10 Om Desicions Areas

The operations management decision areas include the goods and services design, which are to explain the goods and services that are offered in a business and also state how the are products designed. Defines much of the transformation process. Cost, quality, and human resource decisions are often determined by design decision. Design usually determines the lower limits of cost and upper limit of quality.

 Goods: In economics a good is something that is intended to satisfy some want or needs of the consumers and thus has economic utility.

 Goods may increase or decrease their utility directly or indirectly and may have marginal utility and goods are capable of being physically delivered.

At the Hexagon theatre coffee shop located in the University of Kwa-Zulu Natal Pietermaritzburg campus (Commerce buildings, Golf road), we attained a lot of information about their operations by means of observing from their business. They are offering a variety of goods, which are only final and fast-food products that are ready for consumption; they are not used for another production process. The Hexagon theatre coffee shop offer product to all students on campus because they sell food to students from different cultures and also different religions e.g. Rasta’s do not eat meet so they provide them with vegetable food. They maintain to satisfy all students because they cater for everyone.

Products they offer:

Coffee/Tea

Cakes (all sorts)

Burgers (chicken and beef)

Pies (all flavor’s)

Samosas

Sandwiches

Sausage rolls

Drinks/energy drinks

Fruits

Fried chips

Snacks

When designing their product, they use modular design technique e.g. when making burgers they purchase the burgers (meat) from the butcher and purchase buns from the bakery and other raw material needed to make a complete burger, but for some other products they use other techniques. They do not make the production components themselves but they buy it from other raw material suppliers. The purchase...