2a Why is it important for the Operations Manager to forecast demand at Cutey Barber Salon? 2b. Use trend projection to forecast demand for haircuts and hairstyling for 2022. 2c Calculate the utilisation rate at Cutey Barber Salon in 2021. 2d Describe two techniques that can be used to increase the utilisation rate. 2e Should Cutey Barber Salon sell hair products?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Cutey Barber Salon
Cutey Barber Salon is a trendy barber salon that is located in a densely populated city called Maple.
Demand for the services offered by the salon is fairly high. It offers services such as haircuts, hair
styling, scalp massaging and conditioning treatment, straight razor and wet shave, beard sculpting,
facials and hair colouring. In addition to these services provided, the salon sells premium hair products
to customers. The salon has the ability to produce a maximum of 20,000 haircuts and hairstyling per
year. Demand for haircuts and hairstyling over the last five years can be seen in the following table:-
Year Demand for haircuts
and hairstyling
2017 11,500
2018 12,200
2019 13,400
2020 14,000
2021 14,500
Although the business does not have a written vision and mission statement, it is clear in the minds of
management what they want to achieve and what they would like to be in the future.
Currently, customers can walk in at anytime to be served. At times, customers have to wait in line for a
long time. This is creating some challenges for the operations manager. He needs to overcome this
challenge in order to utilize his resources more efficiently.
Competition in the hair salon business is intensifying. New firms are rising up and existing firms are
expanding their operations. Increasing competition is gradually eating away profit margins since costs
are increasing and customers are demanding lower prices for services. Management has to find some
efficient way to add value to their products and to overcome the competition.
QUESTIONS
2a Why is it important for the Operations Manager to
Salon?
2b. Use trend projection to forecast demand for haircuts and hairstyling for 2022.
2c Calculate the utilisation rate at Cutey Barber Salon in 2021.
2d Describe two techniques that can be used to increase the utilisation rate.
2e Should Cutey Barber Salon sell hair products?
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