Operation Management in Business- Ledbury Restaurant

Added on -2020-02-14

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Operation Management in Business 1
Table of ContentsINTRODUCTION ...............................................................................................................................5TASK 1.................................................................................................................................................5Importance of operation management in The Ladbury Restaurant.................................................5Analysis of operation function in The Ladbury Restaurant ............................................................6M2 and Evaluation of current process model that use by The Ladbury Restaurant operations .....7TASK 2 ................................................................................................................................................82a) M1 and M3................................................................................................................................8Importance of the Three Es .............................................................................................................8Assess the impact of the tension between cost minimization and quality maximization in The Ladbury Restaurant..........................................................................................................................92b) and M3 Evaluation of significance of the five performance objectives..................................10TASK 3...............................................................................................................................................113a) & D1 Justification of the need for operational planning and control of production process andset of clearly defined operational outcomes for The Ledbury restaurant......................................113b) & D3 Assessing how linear programming adds value to a given production process and evaluation of critical path analysis and network planning.............................................................133c) & D2 Network plan for operations in your chosen organisation indicating the resultant critical path....................................................................................................................................153d) & D3 Role of quality management techniques are applied to improve operations in the Ledbury restaurant.........................................................................................................................18CONCLUSIONS................................................................................................................................19REFERENCES...................................................................................................................................202
Illustration IndexIllustration 1: Gantt chart....................................................................................................................16Illustration 2: Network plan................................................................................................................173
Index of TablesTable 1: Linear programming.............................................................................................................14Table 2: Network plan for growth and expansion of the Ledbury restaurant in UK..........................15Table 3: Critical path calculation........................................................................................................17Table 4: Six-Sigma analysis for quality control and management.....................................................184
INTRODUCTION Operation Management is a kind of business practice that creates high level of efficiencywithin the firm. It is related to the transformation of material and labour efforts into services andgoods so that maximum profit can be earned (Dhoul, 2014). It is also concerned with planning,organizing and monitoring of the manufacturing and development process of services. It includesresponsibility to ensure that business operations should be efficient in context of using limitedresources and preparing goods that can make business able to meet the requirement of customers .With the help of operation management, a process to produce and distribute commodities can becarefully managed. Major focus of it is on to improve efficiency and effectiveness of businessprocedures (McNamara, 2016). The present study is related to operation management and tounderstand its importance within the organization. For that, The Ledbury Restaurant is taken intoconsideration. It serves British Cuisine to the customers at Notting Hill, London. During completionof present study, various objectives will be achieved such as nature and importance of operationmanagement, link between operation management and strategic planning, method to organizeproduction process etc (Kriz, Gummesson and Quazi, 2013). TASK 1Importance of operation management in The Ladbury RestaurantImportance of operation management in an organization cannot be underestimated. Whenoperations of a business are properly managed then entire functions of all the departments worksmoothly and effectively. The idea of effectiveness and efficiency of a company rotates aroundoperation management (Rao, 2010). To run the process more effectively, it requires high degree ofintegration of resources so that product can supply at the right place and on the right time. For TheLadbury Restaurant, operation management plays an important role to manage its day to dayoperations and run its business in a right direction. There are various operations performed in therestaurant’s workplace like kitchen systems, facilities systems, dining room systems, inventorycontrol, purchasing and receiving, waste control, preparation and production, recipe control etc(Melville, Kenneth and Gurbaxani, 2004). Along with this, calculation and control of food,beverage and labour cost are also the part of The Ladbury Restaurant’s operations. From theevidence, it has been found that entire operations are managed by cited restaurant with the help ofoperation management techniques. For The Ladbury Restaurant, because of two major reasons, operation management isimportant. First is to improve productivity that leads to enhance restaurant’s financial health. For5
instance, with the help of application of the operation management, if operation manager of citedrestaurant can be able to minimize waste during preparation of food and beverages or keep controlon effective use of existing inventory then it will save huge amount of cost (Li, Zhao and Chen,2012). It will also increase wealth of The Ladbury Restaurant and save funds can be invested inother business operations. So, it can be said that operation management helps in enhancingproductivity of the restaurant that brings improvements in financial health of the firm. On the otherhand, second reason which shows importance of operation management in the organization is that ithelps in meeting service user’s competitive priorities. Here, competitive priorities mean quality,time, cost and flexibility (Bettley and et.al, 2005). These four have various dimensions that considerduring serving to the customers. For example, in case of The Ladbury Restaurant, when a guestplaces an order of food then restaurant considers his or her priorities i.e. quality, cost, time andflexibility. During ordering food, customers expect that restaurant will render quality food that willdeliver value against his money. Along with this, he or she will also expect that frequency ofserving food will be quick that will reduce his waiting time (Boer, 2003). To meet all thesecompetitive priorities of end users, operation management practice helps The Ladbury Restaurant.Therefore, it can be said operation management is an important part of cited organization. Analysis of operation function in The Ladbury Restaurant There are various operation functions that are performed in The Ladbury Restaurant andtheir analysis is as follows: Kitchen system: Activities that are tagged in kitchen system of The Ladbury Restaurant arepre labour cost tracking, daily scheduling, waste tracking, place purchasing orders, manage recipemanual etc. From the analysis of kitchen system function of cited restaurant, it has been found thatfood products are properly stocked and cooked at the right temperature. It has also been determinedthat it assists in knowing about labour cost that incurs whole producing food items. Along with this,kitchen system analyses significant impact of waste volume on restaurant cost. On the basis of this,some actions to reduce waste has been taken by the firm (Restaurant Systems – Operations, 2016). Dining room system: This operation function of The Ladbury Restaurant includes threemajor activities such as rendering services to the guests, customer service standards and telephoneanswering process (Craighead and Meredith, 2008). Analysis of the operation function shows thatall sub tasks are effectively managed. As per the requirements of customers, different types of foodservice styles such as dining, casual table-service and small town dinner are used. Along with this,with the application of consumer service, standards are followed to meet their expectations relatedto the services of The Ladbury Restaurant. 6

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