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OPERATIONS-MANAGEMENT-CASE-STUDY

Hazel, after being laid off from a Fortune 500 company, started her own lawn care business and found success despite initial challenges. She took on responsibilities such as forecasting, inventory management, scheduling, and quality assurance as the operations manager of her new venture. As her business grew, she faced decisions regarding expansion, customer quality assessment, and potential changes in local ordinances affecting her operations.

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15 views2 pages

OPERATIONS-MANAGEMENT-CASE-STUDY

Hazel, after being laid off from a Fortune 500 company, started her own lawn care business and found success despite initial challenges. She took on responsibilities such as forecasting, inventory management, scheduling, and quality assurance as the operations manager of her new venture. As her business grew, she faced decisions regarding expansion, customer quality assessment, and potential changes in local ordinances affecting her operations.

Uploaded by

abanadorjames8
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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OPERATIONS MANAGEMENT
CASE STUDY NO. 1

Hazel had worked for the same Fortune 500 company for almost 15
years. Although the company had gone through some tough times, things
were starting to turn around. Customer orders were up, and quality and
productivity had improved dramatically from what they had been only a few
years earlier due to a company- wide quality improvement program. So it
came as a real shock to Hazel and about 400 of her coworkers when they
were suddenly terminated following the new CEO’s decision to downsize the
company. After recovering from the initial shock, Hazel tried to find
employment elsewhere. Despite her efforts, after eight months of searching
she was no closer to finding a job than the day she started. Her funds were
being depleted and she was getting more discouraged. There was one bright
spot, though: She was able to bring in a little money by mowing lawns for her
neighbors. She got involved quite by chance when she heard one neighbor
remark that now that his children were on their own, nobody was around to
cut the grass. Almost jokingly, Hazel asked him how much he’d be willing to
pay. Soon Hazel was mowing the lawns of five neighbors. Other neighbors
wanted her to work on their lawns, but she didn’t feel that she could spare
any more time from her job search.
However, as the rejection letters began to pile up, Hazel knew she had
to make a decision. On a sunny Tuesday morning, she decided, like many
others in a similar situation, to go into business for herself—taking care of
neighborhood lawns. She was relieved to give up the stress of job hunting,
and she was excited about the prospect of being her own boss. But she was
also fearful of being completely on her own. Nevertheless, Hazel was
determined to make a go of it. At first, business was a little slow, but once
people realized
Hazel was available, many asked her to take care of their lawns. Some
people were simply glad to turn the work over to her; others switched from
professional lawn care services. By the end of her first year in business,
Hazel knew she could earn a living this way. She also performed other
services such as fertilizing lawns, weeding gardens, and trimming shrubbery.
Business became so good That Hazel hired two part-time workers to assist
her and, even then, she believed she could expand further if she wanted to.

QUESTIONS

1. Hazel is the operations manager of her business. Among her


responsibilities are forecasting, inventory management, scheduling, quality
assurance, and maintenance.
a. What kinds of things would likely require forecasts?
b. What inventory items does Hazel probably have? Name one inventory
decision she has to make periodically.
c. What scheduling must she do? What things might occur to disrupt
schedules and cause Hazel to reschedule?
d. How important is quality assurance to Hazel’s business? Explain.
e. What kinds of maintenance must be performed?

2. In what ways are Hazel’s customers most likely to judge the quality of her
lawn care services?

3. What are some of the trade-offs that Hazel probably considered relative
to:
a. Working for a company instead of for herself?
b. Expanding the business?
c. Launching a website?

4. The town is considering an ordinance that would prohibit putting grass


clippings at the curb for pickup because local landfills cannot handle the
volume.
a. What options might Hazel consider if the ordinance is passed? Name two
advantages
and two drawbacks of each option.

5. Hazel decided to offer the students who worked for her a bonus of $25 for
ideas on how to improve the business, and they provided several good ideas.
One idea that she initially
rejected now appears to hold great promise. The student who proposed the
idea has left, and is currently working for a competitor. Should Hazel send
that student a check for the idea? What are the possible trade-offs?

6. All managers have to cope with variation.


a. What are the major sources of variation that Hazel has to contend with?
b. How might these sources of variation impact Hazel’s ability to match
supply and demand?
c. What are some ways she can cope with variation?

7. Hazel is thinking of making some of her operations sustainable. What are


some ideas she might consider?

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