Sustainable Operation – Management

Rubric is attached please fully read it and carefully follow it. 

Due in 13 hours. Two page research paper. 

Choose one of the 4 companies. 

6/5/2018 Tesla Motors, Inc.’s Operations Management: 10 Decisions, Productivity – Panmore Institute

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A Tesla Model S 4WD at the IAA 2015 exhibition in
Frankfurt, Germany. Tesla Motors, Inc. optimizes
productivity through operations management suitable for
the 10 strategic decision areas of the automotive
business. (Photo: Public Domain)

Tesla Motors, Inc.’s operations
management (OM) practices
address the objectives in the 10
strategic decisions for optimal
productivity in all areas of the
automotive business. These 10
strategic decision areas require
operations managers to
maintain best practices to
ensure streamlining,
effectiveness and high
productivity in the organization.
Tesla’s global expansion plans
depend on the success of these
practices in optimizing
productivity and overall

performance. Also, the company’s technological innovation goals support and depend on OM
performance. As an increasingly popular manufacturer of electric vehicles, Tesla must keep improving
these practices for operational competence against other automakers.

Tesla Motors, Inc. uses operations management (OM) best practices to maximize productivity while
minimizing costs, based on the 10 strategic decision areas. This optimal operational condition
contributes to Tesla’s ability to sell its products at reasonable prices, given current market forces and
cost of materials.

Tesla Motors, Inc.’s Operations Management, 10 Decision
Areas

BUSINESS, MANAGEMENT

Tesla Motors, Inc.’s Operations Management: 10
Decisions, Productivity
UPDATED FEB 21, 2017 ANDREW THOMPSON

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1. Design of Goods and Services. In this strategic decision area, operations managers focus on how
the organization’s products influence costs, quality objectives and resources. Tesla addresses this
concern through concurrent innovation. For example, to ensure productivity in manufacturing
advanced electric vehicles, the company continuously innovates its supply chain systems. In addition,
Tesla’s operations management maintains its focus on electric automobiles. Such focus optimizes
organizational capacity for innovating automotive products.

2. Quality Management. Satisfying customers’ quality expectations is the main objective in this
strategic decision area of operations management. Tesla addresses this objective through regular
research on the automotive market. In addition, the company continues to enhance its products and
processes to satisfy high standards for quality and productivity. For example, Tesla’s operations
managers regularly conduct quality reviews of, and implement enhancements to manufacturing
processes.

3. Process and Capacity Design. This operations management decision area focuses on business
processes, along with related investments, standards, and resources. Tesla Motors, Inc. integrates
automation for this concern. For example, the company has automated manufacturing processes
combined with human intervention. This condition helps Tesla achieve high productivity through
operational efficiency in the automotive business.

4. Location Strategy. Logistics and nearness to markets, resources and suppliers are considered in
this strategic decision area of operations management. In terms of resources, Tesla’s operations
managers utilize its global reach. For example, suppliers like Panasonic provide materials necessary
for manufacturing electric automobiles. Tesla’s marketing mix also involves company-owned stores
and galleries in malls and other key locations to maximize sales personnel productivity and access to
the target market.

5. Layout Design and Strategy. In this strategic decision area, operations management is concerned
with achieving optimal flow of resources and information. In Tesla’s case, layouts are designed to
maximize capacity utilization of facilities, especially buildings used for manufacturing electric vehicles.
Also, the company employs advanced computing and networking technologies for internal
communications. These approaches increase productivity in Tesla’s operations.

6. Job Design and Human Resources. Adequacy of effective human resources is the objective in
this strategic decision area of operations management. Tesla Motors, Inc. satisfies this objective
through a competitive compensation strategy to attract effective and competent workers. This

Tesla’s Marketing Mix: 4Ps Analysis

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approach is especially important in the market, where many companies compete for high quality
human resources. Also, Tesla’s operations management ensures effectiveness and high productivity
of personnel through regular training, as well as leadership development programs. For example,
leadership development is used to fulfill Tesla’s leadership needs to grow its automotive business.

7. Supply Chain Management. In this strategic decision area, operations managers focus on
adequate supply and an effective and efficient supply chain. Tesla has a global supply chain aimed at
supporting its manufacturing processes. For example, high productivity of the company’s
manufacturing plants in the U.S. benefits from timely shipment of materials from overseas. As an
automaker that focuses on manufacturing in the United States, Tesla’s operations management
automates the supply chain, while constantly looking for strategic partners in the industry.

8. Inventory Management. Inventory decisions, costs and support for production are considered in
this strategic decision area. At Tesla, inventory decisions are based on operations management
principles that emphasize quality. For example, managers require that inventory holding does not
affect the quality of materials used for the company’s electric vehicles. On the other hand, for high
productivity and minimized inventory costs, Tesla’s operations management approach involves just-in-
time inventory for some materials. For instance, some materials for automobile production are used as
soon as they arrive at the company’s manufacturing facilities. This approach helps minimize Tesla’s
inventory costs.

9. Scheduling. This strategic decision area focuses on short-term and intermediate schedules for
resource utilization. Operations managers at Tesla Motors, Inc. address these concerns through
market-based scheduling, combined with automated processes for maximum efficiency. In market-
based scheduling, the company monitors actual market demand and uses the resulting data as basis
for scheduling automobile production. On the other hand, Tesla’s operations management supports
scheduling activities with automation to minimize errors and delays, thereby enhancing productivity.

10. Maintenance. Adequacy of resources and production capacity are the objectives in this strategic
decision area of operations management. Tesla ensures resource adequacy through regular inventory
monitoring that readily responds to shifts in market demand. The company addresses the objective of
adequate production capacity through a small but significant degree of redundant processes and
production resources. For example, Tesla maintains excess production capacity in some of its
facilities. Such redundancy allows the company to rapidly increase its production in response to spikes
in market demand for electric vehicles. These operations management approaches create resilience
and responsiveness in Tesla’s productivity.

Tesla’s Measures of Productivity
Tesla Motors, Inc. uses measures of productivity based on automobile production. The company also
uses productivity criteria for its corporate office operations management. The following are some of
these measures used to determine Tesla’s productivity:

1. Powertrain units per day (Auto production plant facility productivity)
2. Automobiles per day (Tesla production plant facility productivity)
3. Inquiries addressed per day (Customer service productivity)

References

6/5/2018 Procter & Gamble’s Operations Management: 10 Decisions, Productivity – Panmore Institute

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A former Procter & Gamble building in Baltimore,
Maryland. The 10 strategic decision areas of operations
management are addressed to ensure Procter &
Gamble Company’s productivity and effectiveness in the
consumer goods industry. (Photo: Public Domain)

The Procter & Gamble
Company’s operations
management (OM) strategy
follows goals for optimization in
efficiency and effectiveness in
satisfying various needs of the
business in consumer goods
markets worldwide. The
strategy addresses the 10
strategic decisions, which
pertain to various operational
areas of the company. Procter
& Gamble’s operations
management efforts push for
maximum productivity in these
10 strategic decision areas.

Highly productive operations support effective strategy implementation. For example, based on higher
productivity, Procter & Gamble’s operations managers can implement higher production capacity
directives. These conditions contribute to the company’s ability to stabilize its global business. Current
OM strategies and tactics work to fulfill Procter & Gamble’s business goals. However, it is essential to
make adjustments in response to changes in P&G’s industry and market variables. Such adjustments
should match variables like market demand and technological advances to maintain high performance
and support market leadership goals embodied in Procter & Gamble’s vision statement and mission
statement.

Operations management decisions determine productivity and the capacity of Procter & Gamble to
respond to business needs. These needs change according to consumer goods market conditions
and organizational conditions. Procter & Gamble’s operations managers implement changes in the 10
strategic decisions accordingly.

BUSINESS, MANAGEMENT

Procter & Gamble’s Operations Management: 10
Decisions, Productivity
UPDATED MAY 25, 2017 LAWRENCE GREGORY

Procter & Gamble’s Mission Statement & Vision Statement: An Analysis

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Procter & Gamble Company’s Operations Management, 10
Decision Areas
1. Design of Goods and Services. Operations managers are concerned about product
specifications, which determine other strategic decision areas of operations. Procter & Gamble’s
objective in this area is to develop products within organizational capabilities, while supporting goals
for innovation. Innovation is a main factor in the company’s intensive growth strategies (Read: Procter
& Gamble’s Generic Strategy & Intensive Growth Strategies). In applying this approach, the
company’s operations managers focus on cost minimization without sacrificing product quality. In this
way, Procter & Gamble’s vision statement and mission statement are satisfied in terms of ensuring
quality and value of consumer goods. For example, cost minimization is possible through high quality
P&G products designed for high operational productivity levels. Thus, Procter & Gamble maintains
high quality standards while keeping flexibility in other related factors for this strategic decision area of
operations management.

2. Quality Management. Quality management’s objective is to implement quality standards based on
the expectations of target customers or consumers. In this case, the Procter & Gamble Company’s
goal for this strategic decision area is to apply high quality standards in OM. These standards support
leadership in OM, and business leadership in the consumer goods industry. High quality standards
address issues linked to competitive rivalry shown in the Porter’s Five Forces Analysis of Procter &
Gamble. For example, products of higher quality are more likely to succeed in the saturated market of
consumer goods. At Procter & Gamble, operations managers use current market data to determine
the suitability of quality standards. Operational specifications and productivity measures are adjusted
according to changes in data pertaining to P&G consumer expectations. Thus, in this strategic
decision area of operations management, Procter & Gamble’s dynamic quality standards are used to
match market expectations.

3. Process and Capacity Design. The strategic decision in the area of process and capacity design
considers the specifications and requirements in Procter & Gamble’s production processes. The
company’s objective is to maintain adequate capacity and productivity. In this regard, the operations
management approach used at Procter & Gamble involves maximization of automation in production.
For example, automation increases productivity and capacity through higher operational efficiency.
The resulting condition contributes to the benefits of economies of scale, which is one of the strengths
identifiable in the SWOT Analysis of the Procter & Gamble Company. In this strategic decision area of
operations management, designs are also based on regular reviews of P&G’s processes. The
resulting data allow Procter & Gamble’s operations managers to develop solutions to ensure that the
consumer goods business remains highly productive.

Procter & Gamble’s Generic Competitive Strategy & Growth Strategies

Procter & Gamble (P&G) Five Forces Analysis & Recommendations

Procter & Gamble SWOT Analysis & Recommendations

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4. Location Strategy. Optimal distances from resources and target markets are the operations
management objective in this strategic decision area. Procter & Gamble uses an approach that
prioritizes proximity to target markets. For example, facilities are located where it is easy to transport
P&G’s consumer goods to retailers. In this condition, Procter & Gamble’s operations managers
maximize the benefits of high productivity. For instance, high operational productivity in manufacturing
and distribution facilities supports effective market reach through retailers.

5. Layout Design and Strategy. The Procter & Gamble Company addresses layout design and
strategy through real-time data. The objective in this strategic decision area of operations
management is to optimize the flow of resources and information to support the consumer goods
business. In this case, Procter & Gamble’s organizational structure also determines the layout design
and strategy. For example, internal business processes are grouped according to the divisions in the
corporate structure. Moreover, operations managers are concerned about layouts that suit internal
business processes in Procter & Gamble’s corporate offices. The aim is to support P&G employees’
productivity. Understandably, Procter & Gamble’s operations management approach for this strategic
decision area adapts to available spaces, considering variations in facilities and regulations.

6. Job Design and Human Resources. Operations managers are involved in efforts to ensure the
adequacy of human resources. To address this objective, Procter & Gamble implements employee
training programs for innovation and productivity. Employees are among the main stakeholders of the
company (Read: Procter & Gamble’s Corporate Social Responsibility Strategy & Stakeholders). The
approach used for this strategic decision area also supports leadership and passion for winning as a
way to enhance employee morale and career development. Aligned with Procter & Gamble’s
organizational culture, these factors and operations management efforts ensure effective and
adequate human resources. Adequate HR supports consistency and effective capacity in P&G’s
consumer goods business. For example, the strategically developed human resources and its culture
make it easier for Procter & Gamble’s operations managers to address operational issues.

7. Supply Chain Management. This strategic decision area of operations management has the
objective of strategically aligning an effective supply chain that supports Procter & Gamble’s consumer
goods business. The condition of the supply chain determines the capabilities of the company in terms
of productivity and capacity. In this regard, Procter & Gamble’s operations managers prioritize external
and internal factors that significantly influence the supply chain. The company aims to minimize the
negative operational effects of these factors on productivity. For example, the PESTEL/PESTLE
analysis of the Procter & Gamble Company shows that ecological factors can create challenges in
maintaining an adequate supply chain for P&G. Thus, the company uses data on external conditions
and internal conditions to address such challenges and to fulfill the operations management objectives
in this strategic decision area.

8. Inventory Management. For inventory management, Procter & Gamble’s operations management
team focuses on the objective of matching inventory and organizational needs. At the same time, the
company considers consumers, suppliers, and business productivity in this strategic decision area.
Moreover, Procter & Gamble’s marketing mix (4Ps) imposes requirements on inventory management
activities. For example, the activities of retailers influence P&G’s operations management decisions in
this strategic area. The methods that Procter & Gamble applies for inventory management include the
periodic method and the first in, first out (FIFO) method. FIFO minimizes spoilage of raw materials and
consumer goods. Procter & Gamble’s operations managers also use buffer inventory to address
sudden fluctuations in market demand.

9. Scheduling. In this strategic decision area, Procter & Gamble’s objective is to develop and
implement short-term and intermediate operational schedules for optimum utilization of resources to
support business needs. In this regard, the approach to OM involves fixed schedules for most of

Procter & Gamble’s Organizational Structure (An Analysis)

Procter & Gamble’s Stakeholders & Corporate Social Responsibility

Procter & Gamble (P&G) Organizational Culture Analysis

Procter & Gamble PESTEL/PESTLE Analysis & Recommendations

Procter & Gamble’s Marketing Mix (4Ps) Analysis

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P&G’s corporate offices, and rotating variable schedules in some facilities. For example, Procter &
Gamble’s corporate office employees adhere to their fixed schedules for data processing and
analysis. On the other hand, operations managers apply rotating schedules for manufacturing
processes. Some of these rotating schedules are variable to enable Procter & Gamble to
correspondingly vary its productivity as a way of addressing changes in market demand for consumer
goods.

10. Maintenance. P&G has the objective of maintaining effective and adequate processes in this
strategic decision area of operations management, in consideration of productivity and capacity,
demand, and resources. Procter & Gamble’s operations managers maintain dedicated personnel for
each process. For example, for problems involving the supply chain, the company has a dedicated
team that specializes in supply chain management. This operational approach ensures continuity in
Procter & Gamble’s operations management policies and strategies, leading to consistency in
productivity and output of the consumer goods business.

Productivity at Procter & Gamble
As a global consumer goods business, the Procter & Gamble Company uses an array of measures or
criteria for evaluating productivity. Operations management uses the results of such evaluation to
support P&G’s processes. The following are notable criteria used to determine productivity in different
areas of Procter & Gamble’s operations:

1. Batches per hour (Procter & Gamble’s manufacturing productivity)
2. Tickets per day (Customer service productivity)
3. Variant tests per month (R&D productivity)

References

Brown, S., Bessant, J. R., & Lamming, R. (2013). Strategic operations management. Routledge.
Ceko, E. (2014, May). Relations between Strategic Management, Operations Management and
Environment Protection. In International Conference: Fostering Sustainable Development through
Creation of Knowledge Society (Vol. 17, p. 18).
Chiarini, A. (Ed.). (2015). Sustainable Operations Management: Advances in Strategy and
Methodology. Springer.
Gundersen, T. F. (2017). Best Strategic Decisions in Management of Complex Operations.
In International Manufacturing Strategy in a Time of Great Flux (pp. 85-104). Springer International
Publishing.
Hernández, J. E., Lyons, A. C., Zarate, P., & Dargam, F. (2014). Collaborative decision-making and
decision support systems for enhancing operations management in industrial
environments. Production Planning & Control, 25(8), 636-638.
Käki, A., Salo, A., & Talluri, S. (2013). Impact of the shape of demand distribution in decision
models for operations management. Computers in Industry, 64(7), 765-775.
The Procter & Gamble Company – Who We Are.
The Procter & Gamble Company, Form 10-K.

http://us.pg.com/who-we-are

https://www.sec.gov/Archives/edgar/data/80424/000008042416000212/fy151610-kreport.htm

Amazon.com Inc.’s e-commerce success

depends on the high ef ciency achieved

in its operations management (OM),

which directly determines productivity.

The company must address the concerns

of the 10 strategic decision areas of

operations management to optimize

productivity. As the leading player in the

e-commerce industry, Amazon is an

example of the signi cance of

technologically supported productivity

for optimal ef ciency of services. These

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Amazon.com Inc. Operations
Management: 10 Decisions, Productivity
UPDATED FEB 21, 2017 | EDWARD FERGUSON

Panmore Institute

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Company Analysis: Business Potential & Performance

Amazon Tower II (Rufus Block 19) in February 2016.

Amazon.com Inc.’s operations management tackles the 10

strategic decision areas through automation and HR

development for optimal e-commerce productivity. (Photo:

Public Domain)

10 strategic decisions of operations

management become increasingly

complex, as the organization continues to

expand and diversify its

business.

Continuous improvement can help

enhance the capabilities of Amazon in maintaining adequate support for operations

despite global expansion and the broadening of the product mix [Read: Amazon’s

Product Mix, Marketing Mix]. Through effective operations management, Amazon keeps

its lead in online retail and the e-commerce market.

Amazon ensures that its operations management (OM) efforts satisfy the 10 strategic decision

areas of its e-commerce business. With expanding operations in addition to online retail

business, Amazon.com Inc. must continue adjusting its operations management approach for

the corresponding changes in these strategic decision areas.

Amazon’s Operations Management, 10 Decision Areas

Amazon’s Marketing Mix (4P) Analysis

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1. Design of Goods and Services. The design of organizational output is covered in this

strategic decision area of operations management. Amazon addresses this concern

primarily through technology. For example, the company uses advanced information and

communication technologies to ensure that its online retail services are ef cient and

convenient for target customers. Such technologies are also used to support maximum

ef ciency of Amazon’s e-commerce operations.

2. Quality Management. The objective in this strategic decision area is to maximize

quality of operational output to satisfy the expectations of customers. Amazon.com Inc.’s

operations management approach involves continuous improvement efforts in its e-

commerce business. The company uses its organizational culture to support innovative

idea creation among employees [Read: Amazon’s Organizational Culture]. For example,

Amazon encourages employees to be bold and pioneering in creating new ideas to solve

problems and improve the business.

3. Process and Capacity Design. An objective of operations management is to optimize

production processes and capacity. In this strategic decision area, Amazon applies

extensive automation to streamline its business processes. For example, considering

Amazon’s Organizational Culture Characteristics (An Analysis)

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online retail service as its main organizational output, the company automates the

ordering process to increase the capacity to accept as many simultaneous orders as

possible. This approach to operations management highlights the importance of

automation and related technologies in enhancing Amazon’s process and capacity in e-

commerce.

4. Location Strategy. The accessibility of resources and markets is considered in this

strategic decision area of operations management. In the case of Amazon.com Inc., the

emphasis is on the strategic location of warehouses or ful llment centers. For example,

Amazon must maintain warehouses that are optimally near the largest possible number

of customers of the online retail business.

5. Layout Design and Strategy. In this strategic decision area, operations managers have

the objective of optimizing the movement of human resources, materials, and

information. Amazon addresses this objective through ef cient layout designs that align

with computer-assisted processes. For example, in the company’s warehouses and

ful llment centers, items are organized according to a computerization policy. The

corresponding layout involves maximization of shelf space and minimization of aisles to

achieve optimal capacity without reducing process ef ciency in Amazon’s online retail

business.

6. Job Design and Human Resources. Human resource development is the focus in this

strategic decision area. Amazon’s operations management uses a combination of in-

house employment processes and third-party employment agencies. For example,

workers from these agencies ll temporary positions and are evaluated to determine

suitability for permanent positions, especially in warehouses and ful llment centers.

Amazon’s recruitment and hiring processes are aligned to organizational growth and

human resource needs in corporate of ces.

7. Supply Chain Management. The operations management concern in this strategic

decision area is to streamline the supply chain to support organizational objectives.

Amazon does so through automation and enabling suppliers and buyers to access some

of its IT assets. For example, sellers adjust supply levels based on demand data available

from the company’s online retail website. Also, buyers can track order and communicate

with suppliers through data available from Amazon’s website.

8. Inventory Management. In inventory management, operations management’s focus is

on maintaining optimal inventory ordering and holding. Amazon addresses this strategic

decision area through a nished goods inventory using just-in-time inventory

management in some areas. For example, in just-in-time inventory management, some

goods that arrive at the company’s ful llment centers are immediately shipped to ful ll

customers’ orders. Amazon holds other goods as part of its nished goods inventory. In

addition, to ensure optimal inventory ordering and holding, warehouse employees are

trained to maximize the speed of order ful llment through mobile computers linked to a

central computer and database. In this way, Amazon.com Inc.’s operations management

optimizes its online retail inventory size to minimize costs while satisfying market

demand.

9. Scheduling. Operations managers consider intermediate and short-term schedules to

ensure that resources satisfy market needs. In this strategic decision area, Amazon

relies on the involvement of suppliers for its online retail business. For example,

suppliers access the company’s website to determine demand levels and implement

their shipping and delivery schedules accordingly. Also, Amazon’s operations

management automates shipping schedules involving its ful llment centers, which

provide shipping services to sellers for a fee.

10. Maintenance. This strategic decision area emphasizes the reliability and stability of

business processes. Amazon.com Inc.’s operations management involves specialized

teams for maintaining technological assets. In addition, workers are regularly trained to

maintain human resource capacity to satisfy the company’s needs for its e-commerce

business. Moreover, Amazon is always on the lookout for advanced technologies to

improve its operational ef ciency.

Amazon.com Inc.’s Productivity Measures
Amazon’s business productivity mainly refers to the productivity of its personnel and

automated systems in ful lling customers’ orders. In online retail operations, the

company’s employees must move fast in packing and shipping items to ful ll customers’

orders. The following are some of the measures or criteria used to determine

productivity at Amazon:

1. Inventory items processed per hour (inventory productivity)

2. Orders ful lled per hour (Amazon Ful llment Center productivity)

3. Inquiries answered per day (customer service productivity)

References

Amazon.com, Inc. Form 10-K.

Liu, S., & Jiang, M. (2011). Providing Ef cient Decision Support for Green Operations

Management: An Integrated Perspective. INTECH.

Najdawi, M. K., Chung, Q. B., & Salaheldin, S. I. (2008). Expert systems for strategic

planning in operations management: a framework for executive

decisions. International Journal of Management and Decision Making, 9(3), 310-327.

Verdaasdonk, P., & Wouters, M. (2001). A generic accounting model to support

operations management decisions. Production Planning & Control, 12(6), 605-620.

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10 DECISION AREAS OF OPERATIONS MANAGEMENT AMAZON.COM INC.
CASE STUDY & CASE ANALYSIS E-COMMERCE OPERATIONS MANAGEMENT RETAIL
RETAIL INDUSTRY

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A Wendy’s hamburger fast food restaurant in Tocoa,

Honduras. Wendy’s strategic decisions emphasize operations

management for stability and productivity in all areas in its

current markets, mostly in North America. (Photo: Public

Domain)

Wendy’s applies the 10 strategic

decisions of operations management

(OM) to address needs in various

business areas. These 10 strategic

decisions are aimed at streamlining

Wendy’s activities. As the third biggest

hamburger restaurant chain in the world,

Wendy’s must streamline its operations

to effectively compete against aggressive

rms like McDonald’s and Burger King.

Wendy’s operations management efforts

are indicative of the company’s

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BUSINESS, MANAGEMENT

Wendy’s Operations Management, 10
Decisions, Productivity
UPDATED FEB 7, 2017 | LAWRENCE GREGORY

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McDonald’s Operations Management: 10 Critical Decisions, Productivity

Burger King’s Operations Management, 10 Decisions, Productivity

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Company Analysis: Business Potential & Performance

prioritization of business stability rather than international expansion. Nonetheless, the

10 strategic decisions of operations management are applied in a way that supports

Wendy’s potential expansion in more market areas.

Wendy’s operations management (OM) covers all of the 10 strategic decision areas for its

business. Wendy’s strategies are directed toward productivity and business stability, and less at

expansion in the global hamburger restaurant market.

Wendy’s Operations Management, 10 Decision Areas
1. Design of Goods and Services. Wendy’s emphasizes high output quality. This decision

area of operations management pertains to the design of the company’s products and

how it addresses business and market needs. In this regard, Wendy’s strategy is based

on product innovation to maintain product competitiveness.

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2. Quality Management. In this strategic decision area, Wendy’s objective is to maintain

high quality standards to match outputs and consumer expectations. The company

ensures that its operations managers are prepared to apply these standards at larger

scales when expansion starts. Wendy’s mission and vision statements emphasize high

quality.

3. Process and Capacity Design. Wendy’s operations management strategy involves

production lines. Many of the ingredients are prepared in the company’s production line

facilities. Also, even at Wendy’s hamburger restaurants, this system is used to maximize

process ef ciency and capacity utilization in all areas.

4. Location Strategy. Wendy’s strategy for this decision area of operations management

is typical in the fast food restaurant industry. For instance, the company maintains

strategically located Restaurant Support Centers as support hubs for its franchisees. On

the other hand, Wendy’s restaurant locations are based on proximity to town and city

centers.

5. Layout Design and Strategy. In this strategic decision area of operations

management, the goal is to ensure that layouts facilitate ef cient movement of people,

Wendy’s Mission Statement & Vision Statement (An Analysis)

materials and information. Wendy’s does so through standard layouts for its restaurants

and their kitchens. Total Quality Management is also used as basis for the layout design

and strategy of Wendy’s operations management in Restaurant Support Centers and

supply

chain facilities.

6. Job Design and Human Resources. Wendy’s Restaurant Support Centers provide HR

training support for franchisees. In this way, the company satis es its operations

management objective of standardization in this strategic decision area. Wendy’s

corporate control is applied through these centers, ensuring optimal human resource

performance.

7. Supply Chain Management. This decision area of operations management involves

the adequacy of the supply chain. In this regard, Wendy’s strategic objective is to

diversify its supply chain. Even though most of its operations are in North America,

Wendy’s operations management approach maintains suppliers outside North America

for a stable supply chain.

8. Inventory Management. Wendy’s uses a combination of centralized and

decentralized approaches for this strategic decision area of operations management.

The company applies centralized inventory management to minimize stockouts

throughout the inventory. On the other hand, decentralization ensures that Wendy’s

operations management is capable of responding to uctuations in markets. For

example, Wendy’s restaurant managers are given considerable autonomy for managing

the inventory for day-to-day operations.

9. Scheduling. This strategic decision area of operations management focuses on

implementing schedules that address customers’ needs. Wendy’s uses automation for

scheduling many of its activities in the supply chain. However, majority of operations in

Wendy’s hamburger restaurants involve manual and semi-automated scheduling.

10. Maintenance. Wendy’s operations management strategy for this decision area is to

use localized maintenance teams. Franchisees access local maintenance teams and

services from the Wendy’s Restaurant Support Centers. The company’s operations

management also includes in-house maintenance teams for some areas, such as supply

chain facilities.

Wendy’s Productivity Measures
Wendy’s productivity is measured through a wide variety of criteria. Variations among

franchisees’ operations management also lead to differences in the productivity

measures used. The following are some of the most notable productivity criteria

considered at Wendy’s:

1. Stockout rate (inventory management productivity)

2. Orders ful lled per hour (Wendy’s restaurants’ productivity)

3. Rate of problems solved (Wendy’s Restaurant Support Centers’ productivity)

References

Lawrence, K. D., & Weindling, J. I. (1980). Multiple goal operations management

planning and decision making in a quality control department. In Multiple Criteria

Decision Making Theory and Application (pp. 203-217). Springer.

Liu, S., & Jiang, M. (2011). Providing Ef cient Decision Support for Green Operations

Management: An Integrated Perspective. INTECH.

Najdawi, M. K., Chung, Q. B., & Salaheldin, S. I. (2008). Expert systems for strategic

planning in operations management: a framework for executive

decisions. International Journal of Management and Decision Making, 9(3), 310-327.

Schrunder, C. P., Galletly, J. E., & Bicheno, J. R. (1994). A fuzzy, knowledge‐based
decision support tool for production operations management. Expert Systems, 11(1),

3-11.

The Wendy’s Company, Form 10-K, 2013-2014.

Verdaasdonk, P. (1999). De ning an information structure to analyse resource

spending changes of operations management decisions. Production Planning &

Control, 10(2), 162-174.

Verdaasdonk, P., & Wouters, M. (2001). A generic accounting model to support

operations management decisions. Production Planning & Control, 12(6), 605-620.

Wendy’s International, LLC, Form 424B3, 2001.

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10 DECISION AREAS OF OPERATIONS MANAGEMENT CASE STUDY & CASE ANALYSIS
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Page1 of 2

MGMT 326 – Summer 2018

Dr. Clovia Hamilton

BUSINESS OPERATIONS SHORT ESSAY PROJECT

Case studies that I have posted in Blackboard were prepared by the Panmore Institution. With this

project, you will report more information that you’ll research about your selected company. Here are the

assigned companies:

Your last name Corporation

A-D Tesla Motors

E -M Amazon

N-R Wendy’s

S-W Proctor & Gamble

Due in Week 8 – by 11:59pm eastern time on Sun Jul 29th

Student:

CONTENT OF WORK

2 page REPORT = 10 pts
Report pages are due to be posted in Blackboard

The assignment portal closes at 11:59pm eastern time on Sun Jul 29th

Credit lost for going under 2 pages: -2pt

Do not include a title page. Simply use 2 lines for your title and your name
and date. Credit lost for not following this instruction – 1pt

Credit lost for going over 2 pages in report content (not counting your
reference page): -2pt

Only use Microsoft Word. Do not post a link to a file in Google Docs or some
other platform. Simply upload a pdf of your Microsoft Word file or submit
your Microsoft Word file.
Credit lost for not following this instruction – you will not get credit for this
assignment at all

Credit lost for not providing at least 5 cited references – 2 pt

You can cite the textbook and the Panmore Institute case study. But you must
conduct further research. Do not plagiarize and merely copy the textbook and
Panmore Institute handout! Credit lost for not following this instruction – you
will not get credit for this assignment at all

Credit lost for references not being in APA format -2pt

Note: Put references in a separate 3rd page using APA format. No other
content should appear on that last page. Credit lost for not following this
instruction – 1pt

Credit lost for not using any of the required Times New Roman, 12 point font,
single spaced, no spacing between paragraphs, one 12 point size spacing
between sections, and one inch margins: -2 pt

Credit lost for more than one spelling or grammar issue -2pt

Credit lost for not applying the course concepts correctly – 2 pt

Page 2 of 2

Follow this Report Paper outline:
I. Introduction – Literature Review (find at least 5 references)
II. Supply Chain Management
III. Inventory Management
IV. Conclusion

List of References (separate page 3)

Simply summarize briefly what you have learned about your assigned
company after conducting your independent research. Use the company’s
website, reputable news articles (do not use blogs or cite webpages such as
Wikipedia), and scholarly journal articles or books. Google Scholar is a great
tool for finding scholarly journal articles.

Reputable news outlets include the National Public Radio Public Broadcasting
Station (PBS), New York Times, Washington Post, CNN, Business Insider and
the like. Reputable magazines include magazines such as Times Magazine and
Money. If you are in doubt, visit the Winthrop University library and consult
with a librarian.

Credit lost for not following the report outline – 2pts
Credit lost for any one poor choice in reputable reference – 1 pt each

TOTAL POSSIBLE POINTS = 10 points
10% of your overall class grade
Note if you drop below a zero, you will simply get a zero score.