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Introduction
Operations ManagementOperation is that part of an organization, which is concerned with the transformation of a
range of inputs into the required output (services) having the requisite quality level.
Management is the process, which combines and transforms various resources used in the
operations subsystem of the organization into value added services in a controlled manner as
per the policies of the organization. The set of interrelated management activities, which are
involved in manufacturing certain products, is called as production management. If the same
concept is extended to services management, then the corresponding set of management
activities is called as operations management.

The operations managers have the prime responsibility for processing inputs into outputs.
They must bring together under production plan that effectively uses the materials, capacity
and knowledge available in the production facility. Given a demand on the system work must
be scheduled and controlled to produce goods and/or services required. Control must be
exercised over such parameters such as costs, quality and inventory levels. The definition of
the operations Management contains following keywords: Resources, Systems,
transformation and Value addition Activities.

Resources are the human, material and capital inputs to the production process. Human
resources are the key assets of an organisation. As the technology advances, a large
proportion of human input is in planning and controlling activities. By using the intellectual
capabilities of people, managers can multiply the value of their employees into by many
times. Material resources are the physical facilities and materials such as plant equipment,
inventories and supplies. These are the major assets of an organisation. Capital in the form of
stock, bonds, and/or taxes and contributions is a vital asset. Capital is a store of value, which
is used to regulate the flow of the other resources.

The ability of any system to achieve its objective depends on its design and its control.
System design is a predetermined arrangement of components. It establishes the relationships
that must exist between inputs, transformation activities and outputs in order to achieve the
system objectives. With the most structured design, there will be less planning and decisionmaking in the operations of the system. System control consists of all actions necessary to
ensure that activities conform to preconceived plans or goals. It involves following four
essential elements:
1. Measurement by an accurate sensory device.
2. Feedback of information in a timely manner.
3. Comparison with standards such as time and cost standards.
4. Corrective actions by someone with the authority and ability to correct.

A closed loop control system can automatically function on the basis of data from within its
own system.

Operations Management Objectives

Customer Services
The first objective of operating systems is to utilize resources for the satisfaction of customer
wants. Therefore, customer service is a key objective of operations management. The
operating system must provide something to a specification, which can satisfy the customer
in terms of cost and timing. Thus, providing the right thing at a right price at the right time
can satisfy primary objective.

Resource Utilization:
Another major objective of operating systems is to utilize resources for the satisfaction of
customer wants effectively. Customer service must be provided with the achievement of
effective operations through efficient use of resources. Inefficient use of resources or
inadequate customer service leads to commercial failure of an operating system. Operations
management is concerned essentially with the utilisation of resources, i.e. obtaining
maximum effect from resources or minimising their loss, underutilisation or waste. The
extent of the utilisation of the resources potential might be expressed in terms of the
proportion of available time used or occupied, space utilisation, levels of activity, etc. Each
measure indicates the extent to which the potential or capacity of such resources is utilised.
This is referred as the objective of resource utilisation. Operations management is concerned
with the achievement of both satisfactory customer service and resource utilisation. An
improvement in one will often give rise to deterioration in the other. Often both cannot be
maximized, and hence a satisfactory performance must be achieved on both objectives. All
the activities of operations management must be tackled with these two objectives in
Operations Management Concepts 13 mind, and because of this conflict, operations
managers will face many of the problems. Hence, operations managers must attempt to
balance these basic objectives. The twin objectives of operations management. The type of
balance established both between and within these basic objectives will be influenced by
market considerations, competitions, the strengths and weaknesses of the organization, etc.
Hence, the operations managers should make a contribution when these objectives are set.

Ten Critical Decision of Operations Management

Goods and services: This includes looking for ways to implement consistency in
costs, quality, and resources across all business divisions.

Quality Management: Be clear on the customers demands and then meet those
expectations. Use market research to determine customer needs and batch quality assurance
testing on products and services in production.

Design of Product & Services: Design strategies which support all production goals
including technology and resources. A value stream map can help determine what processes
are necessary and how to keep them running efficiently.

Location: In developing a location strategy consider supply chain and how the
location will receive supplies, the movement of goods and services internally and to
customers, and the role of marketing and public relations in the location choice.

Layout Design and Strategy: Consider the placement of desks, workstations, and
how materials are delivered and used.

Human Resources and Job Design: Implement continuous improvement programs

with regular reviews, provide continuous training for employees, and institute employee
satisfaction programs to achieve success in this area.

Supply Chain Management: Determine the best strategies to streamline, be cost

effective, and to develop trusted partners.

Inventory: Different markets mean different challenges when it comes to inventory

but all need to strategize and plan their inventory control. Weather, supply shortages, and
labour all influence how an organization maintains its inventory.

Scheduling: Consider both production and people. Ask questions such as how much
product is required to be produced for the customer in the required time? How many people
and how many machines are required to do the job effectively and efficiently? This differs
among industries and business departments. For example, emergency rooms need to maintain
different schedules than a hospitals corporate office.

Maintenance: This includes maintaining people and machines, as well as, process.
What do you need to do to maintain quality and keep resources reliable and stable?
These 10 areas can be applied to any size business. Use them as a guide to analyse your
operations. Measure your current productivity and then implement strategies to operationalize
these 10 areas into your decision making process and watch your productivity become more
efficient.

Sanjha Chullah

About Us
In the field of hospitality industry, Mr. Hardeep Singh Padam along with his better half
initiated the idea of serving taste of Punjabi cuisine to the city of Nagpur. Sanjha Chullah
opened its door in June 1994 and since then it has been 21years that Sanjha Chullah is
serving authentic Punjabi food to the craving bellies of Nagpurians. Over the period of time
Sanjha Chullah has grown to serve the multiple need of time like state of the art banquet
services, private dining lounge, corporate bar, home delivery and the much known Sanjha
Chullah family restaurant. Lip smacking dishes such as tandoori chicken, paneer tikka
masala, kadhai chicken, butter chicken, handi dum biryani are just a few delicacies from the
wide menu that Sanjha Chullah has to offer to its guests. Mr.Padam says, I serve good food
and bring a smile on my customers face. This is what I am good at and people tend to like
it. His heir Mr. Mandeep Singh Padam has completed his education in the field of hotel
management from IHM. He is young and has a dynamic personality with a vision to expand
and lots of reputation to keep up to which his father has earned. He is always ready to cook
all by himself and serve his guests at all times. He tries his level best to be available for his
guests even on shortest possible notice. The young Singh has gained a lot of attention from
the youth and loyal food lovers of Sanjha Chullah.

Customers Response on Sanjha Chullahs Service

We took the survey of about 20 people who visited the restaurant.
Q1. On what basis do you select a restaurant when you go out?
Location 25%

Taste 50%
Cuisine & Pricing 10%
Ambience & Service 15%

Q2. Did you like the ambience (layout) of Sanjha Chullah?

Yes 65% No 35%

Q3. How do you rate the service of Sanjha Chullah?

1 10%
2 15%
3 55%
4 15%
5 5%

Q4. Is location (Sadar), an important factor in selecting Sanjha Chullah?

Ans.

Yes 80%

No 20%

Q5. What are your views on price as compared to other restaurant?

Ans.

Nominal 75%

Overpriced 25%

Q6. Do you have anything to say about your experiences at Sanjha Chullah?
Review- 1. The service is a little slow, it can be quick.
Review- 2. It have a great interior and a rich ambience which feel good.
Review- 3. Poor crowd management but otherwise they have adequate service.
Review- 4. Variety of cuisine is better than other Punjabi restaurants and food is good.

 Sanjha Chullah reviews on ZOMATO :--

Analysis of Operation Management Decisions w.r.t to Sanjha Chullah

Location:It is one of the crucial factor which decides the fate of the business of any kind. So a very
specific study and extensive research is required to select the location. So following points
are the ones which should be taken care of:-

a) Style of operationIs your operation going to be formal and elegant? Or kicked-back and casual? Your location
should be consistent with your particular style and image. If your business is retailing, do you
want a traditional store, or would you like to try operating from a kiosk (or booth) in a mall or
a cart that you can move to various locations?
b) Demographics.
There are two important angles to the issue of demographics. First, consider who your
customers are and how important their proximity to your location is. For a retailer and some
service providers, this is critical; for other types of businesses, it might not be as important.
The demographic profile you have of your target market will help you make this decision.
Then take a look at the community. If your customer base is local, does a sufficient
percentage of that population match your customer profile to support your business? Does the
community have a stable economic base that will provide a healthy environment for your
business? Be cautious when considering communities that are largely dependent on a
particular industry for their economy; a downturn could be bad for business.
Now think about your work force. What skills do you need, and are people with those talents
available? Does the community have the resources to serve their needs? Is there sufficient
housing in the appropriate price range? Will your employees find the schools, recreational
opportunities, culture, and other aspects of the community satisfactory?

Customers

Events; 9%
Bar Goers; 16%
Couples; 23%

Families; 52%

c) Foot traffic.
For most retail businesses, foot traffic is extremely important. You dont want to be tucked
away in a corner where shoppers are likely to bypass you, and even the best retail areas have
dead spots. By contrast, if your business requires confidentiality, you may not want to be
located in a high-traffic area. Monitor the traffic outside a potential location at different times
of the day and on different days of the week to make sure the volume of pedestrian traffic
meets your needs.

d) Accessibility and parking.

Consider how accessible the facility will be for everyone who'll be using itcustomers,
employees, and suppliers. If youre on a busy street, how easy is it for cars to get in and out
of your parking lot? Is the facility accessible to people with disabilities? What sort of
deliveries are you likely to receive, and will your suppliers be able to easily and efficiently
get materials to your business? Small-package couriers need to get in and out quickly;
trucking companies need adequate roads and loading docks if youre going to be receiving
freight on pallets.
Find out about the days and hours of service and access to locations youre considering. Are
the heating and cooling systems left on or turned off at night and on weekends? If youre
inside an office building, are there periods when exterior doors are locked and, if so, can you
have keys? A beautiful office building at a great price is a lousy deal if you plan to work
weekends but the building is closed on weekendsor they allow you access, but the air
conditioning and heat are turned off so you roast in the summer and freeze in the winter.
Be sure theres ample convenient parking for both customers and employees. As with foot
traffic, take the time to monitor the facility at various times and days to see how the demand
for parking fluctuates. Also make sure the parking lot is well-maintained and adequately
lighted.
e) Competition.
Are competing companies located nearby? Sometimes thats good, such as in industries
where comparison shopping is popular. You may also catch the overflow from existing
businesses, particularly if youre located in a restaurant and entertainment area. But if a
nearby competitor is only going to make your marketing job tougher, look elsewhere.

f) Proximity to other businesses and services.

Take a look at what other businesses and services are in the vicinity from two key
perspectives. First, see if you can benefit from nearby businessesby the customer traffic
they generatebecause those companies and their employees could become your customers,
or because it may be convenient and efficient for you to be their customer.
Second, look at how they'll enrich the quality of your company as a workplace. Does the
vicinity have an adequate selection of restaurants so your employees have places to go for
lunch? Is there a nearby day-care center for employees with children? Are other shops and
services you and your employees might want conveniently located?
g) Image and history of the site.
What does this address say about your company? Particularly if youre targeting a local
market, be sure your location accurately reflects the image you want to project. Its also a
good idea to check out the history of the site. Consider how it's evolved over the years.
Ask about previous tenants. If youre opening a restaurant where five restaurants have failed,
you may be starting off with an insurmountable handicapeither because theres something
wrong with the location or because the public will assume your business will go the way of
the previous tenants. If several types of businesses have been there and failed, do some
research to find out whyyou need to confirm whether the problem was with the businesses
or the location. That previous occupants have been wildly successful is certainly a good sign,
but temper that with information on what type of businesses they were compared to yours.
h) Ordinances.
Find out if any ordinances or zoning restrictions could affect your business in any way. Check
for the specific location youre considering as well as neighboring propertiesyou probably
dont want a liquor store opening up next to your day-care center.

i) The buildings infrastructure.

Many older buildings don't have the necessary infrastructure to support the high-tech needs of
contemporary operations. Make sure the building has adequate electrical, air conditioning,
and telecommunications service to meet your present and future needs. It's a good idea to hire
an independent engineer to check this out for you so you're sure to have an objective
evaluation.

j) Utilities and other costs.

Rent composes the major portion of your ongoing facilities expense, but consider extras such
as utilitiestheyre included in some leases but not in others. If theyre not included, ask the
utility company for a summary of the previous years usage and billing for the site. Also find
out what kind of security deposits the various utility providers require so you can develop an
accurate move-in budget; however, you may not need a deposit if you have an established
payment record with the company.
If you have to provide your own janitorial service, what will it cost? What are insurance rates
for the area? Do you have to pay extra for parking? Consider all your location-related
expenses, and factor them into your decision.

Design of Product and Services:This includes looking for ways to implement consistency in cost, quality, and resources
across all the business divisions.
What goods or services should we offer?
How should we design these products or services?
So looking to this question what comes into play is strategic positioning of a restaurant:
One of the most important factors of Sanjha Chullah restaurant was the development of the
menu. Menu what they told was very tricky task because they priced items so that they can
operate profitably and can get the targeted guests a good price value relationship

Peoples preference for

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

46%
27%
13%

14%

To offer a good price value relationship to customers and operate profitably they looked at the
following factors:
What the market will be bear?
They had analyzed the demographics (income, population, age and etc.) of the market to
determine their concept, menu and pricing is correct.
So they have priced like which can be affordable to middle-class people who want an
upmarket experience and can have experience of that with this restaurant.
What is their target market?
They understood their target market and developed price of menu according to that. They
have created an experience on the basis of affordability and therefore will appeal to a broad
base of customers.
What are their competitors charging and offering?
They had compare menu prices with dear potential market competitors that is Ashoka, Moti
Mahal, Barbecue, and Zinc.
What they have done is simply perform the market research by visiting the competitors and
took note of their menu prices.
Now what they did is analyze the competitors pricing analysis and tested on reasonable is to
give best value to their customers.

Pricing:Setting your menu prices is a pivotal decision for your restaurant. Pricing is a task that needs
to be periodically revisited to respond to changes in the industry, fluctuating market prices
and the mood of customers. Setting prices involves considering many factors, including the

cost of food, cost of labor, what the competition is doing and what your target customers are
willing to pay.

Food Costs
Food costs are one of the first considerations that go into restaurant pricing. This is simply
what it costs to procure the ingredients used in a dish. There is a reason why steak and lobster
tend to cost considerably more on a restaurant's menu than items like french fries or green
salads. The cost of purchasing these ingredients is much higher. Buying very high quality,
local, organic or sustainable ingredients can boost pricing as well. Break down the costs of
the ingredients that go into each dish and use this as a base for setting your menu pricing.
Keep in mind that there are more factors involved with pricing.
Sanjha Chullah
(in rupees)

Ashoka
(in rupees)

Difference
(in rupees)

Paneer Tikka

200

350

150

Chicken Tikka

240

400

160

Paneer
Butter 240
Masala
Butter Chicken
500

350

110

600

100

Budweiser beer

300

105

195

Other Costs
Other expenses that need to be calculated into a restaurant's pricing strategy include labor,
rent, supplies, and equipment and marketing costs. If your dishes require a highly trained
cooking staff with generous salaries, that will factor into your menu pricing. Quick heat and
reserve items that don't have a substantial labor investment may be less. Ultimately, the
money brought in from your menu items will also pay for your location, energy use, staff,
equipment and marketing. Look at the big picture and adjust pricing as necessary to generate
enough profit to cover your overhead.

Market Changes
Food prices can fluctuate substantially. A natural disaster can drive up the cost of seafood.
Poor growing seasons can affect the price of certain fruits and vegetables. Consider building
some flexibility into your menu pricing to accommodate changes in the market. High-end
seafood at a formal restaurant can be priced on a day-by-day basis depending on what it cost
to bring them in fresh that day. Take the time to add a note of explanation for your customers
when you have to adjust menu pricing in reaction to market changes.

Customer Base
Know who your customers are. If you are a quick-service restaurant, you may cater to a
younger audience that doesn't have a lot of discretionary funds. If you have a formal fine
dining restaurant, you may cater to older customers with more open pocketbooks. Consider
the people you are targeting when setting menu pricing. This reflects the image of your
restaurant and can play a role in bringing in repeat customers. Customers at all levels want to
feel like they are receiving good value for their money. Keep an eye on how pricing changes
affect your customers. Surveys can be a good way to keep your finger on the pulse of your
customers' attitudes toward your business.

Competition
Restaurants are often up against stiff competition to attract the same customers. Do some
reconnaissance work to see what your competition is charging for similar menu items. You
may not always have to beat their prices. You may make up for pricing differences by
offering better customer service, higher quality ingredients or a more engaging dining
atmosphere. Look for ways to set yourself apart from the competition. Pricing can be a big
part of that strategy.

Layout
A successful restaurant will need a good design and layout plan. In fact, the output of the
layout plans can definitely affect the success of the restaurant.
People often go to a new restaurant and they think to themselves they should have put that
plant elsewhere, it obstructs the good view or I wish they hadnt put too much light in
here. These are small things which can really add up and end up influencing the customers
to go to the other side of the street where another restaurant is calling out to their taste buds.
Here are the 4 things to consider:

Density of Customers
The layout plan should be based mostly on the comfort of the patrons. Even fast food
restaurants consider the density of people, especially in peak hours, even though it may seem
that these restaurants become too crowded during lunch time.

For formal dining restaurants which cater to the upper class income, it may be wise to
provide more space between the tables since these restaurants dont really rely on the number
of people per day.
Their revenues depend on the pricing of the food items. There should be more provision for
eye candy such as furniture and art works.

Style of Service
The layout and floor plans should also be based on the type of service that the restaurant will
give.
Fast food restaurants and self-service restaurants would need less distance between the tables
since the food wont be served there.
For other restaurants which provide table service, the space between the tables is very
important so as to prevent too much clutter from happening in a specific part of the
restaurant.

Type of Building
The layout plan is restricted by the type of structure where the restaurant will be built. You
should be able to take into consideration all the different curves and the minor details in the
structure before proceeding.

Lighting
Proper lighting is very important for every restaurant. The lighting should be able to match
the mood and the type of service of the restaurant. A relaxed atmosphere can be
complemented by bright lighting while serene and serious moods can be accompanied by
subtler shades.
Displayed in the carousel below (for your information) are the most successful design and
layout plans and strategies available.

Sanjha Chullah caters to all kinds of situational demands. They have 1500 sq.ft area for bar

 2500 sq.ft area for banquet hall/lounge

750 sq.ft area for private seating space
2500 sq.ft area for restaurant
There are a few design constraints when one designs a floor layout of the restaurant. One
need to take into consideration that for any kind of service, common area such as walkways,
storage cabinets etc. should also be accounted for. Keeping these in mind, Sanjha Chullah
designs their floor plan according to the following constraints (the figures are for a table to
seat 4 people)
Fine dining 7*7ft
Casual seating 4*5ft
That is the minimum per unit allocation of the total floor space available

Maintenance:Maintenance the maintenance of your equipment and facilities is just as important to your
guests experience as the quality of your ingredients. Its also just as important to your bottom
line. According to a recent survey by an industry association, chains who have set up
formalized processes, technology, and people in place to manage repairs spend 50 percent
less than the industry average.
You need to set up a proper maintenance program. So what are its components? Here's a list
of four general components every maintenance program should have.
The first component is reactive maintenance workflow. What happens when a repair is
needed? Who needs to know? Where do you track the information? Will you hire a contractor
to make the repair, or is there someone in-house who will do it? Who makes cost decisions?
Second, you need to set up a preventive and routine maintenance program. Third is the
tracking system. This can be anything from a spread sheet to a work order management tool.
Whatever you decide to use, you should have a full list of the equipment and assets at your
locationincluding each unit's manufacturer, model, serial number, and warranty
information, as well as its number of repairs, the date of those repairs, the cost of those
repairs, and any notes and communication regarding the repairs. A proper tracking system
will be able to show you what's going on in each of your locations, as well as each location's
history. Finally, you need to have pre-qualified contractors. It does not matter whether you
have in-house people who can make repairs or not. There will come a time when you'll find
yourself in a pinch, and you will need a go-to list of repair companies you can count on to
get your equipment or facility up and running.
There is one more option for maintenance management. You can outsource it completely.
Your restaurant chain may be too large to manage a maintenance program with operations or
store management employees, but not large enough to support a full-time facilities
maintenance professional. There are companies who specialize in outsourced maintenance
management for this reason. They are already set up with all the components of a proper
maintenance program, including a contractor network. This option will help you since it
eliminates the time necessary to set up your own maintenance program the right way.