The Five Performance Objectives of a Business - Restaurant - Essay Example

OPERATION MANAGEMENT By: + 0 Introduction It is the desire of every businessperson to make profit through the provision of services to their clientele. Technology, professional staff and all other necessary infrastructures are normally in place to guarantee clients satisfaction. However, it is not always that clients feel satisfied after visiting a particular place for services. On the other hand, it is rare that the business owner realises the dissatisfaction that their client experience. The long-term effect of this trend is that clients look for other places to have better services, effectively sending the business owner bankrupt. However, this need not be the case if there business owners are committed to operation management. In this paper, the purpose is to give a report on the findings that were collected after visiting one of the best restaurants in the city. The second part of this paper will explain the types of process technology that were observed in the operations. Thirdly, capacity constraints that existed in the operation will be discussed. Finally, there will be recommendations offered on the best way to improve the operations at this specific restaurant. 2.0 Five performance objectives evident As noted above, every business would want to make profit and ensure that clients are satisfied since this is the only way to ensure long-term benefits. However, every business’ success is majorly dependent on the quality of management (Schmidle, 2011; Evans, 2004). In short, a business that overlooks the five performance objectives will seldom witness profits and its existence and seemingly, profitability will be short-lived. Having participated in the visit to the mentioned activity, this section will explain how the five performance objectives were utilised in the restaurant. The figure below represents the five performance objectives of a business. Figure 1.0 Source (Meyer et al, 2014). 2.1 Cost Prices often act as one of the reasons customers flock or forsake a particular business, thus the right pricing ought to be practiced with careful consideration. These assertions are informed by the fact low price does not always translate into profitability. Similarly, high prices are not a clear reflection of high quality products (Heidhues and Kőszegi, 2014; Wacker, 2004). In this particular restaurant, the food prices were set as per size and quality with some costing as much as $100 while others as low as $5. Having observed the place for the at least two days, it became apparent the patrons loved the place because of this seemingly balanced pricing. While clients expect the prices to be low yet the commodities to be of high quality, this is not always tenable because of the requirements. Some of the most expensive products take much more time to prepare than the low-priced ones. Surprisingly, the scenario in this particular restaurant seemed to strike a balance between the two. Even though there were commodities whose price was not as high as others, the value was not significantly compromised. Nevertheless, one could tell that, some of the foods served, were not of high quality, hygiene remained uncompromised. The importance of this objective on this restaurant is that it tends to attract clients from all social class. Even though there are many people who flock this place, it seems that the pricing attracts a majority of them, and this has an advantage on both the business owner and clients. Every business ought to be focused on the best way to satisfy its clientele since without them there can be no future. This statement can be said to be applied in the restaurant, especially concerning the pricing of the commodities. 2.2 Speed Besides demanding low-priced commodities, the other needs almost every client demands is convenience, which is evidenced by the time it takes to serve. It has been claimed that because of the pressures that the majority of people are facing in the 21st century, the last thing customers wants is a business whose service delivery is sluggish. With more people involved job and educational demands, it is imperative for every business to assure its clients of this much-needed service (Quintiliani, 2010; Lewis, 2010). This objective cannot be rated highly in this particular place since there was only a few staff serving the customers. While the few serving clients tried t the prompt in serving the many people flocking the place, it was noted that the clients were slowly served owing to the few staff. This is an objective whose importance to the restaurant is imperative, but one that is not satisfactorily exercised. As reported above, there are times when clients have to take time before being served especially the ones who are not familiar with the self-service technology available to them. While self-service is available for the patrons, the staff serving these customers are not as many they ought to be, and this compromises the profitability. Overall, the restaurant has a potential of growing its clientele base, but this all-important objective is not sufficiently addressed, meaning it could stifle these objectives. 2.3 Quality In some cases, clients are willing to spend more in order to get quality as opposed to acquiring a product at an incredibly low price yet the value lacks. A business that strives to offer quality products tend to have longer success than others whose commodities come at a low price. The reason for this is that a majority of clients tend to be concerned first with the service a product will give them. In other words, people would want to see the value of their money, and where this is need is not met, there is a likelihood of customers’ behaviour leaning toward others who can meet this expectation (Bellou and Andronikidis, 2008; McMullan, 2005). At this restaurant, quality has not necessarily been compromised since they prices are set depending on the ingredients used in the foods. Also, some commodities are highly priced because of both their value and quality. Worth noting here is that customers have a variety of foods to choose from whose prices vary, as does the value. Nonetheless, the quality remains almost the same because the major requirements such as hygiene and health concerns are adequately addressed. This objective is important to this restaurant because without quality, many, if not all, of the clients could seek the services elsewhere. This statement is made as a result of the observations made regarding the class of people who frequent the restaurant. 2.4 Flexibility Because of the challenges that the business worlds tends to have, every businessperson is expected to possess qualities that can ensure the investable obstacles businesses face are overcome. In order to do this, Bamford and Forrester (2010) argued one way to do so is to be flexible. By flexibility, it is meant that individuals can offer wide range of products depending on the needs of the customers. While the businessperson who decides what to offer to the client, the latter dictates their preferences. Any sign of error or misunderstanding on this area could render a business ineffective because clients are only interested in fulfilling their needs. Though it cannot be said that the restaurant has sufficiently embraced flexibility, it is clear that with the great number of clients running up daily, it has done so significantly. As the paper will show elsewhere, the management has failed in delegating the staff, and this tends to delay the delivery of some services. Therefore, one could conclude that when it comes to the flexibility in the business, a lot has been done, but there are still areas that require improvement. In the case of this restaurant, this is an important objective, which has actually helped its growth since the customers come from various backgrounds. On the two –day visit to this place, it was noted that the customers are always informed of a certain meal to be introduced beforehand. That is to say, as the clients enjoy their meals, there is an advertisement running on one of the screens available detailing about the upcoming food. Therefore, there is frequent change of foods depending on the clients’ preferences as well as the innovation by the management. 2.5 Dependability A business could promise and purport to offer services characterised by the above-mentioned qualities, but the dependability that makes all the difference. According to Meyer et al (2014) customers want to know that they can rely on a certain company or person to offer the services they are looking for, and so consistently. Dependability talks of ensuring clients that they rely solely on your business to give them the much-needed services without any uncertainties as long as they have that particular need. In fact, where clients feel they cannot rely on the services offered in a business, the future of that business remains bleak. Dependability is often judged through how clients leave the business every time they visit. Additionally, a business whose operational hours do not correspond with the preferences of the clients is often described as unreliable irrespective of the other services it might offer (Betous-Almeida and Kanoun, 2004). While all the other previously mentioned objectives are vital, this is one of great importance as well, and the restaurant has utilised to its benefit. The information gathered confirms that the business owners operate until the late hours since some customers leave their workplace at that hour. Secondly, the staff have been organised in a shift system whereby some rest while others work, thus ensuring efficiency without compromising either quality or dependability. Also, the restaurant tends to know the kind of foods consumed most, hence prepare these foods in a way that no customer leaves without being served. Consequently, this eatery has become of one the most preferred in the city, and clients keep flocking mainly because of the objective of dependability. 3.0 Technology processes Unlike in the past when the production of a commodity or a service tended to be tedious, the innovation and subsequent development of technology has eased the production process. Whether it is the preparation of food in a restaurant or companies in the automobile industry, technology’s impact on the production of good is overwhelming. Consequently, even once-complex processes have become pretty easier to carry out owing to the usage of technology (Johnston et al, 2012). In the restaurant visited, this was not exceptional since many of the processes did not require much human intervention. First, it was not a requirement for customers to have liquid cash as they paid since Visa cards were accepted. This one technological process greatly helps in serving the clients because customers did not need to ask or wait for a change. It seemed a majority of clients embraced this service here, and it enabled the management move on quickly with serving the clients. Secondly, various foods served in this place are cooked using different machines unlike in the past when this would not happen. For instance, electric equipment was used in the preparation for most of the foods. Thirdly, the place has a screen that shows the menu as opposed to having a menu on every table. In addition, when the management intends to introduce a new type of food, the screen makes this announcement in a way to catch the attention of the present clients. Finally, if a client needed to be served anything additional, they could press a bell from their seat, and this made the service almost seamless. Clearly, the technology has been used in this restaurant, and this could perhaps explain the large number of customers whose visit to this place seems like it will continue. 4.0 Capacity constraints To reiterate, there is no businessperson starting a business without the primary objective of making profit. However, this goal is not always easy coming since there are a couple of things, which tend to be unpredictable. Adding to this list is capacity constraints which tend to limit the output a business can have. When a business is in seriously capacity constraints, profit margins are affected largely, though this can be managed (Schobel, 2009; Bustos, n.d.). There are several types of constraints including physical, marketplace, paradigm, policy and bottleneck, to name but a few. 4.1 Physical constraint The kind of constraint that results from machines especially when the available machines cannot effectively deliver the services at the needed time. Physical constraint is evident in this restaurant especially when it comes to the POS machine. Apparently, the eatery has only three of them, which, surprisingly, are not fast enough to serve the long queue of clients waiting. While the customers who are being served seem to persevere, this trend, it is appropriate to state that one physical constraint the management has not found a solution for. 4.2 Bottleneck constraint This kind of constant tends to be catalysed by a shortage of resource yet the demand for the same is overwhelming. In other words, customers would demand a particular good or service whose materials are rarely found (Dhamala, 2011). From such constraints, business owners find it hard sometimes to guarantee constant supply of certain services. A closer analysis on this restaurant, it became clear that it has this constraint. While much of the food the clients demanded was available, one type of food whose supply was lower than the rest. Upon further enquiring, it was noted that the management could get enough of this thus making it a constraint. 4.3 Policy constraint While this kind of constraint is not as resource-based like others, it influences the business output, nevertheless. Normally, this kind entails self-imposed guidelines by the management on how certain processes have to be carried out. Without much scrutiny, policy constraints could be detrimental to the business goals, thus require intense assessment (Withers, 2004). The other constraint was noted to exist at the restaurant visited. Apparently, the management has limited the number of cashiers to only two in a bid to ensure accountability. Secondly, the staffs who are tasked with serving clients cannot do anything else. Whereas this might seem as an organisation meant to ensure delegation, it becomes a hurdle because when the restaurant is filled with clients other staff cannot assist the ones tasked with serving. 5.0 Improving the operations There are several theories that could be applicable to this situation in order to improve its operations including Theory of Constraints (TOC) and Six Sigma. In order to improve the efficiency of the systems and subsequently increase the productivity, business people can apply either of these. TOC tends to focus on the major issues a business face- constrains or obstacles. After identifying the constraints or obstacles, TOC recommends the business to use the constraints as leverage to improve its systems (Hyde, 2012). One of the principles applied in the TOC theory is that business owners ought to focus on balancing the flow and not the capacity (Blackstone, 2010). Therefore, the restaurant visited ought to first analyse the constraints after which the necessary rectifications will be made. In this case, it is imperative to ensure that when there is a queue of clients who want to pay, other staff ought to participate. As indicated above, the management of flow, not capacity that ought to be addressed. Secondly, the TOC encourages continuous improvement, which is an important part of every business. This is done through the identification of the system’s constraints after which a decision is made on the best way approach the constraints. In the case of this restaurant, the constraints have already been identified as slow serving of clients due to shortage of staff. Also, a shortage in the supply of some types of food, which coincidentally seem to have a higher demand, is another constraint. Once the decision is made, one has to ensure everything else is subordinated to the constraints (Albeanu et al, 2010). That is to say, instead of increasing the resources, for instance more staff in this case, the management can simply organise the staff such that they fit in the constraints without compromising the quality of the services. Upon carrying out the mentioned steps, elevation of the system’s constraints comes as the next step. This step calls for the innovation by the firm to ensure that the constraints are leveraged to give the business an upper hand. Finally, once the constraints are broken, it is imperative for the business owner to keep analysing the process to ensure there is no recurrence. In the case of the food that seems to have a higher demand yet the supply is low, the management could decide to ensure clients have the other food they cherish, and that it is served in plenty as per the demand Bibliography Albeanu, M., Hunter, I. and Radford, J. (2010). Six Sigma in HR transformation. Farnham, England: Gower Pub. Bamford, D. and Forrester, P. (2010). 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