BMZ ACADEMY
THE BMZ ACADEMY
@061 262 1185/068 053 8213
BMZ ACADEMY 061 262 1185/068 053 8213
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Table of Contents
Question 1 .................................................................................................................. 3
1.1 Planning and Control Activities in Operations Management ................................. 4
1.2 Sequencing Rules and Application to KLM .......................................................... 6
Applicable Rule for KLM ............................................................................................. 7
1.3.1 Reasons for Holding Inventory .......................................................................... 7
1.3.2 Which One of These Reasons Is True for KLM in Our Case Study? ................. 8
2.1 Demonstrating the Transformation Process ......................................................... 8
2.2 Application of Five Performance Objectives ......................................................... 9
2.3.1 Importance of Using a Supply Network Design ............................................... 10
2.3.2 Example from the Case Study of How This Can Be Achieved ........................ 11
2.4 Organisations need to arrange for the movement of raw materials, finished
products and waste between destinations, as well attend to storage, protection and
inventory control. Discuss logistics, physical distribution management and distribution
in the context of the case study. (6).......................................................................... 12
2.5 Four Objectives of Capacity Management that KLM May Want to Consider ...... 13
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Question 1
KLM Catering Services is the largest provider of aircraft catering and supply at
Schiphol Airport near Amsterdam. Every day the company, which employs 1,200
people, prepares around 30,000 meals and 'services' 250 flights for KLM and other
operators. It is now far more than just a food-preparation operation; most of its
activities involve organising all on board services, equipment, food and drinks,
newspapers, towels, earphones and so on. It also places considerable emphasis on
working in unison with cleaning staff, baggage handlers and maintenance crews to
ensure that the aircraft are prepared quickly for departure (fast set-ups). Normally, no
more than 40 minutes are allowed for all these activities, so complete preparation and
a well-ordered sequence of working is essential. These requirements for speed and
total dependability would be difficult enough to achieve in a stable environment, but
there is a wide range of uncertainties to be managed. Although KLM Catering Services
is advised of the likely numbers of passengers for each flight (forecasts are given 11
days, 4 days and 24 hours in advance), the actual minimum number of passengers for
each class is fixed only six hours before take-off (although numbers can still be
increased after this, due to late sales). The agreed menus are normally fixed for six-
month periods, but the actual requirements for each flight depend on the destination,
the type of aircraft and the mix of passengers by ticket class. Finally, flight arrivals are
sometimes delayed, putting pressure on everyone to reduce the turnaround time and
upsetting work schedules.
An additional problem is that, although KLM uses standardised items (such as food
trolleys, cutlery, trays and disposables), other airlines have completely different
requirements. The inventory of all this equipment is moved around with the planes.
Some gets damaged or lost and it can easily accumulate at a remote airport. If an
aircraft arrives without a full inventory of equipment and other items, the company is
obliged to fill the gaps from its local inventory, which amounts to over 15,000 different
items.
Source: Slack, N. Chambers, S. and Johnston, R. 2007:417. Operations
Management. 5th edition. England: FT Prentice Hall: Pearson Education
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