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BUMGT 6935
OPERATIONS MANAGEMENT
O-GALO: Product and Cost
Improvement
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O-GALO: Product and Cost
Improvement
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Overview What is operation management?
What is ogalo?
Ogalo company profile?
Number of outlets in Sydney and Australia?
Ogalo operation management?
Ogalo competitors?
Ogalo goods and services, products?
Ogalo manufacturing, distribution andservices?
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What isOperation Management ? Operationsmanagement is about how an
organizationmanagesitsvariousoperations beingperformed.
The activity ofmanaging theseresourceswhicharedevoted to theproduction anddelivery ofproducts andservices are calledoperationsmanagement.(Slacket el, 2007).
Theresources that create goods andservices arecalledoperations.
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History ofO-Galo
Ogalois a family owed businessstarted by
Portuguesefamily afterthediscovery ofan African
birdseye chilli called piri-piri.
They founded that this chilliwhen added tofood
gives a different flavourto thefood. They took the
idea andstartedselling different style chicken and
burgers. They namedit Ogalo asOgaloin Portuguesemean
rooster.
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NumberofoutletsinSydney
They have around 20 outletsin aroundSydney in
comparison toOporto andNandoswhich are also
selling Portuguesestyle chicken and burgers.
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O-Galo competitors?
Asmentioned thedifferent competitorsofO-galo
areNandos,Oporto, McDonaldswhich are also
selling Portuguesestyle chicken and burgers.
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Areas of Problems in Operations of
Management of Ogalo
Lackofawareness
Speed Unskilledemployees
Competition
High Prices
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Lack of awareness
Themajorproblemfaced by Ogalois the
customerawarenessofthe company.
They dont knowwhat Ogalois andwhat theyproduce andwhats theiroperation.
Forinstanceonly 60 out of100peoples know
about Ogalowhich is the big problemfaced by
Ogalofora moment which iseffecting theirbusiness a lot.
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Speed Anotherproblemfaced by Ogaloisspeed.
CustomerserviceofOgaloisvery slow. There
is a significant waiting timeforthe customerafterplacing theorder. They have towait foratleast 10-15 minutes afterplacing theirorderwhich isourpersonalexperiencewith Ogalo.
Slowspeedinoperationsmeansslow customerservicewhich infact creates a badimpressionamong customersresulting inlossofcustomersto the company.
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Unskilled employees
Thisis alsooneoftheprimary area inwhich
the company lackswhich has affectedits
operations a lot. Theemployeesworking doesnot know how
much to cookwhich shows thelackof
skilfulness.
Theemployees are hiredfrom thedifferent
backgroundwhich has created a problem.
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Competition In this competitiveworldeach andevery new business has
toface a severe competitionfromits competitors tosurviveitself.
Asit is a newfoodsupply chainin themarket thereforeithas toface a severe competitionfromits competitorslikeKFC, Mc Donalds,Oporto,Nandosetc.
These companies have already made a goodimagein theeyesofits customers andOgalo has yet toestablish itselfas
a new businessentity. Thisis the big problemfaced byOgalowhich hindersits growth.
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High Prices Anotherbig problemfaced by Ogaloisprices.Ogalo, the
new brandnameis charging thesameorhigherprice thanits competitors.
Aswe know that Oporto,Nandos, KFCetc havemade agoodreputationin theeyesofcustomertherefore customersdont feel badifthey have topay morefortheirmeals.
But ifOgalois charging thesameprice, thenpeopleprefersgoing tootherfood chainsuppliersratherthen going with
Ogalo asit is a new brand andpeopledont know anythingabout its tasteso they prefergoing with theirold tasteratherthen trying thenew tastewith sameprice.
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Steps involved in the problem
solving technique
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Cont.
Theproblemsolving processis a continuous cyclebasedon a structured approach toimprovement.
Alldepartmentsofa company areinvolvedin this
process,which is animportant management tool. Themereintroductionoftheprocessdoesnt mean
victory. You have toliveit and toexemplify itthrough yourownworklife.
Describing aproblemindetail andselecting suitableevaluationindices areofparticularimportancein thisprocess.
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Areas of improvement Strategy
Quality inspection
Minimizewastage
Benchmarking
Introducenewproducts
Training
Customersatisfaction Forecasting
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Strategy
Aswe know, that theOgaloisfacing theproblemoflackofawareness,somainstrategy ofthecompany is toincrease the awareness among the
people. By opening thestoreineach andevery food court
like KFC andOporto at every Westfieldshoppingmall,peoplewill get familiarwith the brandname
Ogalo and also knowwhat theirfoodproducts are. With thispeoplewill know that thereisonemore
optionoffast food.
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Quality inspection
Through theintenseprocessofchoosing and
manufacturing rawmaterials,Ogalos customers
can be assuredofa qualityproduct.
Providing good quality toevery customershould
be thepolicy ofOgalo to continuewith this
competitivemarket.
Ogaloshouldintroduceonedifferent departmentnamed Quality and Assurance.
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Minimize wastage
Completionoftheorderon timeis themainway
toreducewastage. By serving orderofthe
customersinminimum timeis the best way to
retain customers and avoid customerrefusalor
cancellationoforders.
Aswe all know that aftersome timefood get stale
andlooseits taste. Aspermy friendpersonalexperienceinOgalo he had towait foroneorder
for10 minutes.
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Benchmarking
Theprocess by which a company comparesitsown
performance,products, andserviceswith thoseofother
organizations that arerecognized as the best in a
particularcategory. Theproduct orservice that is
determined to be theindustry standardis known as
benchmarking.
Ogaloshoulddiscusswith otherorganizationsoffood
industry different operationsofmanagement and know
howothercompanies aremanaging theiroperationsin
efficient way.
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I
ntroduce new products
Ogalo canprovidenewitemsin themenuwhich are
preferable by not only Australian people but also by other
communitypeople.So customers can get variety ofoptions
tosatisfy thedesireofvariety.
Ogaloshould try toestablish flexibility with the changing
tastes andpreferencein themarket.Ogaloshouldsegment
themarkets and attract customers according theirpreferred
tastes.
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T
raining Ogaloshouldrecruit good andefficient staffand give them
propertraining inordertofulfillorganization goals. Theyshouldmakesure that allemployeesproperlyperform theirassignedduties.
New crew-membersshould go through aninductionprocessconsisting ofseveralvideos,followed by severaldaysofdirect one-on-one training by a trainer.
Afteremployeesfeel comfortablewith theoperations, they
may bepromoted toCrew Trainers. Every employeeshouldbeflexibleinvariousdutieslikemaking burger, cookingchicken, cleaning and customersservicesetc.
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Customer satisfaction Customersatisfactionis themainmottoofevery
business.SoOgalosvisionary goalshould be tocontinually improve theirorganization.
Customers can be happy andsatisfied with goodquality food and goodservice. Forthis, Managerhas tocheckevery aspect oftherestaurant including lobbyarea where customerseat, therestroom, the grill areaandduring theday,managerhas to talkwith a
customerregarding the quality ofthefood andotherthings.So he can get thefeedback and takenecessaryactionsstraightway.
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Forecasting
Ogaloshouldreceiveinformationfrom customers,
employees and theindustry that effects theshort,
medium andlong termdecisionmaking and
forecasting and allinformationshould beused tolearnmore about themarket.
Forecasting can bevitalforOgalossignificant
management decisionmaking. Forecastsprovide the
basisforbudgetaryplanning, cost control,planningnewproducts,processselection, and capacityplanning
andfacility layout.
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R
ecommendation Promotions & Advertising
Standard Quality
Price Reduction
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Promotions & Advertising Foodindustry totally dependsuponpromotions and
advertising.In this competitiveera,where consumersarerational, having a lot ofchoice.
Promotions & Advertising can be theonly way fromwhich Ogalo can attract customers.
Secondly,Ogaloshouldservefree coupons to attractthe customers,from that customerswill at least trytheirfood. These techniqueswill be helpfulforOgalotoincrease theirpopularity in this competitivemarket.
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Standard
Quality
The quality mattersin the business.
The quality is thedistinguishing criteria that make thedifference.
TheO-Galoshould catertheneedsofthe customers byproviding standard quality forfood andservices.
It is the quality that sets thefoundationforthebusiness.
The quality givenin comparison to theotherfast foodoutletsshould beofhigh quality which wouldlead tothe growth in termsofsales.
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PriceR
edu
ction
AsOgalos awarenessislow and thereisperfect
competitioninmarket.
Ogaloshoulddecrease theirprices to get noticedby customers.
A lowpriceis alwaysnoticed by customers and
this can helpOgalo.
To competein this competitivefoodindustryOgaloshouldreviewitspricingpolicy.
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Concl
usion
Although there arenot many Ogalooutlets aroundin
Sydney compare toOporto Portuguese chicken and
Nandoswhich dominates themarket at themoment,
yet it offers a fantastic product,with a Portugueseflavour, but it lacksinstandards and customerservice
in comparison toits competitors.
By improving itsstandardforcustomersatisfaction,
givingpromotions toitsproducts andpricereductions,Ogalo can bevery successfulinfuture.
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R
eferences: Dale B. and Bunney H.(1999) Total Quality
management (1st edition).Oxford, England:Blackwell PublishersLtd.Slack.N.Chambers,S.
and Johnston, R.(2007) Operations Management(5th edition) Harlow, England: Financial TimesPrenticeHall
http://management.about.com/cs/generalmanagement/a/keyperfindic.htm
http://www.ogalo.com.au www.promitheas.com/glossary.php
https://www.woodmen.org/inside.cfm
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C
ont http://en.wikipedia.org/wiki/Operations_
management
http://www.raimundbarwe.de/en/gfx/processopt.gif
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THANK YOU DEARSIR ANDSTUDENTS
IF YOUHAVE ANY QUESTION PLEASE
ASK