OPERATION MANAGEMENT MINI PROJECT

PB602 OPERATION MANAGEMENT PROJECT AND PRESENTATION

Diploma Business Studies

Lecturers name: Puan Azwira binti Mahmud

Students name and matric number:

NAMEMATRIC NUMBERTAN LING SHY18DPM11F1051NOR HAZIRA BT BAHARUM18DPM11F1061TENG ZHI PENG18DPM11F1071Class : DBS 6BORGANIZATION PROFILEOrganization: MBO Cinema Alor Star MallType of Business: Private companyWebsite: http://www.mbocinemas.com/E-mail Address: feedback@mbocinemas.comAddress: Alor Star Mall, Alor Star, Lot 1-23, 1st Floor Alor Star Mall, Kawasan Perusahaan Tandop Baru, 05400 Alor Star, Kedah.Products: Cinemas, Film distributionNo. of Halls: 4Special features: 2 3D HallsSeating Capacities : 618Shareholders: Navis Capital Partners Ltd (Navis) Tan Sri Abdul Rashid Abdul Manaf

ORGANIZATION BACKGROUNDThe cinema at Alor Star Mall opened on 15 November 2008 at the Tandop Baru industrial area, former name is BIG Cinemas Alor Star.

In 24 September 2012, the BIG Cinemas and MBO Cinemas were acquired by the Navis Capital Partners, with the merging, BIG Cinemas Alor Star Mall is now under the MBO Cinemas brand.

Situated strategically at the first floor of Alor Star Mall in Kedah, the four-hall cineplex is able to house 618 moviegoers at one time.

All MBO cinemas have concessions that sell popcorn, soft drinks, Twisties and other snacks.FORECASTINGQuestion:Cinema Alor Star Mall, MBO want to make a correct forecast on the demand of number of ticket sold for January 2014. From six months of the sale record in 2013, cinema have collected data helds for the requested period preceding the sales January, February, and March 2014.

a) Forecast sales volume for January 2014 using each of the following method : i) Naive approach ii) 3 months weighted moving average iii) A weighted average using 30% for April, 35% for May, and 35% for June. iv) Exponential smoothing where alpha = 0.20. b) Calculate the value of coefficient correlation.

MonthActual Demand (unit)Forecast Demand (unit)1114900120,0002114940110,0003114000115,0004113000120,0005112400113,0006112500120,000Answer :

i) Naive approach = 112500

ii) 3 months weighted moving average

= 112,633.33 units

iii) A weighted average =

= 112, 615 units FACTOR THAT CONTRIBUTE TO THE FORECASTING RESULTS AND SUGGESTION TO THE COMPANYFACTOR SUGGESTION TO THE COMPANYThe movie broadcast by the cinema sometimes does not meet customer needs. MBO Cinema Alor Star Mall does not target market by geographic segmentations (their location) , demographic/socioeconomic segmentation (gender, age, household size), psychographic segmentation (similar attitudes, values, and lifestyles) Example, MBO Cinema Alor Star Mall mostly broadcast malay movie but not other languages movie as the population of people who live nearby the Alor Star Mall are mostly chinese.MBO Cinema Alor Star Mall should target the market based on 4Ps of marketing such as Product (or Service), Place, Price, Promotion to increase the profit of the company.

MBO Cinema Alor Star Mall should broadcast more difference language movie.CAPACITY PLANNING

Queuing System of the cinema:CAPACITY PLANNINGQuestion:MBO Cinema Alor Star Mall service counter has two workers on duty daily. The cinema operates 12 hours per day. The cinema is open 6 days per week. Average customer qrrival time is 10 minutes meanwhile one worker can only treat a customer within 3 minutes per person.

1)Rate of arrival and rate of services2)Probability of there is no customers in the service system3)Probability that the customer will wait for service (rate capability)4)The average number of customers in the system5)The average time taken by customers in the system6)The average number of customers in waiting line7)The time taken by customers waiting in line

CAPACITY PLANNINGQuestion:CAPACITY PLANNINGQuestion:CAPACITY PLANNINGQuestion:CAPACITY PLANNINGQuestion:CAPACITY PLANNINGQuestion:CAPACITY PLANNINGQuestion:CAPACITY PLANNINGQuestion:LAYOUT OF MBO CINEMA ALOR STAR MALLTypes of Layout of MBO Cinema Alor Star Mall is process-oriented layout.The layout of MBO Cinema Alor Star Mall are flexible and capable of handling a wide variety of products or services. Example, food and beverage such as popcorn and ticket counter services.Scheduling of broadcast of movie are difficult and setup. The layout of MBO Cinema Alor Star Mall engages assembling mutually in one section based leading their operational kind that is, sales of ticket, broadcast of movie and sales of food and beverage.The layout of MBO Cinema Alor Star Mall is handiness for inspection and supervision. There are a manager who inspect and supervise the operation of cinema.The layout of MBO Cinema Alor Star Mall can handle varied processing requirements. Example, the customer can choose whether buy tickets only, or buys food and drinks only, or both.LAYOUT TECHNIQUE AND LOCATIONNew Layout:

REASON WHY CHOOSE THE LAYOUTIt is strongly recommend that this company need to choose another layout to ensure smooth flow of sales of tickets, sales of food and beverage, flow of customers and information through the operation of cinema.

To ensure operation of cinema are running effectively, efficiency and profitability.

MBO Cinema Alor Star Mall are suggest to add a touch and go barcode ticket counter to prevent wasting of online ticket customers time and eliminate bottlenecks at the ticket counter.

Customer can purchase their barcode tickets online via any of the mentioned payment methods then bring along the barcode to the touch and go prepaid barcode ticket counter and then enter directly to the cinema.REASON WHY CHOOSE THE LAYOUTBesides this, the food and beverage store need to change to Hexagon shape to make sure ordering sequence of customers Queuing System and make the company more profitability.

The Hexagon shape food and beverage store can ease the customer to buy the food and beverage again after watching the movie.

Moreover, Hexagon shape food and beverage store design can incorporate safety and security measures so that customers of ticket counter and customer of food and beverage store cannot collide each other.ADVANTAGES AND DISADVANTAGES THAT IMPACT TO THE NEW CINEMA LAYOUTAdvantagesDisadvantagesFacilitate the entry, exit of customers.Waste of space, require large aisles for customers to move back and forth.Eliminate bottlenecks.Redundant movement of customers and workers because the distance between ticket counter and food and beverage store are more far.Provide a visual control of operations or activities. Easier the supervision activities.

Cannot facilitate communication and interaction between workers of ticket counter and workers of food and beverage store.Use of Touch 'n Go prepaid bar code scanner can save time and ease the queue congestion of online ticket buyers.Workers of ticket counter may experience much "idle time" if most the customer are online prepaid barcode tickets buyers. Incorporate safety and security measures. Customers of ticket counter and customer of food and beverage store cannot collide each other when they are moving.Improved flow of information or people.Maximize profits.Referenceswww.mbocinemas.com