Operations Management at
Aberdeen Railway Station

Student name: Lukasz Szalasnik

Table of contents 1. Executive summary 3 2. Introduction 3 3. Location 3 4. Station layout 4 5. 4 V’s objectives 4 6. Process technologies 5 7. Recommendations and conclusion 5 Bibliography 8

1. Executive summary
The in-depth analysis of the operations management at the Aberdeen Railway Station has discovered some serious impediments to the efficiency and reliability of the existing system. Among the others, the most striking problem is vague visibility of the platforms which causes upset among the customers who have missed the train. Apart from that problem, the findings suggest, that most of the operations run smoothly. Costs of running the business are kept on a low level, which has been achieved with the flexibility of mixed functional and cell layout, and use of modern process technologies such as automatic gates and ticket machines. What is more, customers are tempted by the convenient and attractive location which provides perfect connections with other means of local, regional and national transport. 2. Introduction
The purpose of this report is to analyze the operations and processes management that has been implemented at the Aberdeen Railway Station. The scope of the analysis includes a detailed description of the operation characteristics such as volume, variation, variety and visibility; as well as location determinants, layout design and customers’ interaction with technology. All of these features are considered in relation to the five performance objectives putting stress on those qualities which are the most important for this particular type of operation. Some parts of the findings are also presented with the aid of pictures. Because of the observation-based nature of that report and various problems with data availability it focuses mainly on overt operations, and thus, undermining the back-office operations and processes. Following the presentation of these findings conclusions will be drawn and several recommendations given to improve the quality and efficiency of the facility. 3. Location
Convenience is the most significant demand-driven factor determining location of any rail station that serves retail customers. Since Aberdeen Railway Station connects the main railway line from the south with the northbound track, its localization is therefore exceptionally important for thousands of everyday commuters. Based in the east part of the city, just 5 minutes walk from the city centre and main street, the station offers quick access to numerous bus lines and high street facilities. Its position and distance from the harbor is not a coincidence since the station has long been used for the transport of goods. Another major advantage that adds to convenience of customers is a bus station providing national and regional connections. It is located on an adjacent site across the car park. The station is run by the same First Group Company and offers special discounts for PLUSBUS tickets. This reduces costs and creates more efficient operations for the services that are provided. What is more, the station offers easy access to the Aberdeen Airport. Located in the nearby area of Dyce Station, a 10 minutes ride from Aberdeen Railway Station, it becomes a very attractive feature for tourists. For the convenience being a winning qualifier for many customers, such location of the station provides the owner with high revenue potential and service provision. As for the supply-side factors, it must be mentioned that despite the lack of problems with workforce availability, the costs of land are much higher than it would be outside the city. Yet, the chosen location seems to be a reasonable and profit maximizing compromise. 4. Station layout
Because of the high volume of operations taking place at the station it has been designed to optimally use the space and facilitate flawless flow of people. To achieve those objectives, the station has been arranged into functional cells dealing with certain tasks. It is up to the individual, which cells to use to finally board on the train or, in case of arrival, leave the station. There are two main entrances for coming customers: one leading directly to the spacious concourse (Picture 1) and another one through the ticket office. The ticket office is comprised of seven desks at which customers can either buy or collect pre-purchased tickets and request information. Comparatively high amount of desks adds to flexibility and helps to cope with high variations in demand as the station can adjust the number of workers. The concourse is big enough to provide sufficient capacity for rush hours when the demand reaches its peak. It must be said however, that sitting area is comparatively small, given that there are no separate waiting rooms. Within the area of the concourse there are a pub and a café (Picture 2) that provide basic hot meals and drinks as well as the toilets and additional seating area for the clients. For the customers willing to buy some snacks or books there is also a W H Smith confectionery shop though with a very short opening hours. Located next to the station building and separated by the automatic gates, the platforms area cannot be seen clearly from the concourse. It can pose a problem because the customers have to rely heavily on the electronic notice boards. Another major drawback of the existing layout is the size of a car park which is not only expensive but also very small. Yet, a big advantage of the station arrangement is a taxi stance located just outside the building which increases the range and quality of the provided services. 5. 4 V’s objectives
Because the station provides mass services, the volume of the observed operations is very high. Every single day it is used by thousands of commuters who seek fast, reliable and quality service. It must be pointed out, that despite the high volume, there is also a high variation in demand, which changes on a daily and seasonal basis. It peaks twice a day in the early morning and again in the late evening. Increased activity can be also observed during holidays. To keep the unit costs at a low level the amount of staff at the automatic gates, leading to the platforms, and at the ticket office desks is tailored so as to follow the changing demand. The above mentioned variations are usually easy to predict. A few exceptions are unexpected events such as big demonstrations or sport events that increase temporary demand for rail services. Given the importance of a cost objective, the variety of provided services is kept on a low level, with standardized systems and routine processes. On the station there are no facilities for business customers such as first class lounge, personal service or
Wi-Fi connection. Similarly the boarding process is well defined and identical for all clients. The customers cannot see the majority of back-office operations carried out to provide a service which means that visibility is at a low level. This further decreases the costs of running the station. 6. Process technologies
To improve the efficiency and effectiveness, the flow of operations at the Aberdeen Railway Station is supported by the range of technologies. Electronic departure and arrival screens (Picture 3) are important examples of the devices through which customers interact directly with technology. They are very large, clearly visible and easy to operate by the station staff, which significantly improves quality of the services. Other useful facilities are ticket machines (Picture 4), accepting cash and debit cards, which allow buying and collecting pre-purchased tickets. They are easy to use and help to save time on queuing. It gives the customers speed advantage and strengthens flexibility of the provided services. Similar features can be attributed to the automatic gates which process a ticket within seconds. It is much faster than traditional methods and decreases the number of staff required to provide the service, which further reduces unit costs. Another important technology has been deployed to provide security. The station is constantly monitored using Closed Circuit Television (CCTV) to protect customers against thieves and pickpockets and to ensure that nobody travels without a valid ticket. It contributes to increase in quality and dependability of the services. 7. Recommendations and conclusion
The overall performance of the operations and processes at the Aberdeen Railway Station is very good. The station management team has managed to achieve the most important performance objectives, which are quality, speed and dependability. The arrangement of the transforming resources within the existing layout facilitates continuous flow and provides sufficient level of flexibility. Applied methods of demand tracking are efficient and reduce unit costs. However, there are some serious drawbacks that undermine the efficiency and leave the field for improvements. One of the main disadvantages of existing layout is the size of a passage leading from the entrance to the concourse. It poses a problem especially during rush hours when people, struggling to reach a train, are crowded in a narrow corridor. It severely reduces speed of operations flow and causes disappointment among the customers. The simple solutions could be widening of the existing passage or creating additional entrance. Another drawback that has been spotted is the low visibility of the more distant platforms from the main concourse. It increases the possibility of overlooking the train thus decreasing the efficiency of the whole system. To cope with that problem, a glass wall could be used instead of a concrete one, currently full of advertisements, as seen in the Picture 1. Yet, this could be quite an expensive solution which is not in tune with low-cost policy.
Picture 1

Picture 2
Picture 3

Picture 4

Bibliography
Dilworth, James B. Operations Management, providing value in goods and services. (The Dryden Press, 2000)
Martinich, Joseph S. Production and operations management, an applied modern approach (John Wiley & Sons, 1997)
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