Operation and Material Management
Operation and material management are practices in business that ensure that maximum efficiency is achieved during operation (Gölzer & Fritzsche, 2017). This paper analyses how operation and material management is useful in the production of a good with high quality, at a lower cost. It also defines the Speedy service system, its examples, and its impact on production and manufacturing in the fast-food industry.
Operations Management
Operation management deals in the conversion of materials and the workforce into valuable services or goods in an efficient way (Gölzer & Fritzsche, 2017). The efficient process ensures that there is enough profit made by the organization. Operations management consists of a team, constantly attempting to balance costs incurred in the production, with the revenue, to maximize the profits received.
Material Management
Material management involves the control, plan, and coordination of all actions, related to the inventory and its requirements (Gölzer & Fritzsche, 2017). It entails a detailed recording of the costs incurred by a system from the start of production to the final stage of sales.
The role of Operations and Material Management in cost management
The Operations and Material management ensure that there is the production of high-quality products but at low costs by
(a)Regulating the finances
The management is responsible for the funding of all the operations in the industry. It ensures that the funds are used in the right manner and that the goods generated are satisfactory to the consumers.
(b) Making strategies
The teams in the management constantly evaluate the market and the products of the competitors. The teams authorize maximization of resources during certain productions, to give the company an edge over the competitors.
(c) Designing of Products
The operations management team draws the design of a product that can be appealing to the customers.
(d) Forecasting
The operations and material management, reduce the costs of production, through constant prediction of the future. A potential increase in sales would prompt the company to work on increasing the revenue used in production. A potential loss of customers would be beneficial in the reduction of products.
(e) Establishment of Non-Production stores.
The non-production stores are built to store, materials such as books, office supplies, and repair materials. The stores are useful as the work is done continually despite the breakage of production machines. The stores are a backup for the organization, in case there is an emergency.
The Speed System and example
The Speedee system is a service system based on the concept of speed, quality, a higher volume of goods, and lower prices in production. It majorly applies the principles of the production line in the manufacture of fast foods. An example of the Speedee system is McDonald’s Corporation’s fast-food supply system. The system was adopted in the 1940s to date (Spurlock & Super-Size Me, 2012). The system is essential in the provision of services to its many customers over a short time. The system has enabled over 50 million consumers to get quality food daily. The organization has gained popularity through the system, which incorporates operations and material management.
Impacts of the System on Production in the Fast-Food Industry
The system has revolutionized the fast-food industry, especially at the manufacturing level. The old methods that are being used by many fast-food industries require that a chef is highly trained. Whenever the Speedee system is applied in a corporation, there is less demand for a highly trained cook, as many unskilled laborers are needed to play specific roles during the preparation of food (Burgess, 2019). Production of fast food has been revolutionized by the system because of its demand for a specialized kitchenette. The design of the kitchen in several restaurants has several types of equipment, used for various purposes during the production of food. The kitchen where the Speedee system is used has several unique features like:
The design of the kitchen is to ensure that the production of a large variety of food is done much faster at the same time, with less labor.
The idea originated from a single fast-food restaurant, before being adopted by several producers of fast food. The common feature that all the production lines have is the relatively low costs of the food.
Conclusion
Operation and material management are practices that are essential in ensuring that the company maximizes the production of quality products over a short period of time while using less revenue. It ensures this through, control of management processes such as forecasting, assessment of finances, and keeping records of purchases, and supply. The Speedee system first adopted by MacDonald’s Corporation is a system that has adopted the principles of fast and less costly production. The system has changed the fast-food industry globally. The system has enabled the manufacturing and production lines to use less labor in the manufacture of food. Some designs have been adopted by the industries to ensure efficiency and quality.
References
Burgess, V. (2019). The Illumination of Globalization in the Food Service Industry. J. Entrep. Bus. Resil, 3, 49-56. http://www.fimek.edu.rs/downloads/casopisi/jebr/arhiva/JEBR-Number-3.pdf#page=51
Gölzer, P., & Fritzsche. (2017). Data-driven operations management: organizational implications of the digital transformation in industrial practice. Production Planning & Control, 28(16), 1332-1343. https://www.tandfonline.com/doi/abs/10.1080/09537287.2017.1375148
Spurlock, M. Super Size Me (2012): Unmasking McDonald’s. Focus on the USA, 63. https://ddd.uab.cat/pub/llibres/2020/225886/SMartin_ed_Focus_on_the_USA_in_documentary_film.pdf#page=71
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Paper on Optimizing Fast-Food Production: Operations, Material Management, and the Impact of the Speedee System. (2023, Dec 28). Retrieved from https://proessays.net/essays/paper-on-optimizing-fast-food-production-operations-material-management-and-the-impact-of-the-speedee-system
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