Colonna and Small's Cafe: Operation Management and Analysis Report

This report provides a comprehensive analysis of the operation management and service excellence at Colonna and Small's cafe. It begins with an overview of the cafe's location, capacity, shop layout, and competitors, followed by a detailed examination of its operation management processes, including purchasing, batch production, serving styles, stock management, mass production, and continuous production. The report also explores the seven wastes prevalent in the cafe's operations, such as transport and inventory, and discusses the 4Vs of operation management: volume, variety, variation, and visibility. Furthermore, it highlights the performance objectives and supply chain of the cafe, along with quality management practices relevant to its business operations. The report concludes with a summary of the key findings and recommendations for enhancing the cafe's operational efficiency and service quality.

OPERATION
MANAGEMENT AND
SERVICE EXCELLENCE

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
Overview ....................................................................................................................................4
Operation management process..................................................................................................6
Performance objectives.............................................................................................................11
Supply chain of operation.........................................................................................................13
Quality Management with relevance to different business operation.......................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Operation management is one of the important task for the organisation. It is the process
to administer business practice so that high level efficiency can be created. This is related to
converting material and labour into goods and services so that company can attain maximum
profit (Heizer, 2016). Colonna and Small's is Contemporary cafe that is specialist in coffees and
different type of cakes. This organisation provides various product and services to its customers
which are according to taste of people. In the present report, importance of operation
management along with its process, performance objective, required supply chains and quality
measures are explained.
TASK
Overview
Location:-
Colonna and Small's is cafe which is operating effectively in UK. This organisation is
gaining largest profitability and trying to be one of the coffee shop in term of revenue. It is one
of the leading cafe which is located in Chapel Row, Bath BA1 1HN, UK. There are around 25
employees are working in current and this organisation has covered large local area of market
where they are providing their services.
Illustration 1: Map of Colonna and Small's
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Capacity:-
Colonna and Small's divides its customers into rich and poor with the use of club-card
data. They provide their services by targeting their customers on the basis of different market
segmentation (Neck and Manz, 2010). They have capacity to provide their services to approx
100 people at a time.
Shop Layout-
This organisation is providing their services in effective manner. It has attractive layout
where there is a reception so that they can entertain visitors and provide them services. The
environment of coffee shop is also very healthy and positive where people can visit with their
family and friends. The sitting arrangement of cited shop is good where there is four and six
seater capacity available. There is an specific place where they can provide their services to large
number of customer at a time.
Competitor:-
Market competitors of this company is-
 Regency Cafe
 Laynes Espresso
 Coffee and Desert.
Services Offered:-
Colonna and Small's offers number of product that are best suitable as per the demand of
people. This organisation makes the contribution to strengthen the market position of UK and
formulate effective plan to provide compelling offer to buyer with sharper price, quality and
better service (Smith, Maull and CL Ng, 2014).
Colonna and Small's
MENU LIST
ESPRESSO
 Espresso £ 25
 Cappuccino £ 30
 Macchiato £ 25
 Latte £ 15 Americano £ 10
SPECIALS
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 Vanilla Bean £ 50
 Salted Caramel £ 40
 Affogato £ 55 Toffee Hazelnut £ 45
COFFEE
 Hand Brewed £ 55
 Black Cold Brew £ 60
 Machine Brewed £ 40 White Cold Brew £ 70
NOT COFFEE
 Tea £ 15
 Chai Latte £ 20
 Hot Chocolate £ 25
 Iced Tea £ 30
Operation management process
According to Caffeine Magazine editor, Colonna and Small's is one of the best coffee
shop in UK. They are able to provide their services at vast level. There are many variety offered
by cited company to this customers. This organisation covers under 30 best coffee shop of
Britain. Ripe and fruity Honduras are served by them as an expresso.
Operation management
In current market situation, this company tries to formulate new operation management
(OM) techniques so that they can enhance their productivity and effectiveness. This deals with
various aspects as supervision of product, procedures, service and supply chain.
It is related to production of goods and services. This ensures that operation of business is
efficient and effective to provide quality product to people.
Following are the process used in operation by Colonna and Small's
 Purchasing process: This process states the different stages that are considered by
Colonna and Small's in purchasing of material. Raw material is held in storage bin at
initial level and when total production process is completed then also output is stored in
storage bin. This process covers different elements as budgeted amount to fill purchase
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request, transformation of message to purchasing manager, convey to supplier so that
they can start manufacturing or arranging delivery for the company. Through these steps
purchasing process move (Hill and Hill, 2012).
Process of purchasing process-
Oval: Shows beginning or ending step in process
Rectangle: Depicts particular step or task
Arrow: Shows direction of process flow
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Need
Recognition
Information Search
Evaluation
Purchase
Post Purchase
Evaluation
Took Decision
to purchase

Diamond: Indicates a decision point
 Batch production: It is the system that divides total production system in small groups.
In Colonna and Small's, there is production of coffee and it is required to prepare in
different stages like first it is required to produce coffee beans and after that its grinding
and boiling then it passes through different stages like Nozzle and Faucet. These are the
important stages that are included in production of coffee in this company.
Serving
Colonna and Small's has effective serving style that they adopt to provide best treatment
to its customers. First, they serve water to them and after that one come to take order and provide
their services within time so that their time can't be wasted.
Stock
They have much stock so that they can provide their services to people. Sometime, there
is an issue where raw material is not easily available due to some crises. So they have stock in
much amount so that they can address demand of people.
 Mass Production: It is adopted by the organisation to produce large number of quantity
as comparison to batch production. Sometime, there is situation that arise in Colonna and
small's coffee shop where there is huge demand of its product. This step is covered by
this company in effective manner so that they can address the market demand in effective
manner (Gummesson, Lusch and Vargo, 2010). During this situation, there is no
requirement of high labour to manage such operations in effective manner.
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They use effective production process so that they can provide quality product and
services to number of people. There are many stages covered in this regard and this organisation
is effective in every aspects. Colonna and Small's make focus on every stage like Roasting of
coffee beans then its extraction after that cooling and concentration and final stage is Drying so
that they can make effective production. Continuous Production: This process is used when there is very high volume
commodity that is of high standard. In Colonna and Small's, there are various staged that
are involved in the production of coffee. They buy raw material from number of suppliers
and then they mix it well and process it from different molds so that they can get best
output. They process it from different machines so that they can provide best coffee to its
users.
Continuous process of manufacturing of coffee in Colonna and Small's coffee shop
Oval: It shows starting and ending point.
Arrow: This presents direction.
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Fill
(Allow water to
cool to just
below boiling to
avoid burning)
Stir
(Ensure that all the
grounds are
fully saturated)
Steep
(Allow to steep
For 3 to 4 Minutes)
Press
(Slowly depress
Plunger to filter,
then serve immediately)
Measure
(Take 2 tbsp of
sugar
and
6 ounces of water)
Clean
(Thoroughly rinse
both
pitcher and filter)

Rectangle: It depicts particular step or task
Seven waste:
Waste is something that adds no value. It is important for the company to reduce the
wastage so that they can enhance their profitability and productivity (Lashley, 2012).
Following are the seven waste as:-
 Transport: It is the requirement that is used to move material form one place to another.
This is considered in waste because it does not add value to product. It is waste because
for this step business pays money but does make nothing for organisation. Colonna and
Small's coffee shop is on precious location where there is better facility of transportation.
The customers can come to this shop through public transportation like Bus, metro train
and other.
 Inventory: It is the wastage because it is required for the business to expand money to
store inventory like coffee beans, powder and other things, packaging and to transport it
to another place. There is also chance of being damaged during transport.
 Motion: Excessive travel between work station, excessive machine movement from start
point to work point are some of the example of wastage of motion. Machinery is required
for preparing best coffee.
 Waiting: This is related to the time. There are many time where it is required to spend
time to wait for response of supplier and engineers and from other departments. Many
material and raw are supplied to this cafe by number of supplier. This is most obvious
wastage where waiting for things in working lives (Talib and et. al., 2011).
 Overproduction: It is related with making too much or too early. This is caused due to
working with oversize batches, poor relation with supplier and host of other reason. It
requires high level of inventory that is blocked for period of time.
 Over processing: This is related to techniques, oversize equipment, performance process
that is not required by customers.
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 Defect: It is caused sometime due to quality errors that affect more then the expectation.
Defective item require rework and replacement that may result in loss off number of
customers.
4V's of operation management
Operation management is the process to produce goods and services so that demand of
customers can be fulfilled. It is easy to see the final out put but hard to determine the various
stages required for it. To understand the complete process it is required to identify 4V's i.e.
volume, variety, variation and visibility (Evans and Lindsay, 2013).
 Volume Dimension:- It is the process to identify how many product and services are
completed by operation. Colonna and Small's has high volume production where they are
effective where they can provide their services to large number of customers.
 Variety: It is required to discover that how many types of product can be produced by the
operation management. There are different varieties are available in this coffee shop and
these are very tasty to attract people. Different taste of coffee as Hand Brewed, Black
Cold Brew, Machine Brewed, White Cold Brew are available in cited organisation.
 Variation: It is the changes that can be made in the product produced. This is essential
task for the organisation to adopt new modification which are appropriate for the growth
and development of the company. Colonna and Small's is effective to adopt new variation
of market so that they can provide better services. There are many technologies are
adopted by them in their operation like new developed machinery and system so that they
can make effective production.
 Visibility: Colonna and Small's coffee shop is visited by number of customers in a day
because there are many better facilities are offered by them. They try to provide better
deals to its user so that they can increase number of customers. Due to these effective
services, they are effectively visible to number of people. They use different process so
that they can track their consignment in effective way (Salah, Rahim and Carretero,
2010).
This is important segment for Colonna and Small's to identify all the 7 waste so that they
can adopt effective measures to eliminate such factors. It is required for Colonna and Small's to
transport its some of the material to other stores that consumes lot of time for travelling.
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Performance objectives
It is the milestone to achieve goals. This includes hazard prevention, risk mitigation,
emergency response and business continuity (Young Kim, Kumar and Murphy, 2010). Short
term goal is for development of program and long term requires more significant planning and
investment. Colonna and Small's has main objective to perform well so that they can achieve best
result out of it. It helps them to attain goals and objective.
Five performance objective
1. Quality Performance Objectives:
This is the one of the important task for every company to maintain the quality of its product and
services. It is required for organisation to use qualitative raw material so that final target can be
achieved in effective manner. Colonna and Small's is the company that always try to maintain
better quality of its product.
The cited organisation is effective in their services and it is the result of their quality
measures. Colonna and Small's provides quality assurance to people and customers are happy
with their services. Different products are offered by cited cafe and they consider quality
measures so that they can provide their services to large number of people. Customers have faith
on this cafe because of its qualitative services and product.
2. Speed Performance Objectives
Colonna and Small's is the company that is speedy to fulfil the needs and wants of customers,
address market demand, adopt variation and changes etc. The speed of their services are very
effective and they are able to quickly serve their customers (Lovelock, 2011).
Colonna and Small's has fast speed to service their customers. They have main goal to
fulfil the needs and wants of their consumers so that they can attain satisfaction of them. Cited
cafe provides training to its staff so that they can be more effective in providing their services.
They organise different training session and seminars and in these programmes, they invite
renowned faculties so that they can provide guidance regarding serving style and other things.
3. Dependability Performance Objectives
Dependability can be measured by the company by product ability to function as expected and to
perform regularly over a period of time. Colonna and Small's is able to offer its product when its
demand arise in market. Colonna and Small's is dependable in some part but they are effective in
every segment.
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4. Flexibility Performance Objectives
It is related to the ability of the organisation to produce new product and adopt the changes in
more quicker way. Colonna and Small's is able to beat their competitor by producing quality
product with some addition (Christopher, 2016). They always try to adopt new development
whether it is related to product, services, technology, market environment.
Cited organisation is very flexible to consider recent market changes. It provides
assistance to them to get best result out of it. They are effective in providing their services to
large number of customers because they consider variations in their operation.
5. Cost Performance Objectives
It is the variation that arise due to change in volume of product and variety of product developed.
There are many authors of operation management who are in favour that higher the variety of
product and lower the volume resulted in higher unit cost and vice versa. Colonna and Small's
provides various range of product for different user. The price of product and services are
effective that can be afforded by every user and they use impressive pricing strategy in their
operation for better pricing of their product.
The price of its product and services are minimal that can be easily afforded by middle
class people. They are effectual in term of cost as comparison to their competitors.
Improvement that can be made
This is important for Colonna and Small's to use improvised measures in their operation
so that they can address demand of people in better way. It is required for this company to
conduct market research so that they can identify the needs of their customers. There is one
weakness of this organisation i.e. diminished employee morale. So it is required for management
team to adopt effective measures so that they can boost the morale of their employees and
workers.This is important for Colonna and Small's to use pricing strategy (Gebauer and et. al.,
2012).
Supply chain of operation
Supply chain is most effective part of operational management of organisation. It is the
flow of goods and services that covers movement and storage of raw material, work-in-process
and finished goods. Many steps are important part of Colonna and Small's. They consider it
effectively so that they may have effective flow of operation.
Supply Chain process-
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