The planning process can be categorized into three time horizons as long-term planning, intermediate-term planning and short-term planning. According to that, kfc has used short-term planning in their planning process in their operation management. Short-term planning can be define which incurs a duration of less than three months, is the responsibility of workers under the operations manager. These workers include supervisors and foremen. Their main task is to translate the intermediate-term plans into weekly, daily and hourly schedules.
Kentucky Fried Chicken planning
KFC serves to a wide range of consumers such as, Families, Teen agers and children. They provide its customers with a wide range of option to choose from. KFC have always been an order winner by trying to strengthen their order qualifying aspects (Gordon, 2013). Order qualifiers means the basic characteristics that the product or service must possess in order to be considered by consumers for purchase. The consumers demand, value for their money, i.e. the price of the product must be reasonable (Heizer and Render, 2014).
Then next comes, Quality, they judge the brand as per the quality of product provided by the provider. Speed in another criteria for consumers while judging, they need quick service and delivery of their products. They also look at the dependability in the products in terms of, whether the product matches the specified requirements or not. The last aspect that consumers focus on is flexibility, i.e. whether they are able to bring in new and innovative products or not (Hosseinzadeh, 2014). The above criteria have been mentioned as per Slack’s model. These expectations by the consumers have led KFC to form the following operational objectives to be an order winner.
Their objectives can be listed as follows to minimize the cost. For that they need to make their process efficient, which requires huge investments. Next, to maintain the quality of the product (Ichiue and Nishiguchi, 2014). For this, they have a very detailed quality management program which ensures that the company meets all the required standard of hygienic food. Then to ensure that they deliver the products quickly. As mentioned earlier, they have been able to reduce delivery time by 50% by designing an effective assembly line and facility layout and continuously improving.
They have always been dependable, as they were able to meet all the specifications specified for the consumers (Kapoor and Tak, 2015). They have always tried to understand the requirement of the consumer. They spend huge amount on training of the staff. They have been flexible in their operations. They produce as per they demand. They need to focus more on their production processes in order to ensure that they can reduce the time taken to produce the products. They can focus on adding new products in the menu.
KFC has always been adopting the best operation management practices as they understand that focusing on small decisions will help them to gain competitive advantage over its competitors (KINSEY and COLLINS, 1994). There operations are defined in detail in the next section.
Economy means doing things as cheaply as possible, avoiding spending more than is necessary. By taking different measures, KFC has cut down its unnecessary costs. It has given up several less productive projects which save them a good amount of money. This has provided economy to KFC.
Efficiency means doing things as smoothly as possible, eliminating processes and activities that do not lead closer to the finished product. Through proper management, KFC has been achieving consisting growth is business. By taking necessary and brave decisions, the company has reached that level. It can be considered as its efficiency.
Effectiveness means doing things as well as possible, making sure that the end result is a close match to what the customer actually wants. By taking different proactive decisions, KFC has exceeded its competitors. Following the opportunity to shop online and attracting customers by different promotional activities can be considered as sign of effectiveness.
Even after the operations system has been successfully designed and placed in to actual use, considerable managerial discretion remains. This is because decisions that have been made by KFC itself include on a shorter term basis, month to month, day to day even hour to hour as to how the system will be operated and controlled. Operational planning and control decisions by KFC are involve scheduling and control of labor, materials, and capital input to produce the desired quantity and quality of output most efficiently.
Operational planning and control is needed by PIA to forecasts of future demand. But even with the best possible forecasting and the most finely tuned operations system, demand cannot always be met with existing system capacity in a given time period. Unexpected market trends, new product developments, or competitors ‘actions can throw the forecasts off, and problems in the operations system can reduce capacity. At these times, shorter term managerial decisions must be made to allocate system capacity to meet demand.