OBSM Coursework Assessment – Element One
Powell’s Garage Report
The following report will be researching into a small garage named Powell’s, located in Illogan, Cornwall. Powell’s garage is a family business that was established in 1953. This organisation offers a range of services and products, including MOT’s, tyre replacement and full car servicing. Primary research will be used in order to gain data in order to examine specific factors in Powell’s garage. Slack et al.’s five performance objectives will display which ways the organisation is thriving and in which ways they are failing. Looking at the design capacity, effective capacity and actual outputs will give an overview of how well they are using their resources within the organisation. Finally, by calculating the organisation’s capability index, a specific operation can be explored in order to highlight the reliability of the service and whether there is any potential room for improvement. Five Performance Objectives
Slack et al (2004) states that there are five performance objectives that can evaluate performance of an operation. The first of these being cost, this is the ability to produce at a low cost. By pricing goods and services appropriately to the market, customers will always be attracted and it will allow for a good return to the company. Powell’s have a few competitor garages surrounding them, therefore pricing is a very important aspect of the organisation as they must keep it low enough to rival other garages, but high enough to ensure profit from their services. Quality is another performance objective and this is the ability to produce in accordance with the specifications without error. This will ensure full customer satisfaction and a high-quality reputation. It is essential that Powell’s provide a premium service as not only does it guarantee safety for their customers, but it gives them an advantage over competitors. Dependability is the ability to produce goods and services in accordance to the promises made to the customer. This could include a time deadline that the service needs to be completed by, therefore Powell’s must ensure that they fulfil any tasks given by customers’ and remain reliable or a bad reputation could circulate, resulting in less business. The ability to do things quickly in response to the customer’s demands is known as speed. This should also reduce time between orders from the customer and when they receive it again. Being a busy garage means that Powell’s must complete services as quickly as possible in order to keep up with the level of demand they receive. If this is not met, customers’ could use another organisation that can offer a quick service. Finally, the last performance objective from Slack et al. is flexibility. This is the ability to change the operation in a variety of ways. This therefore means that Powell’s must offer a wide variety of goods and services in order to fit with any customer needs and keep the amount of business high. These five performance objectives can also be linked, and these links mean that an organisation can excel in certain operations and compete with other organisations. For example, quality reduces cost and increases dependability. High quality therefore means fewer mistakes made in the operation, this leads to a reduced amount of time needed to correct any errors, and less time spent on the operation means reduced cost. This results in the customer being satisfied with the service. It will also more than likely mean they will feel confident using the organisation and will return for future business. From using primary research to study Powell’s garage, it is noticeable that quality is the most vital objective to ensure its success in their marketplace. Through questionnaires, shown as Appendix 1, and interviews with customers and within the organisation; it is quality that is the most prominent feature of Powell’s garage. This organisation deals with motor...
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