Name: Abdullah (L1S1BBAM0027)
Subject: Operation Management Section: C
Quiz#1
Question#1:
1. Design of good and services: Frito currently owns 7 successful
products that contribute a huge amount of profits to them. However, Frito
Lay always tries to make some innovation in their product designs. Their
product development department would experiment with new products
and send them to evaluation groups who are responsible for its marketing
testing. After these processes, they can decide whether they should
launch these products or not.
2. Managing quality: Frito Lay has a strict quality control process that
involves a variety of process such as visual inspection, oil control, weight
control, etc. Moreover, they also conduct quality checks throughout
shipment, receipt, production, packaging, and delivery.
3. Process and capacity design: Frito-Lay’s process should be suitably
design for their high volumes and small variety, so they have to invest
heavily in some high-technology machine that can sustain the rapid
process. Moreover, they also focus on green manufacturing and
sustainability. They use solar energy to reduce their electricity expense
and recycle carton boxes to protect the environment.
4. Location strategy: Because chips require a high freshness of input
materials so Frito Lay has to set up their plant near raw material sources.
Moreover, their plan should be near the retailers to make on-time delivery
5. Layout strategy: Sanitary problems and rapid processing of product
require Frito Lay to focus on the efficiency of their plant layout. The
assembly lines should be easy for workers to do all production steps in
the shortest time.
6. Human resources: There are cross-training for workers who have to
operate a variety of production lines. The firm also gives them a specific
path with a good promotion policy. Frito Lay also rewards employees
with high condition of medical, retirement, and education policy.
7. Supply-chain management: Supply chain is a very important factor
that brings success to food-related company. The quality of finished
product is highly dependent on the freshness of raw material. Frito Lay
should strictly choose good vendors that can supply high-quality raw
materials on time, so they can enhance their production’s efficiency.
8. Inventory, material requirements planning, and JIT: The inventory
turnover rate for
Frito-Lay is 200 times per year. This allows for better flow of fresh
goods.
9. Intermediate and short-term scheduling: Frito-Lay upholds tight
scheduling to ensure the proper mix of fresh finished good on automated
equipment, which requires reliable systems and effective maintenance.
10. Maintenance: Frito Lay has to focus on maintenance because
downtime is very costly and leads to a delay in production. They trained
their employees to recognize the flaws early and do a professional fix, so
they can avoid some problems that force them to stop their
production lines.
Question#2:
The productivity of the production process can be determined by the
output over input. For example, output could be something in pound and
input could be labor hours. However, for multifactor productivity, we
must take into consideration capital, labor, material, and energy.
Question#3:
Hard Rock Cafe Frito-Lay
Product designs Their product is food and Innovation in product
their service is music. design. Strict evaluation
They keep changing before launching a new
their combination of product.
food and music to
enhance benefits that
they bring to their
customer.
Managing Quality They used survey as their Many quality inspection
main quality measurement. points in each specfic
These surveys involve process such as peeling,
many aspects that packaging and shipping.
customers can completely
evaluate Hard rock cafe’s
services.
Process and capacity Mass production
design Green Production
Location Located near tourist areas Plants were located near
raw materials suppliers
Layout Reduce movement time of
workers
Human Resources Having many different High rewards for workers
positions. Staff not only Efficient training.
have good skills for their
specific tasks but also
show their passion in
music and collaborate with
others
Inventory N/A N/A
Maintenance Rapid production requires
good maintenance
Supple chain management Focus on raw materials
suppliers
Scheduling Fluctuation in sales. Run and operate 24/7
It highly depends on High intense production
seasonal factor.
