Operations Management and Customer Experience

This assignment delves into the crucial link between operational performance and customer experience. It examines how effective operations management practices contribute to enhancing service quality, driving customer satisfaction, and ultimately fostering business success. The analysis covers key concepts such as process management, lean principles, Six Sigma, and their impact on delivering exceptional customer experiences.

OPERATION
MANAGEMENT AND
SERVICE EXCELLENCE

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
Overview ....................................................................................................................................4
Operation management process..................................................................................................6
Performance objectives.............................................................................................................11
Supply chain of operation.........................................................................................................13
Quality Management with relevance to different business operation.......................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Operation management is one of the important task for the organisation. It is the process
to administer business practice so that high level efficiency can be created. This is related to
converting material and labour into goods and services so that company can attain maximum
profit (Heizer, 2016). Colonna and Small's is Contemporary cafe that is specialist in coffees and
different type of cakes. This organisation provides various product and services to its customers
which are according to taste of people. In the present report, importance of operation
management along with its process, performance objective, required supply chains and quality
measures are explained.
TASK
Overview
Location:-
Colonna and Small's is cafe which is operating effectively in UK. This organisation is
gaining largest profitability and trying to be one of the coffee shop in term of revenue. It is one
of the leading cafe which is located in Chapel Row, Bath BA1 1HN, UK. There are around 25
employees are working in current and this organisation has covered large local area of market
where they are providing their services.
Illustration 1: Map of Colonna and Small's
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Capacity:-
Colonna and Small's divides its customers into rich and poor with the use of club-card
data. They provide their services by targeting their customers on the basis of different market
segmentation (Neck and Manz, 2010). They have capacity to provide their services to approx
100 people at a time.
Shop Layout-
This organisation is providing their services in effective manner. It has attractive layout
where there is a reception so that they can entertain visitors and provide them services. The
environment of coffee shop is also very healthy and positive where people can visit with their
family and friends. The sitting arrangement of cited shop is good where there is four and six
seater capacity available. There is an specific place where they can provide their services to large
number of customer at a time.
Competitor:-
Market competitors of this company is-
 Regency Cafe
 Laynes Espresso
 Coffee and Desert.
Services Offered:-
Colonna and Small's offers number of product that are best suitable as per the demand of
people. This organisation makes the contribution to strengthen the market position of UK and
formulate effective plan to provide compelling offer to buyer with sharper price, quality and
better service (Smith, Maull and CL Ng, 2014).
Colonna and Small's
MENU LIST
ESPRESSO
 Espresso £ 25
 Cappuccino £ 30
 Macchiato £ 25
 Latte £ 15 Americano £ 10
SPECIALS
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 Vanilla Bean £ 50
 Salted Caramel £ 40
 Affogato £ 55 Toffee Hazelnut £ 45
COFFEE
 Hand Brewed £ 55
 Black Cold Brew £ 60
 Machine Brewed £ 40 White Cold Brew £ 70
NOT COFFEE
 Tea £ 15
 Chai Latte £ 20
 Hot Chocolate £ 25
 Iced Tea £ 30
Operation management process
According to Caffeine Magazine editor, Colonna and Small's is one of the best coffee
shop in UK. They are able to provide their services at vast level. There are many variety offered
by cited company to this customers. This organisation covers under 30 best coffee shop of
Britain. Ripe and fruity Honduras are served by them as an expresso.
Operation management
In current market situation, this company tries to formulate new operation management
(OM) techniques so that they can enhance their productivity and effectiveness. This deals with
various aspects as supervision of product, procedures, service and supply chain.
It is related to production of goods and services. This ensures that operation of business is
efficient and effective to provide quality product to people.
Following are the process used in operation by Colonna and Small's
 Purchasing process: This process states the different stages that are considered by
Colonna and Small's in purchasing of material. Raw material is held in storage bin at
initial level and when total production process is completed then also output is stored in
storage bin. This process covers different elements as budgeted amount to fill purchase
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request, transformation of message to purchasing manager, convey to supplier so that
they can start manufacturing or arranging delivery for the company. Through these steps
purchasing process move (Hill and Hill, 2012).
Process of purchasing process-
Oval: Shows beginning or ending step in process
Rectangle: Depicts particular step or task
Arrow: Shows direction of process flow
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Need
Recognition
Information Search
Evaluation
Purchase
Post Purchase
Evaluation
Took Decision
to purchase

Diamond: Indicates a decision point
 Batch production: It is the system that divides total production system in small groups.
In Colonna and Small's, there is production of coffee and it is required to prepare in
different stages like first it is required to produce coffee beans and after that its grinding
and boiling then it passes through different stages like Nozzle and Faucet. These are the
important stages that are included in production of coffee in this company.
Serving
Colonna and Small's has effective serving style that they adopt to provide best treatment
to its customers. First, they serve water to them and after that one come to take order and provide
their services within time so that their time can't be wasted.
Stock
They have much stock so that they can provide their services to people. Sometime, there
is an issue where raw material is not easily available due to some crises. So they have stock in
much amount so that they can address demand of people.
 Mass Production: It is adopted by the organisation to produce large number of quantity
as comparison to batch production. Sometime, there is situation that arise in Colonna and
small's coffee shop where there is huge demand of its product. This step is covered by
this company in effective manner so that they can address the market demand in effective
manner (Gummesson, Lusch and Vargo, 2010). During this situation, there is no
requirement of high labour to manage such operations in effective manner.
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They use effective production process so that they can provide quality product and
services to number of people. There are many stages covered in this regard and this organisation
is effective in every aspects. Colonna and Small's make focus on every stage like Roasting of
coffee beans then its extraction after that cooling and concentration and final stage is Drying so
that they can make effective production. Continuous Production: This process is used when there is very high volume
commodity that is of high standard. In Colonna and Small's, there are various staged that
are involved in the production of coffee. They buy raw material from number of suppliers
and then they mix it well and process it from different molds so that they can get best
output. They process it from different machines so that they can provide best coffee to its
users.
Continuous process of manufacturing of coffee in Colonna and Small's coffee shop
Oval: It shows starting and ending point.
Arrow: This presents direction.
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Fill
(Allow water to
cool to just
below boiling to
avoid burning)
Stir
(Ensure that all the
grounds are
fully saturated)
Steep
(Allow to steep
For 3 to 4 Minutes)
Press
(Slowly depress
Plunger to filter,
then serve immediately)
Measure
(Take 2 tbsp of
sugar
and
6 ounces of water)
Clean
(Thoroughly rinse
both
pitcher and filter)

Rectangle: It depicts particular step or task
Seven waste:
Waste is something that adds no value. It is important for the company to reduce the
wastage so that they can enhance their profitability and productivity (Lashley, 2012).
Following are the seven waste as:-
 Transport: It is the requirement that is used to move material form one place to another.
This is considered in waste because it does not add value to product. It is waste because
for this step business pays money but does make nothing for organisation. Colonna and
Small's coffee shop is on precious location where there is better facility of transportation.
The customers can come to this shop through public transportation like Bus, metro train
and other.
 Inventory: It is the wastage because it is required for the business to expand money to
store inventory like coffee beans, powder and other things, packaging and to transport it
to another place. There is also chance of being damaged during transport.
 Motion: Excessive travel between work station, excessive machine movement from start
point to work point are some of the example of wastage of motion. Machinery is required
for preparing best coffee.
 Waiting: This is related to the time. There are many time where it is required to spend
time to wait for response of supplier and engineers and from other departments. Many
material and raw are supplied to this cafe by number of supplier. This is most obvious
wastage where waiting for things in working lives (Talib and et. al., 2011).
 Overproduction: It is related with making too much or too early. This is caused due to
working with oversize batches, poor relation with supplier and host of other reason. It
requires high level of inventory that is blocked for period of time.
 Over processing: This is related to techniques, oversize equipment, performance process
that is not required by customers.
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 Defect: It is caused sometime due to quality errors that affect more then the expectation.
Defective item require rework and replacement that may result in loss off number of
customers.
4V's of operation management
Operation management is the process to produce goods and services so that demand of
customers can be fulfilled. It is easy to see the final out put but hard to determine the various
stages required for it. To understand the complete process it is required to identify 4V's i.e.
volume, variety, variation and visibility (Evans and Lindsay, 2013).
 Volume Dimension:- It is the process to identify how many product and services are
completed by operation. Colonna and Small's has high volume production where they are
effective where they can provide their services to large number of customers.
 Variety: It is required to discover that how many types of product can be produced by the
operation management. There are different varieties are available in this coffee shop and
these are very tasty to attract people. Different taste of coffee as Hand Brewed, Black
Cold Brew, Machine Brewed, White Cold Brew are available in cited organisation.
 Variation: It is the changes that can be made in the product produced. This is essential
task for the organisation to adopt new modification which are appropriate for the growth
and development of the company. Colonna and Small's is effective to adopt new variation
of market so that they can provide better services. There are many technologies are
adopted by them in their operation like new developed machinery and system so that they
can make effective production.
 Visibility: Colonna and Small's coffee shop is visited by number of customers in a day
because there are many better facilities are offered by them. They try to provide better
deals to its user so that they can increase number of customers. Due to these effective
services, they are effectively visible to number of people. They use different process so
that they can track their consignment in effective way (Salah, Rahim and Carretero,
2010).
This is important segment for Colonna and Small's to identify all the 7 waste so that they
can adopt effective measures to eliminate such factors. It is required for Colonna and Small's to
transport its some of the material to other stores that consumes lot of time for travelling.
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Performance objectives
It is the milestone to achieve goals. This includes hazard prevention, risk mitigation,
emergency response and business continuity (Young Kim, Kumar and Murphy, 2010). Short
term goal is for development of program and long term requires more significant planning and
investment. Colonna and Small's has main objective to perform well so that they can achieve best
result out of it. It helps them to attain goals and objective.
Five performance objective
1. Quality Performance Objectives:
This is the one of the important task for every company to maintain the quality of its product and
services. It is required for organisation to use qualitative raw material so that final target can be
achieved in effective manner. Colonna and Small's is the company that always try to maintain
better quality of its product.
The cited organisation is effective in their services and it is the result of their quality
measures. Colonna and Small's provides quality assurance to people and customers are happy
with their services. Different products are offered by cited cafe and they consider quality
measures so that they can provide their services to large number of people. Customers have faith
on this cafe because of its qualitative services and product.
2. Speed Performance Objectives
Colonna and Small's is the company that is speedy to fulfil the needs and wants of customers,
address market demand, adopt variation and changes etc. The speed of their services are very
effective and they are able to quickly serve their customers (Lovelock, 2011).
Colonna and Small's has fast speed to service their customers. They have main goal to
fulfil the needs and wants of their consumers so that they can attain satisfaction of them. Cited
cafe provides training to its staff so that they can be more effective in providing their services.
They organise different training session and seminars and in these programmes, they invite
renowned faculties so that they can provide guidance regarding serving style and other things.
3. Dependability Performance Objectives
Dependability can be measured by the company by product ability to function as expected and to
perform regularly over a period of time. Colonna and Small's is able to offer its product when its
demand arise in market. Colonna and Small's is dependable in some part but they are effective in
every segment.
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4. Flexibility Performance Objectives
It is related to the ability of the organisation to produce new product and adopt the changes in
more quicker way. Colonna and Small's is able to beat their competitor by producing quality
product with some addition (Christopher, 2016). They always try to adopt new development
whether it is related to product, services, technology, market environment.
Cited organisation is very flexible to consider recent market changes. It provides
assistance to them to get best result out of it. They are effective in providing their services to
large number of customers because they consider variations in their operation.
5. Cost Performance Objectives
It is the variation that arise due to change in volume of product and variety of product developed.
There are many authors of operation management who are in favour that higher the variety of
product and lower the volume resulted in higher unit cost and vice versa. Colonna and Small's
provides various range of product for different user. The price of product and services are
effective that can be afforded by every user and they use impressive pricing strategy in their
operation for better pricing of their product.
The price of its product and services are minimal that can be easily afforded by middle
class people. They are effectual in term of cost as comparison to their competitors.
Improvement that can be made
This is important for Colonna and Small's to use improvised measures in their operation
so that they can address demand of people in better way. It is required for this company to
conduct market research so that they can identify the needs of their customers. There is one
weakness of this organisation i.e. diminished employee morale. So it is required for management
team to adopt effective measures so that they can boost the morale of their employees and
workers.This is important for Colonna and Small's to use pricing strategy (Gebauer and et. al.,
2012).
Supply chain of operation
Supply chain is most effective part of operational management of organisation. It is the
flow of goods and services that covers movement and storage of raw material, work-in-process
and finished goods. Many steps are important part of Colonna and Small's. They consider it
effectively so that they may have effective flow of operation.
Supply Chain process-
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Supplier of Colonna and Small's: There are number of organisations that supply necessary
material and information. They are related to different product and services as food product
suppliers, raw material etc.
Information and Delivery flow:
There are different department that re working under Colonna and Small's. Its department
provide assistance in number of ways like-
 Marketing department provides information regarding customers demand, feedback, need
for new product, current operating capability, inventory level etc.
 Finance department provides data regarding financial measures, stockholder
requirements, capital investment plan, Budget, capital requirements (Kohnston and Kong,
2011).
 Accounting department provides information to operation management regarding Billing
information, process improvements, current performance measures.
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Customers Order
Order Management
system Fulfilment Engine
Item present in
nearby
Mother Hub
Delivery Hub Order Receive
Vendor
Item present in other
Mother Hub EKART/3PL
EKART/3PL

 Human resource sector provide data that are related to labour skills available, labour
charges, labour and worker's requirements.
Colonna and Small's considers effective flow of information and delivery system so that
they can provide their services at larger level. They gather information of market so that they can
be more effective. There are different sources that are used by them for delivering of their
product and services at larger level.
Single Sourcing and Multiple Sourcing
Single Sourcing is effective part of operation management where material for production
process is supplied by single supplier. JIT (Just in Time) Manufacturer uses single supplier to
purchase the parts and material for operation (Trkman, 2010). There are various parts where
Colonna and Small's operates. It helps to maintain high quality, reliability, short lead times and
conversely. Cited organisation have single sourcing process that they consider in their operation.
Some of its product and things are borrowed from single source and it is effective one that is
considered by them.
Multiple sourcing is concerned with inter relation with different parts for the operation
management. Generally, IT operation and technology infrastructure are related to number of
vendors. There is combination of some internally provided elements. Colonna and Small's uses
this style also so that they may adopt better technological system in their business. Multiple
sourcing is effectively adopted by cited organisation and it provides assistance to them to have
effective flow of operation. This provides aid in technological monitoring process.
In-sourcing and Outsourcing are the method that is adopted for dispersing of work among the
various department for strategic reason. There are many department that are in Colonna and
Small's and this organisation uses such in effective manner. In-sourcing is done within the
operation management of the company. Outsourcing is to take the technology and information
that are required for the operation management taken from outside the company. Colonna and
Small's uses both the approaches for supply of best and relevant information and for required
material (Zaim, Bayyurt and Zaim2013).
Quality Management with relevance to different business operation
Quality Management: It not only focuses on products and services but various measures are
adopted to achieve these performance. Therefore it is the responsibility of quality managers to
assure quality products and planned procedures in order to achieve more consistency. The quality
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mechanism of Colonna and Small's is very effective and it provide better result to the progress of
organisation. They consider quality mechanism so that they can provide their services at large
level. And attract number of people toward them.
Different business operations are discussed below:
Service Operations: Business which are involved in providing services are revolving
around the ideas that customers should be provided with intangible goods and services.
In service operation of Colonna and Small's, all works are done effectively so as to
increase sales of firm. Roles and responsibilities are assigned to individuals and accordingly they
have to work. This provide help to cited organisation to achieve business goals. Services are
rendered by this firms to make their strong and positive images in minds of customers (Smith,
Maull and CL Ng, 2014).
Manufacturing Business: This business is involved in transforming raw materials into
finished goods. Colonna and Small's is effective organisation where they effectively consider
production process. It started from raw coffee beans to final product. They consider effective
system so that they can make better production. The final output which is called as product is
sold to customers. It includes various business like
 Computer and electronic manufacturer, cars and trucks, beverages industries, business of
shoes and clothes manufacturer (Heizer, 2016).
 Manufacturing business buys products and they have different intentions they are using
these products as raw goods to develop new products.
In this business various factors are combined like raw material, labours in production
processes etc. After this process the goods are sold to final customers.
Colonna and Small's is dealing in food products and beverage in which they buy raw and
other material in bulk quantity and after production they sell their products to users in their cafe.
Their business activities are termed as buying and selling business. In Merchandising business
activities products are sold in the same way as they were brought. There are no changes in
packaging and quantity.
CONCLUSION
As per the above study it can be concluded that operation management is one of the
important segment for the business. Colonna and Small's offers operates their business in number
of segment. It is required for this company to use better quality mechanism so that they can
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provide more satisfaction to its customers. Different operational department of this company
have quality management mechanism. The supply chain management is also effective but it is
required for them to use in-sourcing and outsourcing way in effectual way to collect complete
information that are required for the operation of the company.
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REFERENCES
Books and Journals
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Evans, J. R. and Lindsay, W. M., 2013. Managing for quality and performance excellence.
wCengage Learning.
Gebauer, H. and et. al., 2012. Service-driven manufacturing: provision, evolution and financial
impact of services in industrial firms. Journal of Service Management. 23(1). pp.120-
136.
Gummesson, E., Lusch, R. F. and Vargo, S. L., 2010. Transitioning from service management to
service-dominant logic: Observations and recommendations. International Journal of
Quality and Service Sciences. 2(1). pp.8-22.
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Hill, A. and Hill, T., 2012. Operations management. Palgrave Macmillan.
Johnston, R. and Kong, X., 2011. The customer experience: a road-map for improvement.
Managing Service Quality: An International Journal. 21(1). pp.5-24.
Lashley, C., 2012. Empowerment: HR strategies for service excellence. Routledge.
Lovelock, C., 2011. Services Marketing, 7/e. Pearson Education India.
Neck, C. P. and Manz, C. C., 2010. Mastering self-leadership: Empowering yourself for
personal excellence. Pearson.
Salah, S., Rahim, A. and Carretero, J.A., 2010. The integration of Six Sigma and lean
management. International Journal of Lean Six Sigma. 1(3). pp.249-274.
Smith, L., Maull, R. and CL Ng, I., 2014. Servitization and operations management: a service
dominant-logic approach. International Journal of Operations & Production
Management. 34(2). pp.242-269.
Talib, F. and et. al., 2011. Total quality management and service quality: an exploratory study of
quality management practices and barriers in service industry. International Journal of
Services and Operations Management. 10(1). pp.94-118.
Trkman, P., 2010. The critical success factors of business process management. International
journal of information management. 30(2). pp.125-134.
Young Kim, D., Kumar, V. and Murphy, S.A., 2010. European foundation for quality
management business excellence model: an integrative review and research agenda.
International Journal of Quality & Reliability Management. 27(6). pp.684-701.
Zaim, H., Bayyurt, N. and Zaim, S., 2013. Service quality and determinants of customer
satisfaction in hospitals: Turkish experience. International Business & Economics
Research Journal (IBER). 9(5).
Online
Objective of Operational Performance. 2017. [Online]. Available through:
<http://smallbusiness.chron.com/objectives-operational-performance-77937.html>.
[Accessed on 6th July 2017].
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