Role of Operations Management
Operations management refers to all levels of an organisation and how best to efficiently convene, fund, maintain and maximise its services and/or operations, both internal and external. The core goal/objective of operations management it to maximise outputs while reducing and minimising the inputs required to achieve the desired results. Whereas Production management refers to how to best manage, organise and control either a product or service that an organisation is providing. This could be through streamlining manufacture of components by outsourcing services the organisation is not suited for, through to managing the implementation of a product that is being supplied to the end user for best effect. b)
Typically there are three types of inputs that an organisation will use to obtain the desired outputs, these being Materials, Labour & Facilities; where as there are normally two types of outputs achieved by transforming these inputs from an organisation, these being Goods & services accompanying Customer Satisfaction. Below is a breakdown of both the inputs and outputs that are used/achieved at Pepsi-Co. Frito-Lay production facilities located across the globe. Materials
Quality Assurance checks are competed upon the arrival of all raw materials that are purchased both internally and externally at all processing and manufacturing plants. This allows Frito-Lay to maintain a high level of freshness and quality of product by allowing only the best produce in to be transformed in to the final product and also delivering a long shelf life by allowing only fresh produce to be used. Low storage volume of raw materials allows for Frito lay to maintain a inventory of only fresh produce while minimising warehouse storage costs of excess materials by having all of their materials arrive on a Just In Time basis. Labour
Supplying an ergonomic environment where all employees are in stress free conditions, both physically and mentally, allow for a high level of worker satisfaction and production. Thus allowing for employees to maintain a long employment period with Frito-Lay, reducing staff turnover and also allowing for a higher level of work produced, in both quality and quantity. Maintaining a competitive salary packages and retirement funds for the employees of Frito-Lay allows for a competitive advantage over other employees in the market place by guarantying there staff a comfortable living for both themselves and their families.
With a strategy of selecting the location of a production plant close to major suppliers and relatively close to the end user, Frito-Lay can further maintain its level of product freshness while minimising the need for interim refrigerated warehousing on long haul products. With state of the art processing plant and equipment Frito-Lay can make use of mechanisation by increasing mass production, quality reliability volumes and throughput. This can be achieved whilst keeping staffing levels at a low rate when compared to their competitors in the snack food industry. Goods
With the aid of large supply chains, retail chains and credibility, Frito-lay maintains a high level of product repeatability in quality, freshness, taste, familiarity and brand. This allows for an unrivalled market share in the snack food industry. Allowing for the organisation to continuously improve its processes and products, therefore securing their future place in business as the market leader. Maintaining a steady level of supply to the market at a constant price and a high quality, while maintaining a high level of familiarity to the customer through high quality standards and conformity of taste and texture. Frito-Lay plans for increases in demand, such as that of Florida Bike Week and the Daytona NASCAR event by increasing production at the plants supplying those areas so that the end user will not be affected by product shortages that may damage the...
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