Operation management

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Operation Management
Assignment
Charlotte Alexander
[ T Y P E T H E C O M P A N Y A D D R E S S ]

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Introduction
Operation management is a very important function of the
organisation that deals with the activities of the production unit.
The operation management also includes set of decisions, process
and the responsibility that take care of the valuable and scarce
resources of the organisation for the purpose of delivery of the
products and the services on time. It is the responsibility of the
store manager to manage all the resource of the company so that
the operational function could be performed better to fullfil the
request of the customer by delivering the products and services.
In this report, for the better understanding of the benefits of
operation management in the organisation I am taking the
example of Akbar Restaurant which is very famous in UK and has
many branches in Newcastle, Birmingham and Glasgow etc.
1. How the different inventories and/or assets of
the organisationcurrently are managed? Explain
why this might be good, bad, and indifferent or a
combination of these.
The Akbar’s restaurant is a very comfortable and inviting
restaurant that is especially designed to make the customer feel

happy, satisfied and attached. The Akbar’s Restaurant’s assets are
the resources of the restaurant that increase the value and the
brand of the restaurants by satisfying the customer and by
generating the profit for the restaurants. The assets of the
restaurants could be divided in long term and short term assets.
The long term assets of the restaurant are the human resources,
infrastructure, kitchen items and other non perishable items,
while the raw material for food such as vegetables, chicken, beef,
breads and liquors are short term assets. Akbar’s Restaurant
needs to reduce the wastage of short time assets through
operations management (Hajmohammad et al, 2013).
Currently, the restaurant shows lots of variability in the inventory
as the material in the inventory are changed on a rapid basis as
per the demand and the supply of the material from different
sources into inventory fluctuates a lot. This variance is not only
the result of the deviation from the standard process but also the

unknown demands from the customers. Akbar’s restaurant needs
to fulfil all the demands of the customers no matter how rare they
are.
As of now, Akbar’s Restaurant depends on the excess order of the
inventory materials as a precaution of any deficit in the output.
Since, Akbar’s Restaurant has huge inventory, it hides the
variability and increases waste in different operations of the
restaurant. As long as the variability will stay hidden because of
inventory, it would be difficult for the Akbar’s restaurant to
reduce the waste and implement an efficient operational delivery
process (Heizer & Render, 2014).
2. Draw a detailed Operational Delivery
Process for your organization or case.
A sample operational delivery plan for the home delivery of Pizza
at Akbar’s Restaurant is shown on the next page:
When a customer calls Akbar’s Restaurant, the order is taken by
the cashier who is then forwarded to the cook working in kitchen.
The process of order taking may include the different variables
such as type of crust, type and number of toppings and the size of

Pizza. The cook has to look into the inventory of the restaurant to
find the required raw material for making the pizza. Once the
pizza is made by the cook, it is tested by the quality management
and then delivered to the customer if found okay in the quality
check. If the pizza does not meet the quality set by the restaurant,
the process is repeated.
3. From the illustrationin point 2, indicate
where the organisation’s delivery system may
fail to meet its performance objectives. Providea
discussionto clearly demonstrate your
understandingwhy each performance objective
is not being met.
It is essential for the efficient operational delivery process that
Akbar’s Restaurant eliminates waste, reduces the variability and
increase the output when the input to the process is same. Akbar’s
Restaurant needs to focus on the deduction of variability in the
production process to enable the smooth delivery of the products
and services (Dima & Grabara, 2013).
The first element which could affect the delivery process is the
time taken by the cashier while taking the order. Unless the

information which is essential for making the pizza is standardise,
the cashier might miss some information. After the order is taken,
the next part is the business communication to the cook about the
order. The distance between the cashier and cook has to be
optimum so that the instructions could be passed to the cook just
in time (Bousonville & Schmitt, 2015)
Variability would increase the size of inventory and the time taken
in the process would be increased. If the restaurant follows the
push system instead of the pull, it would dump the orders on the
downstream platforms. In this case, the performance objective
could be achieved as the Akbar’s Restaurant uses pull system for
the delivery of order to the customer.
4. Discuss how one lean approach (theory or
technique or tool) could be utilised by your
organisation/casein an attempt to improve
meeting its performance objectives discussed in
point 3. Providea discussionto clearly
demonstrate why you think the lean approach
could aid each performance objective being met.

Akbar’s Restaurant could use Just in Time lean approach to
improve the operational delivery process. Just in Time approach
is based upon the following elements to achieve the performance
objectives:
1. Waste reduction
Any activity in the delivery process of pizza at the Akbar’s
restaurant which does not add value to the customer is considered
a waste. Inspection, tests and approvals do not add value to
customer while taking up the order and delivery of pizza to the
customer on time would add value (Prajogo et al, 2012).
2.Distance reduction
Distance reduction means reduction in the time taken while
communicating the order to cook. If the cashier has an automated
system in place which would automatically inform the cook as
soon as the order is taken by the cashier, it would enhance the
performance.
3.Inventory reduction

Akbar’s Restaurant already use pull system which is good for the
performance. If Just in Time approach is used to get the raw
material from suppliers, inventory could be reduced further.
4. Process standardisation(variability
reduction)
Akbar’s restaurant needs to have a small menu so that the
variability in the processes of pizza making could be reduced.
Reducing the inventory would help Akbar’s Restaurant to identify
the problems and resolve them. Reduction in the lot sizes would
also help in reducing the inventory.
Read more about : Marketing Management Assignment Help
5. Draw two key conclusions from your work that
you think are significant findings in helping your
organisation/caseimprove its Operational
Delivery Process.
Improvement in the material handling using Just in Time
Approach and distance reduction could help Akbar’s Restaurant a
lot in improving its operational delivery process. The pull system
at Akbar’s restaurant uses “Kanban” method pull system.

Producing the goods in smaller lots would help in reducing the
waste as the new order would be executed only when the previous
product is used by the system and delivered to the customer
(Khanchanapong et al, 2014). This type of material handling
would enable the restaurant in reducing the setup cost. Material
handling could also be improved by developing stronger
relationship with the suppliers so that the raw material is
available as soon as the requirement is raised in the production
process. Just in Time availability of the material from the
suppliers would reduce the inventory and eliminate the waste in
the process (Thorogood & Crichton, 2013).
Hence, inventory reduction and distance reduction would result
in an efficient operational delivery process at Akbar’s restaurant.
Conclusion
An efficient operational delivery system could enhance the
performance of an organisation to many folds. Appropriate
operation management which could reduce inventory and
eliminate waste in the process is always preferred in the
organisations whether it is a manufacturing organisation or
service based organisation. Organisations need to focus on the

activities which add value to the product or service and eliminate
the activities or at least minimise the activities which do not add
value to the customer. This could be achieved by Just in Time
operational delivery technique.

Operation management

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