Operation Management(Case Analysis)

Eleni had worked for the same FT Global 500 Company for almost 16 years.

Although the company had gone through some tough times, things were starting to

turn around. Customer orders were up, and quality and productivity had improved

dramatically from what they had been only a few years earlier following a

companywide quality improvement program. So it came as a real shock to Eleni

and about 350 of her co-workers when they were suddenly made redundant

following the new CEO's decision to downsize the company.

After recovering from the initial shock, Eleni tried to find employment elsewhere.

Despite her efforts, after eight months of searching she was no closer to finding a job

than the day she started. Her funds were being depleted and she was getting more

discouraged. There was one bright spot, though: she was able to bring in a little

money by gardening for her neighbours. She got involved quite by chance when she

heard one neighbour remark that now that his children had left the family home,

nobody was around to cut the grass and water some plants. Almost jokingly, Eleni

asked him how much he'd be willing to pay. Soon Eleni was doing the basic

gardening of five neighbours. Other neighbours wanted her to work on their gardens,

but she didn't feel that she could spare any more time from her job search.

However, as the rejection letters began to pile up, Eleni knew she had to make a

decision. On a sunny Wednesday morning, she decided, like many others in a similar

situation, to go into business for herselftaking care of neighborhood gardens. She

was relieved to give up the stress of job hunting, and she was excited about the

prospect of being her own boss. But she was also fearful of being completely on her

own. Nevertheless, Eleni was determined to make a go of it.

At first, business was a little slow, but once people realized Eleni was available,

many asked her to take care of their gardens. Some people were simply glad to turn

the work over to her; others switched from professional garden maintenance services.

By the end of her first year in business, Eleni knew she could earn a living this

way. Business became so good that Eleni hired two part time workers to assist her

and, even then, she believed she could expand further if she wanted to.

Questions

1) All managers have to cope with variation.

a. What are the major sources of variation Eleni has to contend with?

b. How might these sources of variation impact Eleni ability to match

supply and demand?

c. What are some ways she can cope with variation?

2) Eleni is thinking of making some of her operations sustainable. What are

some ideas she might consider?