Operations Management Your Garden Gloves Team Papaya Nick

Operations Management “Your Garden Gloves” Team: Papaya Nick Presented by: Jason, Jimmy, Nick, Rachel, Richard, Sandy Professor: Ying Jiun Hsieh

Outline 1. Case Introduction 2. Question Discussion 3. Questions and Answers

1. Case Introduction – “Your Garden Gloves” Company Background: • Gardening business • Established 5 years ago • Substantially business growth • Each year 10 new clients and a new employee • Currently 8 seasonal employees

1. Case Introduction – “Your Garden Gloves” Company Background: • Assign crew to do tasks • Crew size range from 2 to 4 workers • Largest job took longer time • Take a investigation

2. Question Discussion Question 1 Which crew size had the highest productivity? Which crew size had the lowest productivity? What are some possible explanations for these results? Crew Size Average Productivity per Crew 2 4, 234 square feet per day 3 5, 352 square feet per day 4 7, 860 square feet per day

Productivity Ratios • Crew Size Average Productivity per Crew Productivity Ratio 2 4, 234 square feet per day 2, 117 ↑ 3 5, 352 square feet per day 1, 784 ↓ 4 7, 860 square feet per day 1, 965 →

Explanation Productivity Ratios Productivity Paradox 1. New workers (Grouping of employees with different experience level) 2. Quality of tools

2. Question Discussion Question 2 After a recent storm, a customer called in a panic, saying that she had planned a garden party for the upcoming weekend and her garden was shambles. The owner decided to send a crew of four workers, even though a two-worker crew would have a higher productivity. Explain the rationale for this decision.

Prioritization Critical activity with high importance and urgency

Rational Explanation • Time pressure Crew Size Average Productivity per Crew Productivity Ratio 2 4, 234 square feet per day ↓ 2, 117 ↑ 3 5, 352 square feet per day → 1, 784 ↓ 4 7, 860 square feet per day ↑ 1, 965 → • 4 people have the highest total output per day • 4 workers should complete the work asap

Illustration • Assumption: Garden size 20, 000 square feet Case 1 Case 2 Crew size 2 4, 234 ft²/day Duration: 4. 7 days Crew size 4 7, 860 ft²/day Duration: 2. 5 days

2. Question Discussion Question 3 What is a possible qualitative issue that may very well influence productivity levels that the productivity ratios fail to take into account?

Qualitative Issues 1. New company: • Founded only 5 years ago • Low employee loyalty Solutions: • Offer long-term contracts • Provide a career path • Develop relationships

Qualitative Issues 2. Seasonal work: (weather conditions, location) • 6 month operating time • No continuous work flow through the whole year • Employees may look for permanent jobs → drop outs

Qualitative Issues 3. Standardization: • Standardized processes increase the productivity level of employees Solution: Introduction of standard operation procedures • In long term, employees may feel less motivated and reduce productivity level Solution: Assign different tasks from time to time

Qualitative Issues 4. Incentive plans that reward productivity can increase productivity • Productivity level influenced by structural division between management and labor • Goal: Willingness that workers give their best Solution: Performance related wages

Qualitative Issues 5. Experience of workers • Employees with longer experience have usually a higher productivity level than less experienced workers 6. Quality of tools • Has an impact of the productivity level

3. Questions and Answers

Sources • Operations Management by William J. Stevenson (11 th Edition). • http: //anywhereworking. org/2013/productivity-hack-friday-actionsurgent-important-matrix/ • http: //upload. wikimedia. org/wikipedia/commons/thumb/5/50/Michigan_ in_United_States. svg/800 px-Michigan_in_United_States. svg. png • http: //de. climate-data. org/location/17804/