MGT345 Individual Assignment PDF

Preview

Summary

MGT345 Individual Assignment...

Description

MGT345: OPERATIONS MANAGEMENT INDIVIDUAL ASSIGNMENT PREPARED BY: NUR DALILA BINTI RAMLI (2017333593) PREPARED FOR: SIR MOHD RADZI MOHD KHIR GROUP: KBA1195A SUBMISSION DATE: 25th JUNE 2020

ACKNOWLEDGEMENT Bismillahirrahmanirrahim, I am very grateful to Allah S.W.T for giving me the strength and patience in completing my individual assignment in subject MGT345 successfully. Without Allah’s help and guidance through the entire journey, I may not be able to complete the task within the time given. First and foremost, I would like to express my sincere gratitude to Sir Mohd Radzi Mohd Khir, my lecturer for this semester in Operations Management (MGT345) subject for his guidance and encouragement throughout several discussions in carrying out this assignment. Secondly, I also want to express my deep appreciation and indebtedness to my parents for their endless support, kind and understanding spirit during the completion of the assignment.

TABLE OF CONTENT NO.

CONTENT

PAGES

1

Company Background

1

2

1.0 Product Design

2-4

3

2.0 Process Strategy

5-7

4

3.0 Facility Layout

8

5

4.0 Facility Location

6

References

9-10 11

COMPANY BACKGROUND

For this assignment, I choose fast food company which are SUBWAY. SUBWAY is the world's largest submarine sandwich chain with 41,512 locations in more than 100 countries. The history of Subway started in 1965 when Fred DeLuca borrowed $1,000 from a friend named Peter Buck in order to fund the opening of a sandwich shop in Bridgeport, Connecticut called Pete’s Super Submarines. A year later, the two formed a holding company to oversee the expansion of their restaurant named Doctor’s Associates – a name derived from DeLuca’s desire to make enough off the restaurant to fund his medical school tuition. By 1968, the two men changed the name of their restaurant chain to Subway. The first store was opened in Bridgeport, Connecticut, USA. Nowadays, the head office of this multinational firm is situated in Milford, Connecticut, USA. The logo of SUBWAY is a reflection of the colourful array of fresh vegetables and other ingredients. SUBWAY’s objective is to offer a wide range of tasty, quick and healthy meals. In addition, the peak hour during the weekdays was around 1:30 pm- 3:00pm, 7:00PM – 10:00PM and during the weekends is 3:00 pm.

1

1.0 PRODUCT DESIGN For product design, SUBWAY is in the growth stage for product life cycle. The growth stage is the stage in which the product’s sales start climbing quickly. So, when the sales volume rise, it attracts more competitors that enter this market. SUBWAY find a way to maintain their stage by introduce new products that can attract the customers. They should keep the promotion spending at the same or an even higher level. By spending a lot of money on product improvements promotion and distribution, the firm can reach a dominant position. For SUBWAY’s products, they offer to the customer various kinds of fresh sandwiches, subs, wrap and soft drinks. Subway's core product is the submarine sandwich and they also sell wraps, salad, paninis, and baked goods such as cookies, doughnuts, and muffins. The pictures below are a few menus in SUBWAY: BREAKFAST

Stripe Egg

Cheese Egg

Chicken Slice Egg

Tuna Egg

2

SANDWICH

SALADS

3

SIDES, DRINKS AND EXTRA

SUBWAY conduct Research and Development (R&D) to ensure that their product design meet market expectations. SUBWAY use applied research to gain the knowledge and understand the aspects of phenomena with the intention of making profit and commercial objectives. Organizations that have a good R&D efforts, facilities and resource will produce a new product from time to time that meet customer’s expectation. For example, SUBWAY introduce a new menu which is Ultimate Cheesy Garlic Bread. This menu was a huge hit to the customers because the flavour having a rich garlic flavour with melted mozzarella cheese. It will increase a company’s technical capability in product design and enables a company to fulfil the customer’s demands in terms of better products.

SUBWAY spread awareness about their brand and products through their slogan “Eat Fresh”. Most of their promotions are directed to adults between 18-35, thus their advertisements are broadcasted majorly during primetime, sports and on cable networks. Like every other brand, SUBWAY's advertisements are targeted so that the customers move up the brand from awareness set to consideration set when it comes to eating in fast food chains.

4

2.0 PROCESS STRATEGY In process strategy, SUBWAY use repetitive focus strategy. It is the strategy where production facilities are organized as assembly lines. Less skilled workers are required to perform this job. SUBWAY combines the modules of sandwich, cold drinks and cookies to produce a variety of outputs. The process strategy can help managers improves the performance of their business activities. Basically, in one restaurant there are five workers that manage and treat the customers. Ordering a sandwich from SUBWAY can be more complicated than the average person would think. There are certain steps that need to be looked at to get that perfect sub-sandwiches.

STEP

PROCESS

TIME TAKEN

Step 1

Make decisions regarding which menu

•

choices that customer want to eat before approach the counter. SUBWAY provides a few menus:

•

15 seconds

✓ Footlong ✓ 6-inch ✓ Salad ✓ Wrap

Step 2

Choose the type of bread that customer

•

want to have when they eat the sandwich. SUBWAY have 6 different variants of

•

breads: ✓ Italian ✓ Hearty Italian ✓ Honey oat ✓ Wrap ✓ Wheat ✓ Parmesan Oregano

5

20 seconds

Step 3

Customer can choose to put an extra

•

topping to make their sandwich more delicious. Basically, the topping that SUBWAY

•

use is:

25 seconds

✓ Mild cheddar ✓ Spicy peperoni ✓ Crispy bacon If customer choose cheese, the workers

•

will melt the cheese in the oven.

Step 4

Customer also have an option to make

•

their sandwich more customized with the veggies like: ✓ Lettuce ✓ Tomatoes

80 seconds

✓ Cucumber ✓ Pickles ✓ Pepper ✓ Olives ✓ Jalapenos ✓ Red onions Step 5

After that, customer can choose their

•

favourite sauce and dressing such as: ✓ Sweet onion ✓ Honey mustard ✓ Mayonnaise ✓ Olive oil blend ✓ Chili ✓ Ketchup ✓ BBQ ✓ Ranch ✓ Thousand Island

6

30 seconds

Step 6

•

The staff wrap the sandwich.

•

Customer also can choose whether they want favourite combination of subs, side and drinks.

30 seconds

For example:

•

✓ Lipton ice ✓ Cookies ✓ Cold drinks Step 7

Final billing at counter.

•

15 seconds

In addition, the bottleneck can be seen during toasting the bread in the oven. There would be multiple orders during peak hours, and only one oven was noticed to cater to the demand. The oven can toast a maximum of 2 sandwiches at a time and thus the orders are kept in waiting. The bottleneck at one section will affect the other sections. The vegetable section will be idle until the bread is toasted.

The flow chart to order the sandwich in SUBWAY Restaurants

7

3.0 FACILITY LAYOUT The facility layout is an important aspect in business. The correct layout that positions the products and areas at the right place has a higher probability to generate more sales. SUBWAY use types of product layout. It is the production system, where the workstations or equipment located along the line of production. So, the steps taken to pass the inputs from one station to another station are quickly and efficient. The diagram below shows the example of product layout in SUBWAY Restaurant:

Layout decisions is important for SUBWAY because it is efficient use of labour. Labour time is precious and good facility layout can reduce the movement of labour to perform their tasks. Without proper arrangements, the labour will move a lot and resulting underutilization of labour. For example, the counter layout in the SUBWAY is easy for workers to do their tasks. The layout counter for making sandwich is comfortable and did not make the workers move to many places. So, the process to make the sandwich for customers will take a short time only. Therefore, the strategy also improves the employees’ morale and safer working conditions. In SUBWAY, the workers are comfortable and happy to perform their work and task. It is because the facility layout is properly arranged in one line and the condition of facility is safe. So, it will minimize any accident when they do their job. Lastly, it improved the customer and vendor interaction. Communication and interaction between customers and vendor in SUBWAY are important because vendor can know the demand and the requirements of customers about the product. Interaction between both parties can be done easily and effectively in the restaurant for serving when the facility layout was properly arranged.

8

4.0 FACILITY LOCATION SUBWAY mainly operates through franchises and is one of the fastest growing franchises. SUBWAY has 41,512 franchises across 100 countries. They are located in off-beat premium places and it has turned out to be a boon for the brand. They are located on airports, malls, amusement parks, business centres, hospitals, military bases and many more places. These SUBWAY outlets are located in premium places where the customers are more calorie conscious and thus would be willing to pay the higher price. It is important for SUBWAY to make location decision because shifts in demographics and customer demand. The demand from customer will change based on the location. The consumers in big city will demand fast food more than consumers in the rural area. So, most of the SUBWAY open their restaurant in the city because the customer easy to find a healthy food. The picture below is one of the SUBWAY’s location in the city:

Next, location de cision is important for SUBWAY because it has an impact on the overall risk and profit. When the location is not suitable for a business, the sale generated decreased and will leads to loss. While if the location is suitable for a business and there are other facilities nearby to the business, the company will generate more sales. SUBWAY choose the location that nearby with other shop because when customer go to shopping, they will see the SUBWAY retaurant and attract to buy the sandwich. Besides that, they don't have go to another place to eat other fast food.

9

In addition, the factor that SUBWAY consider in making location decision is proximity to market or customers. SUBWAY is easy access and efficient to build. It requires less square-footage and can easily open a restaurant nearly anywhere. A business that closer to customer is most preferred because the proximity helps to ensure the customer’s needs are incorporated into products being develop and built.

10

REFERENCES

Khir, R. M. (2016). Operation Managements for UiTM. Selangor Darul Ehsan: Oxford Fajar Sdn. Bhd. Subway Malaysia. (n.d.). Retrieved from https://www.subway.com/en-MY Wikipedia. (n.d.). Retrieved from Subway Restaurant Web Site: https://en.wikipedia.org/wiki/Subway_(restaurant)

11...