Business: Quick Trip Issue Analysis
BUS 430: Operations Management
Quick Trip Case Study
Evaluate Quick Trip operations strategy and explain how the organization seeks to gain a competitive advantage in terms of sustainability.
Since its establishment in 1958, Quick Trip (QT) had managed and operated to open over 500 stores. The value chain had surpassed competitors in the convenience store channel. For instance, in 2010, QT posted a by-store profit that was twice that of the top quartile of competitors. By 2011, QT had over 1000 employees who operated 549 stores in 11 cities in the United States (Ton, 2011). Despite succeeding in the market, QTs stores have reached a saturation point.
The Quick Trip operation approach focuses on its employees through good remuneration and promotion, which leads to a good customer experience. QT aims to open stores in new areas across the country. New markets will empower QT to achieve a competitive advantage over its rivals since the current markets are already been overloaded. Furthermore, new markets will foster not only growth but also sustainability for the Cadieux-led Corporation.
Analyze how operation management activities affect the customer experience. Select two (2) operation management challenges and provide the solutions for confronting them.
Operation management activities influence customer experience in a negative and positive every day. These activities can include marketing and sales, outbound logistics, and operations (Tarver, 2019). For instance, operations include the exchange of raw materials to the finished products. Improperly handing packaging during operations can make the customer purchase the wrong quantity of a product. By contrast, the customer will be given products of the right quantity and quality when the value chain adheres to all operations requirements. Furthermore, the chain brands and labels the products correctly.
There can exists a challenge in product and service delivery, which can be confronted by reducing production lead time and encouraging on-time delivery to customers. Furthermore, poor service is also a challenge in operations management. In some instances, customers may receive poor quality products. The chain should replace, refund, or repair products to enhance the consumer experience.
Examine Quick Trip value chain and evaluate its effectiveness to operations in terms of quality, value creation, and customer satisfaction.
Quick Trip is highly effective in improving customer satisfaction through the products offered. The convenience stored has focused on promoting good customer experience. From the hiring process to the training of employees, QT ensures its employees can attract customers and enhancing consumer value. Concerning quality, QT has established a reputation for selling quality products at low prices. Customers perceive QT to be of high quality and lowest price (Ton, 2011). Therefore, a customer is likely to purchase a product from QT since the chain is renowned for offering high-quality products. Further, QT makes operating decisions that are good for customers and employees and created value for customers through quality products and services. Consequently, the chain has attained customer loyalty and repeat purchases.
Determine the different types of performance measurements that can be used to measure Quick Trip service-delivery system design. Select at least two (2) types that can be applied and provide justifications for the selection.
Performance measurement is the process of quantifying the efficiency and effectiveness of the undertaken actions (Leończuk, 2016). Types of performance measurements include the cost of quality, variances, period expenses, inventory turnover, profit contribution, and safety. Quick Trip service delivery can utilize the cost of quality and period expenses in its system design. For example, the cost of quality could measure the budgeted versus actual amount incurred to achieve quality products. QT emphasizes on the quality and care of its products. It is justifiable to include the cost of quality to compare the actual and budgeted cost figures. Similar to cost of quality, period expenses would measure the actual versus the budgeted expenses. Expenses would include administrative and general expenses such as utilities and store supplies.
Examine the different types of technologies applied to Quick Trip service operations and evaluate how the technologies strengthen the value chain.
Quick Trip has a mobile application that allows customers to order via the brand’s app. The mobile app promotes convenience since a customer can order from any place at any time. Consequently, the mobile application technology strengthens the value chain through increased transparency in pricing. Moreover, it streamlines the process of ordering, processing, and delivery. Furthermore, the value chain uses a pump shield to curb credit card skimming at the filling station (Wasikowski, 2017). The pump shield technology helps to prevent fraudulent activities from criminals.
Apply the concept of operations management.
The concept of operations management guides the creation of goods and services for the final consumer. Operations management transforms operational and production inputs into outputs that meet the needs of the customers. It includes controlling, coordinating, organizing and planning the resources required in the production of goods and services. As such, operations management is delivery-focused, thus ensures the company converts inputs into outputs in an efficient manner.
Compare and contrast the difference between a supply chain and a value chain.
A supply chain implies integration of activities involved in the process of logistics, conversion, sourcing, and procurement. Therefore, a supply chain is the interconnection of processes from manufacturing to the finished product. By contrast, a value chain refers to business operations in which a utility is added to the products to enhance consumer value. Unlike the supply chain, a value chain focuses on adding or creating value to the final product (Surbhi, 2018). Nevertheless, both networks focus on providing quality products to consumers at reasonable prices.
Analyze the types of measures used for decision making
Decision measurement tools include a balanced scorecard, economic value-added and benchmarking. Benchmarking measures people’s actions and decisions through indicators such as defects per unit of measure, productivity per unit of measure and cost per unit of measure. Economic value added (EVA) aims at maximizing resources and profits. EVA measures quantification of decision impacts and their contribution to profit. A balanced scorecard adds non-financial measurement to give decision-makers a balanced view of organizational performance (Nura& Osman, 2012).
Analyze the five key competitive priorities and their relationship to operations strategy.
Competitive priorities are operational dimensions a supply chain or a process must possess to satisfy the internal or external customers. The competing priorities concept is related to organizational performance, thus helps organizations to set up achievable goals (Jitpaiboon, 2014). The five key competitive priorities include innovation, cost, flexibility, quality and delivery time. Flexibility is the ability to deploy resources in response to changes in agreements, which are mainly initiated by the customers. The flexibility priority includes various features such as product variety, volume changes, and adjustment to design (Jitpaiboon, 2014).
Cost represents the ability to manage production costs. In operations strategy, cost is related to aspects such as value-added, overhead and inventory. Low-cost operations include delivering products or services at the lowest costs to enhance customer satisfaction. Quality requires the production of products and services according to the design specification. Quality includes product durability, reliability and performance. Delivery time includes reduced production lead time, production cycle and on-time delivery, while innovation refers to the creation of more effective products and services (Jitpaiboon, 2014).
Analyze different types of technology and their roles in manufacturing and service operations.
Businesses use technology in manufacturing and service strategy to reduce production costs and maximize the quality of the product. Types of technology used in manufacturing and service operations include the Industrial Internet of Things, big data analytics, machine learning and artificial intelligence, and 3D printing. 3D printing allows manufacturers to create products from designs that are stored in computer-aided design (CAD) (Emeneker, 2019). Unlike traditional manufacturing operations, 3D printers create designs and shapes for engineers and designers.
Machine learning and artificial intelligence allow production teams to reduce operational costs, control the manufacturing and service operations as well as replace the inventory. Big data analytics provide ways of enhancing product customization and streamlining manufacturing processes. Industrial internet of things, an amalgamation of various technologies such as cloud integration and sensor data, is used in manufacturing and service operations to enhance process efficiency, real-time monitoring of processes and supply chain visibility (Emeneker, 2019).
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2. Jitpaiboon, T. (2014). The study of competitive priorities and information technology selection: exploring buyer and supplier performance. Journal of International Technology and Information Management, 23(3), 6.
3. Leończuk, D. (2016). Categories of supply chain performance indicators: an overview of approaches. Business, management, and education, 14(1), 103-115.
4. Nura, A. A., & Osman, N. H. (2012). A Toolkit on effective decision making measurement in organizations. International Journal of Humanities and Social Science, 2(4), 296-303.
5. Surbhi, S. (2018, July 26). Difference Between Supply Chain and Value Chain (with Comparison Chart). Retrieved January 16, 2020, from https://keydifferences.com/difference-between-supply-chain-and-value-chain.html
6. Tarver, E. (2019, May 26). What Are the Primary Activities of Michael Porter’s Value Chain? Retrieved January 16, 2020, from https://www.investopedia.com/ask/answers/050115/what-are-primary-activities-michael-porters-value-chain.asp
7. Wasikowski, J. (2017, September 30). QuickTrip uses a new way to stop card skimming. Retrieved January 16, 2020, from https://www.3newsnow.com/news/local-news/quiktrip-uses-new-way-to-stop-card-skimming