INTRODUCTION

COMPANY PROFILE
KFC Corporation

based in Louisville, Kentucky, is the world's most popular chicken restaurant

chain, specializing in Original Recipe, Extra Crispy, Kentucky Grilled Chicken. Every day, more
than 12 million customers are served at KFC restaurants in 109 countries and territories around
the world. KFC operates more than 5,200 restaurants in the United States and more than 15,000
units around the world. It is the world’s largest and most well known chicken restaurant, with
chains in more then 10 thousand locations and worldwide in 80 countries. KFC and its franchised
employees are more than 200 thousand, all over the world. KFC is world famous for its Original
Recipe fried chicken -- made with the same secret blend of 11 herbs and spices Colonel Harland
Sanders perfected more than a half-century ago. Customers around the globe also enjoy more
than 300 other products -- from Kentucky Grilled Chicken in the United States to a salmon
sandwich in Japan

PARENT COMPANY
CUPOLA PAKISTAN

Cupola
 is a Dubai based multinational company and has been at the forefront of development in
Food & Retail sector for over a decade. Its flagship brand KFC has amassed itself as the
dominant concept in the Quick Service Restaurant (QSR) business in the country

KFC PAKISTAN
Food, fun & Festivity, this is what KFC is all leading the market since its inception;
KFC provides the ultimate chicken meals for a chicken loving nation. Be it colonel sanders
secret original recipe chicken or the hot & spicy version, every bite brings a yum on our face. At
KFC they say,
“We do chicken right”

KFC STRATEGY
It’s primary objective is to take advantage of the potential growth in other
countries. To establish a strong position and to develop their image .key success factors are
 Continuing cost saving through R&D
 Use of new technology and innovation to work efficiently
Their key factors will lower the cost and increase profit industry.

TARGET MARKET
KFC targets “HUNGER” ,and we know there are no compromises when it
comes to “HUNGER”

PRODUCTS OF KFC
KFC Pakistan provides 100% Halal and Hygienic products to its
customers. It offers a variety of finger-licking products, some of which are as follows:

 Kentucky fried chicken

 Zinger burger
 Krushers
 ·GameBox
 Twister
 Boxmaster
 Chicken Bucket
 Hot wings
 Fries
 Corn on the cob
 Zing Kong
 Snacker(chicken & veggie)
 Veggie Feast
 Soft Drink
 Coleslaw
 Chicken Thali
 Veg Finger
 Snack Box
 Sundae
 Soft Twirl
 Brownie Sundae

ORGANIZATINAL STRUCTURE
 CURRENT OPERATIONS
KFC SUPPLY CHAIN

SUPPLIERS IN PAKISTAN
There are two categories of suppliers.the DRY FOOD
SUPPLY and the FROZEN FOOD SUPPLY. For a dry food supply like a ‘burger –bun’
they have established their own warehouses .where as for frozen food ‘chicken’ they
have agreement with K &N chicken for suppling chicken and ‘fish’ is supplied by
Thailand and spices are supplied by dubai to all over restaurants in Pakistan.
-

WAREHOUSE

Pakistan is divided into two areas, namely North and South. The area below
Multan falls under the southern region whereas, Multan and the area above it falls under North
region. Each region hence has its own warehouse. The North region has its warehouse in Lahore.
The south region has its warehouse in Karachi

.
PROCUREMENT

Monthly budgets are made to plan purchasing activities. These comprise of

dividing the allocated budget into the inventory policies already defined at the warehouse from
past data and experience. FIFO method is used for all items for the inventory at the warehouses.

Chicken
Chicken is supplied by K&N’s in customized cut, packed and labeled packets directly to
the warehouses in each region. Labeling is necessary for inventory management and efficiency.
KFC gives a lead time to K&N’s of one week for them to deliver their order. The chicken arrives
in special freezer fitted van which keeps the chicken frozen while it is being transported. The
Supply Chain Management different types of pieces ordered by the warehouse are in baskets of 5
square feet and having a height of 8 inches. The vehicles used for this are small trucks which
have a maximum loading capacity of five tons.

Sauces
Unilever (Yum) provides all the sauces needed by KFC such as Ketchup, Chilly Sauce,
Mayonnaise, Tartar Sauce etc. Yum is a brand especially made for KFC and cannot be sold in
the market to the customers. These are delivered directly to each warehouse
by Unilever themselves. The lead time for this operation is about two weeks.

Spices and herbs

These are imported directly from Dubai and Singapore. The lead time for these exceeds two
months as these are not perishable items and it takes a lot of time for transportation. All imports
are done through sea in dedicated 20” containers for KFC.

Packing Material
This is purchased from local parties namely Afeef Packaging, AAA and Gold Packages. Due to
frequent re-designing of boxes and deals offered by KFC, the inventory of these is kept at a
minimum.

Bread and Buns

Supply Chain Management Since the last 4 or 5 years KFC has been producing
their own buns in their own bakery. Their plant is located at Sohrab goth, Karachi.
Fish
Information was not provided. Internationally, fish is bought from Thailand. But in Pakistan,
fish is bought from local vendors as it is a low selling item.

French Fries
These are imported directly from America. They are also imported to Pakistan by Yum
company through china where they also come from America.

STORAGE AND INVENTORY

MANAGEMENT
Chicken
Inventory of chicken is for 15 days. The storage area for chicken is not in the warehouse
itself but in a separate cold storage area built right beside the warehouse in each region. Before
marinating, the chicken is stored in an organized form in six separate cold storage rooms whose
area is around 45 to 50 square feet, having a height of around 7 feet. The chicken is stored in the
same baskets which it comes in and stays there till its turn for marinating. Marination is done in a
separate room in the same cold storage facility where the chicken is first washed and mixed with
the herbs and spices it needs. The mixture is fed into a machine known as‘Tumbler’
which marinates it. After this is done the chicken is re packed into labeled clear
Supply Chain Management plastic bags with stickers on them showing the description of the
item inside it and the expiry for it. These bags are then put into a separate cold storage room,
again in an organized form.

Sauces
Inventory for Sauces are stored for around 25 to 30 days depending on the forecasted sales
and the expiry dates for each.

Spices and Herbs

Inventory for these are stored according to forecasted sales and the three months
lead time given by the procurement department.

Bread and Buns

Buns are provided directly to the branches at KFC from the factory after every 4
days.There is a weekly audit of every single inventory item at the warehouse to match it with the
numbers in the system as deviations are high due to high replenishment cycles.
ZONAL DISTRIBUTION
Distribution is done on need basis. The cities are divided into zones and the routes taken are
accordingly. Karachi is divided into 3 zones:

Zone 1:
Gulshan-e-Iqbal and Gulistan-e-Johar
Zone 2:
Clifton and Defence
Zone 3:
Bahadurabad, Tariq Road and Sindhi Muslim SocietyDaily 5 to 6 vehicles are dispatched from
the south warehouse for the interior Sindh (15 daysinventory) and Zonal distribution in Karachi
(1 week inventory for normal-storage and 2 day inventory for cold-storage goods)

Vehicles
Company:
Hyundai Shehzore
Quantity:
4-5
Company
Hino Dutro Truck
Quantity:
4-5
Gross vehicle weight
8.90 tons
Maximum capacity:
4 tons (reduced from 5 tons because of modifications

QUALITY ASSURANCE
here are multiple ways by which KFC assures the quality of its
products. Some of the ones which were disclosed to us were:
•
 Surprise visits to branches

 Planned visits to branches

 Rigorous raw material inspection

 Customer feedback
SOFTWARE

MRP/ERP
The company uses Supply Chain Management (SCM) Software to manage its inventory acrossits
whole supply chain. This software has been developed by Siddhat Haider. There is
a weekly physical count of the inventory to tally it with the figures in the software

JUST IN TIME SYSTEM

In controlling inventory and most importantly quality of the chicken,
Kentucky Fried Chicken uses a variation of Just In Time (JIT) system, by receiving chicken two
to three times a week. KFC starts to operate when a delivery truck arrives at the back door. The
truck usually contains chicken, vegetables, and other needed materials to successfully operate a
KFC restaurant. There are many steps involved in the successful unloading of a delivery truck.
Frozen foods are taken off the truck first and immediately transferred to the freezer. This
includes vegetables, deserts, and other food products. Next to be unloaded is the refrigerated
goods. This is the part of the process where the world famous chicken is unloaded. Finally, the
dry good and condiments are unloaded and stored in their appropriate Place.

The chicken is received with a kill date. The kill date represents the date the chicken was
actually butchered. This kill date is also used as a measure of the freshness for the chicken.
When taking the chicken off the truck it is placed on the “chicken-side” of the isle next to the
refrigerator to prevent warming until it can be placed inside. Once the truck is unloaded, the
refrigeration unit inside the truck must be inspected for satisfactory working order. For
inventory accuracy all pieces aboard the truck are counted and checked against the bill of lading.
Any shortages or surpluses are noted and called in to franchise headquarters. The cases in which
the chicken arrives in must be damage free. This includes the box being sealed as well as being
structurally stable. Any damages must be noted and relayed to the shipping agency. The kill
dates must be checked on each individual chicken. No chicken will be accepted if it is received
six days past the kill date. Printed with the kill date on each chicken is a label stating “Inspected
for Wholesomeness by the U.S. Department of Agriculture” which must be attached or the
chicken must be rejected. Acceptance sampling is done to ensure quality of the chicken during
each shipment. At random at least five cases are selected, based on quantity of order. The
middle bag of chicken is always used in each case for sampling purposes. To check for quality, a
thermometer is used to check the temperature of the chicken by inserting it into the thickest part
along the bone. Acceptable temperature is between twenty-eight and thirty-six degrees
Fahrenheit. If one chicken fails to meet the quality inspection then the entire lot must be
rejected. Upon rejecting a lot the market manager and or the franchise supervisor must be
notified immediately. This is necessary to arrange for an immediate shipment to be scheduled.
This is important due to the inventory control system in place to ensure quality to every
customer. Once the sample testing is complete the chicken can be placed in the refrigerator.
First In First Out (FIFO) Method is used in placing the chicken in order in the refrigerator. The
earliest kill date is located at the front of the cooler such that it is the first one to be used when
needed. This guarantees quality and freshness to each customer.
Conclusion

After analyzing KFC's operation and procedures it appears to be an effective and efficiently ran

restaurant. Customer relations are important assets to KFC, which builds repeat business and

reinforces their reputation as the leader in the chicken industry. As far as recommendations we

feel KFC needs to persevere with its already implemented procedures and continue to listen to

customer needs to ensure their success as an industry leader.

KFC facility layout

Internal and external layout of kfc outlet is attractive and charming all over the world.Ideal

colour schemes, leasant lightning outlets, comfortable sittingg arrangements, fully trained

emloyees and theirroer work division.State of the interior beautification, seedy & aroriate

cooking rocess, secial club or block for kids etc.. are the chief characteristics of the KFC layout.

Recommendations

 Even though it has defined the target market but stil need to redefine it
 KFC has to improve its R &D
 KFC has to look ahead for it’s health conscious customers
 They only focus high income leveL

REFERENCES

 KFC FAISALABAD

 http://www.kfcpakistan.com/

Kentucky Fried Chicken a.k.a. KFC, is one of the leading fast food giants in the world. It
is based in Louisville. It has been ranked third largest chain with more than 13000 outlets in
morethan 109 countries and serves approximately 12 million consumers every day. KFC is
known forits original recipe for fried chicken, which is prepared using a blend of secret 11 herbs
and spices(Buick, 1982). They are operating in an industry which is based on quick service and
delivery toits consumers. They have managed to curtail the service time by more than 50% and
improvedthe productivity of its employees. This helped them to outperform others and yield
higher profitsand sales figures (Fitzsimmons, Fitzsimmons and Bordoloi, 2014). They aim at
providingcontinued superior service whilst non-stop improvement. It is highly crucial for them to
improvethe efficiently of their entire operation so as to be able to serve customers as quickly as
possible.To achieve this, they have focused on all aspects, such as facility layout, quality
management,total costs and infrastructure to match up with the desires and need of its
consumers.

Operation Management

Operations management is the administration of business practices to create the highest level
ofefficiency possible within an organization. It is concerned with converting materials and
laborinto goods and services as efficiently as possible to maximize the profit of an
organization.Operations management teams attempt to balance costs with revenue to achieve the
highest netoperating profit possible.

Operation Management at KFC

KFC uses various tools and techniques to determine the best selection of its location, such
asfactor rating method, cost-profit-volume analysis, and transportation and simulation
models(Matai, Singh and Mittal, 2013). KFC considers lot of factors in designing their facility.

They ensure their proximity to the consumers, so that they can be easily approached. This iswhy
they have opened so many locations in each city. They understand it is important to remindthe
consumers about their presence. They always select a favorable location for its outlets, whichwill
lead to increased sales (Ojaghi et al., 2015). They make sure that all the outlets are locatedon the
main road, so that footfall rises.

Since they are operating in a saturated and a highly competitive market, they need to keep
the prices low (Potoĕnik et al., 2014). For this, they choose locations that are available at lowco
sts. All these decisions will help them to keep the price of their product low. They locate
theiroutlets where proper infrastructure is available and where there is abundance of skilled
labor(Ramachandran and Prasad, 2014). This can reduce labor cost as they are easily available
andeasy access to stores for consumers is possible.

Most of the stores of KFC are franchised, which reduces their maintenance efforts (Wang,
2014).They simply conduct regular quality checks to ensure that all the required standards are
met.Their facility layout decisions are influence by the volume of production, fragility of the
product,nature of the service to be provided and the costs required to build the operations area
(Zhang etal., 2014). Their outlets are brightly lit, with attractive colour schemes and comfortable
seatingarrangement and a warm and welcoming staff. Their suitable and quick cooking process,
superior service makes it desirable among consumers. This effective layout helps them in
easysupervision, smooth coordination which leads to high flexibility and efficiency. This also
reduces bottlenecks and reduces materials handling costs.

Importance of Operation Management at KFC

As a fast food supply chain, KFC had their own unbroken reputation in global market because
oftheir strong operation management skills. According to the KFC management
structureOperation management is important for;

i-Maintain the nature of operation

ii-Improve overall productivity

iii-Maintain customization

iv-Increase revenue and leading to enormous profit

In Sri Lanka, KFC had operated 27 outlets island wide. To continuously maintain
customerrequirements the company have to maintain unbreakable supply chain to make fast food
likeKrushers, French Fries, Chicken buckets, Ice Cream and etc. The operation
managementtakes part to know the quantities of daily, weekly, monthly and annually
requirement ofdemand and supply. Furthermore through the Operation management system the
companygot to know the pattern of goods utilization. It was directly push the company to
planning,organizing, managing controlling and supervising of the whole business process.Ex: In
2013 as a result of bird flu fear KFC at China lost 36% sales during the month ofApril.
According to the worst condition there was no need to stock more inputs likechicken. It means,
the business plan was changed according to the condition due to theoperation management
suggestions.

Source : https://www.slideshare.net/PalashGoyal/operations-strategies-of-kfc The ratio of input

to output is termed as productivity. It gives a measure of the efficiency ofthe manager as well as
the employees. Since the discipline focuses on using the availableresources in the best possible
way to achieve end goals, so it improves the overall productivity.

Accurate operation management can save waste of materials and increase productivity
inefficient manner. Through the operation management system, a company can work according
toa work plan and there will be no sudden requirements popping-up to attend. Also, 5s and
Kaizenconcepts eliminate unnecessary things and store fresh and nutritious items such as fresh
chicken,eggs, potatoes and etc. Furthermore the concept of TQM (Total Quality Management)
leads tolong term success through customer satisfaction and makes it easy to succeed.The
growing demand for customization in quick-service can be attributed to consumer insistence on a
me society and operators‘ intense battle for food-share. Today, menu customizationremains a
critical business strategy for competing in the fast-food industry.

According to the purpose of maintain customization, KFC was introduced wide range
of products at competitive prices and increased CSR (Cooperate Social Responsibility) values. T
omaintain wide range of products the company needs strong supply chain, good practice in
HRM(Human Resource Management), strong stores and high frequent capacity in
productionmechanism.An organization that provides end-to-end services to the consumer
accurately completes many adifferent services on one single day by operational management. As
a result of the operationmanagement, the uninterrupted supplying of necessary quantities of
required raw materials isensured. If, in the end, this operation fails, not only customized requests
but also delivery of day-to-day services would also be completely stalled.As a result of
operational management, waste is reduced. The revenue increases because therequirements are
fulfilled timely and even though income has been rising, the profit has beenrising in comparison
to cost-cutting. Furthermore, profits increase as a result of operationalmanagement driven to
exploit the existing resources in possible way. As a consequent to highefficiency and the fast-
paced fast service is flying to buy the consumer again. All this leads tohigher incomes and lower
costs.

The operations management as the centralized governing mechanism of a company, transform

itsrole in business operation to various operations such as inventory system, supply
chain,employee relations, warehouse management and etc.Inventory is one of the most difficult
systems in any business. It can determine what you have,when you have it, and whether your
funds and investments are sitting on shelves collecting dust,or working for you. Operations
management oversees inventory systems, which determine howeffectively your inventory is
managed.

The operation management being the centralized governing body of the company, it
controlsevery management layer and every step of the production process.Ex: Operation
Management at KFC determines the quantity of raw materials required for
the production process, the storage of those materials, the release, the service and the food

production.

It also designates tasks to departments, supervisors and subordinates. Operations

managementhandles things such as personnel management and training, and performance
evaluations oraudits. Staying abreast with efficient documentation procedures and
consequential personnelissues can streamline daily tasks.

Inventory is one of the most difficult systems in any business. It can determine what you
have,when you have it, and whether your funds and investments are sitting on shelves
collecting dust,or working for you. Operations management oversees inventory systems, which
determine howeffectively your inventory is managed. Your inventory control dictates how your
inventoryflows. It commands and directs whether or not an employee has products on hand or
if customersare forced to wait on back-ordered items.

Ex: Operation management defines the quantity of raw materials released; the quantity of
rawmaterial needed per day and the quantity of the raw materials have to purchase and
etc.Supply chain management is the entire process, from start to finish, detailing how a
customergets the
company‘s product or services. This includes purchasing and procurement, storage,

transportation and delivery.

Therefore operation management has to decide, coordinate andmanage these steps otherwise
the process of production will shattered.Ex: The operation management will not decide the
quantities, deliveries, storing method,necessity and ordering at right time the whole process of
business will collapse. As an example ifcustomer made an order for 2 chicken buckets with 2
krushers, but stored chicken is not enoughfor 2 chicken buckets, then the order will be
cancelled. The sense of the example is the operationmanagement in the company is not
capable for doing right decisions at right time. Thus, theoperation management should have
properly coordinated with supply chain management in thiscontext.

Evaluation of how operations management has an impact to the bottom line of

theorganization and its positive implications to increase revenue.

The bottom line refers to a company's net earnings, net profit, net income or earnings per
share (EPS).The reference to "bottom" describes the relative location of the net income figure
on a company's incomestatement. Bottom line also refers to any actions that may
increase/decrease net earnings or a company'soverall profit. A company that is growing its net
earnings or reducing its costs is said to be "improving
its bottom line". Most companies aim to improve their bottom lines through two simultaneous
methods:growing revenues (i.e., generate top-line growth) and increasing efficiency (or cutting
costs).

Economic bottom line is only partly about the financial profitability of the business. The
companyeconomic capital must be measured in terms of how much of an impact the business
has on its economicenvironment. The business that strengthens the economy it is part of is one
that will help sustain theeconomy into the future.

It is not uncommon to hear some variation of the phrase, "we are managing tothe bottom line."
It is a misnomer. A company may set bottom line profit targets, but circumstances in
themarketplace (and the firm's strategy and operations) ultimately combine to create the
revenues and coststhat determine the bottom line.

Ex: Every quarter, KFC invests money in food production and consumer financing to cater for
food. Atthe end of the scheduled financial period, all of these expenses are calculated with all
applicable taxesand other expenses. Then company arrive the bottom line value. It shout be
profit or lose.Therefore lots of companies are striving to deduct unnecessary payments and
they try to control financialusage more than allocated budget. The budget of the company is
made by the accounts department. Buteach department has to exhibit department expenses.
The main duty of the operation management is toarrange every single step of the business
operation in durable and correct way.Ex: When the stocks are going to end? When we have to
purchase new stocks? How much we allocatedfor stock purchase? What are the quantities we
are going to purchase? What are the methods we stockour inputs? The operation management
has to answer above mentioned type of questions. If theoperation management was arranged
every step in the business, then never will occur an overdueduring the business process. That
less overdue, proper management decisions and control overexpenditure is pointing bottom
line to the sustainability.The profitable business secret is its strong bottom line. In fact, it has to
be implemented new experienceand technology to make strong bottom line of the business.

Ex: KFC had online order placement system and through the system customer can enjoy
delicious KFCfood at his home.The operation strategies are depending on the existing market
competition. As a result of high marketcompetition in the fast food sector the operation system
at KFC must tighter and efficient as possible.Ex: Burger King, Subway, Pizza Hut, Mac Donalds,
Dominos are market competition. To compete withthem KFC have to make efficient methods of
operations.To make profit operation strategy has to concern about several points such as,

How much we spread our facilities?

How we formulate the supply chain?

Nature of the work force

Quality assurance

Stores and storage

The operation mechanism has to invent durable solution for each and every question which
was occurringduring the business process. Operation management has to add value to the
customer. It has to be madecustomer satisfied and happy. Customers are seeking for the
satisfaction more than they were spent to getthe product to the service. Hence the operation
mechanism has to be dexterous to add value to thecustomers as same as his spent money. To
achieve the target company has to provide its customers withadditional at an increase in cost
that is perceived to be less than those benefits.Ex: KFC Vs Mac Donalds restaurantsThere are
key points to maintain,

Cost

Quality
Delivery

Flexibility

Service

Through the above mentioned key points company can uplift its productivity and the
incensement of the productivity produce more competitive cost structure for the organization
and enable the organization tooffer more competitive prices to its customers.

Technological productivity

Through the technological productivity company can be gain efficiency, accuracy and the
quality ofmaintenance.

Employee productivity

Under the employee productivity the company can be produce more production in the
same time frame.

Managerial productivity

Improvement of managerial productivity support improves quality and the quantity of the
product,communication, employee relations and decision making.Furthermore, to earn more
profits the company has to enter to the new markets.Ex: number of Current KFC outlets in
Sri-Lanka – 30

To earn more profits the company has to expand outlets network over the country and the
company has toenhance and redevelop the existing products, menu and service due to the
global trends and competitorsmovements.

The service segment is growing to be an important element in every business, attracting more

importance towards having a strong operations management mechanism”.

Service industry is an industry that creates services rather than tangible objects. Goods-
producingindustries are agriculture, mining, manufacturing, and construction; each of them
creates some kind oftangible object. Economists divide all economic activity into two broad
categories, goods and services.Service industries include everything else: banking,
communications, wholesale and retail trade,
all professional services such as engineering, computer software development, and medicine, n
onprofiteconomic activity, all consumer services, and all government services, including
defense andadministration of justice. A services-dominated economy is characteristic of
developed countries. In less-developed countries most people are employed in primary
activities such as agriculture and mining.

Basically, service sector consist 05 components.

Hotels and Restaurants

Transport, storage & communication

Finance, insurance , real estate & business service

Public administration & defense

Social and Personal service

During the development process of the service industry itself in last decade, a general trend
featuringincreasing diversification and sophistication of services. The mechanism functioning
behind that trend isinnovation, which can be identified as two types, with one being technical
innovation and the othermanagement innovation. This identification also points to two ways of
modernizing traditional services,that is, technical improvement and management
improvement. The former implies that a service providersuch as a service firm can introduce
advanced technologies like information technology and hightechnology so as to transform its
obsolete hardware structure. The latter means that a service provider canreform its old
operational and organizational modes by importing modern management expertise
andspecialized talents. These two types of transformation and improvement can be
implemented separately orsimultaneously for a specific service provider.

Example: Mac Donald restaurant introduced special break down food menu during the
Ramasan season.It is a management innovation. Online order placement system of KFC is a
technological innovation.

This comment was published by a customer of KFC on a website which is guided by travelers
and it isunavoidable that this kind of insight can hurt the existing market in bad way.

There was unsatisfied offood and did not properly study the production process by the outlet
management. But the whole

operation management system couldn‘t avoid its responsibility regarding to this controversy.
 These kindsof terrible mistakes are spoiling other excellent services which is providing by the KFC
and it also offer anegative feedback of the service of the company. Henceforth, the company
have to more consider aboutthe service same as foods and beverages. Otherwise as a result of
current customer trends negativeimpacts can ruin a business so easily. So not only the final
product but also the services provided by thecompany also very important to gathered
customers.The upper-level manager who directs this transformation process is called an
operations manager. The jobof operations management (OM), then, consists of all the activities
involved in transforming a productidea into a finished product, as well as those involved in
planning and controlling the systems
that produce goods and services. In other words, operations managers manage the process that
transformsinputs into outputs.

Source:

https://2012books.lardbucket.org/books/an-introduction-to-business-v2.0/s15-operations-
management-in-manuf.html

All manufacturers set out to perform the same basic function: to transform resources into
finished goods.

To perform this function in today‘s b

usiness environment, manufacturers must continually strive toimprove operational efficiency.

They must fine-tune their production processes to focus on quality, tohold down the costs of
materials and labor, and to eliminate all costs that add no value to the
finished product. Making the decisions involved in the effort to attain these goals is the job of t
he operations
manager. That person‘s responsibilities can be grouped as follows:

Production planning:

During production planning, managers determine how goods will be produced, where
production will take place, and how manufacturing facilities will be laid out.

Production control:

Once the production process is under way, managers must continuallyschedule and monitor
the activities that make up that process. They must solicit and respond tofeedback and make
adjustments where needed. At this stage, they also oversee the purchasing ofraw materials and
the handling of inventories.

Quality control:

Finally, the operations manager is directly involved in efforts to ensure thatgoods are produced
according to specifications and that quality standards are maintained