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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