Operational Management Hungry Hub

Questions: 1. Identify a business you think is interesting and briefly discuss how each of the above challenges might impact that business in the future. 2. Choose a minimum of three of the following areas of Operations Management that you think are likely to most impact the success of your Chosen business and justify your selection of each. Answrs: 1. An interesting business which I think for the new generation is a hamburger outlet on the street of a college or a university, we will name the outlet as Hungry Hub, we wont leave you hungry. HUNGRY HUB is a company where processing will be done in a very systematic way. Considering the changing technology they will use charts to identify the success rates and easily know the profit earned. Hungry Hub will be company where quality will be the best and they will never compromise in quantity also. They balance both of them in a well-defined manner. When the manger wants certain change in the burgers or any other product related with Hungry Hub they will form a sequence and strictly follow the steps to get a better product. Many tools are used to form steps and thus changing the product in attractive way and also improving the taste of the burger (Keep, 2004). Process mock up is very necessary in process of production and also have certain things like time management. If there is pro per management in time less waiting lines are there and customers are also happy. This part is called simulation and is good for planning. If a product has not been changed regularly the customers are bored with the product and move with the new product but here in Hungry Hub the company give lots of changes on the product like taste, shapes and even compromise with the cost to attract their customer so that they remain for them forever. If the customer is gone Hungry Hub knows that its difficult to attract again towards them. So to avoid these conditions may offers are also been implanted like cold drinks free or sauces free. Even sometimes toys are the main attraction for the customer as children love them and for that also they come to eat and thus more profit for the company. These investments are less and profit is more. HUNG RY HUB can also launch a website which will be an exclusive one. The website itself will attract many customers even for online ordering. They will take care if the nutritional level in every product without hampering its taste. The attractive pictures on the website will leave a mouth-watering temptation in the minds of the customers. It will also plays an active role in communities like schools, societies etc. Even on the website they will have very attractive activities for kids. The company will put their entire heart and soul into every HUNGRY HUB restaurant that is currently present (Drafke, 2009). It will also take care of every ingredient personally rather than just being automated. They will also have quantitative benchmarking done for their product which will enhance their quality improvement. The main focus of HUNGRY HUB will be satisfying their customers and giving them the best quality food they deserve. They will have a proper planning for all the activities they will be coming up in that particular day. Example, what is to be done? How it is to be done? Etc. On their menu they will have all the products which can fulfil every customer. They will take care of the kids, to the young once and the adults and even have choices for elders. Every morning they will make fresh dough from scratch which gives us the hind of quality they provide to every customer. They will change their product from one customer to another depending upon the requirement and the need of the customer. HUNGRY HUB will ensure that the commitment they give to the customers will never change. They are also a long-time supporter of reading and also give out a helping hand by donating several books among children to promote literacy. HUNGRY HUB will also contribute a vital role in developing the community with education and leading this by donating books (Liveris, 2011). The love from the heart along with every ingredient in the menu will add a crisp to HUNGRY HUB. People will love and will enjoy the elegant taste and will keep the trust with the brand unlike any other food brands. HUNGRY HUB will never let its customers down and will continue to provide the best service as it has done over years. The above business and similar type of any start-up company can update its system with the changing technologies. They need to update themselves on globalisation, during start-up they can launch in some metro cities. When they will launch their website they will get an exact idea about how is the response about the restaurant (Drafke, 2009). Quality management can be taken care by adding feedback and suggestions from the customers. Customer feedback book can be kept in the restaurant so that the customer can add their suggestions about the food. Global manufacturing can be taken care by launching a website which will help the company to spread around the countries. All businesses when they start they have a particular goals and objectives which the implement during their business processes. Changing technology is one factor which can improve the processes in a better way. Technology helps in making it easy for the company and the company employees to automate their processes and the employees and the workers for their better understanding. Quality management is another factor which can make a difference, and create a difference in the minds of customers and the users. Quality improvement is once factor which will create a difference among the other similar products in the market. In the above example Hungry Hub will create a difference by giving some attractive gifts and rewards in exchange with the purchase (Keep, 2004). It can also decide a certain amount above which it can give free French fries/ Cold drink or an Ice cream, depending upon the choice of the customer. Changing job design is a factor which helps in creating different perspective and excitement in the minds of the workers also. New designs and new type of working creates an excitement in the organisation. It helps in assigning particular tasks to certain groups and systematic allocation of groups. Changing should be done on regular basis so that all individuals get a basic idea of the work and the process which is followed in the organisation. Job design refers to the administrative changes like Job rotation, Work overload, Overtime in working hours, Shift hours of the work, Time scheduling etc. Changing job design is very favourable to the employees because it gives a dynamic and static work culture to the employees, it takes inputs from the employees, it also take acre about the interest of the employees which help them to understand the comfort level of the employees and also understand their interest level. They allow adjustments in the work timings and a little flexibility in t he work environment which is both beneficial to the employees as well as to the organisation. It helps in dividing the work between the individuals in such a way that there is less force requirement and more energy work. Job design also includes a brief idea about what work is to be done, how will the work be done, how many individuals will be required to get the work done etc. Changing customer expectations is a factor which helps the organisation about the demands of the population and the changing culture. The time to time change in culture helps the organisation to understand what exactly the population is expecting from the company and the product. It also makes them understand the factors which help them to develop the product and adding new constraints to their product and processes. 2. I will choose the below areas where the business is most likely to affect the success of the business. The below mentioned areas are directly related to the success of the business. Capacity Management Capacity Management is the management wherein the capacity of production is taken care of. It also defines the maximum use of information technology used in the business. It defines the IT capacity of the business which use utilize the current and the future business. It features various components like monitoring, modelling, optimising and analysis of the business. Capacity management will help in getting more out of the IT information and more extraction from the business. It will help in getting maximum output with minimum energy required. It will help to connect the business with the marketing aspects. Analyses of development of marketing and its role in contemporary competitive markets basically means the study of marketing development where marketing of a product plays an important role (Galeson, 1998). Development of marketing s very important because marketing skills should be developed on timely basis to keep the market updated with new techniques and presentations. Competitive markets are very challenging markets and marketing plays a vital role. Marketing in these challenging markets should be done carefully and with full study. This can be done easily with the help of capacity management where the information technology will play an important role. Capacity management will also help in identifying the gaps in the business and increase the business where required. Monitoring Monitoring means keeping a track of all the processes taking place in the business. In the above business of Hungry Hub monitoring will include keeping a track of all the processes starting from the raw materials until the final food is made. This will also include process of packing and shaping the burger and also keeping the exact measurement of just in time production of burger production. Analysis Analysis will deal with analysing the process of batch production. Analysing how the production is processed will help the company to understand what quantity should be made. Implementing Implementation means implementing upgraded technology or implementation of new flavours. In Hungry Hub restaurant implementation would include implementing new tastes, new spices and new flavours to the food. This will also include implementing the changes in production level or changes in the products which the management might be willing to do. Optimisation Optimisation in Hungry Hub will include optimising the batch production. This will manage the quantity of the products will be manufactured in certain time. Example: - Production of burgers and French fires during peak hours will be at a high level than the production during non-peak hours. The Burgers will be made according to the orders that are generated. This will help in less wastage of food materials and raw materials (Scholes, 2011). Optimisation involves understanding all the processes in a detailed way and making respective changes wherever required. Optimisation must be included in every business, this helps in increase in profits with less energy. Capacity management when includes all this processes is a successful management system since it will include all the required systems and processes which will help the business to grow in a successful manner and this will also highlight the gaps in the business which will help the manager to develop a better process. Managing Inventories Managing inventories basically means how to manage the raw materials and the other inventories that is used for the business. In the above example of Hungry hub inventory will consists of raw materials, spices, vegetables etc. that I used for the production of burgers and French fries. Advantages of inventory management are as below:- It helps us to avoid over investment and under investment in inventories. It helps in reducing the carrying cost. It maintains the optimum level of inventory investment. It ensures in uninterrupted production of the product in the business. Manual maintenance of inventory investment can be avoided and eliminated. It helps in facilitating prompt supply of the finished goods (Durlauf, 2005). Inventory management helps in better utilisation of the floor space. It helps in better forecasting of the raw materials and finished goods. Inventory management helps in reducing the risk of closure of the manufacturing unit. Inventory can be managed by using any of the below four methods of inventory management. ABC Analysis Cycle counting Control of service inventory Record Accuracy Inventory management plays a vital role in any of the business processes since it is the major concern of any business. Without inventory no business can take place, it is very important for all business to understand the requirement of their business inventory and to understand the requirements of the same. In the above example of hungry hub, inventory includes the spices the raw materials like vegetables, soft drinks etc. it also includes that the machinery which helps in production is well because if in case it incurs a break down it is important to have a backup facility for the same. Hungry hub will take care of inventory management by keeping a track record of the materials received and the materials that go out of the company (Galeson, 1998). This is a system which is used to see the flow of products and services which move out from the organisation. The best way with which this can be done is by giving the access of inventory data base to the vendors. This will help the vendor directly to understand which materials should be supplied and in what quantity. Lead time will help the managers and the management system to understand the time taken to refill the inventory back again when there is a shortage of raw material. It is also very necessary to understand which material is used in what quantity so that it is easy to understand the usage of the products and to give orders to the supplier accordingly. Inventory management helps in less wastage of raw materials and better usage of resources. Resource Management Resource management is a process where the resources of the organisation and the management are used in the most effective manner. Resources of the organisation is best utilised by managing people in better way. There are many ways in which resources can be managed, below are the factors which help in managing the resources in the organisation. Employee Relations Employee relations with the organisation should be one of the important relations in the organisation (Durlauf, 2005). Employee relations include the behaviour of the employee with the other team members and the other employees of the organisation. Human resource management should try their best to maintain good relations with the employees; they should involve themselves in understanding the requirements and the expectations of the employees from the organisation (White, 2002). Resourcing Resourcing means how many employees are required in a particular team to handle a particular task. This also means the strength of the organisation and the number of members required in the organisation to achieve goals and objectives of the organisation. HR Development HR development in the organisation means the Human resource development in the organisation. It is necessary in an organisation to help the employees develop their capability and their skills at their work place (Durlauf, 2005). Resource management can be done in an effective way when the employee feels that his/her skills are being developed in the organisation along with the profile which they handle. Reward management Reward management deals with rewards and recognition which the human resource management gives the employees basis their performance. Reward management plays an important role in the organisation because it helps in motivating the employees to perform better. Rewards and recognition motivates the employee to do their best and learn different methods of learning from each other. Reward management is the best practice which human resource follows. In Hungry Hub reward is given to the employee who gives the highest amount of sale. They can also give rewards to employee which gets the best feedback on a particular day (George, 1996). Knowledge and talent management Knowledge and talent management deal with how the employees are trained with better skills and their knowledge is enhanced. In Hungry Hub knowledge and talent management team encourages the employees by keeping contests among each other where they can test their skills in cooking, they also keeps contests where the employees are told to garnish the food in the best way they can. Talent should be shared among each other so that they can come up with a better product and also other employees can have better ideas togive their best. Performance management Regular feedback on the performance of the employee should be given by the managers at regular intervals. There should be performance dialogues which should be shared with the employees so that they perform better and better after every feedback they receive from their managers (White, 2002. Performance management helps the employee to understand where they stand in the organisation and what is required for the growth. In the above example of Hungry Hub, employees are given performance feedback basis on how they greet and treat their customers and how they encourage their customers for a higher amount of purchase. Quality Management Quality management in operations management is directly related with the marketing management, there are few areas where marketing can add to better quality. The below factors are used by Hungry Hub to enhance the quality of the product. Advertising deals with all the media related factors to create awareness among the developing market for a new product (Keep, 2004). It includes all mass media techniques which help in connecting directly with the population. Strategy is a process where the management discuss about how to go about launching a new product. They basically decide on the 7 Ps of marketing mix and decide upon the ways and techniques for a new product in a developing market. Branding deals with advertising a product. Pictures, posters, displays etc. on the shops of the market. It is very important to have a good branding in a developing market since it creates awareness and information about the product. Research basically is the study which marketing management does befor e launching a new product. They study about the competitive product and discuss about the pros and corns of the new product. They discuss about where, how and other factors of the developing market. Quality Management also focuses on the below main 3 components of quality check. Structure Structure under quality management deals with the management structure which the system which the organisation follows to produce the best quality product as the output. In Hungry Hub quality is taken care by the structure which it follows to produce the food in the backend (Race, 2004). The structure of the systematic production is very important it is also called as Total Quality management. Culture Culture under Quality management is a process of developing a culture within the organisation. Organisational culture is directly proportional to quality management. In Hungry Hub the culture is very free, all the employees are free to interact with each other, and they also share their innovative ideas with each other. They will sometime do experiments on the food that they make. This helps the organisation to understand the employee feelings and express their talent. Organisation should have a free culture along with respect to senior employees. Technology Technology in an organisation means what technology the company uses to give the best output. Technology in Hungry Hub is present in the manufacturing machine in which the burgers are manufactured. Hungry Hub can also use the latest technology where the French fries are baked and nor fried. This technology will be helpful since today generation is more health conscious. The patty which is used to make burgers ca also be backed rather than fried ( Drucker, 2004). All latest technologies will help in increasing the efficiency of the production and manufacturing units. This will also enhance the quality of the product. Technology can also be used to make attractive packets of toys which they give as return gifts. Technology in the organisation should be used depending on the response of the customers. The organisation should understand what the response of the customers is when the company shows them a different range of product or a different variety. Operational Management is a theory where the different aspects of operations of the organisation are discussed and studied. The experts of the organisation discuss the various pros and cons of various systems and technologies which they implement in the organisation. Various challenges are faced by the management level when they implement various types of changes in the system (Durlauf, 2005). There are various challenges, the customers might accept the change or might not accept the change. It can also have a disadvantage that the customers might not come back to the outlet hence it is important to make changes very carefully. Operation management is the tool of management that is concerned with the supervision, planning, and regulatory the procedure ofmanufactureand reshapingbusiness processesin the manufacturing ofgoodsorservices. In manufacturing firm inputs such as land, labour and capital are processed and output is given to the customers. It includes the obligation of safeguar ding thatall the business related activities are effective in the terms of using the resources and achieving customers satisfaction and their requirements from the business. It manages the process of raw materials conversion into finished goods (Chen, 2003). Meaning it sees the inputs of the business according to the outputs required. Companies make use of operation management to minimize cost and achieve the goals of the business. References 1. Holt, DH 1997, Management principles and practices, Prentice-Hall, Sydney. 2. McCarthey, EJ, William, DP Pascale, GQ 1997, Basic marketing, Irwin, Sydney. 3. Bond, WR, Smith, JT, Brown, KL George, M 1996, Management of small firms, McGraw-Hill, Sydney. 4. Colorado, JA 2006, Economic theory in the Mexican context: recent developments on the ground, trans. K Smith, Oxford University Press, Oxford. 5. Drafke, M 2009, The human side of organizations, 10th edn, Pearson/Prentice Hall, Upper Saddle River, N.J 6. White, H 2002, 'The westernization of world history' in Western historical thinking: an intercultural debate, ed J Rusen, Berghahn Books, New York pp. 111-119. Available from: ACLS Humanities E-Book. [14 May 2009]. 7. Conley, TG Galeson, DW 1998, 'Nativity and wealth in mid-nineteenth century cities', Journal of Economic History, vol. 58, no. 2, pp. 468-493. 8. Liveris, A 2011, 'Ethics as a strategy', Leadership Excellence, vol. 28, no. 2, pp.17-18. Available from: Proquest [2 3 June 2011]. 9. Johnson, G., Whittington, R. and Scholes, K. (2011) Exploring strategy: text and cases. 9th ed. Harlow: Pearson Education.10. Aghion, P Durlauf, S (eds.) 2005, Handbook of economic growth, Elsevier, Amsterdam. Available from: Elsevier books. [4 November 2004]. 11. Keep, E. (2004) UK management skills and the future of management education. In: Jeffcutt, P., ed. The foundations of management knowledge. London: Routledge, 83-107.12. Edmondson, A. C. (2011) Strategies for learning from failure. Harvard Business Review, 89 (4), 48-55.13. Allison, B. and Race, P. (2004) The student's guide to preparing dissertations and theses. 2nd ed. London: RoutledgeFalmer. Available from: https://www.instituteofhospitality.org [Accessed 26 May 2011].14. Gartenberg, C Wulf, J 2012, Pay Harmony: Peer Comparison and Executive Compensation, Viewed on 28 Jan. 13, https://hbswk.hbs.edu/item/7139.html15. Niederle, M, Roth, A, E Unver, U 2010, Sharpening Your Skills: Managing the Economic C risis, Viewed on 28 Jan. 13, https://hbswk.hbs.edu/item/6357.html16. Ordez, L, D et al 2009, Goals Gone Wild: The Systematic Side Effects of Over-Prescribing Goal Setting, Viewed on 28 Jan. 13, https://hbswk.hbs.edu/item/6114.html17. William H Newman, Charles E Summer and E Kirby Warren, 1970, the Process of Management.18. Peter Drucker, June 2004, what makes an effective executive, Harvard Business review?19. Chen, J. Q. (2003). Intelligence: Multiple intelligences. In J. Guthrie (Ed.), Encyclopaedia of education(pp. 1198-1201). New York, NY: Macmillan.