Operation Management Essay

Purpose: The purpose of this assignment is to provide students with an understanding of the role and importance of operations management in the efficient and effective production of goods and services. It will enable students to realise that the ‘proper’ organisation of productive systems, and their interfaces with internal as well as external customers and suppliers, is essential if goods/services are to be produced on time, to cost and within the laws and regulations. Scenario. Impressive Burgers was established 10 years ago with the goal of providing fast take away food to their customers quickly and of a higher quality to that of their rivals. Each restaurant offered a simple menu structure with a choice of four set meal options. 1. Burger, Chips & Soft Drink 2. Cheeseburger, Chips & Soft Drink 3. Chicken Burger, Chips & Soft Drink 4. Vegetarian Burger, Chips & Soft Drink Customers were offered a choice of size of each meal: Regular, Medium or Large. The size of the chips and drinks portions varied but the burger size remained the same. Using this format they were able to serve each customer their order within 4 minutes from a ordering at the till to receiving their complete order to take away. Each restaurant places their orders with the suppliers directly based on the manager’s prediction for demand based on the reports generated by the restaurants own till system. These orders arrive in one shipment once every other week. The company has grown to a chain of restaurant operations and the management introduced a number of changes to the format 12 months ago in an effort to increase each business at each restaurants. The number of set meal options available on the menu was increased to offer more options to the customer and to attract customers seeking healthier options. The menu options were increased by a further three options: 5. Chicken Nuggets, Chips & Soft Drink 6. Chicken Salad, Garlic Bread, & Soft Drink 7. Hot Dog, Chips & Soft Drink In addition to these set menu additions the company also offered the option of changing the chips option on the set meals for either a Side Salad or for Potato Wedges. The restaurants themselves have not changed and the number of staff and machinery has remained at the same levels before the menu changes. Since these changes were implemented there has been a dramatic increase in turnover and the number of customers that are visiting each of their restaurants. However, overall profit has declined dramatically over the last 12 months and the company predicts that if it continues the company will report its first loss in its history within the next 6 months. The company is considering expanding its operations by opening a number of new outlets but want to identify the problems to the issues they are currently facing. The company has begun to investigate why the mixed fortunes have arisen and has identified a number of issues. Serving times have increased dramatically and it now takes an average of 9 minutes for a customer to be served and the number of customer complaints has increased. The main complaints include rude and agitated staff and incorrect or incomplete orders. The total value of stock held at each restaurant has increased by an average of 20% and waste has dramatically increased. The CEO of Impressive Burgers is worried about the current development and has recruited you as Operations Manager with the responsibility of rectifying the situation that the company is currently facing. Your first assignment as Operations Manager is to produce a formal report to the management which includes the following tasks: |Outcome |Assessment Criteria | |No(s) | | |1. Understand the nature and |explain the importance of operational management |1. 1 | |importance of operational | | | |management |explain the need to produce safely; on time; to cost; to | | | |quality and within the law | | | | |1. 2 | | | | | | | | | | |explain the link between operations management and | | | |strategic planning | | | | |1. 3 | | | | | | |produce a systems diagram to illustrate a typical | | | |business | | | | | | | | | | | | |1. 4 | |2 Understand the link between |explain the ‘Three Es’ (economy, efficiency and effectiveness) | | |operations management and | |2. 1 | |strategic planning |explain the tension between cost minimisation and quality | | | |maximisation |2. 2 | | | | | | |evaluate the significance of the five performance objectives | | | |that underpin operations management | | | | | | | | |2. 3 | | | | | | |explain linear programming | | | | |3. 1 | |3 Understand how to organise a typical production process | | | | |evaluate critical path analysis and network planning | | | | |3. 2 | | | | | | |explain the need for operational planning and control | | | | |3. 3 | | | | | | | | | | |produce a set of clearly defined operational outcomes | 4. 1 | |4 Be able to apply relevant | | | |techniques to the production |produce a network plan and indicate the resultant critical path| | |of an operational plan for a | |4. 2 | |typical business | | | | |explain how quality could be defined and maintained |4. 3 | |Assignment Tasks: | | | | | | |Assessment | | |Criteria | |You are required to produce a formal and written report to cover the underlisted tasks. | | | | | |Task 1 | | |Explain the importance of operational management in an organization such as Impressive Burgers and explain ‘Three Es’ (economy, | | |efficiency and effectiveness and its relevance in the industry in which Impressive Burgers operates. |1. 1,2. 1 | | | | |Task 2 | | |Critically evaluate Impressive Burgers’ approach to expanding their operation. | | | | | | | | | | | | | | | | | | |1. 2,1. 3,1. 4 | | | | |Task 3 | | |Discuss the reasons behind the problems the company is facing and make suggestions for rectifying the situation. | | | | | | | | | | | | | | | | | | | | | | | | | | | |3. 1,3. 2,3. 3 | | | | |Task 4 | | |Considering the effects on the operations, identify ways in which the overall operation could be improved and expanded further. | | | | | | | | | |4. 1,4. 2 | | | | Grading Criteria The assignment will be graded into Pass, Merit and Distinction against the following criteria: Pass: A pass grade is achieved by meeting all the requirements defined in the unit outcomes. Grading Criteria The assignment will be graded into Pass, Merit and Distinction against the following criteria: Pass: A pass grade is achieved by meeting all the requirements defined in the unit outcomes. |Merit & Distinction | |M1 |Identify and apply strategies to find appropriate solutions | | |Identify areas relevant for each task in the assignment and respond accordingly and professionally | |M2 |Select and apply appropriate techniques | | |Evidence of processing and synthesised complex information/data. | | |Appropriate learning methods/techniques have been applied | | |Report should have proper citations and reference list to all sources including your field-visit observations, books, magazines and other | | |material used for research | | | | |M3 |Present and communicate appropriate findings | | |Present your views coherently and logically | | |Demonstrate real situations in your assignment | | | | |D1 |Use critical reflection to evaluate own work and justify valid conclusions | | |Justify your ideas in a professional manner. | | |Propose realistic ideas for the future based on the current status | | |Learner presented CONCLUSIONS for all tasks/areas | |D2 |Take responsibility for managing and organizing activities | | |Show that you did the assignment alone and in accordance with the time. | | |Assignments referred will automatically achieve the minimum grade too for improper handling of task | |D3 |Demonstrate creative thinking | | |Demonstrate that you followed all the guidelines while doing the assignment and have utilised adequate and relevant words for the specific. | | |business environment | | |Apply innovation and creative thought in your work. | |Required Evidence | |†¢ Report (Your report should be approximately 1800 words and you are likely to be penalized if it exceeds 2000 words. If you feel it is essential to | |include detailed information, put it in an appendix and refer to this appendix in the text. Your sources of information should be clearly identified) | | | |Reading & Research Resources | |Lecture slides | |F Rowbotham et el (2007) Operations Management in Context | |S Brown et al (2000), Strategic Operations Management, Butterworth Heinemann. | |L Galloway L et al (2000), Operations Management in Context, Butterworth-Heinemann. | |J Heizer and B Render (2003), Operations Management, Prentice Hall. | |N Slack et al (2000), Operations Management, Pitman. | |D L Waller D L (1999), Operations Management — A Supply Chain Approach, Thompson | |Newspapers, trade journals, magazines | | | |Guidelines for Presentation | |All assignments must be word-processed using Times New Roman (12 point) and stapled in the top left hand corner. | |Page numbers must be included at the bottom of each page. | |Secondary sources should be acknowledged using the Harvard Referencing | |Students are requested to attach the ‘assessment activity front sheet’ on the top of each report with all personal information (name, and student number | |etc. ) accurately presented. | |Every report must have a front page showing the title, class and name | |The length of writing will be limited to about 1800-2000 words. | |Note: Assignment that did not follow this ‘Guidelines for presentation’ will not be accepted. | | | |Plagiarism Policy The college has strict penalty for plagiarism and the assignment will be cancelled if the assignment is observed for this. The definition| |and scope of plagiarism are presented below: Plagiarism occurs when a student misrepresents, as his/her own work, the work, written or otherwise, of any | |other person (including another student) or of any institution. Examples of forms of plagiarism include: | |†¢ The verbatim (word for word) copying of another’s work without appropriate and correctly presented acknowledgement; | |†¢ The close paraphrasing of another’s work by simply changing a few words or altering the order of presentation, without appropriate and correctly | |presented acknowledgement; | |†¢ Unacknowledged quotation of phrases from another’s work; | |†¢ The deliberate and detailed presentation of another’s concept as one’s own. | | | |All types of work submitted by students are covered by this definition, including, written work, diagrams, designs, engineering drawings and pictures. |