Developing Good Business Sense

April 13, 2014

Developing Good Business Sense
1. Choose three companies and observe how employees do their tasks. These can be three different fast-food restaurants or three entirely different types of companies, such as a fast-food restaurant, a department store, or the emergency room of a hospital.
I chose McDonald’s, Burger King and Wendy’s to relate how employees do their tasks. All three have employees taking orders, taking the money, making the orders, bagging the orders, and giving the orders to the customers. All of these employees are responsible for cleaning up and restocking during down times. Managers are responsible for making sure this process runs smoothly or makes changes, such as moving employees from one area to another so that the food is delivered to the customers appropriately and timely. Managers are also responsible for resolving customer complaints such as receiving the wrong items or missing items from the order.
2. Think about the differences in the operations involved in the input, operations, and output stages of these companies. Try to identify the nature of their operating systems. Are employees organized in different ways? If so, why? If possible, talk to the managers and employees in these operations to further your analysis.
The employees of all three fast-food restaurants are organized into three groups…managers, customer facing employees, and production employees. The customer facing employees take the orders from the customers, repeat the order to the customer, inform the customer of the order total, and receive payment from the customer for the order. While the customer facing employees are involved with the customer, the employees in production, the cooks, are preparing the food in accordance with the customers’ request and making sure they have the raw material, individual food items and condiments, necessary to prepare the food. Once the cooks have completed cooking the food order, the customer facing employees gathers the food items and drinks either in a bag or on a tray and gives the order to the customer.
The employees are organized in different ways so that the employees in that particular area can focus on that one area which increases productivity and efficiency. For example, the customer facing employees are focused on the customer. This concentration of focus is to ensure that the customer’s order is accurate, the appropriate money is received, and the correct change is given back to the customer.
3. What are the main kinds of OMM costs companies have? How does this affect their OMM operations?
The kinds of OMM cost that each fast-food restaurant has are raw material, plant, labor, inventory, and distribution. The raw material for these fast-food restaurants would be the individual food items such as hamburger patties, buns, salad mixture, chicken nuggets, etc, beverages such as coffee, tea, soft drinks, and condiment such as mustard, mayonnaise, and ketchup.
Plant costs would consist of the cost of the building that houses the fast-food restaurants, grills, fryers, refrigerators, freezers, and registers. Labor costs are the total amount of employees pay which involves the rate of pay per hour, the number of hours, and type of hours whether regular hours or overtime hours.
The inventory costs would be the cost of the raw material like hamburger patties, buns, condiments, etc, and miscellaneous products like cups, lids, straws, wrappers, utensils, and napkins. Distribution costs would be the cost to transport the raw materials and paper products from the source to the individual store location.
The OMM costs negatively affects their OMM operations when there is a lack of resources in order to complete the operation process which is to provide the customers with the food and beverages they ordered. If there is a lack of raw materials, labor, or inventory, the fast-food restaurant will not be able to produce the orders to satisfy the customers’ request. Conversely, if these fast-food restaurants have the required resources to complete a customer’s order, the production process will be complete and the order will be provided to the customer.
4. How do companies design their operating systems to give them a competitive advantage?
Because all of these fast-food restaurants deal in making orders specific to a customer’s request, they utilize small batch production. Even though each of these fast-food restaurants offers a variety of food and beverage options, these