Operation Management

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Nanjing University of Science and Technology
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|Unit level: |Unit no: |Date of issue: |Lecturer: | |5 |34 |May15th, 2013 |Anthony Mensah | |Unit Title: Operation Management in Business |Submission Deadline: | | | | | |June 7th, 2013 |

Assignment No:1
Title: Importance of operations management in the production of goods and services

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...
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