Operations case studies

Question 1

Globalisation

Answer 1

Coles
- Introduction of foreign competition of Amazon, Costco and Aldi has resulted in a reduction in coles market share from
38%-28%

• In response coles Invested $150m into automated distribution centres
• Expanding online shopping services
• Invested in dining in option

Question 2

Cost based competition

Answer 2

Coles
- Invested $150million in automated distribution centres to cut costs
- Specified to suppliers how to make and package products more efficiently
- Reducing the variety of brands stocked to negotiate lower prices

Question 3

Technology

Answer 3

Uber
- Utilise leading edge technology that connects customers to drivers and rate their service, providing a cheaper product with better service and dependability than taxis

• Uber is now the most popular form of transportation in the taxi/rideshare market

Question 4

Quality expectations

Answer 4

• Quality control: Chemical test ingredients and gamma ray scan the final product
• Quality assurance: Achieved ISO and GFSI certification to guarantee quality
• Quality improvement: online platform for staff to post suggestions to reduce defects
  Coke has had a Global product quality index above 95 every year since 2010

Question 5

Legal regulations + government policy

Answer 5

The government policy to close international borders during covid caused Qantas to lose $20 billion in revenue

In response, Qantas opened 45 new domestic routes, and were boosted by the Government subsidising 800,000 half price airfares

Qantas must also follow legal regulations otherwise face penalties for non-compliance, such as:
- temperature checks of customers during the covid pandemic
- Random alcohol and drug testing for pilots and engineers
- New security regulations in response to terrorism
- WH&S regulations for engineering and on-flight roles

Question 6

Out sourcing

Answer 6

Nanas berries
Outsourced packaging of berries to factory in China

Weaker regulations and lack of control led to contamination of berries and over 20
Australians catching hepatitis A

This led to a national recall and new legal regulations on testing imported foods
loss earnings of 14.4 million dollars, disposed 3.8 million of berries held in the storage, caused Patties food LTD (owner of Nana’s Berries) to raise prices of their beef prices

Question 7

Supply chain management

Answer 7

Logistics:
Outsourcing delivery drivers
Locate warehouses in large cities
Online tracking for delivery orders

E-commerce
Amazon have an online platform to sell products as well as giving businesses a platform to sell online

Globally sourcing inputs
from shenzhen china as it is an SEZ

Question 8

JIT

Answer 8

Toyota
Pioneered the JIT approach

Developed the ‘Kanban’ system for tracking inputs to ensure it did not run out

Toyota now uses inventory software that automatically places orders for stock when levels are low or if there is a spike in orders

Question 9

Holding stock

Answer 9

● IKEA uses Holdings stock for dependability while still reducing storage costs
● Flat pack furniture reduces space for storage and has reduced cost on it’s bulky furniture by 14% since 2011
● Having consumers retrieve products directly from the Warehouse reduces logistical costs

Question 10

CSR

Answer 10

Unilever
- Installing new technology in order to reduce carbon emmisions by 43% and waste by 95% in 10 years
- Partnered with the charity oxfam to improve labour conditions of production and suppliers
- Equal amount of men and women in managemnt

Question 11

Volume

Answer 11

• 68 million customers each day worldwide
• Can bulk buy and standardise operations to cut costs
• Mcdonalds must manage the high volume to avoid long lead times and maintain its dependability

Question 12

Variety

Answer 12

• Create your own taste had 171 options
• Replaced with Gourmet creations due to impact on speed and cost

Question 13

Variation in demand

Answer 13

Qantas
Change routes for seasonal changes (E.G more routes to Canada in ski seasons)

Question 14

Visibility

Answer 14

Qantas
Clean and safe plans
customer service ie responding to water need

Question 15

Overcoming resistance to change

Answer 15

● Toyota closed its factory in Australia due to rising production costs, leading to redundancy costs of 200 million dollars for
approximately 2500 employees

● It also reorganized the plant layout to have cars side by side. This reduced installation costs by 35%.

● changed from having hanging cars on the ceiling to using raised platforms.

● Toyota overcame resistance to these changes by encouraging employees to raise concerns and give feedback thus
promoting vocal employees

Question 16

New product design and development

Answer 16

In response to increasing health concerns, Coke launched Coke Life in Australia in 2015 with natural stevia and less sugar

The recipe had been trialled in the South American and British market

Coke Life was unpopular in Australia and

Coke sales fell 5% in the year of its launch. After 2 years and millions of dollars spent, Coke terminated the product and replaced it with Coke No Sugar