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10 Operation Management Decisions Applied to Kfc Outlet Sukkur

Essay by   •  May 22, 2019  •  Course Note  •  5,062 Words (21 Pages)  •  667 Views

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Table of Content:

Introduction 2

Supply chain management: 2

Analysis: 3

Quality Management: 4

Analysis: 6

Process strategy: 6

Questions: 6

Locations Strategy: 7

Questions 7

Layout Strategy: 8

Human Resources Strategy: 8

Questions 8

Inventory management: Questions 9

Short-term scheduling: 10

Maintenance and Reliability: 10

Recommendations: 10

Introduction

Kentucky Fried Chicken (KFC) widely known as the world famous fast food restaurant that based in Louisville, Kentucky. KFC was founded by Colonel Harland Sanders in 1952. But KFC rudiment should backward to 1930. At that time, Colonel Sanders run a restaurant at his hometown Kentucky. He study hard on fried chicken technologies, finally invented the 11 spices and unique cooking technologies secret recipe successfully. The secret recipe was continued to use until now. Fried chicken is KFC most popular products. Traditional method of making fried chicken was very time consuming, it takes around 30 minutes. The problem has been solved while Colonel found a unique method of making fried chicken by using pressure cooker. The fried chicken which was fried under pressure is the most delicious chicken he tasted and the KFC still maintained using pressure cooker until now. In 1950s, the 66 years old Colonel started sells the formula and the method to the interested restaurants around. In 1952, the first authorized KFC restaurants established. Surprisingly, within five years, the chain stores have developed to 400 in the United States and Canada. Nowadays, the image of Colonel Sanders with a business suit, white-haired and goatee has become the best symbol of international KFC brand. KFC has been the world biggest Fried chicken fast-food chain enterprise which has own more than 15,000 restaurants, over more than 100 countries.

In 1997 KFC was introduced in Pakistan when first branch was inaugurated in Gulshan e Iqbal Karachi then it became symbol of fast food in Pakistan extending its branches to 81 throughout the country and serving more than 2 million customers per month, KFC has been constantly introducing new products and opening new restaurants for its customers. Presently KFC is branched out in eighteen major cities of Pakistan (Karachi, Lahore, Gujranwala, and Sukkur & Muree)

Supply chain management:

How your supply chain is designed, how much percent raw material you make by yourself and how much you purchase, what are advantages of it?

KFC purchase almost all of its raw material from outside vendors like their major raw material which is chicken is purchased from the local vendors like big bird and Menu and for beverages they have contract with Pepsi and their potential supplier in this category is Sukkur beverages company, They also buy cheese from the local suppliers . KFC focuses on its core strength which is their special and secret recipe of making fried chicken and the other stuff is purchased and outsourced.

When it comes to low cost, quick delivery and long term relationships the supplier preferences vary some firms go for many suppliers and others go for few, what is KFC’s preferences in this regard? Does KFC have few long lasting and trusted suppliers or it has many?

When it comes to the number of suppliers KFC has very few and long lasting suppliers like their contract with Sukkur beverages and big bird is since years, KFC’s main objective is quick delivery that’s why they have contracts with local companies and suppliers which makes them efficient to meet the demands of customers on time. When it comes to cost if a damaged chicken is offered to KFC at 100 rupees KFC never prefers it because KFC is very keen about its customers and values customers at highest level so they prefers raw material with highest quality, According to manager KFC Sukkur t considers their customers as their mother so customer satisfaction is key for them. This philosophy makes KFC very choosy with selecting suppliers that’s why they have very few but long lasting suppliers, they might have gone for local poultry forms for chicken to save cost but this is against their motives.

In this age of increasing specialization ,low communication cost and fast transportation companies are making less and buying more which makes them rely on supply chain and they are more exposed to risk so what risks is KFC facing from its supply chain and how they mitigate that risk?

The major risk which KFC considers which impacts themselves as well as their suppliers is political instability especially when rates of electricity and oil are increased their supplier charges them higher which forces them to set higher prices and as a result their middle class customers which is their prominent customer is snatched from them and their sales are badly affected. Otherwise they have very good and efficient suppliers which live up to their expectations, during Eid days or others festivals the demand go high and they ran short of supplies , this happens rare and problem emerge from their forecasting process when they couldn’t forecast properly , to counter that issue KFC has some emergency suppliers which are based locally , in such situations those local suppliers respond quickly and their issue is resolved so their seems very much flexibility in supply chain .In all this process their motive remain to balance the good relationship with all the suppliers that’s why they provide proper rationale to them.

As KFC mostly deals with perishable goods and raw materials which cannot be kept for longer time so how it has designed its JIT system to avoid this problem and what kind of material does it stock through warehousing?

According to Manager KFC Sukkur they can stock chicken for 7 days, Chees for a month, mashed potatoes for 7 to 10 days and Frozen chicken from company has an expiry of 6 moths ,Beverages for longer time only breads and fresh vegetables were such goods which were perishable so they use to order it on daily

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