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Or you could just read out the rest of the material to figure out the concepts required to attempt the assignment. We have also mentioned ideas that would help you create a stellar Starbucks Operations Management strategy.
In an organisation, there are always areas that could be improved. But the challenge is to figure out what could change to directly upscale an organisations growth. The answer is operational Excellence. It could simply be described as the philosophy that fosters problem-solving and leadership qualities in the individuals working for the organisation.
Students are often unsure of how to approach this discipline of operational excellence. Understanding the nuances of the subject is a daunting task as the topic could be too ambiguous or broad. However, you could consider operational intelligence as a mindset and not as a set of actions that one performs. Every organisation operates on some similar principles. But there are 4 V’s that make every organisation differ from one another. These four V’s of operations management are Volume, Variation, Visibility and Variety. Including these in your Starbucks operation Management strategy would surely get you stellar grades.
Volume: Volume is a parameter that reflects how much of a specific product would be necessary to fulfil the demand. The operations that are low in size tend to be less repetitive as the staff performs more than one roles. Whereas, the high volume establishes repeatable processes that eventually become standardised or eve automated. A higher amount could quickly satisfy an upsurge in demand because the methods are specific and automatic, whereas the low volume products can not do that.
Variety: Every organisation has a portfolio of its products. Type stands for the diversity in the products or goods sold by the company. The wide range translates to more flexibility to produce the services that fit the requirements of a broader customer base.
Variation: Variation is a parameter that reflects the fluctuations in demand over some time. More number of factors makes it difficult to analyse or predict change.
Visibility: This reflects how much of the company’s overall process are customers being able to experience? The service industries usually have a high level of transparency, whereas the industries that manufacture are a bit too opaque.
These are the factors that affect the operational performance of an organisation. This tries to improve and optimise its strategies to meet the targets set by the management. There are five main operational objectives, namely, speed, flexibility, costs, quality and dependability.
Speed: The aim of this parameter is to measure the growth rate of a company. This also estimates how fast can a company deliver their products and generate sales to support its growth. This will take into account the time consumed to manufacture or process the outcomes of the company. Additionally, This parameter may also reflect the time it takes to innovate a new product for the company.
Quality: Quality is more than just ensuring that the product sticks to a typical set of specifications. It also takes into account the reliability, durability or the ease of service of the product. Additionally, there would be factors like product performance of its intended functions and the perceived value of the product by the customers.
Variations in cost: This parameter looks at how much does the production vary according to the various external and dynamic factors. Including the volume, or the change in the product range. Generally, the product that features a more excellent range, they would tend to sport low volumes.
Flexibility in Operations: Flexible operations are that kind of service that can configure the manufacturing or product line to deal with a wide variety of requirements. Ideally, an organisation should be able to produce different types of product and various quality as well as should be able to adapt the operations to suit varying market conditions and schedules.
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