The diagram elements illustrate in an interrelated system. If one component of the cycle experiences difficulty then there will be proceeding effects. For instance, difficulties with purchasing will impact production and service, and control.
It helps to think of a business as a system, the various components are interrelated and organic nevertheless if one component is out of sync then the entire business suffers. For example, the methods used in food production and those used in food and beverage service must be carried out taking account of, the customer, the business environment, the nature of demand being met, and approaches to quality management.
Equally, any review of the performance of the operation, must review operational decisions in context of the business environment and the sectors trends.
To clarify customer service dissatisfaction might be traced back to step 2 formulation of policy and step 3 Interpretation of demand i.e. employees lack the knowledge to delivery and customer requirements are not being met for example a coffee shop offers fine dining product/service when the customer expects a cup of coffee and a slice of cake.