AQS Corporations - Qayamali

8/3/2019 AQS Corporations - Qayamali

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Projectof

Operations Management

Submitted to:

Mr. Asif Ur Rehman

Prepared by:

Mr. Qayamali Suchwani

G.R. # 2201147

HAMDARD UNIVERSITY, CITY CAMPUSI


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S. NO TOPICS PG. NO

1 Introduction 4

2 Project Selection 5

3 Product Planning 6

4 Capacity Planning 6

5 Location Planning 7

6 Process Planning 7

7 Layout Design 9

8 Job Design 9

9 Supply Chain Management 10

10 Inventory Management 11

11 Quality Management 12

12 Maintenance 12

13 Conclusion 13

14 Reference 14


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Operations Management

(AQS Corporation Case Study)

INTRODUCTION - OPERATIONS MANAGEMENT:

Operations management can be defined as the planning, scheduling, and control of the activities

that transform inputs into finished goods and services. In other words, it is a field of study that

focuses on the effective planning, scheduling, use, and control of a manufacturing or service

organization through the study of concepts from design engineering, industrial engineering, and

management information systems, quality management, production management, accounting,

and other functions as the affect the operation. (APICS Dictionary, 1995)

Operations management concerns making the most efficient use of whatever resources an

organization has so as to provide the finished goods or services that its customer need in a timely

and cost effective manner. (Barnett, 1996).

Activities that relate to creation of goods and services through the transformation of inputs to

outputs.

Operations management is related with the strategy of the organization. In this coursework, we

will demonstrate the relationship between the operations management and the strategy of the

organization with the help of a corporate entity.

The corporate entity is AQS Corporation.


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PROJECT SELECTION

The city of Karachi and Lahore are especially famous for its food streets and their items and

circumstances indicates that as the people have no time so they required some handy and speedy

items like fast food or more.

So on that research based report, analysis was taken out for new project is AQS Restaurants

which serves the best quality of fast food items to the people of Karachi.

For that, we choose the WEIGHTED SCORING METHOD, to implement the project of AQS

Restaurant. Through this method we analysis the project, location and the feasibility of the

Restaurant and the customers.


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PRODUCT PLANNING

An organization exists to provide products and services which can be purchased by other

organizations or an individual. Therefore planning of products and services is one of the most

important operations of any organization. It involves designing products with both economy andquality in mind, which a customer will find attractive, be able to understand and quickly able to

use with minimum risk and which delights him or her by its performance or flavour or durability

etc. (Bicheno, 2002; p51)

In AQS Restaurants, product planning is a key operation. It has to introduce the new product

with new features to its menu so as to meet the needs of the customers as their needs and

preferences are constantly changing. For instance,

The increasing preference of consumers towards healthy food made the restaurant add healthier

food items to its menu. Similarly it has to introduce the different seasons, for examples hot

coffee in winter and milkshakes in summer.

CAPACITY PLANNING

The second operation decision important for organizations is capacity planning. Capacityplanning and control is the task of setting the effective capacity of the operation so that it can

respond to the demands placed upon it. This normally means determining how the operation

should respond to fluctuations in demand. Operations managers usually distinguish between

short, medium and long-term capacity decisions. For short- and medium-term capacity planning,

the capacity level of the operation is adjusted within the fixed physical limits that are set by long-

term capacity decisions. This is also referred to as aggregate planning and control because it is

necessary to aggregate the various types of output from an operation into one figure. (Source:

http://www.mas.dti.gov.uk/content/resources/categories/fact/FACT_Capacity_planning.html )
http://www.mas.dti.gov.uk/content/resources/categories/fact/FACT_Capacity_planning.htmlhttp://www.mas.dti.gov.uk/content/resources/categories/fact/FACT_Capacity_planning.htmlhttp://www.mas.dti.gov.uk/content/resources/categories/fact/FACT_Capacity_planning.html


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In AQS Restaurant, the operations managers should set its capacity of making food items in such

a way that it responds quickly to the demands of those items in peak hours which is very

important for a fast food restaurant like McDonalds, KFC, etc. It also should be make sure that it

has enough stock ofingredientsto prepare food items which is very important because if one

ingredients fall short then the whole process of making food may halt. For instance if the buns

required for making hamburgers falls short then the restaurant may not be able to sell any

hamburgers even if it has enough quantities of other ingredients.

LOCATION PLANNING

Location planning is one of the important operations that every organization carries out and it is

essentially one of the critical success factors for any organization. Success or failure of any

organization may well depend on the location where it is situated. Therefore it is very important

for businesses to choose an ideal location. Businesses may choose location on the basis of

various factors such as proximity to the source of raw material, cost-effectiveness, proximity to

customers or suppliers, competition in the area, transportation availability and cost, availability

of resources, and availability of right labour.

AQS Restaurants also have to plan their location in such a way so that maximum customers visittheir restaurants. Therefore AQS prefer locations such that it can have large customer base,

transport access and availability of parking space. Moreover it also prefers locations that are

suitable for raw material delivery that is availability of ample space for deliveries of raw

material.

PROCESS PLANNING:

After developing the product the businesses have to develop processes for making and

supporting the product. Organizations have to identify appropriate processes which will be

needed to achieve required level of output of the planned goods and services at right quality

standards. Organization considers both the traditional methods in which the organization has

handled and processed its products and services and the possible alternatives which currently
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present themselves. That is, it considers the advancement of technology, computing power, and

evolving managerial expertise. (Bicheno, 2002; p99)

In AQS restaurant, the operations manager develop and establishes the process of cooking food

items so that food is prepared using that method which helps them to maintain the speed and the

quality of the food. Moreover it also designs processes so that the health, safety and hygiene

issues are taken into consideration. Also the managers keep on introducing latest equipments

with the advancement of technology so as to bring pace, perfection and quality in the product.


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LAYOUT DESIGN:

Layout is the arrangement of facility to provide working, service and reception, storage and

administrative areas. The layout is designed by traditional techniques using templates, scale

plans, string diagrams, and travel charting as they have been proved as low-cost methodsof achieving either optimal or near optimal layout plans. Poor layouts can greatly reduce the

overall capacity and overall productivity. Therefore care must be taken by organization when

designing layout. (Bicheno, 2002; p121)

In AQS Restaurant also layout designing is a very important operation. A proper layout of the

equipments in the kitchen is very essential to ensure preparation of quality food in less time. It

also designs its layout keeping in mind the health and safety issues. It also designs layout in such

a way that needs of supervision is minimised. Another factor that is considered is the cost of

production which also depends on the layout.

JOB DESIGN

Job design consists of formal specifications and informal expectations of an employees work

related activities. The job design should try to meet the needs of both the job holder and the

organization. Thus each job must be reasonable compromise of technical, economic, and

behavioural feasibility.

Technical feasibility: The person holding the job must be capable of performing the required

tasks with the resources available to them.

Economic feasibility: The cost of providing a salary to the employees, providing equipment and

maintaining the organizational environment must remain within the organizations capabilities.

Behavioural feasibility: The feeling that people derive from a job affects their motivation to

perform it.

(Greasley, 1999; p75)


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Job designing is also an important operation in AQS restaurant. Each employee is designed a

particular set of jobs. For example, some crew members cook food items in kitchen, some crew

member work on the counter, while others look after the customers in the lobby. Also there are

employees who manage the entire crew member and look after overall wellbeing of the

restaurant. While designing these jobs the technical, economical and behavioural feasibility is

taken into consideration.

SUPPLY CHAIN MANAGEMENT

In the simplest terms, supply chain management (SCM) lets an organization get the right goods

and services to the place they're needed at the right time, in the proper quantity and at an

acceptable cost. Efficiently managing this process involves overseeing relationships with

suppliers and customers, controlling inventory, forecasting demand and getting constant

feedback on what's happening at every link in the chain. (Kay, 2001; p1)

In AQS

Corporation , the restaurants also would have certain suppliers who supply them the with the raw

materials like buns, beef, chicken, patties, ketchup, sauce, mayonnaise, disposable cups, food

packaging materials etc. Therefore it has to manage its relationship in an effective manner so as

to get the raw materials at the right time, in proper quantity, and at acceptable cost.


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INVENTORY MANAGEMENT

Inventory management is another important operation of any organization. It involves choosing

the best method of inventory control. While choosing the method of inventory control, the

organizations must keep in mind the expected demands of the products. The basis on which theorganizations choose their methods of inventory control may differ but the common idea is to

ensure that the mix of inventory types is able to satisfy customer needs and deliver the required

profitability and cash flows.

In AQS the inventory is managed on the basis of First-In-First-Out basis. This is because most of

the inventory consists of perishable items. Therefore delivery of inventory would occur twice or

thrice a week depending on the business of the restaurant. Moreover inventory is stored in

freezer with proper packaging so as to ensure freshness of the food items. All this activities

comes under inventory management of the organization.


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QUALITY MANAGEMENT

Quality management consists of maintaining the quality of the goods and services so as to meet

the minimum requirements laid by the industry. Moreover it is important so as to keep up the

reputation of the organization. To manage and maintain the quality of the products and servicesthe organization may adopt a number of practices like quality checks procedure etc.

Quality in AQS restaurant will be very important because of two reasons. Firstly because of the

legal requirements of the quality of food served. Secondly, to keep up the good reputation which

AQS restaurants for earnings over the years. Quality of food can be very difficult to maintain and

therefore AQS restaurant carry on a number of practices to make sure that quality food is served.

Some of these practices will be visits by the food inspector from the head office, supervisor

checks etc.


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MAINTENANCE

Maintenance means preservation of the things in the organization. In simple words, maintenance

is way of protecting your production workers, office workers, drivers, and all the other users of

your organizations assets.

(http://www.maintenanceresources.com/ReferenceLibrary/MaintenanceManagement/The_Battle

_of_Maintenance.htm)

In AQS, there are several equipments that will use for the preparation of food. Therefore it is

very important to maintain and service those equipments so as to maintain the quality of the

product, safety of the employees and to avoid further costs of repairing machines. Other

important things that need maintenance are hygiene, costs, quality etc.
http://www.maintenanceresources.com/ReferenceLibrary/MaintenanceManagement/The_Battle_of_Maintenance.htmhttp://www.maintenanceresources.com/ReferenceLibrary/MaintenanceManagement/The_Battle_of_Maintenance.htmhttp://www.maintenanceresources.com/ReferenceLibrary/MaintenanceManagement/The_Battle_of_Maintenance.htmhttp://www.maintenanceresources.com/ReferenceLibrary/MaintenanceManagement/The_Battle_of_Maintenance.htmhttp://www.maintenanceresources.com/ReferenceLibrary/MaintenanceManagement/The_Battle_of_Maintenance.htmhttp://www.maintenanceresources.com/ReferenceLibrary/MaintenanceManagement/The_Battle_of_Maintenance.htm


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CONCLUSION

Therefore we conclude that operations management is very important for any organizations as

they have a relationship with the overall strategy of the organization. Operations management

contributes to the strategy and therefore helps the organization to gain competitive advantage.For instance, process planning can help the organization reduce cost and gain cost advantages

and therefore gain competitive advantage. Therefore the organizations must effectively manage

the operations of the business as it has a massive effect on the strategy of the organization.


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REFERENCES

http://ebooksclub.org http://Six Sigma - New Quality Approach to Quality Management and EfficiencyImprovement.htm http://euro2007.vse.cz/, retrieved March 22 (2007) G. Nagy and S. Salhi, Location-routing: Issues, models and methods,European

Journal of Operational Research 177 (2007) 649672.

J.F. Shapiro,Modeling the Supply Chain, Duxbury (2001). http://www.mcdonalds.com.pk/ www.google.com.pk(for pictures and images). www.kfcpakistan.com
http://ebooksclub.org/http://ebooksclub.org/http://www.mcdonalds.com.pk/http://www.mcdonalds.com.pk/http://www.google.com.pk/http://www.google.com.pk/http://www.kfcpakistan.com/http://www.kfcpakistan.com/http://www.kfcpakistan.com/http://www.kfcpakistan.com/http://www.kfcpakistan.com/http://www.google.com.pk/http://www.mcdonalds.com.pk/http://ebooksclub.org/

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