Developing Good Business Sense
University of Phoenix Online
For this assignment I have chosen to observe the Operations and Material Management processes of three different fast-food restaurants. It is often joked that if a person cannot perform the job that they are currently at, they can always get a job at McDonalds, Wendy’s, etc. I believe this comment has a basis in the fact that due to the OMM processes of these types of restaurants, just about anybody can perform the lower level functions associated with providing a quickly prepared, good tasting burger.
As one looks at the entry level through management positions at these companies, you will see a lot of ...view middle of the document...
This type of organization is made possible by the Standard Operating Procedures that each company has. No matter which position you are in, there is a set standard for performing each task. This allows the company to reduce time training as well as control the cost of raw materials used to produce their menu items. Having a SOP allows the company to develop formulas to plan for the demand of each product, the raw materials needed to meet the demand, and the time frame in which those materials need to be used. Without those SOPs, these companies would see an increase in the amount of waste associated with running the business, as well as an overall decrease in the quality of product due to inconsistent preparation practices.
The cost of raw materials is just one of the main kinds of OMM costs that companies have. The other costs are the plant costs, labor, inventory (raw material inventory, in process inventory and completed product inventory), and distribution costs. These costs often force a company to re-evaluate their OMM procedures to ensure that they are running at peak performance and minimal cost. The cost of raw materials if often out of the control of...