supply chain mechanism on KFC PDF

Table of Contents
1. Key characteristics of the selected organization 3
2. Analysis of the achievement of organization’s performance objectives through
operations management processes & it’s effectiveness 3 - 6
3. The measures taken & it’s effectiveness in responding to the market changes 6 -
7
4. The effectiveness of up-stream and down-stream supply chain mechanism 7 - 8
5. Evaluation of effective use of new technology and challenges faced 8
6. Conclusions and Recommendations 8 – 9
7. References 9
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1. Key Characteristics of the selected organization
Cargills Ceylon holds the refinement of presenting a well – known restaurant and the second
largest fast food restaurant which KFC to Sri Lanka, which was established in 1995. Cargills
Restaurant Systems was able to build up to deal with the esteemed KFC franchise and to give
an unrivaled dimension of administration. Also, maintains the KFC’s international standards
which is sourced to the best local producer. The first restaurant was opened in Majestic City,
Colombo which has now extended to over 30 restaurants island wide and has over 1800
employees who are directly employed (Cargills, 2019).
2. Analysis of the achievement of organization’s performance objectives through
operations management processes & it’s effectiveness
Operations Management
“Operations Management is the activity of managing resources which are devoted to the
production and delivery of products or services” (Slack et al, 2007). This is the foundation for
the achievement of the organization since it briefs the facts of day-to-day operations,
prompting the conveyance of products to its customers. KFC uses a B2C approach, where the
process is taken place between the organization and the customers. This uses strategies to
take over costs, create a quality brand and to hold consumer loyalty.
Dimensions of Operations Management
Volume
Refers to “the scale of output of a process” (Jones and Robinson, 2012). There is a high
volume in KFC since it produces around 3000 products of all kinds for a day. They must
assure that its quality and taste of all products should be the same every time.
Variety
This refers to “the range of products produced by a process” (Jones and Robinson, 2012).
KFC produces various types of items such as Burgers and Wraps, Snacks, Biryanis, French
Fries, Sawans, Smart – Combo Meals, Family Meals, Krushers, Desserts and Beverages to
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maintain their demand and to satisfy their beloved consumers. It has an enhancing menu with
a choice of items to captivate their consumers. Therefore, it has a high variety.
Variation of Demand
Referred to as “how the rate of output varies from a process overtime” (Jones and Robinson,
2012). In KFC, there is a variation of demand for its products. Such as, during the Ramazan
season, there is a high demand for Sawans, Chicken Buckets and Biryanis. So, KFC has a
high variation in demand since the demand is seasonal based.
Visibility
This means “the amount of value – added activity that takes place in the presence of the
customer” (Jones and Robinson, 2012). This has a high visibility. It is because the customers
are provided with their orders within a short period of time. KFC has a good management
team that co-operates with the customers in a friendly manner. This is an advantage for the
organization.
Performance Objectives
This is how the operations function contributes to achieve the idea of an operations-based
advantage. It has five objectives. They are as follows;
Quality
This means “doing things right” (Pycraft et al, 2007). In every organization, almost every
customer investigates the quality of the products. The company should provide products of
free – errors to its customers. At KFC, it serves the best products which has a high quality
with a better taste. Also, it has a qualified workforce to produce the meals and to vigor the
customers. KFC also has won awards as the organization for good manufacturing practices
and the national productivity award (Cargills, 2019). Therefore, this shows the quality of the
company.
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