Beans & Beans Café Operational Management Plan

The assignment requires creating an operational management strategy for Beans & Beans café. This includes analyzing the business's operations, identifying critical components such as locations, size, type of facilities, worker skills, technology, processes needed, and quality control methods. The plan also emphasizes the importance of supply chain management in reducing operating costs by ensuring quick delivery of products and avoiding costly inventories. A comprehensive operational management strategy is essential for the café to ensure effective use of resources, satisfaction of customers, and long-term success.

Running Head: Operations Management 1
Operations management

Operations Management 2
Executive Summary:
Operational planning is considered as process of planning the strategic goals and objectives of
the organization. It usually provides milestones, conditions related to success, and state in what
proportion strategic plan will be put into operation during operational period. An operational
plan is actually basis and justification of the operating budget on annual basis. Therefore,
strategic plan for five years include 5 operational plans and these plans are funded by five
operating budgets.
Operational plans must prepare activities and budgets related to every department of the
organization by linking the strategic plan of the organization with the activities of the
organization.

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Contents
Introduction:...............................................................................................................................................4
Brief overview of company:.........................................................................................................................4
Operational plan:.........................................................................................................................................4
Functions of operation management:.........................................................................................................5
Critical components:................................................................................................................................5
Relationship with value chain and decision making:...............................................................................6
Decision making in operation process:........................................................................................................7
Role of operations management in the strategic management & supply chain:.........................................9
Conclusion:................................................................................................................................................10
References:................................................................................................................................................10

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Introduction:
Operations management is considered as that area of management which mainly design and
control the process related to the production and redesigning of business operations while
producing goods and services. Operations management mainly ensures that business operations
of the organization conduct efficient use of resources for the purpose of meeting the business
objectives and requirements of customers. Operation section related to the business plan reflects
the picture of what generally goes in the day to day activities of the business (Sanders, 2014).
This report mainly creates an operational plan or process map for a coffee shop named as “Beans
& Beans”, and for this purpose this report focuses on three areas which are stated below:
 First area identifies the critical components related to the functions of the operation
management in different organizations, and also states their relationship with the decision
making and value chain.
 Second area define the principle and quantitative methodologies for the purpose of
assisting the decision making in operation process such as operational planning,
scheduling, and inventory management.
 Last section evaluates the role of operations management in the strategic management of
organizations and supply chains.
Lastly, paper is concluded with brief conclusion which state key points of the report.
Brief overview of company:
Beans & Beans coffee house will be the place for coffee lovers and this café serves high quality
coffee with the trendy snacks, and a soothing ambience to its customers. Customer oriented
strategy of the company includes convenient location and excellent customer service for the
purpose of building strong customer base.
Owners of this café possess long term management experience in the food & service industry.
Main products of this coffee house includes gourmet coffee products such as espressos,
cappuccinos, lattés. Coffee shop also serves different types of snacks which also includes healthy
alternatives.
Operational plan:
Operational management is not an individual process, and it is more concerned with the
complete transformation process which means complete business. It reflects the changes
occurred in the competitive environment, and what operations have to be conducted for the
purpose of meeting the future challenges. It is related to the long term development of its
operation resources and processes so that they can provide the basis for a sustainable advantage
(Geoffrey, 2000).

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Functions of operation management:
Operations management is considered as that business function which mainly manage the
process of creation of goods and services, and it involves different functions such as planning,
organizing, coordinating, and controlling all the resources of the organization which are required
for producing goods and services of the organization.
Critical components:
Following are critical components of the operational management functions which also support
the decision making and value chain process:
Design of goods and services: operational management of café mainly focus on the premium
design for goods and services offered by them to the customers. This area of operation
management reflects the high-end brand image of the firm. Main character of the café is linked
with the differentiation generic strategy of the company, and also with the premium pricing
strategy.
Quality management: Beans & Beans use best component in context of quality management,
and for this purpose company take its source coffee beans directly from the farmers who meet
the quality standards stated by government.
Process and capacity design: this area of the operations management ensure effectiveness in
cost by providing efficiency in the workflow and other process. It is considered as one of the
important contributors to the success of café. Process of the café must be highly efficient, and for
this purpose café improves its capacity utilization by designing such process which meets
fluctuating demands (Kattering University, 2016).
Job design and human resources: human resource management is the most important function
of any organization. Culture of café involves such attitude of employers which ensures cares for
the workers of the café, and it also involves functional positions and positions for management of
inventory.
Supply chain management- supply chain of this involves process in which café directly contact
with the farmers for the purpose of getting coffee beans. Strategy of the café also involves
diversification of the suppliers for the purpose of ensuring stability in the supply. Therefore, it
can be said that in this area of operations management, café ensures ethics and meet its corporate
social responsibility.
Inventory management: inventory management at the café is directly related with the supply
chain of the firm and also with different facilities. Inventory management of the café involves
office automation and manual monitoring of activities (INC, n.d.).

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Relationship with value chain and decision making:
In 1985, porter introduced the concept of value chain for the purpose of examining the functions
of the performance of the company and their relations with the source which ensures competitive
advantage. It considers the café actions in context of activities and also analyzes the importance
of different activities which are helpful for producing and delivering final product or service
(MHED, n.d.).
Above stated components play very important role in the value chain and decision making
process of the café. Through these components café develop competitive advantages and create
value for shareholders. It works as separate system and conduct different actions which create
value for business. It not only create value for business but also provide support in decision
making, as they provide relevant information related to the different processes of the
organization to the management, and this information is used by management while taking the
decision.
These components also help the café in achieving the competitive advantage over their
competitors. These components help the organization to ensure that process and activities
conducted by the organization meet the requirements of the customers. T can work as a
framework which assesses the performance of the organization, and also assess required changes
to achieve the objectives set by the café. Value chain activities of this café includes following
characteristics (Linkedin, n.d.):
Inbound
logistics
Outbound
logistics
Operations Marketing &
sales
Service
Café get its raw
materials from
the suppliers, and
they mainly
focus on
maintaining
strong and best
relationships
with its
suppliers.
Café sell its
products through
store and all its
stores are
licensed. Ready
products of the
café are shipped
from its
warehouse to its
retailed stores.
Café purchase,
roasts, and sells
high quality
coffee beans
other products
related to coffee.
Beans & Beans
roast there for
more period of
time as compared
to other coffee
makers.
Marketing and
sales are
considered as
most important
process of the
brand value
chain, and this
process add lots
of value to the
business.
Café mainly give
attention to the
customer’s
service and it is
considered as
most important
area of the value
chain.
It must be noted that for providing better services to the customer’s café also provides online
services to its customers and these services are provided through website of the café and mobile
app. Process map for the same is stated below (Choi, 2007):
Customers need to sign in
for further process
Customer is directed
towards ordering page
Open mobile app on
device

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Process map for online orders
Decision making in operation process:
Operation process is considered as branch of management science which defines the factors
contributes in organization success while conducting day to day operations of the business. It
develops and applies those methods and techniques which help in designing and implementing
such systems which are effective and efficient while conducting activities in the organization.
Customers directed
towards checkout from
which they place order
Customer add required
items to the cart
Customers choose location
Menu of the café shows
up
Deliver the order to the
customer.
Take actions to complete
the order
Nearest café receives the
order

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There are number of operational issues which range from purchasing to the final distribution of
the products and services. From last few years, organizations witnessed increase scope of
operations management and how this function contributes in the growth and profitability of the
organization. Café develop the capability to deliver its products and services as fast speed and
ensures cost cutting in the production process. It provides competitive advantage to the café and
improves production efficiency.
Before conducting any activities in the operation management, it is necessary for café to ensure
successful decision making. Decision making is considered as most important process of any
organization and complete process of the organization is based on this single process. It includes
evaluation of alternatives for the purpose of identifying the best solution related to the problem.
While making the decisions, management also analyzes the pros and cons of every alternative
solution.
Application of operations management must be run in smooth manner and achieve the goals and
objectives of the organization. Following are some principles which must be taken into account
while making the decisions of the organization:
Planning- planning is considered as base of any area of management, and on this framework
related to the operations management of the organization is built. In this administration assess
the present stage of the café, and where it wants to be in the upcoming future. In this
management of the café determine the appropriate course of action and then find out the way to
implement them for the purpose of attaining the objectives set by organization.
Implementing- implementation is also considered as most important function of the
organization, and in this function café conduct, manage and monitor the activities planned by the
management. Effective implementation helps the staff of the café in achieving the goals of the
organization with their personal or career goals. It ensures motivation of the employees,
communication with employees, department dynamics, and department leadership.
Scheduling- Beans & Beans generally use automated and manual scheduling process for
conducting different business activities in the organization. Café applied such schedules for
managing the human resource which are flexible in nature. This area of operation management
directly related with the objectives of the process with streamlining processes, as it allows some
degree of flexibility in the management positions of the café.
Quantitative approach to the management of the organization involves the use of quantitative
techniques such as statistics, information models, and computer simulations, for the purpose of
improving the decision making. Quantitative approach of operation management include
following components:
 Computers models can be used by the managers for the purpose off determining best way
to do something, and this saves both money and timing of the café.
 Café can also use mathematical forecasting as it helps in making the projections and these
projections are useful in the process of planning.
 Inventory modeling helps the organization in controlling inventories by mathematically
determining how and when to put order for a product.

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 Management can use queuing theory for the purpose of allocating services to human
resource or workstations for the purpose of reducing customer waiting and service cost
(Cliff notes, n.d.)
Café’s operations management use different types of strategies in context of productivity criteria,
and some of these strategies are stated below:
 Average order filling duration for the productivity of café.
 Coffee beans weight processed on the basis of time.
 Duration of equipment repair.
Role of operations management in the strategic management & supply
chain:
The main purpose of the operations strategy is to provide a plan for the operations management
for the purpose of ensuring best use of its resources. Policies and procedures are specified by the
operation strategy for the purpose of using the resources of the café and support its long term
competitive strategy. In this café frames the effective framework for the purpose of supporting
operation plan of the organization and also link the operational plan with the main objectives of
the organization.
It must be noted that, operational plan of the café is responsible for managing the resources
which are required for producing the goods and services. Operational strategy is considered as
that plan which mainly specifies the design and use of resources for the purpose of supporting
the objectives of the organization. It includes various factors such as locations, size, type of the
facilities, skills of the worker, technology, processes needed, and quality control methods.
It is necessary to link the operational strategy with the business strategy of the organization, and
it must be of such nature as it helps the organization to achieve its long term plan of the
organization (CSCMP, n.d.).
On the other hand, supply chain management also play important role in the operation
management, as it is considered as most integral part of most businesses and considered as
important part of the organization success and satisfaction of the customer:
 It ensures delivery on right time, as customers expected organization deliver the products
on time. This can be understood through example, if café does not deliver its products on
time then it reduce the satisfaction of the customers.
 Generally, customers expect that café served the products quickly even before the time
they commit.
Supply chain management also reduces the operating cost of the organization in different ways:

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 It helps in reducing the purchase cost by ensuring quick delivery of the costly product for
the purpose of avoiding hold of costly inventories.
 It helps in reducing the production cost by ensuring cost efficiency (Florida tech, n.d.).
Conclusion:
After considering the above facts, it can be said that Beans & Beans café can ensure effective
operation management in the café by including all the critical components in the strategy. This
report provides a plan for the operations management which ensures best use of its resources.
Inventory management at the café is directly related with the supply chain and value chain of the
firm and also with different facilities.

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References:
Choi, K. (2007). The value chain's use for the service industry. Retrieved on 19th March 2018
from: https://www.tandfonline.com/doi/abs/10.1080/10941660108722094.
Cliffs Notes. Quantitative School of Management. Retrieved on 19th March 2018 from:
https://www.cliffsnotes.com/study-guides/principles-of-management/the-evolution-of-
management-thought/quantitative-school-of-management.
CSCMP. The Importance of Supply Chain Management. Retrieved on 19th March 2018 from:
http://cscmp.org/CSCMP/Develop/Starting_Your_SCM_Career/Importance_of_SCM/
CSCMP/Develop/Starting_Your_Career/
Importance_of_Supply_Chain_Management.aspx?hkey=cf46c59c-d454-4bd5-8b06-
4bf7a285fc65.
Florida tech. Supply Chain Management vs. Operations Management. Retrieved on 19th March
2018 from: https://www.floridatechonline.com/blog/process-improvement/supply-chain-
management-vs-operations-management/.
Geoffrey, C. (2000). “Managing in the Info Era.” Fortune, pp. F6–F9.
INC. Operations Management. Retrieved on 19th March 2018 from:
https://www.inc.com/encyclopedia/operations-management.html.
Kettering university, (2016). 10 Critical Decisions of Operations Management. Retrieved on 19th
March 2018 from: https://online.kettering.edu/news/2016/09/21/10-critical-decisions-
operations-management.
Linkedin. Porter’s Value Chain - Does it serve the service industry?. Retrieved on 19th March
2018 from: https://www.linkedin.com/pulse/porters-value-chain-does-serve-service-
industry-rajesh-bhadwal.
MHED. Introduction to Operations Management. Retrieved on 19th March 2018 from:
https://www.mheducation.co.uk/he/chapters/9780077133016.pdf.
Sanders, N. (2014). Operations Management Defined. Retrieved on 19th March 2018 from:
http://www.informit.com/articles/article.aspx?p=2167438.