Your Business, Part 1 1

Your Business, Part 1

BUS 515 Operational Management
Your Business, Part 1 2
Formulate an operations strategy for your business.
Operations Strategy is a plan for using the operational capabilities of a company
to decide how it will complete. Nicos estaurant will implement operation strategies
such as increased nutritional le!el, portion si"e and high #uality of food. $s we %now, the
public impression towards fast food is bad& as a result we need to impro!e this area by
implementing operation strategy to maintain the standard of #uality and safety of food
ingredient to ma%e sure consumers are comfortable with ha!ing food pro!ided by the
business. 'n addition, details and information about the nutrition of the meal will be
pro!ided to attract new consumers who are interested in healthy lifestyle.
(he business operations strategy will be to pro!ide the best food at the shortest
possible time. )e ha!e determined that the !alue to the consumer is in offering a
healthier fast food option that meets dietary guidelines and satisfies the consumers needs
for con!enience and gratification. )e stri!e to pro!ide #uality food at its best.
Operation strategies in an organi"ation should be cost effecti!e or in other words
down in cost of production and operation to the lowest possible. *or instance, )al+,art
is one of the most successful and largest retailers in -.S. history. 'ts operations strategy is
to use low in!entory le!els and prices to generate faster sales based on low prices and
!alue. .eeping in!entory low allows the company to %eep prices low for their customers,
as well as replace products with new items once in!entory is gone. (his also increases
demand. /igh demand combined with low prices leads to increased sales for the
company 0Newton, 12113. (herefore, it is important to include competiti!e pricing and
costs as main factors in the organi"ations strategy.
Your Business, Part 1 3
Explain how your operations strategy impacts product design and process selection
for your business.
Product design is the process of determining all the features and characteristics of
a product or ser!ice. (he design of the product or ser!ice must match the business
strategy in order for the company to be successful.
(he operations strategy impacts product design. (he planned number of ser!ings
at Nicos restaurant will be to use specially designed recipes. (his can help to reduce the
amount of lefto!er food if there has been o!erproduction, and also will help to pre!ent
shortages of ser!ings. (he best possible ingredients will be used, and the process of
preparation and ser!ing will be designed so as to reduce the time ta%en for ser!ing the
dishes to the customers. (he goal is to focus on achie!ing higher #uality than competitors
in any aspects of their product. (herefore, operations strategy will affect both the
de!elopment of dishes as well as the design of process that will be used to ser!e our
dishes.
Determine the key components of supply chain management for your business
including structuring, sourcing, purchasing, and managing the supply chain.
Supply chain management is important for the restaurant because it determines
the o!erall structure of the business and how it will pro!ide to the customers. $ccording
to aipur 0n.d3 Supply chain management typically establishes the process of planning,
sourcing, procuring and controlling the mo!ement of the raw material to finished goods
right from the hands of the suppliers into the lap of the customers. (hese acti!ities can be
seen as originating from an order of the customer to the deli!ery of the products which
will interconnect !arious sta%eholders from customer to retailer to distributer and
Your Business, Part 1 4
wholesaler to manufacturer to !endor and supplier.
(he structure of the restaurant supply chain will be to purchase supplies directly
from producers. )e will be using e+commerce in order to enhance the purchasing
process. (he restaurant will be able to trac% its in!entory more accurately. $s a result,
purchasing should become less of a guessing game and more a planned forecasted
endea!or.
(he sourcing will be from !egetable growers and meat producers. (his structure
will ensure freshness and high #uality. (he purchasing will be done in bul% to ensure that
the restaurant gets economies of buying. )e will ha!e to ensure proper information flow
which in!ol!es transmitting orders and updating the status of the deli!ery. (he Supply
4hain ,anagement system can assist with this as it will reduce in!entory along with the
products that are a!ailable when needed.
,anaging of the supply chain will be done by establishing 'nternet based lin%s
with the main producers so that they %now e5actly when product should be deli!ering.
(his should help reduce the in!entory carrying costs. (here is a great need for
communication in order to achie!e the ultimate goal that gains the profit and ad!antages
for the business.
Prior to this we need recognition of supplier #uality to ensure their raw materials
are of high #uality because it can help to reduce negotiations and reduced monitoring of
supplier #uality in the production process. (his can lead to increasing producti!ity of the
restaurant as trusting relationships are de!eloped.
,anaging small !olume of products can lower the cost and monitor the #uality of
the products much easier. (herefore, understanding the uncertainty of customer needs and
Your Business, Part 1 5
mar%et changes are !ery important because it enables them to manage efficiently.
Since customer e5perience is one of the competiti!e ad!antages, high
responsi!eness is gi!en more priority. *or this, information transferred from customer to
ser!er and finally to chef should be correct and #uic%. )hile this will be done manually,
the in!entory trac% will be done through a POS type system similar to the style at the big
retail shops.
Examine how the total quality management process is a strategy for a competitive
advantage for your business.
(he (otal 6uality ,anagement 0(6,3 philosophy of doing business emphasi"es
lowering costs by reducing waste, helping suppliers pro!ide #uality products and
satisfying the customer with #uality goods and ser!ices. 4ompanies that can produce
goods at lower costs than their competitors, while deli!ering #uality products that satisfy
their customers will ha!e an ad!antage o!er those companies that do not duplicate those
efforts. 'mplementing (6, can help a company gain a competiti!e ad!antage in their
business.
(o be effecti!e in impro!ing #uality, (6, must be supported at all le!els of a
firm, from the highest e5ecuti!e to the lowest+le!el hourly employee. (6, e5tends the
definition of #uality to all functional areas of the organi"ation, including production,
mar%eting, finance, and information systems. (he process begins by listening to
customers7 wants and needs and then deli!ering goods and ser!ices that fulfill these
desires 04liffsnotes.com3. /ence the reason 6uality control and #uality assurance
management are important roles in an organi"ation as it help produce or de!elop standard
Your Business, Part 1 6
#uality product.
(otal 6uality ,anagement is also established in the #uality control management
and the purpose of it is to ensure the #uality of products meet the re#uirements of #uality
standards.
(otal #uality management process at Nicos estaurant will begin at the suppliers7
premises. (he producers will be trained to produce and pac% the best !egetables and
meats for restaurant. (he truc%s will be re#uired to store each produce in such a way that
the high #uality of the supplies is maintained. (he efficiency with which the truc%s will
be unloaded and the produce stored in right conditions should preser!e the #uality of the
ingredients.
(he chefs will be trained to coo% the tastiest and healthy recipes. (he #uality of
coo%ing will be e!aluated on the basis of ele!en criteria and effort will be made to
impro!e the #uality of food. (he waiters will ser!e the dishes to the customers in the
restaurant with politeness and in a manner designed to complement the #uality of food
ser!ed. egular sur!eys of customers will be carried out to impro!e the #uality of food
ser!ed to customers.
$ customer that is satisfied or e!en pleased with ser!ices recei!e, is seen as !alue+
added. (hey will be glad to return to the restaurant and refer others to the business as
well. 4ustomer satisfaction is the ultimate ad!antage a business can ha!e o!er their
competitors.
Identify the key elements of ust!in!time manufacturing and its impact on quality
assurance for your selected business.
(he implementation of the 8ust in (ime 08'(3 method emphasi"es in the in!entory
Your Business, Part 1 7
system is to ensure the raw materials are fresh and are of high standard. (his will fulfill
the need of the restaurant to ensure high #ualities are met. $lso, it helps in reducing the
cost on perishable food by deli!ering at a gi!en time and eliminating waste.
Some other %ey elements of 8ust in (ime 08'(3 manufacturing used in #uality
assurance for the business are to reduce the setup times for each dish and impro!e the
#uality of the dishes. (he producers supplying the !egetables and meat will be re#uired to
pro!ide #uality assurance for e!ery pac%age they deli!er. (he moment the order is placed,
the ingredients and mi5es will be stored in the %itchen so as to reduce set up time.
8ust in (ime 08'(3 will also be used in the restaurant to reduce lead times. Studies
will be done to continuously reduce the coo%ing and the time ta%en by the waiters for
deli!ering dishes to the customer. $ fle5ible wor%force will be implemented at the
restaurant. (he chefs will be trained to do waiting wor% and waiters will be trained to do
coo%ing. 'n this way e!eryone will be cross+trained to do each others function. *inally,
there will be a control system in place to chec% the #uality of !egetables and meat
recei!ed, the time ta%en to coo% different dishes, the #uality and taste of each dish
deli!ered, and the time between the placing of an order and deli!ery of the order.
By the company following the 8ust in (ime 08'(3 method for its production
procedure will mean the in!entory le!els will be low which are sufficient to meet the
customers demands. (he implementations of the 'ntegrated Supply chain information
systems will not only help to increase the #uality standard but also reduce deli!ery period
and costs, and will also increase the companys position competiti!eness for future
growth.
eferences
Your Business, Part 1 8
4liffsnotes.com. etrie!e from http9::www.cliffsnotes.com:study;guide:(otal+6uality+
,anagement+(6,+.topic$rticle'd+<=>>,article'd+<=?1.html
Newton, 4. 012113. Operations Strategy @5amples. etrie!ed from
http9::smallbusiness.chron.com:operations+strategy+e5amples+1>AB2.html
Raipur, ! "n!#$! %&e't o( Suppl) '*ain Management on +ustomer
Satis(a'tion! Retrie,e (rom
*ttp-..opepiimraipur!/logspot!'om.2012.08.e&e't1o(1suppl)1
'*ain1management1on!*tml