Importance Of Three E's Analysis Of Operations Management

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a) Using evidence from the facility, explain the importance of 3’s. In today’s competitive era, it is necessary to implement the concepts of economy, efficiency and effectiveness to a company operations management. However, holding right balance in the implementation of these three E’s permits an organization to be more flexible and helps it to respond quicker to the current and future challenges. Thereby, three E’s analysis is very significant to the Mr. Winggz eatery as this tool is used for determining the health of operation management of the restaurant. Each of these three E’s proves very efficient in the improvement of overall quality of production. Therefore, three E’s characterizes an organization and they determine the robustness…show more content…
Economy basically defines doing things in the possible cheaper way by focusing on cutting the costs. Such as by focusing on reducing costs of items of the restaurant with required quality of items and for this different measures are to be carried out for cutting the unnecessary cost. Through cutting the unnecessary cost a good amount of money is saved to the restaurant. Economy is measured by looking at the cost of the resources consumed and the value of output delivered. Aside by this, efficiency is a concept which relates to doing things as smoothly as possible and reflects a smarter way a company can accomplish several operations. It differentiates between the products and services of a company to its main competitors that leads effective competitive advantages of a company. Thereby, efficiency by a company is shown when the total defects are removed from the production process. The restaurant should inspect all employees’ tasks and check…show more content…
Winggz eatery focuses on decreasing the overall cost of the company. But, on the other hand both efficiency and effectiveness elements put attention on the quality management of production process of the restaurant. The Mr. Winggz restaurant focuses on both cost and quality but sometimes it creates tightness for production process which has some negative impact on restaurant. At the time of cost minimization operation planning comprises the low investment in the latest technologies and uses the existing machinery and equipment because it helps in minimizing the complete cost of technological investment. But, on other hand it lowers the quality of items and services of the restaurant because of the deprived and old-fashioned technology equipment. In contrast when restaurant focuses on the quality improvement than operation financial and operation planning includes high investment of financial resources in latest technological equipment because it is necessary to follow the market trends of food industry. But, it has negative impact on the budget and future cash flow of the restaurant because it increases the total cost of the items and services. Therefore, tension between cost minimization and quality maximization has negative impact on

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