Veranda Club Bar Operations

Operations Management

Project

Winter Session 2011

Table of Contents

General Information about the Company …………………………… 3

Order winners and qualifiers ……………………………………………….4

Key Processes ……………………………………………………………………..6

Service Design Matrix ………………………………………………………….9

Performance Measurement ……………………………………………….10

Service Approach ……………………………………………………………….12

Blueprint of Service ……………………………………………………………15

Points of View (System and Customer) ………………………………17

Quality Function Deployment …………………………………………… 19

Conclusion ……………………………………………………………………….. 20

Bibliography …………………………………………………………………….. 21

Appendix …………………………………………………………………………. 22

General Information about the Company

The company is a bar called “Veranda Club” and is located in “Mikri Venetia” in Mykonos. It is operating seasonally (6 months a year) and the services offered are as follows :

    - Alcoholic (Whisky, vodka and cocktails etc.) and Non-Alcoholic Beverages (fruit juices, coffee etc.)

    - Snacks (Toast, Sandwiches etc.)

Moreover, the target market is young people composed mainly of tourists coming from abroad as well as Greek tourists.

“Mikri Venetia” is the place attracting the majority, if not all, of the incoming tourists. Hence, there are many other bars that serve the existing demand. As a consequence, competition is harsh.

We will analyze in the forthcoming section the order winners and order qualifiers to get a better insight into the key drivers of the bar’s operations.

Order winners and qualifiers

Order winners are the dimensions that differentiate our bar from other bars nearby.

They are as follows :

      -   Price/Cost : We use quality ingredients for whatever we serve to the customer and this increases our overall cost per product served (orange juice for example) and decreases our profit margin. However, we still conduct a strategy of charging lower prices than our competitors (0.95 x their prices). This enables us to...