Production planning using the transportation method
The location of a business is important and it is significant for retail and entertainment business to be located according to the demographic settings that are suitable for business. The demographic factors required for successful business operations consist of various components. These components include the number of inhabitants of the area, local and regional demographics including the economic factors and city. The choice of three cities Queens town, Rotoura, and Auckland are available. The decision of desired place will base on the market survey results. The high population areas will be selected. It is likely to procure rented or leased place in the targeted areas. However three alternatives are required to select the place for opening the business. The market research should be designed to provide the required information for best possible places. The qualitative and quantitative market research are two major dimensions, and both should be considered to reach an actual market research result. Low sales volume will require immediate action in terms of a marketing plan, advertising budget increase and preparation of a marketing mix on the basis of desired results. The financial plan should include a contingency amounts. The primary focus should be on banks. Additionally a financial plan should be prepared for seeking investment from venture capitalist sources.
The transportation means are available in the Auckland CBD and the great number of population is also helpful for the business to operate successfully. The business sis also focused to cater the airline passengers and increased number of people using various means of transportation. The increased number of inhabitants is a favorable factor. The target market for the Cafe in Auckland CBD is also one of the major factors in favor of the decision. The political and legal factors also play a significant role in defining a successful project. However the conditions of these factors are favorable in the terms of the business environment settings. The real estate market also has a potential for finding the suitable place for opening. The business is also suitable as the comparable market factors are inclined towards Cafe business. The demand for quality food, ambiance, and cozy environment in restaurants and cafes is considerably in favor of the business operations.
HoQ approach for Fast Food Items:
The concepts of House of Quality (HoQ) are notable in defining the success of a business in terms of its customer satisfaction. The businesses are focused to provide a confined approach in designing and development of the products and business elements. The business caters its customer voice and listens to the key elements of success through careful implementation of the strategies and techniques. The business settings are designed through conceptual mapping of charts and key figures. These charts and figures facilitate the business to incorporate customer requirements and design a useful system that is essentially a blue print of the product design and development (Jiao, & Chen, 2006).
The customer requirements for fast food are varied according to the market and demographic variables. The customers require a quick and tasty product I n the fast food service restaurants and food chains. The food production process should incorporate the requirements of the customer s according to the standards of the local and international industry. The customers also require a freshly prepared product that is served within short span of time. It is essential to cater the customer requirements according to the specified standards of food. The food in fast food industry should also cater the requirements of take away clients. It is also noted that the delivery service is also an essential element of the fast food and product design.
The design characteristics of the fast food products should include the primary features of the products according to the needs of customers. The needs identified earlier are regarded as the major elements for a successful product design. The products of fast food should be handy in design and should also be served in a standard food serving. The packaging of the product should be designed to cater dine in and take away customers. The quantity of food is also one of the factors in determining the level of cooking time required to prepare an efficient fast food product.
There are various specific components of the products that are required to be followed through a steady production line. The taste elements can be controlled through developing specific standard recipe cards. The business should also ensure that uniformity in taste is maintained throughout the process. It is also essential to follow a standard set of elements in order to replicate it throughout branches and other business outlets. The presentation of food is also one of the notable elements in fast food production.
The production process should follow a steady stream of elements defined earlier. The products prepared in fast food chains should adhere to standard principles to avoid any inconsistency. Consistency is the key element in production design of fast food products. The consistency in taste, size, and presentation of fast food can facilitate the users in terms of their confidence and appreciation of the business. The production lines of fast food business should also include the primary requirements of speedy preparation and serving of the orders.
The quality plan of the products is developed on the basis of four major elements. These elements are regarded as the taste, preparation, presentation, and serving time. These four critical elements should be catered throughout the production process of fast food items. The production of fast food products according to the standards of local market cannot create a competitive advantage. The business should prepare a quality plan to fulfill the standard recipes and confirm the production elements at the same time. The presentation of the fast food products is also a major element of the quality plan. The costs and risks are considered during product design and production planning.
Just In Time (JIT):
Just in Time approach was introduced in Japan by Toyota. It has also impacted the operations management techniques and practices already followed through the business world. The technique is widely accepted standard for reducing the cost of raw materials inventory. The quality management principles are also influenced with the useful integration of the technique. The economy in Japan was under great threat during World War II and oil embargo was also imposed on the country. During the war times, business executives of the country developed the technique to facilitate business operations (Monden, 2012).
Explanation of meanings:
Just in Time (JIT) is a pull technique that follows the production orders within a manufacturing unit to initiate the production of goods. The materials are ordered after receipt of order for production and similarly the least amount of inventory is maintained for production. It allows the manufacturing line to create a requirement for raw materials that are required and suppliers are also intimated through a sophisticated system. JIT approach is also known for its effects on controlling quality of the products, cost of inventory, and waste reduction during manufacturing. Toyota is well-known for following this technique and due to the approach it survived through the turbulent times of war and recession in Japanese economy.
Describe the effects of JIT:
The effects of following JIT can be observed in terms of reduction in maintaining cost of inventory and wastage of finished products. The approach follows a mechanism to inspect the components of the products during manufacturing. It also enables the business to eliminating waste of raw materials and time. The timely inspection of manufactured goods at each stage produces efficient results in terms of minimizing the usage of raw materials and labor on the defected products after initial identification of malfunctioning. The energy and other resources including the labor and other related cost elements are also minimized. However the expertise required manufacturing the products according to the desired standards are also increased. The JIT approach does not allow a large number of mistakes at the time of manufacturing. Hence the requirement of focused approach and expertise for performance at the first instance are also increased.
Describe the effects on suppliers:
Business using JIT technique often maintains minimal levels of inventory for manufacturing and regular supply orders are produced according to the production schedules. The suppliers are also required to maintain a timely delivery systems as well as a minimum level of stocks are also required to be maintained throughout the agreement periods. The suppliers cannot afford to delay the supply of raw materials as the business is likely to start its production and manufacturing schedule after the receipt raw materials. The suppliers are also bound to provide desired raw materials and it is established through a written agreement with…