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Managing operations can be enclosed in a frame of general management function. Operation managers are concerned with planning, organizing, and controlling the activitiesm which affect human behaviour through models. (Robert Johnston, 2008)
Activities that establishes a course of action and guide future decision-making is planning.
In term of Impressive burger The operations manager have to defines the objectives for the operations subsystem of the organization, and the policies, and procedures for achieving the objectives. This stage includes clarifying the role and focus of operations in the impressive burger's overall strategy. It also involves product planning, facility designing and using the conversion process.
Activities that establishes a structure of tasks and authority.
Operation managers in impressive burger have to establish a structure of roles and the flow of information within the operations subsystem. They have to determine the activities required to achieve the goals and assign authority and responsibility for carrying them out.
Activities that assure the actual performance in accordance with planned performance.
To ensure that the plans for the operations subsystems are accomplished, the operations manager must exercise control by measuring actual outputs and comparing them to planned operations management designed for impressive burgers. Controlling costs, quality, and schedules are the important functions for the managers to reduce the cost and manage the quality of burgers for customers.
To expand the business Impressive Burger's Operation managers are concerned with how their efforts to plan, organize, and control affect human behaviour. They also want to know how the behaviour of subordinates can affect management's planning, organizing, and controlling actions. Their interest lies in decision-making behaviour. They also facing the complaints about staff behaviour.
In term of impressive burger's operation managers plan, organise, and control the conversion process, they encounter many problems and must make many decisions. They can simplify their difficulties using models like aggregate planning models for examining how best to use existing capacity in short-term, break even analysis to identify break even volumes, linear programming and computer simulation for capacity utilisation, decision tree analysis for long-term capacity problem of facility expansion, simple median model for determining best locations of facilities etc.
http://www.newagepublishers.com/samplechapter/001233.pdf (accessed at 12/04/2010)
Nature of the OM
Some people argue that operations management involves everything an organisation does. In this sense, every manager is an operations manager, since all managers are responsible for contributing to the activities required to create and deliver an organisation's goods or services. However, others argue that this definition is too wide, and that the operations function is about producing the right amount of a good or service, at the right time, of the right quality and at the right cost to meet customer requirements. So, to expand the business for impressive burgers management 1st have to decide in which context they take OM broader or miner than they have to formulate their strategy and it shouldn't be different than the Company's strategy.
Activities of OM
Operation managers are not only responsible for the operation process they also need to look at the following
Human resource management
Human resource management
In terms of Impressive Burgers to expand their business OM have to spend the time with the people employed either work directly to create a good or service or provide support to those who perform. According to Sunil Kumar (2006) "People and the way they are managed are a key resource of all organisations".
Impressive Burgers buildings, facilities, equipment and stock are directly involved in or support the operations function. So the OM has also look at the asset owned by company.
Most of the costs of producing goods or services are directly related to the costs of acquiring resources, transforming them or delivering them to customers. For many organisations in the private sector, driving down costs through efficient operations management gives them a critical competitive edge.(Russell, Taylor, 2000) So Impressive Burgers OM have to look at the cost as well and make the operation process effective and need to reduce the cost to generate more revenue.
http://openlearn.open.ac.uk/mod/resource/view.php?id=161695 (accessed at 13/04/2010)
Organization competiveness and strategic decision making in OM
To expand the business Impressive Burger's have to adopt a strategy that will give them competitive advantages According to Slack, Harrison, Chamber, Harland, Johnston (1995) before manipulating the strategy any organization have to look following points:
How many branches they should open?
How large they will be?
Where they will be located
How should they develop and change the products which they are offering to their customers?
How should they lay out the various departments and facilities with in the operation?
What type of machines and process technology they should purchase?
What human resources strategies regarding working responsibilities and practices should they adopt for the their staff?
How should they adjust their capacity as demend fluctuates?
How should they monitor the monitor the performance of the operation?
How should they plan to improve perfoemance of the operation/
According to Slack, Harrison, Chamber, Harland, Johnston (1995) some of the company need to address related to the way in which it would make all the contents decessions are as follows:
Why are we revicing our operation strategy at this point?
Who should take overall responsibilities for formulating the operation strategy?
Who should be involved in formulation process?
How should we organize ourselves to formulate operation strategy?
What should we do first, second, third and so on?
What action plans or specific projects should we intiate to to achieve our new starategy?
How should we manage the implementation of our strategic planning/
They also discussed some factor that can influence the comptetiveness are as follows:
Reliability in delivery
Wide range of products
Ability to change the timing or quality of products
In order to achieve complete competitive advantages Impressive Burger's management have to concentrate at all above points and should keep the reasonable prices should keep an eye on quality and so on.
Change management is a planned approach to transitioning individuals, teams, and organizations from a present state to a required future state. Change management is the process during which the changes of a system are implemented in a forced way by subsequent a pre-defined framework/model with, to some degree, logical modifications.(Heiezer, Render 1996)
In Operation Management, change management refers to a Operation Management process where changes to a process are properly introduced and accepted.
The field of change management grew from the acknowledgment that organizations are composed of people. And the behaviours of people make up the outputs of an organization. (Robert Johnston, 2008)
Types of Organizational Change
Changing the attitudes and behaviours of personnel
As a multidisciplinary practice, Organizational Change Management requires for example: creative marketing to enable communication between change audiences, but also deep social understanding about leadership's styles and group dynamics. As a visible track on transformation projects, Organizational Change Management aligns groups' expectations, communicates, integrates teams and manages people training. It make use of metrics, such as leader's commitment, communication effectiveness, and the perceived need for change to design accurate strategies, in order to avoid change failures or solve troubled change projects.(Chase, 2006).
Problem that company is facing
Less operational area
Long waiting time
Less staff and machinery
Complains from customer
Solutions for problems
To solve the above operational problems followings are some suggestions
To solve the less operational area problem Impressive burgers have plan and control the capacity of the restaurant's operation areas some other have argued in different ways about capacity planning and control but according to according to Slack, Harrison, Chamber, Harland, Johnston (1995). " Capacity planning and control is the task of setting effective capacity of operation so that it can respond to the demand placed upon it".
So we can say when the demand will go high we need more physical space to improve the operations.
Slack, Harrison, Chamber, Harland, Johnston (1995) divided it into two different parts
Short or medium term capacity planning and control.
Long term capacity planning and control.
It depends on the operation weather we need to plan for long term or short term.
Slack, Harrison, Chamber, Harland, Johnston (1995) also argued about the objectives of capacity planning that are:
Cost will be effected by the balance between capacity and demand
Revenue will also be effected by the balance between capacity and demand, But in the opposite way. Capacity level equal to or higher than demand at any point in time will ensure that all demand is satisfied and no revenue lost
Working capital will also be effected if an operation decide to build up finish goods inventory prior to demand.
Speed of response to customers demand could be enhanced, either by the build-up of inventories or the deliberate provision of surplus capacity to avoid queuing.
Waiting time (Queuing) problem can be solved by conducting the process analysis of an operation.
The first step to improving a process is to analyze it in order to understand the activities, their relationships, and the values of relevant metrics. Process analysis generally involves the following tasks:
Define the process boundaries that mark the entry points of the process inputs and the exit points of the process outputs.
Construct a process flow diagram that illustrates the various process activities and their interrelationships.
Determine the capacity of each step in the process. Calculate other measures of interest.
Identify the bottleneck, that is, the step having the lowest capacity.
Evaluate further limitations in order to quantify the impact of the bottleneck.
Use the analysis to make operating decisions and to improve the process.
Process Flow Diagram
The process boundaries are defined by the entry and exit points of inputs and outputs of the process.
Once the boundaries are defined, the process flow diagram (or process flowchart) is a valuable tool for understanding the process using graphic elements to represent tasks, flows, and storage. The following is a flow diagram for a simple process having three sequential activities:
Process Flow Diagram
Process Performance Measures
Operations managers are interested in process aspects such as cost, quality, flexibility, and speed. Some of the process performance measures that communicate these aspects include:
Process capacity - The capacity of the process is its maximum output rate, measured in units produced per unit of time. The capacity of a series of tasks is determined by the lowest capacity task in the string. The capacity of parallel strings of tasks is the sum of the capacities of the two strings, except for cases in which the two strings have different outputs that are combined. In such cases, the capacity of the two parallel strings of tasks is that of the lowest capacity parallel string.
Capacity utilization - the percentage of the process capacity that actually is being used.
Throughput rate (also known as flow rate ) - the average rate at which units flow past a specific point in the process. The maximum throughput rate is the process capacity.
Flow time (also known as throughput time or lead time) - the average time that a unit requires to flow through the process from the entry point to the exit point. The flow time is the length of the longest path through the process. Flow time includes both processing time and any time the unit spends between steps.
Cycle time - the time between successive units as they are output from the process. Cycle time for the process is equal to the inverse of the throughput rate. Cycle time can be thought of as the time required for a task to repeat itself. Each series task in a process must have a cycle time less than or equal to the cycle time for the process. Put another way, the cycle time of the process is equal to the longest task cycle time. The process is said to be in balance if the cycle times are equal for each activity in the process. Such balance rarely is achieved.
Process time - the average time that a unit is worked on. Process time is flow time less idle time.
Idle time - time when no activity is being performed, for example, when an activity is waiting for work to arrive from the previous activity. The term can be used to describe both machine idle time and worker idle time.
Work In process - the amount of inventory in the process.
Set-up time - the time required to prepare the equipment to perform an activity on a batch of units. Set-up time usually does not depend strongly on the batch size and therefore can be reduced on a per unit basis by increasing the batch size.
Direct labor content - the amount of labor (in units of time) actually contained in the product. Excludes idle time when workers are not working directly on the product. Also excludes time spent maintaining machines, transporting materials, etc.
Direct labor utilization - the fraction of labor capacity that actually is utilized as direct labor.
The inventory in the process is related to the throughput rate and throughput time by the following equation:
W.I.P. Inventory = Throughput Rate x Flow Time
This relation is known as Little's Law, named after John D.C. Little who proved it mathematically in 1961. Since the throughput rate is equal to 1 / cycle time, Little's Law can be written as:
Flow Time = W.I.P. Inventory x Cycle Time
The Process Bottleneck
The process capacity is determined by the slowest series task in the process; that is, having the slowest throughput rate or longest cycle time. This slowest task is known as the bottleneck. Identification of the bottleneck is a critical aspect of process analysis since it not only determines the process capacity, but also provides the opportunity to increase that capacity.
Saving time in the bottleneck activity saves time for the entire process. Saving time in a non-bottleneck activity does not help the process since the throughput rate is limited by the bottleneck. It is only when the bottleneck is eliminated that another activity will become the new bottleneck and present a new opportunity to improve the process.
If the next slowest task is much faster than the bottleneck, then the bottleneck is having a major impact on the process capacity. If the next slowest task is only slightly faster than the bottleneck, then increasing the throughput of the bottleneck will have a limited impact on the process capacity.
Starvation and Blocking
Starvation occurs when a downstream activity is idle with no inputs to process because of upstream delays. Blocking occurs when an activity becomes idle because the next downstream activity is not ready to take it. Both starvation and blocking can be reduced by adding buffers that hold inventory between activities.
http://www.netmba.com/operations/process/analysis/ (viewed at 17/04/09)
Dealing with the customers complain impressive burger adopt the following steps to reduce the customers complains.
They should motivate their staff by paying extra rewards
They should hire committed and skilled staff
The management should be flexible about staff shifts and timing
Staff should be allowed for socializing
Staff shouldn't have extra burden of work
Impressive Burger should adopt customer orientation based services to solve the customer problems
To reduce the numbers of complains knowledge management system should be introduced
Less number of staff and machinery problems can be solved by the following ways:
They should introduced the small machines to improve the operation in this way they only need one person to operate the machine and to get the job done and also if the any machine broke down while working they don't need to stop the whole process they can get the work done by other machine.
Impressive burger management should hire part time staff for the peak times that they can help the regular staff member to get the work done on time this also will help the impressive burger to save revenue.
They train their worker time by time if it necessary.
To decrease the waste and stock level impressive burger management should take the following steps:
They should introduce lean production
They should introduce the Just-in-time method
Lean production is an approach that aims to maximise use of available resources, thereby reducing waste and inefficiency. (Robert Johnston, 2008)
So we can say lean operation uses all the available stock and don't let the level of stock to increae and reduce the waste level as well by using lean production Impressive Burgers can save revenue and get better NPV.
In time is a model applied to production process of all types. It aims to reduce the cost of cost of holding excessive stock and and avoid duplicating effort.(Anil Kumar, 2006).