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OPSMGT 255 Operation Management

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OPSMGT 255 Operation Management

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Course Code: OPSMGT 255
University: The University Of Auckland

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Country: New Zealand

Undertake an audit of the following organisation: Foodstuffs Ltd, New Zealand.1. Describe the company. Make sure you provide a brief overview of the company layout including parent/umbrella companies and subsidiaries, its corporate strategy, and national as well as international operations (if any).
2. Foodstuffs owns, among other, the retail franchises New World and Pak’nSave. What are the qualifiers and order winners for customers who shop at New World versus the ones shopping at Pak’nSave? Justify your choices.
3. Foodstuffs relies on “economies of scale” for its business model. Describe what these economies of scale are in the context of Foodstuffs. Give TWO sensible suggestions for how Foodstuffs could achieve greater economies of scale.
4. One of the challenges Foodstuffs faces is the rise of meal subscription services such as My Food Bag. Discuss TWO ways involving operations at Foodstuffs you would recommend for responding to this challenge (particularly in light of your answers above)?
5. From a strategic operations perspective, describe TWO challenges that this organisation is potentially faced with (other than competition with meal subscription services).

Foodstuffs are the leading grocery organization in New Zealand. The company is operating in the New Zealand. The company is also managing the extensive transportation and the warehousing operations in the New Zealand.  The company is dealing in more than 600 supermarkets, grocery stores and convenience stores in New Zealand. The company is dealing under several banner groups like New World, PAKnSAVE, Four Square, on the Spot, Liquorland and Raeward Fresh (Foodstuffs, 2018).
Operation Management:
Operation management is the process of adopting the Business practices that creates maximum level of productivity within the organization. The operation management process is essential for conversion of labor and raw material into services and finished goods. The teams of the Operation Management are trained enough to balance the costs incurred with the revenues to attain the maximum operating Profit (CLEVERISM, 2018).
Elements of Operations Management  
Capacity Planning: Capacity planning in the Operations Management is the determination of the productive resource in order to match their availability with the demand. Capacity Decisions directly influence the production system of the resource productivity and the customer service. The Foodstuffs in New Zealand are managing the capacity of the products. The operating manager of the company focuses on the technology that increases the productivity and increases the flexibility of the organization to respond to the customers’ needs in the shortest possible time (SCI, 2017)
Operation and Strategy:  Operations and the proper strategy is essential for the business organization. Employees in the organization play an important role in the implementation of the strategy. Foodstuffs are running more than 600 retail outlets in New Zealand. They are operating in many banner groups.
Quality and Product Design: Organization should focus on improving the quality of their services and products. The company should focus on bringing more innovative and creative ideas in the production of the product, as it is necessary for the organization to remain competitive in the market. In the company Foodstuffs, the company focuses on improving the design and the quality standards of their product. They focus on the freshness of the fruits and vegetables they deal in their grocery sector (Study.com, 2018).
Collaborative Supply Chain: This element is the crucial function of the Operation management. It is related to the inventory management in the company. This element understands the global trends, available resources and the customer demand for the product in the organization. This function help in finding the distributors that supply goods at reasonable prices. Foodstuffs in New Zealand serve through an interrelated transport and warehouse operation that ensures the availability of its product to the stores operated by the company (Foodstuffs, 2018).
Process Design: The effective and the efficient process for the production of product is essential for attainment of the organization objectives. Process design includes decisions regarding the choice of equipment, machines, technology, automation, mechanization and handling of material. The process design of the Foodstuffs includes thermal, hygiene and Structural design, Coordination with the operators and the vendors, health safety to the employees working in the organization, fire protection and the wastewater treatment (Apollo Projects, 2018).
Inventory and Resource Planning: Inventory Planning deals with the determination of the raw materials, parts, components, tool, spares, finished goods and the supplies to identify the availability of these items with the use of minimum capital. The organization like Foodstuffs has to focus on the proper planning of the inventory management, as its mismanagement leads to the dissatisfaction among the consumer and affects the supply chain in the organization (Chron, 2018).
Demand Management and Forecasting: This is one of the essential steps in the Operating Management. Accurate Forecasting is essential for identifying the inventory level and the customer needs in the organization. The Forecasting helps in managing the demands of the customers, which in-turn helps the company in the maximization of profits. The Company Foodstuffs is focusing on the customer’s demand in the New Zealand and maintain the levels of inventory according to the demand of their customers (MBA knowledge base, 2018).
Lean Thinking: Lean thinking in the operation Management provides new ways of thinking to the management to organize the activities that is beneficial for the society and the individual. In The Company Foodstuff, the organization is focusing on the Lean thinking. The organization is working with the perspective of providing training to every employee in the company for improving the employees’ competence and confidence.
Achieved balanced results: Operation Management in the Organization helps in achieving the balanced results for the company. This process maintains the inventory levels, effective supply chain and manages the demands of the customers for attaining the level of profits for the company. The employees in the Company Foodstuffs is maintaining the inventory levels, managing the demand and the supply chain process of the company, which helps the employees in achieving the balanced results for the organization. 
The elements or functions of operations management are interrelated with each other. Collaboration of these functions of operations management led to the better functioning of the organization.
Capacity Management and Demand forecasting: The capacity management is essential for forecasting the demand of the inventory in the organization. The Foodstuffs is managing the capacity according to the demand of its customers.
Inventory planning and Supply chain: Inventory planning ensures the transparency of the supply chain so that the company’s investment in the inventory is efficiently and effectively managed. The Foodstuffs maintains their levels of inventory and the supply chain.
Operations & Strategy and achieving the balanced results: The operations and the strategy followed by the Foodstuffs are targeted towards the attainment of the balanced results for the company.
Quality and the process design: The Foodstuffs organization is focusing on the efficient process design for improving the quality of their products.
Lean thinking & Demand management: Lean Thinking in the organization is important to achieve the competitive edge in the market and increasing the demand of the company’s product.
The operations and the Strategy of the Foodstuffs company is focusing on capacity planning, inventory and resource planning, process design, lean thinking in the organization in maintaining the supply chain, quality standards, fulfilling demands of the customers and achieving the balanced results for the organization.  
This can be concluded that the operation Management is the essential process in the organization in converting the raw material into the finished goods. It is essential for the inventory management, supply change management, Capacity Management, Quality and product design, Lean Thinking, Operations and strategy, Demand management and Forecasting , inventory and Resource planning, process design and achieving balanced results in the organization. In this report, the discussion is on the operation management of the Company Foodstuff.
Apollo projects (2018). Food Processing Design and Construction. Retrieved from: https://www.apolloprojects.co.nz/food-processing-construction/.
Chron (2018). Key Concepts and Topics in Grocery Store Management. Retrieved from: https://smallbusiness.chron.com/key-concepts-topics-grocery-store-management-35219.html.
CLEVERISM (2016). Operations Management: Definition, Principles, Activities, trends. Retrieved from: https://www.cleverism.com/operations-management-definition-principles-activities-trends/.
Foodstuffs (2018). Our Brands. Retrieved from: https://www.foodstuffs.co.nz/.
Foodstuffs (2018). Our operations. Retrieved from: https://www.foodstuffs.co.nz/about-foodstuffs/our-operations/.
MBA knowledge base (2018). Operations Management and It’s Objectives. Retrieved from: https://www.mbaknol.com/operations-management/operations-management-and-its-objectives/.
SCI (2017). Inventory Control. Retrieved from: https://www.sci.ca/the-hub/healthcare-logistics/logistics-inventory-control/.
Study.com (2018). Retail operations Management. Retrieved from: https://study.com/directory/category/Business/Sales_and_Merchandising/Retail_Operations_Management.html.

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