The paper "Operations Management of Morrisons" is an outstanding example of a business case study. According to Andrew, (1999, p. 45), operations management is the term that refers to the operation’ s manager activities, decisions, and responsibilities in managing the manufacture and delivery of goods and services. Operations management can as well be seen as part of the function’ s responsibility that involves the production of the internal services and products within the organization as opposed to the sternly technical decisions that they take within their functions. The essay will evaluate how the cost of the operation in Morrisons is determined by changing levels of performance objectives.
They are five operations performance objectives that include speed, flexibility, cost, quality, and dependability. In this essay, we shall evaluate how the cost of operations is determined or affected by speed, dependability, flexibility, and quality. Company Analysis Operations management plays a great role in achieving the major objectives of performance In Morrisons retails in Aberdeen, Scotland. Morrisons is a high volume mass service food retail operation, which has medium process variety, and it specializes in the manufacturing and retailing of food.
It is the 4th biggest supermarket chain in the United Kingdom with over 400 stores and 300 staff. The cost of operation at Morrisons is affected by Quality, speed, dependability, and flexibility. Cost is the capability to produce at a lesser cost. All these factors play a great role in determining the cost of operations in Morrisons retail outlets (Stefan, 2003, p. 105). Quality Quality is the capability to produce in accordance with the specification and without error in order to satisfy the customers. Quality in Morrisons refers to the quality of services and products offered to customers.
Poor quality in Morrisons usually results in dissatisfaction of customers who move to other places. Quality is an important performance objective that can be seen on the display and cleanliness of the fresh food of the entire store. Quality levels offered at Morrisons is varied intentionally or unintentionally in order to balance the cost of operations. Food that is near its sell-by date or food that is almost becoming damaged is sold at a lower cost. This is towards ensuring it is bought as fast as possible in order to avoid it being spoilt.
Quality at Morrisons varies with the level of customer service provided. The service quality of the part-time student is lower with that of full-time adult staff being higher as illustrated by Hayes & Scholes, (2003, p. 125). At Morrisons, the cost of operations increases with a decrease in quality. In order to reduce the total operating cost in Morrisons, there is strict reduce of wastage at all costs. Therefore, management at Morrisons ensures it gives out quality products and services.
This is towards ensuring the quick purchase of products by customers. This is due to the higher attraction of customers because of the excellent quality of products. The higher the number of consumers, the higher the buying of products offered. Eventually, this leads to reduced cost of operations. Poor quality of products and services has been seen to increase significantly the costs of operations.
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