Operations Management Report free essay sample

It outlines the findings of an observation made on Saturday, 30th March, 2013 which established that long queues are a common occurrence at Movie World theme park particularly during peak times. The report will examine the body of knowledge in the existing literature with regard to queuing at theme parks and how it affects guest satisfaction, it will then suggest possible solutions, drawing from the literature review and then provide an evaluation of the alternative solutions as well as recommend appropriate methods for the resolution of the queuing challenges at Movie World Theme park. The report concludes by reiterating the importance of effective queue management and its potential to reduce the level of moment of truth, a factor which is very critical to guest satisfaction. 2. 0Brief description of business and context-Movie World Theme Park Movie World theme park is a popular  movie  related  theme park  on the  Gold Coast  in  Australia which is owned and operated by  Village Roadshow Limited and is the only movie related park in Australia. We will write a custom essay sample on Operations Management Report or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Movie World operates various movie-themed rides and attractions ranging from motion simulators to roller coasters and slow river rides. It also boasts of   costumed character  performers who patrol the park, allowing visitors the chance to take photos with them. This paper will analyse the operations of the theme park as observed on Saturday, 30th March, 2013 with particular interest on queue management. Long and disorderly queues were observed on the day, this report will discuss queue management as an operation management problem that Movie World Theme Park needs to address, particularly at the ticketing offices and as visitors were waiting to get on roller coaster and slow river rides. This is because according to Norman (2009), long lines at theme parks are a continual source of irritation for visitors and may impact on the quality of their experience. 3. 0Identification and analysis of Operations Management challenge-Long and disorderly queues At the ticketing offices, the queues are very long and sometimes disorderly; this is exacerbated by the fact that not all the booths are open at the same time in most cases. Heung, Tsang and Cheng (2009) suggest that most activities in which a service is provided require customers to wait in a queue during the experience, the problem of queuing is quite common in theme parks where visitors who patronise popular new attractions appear to be spending more and more time queuing, as they are forced to wait for a significant length of time simply to play a game or take an adventure ride at a theme park. They contend that waits for rides at attractions are the top complaints among guests. Research has shown that one thing that is inherent in waiting lines is the universal dislike for the process, the feelings and opinions developed in waiting lines influence the customers perception of the awaited experience (Cope, Cope III, Bass, Syrdal, H. A, 2011, Davis Heineke 1994). Desai and Hunsucker (2008) contend that the goal of many visitors at an amusement/ theme park is to experience the most number of rides and attractions possible within the stipulated time; they argue that during peak seasons a common sight at theme parks is a long queue of visitors waiting to seek the thrill and excitement of amusement rides. They further argue that coupled with a limited ride capacity, the park managers face major problems in coping with this heavy demand and high wait times on rides. This scenario of having to wait lengthy periods in queues indicates inferior service levels on the part of park management and may contribute to customer dissatisfaction. Davis Heineke (1994) suggests that the real issue in queue management is not the actual amount of time that the customer waits in a queue, but also the customer’s perception of that wait and his or her associated level of satisfaction, therefore providing a high level of customer satisfaction should be the true objective of effective queue management. The emphasis is customer satisfaction because it provides the necessary linkage between the level of service provided and the customer’s perception of the service and the customer’s future behaviour towards the firm. 4. 0Possible solutions to the challenge In order to mitigate the effects of long waiting time, Kostami and Ward (2009) submit that many service providers offer customers the choice of either waiting in a line or going offline and returning at a dynamically determined future time e. g. Disneyland. They argue however, that to operate such a system, the service provider must make an upfront decision on how to allocate service capacity between the lines especially considering the fact that the estimation of offline waiting times is complicated by the failure by some offline customers to return for service at their appointed time. Other solutions may include resolving capacity problems by increasing ride capacity through adding more infrastructure or increasing the capacity of existing equipment, though this may inevitably involve heavy capital expenditure (Desai and Hunsucker, 2008). Heung, Tsang and Cheng (2009), contend that customers who are unoccupied tend to perceive longer waiting times more negatively than customers who are occupied during their waits, this suggests that efforts aimed at occupying waiting customers with reading materials, interesting displays or providing opportunities for them to do their own tasks as they wait would minimise the negative perceptions that they would have about the waiting time. Further, Heung, Tsang and Cheng (2009) argue that a critical element in all facets of managing customer perception with respect to queues is the proper training of contact personnel especially in high visibility and low variety business environments like theme parks. Norman (2009) contends that measures such as advance reservations minimise the trauma of waiting but they must be seen as fair and equitable to those without reservations. Management may consider assigning customers numbers at arrival and then calling them in sequence. Norman (2009) submits that fairness of system and value of the ride could minimise perceived waiting time. Management should therefore, focus on giving people a good experience while waiting on a line. Management may also consider applying Little’s Law in working out average waiting time and the average number of guests waiting for a service, this will enable them determine average rate of arrivals to the system, thereby forecasting demand and hence reducing the adverse effects of queuing(Little, 2011). 5. 0Conclusion/Recommendations Long waiting time can negatively affect the guest experience and even result in balking or reneging on the part of the guest. It is therefore, recommended that to minimise on the negative effects of waiting time, more ticket booths are opened and more activities are introduced. Resolving capacity problems will enable management at Movie World theme park to minimise average cost when there are costs associated with customer abandonment and queuing. Of utmost importance is the need for management to focus on giving guests a good experience by ensuring that systems put in place to resolve these queuing challenges and thereby improve the through put, in the provision of the service, are seen to be fair by the customer. Effective queue management may mean the difference between quality guest experience, and therefore, zero moment of truth, and dissatisfied customers whose complaints if not well managed may result in loss of business for the service provider. In a business environment where the customer has a number of alternatives to choose from, it is important for service providers to take quality management seriously, and in the case of Movie World, management cannot afford to ignore the problems caused by queuing, considering its effects on guest satisfaction. References Cope, R. F. , Cope III, R. F. Bass, A. N. , Syrdal H. A. (2011). Innovative knowledge management at Disney: Human capital and queuing solutions for services. Journal of Service Science, 4(1), 13 Davis, M. M. , Heineke, J. (1994). Understanding the roles of the customer and the operation for better queue management. International Journal of Operations Production Management, 14(5), 21-34. doi:10. 1108/01443579410056777 Desai, S . S. , Hunsucker, J. L. (2008). A sensitivity analysis tool for improving the capacity of amusement rides. Journal of Simulation, 2(2), 117-126, doi:10. 1057/jos. 2008. 3 Heung, V. C. S. Tsang,N. , Chang, M. (2009). Queuing behaviour in theme parks: a comparison between Chinese and Western tourists. Journal of China Tourism Research, 5(1), 41-51 http://dx. doi. org/10. 1080/19388160802711394 Kostami, V. , Ward, A. R. (2009). Managing service systems with an offline waiting option and customer abandonment. Manufacturing and Service Operations management, 11(4), 644-656. Little, J. D. C. (2011). Little’s Law as viewed on its 50th anniversary. Operations Research, 59(3), 536-549 Norman, D. A. (2009). Designing waits that work. MIT Sloan Management Review, 50(4), 23-28