SCM3006 Operations and Supply Chain Management Group Project Semester 1, 2016-17 Learning outcomes The main purpose of the group project is to have you explore, in modest depth, the operations function of a business in Hong Kong in order to connect real-world activity with textbook theory and principle. The second purpose is to acquaint you with strategies for developing and managing high performing teams. On completion of the project you should: 1. have developed the transformation process for a product (good and/or service) and described how the product is designed, produced and delivered to the customers. 2. have applied operations management concepts, frameworks and tools to support the development of operations strategy and operating system for the business. 3. have applied creative and analytical s******s to solve business problems. 4. have learned to manage a team in the project work. In order to achieve these goals, your group is expected to develop a proposal of starting up a food truck which makes and sells nutritionally healthy food (ready-to-eat food or drink). The HKSAR Government has recently published guidelines on operating food trucks. General information can be found here: http://www.tourism.gov.hk/english/foodtruck/foodtruck_app.html Specifically, your group needs to complete the following activities. 1. Research, discover and document operations of similar businesses. Through research and observations of similar businesses, and by asking questions and gathering product catalogs, process flowcharts, service blueprints, job descriptions, facility layouts, operation plans, photographs, videos, verbal explanations, or similar materials from various sources, you will determine how your competitors perform their operations activities. In short, you will discover and identify the inputs, value adding transformation processes, and outputs of competing businesses. 2. Develop, describe and analyze your business’s operations strategy and operating system. Specifically, your group has to: 1. identify your business’s target customers and their needs. 2. develop your business/competitive strategy. 3. identify and justify your operations strategy in terms of competitive priorities using the concept of order winners and qualifiers. 1 4. develop and define your products with drawings, bill of material, explicit job instructions for moments-of-truth, etc. The products should be new in the market and address the needs of your target customers. 5. develop and justify production/service process and map the process with flowcharts, process charts, service blueprinting, etc. 6. conduct process analysis and determine the required capacity (e.g. number of machines and staff), throughput rate, and other process performance requirements as well as the unit cost of your product with reference to different daily demand estimations. 7. determine the truck size (i.e. width and length) and develop your layout with justifications. Staff paths and the size and position of kitchen, work bench, cashier, (if there are), storage, machines, equipment and other production resources are illustrated by diagrams. If additional storage space is needed, please include accordingly. 8. develop and justify inventory management policy such as type and amount of inventory and replenishment practices. 9. determine product price, estimate monthly sales revenue and operating costs, break-even point, and project annual financial return from your investment. 2. Submit your report in writing to the Instructor: Each group is required to prepare a written report and submit the soft and hard copy on the presentation day. The report should present the details of your proposal. In your report, make a concerted effort to connect textbook operations concepts with “real world” practice. You should also briefly describe the research methodology you followed and provide documentary evidence of research results. The maximum word length is 3500 words. Useful information can be presented in the Appendix e.g. photos, details of interview if any. The file name and format should be as follows: SCM3006-L01-group1.docx. Before submission, the report should be examined by the “VeriGuide” system. It takes time for the “VeriGuide” system to process your report. Don’t wait till the last minute to submit the report to the system. For details, visit https://academic.veriguide.org/academic/login_HSMC.jspx. Referencing You need to use Harvard or APA format to cite ALL sources of the information you used in the References section of the PowerPoint file and report. Read some online resources on how to cite references correctly. E.g. http://libguides.uwp.edu/content.php?pid=******&sid=******* http://library.open.ac.uk/documents/Harvard_citation_hlp.doc http://owl.english.purdue.edu/owl/resource/560/01/