Operation management is a term used or the activities which produce and deliver product and services.in many small organisation operation management performed by people who perform task and activities within the organisation. First of all we use the four V's of operations, volume, variety, variation, and visibility. Before we tackle the activity think about how we could measure each of these dimensions for the operations that we will visit,
Volume- It is important here to distinguish between the actual volumes in this case the number of customers served that the impressive burger has to cope with, and the maximum it could cope with. This is called the capacity of the operation. Capacity is easier to measure because it can be calculated by multiplying the number of seats in the takeaway by the average number of customers per hour (calculated by timing the customers) and by the number of hours the takeaway is open. In other words, imagine there is a queue of people outside the restaurants, what is the maximum number of customers that the impressive burger could serve? Contrast this capacity figure with the actual number of customers in a day that the restaurant serves. You could ask the restaurant manager for this information or make an approximation from your own observations at different times of day.
Variety- There are two important aspects to measuring variety for restaurants. The first is the range of different foods that the impressive burger serves. Just count the number of different items on the menu to get an indication of this. The other factor to take into account is whether the impressive burger will 'customize' food to your own preference. For example, does it serve burger well-done, medium and rare? Does it allow you to choose the fillings for your sandwiches? Etc.
Variation- Possibly the easiest way to measure variation is the ratio of peak demand in a day or a week, to the lowest demand during that day or week. Again, you could try asking the impressive burger manager for this information or (if you have time) make observations throughout the day or even the week. So, for example, if the restaurant was busy up to its full capacity for part of the day but, at its lowest, was only ten per cent full, then the peak to trough ratio is 10:1.
Visibility- This is a relatively simple issue. Simply ask, how much of the preparation of the food do you witness. It is unusual to see every aspect of food preparation, for example preparing the vegetables, slicing the bread etc. But you may see food being cooked and assembled in some burger restaurants. The other way of looking at this issue is to ask yourself whether the preparation of the food is being deliberately put centre stage in the restaurant. Some restaurants deliberately do this so as to entertain customers while they are waiting for their food.
Function of Operation management
The role of the operations function means something beyond its obvious responsibilities and tasks it means the underlying rationale of the function, the very reason that the function exists.
- The implementer of business strategy.
- The supporter of business strategy.
- The driver of business strategy
Two things are important in understanding these roles. First, they are stated in order of difficulty and in order of importance. Implementing business strategy is a very basic responsibility for operations, supporting business strategy is what most operations should aspire to, but driving business strategy is only possible if the operation really does have unique capabilities. Second, they are cumulative in the sense that an operation cannot be a supporter of business strategy unless it has skills as an implementer, and cannot drive business strategy unless it has the skills to support the business strategy.
Volume-variety and design
In the four V's of operations were described. These were volume, variety, variation and visibility. The first two of these - volume and variety - are particularly important when considering design issues in operations management. Not only do they usually go together (high variety usually means low volume, high volume normally means low variety) but together they also impact on the nature of products and services and processes which produce them.
The volume and variety of an operation's activities are particularly influential in determining the way it thinks about its performance objectives. The figure below illustrates how the definitions of quality, speed, dependability, flexibility and cost are influenced by the volume-variety position of the operation.
Quality in a low volume-high variety process such as an architects' practice, for example, is largely concerned with the final aesthetic appearance of the building and the appropriateness of its detailed design. In an exceptionally high volume-low variety process, such as an electricity supply company, quality is exclusively concerned with error-free service - electricity must be constantly available in the correct form (in terms of voltage, frequency, etc.). The meaning of quality has shifted from being concerned primarily with the performance and specification of the product or service towards conformity to a predefined standard, as we move from low volume-high variety operations through to high volume-low variety operations.
Speed for the architects' practice means negotiating a completion date with each client, based on the client's needs and the architects' estimates of how much work is involved in each project. Speed is taken to its extreme in the electricity utility where speed means literally instant delivery. No electricity company could ask its customers to wait for their 'delivery' of electricity. Speed therefore means an individually negotiated delivery time in low volume-high variety operations, but moves towards meaning 'instant' delivery in some high volume-low variety operations.
Dependability in processes such as the architects' practice means keeping to each individually negotiated delivery date. In continuous operations, dependability often means the availability of the service itself. A dependable electricity supply is one which is always there. So dependability has moved from meaning 'on-time delivery' in low volume-high variety operations to 'availability' in high volume-low variety operations.
Flexibility in low volume-high variety processes such as the architects' practice means the ability to design many different kinds of buildings according to its clients' various requirements. With the electricity company's process, the need for product flexibility has disappeared entirely (electricity is electricity, more or less) but the ability to meet almost instantaneous demand changes through volume flexibility is vital if the company is to maintain supply. Flexibility has moved from meaning product flexibility in low volume-high variety operations to volume flexibility in high volume-low variety operations.
Cost, in terms of the unit cost per product or service, varies with both the volume of output of the operation and the variety of products or services it produces. The variety of products or services in low-volume operations is relatively high, which means that running the operation will be expensive because of the flexible and high skill levels employed. Further, because the volume of output is relatively low, a few products or services are bearing the operation's high cost base. Also, and more significantly for the operation, the cost of each product or service is different. At the other end of the scale, high-volume operations usually produce similar products or services, output is high, so that whatever the base cost of the operation, it is shared among a high number of products or services. Cost per unit of output is therefore usually low for operations such as the electricity utility but, more significantly, the cost of producing one second of electricity is the same as the next second. Cost is relatively constant.
Change the face nothing will change but facing to the change everything can change.
The process of making things different is known as CHANGE. like impressive burger changed its menu to get more customer attention but because the lack of staff and its training business started to decline.
Organisational change is an on-going process,
Change can make things different
- Change is an ongoing activity
- Change creates new opportunities and challenges.
- Change is extensive in nature
- Change is impossible to avoid
- Help organisation to move from the present state to a desire state.
- Bring new opportunities for the business
Reasons for change
There may be a change in leadership, structural change, adoption of new technology, there may be a decline in profit like impressive burger because of change, industrial relation problems.
Change in the policies by the government, technology advancement, demographic changes, change in the market, changes in the economy conditions.
There are different types of changes,
Planned and unplanned change
Rate of change can be slow or fast
Remedial and development change
Wide and subsystem change for organisation
Impressive burger point of view it brought some risks and uncertainties and brought new challenges for the staff and decline in the profit was big threat to the organisation.
Failure reason for Impressive Burger
Impressive burger failed its operation because of following reasons,
Change in impressive burger menu brought some uncertainties and new challeneges for the organisation which created a threat for the company because staff was not ready for a change because of unplanned change.
People don't resist change , they resist being changed. (peter senge)
If u want to make enemies, try to change something. (Woodrow Wilson)
Impressive burger made change because of changing customer needs and preferences.