Identify the key factors affecting the design of products
Following are the factor mostly affecting the way an organization operates their services those are the following:
The smaller the organization the lesser chance of a formal structure of that organization will be. Instead of following in small organization the individuals may simply perform tasks the way they want and whatever is required to them. There may be rules set by the firm just to provide guideline with the help of which members of organization can make decisions.
As an organization develops, however, it becomes more difficult to manage the tasks without more formal structure of assigning tasks, or with delegating some of authorities to the lower hierarchy, and hence large firms produce specialized tasks and every work is done through proper guidelines and procedures.
Organization life cycle
Organizations tend to proceed and get progress through different stages which are called as a life cycle. Most firms go through the following stages:
Birth: In this stage, a firm is just beginning their business operations. At this stage the firms hardly have a formal structure. We can not find much delegation of authority in the beginning stage of the firm.
Youth: This is the phase in which firms try to grow the business. The focus of the firm in this stage is on becoming larger firm. The owner of the firm diverts its attention from satisfying his own wishes to satisfying wishes of the customers. During this phase there is a need for the firm to design more formal structure for operating their operations and some delegation of authority come into effect.
Midlife: This is where the organization has achieved a fair level of success. A larger organization in this stage, have a more formal structure. The levels start increasing in their chain of command and the organization may find it to difficult to manage everything with control.
Maturity: In this phase the organization reaches to maturity stage where their lack innovations and they are not usually interested in expanding their business. Their emphasis in this stage is more on increasing their profit and sustainability.
Organizations in this phase are slowly moving toward decline and may feel the need to make necessary changes to revitalize. As firms tend to get bigger, the organizations experience more structural changes
Strategy refers to a situation in which the way firm settle itself in the market place keeping in view their services or products. An organization may decide to be always the first to introduce the newest and best products in the market (differentiation of products strategy), or it will produce already established products in the market more cost effectively (cost-leadership strategy). Any of these strategies requires a structure that must fit the strategy.
The environment is the place in which the firm is operating, and the factors such economic conditions, social and cultural situation, law and order situation, technological position and natural environment condition influences the design of organizations
Organization understand the demands of their customers very well in a more stable environment, and then firms try to satisfy those demands accordingly. That is the reason organization remains in the market for a long period of time. The customers' demands keep changing in the opposite of stable environment and hence firms experience difficulty in satisfying them.
In conclusion mechanistic organizational structure can be more beneficial for those operating in a more stable environment and hence this system increases the efficiency level of the organization which ultimately will improve their performance in the longer run.
Advancement in technology is the cause of change in the design of organizations because it helps organization in achieving higher efficiency level and help them in reducing their long term cost of production. The following are the form of latest technological production techniques:
Batch production is the process in which instead of manufacturing items individually, things are produced in batches. The manufacturing process takes place for each item at the same and batch of products or items are not shifted to another stage individually instead all batches are moved to the other stage of production when the each batch of items is completed.
Mass production is the process of manufacturing large amount of products in less time by utilizing time saving assembly. It helps a manufacturer to increase their worker per hour production and it also reduces the manufacturer labor costs of the final product. And then firms will be able to sell their products at lesser cost to attract more customers.
Continuous Process Production
In this system the manufacturers produce products by feeding the required raw materials continuously in a latest technological system. Such systems are operated by less labors, examples can be automated oil refineries and chemical factories.
Advantages of a Good service or product designs:
Firms can attract more customers by making more attracting products with good design and good services.
Firms can better communicate with their customers through their good product or services designs.
A good design makes a firm’s services or products more user friendly.
It reduces the production costs of an organization and it enables them to gain better profit margin.
As it reduces the costs of production therefore it helps an organization to gain competitive advantage over their rivals because they will be able to sell their services and products at lower price.
Its objects is that Tasks should achieve all required outputs and be carried out at minimum cost in order to gain competitive advantage.
P8: Explain the operational layout of the business/ department under consideration. Discuss the salient features of the layout?Operations Layout:
The basic layout of an operation is usually determined by the choice of process organization. “An efficient layout is one which minimizes total distance travelled by materials, customers or even staff. The frequency of journey should also be considered"
Features of the Layout:
It enables higher utilization of space, materials and employees.
It improves the flow of materials, information, and employees.
It increase employees’ motivation levels and provide harmless working conditions.
It improves customers’ interaction with the organization.
It brings flexibility in the operations of the organization.
Operations Layout of Pizza Hutt:
The layout of Pizza Hutt is not that good in our point of view because an efficient layout must minimize total distance covered by the materials and customers. The ware house of Pizza Hutt from where they get the raw materials of Pizzas is in Lahore which is far away from Peshawar and it takes time to reach Peshawar branch.
The flow of information with their customers is very slow in a sense that when a customer call Pizza Hutt toll free number for ordering Pizza, an operator sitting in Karachi takes their order who than later inform the Peshawar branch to deliver the pizza to a specific location. Usually it takes 50 mints to deliver Pizzas which is bad. The parking space outside the building is limited often than not customers face difficulties in finding space for their cars.
The pollution coming out of their kitchen to the environment is limited but the pollution coming of their generators are not. Peshawar is still facing load shedding (Lack of electricity) as a result they get electricity for the dining hall and most importantly for running their machinery from huge generators which cause both noise and pollution.
The Pizza Hutt Peshawar branch is located far away from the most important place (Hayatabad) where most their potential customers are living and delivering Pizza to them also takes much time.
M3: How does the operations layout of the firm influence performance of given organization. Mention its positive and negative influence?
Operations Layout is all to do with the performance of any organization in this case Pizza Hutt. A good layout will reduce their average total cost and can improve their well being among customers and vice versa. Every organization needs to set up their operations in such a way which can bring efficiency in their activities and help them in increasing their revenue and profits.
Positive influences on Pizza Hutt:
If Pizza Hutt reconsiders their Operations Layout and bring the required changes in it, it can have the following positive influences on their performance:
A good operations layout will reduce the time usually taken by their raw material to reach Peshawar branch in this way they will be able for satisfy customers demands on time and they will not face material shortage due strikes, road blockage in other cities and hence their customers will be satisfied.
If they improve their information system they will be able to receive customers order directly and they will be able to deliver Pizzas to their customers quickly than before this can bring efficiency in their activities and can improve their well being among customers.
If they improve their parking space more customers will be able to park their cars at one time and hence more customers will visit Pizza Hutt which ultimately will help them to get more revenue and profits.
If they are some how able to control the pollution and noise than it will be considered as more environment friendly organization and it will help them in improving their well being and it will also help than to attract more customers and hence more revenue.
All these points discussed above is the layout of Pizza Hutt and if they able to improve their layout as discussed above it will have positive influences on their performance.
Negative influences on Pizza Hutt:
If they continue their current Operations layout than it can have the following negative influences on their performance:
The raw materials will take longer than required to reach Peshawar branch and it add more to their costs because the transport cost is expensive due to the recent raise in petrol and diesel prices.
It can have negative influence on the delivery of Pizza to their customers because there is no direct operator line from Peshawar to the customers therefore it takes longer than required in delivering pizzas as a result customers can switch to nearby Pizza outlets to them like Arabian Chicks, Chief burger.
Limited car parking space is the biggest constraint in attracting more customers therefore customers can have Pizzas from Chief Burger which has large parking area, ultimately it affects their performances.
Lack of interaction between their customers and their staff can have adversely affects on the performance of Pizza Hutt because staff will be demotivated and customers will feel they are not important to Pizza Hutt.
A bad layout will add more to the costs of production and affects the performance of Pizza Hutt as a whole.
D3: Propose operation layout for the given organization and discuss how it will be better for the organization.
Before suggesting an efficient operation lay out , we would like to suggest certain points required to make an efficient Lay out only then Pizza Hutt Peshawar will able to implement our suggested Lay out.
Requirements for making a Good Layout:
They need to understand the need of capacity and space requirements
They need to select appropriate equipments for handling materials.
They need to take proper decisions regarding environment and its improvement.
They need to identify and understand the requirements for effective flow of informations.
They need to identify the cost of moving between the many different work areas.
Suggested Lay Out For Pizza Hutt:
Pizza Hutt Peshawar needs to get a ware house on rent in Peshawar and especially in a place near to the Peshawar branch. In this way they will be able to get raw materials in less time and they can store the remaining material back in the ware house. And they will be able to save much transport cost than before and they can use that money in improving their environment.
They need to introduce an operator system in Peshawar as well who can receive the orders from the people of Peshawar and who have sufficient knowledge of the locations of Peshawar. In this way Pizza Hutt can receive orders quickly and then they will be able to deliver Pizzas in less time, it also improve their efficiency.
They need to increase their parking space by contracting with army stadium officials regarding allowing their customers to park their cars there in this way more customers will come and their cars will be more safer.
They need to control the pollution and noise coming out of their generator by making a separate covered place for their generator.
They need to open new outlet in either university road where there biggest competitor chief burger is situated or in Hayat abad where there potential customers are living. This will help them in competing with their rivals and will also help them target their customers by either delivering them Pizzas in less time or by being easily accessible for those people.
They need to improve their front desk for communication with their customers and handling their kitchen operations and for easy communication with their supporting staff (waiters, manager) to provide better services and environment for their customers.
P9: Discuss the concept of job design, empowerment, and work measurement?
Work arrangement intended to reduce or overcome job unhappiness and lack of interest of employee resulting from boring and repetitive tasks. In job design, firms try to maximize productivity levels by providing non financial awards to their labor force such as increasing the challenge and responsibility of some employees work. Other techniques used in Job design are Job enlargement, job enrichment, job rotation which can be defined as:
“Job design technique in which the number of tasks attached with a job is increased (and provided an appropriate training) to add greater diversity to activities, thus reducing repetitiveness".
In this organizations increase the number of tasks executed by their employees as well as they increase their responsibilities in order to make their work more challenging and interesting.
“Job Rotation means employees are moved between two or more jobs in a designed way. The objective is to make the employees to face different experiences to increase job satisfaction."
Empowerment is a concept which Involves delegating some authority to the process operators.
In empowerment every individual team member must throw in to the business.
In empowerment the lower most layers of management become unnecessary.
Empowerment give chance of greater responsiveness – lower employees do not have to acquire management consent for making some decision themselves..
It helps in Continuous improvement of the organization as employees will feel motivated and they will work all together for the success of the business.
It helps organization to reduce the number of employee absenteeism.
It gives greater motivation and flexibility to the employees.
“Work Measurement is a method which shows how much time a job or part of the job needs to take to complete their tasks". There are different techniques use to measure individual works.
Method study is based on the principle that improvement should always stem from existing practice. The proposed working methods are usually feasible. To ensure feasibility a five stage methodology is used:
Select: The area of activity to be studied is selected.
Record: The activity is recorded in detail to keep a sample of task performance.
Examine: the record is carefully analyzed, usually through some form of chart. The objective is to seek out areas of improvement. Improved procedures are developed out of analysis. These are then tested.
Install: Revised procedures are installed. Manuals are written, staff is trained , new plant is obtained and installed and workplace layout is revised.
Maintain: Problems can arise from changes. A presence is required to ensure that problems are dealt with promptly.