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Impressive Burger Company running the fast food business from last 10 year's, who came in to business with the, objective to provide quality product with fast serving to customer, so basically targeting the group of customers who like quality product but want their product in no time.
This report will provide the analysis, evaluation of IMPRESSIVE BURGER performance over the last 12 month, as the company is facing a crisis and near to declare a loss, first time in his history.
We also discuss all the factors, which make the situation, worsen for the Impressive burger.
What has been analyzed in this report is:
Functions of Impressive burger
Type of process carried out in the Impressive burger
How the change had been implemented
Strategies and changing in the environment
Peoples understanding about the change
Business process re-engineering
Flexibility in production
This report also talks about findings, steps needed to rectify the current situation like:
How to improve the efficiency and effectiveness
Decision taken in term of tactical and operational
Preparation should be done for change
Designing and planning the operations
Analysis process of operations
Control system operation
Creating competitive advantage
The clear suggestions and recommendations being given in the areas like:
Operations carrying out by impressive burger
How to redesign the process
Alternates for the same situations
How to manage the change
Theories make it possible to get solutions
Good way of controlling the inventory
Getting the customer faith back to company
The finding of this report, tells the current situation of the company and the areas need the up-most importance, and urgent decisions, to stop making the situation worsen and effective recovery.
The evaluation of impressive burger starts from the day when company had decided to increase its operation from 6 set of menu to the 9 with some other changing options as well in side order.
When ever any operation will be designed it designed with the involvement that is there a need of such product, so the marketing department comes into action with their ideas and planes, the basis provided for their statement and research.
As the work being completed then the department of research and development comes into action that develops the product, with the outline specified by the marketing department.
If we see the situation work done by marketing of product and then research and designing of product we don't see any problems as the details shows that after introducing such changes in the company menu, company start getting a good response of customers and turnover of customer visiting every shop being increased.
So there is definitely some thing wrong, how the things have been served to customer as the number of staff has not been increased and so as the machines being not increased.
Operations Process evaluation and expansion:
The operation of placing order and from customer start the process of operation, as this is being mentioned that this process normally before changes took only 4 minutes as after changes it doubled the time of serving customers.
So we need to see how the operation (set of different process) being carried out.
The set of menu is actually catering three things in it:
Main meal that is Burger, side order that is Chips, Garlic bread, Salad and Potato Wedges, and third things is the Soft drink.
So it is obvious that when a company makes a plane to expend their operation then have to make some decisions like:
What service they should offer (the product).
How the service will be provided.
How the facilities should be up-dated.
How to forecast the demand and then order it accordingly
So the service industry like the impressive burger have to make it sure that not only the product but the service should be done in the way that will delight the customer.
As study shows that there are many customers who like to buy product because of the service you provide to him/her.
Normally in the service industry of such category take two approaches to make burgers.
At the moment as time went double in serving the customer from 4 minutes to 9 minutes so and the number of staff is still same, which makes the situation bad.
We impressive burger either make to stock approach by keeping the staff low so as the customer approach and place an order, then order should be placed in given time, or the number of staff should be increased so as the customer place an order then and their order will be made and served, as the main objective of company success is the quality of product and service, how quickly it is being served.
As the process involves the number of micro-operations, like:
A team who is responsible to make a main meal (that is burger)
B team who is responsible for the side order to make it ready (that is wedges, chips, garlic bread, and salad)
C team responsible of making the drinks ready for the customer
D team who take order from customer and in direct contact with the customer.
So it means the buffering actually exists in two places in impressive burger operations.
Before going into the details of buffering I want you to understand the buffering "it a process in which the unpredictable changes in demand or services make organization to tackle with"
It is called as the designing of an inventory or stock of resources either at the input or at the input side of the process.
So we have seen it was not present in the store in term to buffer the unpredictable demand came arises in the store, and things are not in place; in term of staff availability and also the enough equipment.
It is a process of allocating the responsibilities of various functions in the organizational so that the operations functions are protected from the external environment by others functions.
This is one of the functions carried out by Impressive burger,
Some other Functions
Every restaurant is also doing a function of purchasing individually so the inventory is not centralized, normally the main objective of purchasing is:
To lower the price of material
Faster inventory turn over
Continuity of supply
Reduced replenishment lead time
Reduced transport cost
Improve vendor relation
Better control of quality
Effective administration minimizing organizational effort
Maintain adequate records
The main objective of purchasing process is to use the physical items and conversion through the operation process.
The dimensions of function of the Impressive burger are:
The Product (that is the utility)
The serviceability (quality, serving time, customer welcome)
The reliability (availability, accessibility, consistence in quality)
Like every organization impressive burger is also performing the four management functions:
Planning - to formulate the set of programs to definite action for accomplishing the goal
Organizing - specific task being given to specific group and ensuring the smooth flow of information and co-ordination between.
Leading - motivating the employees in a way that their output will make possible to meet target in time
Controlling - controlling mean analyzing the required things like, stock, work-force out put, efficiency.
The impressive burger is also following functions in their daily routine in every restaurant.
Planning is control by every individual restaurant in term of, how to order, what to order, how much to order, any main changing is done by the head office.
Organizing the staff is restaurant manager duty, what is suitable to what job, what type of skills required in what job, where staff needed.
To leading the staff is also the responsibility area of the manager of restaurant, who need to motivate them by, different incentives, some from the company and some from the manager individually, goal is to keep involve the employees in their role.
Controlling in term of: employees performance, wastage control, ordering products, efficiency and effectiveness of procedure being measured by every restaurant individually.
Any company who follow any strategic planning (which is long-term) need to develop mechanism that other departments must adopt that strategy in the way to achieve the goal as, any other company might copy your product but its strategy and way of delivering could not be copied.
So as impressive burgers have done in their departments this is unique, this become possible for impressive burger by right combination of values, resources, skills, and process. This enables impressive burger to add values in their product.
If the every single employees in impressive burger knows the;
What is the organization goal for long-term
What is their vision/mission statement?
Which market, products and customers impressive burger want to serve, do not want to serve
What are their core values and beliefs?
On-going planning in delivering the strategically
The entire functions plays important role in delivering and relating the department and ultimately the organization strategically positioned in the market.
While this is being decided by the company that the new menu will be launched, this idea increasing the line and then the impact of them on expansion need to be evaluated. As it is important and big change which took place in organization, there is always two factors who force the any organization to do changes.
Changes come into organization because of the external forces which have a little control or no control by the organization.
Another is the planned change, which is more controlled by the organization, this type of change can be PLANNED, IMPLEMENT, CONTROLED, and STRATEGIZE by the organization.
Like any other organization impressive burger have definitely carried out change after going from these points:
To determining the need for change
Preparing the tentative plane
Analyzing the probably reaction
Making final decision
Implementing the change
These all steps of change can be achieved by combination of good leadership, project management, quality of solution, incentives, technical knowledge, and organization culture.
These factors play important role in any change took into the organization either the expansion or of the operation or increase in their product lines.
Normally it has been seen that when company apply and change in their operations or other type of change they have the A and B planes to stop worsen the situation.
Impressive burger is facing at the moment a lot of problems that is needed to rectifying as soon as possible; they are not just in one department but in several departments.
There are multiple solutions for the same problem but we need to see which one is more relevant in scenario, as main objective is to start the recovery as soon as possible, then set the step of action needed to strengthen the recovery and then progressing toward the profitability.
Nature of business is very important to understand as that nature produce the strategic strength in your product/services, the impressive burger is founded with the idea of quality fast food with quick service.
Activities of business in impressive burger are direct related with customers as quick the things will move and decision will make the more the benefit will be transferred to the customers, like the input of order to the delivering the required order in swiftly way.
Operations as we know consist of different numbers of small operations in any organizations, the important things is that these operation should relate to each other in a way that ultimate goal will be achieved.
As mentioned above impressive burger is known for his EFFECTIVENESS in QUALITY product and EFFECIANCY of their SERVIVES.
But after the change being brought into action the customer complaints about the product as well as services get increased which tells the clear voice that the implementation of the change willing by company is not working in the way how we have thought, so this also influencing the operations as well and there are delays in orders which was the one of key elements of impressive burger is also going to loose, and the order which is being served in 4 min before is now taking 9 minutes.
So the corrective action needed to take in the departments, where the product will be served in ideally time, this will increase the strategic strength as well.
Areas needed to concentrate are these:
Process to serve customer needed immediate attention
Stock capacity planning needed to be reviewed
Customer complaints department should be vigilant
Employees needed to change attitude (employees training)
ISSUE 1- Serving the customer is directly influences on customer and ultimately the immediate reaction from customer, reason is why it happen that after introducing the new menu why customer are being served so late.
The main reason from the study shows there is not enough staff or there are not enough machines which can help the employee to serve customer in good time. There could be some reasonable solution regarding such problems.
If customer order will get delayed, the employee should apologies from the customer.
Make it double sure the order which is serving to customer is that belong to this customer or is this belong to some one else.
Make it sure the order is complete as if order is late and on top of it, if it is in-complete this will make the customer very furious.
But for the long time we need to make some changes like give some responsibility to the customer like; if the drink machine will be placed to the customer side will make it easy for the employee to fill the drinks for the customer and they can concentrate more on the others orders.
ISSUE 2-As after the new menu have been introduced there is continuous problem with the waste, as this is as result of the stock being hold for too long rather then utilizing for the ultimate product and as this product is not very long life product so there is need to rotate the date so the product with the most closest date of expiry should be utilized to minimize the waste.
Capacity planning needed to be done might be the restaurant have no idea to what extent they need the raw product to make the finish product, so better now to review their order, before any order being placed.
This is one of the reasons of inefficiency when there is discrepancy between capacity and the demand.
So the capacity can be increased by introducing
Bringing more equipment and material
Increasing the number of workers or machines
Increasing the numbers of shifts
Capacity can be calculated as:
(Number of machines) * (numbers of shifts) * (utilization) * (efficiency)
Four Vs approach can utilized here as well
Volume- which products have high, and which one have low consumption level and the restaurant will order it accordingly.
Variety- what variety of product is more popular in what area so the area of that restaurant should order it according to the demand of that market.
Variation in demand- which area of, which product is more variable, and then need to be get proper attention every time, for next ordering.
Visibility- the changes that you will bring should be get noticed and not just internally but externally as well.
JIT ORDERING METHOD
Many of the small venders also use JIT ordering process in impressive burger case there is bit advantage to Impressive burger as this chain is establish in market so every restaurant can make individual relation with the supplies/venders, and can make long-term relation with some suppliers.
By doing this every restaurant will keep their inventory low and it will be easy to control the stock and less chance of waste.
ISSUE 3: there is urgent need for the customer service center line or any department who work on customer compliances, either these compliance are on daily operations basis or by the service or product related but needed to be rectify there and then if it is possible.
For this impressive can offer customer compensation of alternate product or money back.
The employees can play very important role in this situation as the motivated employee make customer happy and take extra step a head for customer.
ISSUE 4: Change which is always very challenging for any company, the study shows that it impressive burger is not even different, the employee are not accepting the change as well which making them rude with customer and the rigid attitude toward the work , which is not helping to solve make situation better but making it worse.
Two main things management need to understand first
Managing the change
Preparation for change
Need to identify which role need change
Determine the major issues
Identify and access the key stakeholders
Identify the obstacles
Determine the risk
Understand why change is resisted
To implement the change after identifying the causes and consequences there are normally two approaches
Step change: this is quick fix, radical approach used to apply this change, immediately get affected,
Draw back is peoples might not welcome or accept
Incremental Change: as the name say the story it evolve gradually as peoples will get used too, and then their is less resistance toward the change.
There are some ways mentioned by some experts by which resistance to change can be reduced:
By educating and communicating
Their involvement and participation
Support and facilitation
Negotiation and agreement with them
Explicit and implicit coercion
As we have seen in task one and two, what are the causes which making the situation bad for the impressive burger and the suggestion as well. But one things is much more important that when impressive burger will implement the change we need to analyze how does it works for the company and before the change gone wrong we need to did little crafting on it.
So we to develop such methods which can be utilized for analyzing and measuring performance:
We need to develop;
Method for performance analysis
Material handling method analysis
Stock control analysis
Information flow analysis
Inventory management analysis
Stock room analysis
These are the measurement which will be took place in impressive burger and then these process can be measured to know which department is working accordingly
Some other indicators are also available which can tell is the process are working in the direction of company progress.
Work in time
Direct labor content
Direct labor utilization
Little Law is also recommend it to used for the purpose of throughput rate
W.I.P inventory = throughput rate * flow rate
Process can be improved by
Reducing work in process inventory
Improving the efficiency of bottle neck activity
Minimize non-value adding activities
Redesign the product for better manufacturing
These ways of improving keep the managers on there toes to make things better but these are not the only responsibilities have but they have like some other responsibilities
Which are direct, indirect and broad as well?
Managers need to used those analysis then to make decision in term of:
Controlling the inventory
Design the job for the employees
Forecasting the demand
Managing the purchasing
The most important part is the implementation which can not be done easily because of the change, if manager make every thing right by using the above analysis and measurements even then managers need better implementation of the strategy which they have design when the change will be implemented then employee who are a part of that change must be involved as the change can be imposed but make it acceptable to them.
Kotter have given change model to manage this in good manners he sais:
share the vision
Develop a clear vision
crate a coalition
Establish a scene of urgency
Empower peoples to clear obstacles
secure short term win
consolidate to keep moving
anchor the change
But he also said that if the change will get failed what you font need to do is increase the resistance? His definitely not is done.
If the change is understand and accepted it will get development toward the business and the employee of the company so as a result the sale will grow, new market will be
Introduced, new product will be introduced.
If the managers want to make a mark then recommended suggestion and process needed to be consider in result t the operation of impressive burger will be improved, cost for operation will go down and the market performance will improve as well, not only this but the market share will grow.