Analysis of Cadbury World’s operation management

By | April 16, 2014

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Operations Management in Cadbury World

1.        Introduction of the Cadbury World

With more than 100 years history, Cadbury has been a famous English manufacturer of the chocolate product (kraftfoodscompany.com 2010), to promote the company brand as well as the meeting the outsiders’ wonder of the history and knowledge regarding the production of the chocolate, the entertaining facility Cadbury World was created. This study will focus on the operation management of the company.

2.        The process

2.1    Micro and Macro processes

It is believed that micro- processes have been the purview of application developers with objects orientated programming and the like; while macro- processes have been developed by integration specialists using tools such as the business analyst (Thompson 2007). Below are four micro processes in the Cadbury World:

2.1.1            Information center (front desk)

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2.1.2            Chocolate production in demonstration area

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2.1.3            Retail

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2.1.4            Restaurants

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2.2    The process flow chart

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Chart 1 The process flow chart suggesting customer flow in Cadbury World

 

There are two major advantages of this process chart in term of managing the customer flow from their initial arriving and the end of the journey. First of all, the general one way route (from exhibition area to demonstration to retail to restaurants) ensures that the majority of the activities and events would be visited by all customers because they have this only one way to walk through; secondly, the location of these areas also follows

 

2.2.1            Capacity for parking

ProcessCapacityCapacity in number of visitors
Parking for cars484
Car3 people per car (average)484*3=1452
Parking for Coaches24
Coaches35 people per Coach (average)24*35=840
Total2192

 

And because the average period of stay is about 2.5 hours, therefore the maximized capacity for parking in term of number of visitors will be:

 

Mon-Sat           2192*(7.5/2.5)=6576

Sun               2192*(6/2.5)=5260

 

2.2.2            Exhibition area

 

Because 15-20 people will be allowed to go into the areas by each 2.5 minutes, hence, based on the average of 17.5 people per 2.5 minutes, thus

 

Capacity for exhibition area = 17.5*(60/2.5)=420 people per hour

 

2.2.3            Marie Cadbury Room

 

Because 23 people are allowed for each show, and with the reduced length in the show from 9 minutes to 5 minutes, hence,

 

Capacity = 23*60/5=276 people per hour

 

But there are also situations in which capacity could be increased: (a) increased supply of facility, equipment and labor; (b) enhanced handling efficiency; (c) service time extension.

 

2.2.4            Packaging Plant

 

Since groups are usually have 30 people, and it takes on average 10 minutes for this process, hence,

30*60/10=180 people per hour per group

 

2.2.5            Demonstration Area

 

Since there are normally 15 people in each group, and time spent for each group handling is 17 minutes, therefore the

 

Least capacity = 15 * 60 / 17 = 53 people per hour per group,

 

If there should be 9 groups, then the total capacity per hour would be,

53*9=477

 

In case the visitors only graze and walk away quickly, the average time could be reduced to 11.5

 

And thus,

New capacity=15*60/11.5=78 people per hour per group

 

 

2.2.6            The shop

 

Since there are three tills with the average handling time of 15 seconds,

 

Capacity = 3600 * 3 / 15 = 720 people per hour

 

2.2.7            The restaurant

 

Since there are 169 seats with average stay length being 25 minutes, thus,

 

Capacity = 169*60/25 = 406 people per hour

 

2.2.8            Coffee and Ice Cream Parlour

 

Capacity = 46 seats * 60 minutes / 17 minutes (average stay length) = 162 people per hour

 

3.        Analysis of Cadbury World’s operation management

 

3.1    Varied capacity to respond to changes in demand changes

 

 

Based on the fact that there were 185,000 visitors Mid August to end of December 4.5 months, hence the estimated full year visits could reach around 493,333 per year (185,000*12/4.5), based on the 52 weeks a year, the weekly visit would reach 9487, while Monday to Friday visit accounts for 60 percent of a typical week which is around 5692 (9487*0.6) and Saturday demand is 1708 (9487*0.18) and Sunday demand is 2087(9487*0.22). Though the data for the rest 7.5 months’ visiting is not known to us, still from the fact that there 40% of the total visits happen on weekends (Saturday and Sunday) and also taking into consideration that the main categories of visitors are families and schools groups, there could be obvious seasonality impacting on the visiting of the site.

 

Since there is obvious seasonality on the demand, the company has adopted several major methods in different areas to cope with the changes of demand. In the restaurants, in the peak time there could be some customers who have not receive service for hours, in order to avoided these customers becoming the unhappy few, the company would extend the office hour of the restaurant to an additional 45 minutes for them to have a meal; the alternative exhibition could help distract the overcrowded visitors by providing them the transportation service to travel them to the alternative exhibition; also the company treat the staff in a humanized way and also encourage them to be more efficient when in peak time; and in the Marie Cadbury Room, there are also situations in which capacity could be increased: (a) increased supply of facility, equipment and labor; (b) enhanced handling efficiency; (c) service time extension;

 

3.2    Bottlenecks analysis

 

Bottleneck could happen in the demonstration area, since in the area tour groups tend to slow down to watch the production of the chocolate, and in some cases, there are some visitors who are extremely slow in visiting could slow down the progress of all the members of the group, therefore many groups could jam in this area.

 

Another bottleneck is the 10 minute walk between the parking and the entrance of the Cadbury World, there are two major disadvantages of this path: first of all, the 10 minute walk could attract people’s complaints as some visitors would prefer a direct landing in the entrance and avoid outdoor sun burnt; secondly, it will increase the length of the visiting and thus increase the parking length and reduce the parking efficiency.

 

One more bottleneck could also be found in the entrance of the Cadbury World because the arrival time of some groups may be delayed and the arrival of the several tour groups as well as the leaving groups who also gather in the entrance could lead to some jam situation as well as slowing down the efficiency of the entrance area.

 

4.        Concluding remarks

 

To conclude the above analysis, we can see that the company has adopted a very smart customer handling process by designing the flow in a very good manner, but still there are bottlenecks resulted by the seasonality of the visiting. Below we will provide some recommendations regarding how these bottlenecks could be removed or at least be reduced in term of their influence to the business to avoid customer complaints.

 

5.        Recommendations

 

Regarding the bottleneck that is possible in the demonstration area, since the company has found out that the usage of portable microphones could help the tour guides to better control their groups, the company could provide these equipments to tour guides in case their equipments are not working

 

Regarding another bottleneck which is the 10 minute walk between the parking and the entrance of the Cadbury World, frequent free transportation linking to these two places could be helpful to reduce the negative impacts of this bottleneck, in addition, still those who prefer to walk could still maintain their choices and relevant services and support could be offered.

 

Regarding the bottleneck in the entrance of the Cadbury World because the arrival time of some groups may be delayed and the arrival of the several tour groups as well as the concurrence with leaving groups, the efficiency of the entrance would be reduced and thus become a bottleneck restricting the whole visiting process, one recommendations is to set up a gathering zone to accommodate the leaving groups members to make the entrance more efficient.

 

 

 

Reference

 

Thompson, R. 2007. Manufacturing processes for design professionals. New York: Thames & Hudson

 

kraftfoodscompany.com 2010. Corporate information. [online] http://www.kraftfoodscompany.com/welcome.aspx