Operations Management : Doc

Operations Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................3
1. Inventory management.............................................................................................................3
2. Key operations.........................................................................................................................4
3. Points of failure........................................................................................................................6
4. Lean approach..........................................................................................................................8
5. Findings....................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Business operations are basically functions that are used for transforming inputs that is
resources into valuable outputs and products. Companies belonging to any industry be it service
or manufacturing has to adapt particular management strategies so that business objectives are
met easily. This report is based on operations management in a service and production industry.
Podium restaurant is a service system of Hilton Hotel that gives consumers best in class food and
services with banqueting facilities. The key operations and organisation's delivery system shall
be described in this assessment. A brief description of lean approach in production systems will
be given to create a better understanding about functioning of operations.
TASK
1. Inventory management
Restaurant is a production system that involves serving customers their desired food
items and beverages. Business objective or goal of achieving maximum customer satisfaction
can only be achieved when inventory and asset management techniques are efficiently managed
and applied (Slack, 2015). Podium restaurant has been experiencing increasing number of
customers and stakeholders after effective implementation of strategies. A systematic approach is
required to manage supply and demand in this industry. Forecasting, valuation, quality
management, asset handling, etc. are some operations which are classified in this category
(Zurich, 2016).
Podium restaurant being connected with Hilton hotel has a separate division where all its
supplies and raw materials are gathered. The basic purpose behind employing inventory and
asset management is to provide right commodity at right price and at right place. It can only
happen when things are organised and handled with extreme care and attention. Batch or lot
tracking is the first step in this production system administration (Krajewski, Ritzman and
Malhotra, 2013). The stock that is acquired in the restaurant is categorised according to their
attributes and amounts. Once this distribution is complete, a record system is generated that
looks after quantities of generated stock. This operation is necessary because employees will use
these items in producing dishes and beverages according to customer demands.
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Podium has just in time inventory management approach. It helps in reducing warehouse
space and costs for purchasing excess commodities. Managers take responsibility of identifying
need and then fulfilling them according to demand of time. Orders or demands of customers also
plays a significant role in arranging inventories and supplies (Karlsson, 2016). The company
uses a software which is specialised for handling these operations without creating
inconvenience for staff and employees.
Assets are the elements that can be helpful in generating profits either in future or in the
present (Subramanian and Ramanathan, 2012). There are different forms of an asset. It can be
inventory, human resource, property, excess profits, etc. Hilton Hotel's management includes
asset and inventory administrating system that takes care of business investments and profits. Lot
number or revision number is given to every item that is in the warehouse. It helps in tracking
the availability and accessibility of various items through this unique code. Podium has a billing
system that delivers respective bills to their customers after they make a purchase or complete
their respective meals. Bills and receipts are also a form or tool through which inventory is
managed (Brown, Bessant and Lamming, 2013).
Services that are to be provided to clients is an element of food production units. Waiters
and serving staff are counted as asset of the organisation because they are like sources of income.
Restaurant management can include service charges in their billing system so that better
recovery of investments is possible (Wang, O’brien and Li, 2010). Podium's service management
operations are also handled by the inventory management software. Despite of being a part of
service industry, this restaurant doesn't hold a product identification system because beverages
and food items which are prepared by the chef cannot be labelled. Hence, a separate menu is
prepared which contains list of items produced with their specific prices. Moreover, it would be
legitimate to infer that inventory and asset management system of Podium is smooth and
efficiently applied in Hotel's functioning structure. Optimisation techniques can also be implied
for forecasting future demands and order quantities (DeHoratius and Rabinovich, 2011). This
shall help in being prepared for sudden rise in customer requests during off-season times.
2. Key operations
Restaurant is a production system that involves real time dealing with customers and
fulfilling their expectations. Apart from food, ambience and human relations are two important
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