Hussain, M. N., Asaad, M. N., & Yusoff, R. Z. (2015). Quality Management
Concept Based On Islamic Worldview. International Academic Research Journal of
Business and Technology, 1(2), 208-213.
Quality Management. (2016). Retrieved December 12, 2016, from
http://www.investopedia.com/terms/q/quality-management.asp
An-Naml (The Ant). Retrieved December 12, 2016, from https://quran.com/27/88-98
Al-Baqarah (The Cow). Retrieved December 12, 2016, from https://quran.com/2/173-183
Al-Qasas (The Stories). Retrieved December 12, 2016, from https://quran.com/28/77-87