The purpose of this essay is to compare and contrast the two operations between the Bank(LloydsTSB) and the coffee shop(Caffè Nero) in Exeter by observing
performances of each operation to analyse the way to improve operational efficiency of both organisation.
The activities of operation management start from the suppliers and their inputs, through the process, resulting in outputs to the customers (Slack et al., 2010), as shown in Table1.
Table 1: Transformation processes of LloydsTSB and Caffè Nero(SIPOC) Supplier
Bank transaction Analyze client
Statement review Statement
Client application Apply and sign
New bank client
Coffee customer Coffee
Order and pay
A cup of coffee
A cup of coffee
A cup of coffee
Figure 1: Four Dimensions of Operations of LloydsTSB and Caffè Nero(4v’s) Low
The operations processes have different characteristics in four dimensions (Slack et al., 2010), as presented in figure1, LloydsTSB and Caffè Nero serve their products and services in the high volume to customer. Their processes are repetition and systemization, each staff has their own place and perform accordingly. Moreover, LloydsTSB provides a high variety service, each one is made to serve with different type of customers. Whereas Caffè Nero, its products is limited, although customers can adapt the taste of coffee by their preference, the company have to standardize the taste of its product for all branches. The variation in demand of both companies is medium to high, customers demand for coffee as their primarily morning and lunchtime beverage. Similarly, most of the demand for bank transactions is monthly basis(payday), or during a long holiday. Lastly, the level of visibility at Caffè Nero is relatively high when compared with LloydsTSB since customers have
to interact with the staff to order their desirable products. In contrast, customers have an alternative to operate their money transaction by themselves through automated machine or internet banking.
Figure 2: Polar DiagramRelative Performance of LloydsTSB and Caffè Nero Operations
According to figure2, LloydsTSB’s cost performance is higher than Caffè Nero since they have to spend more money in recruiting high qualified employees,
advance technologies and high security systems. Furthermore, LloydsTSB has a high quality and dependability in term of reliable and secure operation process, they cannot make mistakes because every financial transactions can affect the credibility of their clients. For Caffè Nero, it is referred to the conformance of their products and services that fit with customer expectations which is medium to high level. The flexibility (related to the variety dimension in 4V’s), LloydsTSB is more flexible than Caffè Nero, they offers various services to suit each customer and provide them an individual treatment. For the speed, LloydsTSB customers have to wait for a long time in queuing and transaction processes whereas Caffè Nero, the time between waiting in the line to order and receiving order kept to minimum.
Regarding the above frameworks, there are some suggestions for both companies to improve their operational efficiency. For LloydsTSB, the speed level inside the operations is low, they should adopt a multitasking strategy to shorten a customer’s waiting time or encourage customers...
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