MGT 6206 MAY 2018 Group Assignment PM2 Score Members Name ID Program Section Zhan Mingzhu

MGT 6206 MAY 2018
Group Assignment PM2
Score Members
Name ID Program Section
Zhan Mingzhu (Dual)
Ruan Hanwei (Dual)
Wang Bei (single)
Su Dawei (single) I17013504
I17013744
I17013751
I17013858 OM PM
Group name PM2 Group number 4
Due date 26th/July/2018

Zhan Mingzhu
Ruan Hanwei
Wang Bei
Su Dawei

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Marking scheme for Group Assignment (Report)
Group num (as shown in BB) Your assigned OM function Your selected entity
PM2 Job Design Gong Cha
Name Student ID Peer Evaluation score
1 Zhan Mingzhu I17013504 100%
2 Ruan Hanwei I17013744 100%
3 Wang BeiI17013751 100%
4 Su Dawei I17013858 100%
Guide/ Scheme Feedback
Formatting Availability of this Marking scheme as the second page of your report
Good design for table of content
cl ear indication of Marking Scheme exacts “requirement” as headings in your report/
accurate page numbering/availability of appendix for citation and attachment (if apply)
Availability of descriptive title for print screens, pictures, tables, graphs, figures or illustration (if apply)
Adhere to submission guidelines and correct filename
Adhere to page limitation for each chapter
Adhere to standard font and spacing requirements (Arial 12 and 1.5 spacing for write up) (Arial 12 and single spacing for tables/ illustrations) Mark /10%
Chap 1: Lit review & Background information Prepare a write up to address the following;
Literature review of assigned OM function
List and discuss your review/findings which deemed relevant to your assigned OM function as well as relevant to this assignment
Background information of selected entity
Briefly describe background information of your selected entity, which is deemed relevant to this assignment b)In one sentence, state ONE (1) product or service offered by your selected entity that you wish to analyze for the entire assignment. Describe this selected product or service. c) Describe with illustration the activities/ processes deemed important to convert input into output
Grading criterion
Addresses all necessary items
Reviewed literature is well organized and is deemed targeted and relevant to support discussion in subsequent chapters
Discussion related to the entity should be concise and include necessary scope to support discussion in subsequent chapters.
Max 2.5 pages –including illustrations Mark /10%
Chap 2: Aspect of OM function Prepare a write up to summarize/ describe the following;
“Aspects” of current operation
Discuss the following “aspects” of your assigned OM function with respect to your selected entity or selected product or service.

If your OM function is Job Design – Dimension of Job Design
If your OM function is Inventory – Functions of inventory
Grading criterion
Discussion on current “aspect” is deemed not trivial and demonstrate mastery of concept discussed in class. Discussion should be well applied towards selected entity. Discussion has to be concise and clearly reveal current operations practiced by the selected entity.

Justification of Competitive Advantage demonstrate good understanding of entity’s business environment and deemed aligned with class discussion
Max 3 pages –including illustrations Mark /25%
Chap 3: OM recommendation Prepare a write up to summarize/ describe the following;
Recommendation to your selected entity
Summarize your recommendation in one sentence
Discuss your recommendation in detail
Justify that your recommendation would benefit your selected entity or your selected product or service
Grading criterion
Recommendation, discussion and justification
Only ONE (1) recommendation is required
Your recommendation must be within the scope of your assigned OM strategic function and is deemed as not trivial
Your recommendation or justification must utilize “form of analysis” that required relevant “data”. Data utilized by “form of analysis” shall be well organized, make sense and deemed related to this assignment
If apply, use illustrations and tables aid discussion of your recommendation
If apply, state and discuss any assumption made in your recommendation
“Benefit” is well justified and deemed not trivial
Data may take many form. Data can be induced or collated from; secondary data from internet, observation, survey, interview or annual report, via any tool deemed appropriate. Append all raw data within appendix, if applies. Max 7 pages – including illustrations Mark /55%
Table of Content
TOC o ;1-3; h z u HYPERLINK l ;_Toc520357172; Chap 1: Lit review ; Background information PAGEREF _Toc520357172 h 1 –
HYPERLINK l ;_Toc520357173; 1.1 Literature review of assigned OM function PAGEREF _Toc520357173 h 1 –
HYPERLINK l ;_Toc520357174; 1.1.1List and discuss your review/findings which deemed relevant to your assigned OM function as well as relevant to this assignment. PAGEREF _Toc520357174 h 1 –
HYPERLINK l ;_Toc520357175; 1.2 Background information of selected entity PAGEREF _Toc520357175 h 1 –
HYPERLINK l ;_Toc520357176; 1.2.1Briefly describe background information of your selected entity, which is deemed relevant to this assignment. PAGEREF _Toc520357176 h 1 –
HYPERLINK l ;_Toc520357177; 1.2.2 In one sentence, state ONE (1) product or service offered by your selected entity that you wish to analyze for the entire assignment. Describe this selected product or service. PAGEREF _Toc520357177 h 2 –
HYPERLINK l ;_Toc520357178; 1.2.3 Describe with illustration the activities/ processes deemed important to convert input into output. PAGEREF _Toc520357178 h 3 –
HYPERLINK l ;_Toc520357179; Chapter 2: Aspect of OM function PAGEREF _Toc520357179 h 4 –
HYPERLINK l ;_Toc520357180; 2.1Discuss the following “aspects” of your assigned OM function with respect to your selected entity or selected product or service. PAGEREF _Toc520357180 h 4 –
HYPERLINK l ;_Toc520357181; 2.1.1 Job Specialization PAGEREF _Toc520357181 h 4 –
HYPERLINK l ;_Toc520357182; 2.1.2 Job Expansion PAGEREF _Toc520357182 h 4 –
HYPERLINK l ;_Toc520357183; 2.1.3 Incentive System PAGEREF _Toc520357183 h 5 –
HYPERLINK l ;_Toc520357184; Chapter 3: Recommendation to selected entity-Gong Cha PAGEREF _Toc520357184 h 7 –
HYPERLINK l ;_Toc520357185; 3.1 Summarize your recommendation in one sentence PAGEREF _Toc520357185 h 7 –
HYPERLINK l ;_Toc520357186; 3.2 Discuss your recommendation in detail PAGEREF _Toc520357186 h 7 –
HYPERLINK l ;_Toc520357187; 3.3 Justify that your recommendation would benefit your selected entity or your selected product or service PAGEREF _Toc520357187 h 9 –
HYPERLINK l ;_Toc520357188; References PAGEREF _Toc520357188 h 11 –

Chap 1: Lit review ; Background information
1.1 Literature review of assigned OM function1.1.1List and discuss your review/findings which deemed relevant to your assigned OM function as well as relevant to this assignment.Findings Source
The main character of Job Design and its definition. Wikipedia
All kinds of beverage products of Gong Cha. YouTube and Google
Small and medium beverage shop flow chart. Google
Job design articles (Kim, ji-hyeon, 2016)
(Agola and Stefaniak, 2017)
(Schmitz, 2012)
1.2 Background information of selected entity1.2.1Briefly describe background information of your selected entity, which is deemed relevant to this assignment.The idea or concept behind the Cong Cha was the provision of the drinks to the consumers. Initially, when the company started the business, the company have a smaller vision, and the target was also less. With the track of time the company grew and diversified its product and branches as well (Bartleby.com, 2018). Organizational and Job Design type was as follow: They have an extremely simple form of structure in the beginning and they had the centralization system in the company.

For Labor Standards,there are some basic labor standards which companies should follow and these standards are set at the international level: The first standard refers to that there should be no labor who falls into the category of bounded Moreover, the labor should not work because of being forced (no forced labor). Second, the children who are under age should not be hired, and child labor is strictly prohibited. Companies who are involved in such activity can face serious lawsuits and also lose their reputation in the corporate world and in the community. Third, the concept of equal employment opportunity for every employee should exist.

1.2.2 In one sentence, state ONE (1) product or service offered by your selected entity that you wish to analyze for the entire assignment. Describe this selected product or service.
Gong Cha has launched over 20 Healthier Choice Symbol-certified drinks which make up the menu.

Figure 1: Part of the menu from Gong Cha
Source: Google images1.2.3 Describe with illustration the activities/ processes deemed important to convert input into output.
Figure 2: Input convert to output
Source?Self-built
Gong Cha divides the work into four steps. First, the customer orders at the front desk, and the production staff receives the request from the guest and starts producing drinks. Next, the staffs prepare the fruits and materials, and put the machine to stir, finally they package drinks for the customer.

Usually, there are four staffs are assigned to the job in one shop. In some critical situation, it needs minimum two staffs in the shop to run business.

Chapter 2: Aspect of OM function2.1Discuss the following “aspects” of your assigned OM function with respect to your selected entity or selected product or service.2.1.1 Job SpecializationJob Specialization refers to a management concept that divide labor in accordance to unique tasks. Each individual or group is only accountable for the tasks assigned.

Gong Cha applied job specialization in the operation process. Gong Cha divides the work into four steps. The first is customer’s order. The customer orders at the front desk, and the production staff receives the request from the guest and starts making. Next, prepare the fruits and materials, and juice the materials (fruits, etc.), and finally package the prepared drinks and hand them to the customer.

Gong Cha has set up a special collection and order machines and specialists at the front desk to improve order efficiency and avoid forgetting collections. In terms of the production process, Gong Cha usually has at least two professionals, one for material preparation, such as fruit and sugar, and the other one for squeeze the fruit for juice and put other materials. Finally, a person will seal and pack the tea. This reflects the job specialization.

2.1.2 Job ExpansionThe core concept of Job Expansion is to add more variety to a job. It produces greater flexibility in labor planning and better quality of work life for operators.

And there are following three ways to add more variety to job expansion, job enlargement, job enrichment and job rotation.

For Gong Cha, it mainly used job rotation.

Before the employees start their work at Gong Cha, Gong Cha will train employees to work in over one position, so that employees can rotate different types of working skill at work. At the peak period of Gong Cha from 11:00 to 14:00, there are usually 3 people waiting in each store, and 5 people waiting at 17:30-19:30. The ordering employee can help the employee of the production process prepare materials or package after the order is completed. Similarly, employees of the production process can also place orders and take place of cashiers if there are special circumstances. This increases the flexibility of the job and improves the quality of the work.

2.1.3 Incentive SystemThe incentive system is a mechanism that motivates individuals to work as part of an organization and for the benefit of the organization.

Gong Cha applied incentive system in the operation process:
Classification Mastery of knowledge and work skills
Intern attendant New employee who just entered
One star attendant Master the work of a position through simple training
Two star attendant Master the work of two positions
Three star attendant Master the work of two positions and have certain promotional skills
Four star attendant Master the skills of each position, can effectively deal with customer response issues and with ordering promotion skills
Five star attendant Master the promotion skills, be able to deal with customer response problems in a timely manner, calm customer sentiment, basic front-end management courses, master each job position at the front desk, propose effective work suggestions for front desk work or propose effective solutions for fast food store marketing
Gong Cha uses a star rating system to judge the performance of employees. After the front desk staff has a star rating, if there is no big mistake, no star drop. The second, third and fourth stars will be assessed monthly, and the employees who have reached the standard will be given a rising star. If the assessment does not reach the original star rating in the month, the verbal explanation will be given. The following month has not reached yet, will be given a star reduction treatment. All employees are raised by 50 Yuan per liter per month. If the employees below four stars also propose to raise the efficiency of company or the effective marketing plan, monthly salary will be raised for 50 Yuan also.

Chapter 3: Recommendation to selected entity-Gong Cha3.1 Summarize your recommendation in one sentenceThe recommendation is to establish incentive system to encourage operators to achieve production goals.

3.2 Discuss your recommendation in detailGong Cha always located on a crowded business district. The production rate of drinks has a direct impact on store revenue. This recommendation of incentive is based on the production rates and set the productivity standard on operators. The operators in Gong Cha include all the shop assistants who are receive customer and prepare drinks to customers.

The incentive system is if shop assistances can serve one customer in 5 minutes they will get bonus that the expected rate is 6 minutes one customer which means assistances increase their speed 16.7%.

The reason why the standard time is 6 minutes one customer is based on the time study. Standard time in this case is the acceptable work rate derived from observations on current operators in Gong Cha performing the job to make drinks to customers and is explained as follows:
The job elements are divided on four steps through observations of the whole process start on the customer come from the customer leave. As it is showed on figure1, the four steps are order, prepare fruits, stir juice and wrap. In order to make the standard time more accurately, each step was observed ten times and use the average time of this step to calculate.
The operator for order is worked for one year and familiar with his job, so his performer rate was set as 110%. The operator for preparing fruit is even more familiar with his job as he has already work for four years, so the performer rate of him is 120%. But the operator for wrap is only work for 3 month, in that case only 90% performance rate is set for her. While the operator for stir juice is just performer as normal not that fast and that slow, so 100% performance rate is suitable for her.

Figure1: Time study observation sheet on Gong Cha shop
Source: Self-built
Notes:
t is Average observed time =
PR is the Performance rating
NT is the normal time = Average observed time Performance rating
From the time study sheet the total normal time can be calculated from adding the normal time for each element to develop the total normal time.
Total normal time (seconds) = 62.7+87.6+91+45.9= 287.2
In order to make the standard time further accurately, the allowance factor was considered. Three main factors such as personal time which contains the time allocated for use of restroom, lunch, rest, break time; delay allowance which contains the wash or maintain of the machine after done a certain number of drinks; and the fatigue allowance which is due to shop assistance will feel tired after few hour of work. As a result, the allowance rate was set as 20%.

Standard time = = = 359 seconds = 6 minutes
3.3 Justify that your recommendation would benefit your selected entity or your selected product or serviceIf the recommendation of incentive system is applied by the operation manager of Gong Cha the operators is more likely to achieve the production goals which can increase the revenue of the shop. The following will explain and analysis how much additional revenue the shop will gain from this recommendation.

From the observation of the drinks shops around Gong Cha, two phenomenon was show:
There are three other drink shops around Gong Cha shop, and the number of customers on line waiting for drinks always similar about 3-4 persons 11:00 am-2:00pm, and about 5 persons waiting 5:30pm-7:30pm.
As for normal time except 10:00 am-2:00pm and 5:30pm-7:30pm, in other 5 opening hours there is seldom customer waiting on line. However, customers prefer to buy drinks which shop service faster. One of the shops around Gong Cha who serves about 5 minutes one customers sell 15% more than Gong Cha in this period of time.

Based on phenomenon1 it can be concluded that the number of sales at HYPERLINK "C:/Users/ChristopherRuan/Desktop/javascript:void(0);" fastigium period time ( 11:00 am-2:00pm and 5:30pm-7:30pm )is depend on the capacity as this period of time there always are customers waiting in the line.

Figure 2: System before accept the recommendationSource: Self-built
As it is showed on figure 2, the cycle time before applied the suggestion is 91 seconds. The capacity of the HYPERLINK "C:/Users/ChristopherRuan/Desktop/javascript:void(0);" fastigium period time = time unit / cycle time=5 hours/91 seconds =197.8

Figure 2: System after accept the recommendation
Source: Self-built
Due to the incentive system, the cycle of the system change to 75.8 seconds. The new capacity = 5hours /75.8seconds =237.5. It can be seen that 39 extra customers increased in the fastigium period time one day after accept this recommendation.

Based on phenomenon 2, 15% more customers are increased due to the service quality on speed in normal period of time. If recommendations are taken, improve the service speed of each customer from 6 minutes to 5 minutes, about 20 extra customers can be gained in normal period of time.

In conclusion, if this recommendation is accepted by the manager on Gong Cha, it will increase 59 customers one day, which means the sales can be increased 20% from it.

ReferencesKim, ji-hyeon (2016). Effect of job characteristics and job environment of modelists on the job commitment and job satisfaction. Journal of Korea Design Forum, null(51), pp.51-65.

Agola, E. and Stefaniak, J. (2017). An Investigation into the Effect of Job-Aid Design on Customer Troubleshooting Performance. Performance Improvement Quarterly, 30(2), pp.93-120.

Schmitz, P. (2012). Job Design with Conflicting Tasks Reconsidered. SSRN Electronic Journal.

En.wikipedia.org. (2018). Job design. Online Available at: https://en.wikipedia.org/wiki/Job_design Accessed 25 Jul. 2018.

Youtube.com. (2018). Gong Cha – YouTube. Online Available at: https://www.youtube.com/results?search_query=Gong+Cha Accessed 25 Jul. 2018.

Bartleby.com. (2018). Online Available at: https://www.bartleby.com/essay/Gong-Cha-Whitespace-Marketing-Plan-F3FCRCJD386TS Accessed 25 Jul. 2018.