SUSS BUS351 Operations Management Group-Based Assignment Report

This report addresses the strategic considerations for establishing a new centralized kitchen, focusing on location and layout design. The report recommends either Junction 8 or Toa Payoh as optimal locations, emphasizing their central positioning and accessibility. Factors like competition and security are evaluated, with a focus on future growth potential. The layout design section analyzes the traffic flow between workstations, particularly the procurement office, beverage kitchen, and bakery, in relation to the loading/unloading area. The report proposes adjusting the layout to minimize distances and potential risks, suggesting the procurement office be placed closest to the loading/unloading area to improve efficiency and safety. The report concludes with a call for action to implement these recommendations to streamline kitchen operations.

Running head: OPERATIONS MANAGEMENT 1
Operations Management
Name
Institution

OPERATIONS MANAGEMENT 2
Question 4
Memorandum
TO: Mr. William Woon, the CEO
FROM: {Name}, Kitchen, and Procurement Director
CC:
DATE: {date}
SUBJECT: Recommendations for the Location and Layout of the New Centralized Kitchen
This memo provides suggestions for the proposed Centralized Kitchen project. The
recommendations major on the location of the kitchen and its designed layout.
Location
I propose that we choose either Junction 8 or Toa Payoh as the locations for the Centralized
Kitchens. While using a rectangular coordinate system to pinpoint potential locations, both of
them appeared centrally located from Sensota. A centralized location is ideal since the distance
from other potential positions is shorter compared to the other locations.
Centralization is also a crucial factor if we consider the accessibility aspect of the kitchen. The
accessibility to customers, suppliers, and labor (employees) would be optimal in either of these
two locations. Due to shorter distances, the kitchen would easily receive the clients from other
locations nearby like Vivocity, Parkway Parade, IMM Center, and the rest. This also means that
the suppliers would also deliver over shorter distances to get to the kitchen.

OPERATIONS MANAGEMENT 3
However, we have to consider other factors before settling on a specific location. One of these
factors is high competition from the local businesses, which would affect the kitchen adversely. I
propose that we scope out any competitors in the two locations before eventually making our
decision. This would eliminate any losses we could incur by setting up in a highly competitive
location.
Security is another location-related concern before setting up a Centralized Kitchen. An insecure
location may lead to inventory losses due to robbery. We would also suffer a low customer base
since an insecure location would repel potential clients. A thorough security check is paramount
to help us determine the safeest location for the kitchen.
Additionally, the location should provide the potential for future growth. The best location would
be one that has additional space in case of future expansion plans. A congested location would
constrict the future prospects of expansion and would warrant a shift in locations. Therefore,
with the aim for future expansion, the location we choose should afford us the opportunity of
future growth.
Layout Design
The layout for the centralized kitchen also requires some adjustments. A meeting between
directors compiled an analysis of traffic between different workstations and the
loading/unloading area. This analysis showed that the procurement office, which is furthest from
the loading/unloading (L/Ul) area, has the most traffic followed by the beverage kitchen and the
bakery respectively.
Movement count L/Ul A B C
L/Ul 0 14 30 40
A 0 7 7
B 0 0
C 0

OPERATIONS MANAGEMENT 4
Table 01. Movement count between different workstations.
The procurement office is sixty meters away from the loading/unloading area while the beverage
kitchen is forty meters and the bakery twenty meters.
The distance to the procurement office is longer than all other working stations. Due to the
distance, certain inconveniences and risks are bound to arise. Apart from longer loading and
unloading, the distance also creates a risk of losses incurred in case of breaking accidents for
materials in transit.
To mitigate this inconvenience, I propose the positioning of the procurement office closest to the
loading/unloading area followed by the beverage kitchen and bakery. The bakery, which has the
least traffic, should be farthest while the procurement office should be closest to the
loading/unloading area. The proposed layout will reduce the distance and as a result, the time it
takes to move goods between the procurement office and the loading/unloading area. The
materials will travel shorter distances and therefore reduce the possibility of accidents and
shorten the loading/unloading times.
I hope that these recommendations will help smoothen the setting up of the new centralized
kitchen.
My sincere gratitude.