Operations management
Operations management
operation management
ABODY 1
we need to cover all the following operation management subject:
ch4 Forecasting
ch5 designe of goods and services
product life cycle
ch7 process strategy
ch8 location strategy
ch9 layout strategy
ch6 quality
ABODY 2
Operations Management – Project
Project Assignment
You will search and identify an organization which has faced or is
facing some major operational challenges. Once you have
identified ONE organization, you will perform a review of its
operational challenges and the strategy they adopted to solve the
issues. Next, you will give your critical analysis of the situation and
make some recommendations.
A good report will identify the issue or issues and will present the
solution. You may follow the following structure (however, please
don’t limit yourself to this structure only – experiment whichever
way it makes sense to you – This is what learning is all about).
i. Introduction
ii. Brief organization’s profile
iii. Statement of the problem
iv. Strategy adopted to solve the problem
v. Your analysis of the situation
vi. Conclusion and Recommendations
vii. References
The report, excluding appendices, should be not more than 2000
words in length. Please note that your work will be assessed
ABODY 3
against the following criteria:
1. Knowledge – Your work should show knowledge of the module
content.
2. Understanding – Your report should demonstrate an
understanding of the problem.
3. Insight – Your report should show an ability to analyze the
operations inside the organsiation and problems faced.
4. Clarity – Your report should be well structured and clearly
presented.
You should include a brief list of references to support your
observations and assertions.
Assignment Guidance Notes:
• ︎ Business Report Structure – 2000 words +/- 10%
• ︎ Size 12 font, spacing 1.5, include word count., Times
New Roman, Justified
ABODY 4
☑ Design of goods and services
☑ Managing quality
☑ Process and capacity design
☑ Location strategy
☑ Layout strategy
☑ Human resources and job design
☑ Supply chain management
☑ Inventory management
☑ Scheduling
☑ Maintenance
• ︎ This is a group work – Maximum of 2 students in one
group.
• ︎ Any work with more 35 % similarity index will be
assumed as FAIL.
ABODY 5
i. Introduction
ii. Brief organization’s profile
Company link :
https://bupa.com.sa/en
Bupa Arabia is one of the biggest company in Saudi Arabia and leading the medical
insurance. Bupa is Purely servies insurance company that focusing on Medical insurance
only. market share of around 45%
– bupa marketing is doing very well as the BUPA as brand has market !!! and many of
big web know coprportae ad insure with bupa. bupa value is by adding more services
and online services to customer
– Bupa offer a medical insurance and the design of this medical insurance we have three
segments one is corporate which is customise and second is SME WICH IS fixed
policy
☑ . – Quailty is one of most important element that we focus on as we have CCHI regulation
and an audit from SAMA. all the papers been check it by quality team to make sure
everything is fine
Mission and strategy
– Bupa competitive advantage is even we are more expensive then other insurance
company bur our core advantage we have faster response and differentioation
●
iii. Statement of the problem
there two problem
1-m the time to activeate the contract is 5 working days and CCHI
the government required 2 days one we received the first
ABODY 6
https://bupa.com.sa/en
instalment. so we facing delay to activate the contract and that is
operation problem we face as the capacity doesn’t meet the demand
2- The Schemes that we offer the insurance class has fewer hospital
provider comparing to competitors. that make as in pressure to
Persuade the client about it. there is a service design issue
iv. Strategy adopted to solve the problem
v. Your analysis of the situation
vi. Conclusion and Recommendations
vii. References
☑ Design of goods and services
☑ What good or service should we offer?
☑ How should we design these products and services?
☑ Managing quality
☑ How do we define quality?
☑ Who is responsible for quality?
Uniqueness can go beyond both the physical
characteristics and service attributes to encompass
everything that impacts customer’s perception of
value
ABODY 7
Flexibility is matching market changes in design
innovation and volumes
Reliability is meeting schedules
Timeliness is quickness in design, production, and
delivery
☑ Process and capacity design
☑ What process and what capacity will these products
require?
☑ What equipment and technology is necessary for these
processes?
☑ Location strategy
☑ Where should we put the facility?
☑ Layout strategy
• Customers – what products/services do customers want
• Forecasting – predicting timing and volume of customer demand
• Design – incorporating customer wants, manufacturability, and
time to market
• Capacity planning – matching supply and demand
• Processing – controlling quality, scheduling work
• Inventory – meeting demand requirements while managing costs
• Purchasing – evaluating potential suppliers, supporting the needs
of operations on purchased goods and services
• Suppliers – monitoring supplier quality, on-time delivery, and
flexibility; maintaining supplier relations
• Location – determining the location of facilities
• Logistics – deciding how to best move information and materials
☑ How should we arrange the
facility?
☑ How large must the facility be to
meet our plan?
ABODY 8
☑ Human resources and job design
☑ How do we provide a reasonable
work environment?
☑ How much can we expect our
employees to produce?
☑ On what criteria should we base the
location decision?
● Serviceability – the capability of an
organization to provide a service at an
acceptable cost or profit
3. What level of quality is
appropriate?
● Customer expectations
● Competitor quality
● Fit with current offering
● Every customer or item processed
receives essentially the same service
Service Design
● Begins with a choice of service
strategy, which determines the
nature and focus of the service, and
the target market
● Key issues in service design
● Degree of variation in service
requirements
ABODY 9
● Degree of customer contact and
involvement
ABODY 10
Running
head:
OPERATION MANAGEMENT
OPERATION MANAGEMENT
Institution Name:
Student’s Name:
Date:
Introduction
Bupa Arabia is one of the biggest companies in the Saudi Arabian The company leads the medical insurance field as it purely provides insurance services and its primary and only focus is on medical insurance. It the medical insurance are provided in accordance with the requirements set by the Council of Cooperative Health Insurance as well as the Saudi Arabian Monetary Authority. Bupa Arabia works in partnership with Bupa group which is a international healthcare company in which Bupa has 43.25% stake. The company originated in the year 1997, by then it was a combined venture with the Nazer group. Presently it has over 3 million clienteles include individual clients and various companies. Furthermore, the company advanced from a joint endeavor to a publicly traded organization. This happened in 2008 were the public was offered 40% Bupa Arabia’s shares in one of the greatest IPO deals in Saudi Arabia. The remainders of the shares were divided between the investment corporations overseas belonging to Bupa and the Nazer groups. However, in 2012 the investment corporations overseas acquired those shares from the Nazer groups and then they bought a significant amount of stake into the Medgulf Company. The company provides its customers with access to a widespread network of medical facilities in the provided regions. Moreover, it is acclaimed to offer the most inclusive health care offering in the entire health insurance market of the Saudi . Each of the services provided is aimed to cater an exact health care need.
Brief organization’s profile
Bupa Arabia’s profile
Bupa Arabia is a public joint stock company that was incorporated in 2008. It is located in Jeddah and it is involved in the insurance carrier industry. Bupa Arabia has 1300 emplyess and it makes $738.8 billion in 2020 revenue (Garg, 2012).
Business model- Bupa Arabia is a global healthcare organization, their business and processes are designed to local market settings, systems of healthcare and client needs.
Vision statement- “Taking care of the lives in our hands.””
Our values”: “Passionate, Caring, Open, Authentic, Accountable, Courageous, Extraordinary.” “Our mission”: “To be the Health and Care leader in Saudi Arabia by taking care of the lives in our hands” (Garg, 2012).
Strategic vision in 2020- “Bupa Arabia is the greatest healthcare company in the Arab world. It is designed to deliver on its purpose. When it touches you, whether you are an employee, a customer or a community member, you live a longer, healthier, happier life. We have written history” (Garg, 2012).
Mission statement- “To be the Health and Care leader in Saudi Arabia by taking care of the lives in our hands” (Garg, 2012).
Promise- “Your healthcare partner, providing expertise for life” (Garg, 2012).
Values- Passionate, open, accountable, extraordinary, courageous, caring and authentic.
Goal- “The goal is to help people live healthier, lengthier and contented lives, they do not have shareholders which makes their customers their prime focus. Bupa Arabia invests its profits towards delivering more and improved healthcare for its current and future customers “(Garg, 2012).
Objectives-
To provide better health care.
To provide health insurance, health provisions, dental provisions and insurance and aged care insurance.
To create value for people, customers, partners and the society.
To employ the resources available to create value.
Competitors–
Statement of the problem
in Bupa we have have three categories one is the corporate which is responsible for the the companies that have more then 500 employees and and SME small and medium enterprise in this department we have two main segment the contracts less then 100 emolyess and above 100 emplyess and each one of this segment serves by different agents. thierd we have the E-commrace which is totally an online services.
the Issue is in the E-commarce as this department have the account less then 20 Employess. but the client keep complaints about the issues the facing while they using the online services or purchasing the medical insurances and the products its not very clear to them the make them want to speak to sales representative.
The schemes provided for the insurance class contains fewer hospital providers compared to that of its competitors. This service design issue makes it harder to convince clients to consider the organization instead of its competitors
Strategy adopted to solve the problem
In The E-commerace products the customers want more options of medical insurance class.
Bupa doing very will regarding to competing on differentiation as they always come with new innovate ideas and add more services. the main issue is to competing on response that will allow Bupa to answering the client inquires and describe the products form them as this segments ususally don’t have a knowledge or experience as they below 20 employees and there are many of them startup business.
quality –
process and capacity design – one of the issues there is demand very high but due to lack of communication between the client and Bupa focusing only to sell it online there many customers switch to competitors as they find easy to communcticte with sales representative.
location – opening a branch or allowing the customers to visit the office that will make more efficient and easier
scheduling – meet immediate customer demand as there are dealy
forecasting – Bupa should forecast based on sales and the numbers of pushing that didn’t complete due to technical problems or the customers just give up trying to use the online.
service redesign as there are manium requirement from CCHI that all the medical insurance meets. Bupa should add more value ad re-design the products to meet customers want and needs. one of most element is service delivery system which bupa have to focus to development
Quality – objective is to make sure customer satisfied. and they should adopt continuous improvements service. also, by using NPS Net Promoter Score, measures customer experience of your brand and provides the best metric to anchor your customer experience that will measure the quality of service and purchasing experience.
Additionally, the company has developed of the most effective health care program knowns as Tebtom through the adaptation of global guidelines and effective healthcare practices; such innovativeness and flexibility has provided the edge needed to advance its competitors (Ali, 2018).
Your analysis of the situation
My analysis of Bupa shows the company has grown and expanded significantly during the past six decades. Bupa’s product and policy diversity is quite high and it is thriving in the number of its employees and how innovative its culture is. The company has a huge geographical spread and it is wide reaching with a wide range of loyal customers that have stuck around due to strong management, focused measures towards gaining customers and a good brand worth. Although it has its downfalls in relation to the way it structures the cost of its products (relatively high) and its online presence which is stagnant. Bupa’s operational challenges have been costly and brought about due to the prioritization of profits. Since then the company has worked towards coming up with creative and strict policies and procedures that will eradicate such problems. If Bupa want to be more successful it needs to use its solid brand name for advanced growth in the healthcare industry in order to expand its operations in other unchartered territories. Bupa like any other company has an intense competitive field but is able to fight against it through its continuous innovative ideas. Although the healthcare industry is susceptible to stagnant growth, Bupa has been able to flourish which is evident by the annual revenue it makes of $2.56billion
Conclusion
To summarize, Bupa Arabia is the most profitable and thriving healthcare providers in all of Saudi Arabia, it is focused on providing health care to a vast number of people in order ensure they live happier and healthier lives. In accordance to the world medical guidelines Bupa has incorporated the best practices and has managed to culminate the induction of Tebtom. Although it has gone through quite a few operational set-backs such as; the competitive world and the way it responds to competitors, managing health care facilities and contains infections. It has been able to work past such obstacles through creative and strategic approaches in relation to its products, services and policies.
Recommendations
Competing on response – Bupa should have quickness in productions and delivery the policy.
Bupa should regularly perform SWOT analysis in order to analyze its strengths and weaknesses so the proper strategy can be put in place to handle any potential issues they may face.
Since the company has prevailed in finding the best innovative practices in the industry they should use this core strength and come up with long-term solutions to address their health cover and health care services in their various facilities.
The Firm can raise its credibility by engaging with their clients in a more transparent manner.
The firm should also consider engaging in joint ventures for expansion into the supply chain thus contributing towards organizational growth.
REFERENCES
Akhtar, M. H. (2018). Performance analysis of Takaful and conventional insurance companies in Saudi Arabia. Benchmarking: An International Journal.
Ali, A., & Tausif, M. R. (2018). Service quality, customers’ satisfaction, and profitability: an empirical study of Saudi Arabian insurance sector. Investment Management and Financial Innovations, 15(2), 232-247.
Bupa Arabia. (2019). Company fact sheet Arabia. Retrieved from https://bupa.com.sa/en/investor/company-fact-sheet
Garg, A. (2012, December 28). Bupa Company Profile. Retrieved from https://www.academia.edu/34991226/Bupa
NAUSHAD, M., FARIDI, M. R., & FAISAL, S. (2020). Measuring the Managerial Efficiency of Insurance Companies in Saudi Arabia: A Data Envelopment Analysis Approach. The Journal of Asian Finance, Economics, and Business, 7(6), 297-304.
Singh, D., & Al Mahrooqi, Y. Technical Efficiency of the Insurance Companies: Evidences from Kingdom of Saudi Arabia.