Write a vision and a mission statement for Cutey Barber Salon Why is it important for the Operations Manager to forecast demand at Cutey Barber Salon?

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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Cutey Barber Salon Cutey Barber Salon is a trendy barber salon that is located in a densely populated city called Maple. Demand for the services offered by the salon is fairly high. It offers services such as haircuts, hair styling, scalp massaging and conditioning treatment, straight razor and wet shave, beard sculpting, facials and hair colouring. In addition to these services provided, the salon sells premium hair products to customers. The salon has the ability to produce a maximum of 20,000 haircuts and hairstyling per year. Demand for haircuts and hairstyling over the last five years can be seen in the following table:-

 

Year

Demand for haircuts

and hairstyling

2017

11,500

2018

12,200

2019

13,400

2020

14,000

2021

14,500

 

Although the business does not have a written vision and mission statement, it is clear in the minds of management what they want to achieve and what they would like to be in the future. Currently, customers can walk in at anytime to be served. At times, customers have to wait in line for a long time. This is creating some challenges for the operations manager. He needs to overcome this challenge in order to utilize his resources more efficiently. Competition in the hair salon business is intensifying. New firms are rising up and existing firms are expanding their operations. Increasing competition is gradually eating away profit margins since costs are increasing and customers are demanding lower prices for services. Management has to find some efficient way to add value to their products and to overcome the competition.

QUESTIONS

Write a vision and a mission statement for Cutey Barber Salon

Why is it important for the Operations Manager to forecast demand at Cutey Barber Salon?

Use trend projection to forecast demand for haircuts and hairstyling for 2022.

Calculate the utilisation rate at Cutey Barber Salon in 2021.

Describe two techniques that can be used to increase the utilisation rate.

Should Cutey Barber Salon sell hair products?

Other than employing more staff, describe two techniques that the Operations Manager can use to reduce the waiting time for customers?

Other than quality, explain how the Operations Manager can use two competitive priorities to compete.

How can status value be added at Cutey Barber Salon.

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