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Operations management can be defined as the planning, schedulingand control of the activities that transform inputs into finished goods and services. Operations management is related with the strategy of the organisation.
In this coursework, we will demonstrate the relationship between the operations management and the strategy of the organisation with the help of a corporate entity.
The corporate entity chosen is McDonald's Corporation. Their introduction of the "Speedee Service System" in established the principles of the modern fast-food restaurant. Today McDonald's restaurants are found in countries and territories around the world and serve nearly 54 million customers each day.
Let us know discuss the key operations decisions and its relationship with the strategy. Therefore planning of products and services is one of the most important operation of any organisation. It involves designing products with both economy and quality in mind, which a customer will find attractive, be able to understand and quickly able to use with minimum risk and which delights him or her by its performance or flavour or durability etc.
It has to keep on adding new products to its menu so as to meet the needs of the customers as their needs and preferences are constantly changing. For instance, the increasing preference of consumers towards healthy food made the restaurant add healthier food items to its menu. Similarly it has to add new products for different seasons, for examples hot coffee in winter and milkshakes in summer.
Capacity planning and control is the task of setting the effective capacity of the operation so that it can respond to the demands placed upon it. This normally means determining how the operation should respond to fluctuations in demand.
Operations managers usually distinguish between short, medium and long-term capacity decisions. For short- and medium-term capacity planning, the capacity level of the operation is adjusted within the fixed physical limits that are set by long-term capacity decisions.
This is also referred to as aggregate planning and control because it is necessary to aggregate the various types of output from an operation into one figure.
It also have to make sure that it has enough stock of ingredients to prepare food items which is very important because if one ingredients fall short then the whole process of making food may halt. For instance if the buns required for making hamburgers falls short then the restaurant may not be able to sell any hamburgers even if it has enough quantities of other ingredients.
Success or failure of any organisation may well depend on the location where it is situated. Therefore it is very important for businesses to choose an ideal location. Businesses may choose location on the basis of various factors such as proximity to the source of raw material, cost-effectiveness, proximity to customers or suppliers, competition in the area, transportation availability and cost, availability of resources, and availability of right labour.
McDonalds Restaurants also have to plan their location in such a way so that maximum customers visit their restaurants.
Therefore McDonalds prefer locations such that it can have large customer base, transport access and availability of parking space. Moreover it also prefers location that are suitable for raw material delivery, that is availability of ample space for deliveries of raw material.
After developing the product the businesses have to develop processes for making and supporting the product. Organisations have to identify appropriate processes which will be needed to achieve required level of output of the planned goods and services at right quality standards.
Organisation considers both the traditional methods in which the organisation has handled and processed its products and services and the possible alternatives which currently present themselves. That is, it considers the advancement of technology, computing power, and evolving managerial expertise.
Bicheno, ; p99 In McDonalds restaurant also, the operations manager develop and establishes the process of cooking food items so that food is prepared using that method which helps them to maintain the speed and the quality of the food.
Moreover it also designs processes so that the health, safety and hygiene issues are taken into consideration. Also the managers keep on introducing latest equipments with the advancement of technology so as to bring pace, perfection and quality in the product. Layout is the arrangement of facility to provide working, service and reception, storage and administrative areas.
The layout is designed by traditional techniques using templates, scale plans, string diagrams, and travel charting as they have been proved as low-cost methods of achieving either optimal or near optimal layout plans.
Poor layouts can greatly reduce the overall capacity and overall productivity. Therefore care must be taken by organisation when designing layout.
Bicheno, ; p In McDonalds Restaurant also layout designing is a very important operation. A proper layout of the equipments in the kitchen is very essential to ensure preparation of quality food in less time.
It also designs its layout keeping in mind the health and safety issues. It also designs layout in such a way that needs of supervision is minimised.
Another factor that is considered is the cost of production which also depends on the layout. The job design should try to meet the needs of both the job holder and the organisation. Thus each job must be reasonable compromise of technical, economic, and behavioural feasibility.
The person holding the job must be capable of performing the required tasks with the resources available to them. The feeling that people derive from a job affects their motivation to perform it.Besides the owners, directors and other chief executives, each branch of McDonalds in the world is run by a core team the members of which are known as restaurant level executives.
The following are the main executives working at this level for the smooth management of each branch. The sum total of all surroundings of a living organism, including natural forces and other living things, which provide conditions for development and growth as well as of danger and urbanagricultureinitiative.com also environmental factors.
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When the news broke last week that the. INTRODUCTION - OPERATIONS MANAGEMENT. Operations management can be defined as the planning, scheduling, and control of the activities that transform inputs into finished goods and services.
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