Operations management concentrates on managing process. Operations management will concern about the cost of ingredients, labour requirements and customer satisfaction.
Capacity, Quality, Queuing and Variability were the main objects of operations management. Capacity dealt with managing the inventories and identifying the number of customers that may turn-up and is one of the primary challenges. Identifying the supply and demand helps in managing the inventories and the stocks. Quality is subjective and is difficult to define. The competition in the market became fierce in the recent days.
Queuing is another important facet which deals with the Opportunity costs because inefficient Queue management may trouble the customer and make him leave. This will impact the Customer Lifetime Value that he might contribute to Starbucks Variability is the variety produced and the challenge is to identify, which products perform best and worst.
