Operations Management Case Study

The aim of this assignment is to discuss the application of multiple operational management concepts, and the varying effects they impel on the efficiency of an organisation. ‘Operations Management is the function that refers to the management of resources that create and deliver products and services to the customer’ (Slack, et al. 2014). An operations function is a critical part of every organisation, and is ultimately a highly influential factor in how efficient and effective an organisation is. The use of operations management has an overall effect on company profitability and is a major contributor in an organisations strive to reach its long term strategic plans. If implemented well operations management can lead to business success but

McDonald’s practises the JIT theory in an attempt to operate on a lean strategy. Serving over 60 million people in more than 100 countries every day, yet despite the forecastable high demand, as part of the JIT strategy the food is not cooked until the specific order is placed. Atkinson (2005) suggests that McDonald’s creates high customer service by producing products faster, whilst allowing customers to place special orders inclusive of adaptations of the set menu, without resulting in panic or delays. The ability to adapt to special orders keeps waste to a minimum, is cost effective and maintains

Chopra et al. (2013) suggests that the manufacturer and suppliers, transporters, warehouses and retailers are all involved in creating a product or service to meet customer demand. One of the most fundamental elements to a successful organisation is a well-managed supply chain. By implementing supply chain management an organisation is able to control the whole production pathway, largely benefitting both product quality and production time, as a result expenditure and waste is reduced. Through implementing command and control methodology larger organisations such as Tesco can secure maximum efficiency through the supply chain. Holding suppliers to account through robust terms and conditions and contractual