Healthy Foods is a restaurant that is located in the centre of Hana Town. It provides a variety of delicious food that customers can choose from. Competition is very intense in this area of town so, Healthy Foods has to ensure that its customers are provided with excellent products that are superior to those of competitors. The production, marketing, finance and human resource departments work together to ensure that this objective is achieved. The operations manager is aware of the level of competition and knows that he has to make sound decisions to ensure that customers are satisfied with the final output. These decisions include:- 1. Design of goods and services 2. Managing quality 3. Process and capacity strategy: 4. Location strategy 5. Layout strategy 6. Human resources and job design 7. Supply chain management 8. Inventory management 9. Scheduling 10. Maintenance Although the restaurant does not have a written mission statement, its main aim is to provide a healthy alternative for its customers. The OM manager has to ensure that effective strategies are put in place to achieve the mission. In order to ensure that the correct strategies are put in place, he must ensure that the proper process is followed. Although competition is intense in the town area, healthy foods is doing well. When the market saturates, management would have to expand its operation overseas. Sales for the last 12 months can be seen in the table below. MGMT2026 Production and Operations Management 3 No Months Sales(No of lunches served) 1 January 300 2 February 350 3 March 420 4 April 460 5 May 510 6 June 530 7 July 590 8 August 620 9 September 660 10 October 715 11 November 790 12 December 820 13 January The Operations Manager, use these sales figures to forecast sales for future periods so that he can plan properly for resources etc. QUESTIONS 1. Write a mission statement for Healthy Foods. 2. Explain how you will go about formulating strategies for Healthy Foods Restaurant. 3. In relation to this case, briefly describe the five (5) OM decisions that must be made at Healthy Foods Restaurant.
Healthy Foods is a restaurant that is located in the centre of Hana Town. It provides a variety of
delicious food that customers can choose from. Competition is very intense in this area of town
so, Healthy Foods has to ensure that its customers are provided with excellent products that
are superior to those of competitors. The production, marketing, finance and human resource
departments work together to ensure that this objective is achieved. The operations manager
is aware of the level of competition and knows that he has to make sound decisions to ensure
that customers are satisfied with the final output. These decisions include:-
1. Design of goods and services
2. Managing quality
3. Process and capacity strategy:
4. Location strategy
5. Layout strategy
6. Human resources and job design
7. Supply chain management
8. Inventory management
9. Scheduling
10. Maintenance
Although the restaurant does not have a written mission statement, its main aim is to provide a
healthy alternative for its customers. The OM manager has to ensure that effective strategies
are put in place to achieve the mission. In order to ensure that the correct strategies are put in
place, he must ensure that the proper process is followed. Although competition is intense in
the town area, healthy foods is doing well. When the market saturates, management would
have to expand its operation overseas. Sales for the last 12 months can be seen in the table
below.
MGMT2026 Production and Operations Management
3
No Months Sales(No of lunches served)
1 January 300
2 February 350
3 March 420
4 April 460
5 May 510
6 June 530
7 July 590
8 August 620
9 September 660
10 October 715
11 November 790
12 December 820
13 January
The Operations Manager, use these sales figures to
can plan properly for resources etc.
QUESTIONS
1. Write a mission statement for Healthy Foods.
2. Explain how you will go about formulating strategies for Healthy Foods Restaurant.
3. In relation to this case, briefly describe the five (5) OM decisions that must be made at
Healthy Foods Restaurant.
4. Which international operations strategy should the restaurant adapt if it intends to
cross borders?
5. Select 2 competitive priorities and discuss how Healthy Foods can use these competitive
priorities to compete.
6. With the aid of a well labelled diagram, describe the transformation process at the
restaurant.
7. How can the principles of scientific management be applied at the restaurant if the OM
manager wants to increase productivity?
8. Using a three-month moving average, forecast sales for next January (month 13).
9. If forecast for January (month 1) is 320 lunches, with an alpha of 0.4, use exponential
smoothing to forecast sales for January (month 13)
10. Would you consider Healthy Foods to be a service facility or a manufacturing facility,
why?
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