There are three main distinct areas in business: Finance, Marketing and Operations. Operations management is concerned with both efficiency and effectiveness concerned with the operations supporting and made for development of any businessï¿½s strategic goals. It includes designing operations of systems to provide goods and services. It can be also said that Operations management is the planning, scheduling, and control of the activities that transform inputs (raw materials and labour) into outputs (finished goods and services).
Operations management focuses on effective planning and scheduling. Today, businesses have realized the importance of operations management as it is equal to finance and marketing. In order to be able to compete in the global market, businesses have to have an operations strategy. It not only supports the mission of the firm but also helps the firm form its overall corporate strategy. When making long-term strategies, operations managers are the one who are responsible for taking decisions like what product should be made, its designs, layouts everything. They also decide the process by which it is going to be made, where the factory should be located, number of staff or workers etc. Operations managers take decisions like what should be processed and how it should be processes. The sequencing and even decisions like assigning of machines to particular workers.
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Operations involve as two way process; input and output. This is known as PROCESS. In an operation, value is added by transforming inputs into useful outputs. This can be used as both in physical output and value achieved. Processes have a great impact on the operations and performance of a business or firm. Improvement in process improves businesses competitiveness.
Process analysis involves in defining boundaries for both input and output. It illustrates different activities and their relationship. It also helps to determine capacity in different processes and in the end its easy to evaluate limitations regarding operating decisions and we know how we can improve the process.
Process flow can be explained by a diagram here:
In this diagram, Tasks are represented by rectangles and arrows represent flow of activities, information or even flow of materials. The triangles represent storage or inventory. This diagram shows that all activities are inter linked. Tasks are done in sequence. Raw material at the beginning shows opening inventory and in the end itï¿½s the ending inventor or the left over from a particular process.
The task of operations manager is to process cost, flexibility, quality and speed in any business operation.
Process capacity is a very important issue here. Process capacity of any process is its maximum output rate in units produced per unit of time. Capacity utilization is the percentage of process capacity which has been actually used or utilized.
Flow time is the average time one unit takes while entering as raw material and going out as a finished good. We can take an example of Impressive burgers itself here, the amount of time one burger takes to be make is called flow time. We can also take it in terms of batches etc. it involves both processing time and the time that is spent during the steps. For example impressive burgers have started offering more options to customers as to customise their product e.g. if someone wants extra chips or wants more salad etc.
Work in process can be explained as the amount of inventory that is put into process. Time is required to prepare machinery and equipment to start an activity on a batch of units. Labour utilization is also a very important part of process; it is the fraction of labour capacity that is actually utilized during the process.
THE PROCESS BOTTLENECK
To determine process capacity, firstly we need to find out the slowest task in the process. By identifying that we will be able to find out that what part of the process is taking the longest and why? For example we ca again take the example of impressive burgers here, if aim appointed as the operations manager, I would like to know that what is the reason why the staff is not able to complete the order at time. By checking process, I may find out that itï¿½s the part in which the egg is added takes the longest time. By identifying the fault I will be able to make some new changes, I might change the workers performing that particular task in order to minimise time loss. Saving time in this part helps to save time for the entire process. Its not always the case that one part of the activity is taking too long and we solve it, Starvation is something that occurs when an activity becomes idle or a process comes to halt. During this blocking, until one part of the activity doesnï¿½t complete, the next step doesnï¿½t start.
Always on Time
Marked to Standard
EVALUATION OF IMPRESSIVE BURGERï¿½S APPROACH TO EXPANDING THEIR BUSINESS
Production and operations management are directly linked to each other. It is the transformation of production and operational inputs to outputs to meet the demands of customers.
This diagram will help us explain the conversion process. By briefly explain the four key terms, we will be able to evaluate the problem impressive burger is facing.
Product is the basic and the main component of any process. Every business makes sure that they provide that product which satisfies their customerï¿½s needs and wants. Productions and operations manager make sure that whether the business are actually making the required products in accordance with the plan or not.
As operations manager, first of all I need to take a clear look at the businessï¿½s performance and aesthetics. Quality, reliability and quantity are also key factors here. After all these analysis I need to look at the cost that is incurring on per unit production and what is the delivery time.
Impressive burger has a goal of providing fast take away food to their customers quickly at of better quality than its rivals. It offered a simple menu structure at first offering a choice of six set meals. Using this format, they were able to serve each customer their order in 4 minutes. Each restaurant places their demand for supplies to each supplier according to the managerï¿½s prediction and the order is received in one shipment every week.
The management determines the future demand i.e. the volume and timing, design and layout of factory equipment. It also takes notice of needs and maintained and also health and safety of the workers, particularly the operation of equipment. Environmental issues are also important for example the handling of waste.
There are various ways in which a product can be produced, but itï¿½s the job of the management to choose the best way i.e. minimum cost and best quality product. Management choose the best process or series of processes, it includes the available capacity, available skills, type of production and maintenance requirements.
Programme concerns with different dates and timings of product that are to be produced. It includes the purchasing patterns, the need and availability of storage and transportation.
It involves all the people that are involved in the business. it concerns with the skills of individuals, their work experiences, their motivation level etc. the leadership and management has to carefully analyse all these things in order to know what the employee motivation level is and avoid having any unions made in the organisation. Work conditions of the staff has to be altered every once in a while in order to make them feel comfortable and make the work environment safe and healthy.
STRATEGIC PLANNING BY OPERATIONS MANAGEMENT FOR EXPANDING THEIR BUSSINESS
Expanding business is a challenge for any small sized business. There are a number of challenges those impressive burgers had to face while expanding their business.
Strategic planning is the key factor here. A strategic factor determines where the organisation is headed in the coming years, how itï¿½s going to reach there and whether it has reached there or not. Strategic plan usually focuses on the entire organisation. The way a plan is developed mostly depend the nature of any organisations leadership works or functions. Size of organisation, the expertise of those who are involved in planning and the culture of the organisation are involved here. It involves organisationï¿½s values and visions and the plans and actions to approach to that particular task. Impressive burgers expanded itself in 10 years time. The recent changes were made in a span of 12 months. Since the new changes were implemented, there has been a huge turnover in customers visiting the restaurants. However since these changes were made, the company experienced a loss.
Identifying the reasons would be the most important thing for impressive burgers at this point. Here are some suggestions for impressive burgers in order recover their lose customers and increase their profit levels.
? Impressive burgers should concentrate on reducing development and also manufacturing time that is taken in for new goods and services.
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? While controlling the costs, they should sustain high quality of their product. Product quality cannot be compromised at any cost.
? They should keep qualified workers. Training them would also be very helpful in order to achieve better results in future.
? Being user friendly for customers is really important, they should be working effectively with their suppliers and also need to be working with any new partners if they have made any e.g. strategic alliances.
? And lastly, they should integrate new technology and control systems in their existing processes.
From the above suggestions to impressive burgers, we can see that all these are critical issues for the firm. The operations manager not only focuses on the isolated tasks and processes but also has to be highly involved in the overall architecture of the business.
Here we will discuss the problems Impressive burgers are facing due to its expansion and how these problems can be rectified.
First of all impressive burgers need to take a look at its work timings. It has the same schedule even after the expansion. It needs to change staff shifts and also alter the days of week the restaurant is going to remain open. Detail of their day to day need of supplies should be fulfilled on time so that the customers donï¿½t have to wait too long to get their order. Information should be provided on the average production time and the operating manager should give an estimate quote to the shipper before time so there is never a time when there is a shortage of stock because that wastes time and makes customerï¿½s have a bad impression of the business.
Seasonal offers should also be initiated for example Easter and Christmas season. For these special times, peak staff would be required and during that time they should perfume their best service to the customer to build customer value. Also, during these special times, details of inventory should be checked again and again and order to the supplier should be made before time.
Information on COSTS TO PRODUCE should always be accessible and the operations manager should identify its labour force requirements. It also includes training of employees to enhance their skills and them compatible with the business by giving them training about development required to meet operations need. Impressive burgers should also have a human resource department so that the owners of the business is aware of different information about the staff and it will help them rectify the problems of high employee turnover after the expansion of the business and also this information is needed for planning purposes.
Operations challenges should be identified to overcome the costs associated with different challenges. These would help in plans for capital expenditures and the operating margins and financial ratios. Along with that the businessï¿½s standards and regulations should be made clear to everyone e.g. their safety plans, how they meet environmental challenges etc. suppliers should be identified and also it should be made clear that at what price that supply is coming and that the rate is also fixed. Operations manager should also rank their supplierï¿½s rank and reputation in terms of volume and their importance to business. An alternative plan should always be ready in case if one supplier has any issues, there should be a alternate plan for substitute supplies and materials. Terms and conditions and annual invoice amounts should also be identified.
EFFECTS OF CHANGE IN THE MANAGEMENT
Change in the workforce highly effects the management. It relates to the managers ability to undertake the leadership role. Restructuring or downsizing can also put a strain on the leaders of the organisation. It only builds up to stress, stress and more stress because have obligations to their staff, they not only have to deal with the change in employees but they also have to be concerned about the current staff they are handling at that time. A manager sometimes has to convey very upsetting information to his subordinates. Stress makes you less effective than you are in usual times but this is for short time basis not for long term basis. Ineffective leadership is usually seen creating long term problem which not only increases you stress level but also reduces their effectiveness to the worst levels.
CHANGE MANAGEMENT can be a helpful source to explain the change that impressive burgers are having and how these problems to employee turnover can be rectified. Change in management could be turned into effective management if some of theses suggested steps are followed and implemented.
? Change management is effective if there is thoughtful planning and then sensitive and proper implementation is done.
? Most importantly, those who are going to be affected if these changes are implemented, they should be involved when the planning for change is being done. Forcing the changes to be implemented is usually the main cause which causes problems to arise.
? Whatever changes are going to be implemented, the should be realistic, measurable and achievable e.g. what is going to be achieved if that particular change is made and when will be the expected changes start occurring etc.
? Instead of trying to sell the change to the workers and related people, an agreement should be made which involves everyone. This way it will be more sustainable. Change should be understood by everyone and managed effectively by all the related people.
? It shall be decided before implementing the change that HOW that changes is going to be handled. People should understand and sign an agreement. Face to face communications will help in handling sensitive aspects of any organisation.
? If a change needs to be made urgently, reasons should be told to the people involved because in changes that are made in hurry, there is no time for proper consulting and involvement of people which in long term leads to great difficulties.
CASE STUDY (1)
Kishore Biyani - Pioneering a Retailing Revolution in India
Kishore Biyani is the owner of chain customer retail stores which he solely stated from scratch. This case study helps us identify what leadership qualities are needed in the management and to what level risk taking attitude of the management is good for the organisation as a whole. This case study discusses the role of a successful leader or leadership and how innovation can be brought in your business.
Kishore Biyani is the CEO & MD of pantaloon retail (INDIA) Ltd. His initial plan was to have 30 food bazaar outlets and more than 22 outlets under the big bazaar. Including were also more 21 outlets and 4 seamless malls, and all this was done before 2005. His plans were to launch at least three more businesses every year and his plans had already developed as he decided music, footwear and car accessories as options for his future business plans.
CASE STUDY (2)
Mary Kay Inc. - The Saleswomen
This case study is about the impact of different selling styles and also the importance of sales incentives.
Mary Kay Ash had a successful career in sales for almost 25 years. She decided to write a book about direct selling and about her experience in the marketing business.
Later she realized that she can do more than just writing a book. Mary Key Inc. had an sales innovative force by 1.3 million beauty consultants who were entirely dependant on her company. She was able to cope up with all that because she had started using IT in her business. This case study mentions the use of internet and how it can help to improve productivity and delivery of orders on time to your customers.
From these case studies we can conclude that the top management here is aware of the benefits of IT infrastructure. Proper evaluation of the services being provided by the business should be done because until and unless you are not able to provide your basic services right, people or customers wont trust you and turn to look somewhere else i.e. competitors. Therefore, proper evaluation should be done of the product and services you provide. Areas that need improvement should be identified and defined and an unbiased evaluation should be done to identify that. Different programs should be implemented to correct and solve issues and to maintain consistency.
EFFECTS ON OPERATIONS AND THE WAYS IN WHICH THE OVERALL OPERATIONS COULD BE EXPENDED FURTHER
Small businesses like Impressive burgers lay in the most powerful business sector. Research has shown that small businesses spend more than $5 trillion every year. This shows that there are great opportunities for impressive burgers to achieve their desired goals. Here are some suggestions for impressive burgers to be able to be more efficient.
IMPROVE EMPLOYEE SATISFACTION
Employees are the backbone of any organisation. Frustration among the workforce not only annoys the staff but also the customers. A fast and reliable network is needed to ensure that the employees are satisfied and proactive along with being efficient.
RELAXED WORKING ENVIRONMENT
Co ordinance among the employees ensures smooth collaboration between the work fore and the management. Customerï¿½s needs and wants are also fulfilled and satisfied on time and costs per unit are also reduced. A network within the organisation should be intelligently handled; using video conferencing and other use of technology can help save time efficiently
UNPRODUCTIVE TIME SHOULD BE REDUCED
Unproductive time should be turned into productive times for example travelling time etc. instead of travelling time; this task could be easily done by the use of technology. This would not only help save time but would also help cut or reduce costs.
A LONG-TERM PLAN FOR TECHNOLOGY SHOULD BE DEVELOPED
Technology advancement is something all businesses have to cope up with in these changing times. An obsolete hardware or programme should be removed or replaced because it can cause frustration among employees and also cause loss of time or time wastage. These hindrances and disruptions should be carefully handled in order to be able to achieve both short-term and long-term objectives of the business. A personal IT network would help impressive burgers to work more efficiently and effectively.
The given diagram will further help you understand the above suggestions.
Most of the strategic plans fail due to improper planning. If best quality product is provided to the customer on time, he will give a positive response towards this business and will be attracted towards impressive burgers in future times also and all this should be done keeping the costs minimised.
Flexibility in the work place is important because it means that there is always room for change and different situations can be handled in different ways at different times.
Cost structure varies in every organisation according to the product or service they are providing. The basic concept here is to be able to reduce your costs effectively