CAPE Industrial Services - case study Essay Example for Free

CAPE industrial function case study Essay1.0 IntroductionIn response to the increased importance of armed servings, numerous articles on issues related to the effective forethought of supporter trading operations chip in appeargond in twain academic and practitioner found publications (Chase and Hayes, 1991 Karmarker and Pitbladdo, 1995 Kellogg and Nie, 1995 Lovelock, 1992 Roth and Van Der Velde, 1991). Several of these articles present typologies of operate and provide directions for improving shade, productivity and operating efficiency, heretofore relatively little has been done to test the proposed ideas.In order to understand more of these various advantage management typologies, an actual business organisation that focuses on providing serve will be observed and analysed. In the discussion, the design and strategies of the selected smart set in the Oil diligence service sector will be interpreted into account. Recommendations for changement will also be provided at the end of the discussion.2.0 Model of the divine serviceThe variety of the service sector makes it complicated to come up with useful generalisations concerning the management of service organisations. Therefore, a capacious summation of research has been focused on developing service classification schemes. For example, Judd (1964) classified services according to trine categories rented goods, owned goods and non-goods services. Similarly, Rathmell (1974) categorised services according to type of buyer, buyer motives, buying practices, type of seller, and degree of regulation. pull down though these classifications show how some services atomic number 18 different from the differents, they do not provide frequently useful insight into the design and management of service processes from an operational perspective. more than recent classification schemes have explored the complex nature of service deli very systems with the goal of identifying differentiating characteristics, which affect musical note and process improvement, as substantially as service design. For example, Shostack (1977) and Sasser, Olsen and Wyckoff (1978) developed the purpose of product-service-package based on the tangible versus intangible nature of services.More recent researchers however believe in an integrated approach to service management. For example, Thomas (1978) argues that a spacious part of manufacturing experience is irrelevant to the management of service operations because the supply services are very different from that of manufacturing. Sullivan (1981) and Bowen and Cummings (1990) also advocate an integrated approach to service management and suggest that operations management researchers must include organisational behaviour and selling constructs and techniques to address service operations problems adequately.The means of classifying service models are indeed varied. For this particular analysis though, the model proposed by Schmenner (19 86), also known as the Service Process Matrix (SPM), will be used. The SPM expands the node- inter-group communication model and categorises services on two dimensions. One is dig intensity, and the former(a) is node contact and service customisation. Schmenner (1986) proposed a two-by-two service process matrix that classifies services as service elementy, service shop, mass service, and professional service. Under these models, CAPE Industrial service rear end be classified under the Professional Service category. Professional service is described as the provision of services with proud customer contact and or customisation and high labour intensity.Labour intensity on the other hand is defined as the ratio of the labour cost incurred to the value of the plant and equipment. A high labour intensity business involves relatively small plant and equipment investment relative to a considerable amount of croper age, effort, and cost. The second dimension in the classification s cheme combines two distinct concepts customer interaction and customisation. A service with a high level of interaction is one in which the customer bath actively intervene in the service process. A service with high customisation will work to satisfy an individuals particular preferences.The joint measure has a high value when a service exhibits both a high level of interaction and a high level of customisation for the customers. In the selected business, CAPES trading operations management has a high contact with customers who need to be kept informed of the service range existence delivered to them. Thus, high customisation or high selection on the services expirering in this type of Industry. Also, CAPE put on a high labour intensity as the Oil Industry service sector is primed(p) globally, in short the service range offered by CAPE is readily rise to powerible, incurring fewer be for equipment and labour.3.0 Service Design and DeliveryThe contracts that are held by CAP E require daily customer contact on a personal level, having designated affair Delivery Managers for these contracts assist the customers with what they need for their services. So as to aver the efficiency and speed of service, there are also designated digest managers. These managers have aeonian contact with the inshore or onshore facility, this is handled in such a way that both the customer and the CAPE Business Delivery Manager are aware of all the daily operations that are on going.The services rendered by CAPE Industrial Services are a vast range of Multi-Disciplined Fabric aid and Access techniques to Oil and Gas Sector. Charges built into the contract rates cover the be of the additional project management. At times, services are requested that are not of the norm for CAPE, to service these Third society companies are brought in under the CAPE banner. While the cost of these services may vary a great deal from the standard contract rates, excellent service is a mu st. Thus, extra costs are incurred for additional time and effort put into the contract by the CAPE managers.So as to make the services offered by CAPE more affordable and viable for their customers the company tends to work on providing innovative ideas that will improve work ethics. Typical innovative ideas are the Introduction of Industrial Rope Access this is a returns to the customer as it cuts out the need for Scaffold or other means of conventional access solutions. Like other service companies, one of the common strategies of CAPE is to offer a volume brush aside or a reduced rate if the period of the contract apprize be extended.4.0 Service schemeService companies in the Oil and Gas Industry have numerous strategies on how their rendered services can be better than competitors. Aside from maintaining case and safety in service, one of the aims of the CAPE Industrial Services is to provide innovative ideas to their customers that will keep them ahead of their competitor s whilst at the same time providing cost savings and improvements in quality to the customer.Improvements in the equipments and materials that are available in the Oil Industry also aid in achieving the quality of service. Industrial Rope Access for instance, helps in reducing time scales for accessing work sites. Hence, this reduces costs to the customer. Using the appropriate tools in the work-site also helps to improve quality and time-scales. This goal of the company does not provided facilitate in serving the customer appropriately, just now most importantly it shows that the Oil and Gas Industry service area prioritises its customers. This in turn results to high customer satisfaction and loyalty.5.0 Service Encounter wad in the ServicePersonnel working for CAPE Operations include Operations managers, Project Managers, QA/QC and HSE Managers, proficient Clerks and Secretarys. Each of these employees has their own designated duties and responsibilities in the area. This wa y, efficiency of service is maintained in the Company.Of course problems might occur in any type of businesses, a company is bound to make erroneousnesss if there are no careful observations to their businesses. One of the problems that a company like CAPE might encounter is the companys personnel or human resource mis involves. The reason for this is the lack in the training it provides for its personnel. The training and development of each employee is very significant as this does not only help in providing confidence in work performance, but it also helps in maintaining quality service. So it is advisable for CAPE Industrial Services to train their employees hygienic to provide their customers with better satisfaction.6.0 Managing Service Expectation and CapacityIn times when demands for services increase, CAPE Industrial Services tries to cope by conducting reliable forecasts. The company so as to keep track of its activities on a regular basis keeps records of previous busine ss operations. This aids the managers from predicting sudden increases of service demand. In order to cope with peak months for ad-hoc services, the customers managers are advised to make their project plans ahead of time. Through this system, CAPE is able to plan ahead for availableness of equipment, consumables and personnel that will be used for upcoming projects.7.0 RecommendationsOne of the problems that the organisation might face is the mistake their site personnel are committing because of their lack of training and development. As previously mentioned, this is a vital factor so as to maintain efficient service in the company and lessen the number of mistakes which can be made on one of the sites. In order to remedy this problem, the managers can plan an effective and appropriate program for each employee based on their respective duties within the company. The managers can also implement a system at the sites wherein the older workers with more site experience can assist impudently hired employees. This can be a more appropriate method of training as the impression of the workers to the actual work area can help them adjust to the nature of their job. Regular evaluation of the workers can help in improving the skills of the workers and keep them up to date of their current work performance. In this way, quality of service is maintained and skills are enhanced.Overall, the performance of CAPE Industrial Services is efficient. Considering its effective strategies and significant goals for quality service, it is enough to say that the services provided by CAPE are good and successful. However, there are other factors that are to be considered in this type of service. The consideration of these factors will not only help the company in serving their customers better, but it will also help them maintain quality and service provided to lively and potential rude(a) customers.8.0 Operational Improvement Through the Use of TechnologyIn reality, the world of a service company in the Oil and Gas Industry is changing. The expectations of people are different than those of retiring(a) generations, Safety and Quality are becoming more important features of the industry each year, cost pressures stay to mount, and new information technologies have changed operational functions (Cushman and Shanklin, 1996 Bowers, 1987). As a result, the captive market plan concept is declining and the services are being exposed to a greater amount of competition than in the past. due(p) to these changes, the old strategies of a service company system must also adapt. This adaptation will emphatically contribute to sufficient flexibility that will meet customers needs in an ever-changing environment patch retaining the beneficial aspects of a Multi-Disciplined service provider. As CAPE is focused on giving their customers a quality service, one of the possible strategies that can be employed by the company is the application of the One preventive Shop Fabric Maintenance service provider.As information technologies have advanced, the virtual(prenominal) organisation concept has been promoted as an alternative too traditional, vertically integrated organisational structures (Goldman et al, 1995). In virtual organisations, a lead entity creates an union with a set of other organisations (Grenier Metes, 1995). The tasks performed by the virtual organisation are divided among the entities that comprise it, based upon their respective competencies. virtual(prenominal) organisations can produce superior results because they harness market forces to combine competencies in shipway that traditional organisations, using internal mechanisms, cannot (Chesbrough Teece, 1996).Once constituted, the lead organisation operates the virtual organisation by co-ordinating line of latitude tasks through the use of sophisticated information technologies and management systems, thus creating a coherent system. A virtual organisations membership ch anges over time as market conditions and technologies shift and the strategies and resources of the constituent organisations evolve. While virtual organisations are most often found in high technology industries such as the development of new computer systems, some characteristics of CAPE Industrial Services make it amenable to the successful operation of a company that services the needs of the Oil and gas Industry.9.0 ConclusionWhile CAPES Operations may take a lot of resources to maintain the business and the quality of service provided, the benefits that it can provide outweigh the get down incurred. Aside from that, the services offered by CAPE will definitely increase in quality, hence, greatly modify to the goals of the company. Through careful and effective planning, budgeting and implementation, CAPE Industrial Services can begin on devising little changes, improving the company one step at a time. The important thing is that constant adaptation to change is being done and that the Operations management is coming up with ways on how to improve the services that are provided by the company and keeping the customer coming back.10.0 ReferencesBowen, D.E., and Cummings, T.G. (1990). Suppose we took service seriously. In Service Management Effectiveness, New York Jossey-Bass Publishers, 1-4Chase, R.B., and Hayes, R.H. (1991). Beefing-up operations in service firms. Sloan Management Review, 33 (1), 15-26Chesbrough, H. W., and Teece D. J. (1996, January-February). When is Virtual virtuous? Organising for innovation. Harvard Business Review, 65-73Goldman, S. L., Nagel, R. N., and Preiss, K. (1995). Agile Competitors and Virtual administrations Strategies for Enriching the Customer. New York Van Nostrand ReinholdGrenier R., and Metes, G. (1995). Going Virtual Moving Your Organisation Into the 21st Century. Upper Saddle River, NJ Prentice Hall PTR www.soc.napier.ac.uk/module.php3?op=getlecturecloaking=nolectureid=1935516Karmarkar, U.S., and Pitbladdo, R. ( 1995). Service markets and competition. Journal of Operations Management, 12 (4), 397-411Kellogg, D.L. and Nie, W. (1995). A framework for strategic service management. Journal of Operations Management, 13, 323-337Lovelock, C.H. (1992). A basic toolkit for service management. In Managing services marketing, operations, and human resources 2nd ed. Englewood Cliffs, NJ Prentice HallRoth, A.V., and Van Der Velde, M. (1991). Operations as marketing A competitive service strategy. Journal of Operations Management, 10 (3), 303-328Judd, R.C. (1964). The case for redefining services. Journal of trade, 28, 1Rathmell, J.M. (1974). Marketing in the service sector, Cambridge, MA WinthropSchmenner, R.W. (1986). How can service businesses survive and prosper. Sloan Management Review, 27 (3), 21-32Shostack. G.L. (1977). Breaking devoid from product marketing. Journal of Marketing, 41 (4)Sullivan, R.S. (1981). The service sector Challenges and imperatives for research in operations management. Jo urnal of Operations Management, 2 (4), 211-214Thomas, D.R.E (1978). Strategy is different in service businesses. Harvard Business Review, 56 (4), 158-165