Competing through Operation: KFC Report

Topics: Fast food, Management, KFC Pages: 16 (3095 words) Published: November 18, 2014
UNIVERSITY OF THE WEST OF ENGLAND

Competing through Operation (MET) UMMCYW-20-2

Coursework: Report

CONTENTS

Introduction

Company profile: KFC

Five performance objectives

Capacity

Capacity constraints

Capacity strategy

Relationship between five performance objectives

and capacity strategy

Conclusion

References

Appendices

INTRODUCTION

The report focuses on KFC - the leading chicken fast food restaurant in the world, and one of the largest players in the fast food market. By using five performance objectives and various research methods, the report aims to analyze how the restaurant perform and manage its operation capacity in order to provide qualified food and service to the customers.

Besides, the restaurant's capacity constrains and capacity strategies are discussed base on the primary data from KFC Union Street, Bristol City centre. It would link to the relationship between Capacity strategy and five performance objectives (Slack et al, 2004), as well as, how they support each other.

COMPANY PROFILE

KFC first starts in 1930s, when Harland Sanders opened his restaurant in Corbin, Kentucky. KFC now spreads out to more than 100 countries with around 15500 outlets worldwide. Of these, there are more than 800 restaurants located in the UK.

The restaurant has concentrated on fried-chicken-on-bone products under the name Original Recipe and expanded the offers with other items include chicken sandwiches and chicken wings, as well as, biscuits, mashed potatoes, corn, potato wedges and desserts. The new line-grilled chicken with fewer calories, fat and salt than the Original Recipe- was launched in 2009. It was called "one of the biggest new product rollouts in the history of the company" by the KFC president Roger Eaton. Being tested in many regions included the UK; this new line has been well received as a healthier alternative which retains good in taste.

The following part will discuss about how KFC applies five performance objectives (Slack et al, 2004) into its operation and which of the five objectives is concentrated on.

FIVE PERFORMANCE OBJECTIVES

The theory has been applied for many companies worldwide for over 10 years in order to manage operating performance. Due to the limitation of resources, each company tends to put only some of the five objectives in priority during particular periods. It is considered as one of smart methods to maximize profits.

Source: (Adapted from Slack et al, 2004)

FIGURE1. FIVE PERFORMANCE OBJECTIVES

Figure 1 explains the idea and meaning of five performance objectives (Slack et al, 2004) in general.

QUALITY is the responsibility to always provide the good product or service that company has claimed. It also requires doing the right thing at the right time and meeting customer specifications, which give customer satisfactions. In KFC, main factors listed as Quality objective are quality of food (delicious, tasty, fresh, healthy, etc), quality of service (clean, supportive, friendly, etc)…

SPEED is defined as how fast the company responds their customers. This is one of the most important things required in fast food restaurant, especially in rush hours. Applying to KFC restaurant, speed objective is considered as the elapsed time between customers' placing orders and the food or services being delivered.

FLEXIBILITY measures how much variety in products, services, and solutions for a dynamic market environment in order to meet customers' need. It is shown as KFC's various menus, the launch of line "Grilled Chicken", the more customization, etc

DEPENDABILITY is doing things on time as promises. It not only gains customer's trust but also has an influence on cost, which are saving money, saving time and giving stability to improve the efficiencies (Strecker, Ulrich, 2011). In KFC, it is on-time deliveries.

COST is the product or service price that enables company compete the market, as well as ensure...

References: The following part will discuss about how KFC applies five performance objectives (Slack et al, 2004) into its operation and which of the five objectives is concentrated on.
Source: (Adapted from Slack et al, 2004)
FIGURE1
Figure 1 explains the idea and meaning of five performance objectives (Slack et al, 2004) in general.
(Adapted from Slack et al, 2004, p58)
FIGURE2
CAPACITY
The capacity of an operation is the highest level of value added after certain period of time that the process would be able to achieve under certain conditions (Slack et al, 2001)
(Adapt from Slack et al, 2001)
The figure is resulted from calculations below.
DESIGN CAPACITY
Design capacity is "the capacity which its technical designers had in mind when they commissioned the operation" (Slack et al, 2001, p335)
2331 people (2680 - 2680x13%)
ACTUAL OUTPUT
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