BM563 Operations Report: Evaluating JIT Practices at KFC for Success

This report delves into the operations management practices of KFC, focusing on the implementation and impact of the Just-in-Time (JIT) inventory management system. It examines how JIT is utilized to minimize inventory costs, increase efficiency, and enhance customer service quality within KFC's business environment. The report analyzes the advantages and disadvantages of JIT, including its impact on supply chain management and the importance of strong supplier relationships. Furthermore, it evaluates the potential of technology, such as internet, intranet, and artificial intelligence, in optimizing JIT processes within KFC. The report concludes by highlighting the supporting functions linked to JIT, emphasizing their role in reducing waste, improving efficiency, and ensuring organizational success through effective inventory management and customer satisfaction.

Operations and Service
Management
1

Table of Contents
Introduction .....................................................................................................................................3
Task .................................................................................................................................................3
Operation management practise within chosen organisation ..........................................................3
Analyse how this operation management practice impacts the organisation in regards to
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

and ordering, information management and stock control and delivery and supply chain
management. In context with KFC company, the organisation is mostly using their operation
practise is Just in time practise.
Just in time is regarded as the inventory management system which helps the
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 context with KFC organisation, they are following JIT approach 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 such disposal 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

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
relation with KFC corporations, if accounting departments is managing staff such as
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
on quantity and quality of products and services (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 is Internet 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 is artificial 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
KFC in 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

 Enhancing productivity: This JIT operation management is having another function by
reducing their time and resources while manufacturing their products an 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
market trends (Xiang, and Nor, 2021). As if the products are coming less from
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. and Soares, A., 2021. The impact of digitalization and
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., THE IMPACT OF GREEN HUMAN RESOURCE MANAGEMENT
PRACTICES AND KNOWLEDGE SHARING ON SUSTAINABLE
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. Examining Marketing and Operations Integration in Public Sector
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