OPERATIONS MANAGEMENT

Operations Management: Kudler Fine Foods

Operations Management: Kudler Fine Foods

Introduction

Operations management is the systematic direction and control of the processes that transform inputs into finished goods and services. The operations function comprises a significant percentage of the employees and physical assets in most organizations. Operations managers are concerned with each step in providing a service or product. They determine what equipment, labor, tools, facilities, materials, energy, and information should go into an operating system and how these inputs can best be obtained and used to satisfy the requirements of the market place. Managers are also responsible for critical activities such as quality management and control, capacity planning, materials management, purchasing, and scheduling(Slack Chambers Johnston 2004 pp.90-101).

The importance of operations management has increased dramatically in recent years. Significant foreign competition, shorter product and service life-cycles, better-educated and quality-conscious consumers, and the capabilities of new technology have placed increasing pressures on the operations function to improve productivity while providing a broader array of high-quality products and services. With the globalization of markets, firms are recognizing that the operations function can be used to strengthen their position in the market place. Managers in operations management play a strategic and tactical role in satisfying customer needs and making their firms strong international competitors(Dunn 2005 pp.97-101).

Kudler Fine Food Kudler Fine Foods is a gourmet food shop which was started by Kathy Kudler. The primary reason for starting her business was to eliminate the running all over town for specialty food items. “Kathy's vision was to create one store that would stock a wide selection of the freshest ingredients as well as all of the tools a gourmet cook could ever want” (rEsource, 2008). This report will provide a synopsis of the management of Kudler Fine Foods. The report will outline the management structure and address the areas that are of concern or need improvements. Technology and the use of the Internet will be discussed and how they are used by Kudler.

Operations management activities

Operations management depends upon on two main sets of activities - the operational 'making it happen' role and the strategic role of sustaining the requirements of markets. Many of the issues, methods, and techniques that apply to the core operations function also have meaning for each unit, section, group, or individual within the organization(Porter 1985 pp.90 ). For example, a marketing function can be viewed as an operations system with inputs of market information, staff, and computers, and outputs of marketing plans, advertising campaigns, and sales force organizations. Thus, all organizational functions can be viewed as operations themselves because they are there to provide goods or (more usually) services to the other parts of the organization. Each function will have its “technical” knowledge. For example, in marketing this is the expertise in designing and shaping marketing plans, in finance it is the technical knowledge of financial reporting. Each will also have an operations role of producing plans, policies, and reports and service(Slack, Chambers, Johnston, 2004, pp.21).

The following table sets out some typical pressures ...