Operations Management in Business

This document provides an overview of operations management in business, focusing on topics like linear programming and critical path analysis. It discusses the importance of operations management in improving productivity and efficiency. The document also includes a case study on KFC and its declining operational efficiency.

OPERATIONS
MANAGEMENT IN
BUSINESS
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Table of Contents
Chapter 1: INTRODUCTION .........................................................................................................3
Chapter 2: Organize Business Processes.........................................................................................3
Chapter 3: Operational Plan.............................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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Chapter 1: INTRODUCTION
Operation management researches the level of efficiency in planning, organizing and
supervising the production and manufacturing (Agrawal, Atasu and Van Wassenhove, 2019).
OM is delivery focused tool used to ensure that an organisational successfully turns their inputs
into outputs in most effective manner. Respective tool is very much important for an
organisational to improve the overall productivity and helps in handling issues related with
designing, operations and maintenance of organisational system used for producing products and
services. Respective report is based on the KFC which is an American fast food restaurant chain,
headquarter is in Kentucky specialised in fried chicken. As per the scenario respective
organisation over the past two year their operational efficiency declining rapidly that create
difficulties for organisation to operate business activities properly.
Chapter 2: Organize Business Processes.
Linear Programming:
Linear programming is one of most important mathematical technique used for allocating
the limited resources in gaining optimum outcomes (Linear Programming: Meaning,
Characteristics, Assumption and other Details, 2020). In the word of Willian M. Fox, “Linear
programming is technique to plan which allows objective function to be in minimized or
maximised within the specified framework in a situational restrictions”.
Purpose/Reason to apply linear programming.
 Linear programming avail to obtain the optimum solutions for operation research.
 It allows the researchers to evaluate best and most economical solution of their specified
problem within all of their limits (Babich and Hilary, 2019).
 LP makes operational processes more efficient by including food and agriculture,
engineering, transportation,manufacturing and energy.
Identify a problem set from your selected organization to apply linear programming.
While applying Linear programming in an organisation to solve the specific problems or
concerns there are some difficulties faced by organisation. The major problems are equality as
well as inequality constraints. With many problems required the maximization of function
whereas other required the minimization. There are other problems related with the LP defined
and treated in several different manner. In context of KFC they face respective problems while
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implement the linear-programming within the organisation in order to gain the desirable
outcomes.
Apply the linear programming for the problem set for your selected organization.
For an organisation application of linear-programming plays very much important role to
overcome from the problem of decreasing performance of the operations of organisation. As
organisation facing difficulties in meeting their business objectives in proper manner (Dai and
Tayur, 2019). With the help of linear-programming organisation can be able to minimize the
cost of production for gaining maximum outputs. In context of KFC they by using the
programming models that helps to decision maker in efficiently and effectively employ the
production factor and in limited resources to get the maximum kinds of outputs at minimum cost.
By using linear-programming they can be able to visualise factor that directly affect on their
business performance in positive manner.
Interpret & write conclusion about the result of linear programming solution for your
selected organization.
In context of KFC by using the linear-programming as they suffer from the declining in
their operational efficiency helps to cut cost in order to gain the maximum outputs. KFC by
utilizing various kinds of programming models that helps to visualize different aspects and helps
in taking the decisions in most effective manner. From application of Linear programming it has
been analyse that it is most effective tool for an organisation in cutting cost and visualize various
factors that directly affect on the business works and activities in positive manner (de Sousa
Jabbour and et.al., 2019)
2.2: Critical Path Analysis
Define critical path analysis:
Critical path analysis is a widely used project management tool that avail the network
analysis to assist project manager in order to handle the complex and time sensitive business
operations (Critical Path Analysis, 2018). In context of KFC which is large food and beverage
organisation which get involved in the projects that are very much complex and required the
significant investment. As the complexity increases it become more necessary for KFC to
evaluate the relationship in between the activities involved and work in most effective manner to
gain desirable outcomes.
Discuss network diagram and along with two approaches.
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Network diagram is kind of visual representation of computer or telecommunication
network by showing components which build network. Respective networks helps in interaction
with routers, devices, hubs and firewall. Network diagram shows the local area network rely on
the scope, purpose and many more other details. In context of KFC which face problem of
declining their operational efficiency with the help of network diagram can be able to interact
with the people and reach at the desirable goals and objectives.
Activity on Arc: In respective tool the nodes are events or milestones which denotes the start
and finish of set of various activities of the project and shows the precedence relations in
between nodes (de Sousa Jabbour and et.al., 2019).
Activity on node: Respective approach denote about the project management term in precedence
diagramming method by using in box format to denote scheduling activities. In respective
approach various boxes or nodes are connected from beginning to end with arrows to show
logical progression of dependencies in between scheduling activities.
Explain the concept Early start, Early Finish, Latest Start and Latest Finish with formulae.
Early start and early finish shows the activity on network path can start and earliest it can
finish the work in proper manner (Meredith and Shafer, 2019). If organisation want to start an
activity very early and want to finish earlier that only possible by using full resources. The
formula of early start and early finish dates: Early start of activity= Early finish of predecessor
activity+ 1. Early finish of activity= Activity duration+ Early start of activity-1.
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Illustration 1: Critical-path method, 2020

Latest start and latest finish:
It indicates the latest time an activity on the network path can start earlier and latest it
can finish. By acknowledging the how much late last activity on network path can start and still
finish within the specified time that directly impact on critical-path (Panigrahi, Bahinipati and
Jain, 2019). It depicts how much an individual scheduled their activities with flexibility.
Late start of activity = Late finish of activity – activity duration+ 1. Late finish of activity =
Late start of successor activity – 1.
Usage of critical path.
Critical path is very much important for an organisation and their specified teams by
allowing them in identification of various tasks in project (Qi and Shen, 2019). In context of
KFC which faces problem regarding the not performing well in context of operation
management, in that regards critical-path plays very much important role that are as follows;
Shortened timelines:
While the critical path displayed as an bar chart such as Gantt chart helps in visualizing
the critical-path activities with duration to complete task and their sequence. In context of KFC
that are good in their operational management activities with help of timescale and their
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Illustration 2: Critical Path Method (CPM) in Project Management, 2020

specified duration can put one of their best efforts by assigning roles and responsibilities to each
individual.
Improved resource management:
By using critical path that provides clear direction and enhance visibility about potential
requirements in near future (Raut and et.al., 2019). In context of KFC by identify critical tasks
and expectations of ownership they can get rid of competing priorities and lack of direction. In
that regards every one in teams are aware about tasks that need to take place by allocating
resources in better manner.
Better planning:
The critical-path analysis or method helps to compare the planned progress by comparing
with actual progress. Throughout the whole project, project management identify tasks that
already get completed and predicted the progress in order to gain the desirable outcomes. In
context of KFC to improve their results they with help of better planning can overcome from the
obstacles in order to remain competitive in marketplace.
Limitations of critical path.
There are some limitations of critical path that is its complexity as it does not adapt in
proper manner to making potential changes in project. Drawing CPD diagram takes too much
time and effort.
Two strategies to complete critical tasks on time.
For an organisation it is very much important to complete the task on time and it can be
possible by planning project in proper manner. By accumulating the knowledge and information
regarding project so that desirable outcomes should be achieved. The another important tool is
execution of project on proper time, in context of KFC to improve their performance it is very
much potential for them to use Gantt chart and other tools to scale activities in proper manner.
Chapter 3: Operational Plan
3.1: Operational Outcomes
Operational Performance Objectives
Quality: Quality is foremost responsibility to always provide one of best product or service to
consumers claimed (Reid and Sanders, 2019). It also consist doing the right thing on right time
to specifically meet consumers requirement. In context of KFC in the quality performance
objectives consist of quality of food in form of delicious, fresh and healthy.
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Speed: Speed defined as how fast the organisation respond against consumers, respective factor
is very much important in rush hours of restaurant. In context of KFC they are obliged to provide
fast delivery of food with accuracy.
Dependability: It shows the doing things with accountability or promises as it helps to gain trust
of people but also enhance cost in improving efficiency. In context of KFC, they majorly rely on
the raw material such as chicken to produce food.
Flexibility: IN context of flexibility KFC have very much variety in their products, services and
solutions in dynamic marketplace. By building product as per the consumer choice organisation
can be able to gain profitability and sustainability in marketplace.
Costs: In context of cost in products and services which helps to organisation to compete with
environment and market. In context of KFC, the major cost is food, manager and staff salary. So
they by setting priorities and accordingly provide benefits to them in order to cut down the cost.
Benefits of Operational Performance Objectives.
The major benefit of operational performance objectives consist of measure of
organisational operations performance in regards of quality, scope, dependability and flexibility
so that performance should be improved positively (Raut and et.al., 2019). They provide
specified spheres in which organisation can measure their performance and adopt the strategies
in order to gain the desirable outcomes. In context of KFC they face problem of decrease in their
level of performance that can be improved by focusing on respective subject areas.
3.2: Critical Path Analysis for Operational objectives
Develop an operational objective.
 Develop the jointly resourced program as per consumer demand to reduce the product
return to less than 2%.
Identify and write the activities to be conducted to achieve operational objective along with
its duration.
The major activities related to reduce the product return consist of Get sizing and spaces
to change mind of consumers in regards of returns in 1 month. The second step is through
product listing to give clear idea to consumer about their buying in 2 months. Provide Zoom able
pictures so consumers see finer details of products. Make small print clear so consumers
understand return policy within 4 months. Offer live chats so that consumers ask questions and
package to prevent breakages in 2 months. At last promote accurate delivery within six months.
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Develop the network diagram and identify the critical path.
To access the product return of consumers it is very much important to divide works and
activities into various segments by using the timescale. In context of KFC which wants to lessen
down the consumer returns in that regards the respective structure plays very much important
role in achieving desirable goals and objectives.
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Develop a table identifying ES, EF, LS, LF and Slack.
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Analyse the critical path.
Critical path is the Longest chain of activities related with the project plan which must be
completed for project to finish it on due date. In context of KFC they put efforts in order to
reduce consumer returns. In that regards organisation set priority to set the spaces to change
consumers mind within a month and it can be possible by accessing consumers needs and wants
in proper manner. By providing product listing so that consumers can take appropriate decisions
regarding the product they actually want to purchase so that returns of products should be
minimised. There are some other efforts such as provide zoom able pictures, print very clear and
live chats with consumers so that organisation can access requirements of their potential
consumers positively. So it is very important for an organisation to access the critical path in
order to analyse the consumers needs and issues they actually facing. The critical path is to
analyse consumers demand and reason behind returning products so that proper steps should be
taken to improve results positively.
CONCLUSION
From the above report it has been concluded that operation management plays very much
important for organisation which is majorly concerned for designing and monitoring the process
of production of products and services in potential manner. In the operations of business consist
of various functions that are supply chain, marketing, finance and human resource in order to
gain desirable goals and objectives. With the help of linear-programming organisation can be
able to improve their performance by cutting cost of business operations optimally.
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REFERENCES
Books and journals:
Agrawal, V.V., Atasu, A. and Van Wassenhove, L.N., 2019. OM Forum—New Opportunities for
Operations Management Research in Sustainability. Manufacturing & Service
Operations Management. 21(1). pp.1-12.
Babich, V. and Hilary, G., 2019. Blockchain and other distributed ledger technologies in
operations. Foundations and Trends® in Technology, Information and Operations
Management. 12(2-3). pp.152-172.
Dai, T. and Tayur, S., 2019. Healthcare operations management: A snapshot of emerging
research. Manufacturing & Service Operations Management.
de Sousa Jabbour, A.B.L. And et.al., 2019. Decarbonisation of operations management–looking
back, moving forward: a review and implications for the production research
community. International Journal of Production Research. 57(15-16). pp.4743-4765.
de Sousa Jabbour, A.B.L. And et.al., 2019. Circular economy business models and operations
management. Journal of Cleaner Production. 235. pp.1525-1539.
Meredith, J.R. and Shafer, S.M., 2019. Operations and supply chain management for MBAs.
Wiley.
Panigrahi, S.S., Bahinipati, B. and Jain, V., 2019. Sustainable supply chain
management. Management of Environmental Quality: An International Journal.
Qi, W. and Shen, Z.J.M., 2019. A smart‐city scope of operations management. Production and
Operations Management. 28(2). pp.393-406.
Raut, R.D. And et.al., 2019. Linking big data analytics and operational sustainability practices for
sustainable business management. Journal of cleaner production. 224. pp.10-24.
Reid, R.D. and Sanders, N.R., 2019. Operations management: an integrated approach. John
Wiley & Sons.
Online:
Critical Path Analysis, 2018. [Online]. Available through.
<https://www.tutor2u.net/business/reference/critical-path-analysis>.
Critical Path Method (CPM) in Project Management, 2020. [Online]. Available through.
<https://pmstudycircle.com/2014/01/critical-path-method-cpm-in-project-
management/>.
Critical-path method, 2020. [Online]. Available through.
<https://slideplayer.com/slide/4008682/>.
Linear Programming: Meaning, Characteristics, Assumption and other Details, 2020. [Online].
Available through. <https://www.businessmanagementideas.com/business-
management/linear-programming-meaning-characteristics-assumption-and-other-
details/537>.
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