The document presents an overview of operations management (OM) strategies focusing on increasing customer numbers in a restaurant during weekdays through various solutions, including finance, marketing, and operational strategies. It outlines key components of OM such as feasibility studies, strategic planning, facility planning, and various philosophies like just-in-time production and total quality management. Additionally, it discusses competitive market structures and factors contributing to competitive advantages.

1. Presented by:
Reza Zanjirani Farahani
Kingston Business School
Kingston University
26 September 2018
OPERATIONS
MANAGEMENT (OM)

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LEARNING OUTCOMES
• Understanding concept of OM

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Operations Management

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An example and solutions: How can we increase the number of
customers in our restaurant during weekdays (NOT weekend)?
• A finance solution: Offering promotion when it is not rush
hour.
• A marketing solution: Investing on TV commercials.
• An OM/ SCM solution:
 Change the location, redesign the layout, provide new
services like home delivery, use fresh materials etc.
 Set up partnership with some brand new suppliers.
Operations Management

5. * I focus on “Zero-Design” strategy rather than “Improvement”
1. Feasibility Study
 Forecasting & Market Analysis (roughly)
 Location Estimation (roughly)
 Capacity and Technology Selection (roughly)
 Economic and Financial Analyses (feasible: YES or NO?)
2. Strategic Planning
3. Facility Planning
 Location Analysis (precisely)
 Layout Design
 Facilities System Design
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Operations Management

6. 4. Production Planning
 Mid-Term Forecasting
Mater Planning
 Material Requirement Planning (MRP I)
 JIT
 …
5. Transport & Distribution Planning
6. Inventory Planning
8. Preventive Maintenance Planning
9. Quality Planning
• …
• PHILOSOPHIES
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Operations Management

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PHILOSOPHIES
• Standardisation
• Line Production
• Group Technology
• Just-In-Time (JIT)
• Total Preventive Maintenance (TPM)
• Total Quality Management (TQM)
• Leanness
• Agility
• Leagile (Lean + Agile)
• Total Employments Involvement (TEI)
• Supply Chain Management (helps us compete)
What is different between these philosophies and OM decisions?
Operations Management

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A relation between two or among more parties to capture more
market shares/ gain more customers
Competitive Advantages …. Order winner (not qualifiers)
• Low price (e.g. ASDA)
• High quality (e.g. Waitrose)
• Time (on-time delivery, JIT delivery, etc.) (lateness/ tardiness)
• Quick Response (response time ----> 0)
• Leanness (waste ----> 0)
• Agility (flexibility)
• Leagile (Lean + Agile)
•…
WHAT IS COMPETITION?

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Pure competition
• Small bars and restaurants
• Variety stores, convenience stores
(Londis, Sainsbury's Local, etc.)
• Nail salons, barbers
• Small grocery stores
• Doughnut shops
• Professional services (dentist,
doctor, architects)
Monopolistic Competition
• Google
• Amazon
Monopoly
• NHS
• National Rail
• Heathrow airport
Oligopoly
• Banking industry (HSBC,
Barclays, Lloyds, etc.)
• Petrol stations (Shell, BP, etc.)
• Insurance companies
• Big four retailers (Asda, Tesco,
Sainsbury’s and Morrisons)
When the world started to see competition almost everywhere?
TYPES OF COMPETITION [2]

10. [1] William J. Stevenson, Operations Management (chapter
1), 8th edition, Mc Graw Hill, 2008.
[2] http://www.witiger.com/marketing/typesofcompetition.htm
[3] Hartmut Stadtler and Christoph Kilger (Eds.) Supply
Chain Management and Advanced Planning, Springer, Berlin,
Heidelberg, 2008.
[4] Reza Zanjirani Farahani and Nasrin Asgari, Combination
of MCDM and covering techniques in a hierarchical model for
facility location: A case study, European Journal of
Operational Research 176 (2007) 1839–1858
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REFERENCES

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Thanks for your attention …
Questions?