Operations and Service Management in KFC: A Case Study
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This report discusses the use of Just in Time inventory management by KFC, its impact on efficiency, and how technology can be embedded in the process. It also evaluates supporting functions linked to this operation management practice and how they can assist in ensuring organizational success.
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Operations and Service Management 1
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Table of Contents Introduction.....................................................................................................................................3 Task.................................................................................................................................................3 Operation management practise within chosen organisation..........................................................3 Analysehowthisoperationmanagementpracticeimpactstheorganisationinregardsto efficiency..........................................................................................................................................4 Evaluate how technology could be embedded in this process or evaluate how this has already been achieved...................................................................................................................................6 Supporting functions are linked to this operation management practice and evaluate how can they assist with ensuring organisational success?............................................................................7 Conclusion......................................................................................................................................8 References.....................................................................................................................................10 Books and journals.........................................................................................................................10 2
Introduction Operation is dealing with organising, designing, administration and controlling at the time of production of process of products and services. This helps the organisation in satisfying their customers and carrying out their aims and objectives in most effective manner. Operation is regraded as the management of processes that is converting raw material into finished goods and services. It consist of process of raw material, labour, time, energy into finished goods. There can be certain operation management practises which is to be used in organisation to enhance customers and their activities (Abou-Foul, Ruiz-Alba, and Soares, 2021). These practises are total quality management, lean manufacturing and delivery, just in time ordering and delivery etc. this helps the organisation in maximising their profits and revenues. This report consist of the organisational called KFC , it is one of the American fast food restaurant chain which was founded in the year 1930 by Colonel harland sanders and Pete harman. Company is situated under 24,104 locations and products in which it deals is Fried chicken, Salads, Hamburgers, French fries, Wraps etc. this report includes a discussion about one operation practise that is used in chosen organisation, then it consist of its impact on its efficiency, then it consist of how technology could be embedded in this process. And last there is a supporting function liked to this operation management practises. Task Operation management practise within chosen organisation Operation managements practises are mostly used for people management. Any of the departments focus on their activities. As operation management is involving getting the most out of company resources. It consist of employees, technology and equipments etc. it involves dealing with various areas starting from manufacturing to people management. Operation management practises are being used by organisation in order to develop their efficiency and profitability both (Alzyoud, Burinskienė, and Lerher, 2021). This helps in overcoming from various operational issues. Operation practise are most important for organisation because this helps in increasing productivity, providing better outputs and gaining competitive advantages and earning higher profits. This will helps them in satisfying customers needs and increasing their efficiency as well. There are some of business operation management practise which can be used in many of the organisation such as quality managements standards and system, purchasing 3
andordering,informationmanagementandstockcontrolanddeliveryandsupplychain management. In context with KFC company, the organisation is mostly using their operation practise isJust in time practise. Justintimeisregardedastheinventorymanagementsystemwhichhelpsthe organisation in minimising their inventory and results in increasing efficiency of the company. In this process of production, company is cutting down the cots of inventory because in this manufactures are being received materials in which they have to works and this results in not paying the cost of storage of a products and services. Also manufacturers are not left with unwanted inventory if an order is cancel or not fulfilled (Feizabadi, Gligor, and Alibakhshi, 2021). In contextwith KFC organisation,they arefollowingJITapproach of inventory management in their business environment so that they could reduced their manufacturing cost. In this inventory is divided into three types. These are daily, weekly and monthly inventory. The daily inventory includes products which are fast moving like Non- veg items and ice creams etc. then weekly consist of dry storage products suchdisposal plates and equipments of which recepies need to cook. Then in monthly basis it consist if detailed stock which is stock verification which could be presented in store for long time. Analyse how this operation management practice impacts the organisation in regards to efficiency Just in time inventory is refers to business approach or a philosophy of supplying the goods and services when it is being needed. As how much quantity is being needed by manufacturers. It consist of more than low stock level. It helps in eliminating waste and promotion fast changeovers and relation with suppliers more closely. This also helps in changing according to the demand. As a results of this operation management practises, the products and service are providing quickly and at low costs to the customer in most effective manner. It is mostly focusing on predictable material flow (Jeni, and Al-Amin, 2021). This allows company in minimising their work in process and finished goods and services. This overall leads in increasing efficiency of the organisational and results in increasing their profits as well. In context with KFC corporation, this operation management practise helps in increasing their service quality and inventory reduction, space for general activities and transferring the cost of labour to distributors etc. 4
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There can be some of the pros and cons of Just in time inventory. The advantages is that there production runs are some shorts that means a manufacturer could be easily move from one product to another. Then another advantage is that this methods helps in diminishing the cost of inventory. Company can spend on raw material less money because this could results in buying resources which is being needed for making the products and services. Then some of the disadvantages of Just in time inventory is that it includes possible break in supply chain. If a suppliers is breakdown and not delivering the products and services on a given time period then this could be resulting in conceivably stall the overall production line (Keshwan, 2021). In relationwithKFCcorporations,ifaccountingdepartmentsismanagingstaffsuchas manufacturer managing inventory, then results in increasing productivity and efficiency of organisation. One of the key feature of Just in time method is that it is a uniform process. From arriving of the material from suppliers and deliver to customers, this operation management practise aims at fluctuating the production rates. The first advantage is: Pull method: this is a method which is helps in smooth running of the process. In this system, products are being processed in one stage only if they are being needed in next stage. This system results in eliminating work in process inventory and also reduce wasting of time. This also results in prevention of wastage of defective products and goods. In KFC organisation, they are using this Pull method so that they could not waste more products and their could increase in profits and revenue of the organisation. Employee satisfaction and stronger relationships-it also helps in encouraging workers to engage with themselves and working in a team. This helps in improving production system and gain competitive advantage in the market among competitors (Liu, Li, and Yao, 2021). Further, this operation management practise encourage a strong relationship which is between suppliers and manufacturers. This helps KFC corporations in building strong and better relationship and increasing efficiency. Some of the negative impact JIT operating management system is discussed below: Risk of running out of stock: as by not carrying much stock, this may results in sometimes running out of stock. For this organisation should have to make effective relationships with suppliers. For this KFC organisation make a contract with suppliers that they could provide stock within certain time frame. 5
Lack of control over time:Relying on timeliness of suppliers is resulting in putting the company risk of delaying in products and services to the customers. If the company is not meeting customer expectation then this could be resulting in decreasing satisfaction of customers and they will not come after. KFC make sure that there products and services will be deliver to customers on time and there could not be any delay in their products to customers. Evaluate how technology could be embedded in this process or evaluate how this has already been achieved Just in time can be the operation management practises which refers to production of goods an services and meeting customer demands in most effective management. It is focusing onquantityandqualityofproductsandservices(Nielsen,Nikolajsen,Aagaard,2021). Companies are using various technologies in this process by achieving organisational goals and objectives. In this present era, JIT system includes some of the elements called continuous improvement, eliminating waste, good housekeeping, ,fixed production, setting up of time reduction etc. this all helps in enchaining customers and also reduction in waste as well. Some of the technologies which can be used in KFC organisation in order to enhance the scope of JIT approach in operation management. As effective use of technology in organisation is resulting in informing decision making process and reducing prototypes, cutting cost and improving quality as well. Some of the technologies used in organisation isInternet and intranet support. As JIT approach helps in smooth flowing of communication and information in a business environment. The use of internet and intranet enhance performance of organisation and communication capabilities. This helps the company in reducing uncertainties and reduce level of safety stock which is regarded as waste for JIT. This internet allows customers in ordering and further help KFC company in arranging there raw material,. Scheduling production, transportation coordination etc. in addition, it improves data flow and share information to supply chain partners. Then internet and intranet supports learning and creativity and improving process quality (Pereira, Budhwar, and Tarba, 2021). Electronic communication now a days are becoming formal, workers are facing more flexible while working in effective manner ad they should even express their ideas and innovation in reduction of company barriers. In context with KFC company, they are making use of communication techniques and there is a use of internet 6
and intranet while having conversation with customers and other employees and also it given employees to express their ideas and issues relating to their work in most effective manner. Then another techniques which can be used in KFC isartificial intelligence. AI is the process of automated decision making by collecting and processing the integrated information from all types of sources such as planning, scheduling, organisation, testing and customer service shipping etc. AI helps in Just in time operation management practises. As it helps in improving utilisation of production facilities and boosting performance as well (Quashie, And Baiden, 2021). Further, it increases efficiency through work of automation and reducing investments in their inventories as well. So theses technologies could be embedded in the process of JIT and are being used by KFCin order to implement operation management in the workplace. These techniques will helps the organisation in improving their quality, improving product development and reducing cost as well. Further, by using JIT process, the organisational goals can be achieved because this provides proper information about products quantity and by this there is a reduction of wastage. Supporting functions are linked to this operation management practice and evaluate how can they assist with ensuring organisational success? There can be various supporting functions which are being linked to this Just in time operational management practise. These are discussed below: Wastage reduction: this inventory management system helps in reduction of over- ordering and excess of all the kinds. It helps in reducing obsolete inventory ad reducing risk of inventory in warehouses or storage (Woo, Fatima, and Srinivasan, 2021). Further, it helps the company in identifying and fixing the production level which are low. This helps KFC in reducing their waste and cost and resulting enhancing customers services as well. Improving efficiency: JIT inventory management practise helps in eliminating cost that is coming up with extra raw material, product storage and unneeded inventory. This is considers as a most important supporting function because it raises inventory turnover ratio ad minimal inventory devolution. Further, this helps the organisation in receiving deliverables in small quantities and sell it to the customers. This helps KFC in reducing their cost and not left any products and services in warehouse. This overall results in enhancing their success. 7
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Enhancing productivity:This JIT operation management is having another function by reducing their time and resources while manufacturing their productsan services. Further, manufactures could be more fastly producing finished goods and services. And on the other hand it helps in simplifying the changes according to customer needs and markettrends(Xiang,andNor,2021). Asiftheproductsarecominglessfrom manufactures then company could be easily change their styles of producing and make improvements according to customers need and demands and also according to market trends. This also results in gaining competitive advantage among competitors. In addition it results in increasing efficiency of organisation and making profits as well. Improving quality: A good team member are focusing on making quality of goods and services. As KFC is making Hamburgers and French fries in mos effective manner. This Just in time inventory results in improving quality of products an services because if there is a order to fewer items, then manufacturer is also making quality of products which could later results in enhancing customer satisfactions and increasing their profits level also. From the above functions, these are being related with Just in time process. As these functions helps KFC in developing their efficiency and profitability (Alsharhan, Salloum, and Shaalan, 2021). These function helps KFC in reducing their inventory in storage and helps in making improvement in technologies and making updates according to market trends and customers demands as well. These function will results in providing success opportunities to organisation. Conclusion From the above it can be concluded that operation management is most important for every organisation to increase their efficiency and enchaining their profits as well. In context with KFC corporation, they are mostly using various operational practises in order to enhance their productivity and efficiency. In this report the selected is Just in time inventory. This helps in reducing cost of inventory and gaining more profits as well. This can create positive and impact impact of organisational efficiency. Then some of the technologies can be used in this process which helps in reduction of wastage and making effective contacts and relationships with team members. Then some of the supporting function will be resulting in linking with Just in time practises and by this organisational is reaching their success. By having these technologies, 8
managers of KFC are smoothly running their operational activities and service activities and this helps them in achieving as goals and objectives. 9
References Books and journals Abou-Foul,M.,Ruiz-Alba,J.L.andSoares,A.,2021.Theimpactofdigitalizationand servitization on the financial performance of a firm: an empirical analysis. Production Planning & Control, pp.1-15. Alsharhan, A., Salloum, S. and Shaalan, K., 2021. The impact of eLearning as a knowledge management tool in organizational performance.Advances in Science, Technology and Engineering Systems Journal,6(1), pp.928-936. Alzyoud,A.A.Y.,THEIMPACTOFGREENHUMANRESOURCEMANAGEMENT PRACTICESANDKNOWLEDGESHARINGONSUSTAINABLE PERFORMANCE: A CONCEPTUAL FRAMEWORK. Burinskienė, A. and Lerher, T., 2021. Improving Retail Warehouse Activity by Using Product Delivery Data. Processes, 9(6), p.1061. Feizabadi, J., Gligor, D.M. and Alibakhshi, S., 2021. Examining the synergistic effect of supply chain agility, adaptability and alignment: a complementarity perspective. Supply Chain Management: An International Journal. Jeni, F.A. and Al-Amin, M., 2021. The Impact of Training and Development on Employee Performance and Productivity: An Empirical Study on Private Bank of Noakhali Region in Bangladesh. South Asian Journal of Social Studies and Economics, pp.1-18. Keshwan,A.,2021.ExaminingMarketingandOperationsIntegrationinPublicSector Industries. Marketing, 15(8). Liu, C., Li, Z., Tang, J., Wang, X. and Yao, M.J., 2021. How SERU production system improves manufacturing flexibility and firm performance: an empirical study in China. Annals of Operations Research, pp.1-26. Nielsen, R.P., Nikolajsen, L., Paltved, C. and Aagaard, R., 2021. Effect of simulation‐based team training in airway management: a systematic review. Anaesthesia. Pereira, V., Temouri, Y., Budhwar, P. and Tarba, S., 2021. Cross-border acquisition performance of emerging market multinational enterprises: The moderating role of state-ownership and acquisition experience. Long Range Planning, p.102107 Quashie, M.A. and Baiden, B.K., 2021. Assessing procurement practices in the NGO sector: a case Study of the African women’s development fund (Doctoral dissertation). Woo, J., Fatima, R., Kibert, C.J., Newman, R.E., Tian, Y. and Srinivasan, R.S., 2021. Applying blockchain technology for building energy performance measurement, reporting, and verification (MRV) and the carbon credit market: A review of the literature. Building and Environment, p.108199. Xiang, T.W. and Nor, N.M., Lean Manufacturing Practices And Their Effect On Sustainability Performance: Insight From Selangor Manufacturing Industry. 10