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Operation Management of KFC

Sep 22,21

Operation Management of KFC

Question:

Discuss About The Operation Management of Kentucky Fried Chicken

Answer:

Introduction

Kentucky Fried Chicken (“KFC”) represents the America based fast food form of restaurant chain that is headquartered at Louisville in Kentucky which specialises for fried chicken. KFC represents a restaurant chain that is second-largest at the global level in terms of total sales and ranks only next to McDonald’s (KFC, 2021). KFC has presence in locations totalling to about ~22,000 across the globe spanning 150 different nations according to data that is recently available. KFC was initially established by an individual named Colonel Harland Sanders and this individual is an entrepreneur who had started sale of fried chicken at Corbin in Kentucky as a roadside restaurant at the time of Great Depression era (KFC, 2021). In effect, Sanders had identified significant potential in franchising concept of restaurants and his initial franchise named “Kentucky Fried Chicken” was opened at Utah during 1952. Over the years, KFC was popularised chicken across fast-food industry, entailing the diversification of market in the manner of challenging conventional dominance by hamburger as widely preferred fast food. The original product of KFC is the chicken pieces that are pressure fried and seasoned with recipe comprising many different herbs as well as spices as an original concoction by Sander’s (KFC, 2021). These constituents of recipe continue to be trade secret.

Customer Analysis

KFC serves and addresses needs of wide-ranging consumers and targets consumer groups like families, teenagers as well as children. KFC offers its customers by way of wide-ranging optioning for choosing from. In effect, KFC has at all times been the order winner in the manner of striving to effectively strengthen varied aspects of order qualifying (Bhattacharya, 2014). The order qualifiers shall mean basic set of characteristics in that products or else service need to possess for the purposes of being considered at the level of consumers with respect to purchases. In effect consumers demands as well as value with respect to money, that is, product has to be acceptable and reasonable. Later on, quality is crucial, they shall judge brand in accordance to product quality that is offered from the concerned provider. Further, speed represents another key criteria to consumers whilst judging, as they need to offer quicker service as well as delivery with respect to products. In addition, they consider the overall dependability with respect to products by of, irrespective of product matching specified set of requirements (Bhattacharya, 2014).

The key objectives of KFC with respect to its customers shall include the following: [1] minimising the product cost, and KFC shall realise the same by way of making the process to become efficient and same shall require significant amount of investments, [2] maintaining the overall quality pertaining to product. With respect to the same, KFC has in place a highly detailed program for quality management that shall make sure the company can meets all of the standards that are required with respect to hygienic food, [3] For ensuring KFC shall deliver products in a quicker manner. As has been mentioned, KFC had undertaken reduction in the delivery time to the extent of 50 per cent by way of designing effective forms of assembly line, facility layout as well as by way of continuously improving, and [4] KFC has at all times in place dependable and in this manner has the ability for meeting specifications that are specified with respect to the consumers (Bhattacharya, 2014).

Analysis of Operation Management at KFC

KFC employs varied tools as well as techniques for determining optimum levels of selection with respect to the location, like that of the methodology of factor rating, profit-volume analyses as well as transportation and the simulation related modelling. In effect, KFC maintains many different factors while undertaking design of the facility (Uddin, 2020).

The same include the following: [1] KFC makes sure that the overall proximity pertaining to the consumers such that these consumers could be approached earlier. The same is reason for which KFC had opened many different locations across numerous city. KFC understands the same to be highly critical for reminding the consumers with respect to the store and brand presence (Uddin, 2020), [2] KFC shall at all times select favourable locations in terms of the outlets for the restaurant such that the location aids in increased levels of sales. KFC shall ensure that each of its outlets shall be located across main road and in this manner the footfall shall rise (Puleka et al., 2018), [3] As they operate in the market that is highly competitive as well as saturated, KFC shall be required in keeping the prices to be low. With respect to the same, KFC chooses locations which shall be available for lower costs. Every form of decisions taken by KFC shall aid in keeping price levels for their products to be lower, and [4] KFC shall locate their respective outlets wherein suitable forms of infrastructure shall be available, and wherein there shall be abundance with respect to skilled labour. The same could lead to reduction in labour costs as they shall be available easily and an easier access for stores to the consumers shall be possible (Puleka et al., 2018).

Most of the stores with KFC branding can be noted to be franchised and the same reduces the maintenance related efforts. Further, KFC shall just undertake regular form of quality checks for making sure that each of these required standards shall be adhered to (Kanyan et al., 2016). The decisions pertaining to facility layout undertaken by KFC shall lead to the influencing by way of volume concerning production, overall fragility pertaining to the products, overall nature concerning services that are provided as well as costs which are needed for building the required operations area. Further, the outlets of KFC shall be brightly lit, by way of attractive form of colour schemes as well as seating arrangement that is ergonomic/ comfortable as well as staff who are warm and also welcoming (Kanyan et al., 2016). KFC employs quicker as well as suitable form of cooking process and also delivers service that is superior making it to be desirable amongst its consumers. The effective form of layout at KFC essentially aids them by way of easier supervision and smoother coordination, and the same results in high levels of flexibility as well as efficiency. The same in addition leads to reduction in bottlenecks as well as reduction in the costs for materials handling (Kanyan et al., 2016).

Conclusion & Recommendations

KFC has made heavy investments already to maintaining its facilities to be efficient and advanced across its operations as well as assembly line. KFC has the ability for serving the customers in a continuous manner by way of fast food that is of best quality and at pricing that is reasonable. Hence, the sole suggestion which shall be made herein shall be that, KFC shall continue to strive to undertake various improvements. KFC shall employ scientific form of approach to undertake decision making, hence reduction of chances for facing errors. In this context, based on discussion and analysis undertaken, it is concluded that KFC is already employing best practices, and hence KFC needs to continue in undertaking this hard work, commitment and initiatives for maintaining the strong form of competitive position across the various market.

References

Bhattacharya, S. (2014). Operations Management. PHI Learning Pvt. Ltd.

Kanyan, A., Ngana, L., & Voon, B. H. (2016). Improving the service operations of fast-food restaurants. Procedia-Social and Behavioral Sciences, 224, 190-198.

KFC. (2021). KFC. Retrieved from:
https://www.kfc.com/?georedirect=false

Puleka, D., Kakade, D., & Pulekar, N. (2018). Comparative analysis of training and development practices in fast food segment–McDonalds and KFC. International Journal of Advance and Innovative Research, 5(3), 174-191.

Uddin, S. M. (2020). Operational strategies and management of KFC: An enquiry. EPRA International Journal of Research and Development (IJRD), 5(4), 172-179.