Operation management is the activity of managing the resources which are devoted to the production and delivery of products and services. The operational function is the part of the organisation that is responsible for this activity. Every organisation has an operations function because every organisation produces some type of product and/or services.
Operations management is concerned with managing the resources that directly produce the organisation service and products. The resources are generally consist of people, material, technology and information but may go wider than this. These resources are brought together by a series of processes so that they are utilized to deliver the primary service or product of the organization. Thus operation management is concerned with managing inputs (resources) through transformation processes to deliver outputs (service or products).
Overview of Impressive Burger:
Impressive Burger was started business 10-years ago with the aim of providing fast take away food to their customers with the quality food and in less time than that of their competitors. They had achieved in the start of their business when they were able to serve each customer their order within 4-mintutes from a ordering at the till to receiving their complete order to take away. Each restaurant of Impressive Berger offered a simple menu structure with a choice of six set meal options
- Burger, Chips & Soft Drink
- Cheese Burger, Chips & Soft Drink
- Chicken Burger, Chips & Soft Drink
- Vegetarian Burger, Chips & Soft Drink
- Chicken nuggests, Chips & Soft Drink
- Chicken Salad, Garlic Bread & Soft Drink
- Hot Dog, Chips & Soft Drink
Customers were also offered a choice of size of each meal: Regular, Medium and Large, this size varied only for drink and chips not for burger. Each restaurant has placed their order on the bases on report which is generated by the restaurants own till system. These orders take one week for arrival for shipment.
The company has grown to chain restaurant operations and 12 months ago management has decided to change in the menu. The company was offered more options for the customers and attract customers seeking healthier options. The menu was increased by further three options:
Evaluation of Impressive Burger:
Operation management is concerned with the managing input (resources) through transformation process to deliver output (service or goods).There are following input, transformed resources and output for Impressive Burger.
Main Input of Impressive Burger:
- Materials (buns, chicken, vegetable, potatoes, spices)
- Equipment (fryer, oven, microwave and cleaning machines)
- Labour (staff)
- The resources that are treated transformed or converted in a process, usually a mixture of material, information and customers. Transformation system
- Services(frying, cooking, cleaning, customer services)
Output of Impressive Burger:
- Final products (burger, nuggets, chips)
After expending the operation of all Impressive Burger restaurants the following things happened as under:-
- Meal options increase on menu.
- Number of staff and machinery remained same.
- Increased in customer number.
- Serving time increased and takes 9-minutes for every order.
- Overall profit decreased.
- Stock increased by 20%
- Increase in waste.
Specific Goals of Expending Operations of Impressive Burger are:
- Attract new customers.
- Encourage existing customers to visit more often.
- Build product loyalty.
- Create enduring profitable growth.
Planning and controlling
The design activities should have put all the operation resources in place but to work effectively they need to be planned and controlled. Planning and controlling is the activity of deciding what the operation resources should be doing then making sure that they really are doing it. In Impressive Burger plc you can easily see that there is lack of proper planning and controlling activity, as they increase their menu they didn't increase their staff and machines which become one of the main cause of their expanding failure and also they didn't train their staff for more customers that why the quality of food suffer and customers become unhappy of the service.
Managing change in an organisation is very difficult thing; if change can be manage effectively then new operation system can work effectively. Impressive burger didn't manage the change properly they just impose the change on the staff which result in poor service and poor quality of food. The mistake which Impressive burger did that it didn't train their staff before implementing the change in the company. Staff must be trained and given experience, new equipment and procedures must be developed and honed, new approaches to management must be tested, shaped and given time to insinuate themselves in the organisation atmosphere. Sometimes companies are not aware of the full potential of the capabilities they are developing until a sudden insight incident reveals how they can be exploited. This is what has happen to the Impressive burgers and they have been exploited big time because of the change as their staffs was not train properly for the increase in turnover and heavy customer rate.
Process of operation management
Process of operation management has a very deep impact on the progress of the organization. There are four different processes. All operations processes are similar that they all transform input resources into output product and services. For impressive burgers PLC these dimensions plays an important role for the expansion of business.
- Volume - Volume has important implications for the way Impressive Burgers operations are organised. The items on the menu are more as compare to the number of staff in the restaurant. Thus because of this there is less chances of repeatability and systemization in the company as compare to other big organization as McDonald and KFC. Like in McDonald there hamburger serve millions of people around the world in a day. The task people doing are repeated again and again by the same person, one person assigned to cooking the burgers, another assembling the buns, another serving and so on.
- Variation- probably 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. 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 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.
- Visibility- This is a relatively simple issue. This means how much your business operation is exposed to the customer. Some customers can ask for the operations to be fully visible to them as they are main personal of operations. For impressive burgers visibility in not an issue for their operation failure as far as I think.
- Variety- There are two important features to measuring variety for restaurants. The first is the range of different foods that the impressive burger serves. One is the number of items in the menu to get an indication of this and other factor is whether the impressive burger will customize food to your customer preference. For example, does it serve burger good, excellent or superb? Does it allow you to choose the whether you want fries or salad? Another evaluation from expansion of business of Impressive burgers can be seen that they have had increased the variety in their menu but they didn't increase the staff with that which has caused them trouble.