Assignment

Analyzing the Operations at the Juice Corner

Course:
Production and Operation Management
Submitted to:
Sir Nayyar Butt
Dated:
3rd April, 2019
Submitted by:
Abdul Rahman-017
Gulfam Ashraf-181
Sajjad Hussain-041
Abdul Rahman-429

DEPARTMENT OF MANAGEMENT SCIENCES

COMSATS, University OF INFORMATION TECHNOLOGY

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 Table of Content
Abstract pg 3
Introduction
About the business, and its operations in brief pg 3

Discussion
Description of 4v’s pg 3
Volume pg 3
Variety pg 4
Variation pg 4
Visibility pg 5
Analyzing the Performance Objectives pg 6
Cost pg 6
Dependability pg 6
Quality pg 7
Speed pg 8
Flexibility pg 8
Impact of performance objectives on process design pg 9
Speed inside the operation pg 9
Flexibility inside the operation pg 9

Conclusion pg 10

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Abstract
There is need of a juice corner to enrich the environment with freshness of juice
and salad items in the university. On top of that, to provide a relaxing sitting
arrangement to enjoy the free time. The juice corner is the way to promote the
fresh items (i.e. juices and salads) and reduce the use of carbonated drinks and
canned stuffs. As we have done the interview of the in charge person, according
to him they have many other branches in different universities. They are have
experience of more than 5 years and have become juice and salad experts. Deal
in a wide variety of fresh fruit juice, and is an establishment that primarily prepare,
serve and sell fresh fruit and chickpeas salad. Our task is to observer and analyze
their business and find solution to the problems if they are having.

Introduction
The juice corner consists of two shops or sections one with the fresh juice and the
other with the fresh salad. Both have different quantity of works and require
different qualified staff. One is related to the juices and the other is related to the
cutting of fruits and vegetables. To make most effective use of its operations while
ensuring that its customers are satisfied with the quality, cost, availability and
even quantity of services or goods. The means to achieving this are to efficiently
produce goods and services through effective business processes, production
functions and controls. There are varying measures of optimization such as in the
variety of output, the degree of operational visibility to the customer, volume of
the output and variation on the demand of the product and services.

Description of 4 v’s
Volume
The volume in the juice shop is considered low because the juice and salad they
are providing h refers to low repeatability and less systematization. So the juice
shop does not makes and prepare one type in bulk quantities as it could differ in
the quality. It makes the product based on the demand they received from the
customer. The juice shop volume is low as they have a standard product line and
the demand for the juice and salads is a bit different as every customer has a
different taste and for that the systematization for the juice is low. There are less
number of employees which do the same task. However, they have eight types of
juice and 8 type of shakes so they cannot focus on one product they cannot make

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a single product repeatability, same goes for the fruit salad which are in five types.
As the variety is high so the product cannot be repeatedly made by the employee
so for that they cannot focus on one product because the demand for the product
is different every customer have different demand so the volume of the juice and
shake shop is low. If the volume was high they would be specialized in some
products and would had kept the juices and salad ready before the customer gave
an order and no changes could be made. Comparatively the cost effects is such a
way that it would be less if the products a formed from a system.

Variety
As talking about juice corner, then they offer very limited variety e.g. fruit chat,
Chana chat, Gol gappay, mix chat. The variety of juices is fine but they can
introduce more of them. All the ingredients are prepared backside where the
boiling is done and then displayed to be assembled. When order place then it takes
3, 4 minutes to place the order. As the variety is low so it is well-defined but if its
high then needs more employees to work. Variety leads to the volume, if variety
high then they make well designed order for doing things so that they provide
better services. The product is fresh, delivered quickly and made to the exact
specifications of the customers. If variety is high, then they may hire more staff
and require more area so it become difficult in the present area of juice corner. As
they offer same menu daily, they need to change this thing, people getting bore
and want to try something different. They offer salad and variety of juices so that
they attract more attention. In current situation we try same things daily. Also
they are improving their services in offering variety because variety leads to
volume. As they offer low variety that why the price is low but on the other hand
if they offer high variety then cost automatically rises. They need more employees
and machines for juices. In juice section they offer different juices. People are well
educated and food lovers but they usually offer the same juices they need to add
some more juices with large size as well. Price may be high but if they make a
proper menu so that students know what new they try. There is only one person
on counter, if they offer high variety then must need to heir more staff otherwise
it is difficult to run as in rush time they take more time to deliver juice.

Variation
Demand is not always constant the demand can change over time due to many
reasons and operations management is need to understand such type of
variations in business. To recognize these changes help you to increase your
operation performance. In the juice shop at university, I have realized that some

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students those who are not buying anything but some are a part of rush at the
juice point which can also attract those students who are as they feel that
something good is available in those products. As high variation shows flexibility
in the menu of the juice shop which keeps on changing as per the season changes.
To let the variation play it role in the satisfaction of the students. Consider the
demand pattern for a successful summer because as the temperature increases
day by day and students search for shelter. At the height of the season juice corner
could be full to its capacity. So having less variety could be a small fraction of its
capacity. Such a marked variation in demand means that the operation must
change its capacity in some way, for example, by hiring extra staff for the summer.
The corner must try to predict the likely level of demand. If it gets this wrong, it
could result in too much or too little capacity. Also, recruitment costs, overtime
costs and under-utilization of tables and chairs all have the effect of increasing the
costs operation. Staff can be scheduled, food can be bought and tables can be
cleaned in a routine and predictable manner. This results in a high utilization of
resources and unit costs which are likely to be lower than those in hotels with a
highly variable demand pattern.

Visibility
The juice corner shows a sense of high visibility, as they are providing with a fine
and standard type of variety to amuse the students. The sitting area is enough but
it’s all about the peak hours where they have to manage the student’s time.
Talking about the time, the waiting time is not too much but due to rush at the
specific time quality may vary a bit. Making the students satisfied by knowing their
perception of making the changes in the product. Here you can see the product
made in front of you and it is easy to build trust with the students. But there is a
slightly more difficult dimension of operations to predict. It refers to how much
the operation is exposed to its customers. But even customer processing
operations have some choice as to how visible they wish their operations to be as
it is a juice corner proper shown hygiene matters for achieving good visibility. At
the juice corner, high-visibility operation, customers will directly experience most
of its ‘value-adding’ activities. Customers will have a relatively short waiting
tolerance, and may walk out if not served in a reasonable time. Customers’
perceptions, rather than objective criteria, will also be important. If they perceive
that a member of the operation’s staff is discourteous to them, they are likely to
be dissatisfied, so high-visibility operations require staff with good customer
contact skills. Customers could also request goods which clearly would not be sold
in such a shop, but because the customers are actually in the operation they can

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ask what they like! This is called high received variety. This makes it difficult for
high-visibility operations to achieve high productivity of resources, so they tend to
be relatively high-cost operations. Conversely, a web-based retailer, while not a
pure low-contact operation, has far lower visibility. The time lag between the
order being placed and the items ordered by the customer being retrieved and
dispatched have to be in minutes as in the shop. This allows the tasks of finding
the items, packing and dispatching them to be standardized by staff who need few
customer contact skills. Also, there can be relatively high staff utilization. The
web-based organization can also centralize its operation

Analyzing the Performance Objectives

Cost
This objective looks at how much variation there is in the unit cost of a product as
measured by changes in a variety of factors, including the volume and the variety
of the products. Products that feature a greater variety tend to sport lower
volumes and higher unit costs and vice versa. One major operational objective of
the juice shop could be the cost factor where the market competitiveness is
especially based upon the cost effectiveness. The appropriate cost can be
identified for producing goods and services and it help a shopkeeper to return on
investment. Through this they create competition in the market and attracting
more customers towards them. The cost of product and service influence by
volume of production, variety, variation and the visibility. The management
through these factors improve the juice shop quality, speed, dependability and
flexibility as well. They are getting some external reward and they also save their
operational cost. They have to need improve the culture of shop and train or
educate the employees so that they serve with very efficient manner. They should
need to improve busy schedule of customer arrival. They should offer more
beverages in the afternoon session so that they attract more customers. And also
negotiate on their prices and add more products in their product line.

Dependability
Actually dependability mean doing the things in time for customers to receive
their goods or services exactly when they are needed, or at least if they have
promised. Customers might judge the dependability of an operation only after the
product or services has been delivered. Initially this may not alert the emergency
of services as the juice shop authority might get think that the supply product are

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all enough for customers and they give least importance to operations of the retail
services. Dependability mean being on time .in other words customers receive
their products or services on time, furthermore, in terms of dependability it can
also that the juice shop promise delivery the second time after it failed to be
delivered first time . This is what customer examine before being loyal to juice
shop. Hence both factors affects external and internal.

Dependability affects the likelihood that customers will select the service. They
have already consumed it .over time however dependability can override all other
criteria. No matter how cheap or affordable a juice shop is, if the service is always
late, delivery not on time, or product out of stocks, or customers having to wait in
long queues, then obviously clientele may swift to competitors. Therefore the
actual juice may have to apply techniques to retain its customers. Inside the
operation dependability has a similar effect. Dependability is known to save
money and give stability. The internal effect of dependability is save time how
effectively internally they are working on the juice shop ,second is save money as
we asked from juice shop that how you people work for internally damage ,the
third one the stability the very important one is that when we asked from the
juice shop they said our juice shop have pretty stability they give us an example
that when we have students week in university our demand goes high then we do
stable that in that week the volume of juice shop goes high and they said we are
able to satisfy our customer.

Quality
The quality is the most visible part of what an operation does. It is something that
the customer finds it easy to judge about the operations and clearly tells that
satisfied or dissatisfied. If we talk about juice corner, then according to
observation the Chana chat likes the most, then comes the fruit chat and Gol
gappay. But they focus more to improve Chana chat as people demand more for
this. The overall quality is good but during observation, the thing seems is quality
reduce while in rush hours. The reason is due to the lack of staff and there is only
one person which deliver the order, so it's difficult to make the order according to
demand. As sometimes in a rush hour, they are getting nervous and masalas or
other things are putting more or less so this thing reduces the quality.

At the juices, we come to the result that overall operations are good as the fresh
fruits, according to demand. According to them they are having their main focus
on quality and never compromise on this. They reduce their profit just to put more
focus on quality and cleanness. But at the rush hours, the service and quality may

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reduce due to lack of machine and staff. In rush time as they grind less and quickly
deliver the shake and juice which automatically reduce the taste. They need to
improve this if they want to increase sales. It also seems that they replace the juice
if the students are not satisfying. Quality is critical to satisfying your customers
and retaining their loyalty so they continue to buy from you in the future. Quality
products make an important contribution to long-term revenue and profitability.
They must care about the health of the students as staff use gloves and all the
things are well covered. If they did not improve this, they are unable to get the
advantage of value-based pricing.

Speed
You would want to do things fast, minimizing the time between a customer asking
for goods and services and the customer receiving them in full, thus increasingly
the availability of your product and services and giving a speedy advantage. If we
talk about juice corner, then ingredients are prepared outside and assemble the
order after the order placed. It may take 4-5 minutes to prepare the order and
may take more in rush hours. After observation we come to point that there is lack
employees and machines that effect on speed factor. As there are almost 350-400
students visit juice corner, there is only one person on counter that takes order
which makes the processing time delayed. They hire more employees that one
takes order and other prepared accordingly and deliver. Actually it saves times
and reduce the risk of low quality or deliver time reduce. As we see in rush time
students demand to deliver quickly but due to lake of resources and staff they are
unable and may put the ingredients high or low. They need to standardize their
process. Once you learn to move quickly and maintain speed, a culture of speed
naturally forms, where standards for speed are just as high - if not higher - than
those of consumers. The benefits are obvious, but they can't be overstated. With
everyone and everything moving faster, innovation and efficiency go through the
roof, blowing back your competition and blowing away your customers.

Flexibility
Changes done at the juice corner shows how flexible you are. Changing your
operations is some other way keeps the students active or else they will become
bored. Ranges are there but they do not change or add more items to the menu
which lack in flexibility. At the peak hours, the delivering time delays which can be
adjusted by those staff which is not doing work gives a helping hand so that the
work gets faster. The arrangement of the shop matters a lot as flexibility in a way

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of two counters are kept to take orders which speed the process and also saves
time.

Impact of performance objective on Process Design

Speed inside the operation
Inside the operation, speed is also important. Fast response to external customers
is greatly helped by speedy decision-making and speedy movement of materials
and information inside the operation. And there are other benefits.

Speed reduces inventories

Take for the juice corner, the items in the inventory should be checked before the
rush hours to overcome the delaying error for the students ease and they do not
get annoyed. Yet again, it waits by the trackside until it is eventually fitted to the
automobile. The material’s journey time is far longer than the time needed to
make and fit the product. It actually spends most of its time waiting as stocks
(inventories) of parts and products. The longer items take to move through a
process, the more time they will be waiting and the higher inventory will be.

Speed reduces risks

Forecasting tomorrow’s events is far less of a risk than forecasting next year’s. The
further ahead companies forecast, the more likely they are to get it wrong. The
faster the input time of a process the later forecasting can be left. Considering
some extra machines with some extra staff. So the time from 5 minutes can be
taken to 2 minutes or less which also reduce the risk of losing customers.

Flexibility inside the operation

Developing a flexible operation can also have advantages to the internal
customers within the operation.

Flexibility speeds up response

Fast service often depends on the operation being flexible. At the juice corner, if
the suddenly a group for students come and order juices and salads so they have
to cope with a sudden arrival of order or may it be the sudden order from the staff
to provide them with juices and above that deal the students those are coming to
order as well. They clearly needs to deal with it quickly. Under such circumstances
a flexible corner which can speedily transfer extra skilled staff to provide the fast
service which the customers are in need.

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Flexibility saves time
At different times the, staff have to treat with some complaints daily. Each student
is an individual with individual needs. The staff cannot take time to go to every
student, instead they must have the flexibility to quickly deal with the complaint.
They must also have some flexible facilities or machines so that time is not wasted
waiting for it to be available. The time is being saved because they are flexible in
‘changing over’ from one task to the next.

Flexibility maintains dependability

Internal flexibility can also help to keep the operation on schedule when
unexpected events disrupt the operation’s plans. For example, if the sudden entry
of orders to the shop requires fast procedures, as routine operations will be
disordered. This is likely to cause distress and considerable inconvenience. A
flexible corner might be able to minimize the interruption by possibly having
reserved staff for the rush hours.

Conclusion
Our task is to observer and analyze their business and find solution to the
problems if they are having. There are varying measures of optimization such as
in the variety of output, the degree of operational visibility to the customer,
volume of the output and variation on the demand of the product and services.
Comparatively the cost effects is such a way that it would be less if the products a
formed from a system. Demand is not always constant the demand can change
over time due to many reasons and operations management is need to
understand such type of variations in business.

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