Week 1 Assignment: OM Comparison Paper
Assignment: OM Comparison Paper
· Link (website):Frito-Lay Corporation
· Link (video):Frito-Lay: Operations Management in Manufacturing (video length 7:11 minutes)
· Link (website):Hard Rock Café
· Link (video):Hard Rock Café: Operations Management in Manufacturing(video length 8:26 minutes)
· Minimum of 2 resources
Introduction
During this course, you will be utilizing several resources associated with the Heizer & Render textbook This week’s assignment takes us into the operations of two very different companies, Hard Rock Café and Frito-Lay Corporation You will view the assigned video segments and compare the two organization’s OM functions
Activity Instructions
View the assigned video segments and write a paper that compares the service company Hard Rock Cafe to the manufacturing firm Frito-Lay Specifically, the paper could compare and contrast how the two firms approach the 10 major OM decisions described in the text
Frito-Lay: Operations Management in Manufacturing
Frito-Lay, a subsidiary of PepsiCo, has over 40 product lines, seven of which having sales exceeding $1 billioneach In this video, the textbook authors review the 10 OM strategy decisions and briefly describe how Frito-Lay addresses each one For example, the company is constantly innovating with new products For quality assurance, it uses multiple inspection points both within and outside the factory, and it utilizes statistical process control The plant applies a product focus strategy, which is appropriate for a high-volume, low-variety producer As raw materials are perishable and shelf life is relatively short, plant location decisions are driven by proximity to raw materials or markets The plant has low employee turnover, driven by good benefits, respect for people, and a strong concern for safety and ergonomics Inventory levels are quite low, and inventory is turned over 200 times per year Potatoes are delivered 10 times per day Schedules are driven by demand forecasts and adjusted for local events, such as the annual Daytona 500 auto race All of these practices, along with excellent layout, supply-chain, and maintenance policies, have helped to make Frito-Lay the world’s largest snack manufacturer
Hard Rock Cafe: Operations Management in Services
Hard Rock is interesting because it’s so much more than just a restaurant Management speaks about its “experience strategy,” which, in addition to quality food, includes rock-and-roll memorabilia, music, lighting, jovial staff, and a retail store The video is sprinkled with scenes of happy employees dancing around or volunteering in the community Most of the video is spent covering how Hard Rock Cafe approaches some of the 10 operations management decisions For example, (1) scheduling is driven by forecasts that are based on prior sales, seasonality, recent trends, and current local events; (2) cafe layout focuses on maximizing the customer experience and driving customers toward revenue-generating activities; and (3) inventory management goes well beyond the inventory of food and retail items—Hard Rock has a $40 million inventory of rock-and-roll memorabilia to manage, and each restaurant goes through a complete changeover of memorabilia every 5-7 years
Writing Requirements (APA format)
· 2-3 pages (approx 300 words per page), not including title page or references page
· 1-inch margins
· Double spaced
· 12-point Times New Roman font
· Title page with topic and name of student
· References page (minimum of 2 resources)