MANUFACTURING MANAGEMENT

CASE STUDY 1&2

NAME-ABHISHEK PUROHIT SECTION A PRN NO-11021021004

Case study 1. INTRODUCTION

Pizza Hut is famous all over the world for long times ago. Dan and Frank Carney established it in the year 1958. It seems become familiar to many people, especially busy people. Here is a convergence of the famous dishes Pizza Hut brand such as: seafood Pizza, sausage Pizza, ham Pizza. Besides, there are pasta dishes, rice, salad, dessert and ice cream is made quite eye catching and delicious will make you feel good. Furthermore, Pizza Hut is famous because it meets the need of customers by up dating the menu everyday and also gives many new dishes. In addiction, Pizza Hut is a friendly service attitude and comfort to children and restaurant facilities are designed in the style family. There are also have menu of nutritious for children. Moreover, all of children come to Pizza Hut also receive a special gift bag including a coloring book and crayon pen. The prices are focus to the Pizza Hut brand and the brands objective is provides quality meals and a simple price the same as fast food outlets.

ELEMENTS OF OPERATIONS STRATEGY

There are two types of product design: custom product and standard product. Products of Pizza Hut are standard products. At the beginning, this restaurant is only concentrated on Pizza products. One year later, Pizza Hut was incorporated and opened new franchise in Topeka, Kansas. After that, it continued to develop the size of business with more than 100 units. Until now, Pizza Hut becomes one of famous restaurants in the world. They developed their business outside of America by opening units in Europe, Australia, AsiaBesides that, Pizza is delivered fast to customers when you order products by phone. What is more, Pizza Hut used acquiring strategy to decrease production costs.

TYPE OF PRODUCTION AND SYSTEM FOLLOWED

THE CHALLENGE A dozen dierent system vendors were approached, with 67shortlisted by the end of 2002. This hi ghlighted two main contenders: a system already used by Pizza Hut and KFC chains in the USA; an d the Restaurant Enterprise Solution from MICROSFidelio. "Initially, neither product specically met t he needs of our business," commented Julian O'Neill, Director, Business Process and IT, Pizza Hut, (U K) Ltd. "Our feeling, after some pretty stringent testing, was that MICROS had the capability to develo p what we needed more quickly and robustly. Their system tted the UK scenario better." An accoun tant by training, O'Neillcame to his current post following a number of roles within the business, most r ecently that of director of planning. In the middle of 2003, a MICROS system was installed at the busy Pi zza Hut restaurant in the Lakeside Shopping Centre in Essex, with a home delivery store likewise equipp ed by November that year. These trials proved that MICROS could suit the business and were extend ed to a regional group of 11 stores by early 2004. Operator feedback highlighted the need for bespok e enhancements, which were progressively developed by MICROSFIDELIO alongside further expansio n of the system to both home delivery stores and table service restaurants. By August 2005, all company owned home delivery stores had a MICROS system as well as all 70 of the new Pizza Huts opened during 2005, both companyowned and franchised. Instore systems comprise a network of Point of Sale terminals for order entry, optimized for speed of use and suggestive upselling; a series of Kitche n Display monitors to manage order preparation in the kitchen, a sophisticated cash and dispatch displa y for controlling dispatch of orders for delivery including driver selection, order batching and route plann ing plus the abovestore control and reporting infrastructure providing enterprise business intelligen ce to corporate, regional and store managers.

SYSTEM BENEFITS
According to the restaurant benets fall into two key areas: nancial and operational. "Firstly, the System has helped drive u p revenue by increasing average guest ticket," . "That has happened particularly thanks to the intuiti ve nature of the system and the way it leads sta through the selling process, in addition to the abilit y to incentivize individual team members through the use of detailed employee performance repor ting." The previous POS system had a relatively unresponsive greenon black screen and required several keys to be pressed when registering orders. Now, operators can quickly suggest deals as soon as custom ers specify order components, with the crisp color graphics of the MICROS screen helping progress tran sactions speedily and agging up strategic information. For example, a typical home delivery meal fo r four costing around rs1200oers the opportunity to "bump" customers up to rs1000 by bringing in ext ras which enhance perceived value. "MICROS supports sta in a contemporary and user friendly way, putting a lot more intelligence behind the selling process," . He estimates average incre ase in guest check at around 1 to 2 per cent. Speed is also a vital component in successful pizza sales, b oth in the restaurants where diners have the option to order from the menu or selfserve from buet c ounters and at home delivery stores, where a few minutes either side of the 30 minutes order fulllmen t period can crucially inuence customer satisfaction and repeat business. Delivery stores apply various specialist technologies such as IVR (integrated voice recognition and CLI (customer lookup)) to deal with customer orders as responsively as possible, for example, by calling up previous purchase history and ad dress details. The MICROS system integrates seamlessly with the delivery ordering process, linking it w ith in store communication. Once customer orders are nalized on one of the frontof house terminals, they are fed electronically to a kitchen display terminal above the Make Table where pizzas are topped prior to cooking. This terminal also generates a ticket identifying the order. Once coo ked, pizzas and other orders pass to the Cut Table which also has a kitchen display terminal. This in turn produces a receipt ticket to identify the cooked food priorto being boxed for home delivery ortake out. Similar systems control the production ow through restaurant kitchens. Behind the scenes, t he MICROS system is allowing better sales and product forecasting, enabling sta in both restaur ants and home delivery stores to predict more accurately how many pizzas they need to defrost and pr oof prior to service. The MICROS system also has a staging process which enables kitchen sta at rest aurants to automatically progress orders through the kitchen in the most ecient way. This allow s all the items which make up an order to be completed in exactly the same time frame, preserving go od quality and increasing guest satisfaction. Pizza Hut's menu is simpler than at, say, the TGI Friday's c hain, which uses a similar system. "But staging denitely aids quality by applying systematic controls," . Thus, when everyone on a table orders starters, the system can space out the pizzamaking process acco rdingly rather than oor sta needing to tell the kitchen verbally to hold the pizza for a few minutes.

LABOR SCHEDULING
Backing up its benets in customer service and production control, the MICROS system has been found to make a signicant contribution to more ecient labor scheduling, particularly at delivery stores. At a typical unit, peak time stang amounts to 5to6 people doing a combination of jobs fr om answering the phones to making the pizza, pot washing and delivering. Some crosstraining is practi ced but the "all hands on deck" scenario has the potential for labor wastage before and after peaks. The MICROS system, through its forecasting capability and automatic generation of sta requirements, h elps managers overlap shifts more eectively, bringing in extra people at dierent points in the demand curve. "These tools are now so much more advanced," "Store and area managers can almost in real time monitor how sales are trending and how sta are being allocated,". "One direct res ult is more ecient labor deployment. Which has improved by 34% in trial stores"

MANAGEMENT CONTROL
The system installed at each Pizza Hut delivery outlet, restaurant and area managers oce includes passwordcontrolled access to an enterprise information portal, mym icros.net. This contentrich and secure Internet portal enables area and store managers and sta costs, with realtimer reports obtained via a Web browser at any time. This enables ,managers to react immedi ately to any emerging issues and run their operations more eectively. Several MICROS applications ca n be used standalone in both restaurants or delivery units, irrespective of whether they have con verted to MICROS or still use an older POS system. Electronic ordering from food suppliers, All nof oods (cleaning, disposables, stationery, etc) come through King. "The ordering process is now much more operatorfriendly, "Rather than receiving a phone call from the distributor and placing an order over the phone, store personnel can now do things in their own time, going into thei r system whenever convenient and placing an order for delivery at some future point." A system com ponent called myinventory is also being progressively introduced across the chain. "It allows muc h more detailed management decision making and much increased transparency of what is happen ing with stocks food and consumables in every store," was pointed out. "So we can really start to understand, in a very detailed manner, what is happening with our cos t of sales as well as get better visibility of what is happening across the business." One other layer of e conomic benet experienced with the MICROS system is lower hardware maintenance costs. MICROS utilizes Microsoft CE .NET Operating System for all order entry terminals and kitchen display monito rs, running on their solid state hardware devices. These diskless, fanless devices are highly reliable andav e a 33% lower initial purchase costs when compared with competitive oerings, as well as signicantly r educed maintenance costs.

STAFF TRAINING
Bringing in a new system across such a large chain requires cohesive training. Pizza Hut UK applies a "cascade" system. Managers and deputy managers undergo two days' osite training in the MICROS til l system and in the internet based mymicros.net above store reporting application, with the remaid er of the training conducted instore by the management team.favorably on the intuitive design of the M ICROS system. "It has made the training of team members far simpler than it ever was before. In fact, th ere have been cases of team members teaching themselves."

CONTINOUS ENHANCEMENT
The introduction of the MICROS 3700 system at Pizza Hut over the past three years has involved a contin uous process of bespoke enhancement, from detailed hardware adjustments such as screen position ing to fundamental operational updates such as Cash and Dispatch. The ability to customize has been ve ry signicant and owes a lot, to the relationship established and maintained with MICROS Fidelio. ""We have gained a lot from their support and their product has evolved dramatically with our input. It's become vastly moreadvanced and powerful the leading edge of POS systems. MICROS Syst ems Inc. provides enterprise applications for the hospitality and retail industries worldwide. Over 200, 000 MICROS systems are currently installed in table and quick service restaurantsand retail operation s in more than 130 countries, and on all seven continents.

Types of Service Operations Quasi-manufacturing

When you go to Pizza Huts restaurant, you are going to order food and wait about fifteen to twenty minutes to have your meals. The waiters will take your order and go to the kitchen. Then, the chief bakes your pizza here. We call this place back-room operation where the restaurant make their products and bring them to customers in a short time.

Customer-as-participant
it means that the customers are going to take part in your service operation. In Pizza Huts, they put a small booth, which has got many kinds of salad. If you want to eat these salads, you will pay money. Then, the servers bring a plate or bow to you. You have to go the booth, choose salad and get them by yourself. This is the type of service operation.

Customers as product
Pizza Hut used three different methods to sell their products directly to market. The first method of distribution used by Pizza Hut is delivery. Customers can call service to order then they will bring to their house and they can come to pizza restaurant to have luch. Pizza Hut is one of the biggest competitive advantage is the basis the style restaurant, one more thing is when they come to restaurant pizza they can take salad and sandwiches by themselves. Next methods is online ordering, and customer can go in the internet then order products, this methods is really useful because it allows customers see all the menu.

CONCLUSION
Generally, Pizza Hut is one of the best chains of fast food restaurants in the world. They can attain declining profit in mid of 1990s. Until now it is still the first choose of customers who want to eat outside their homes. We realize that their operation strategy is good. Even though, they encounter some difficulties, they know how to solve these problems. The size of their business is more and more to be opened and upgraded. However, if they manage too many units, they will encounter disadvantages of operation. They are going to lose the control over quality and production. We think that they must pay more attention to overcome this matter.

Case study 2..

How do customers judge the quality of a supermarket? ANSWER: The customers judge the quality of a supermarket from different aspects and in varied ways. They judge a supermarket in terms of their own wants necessities and how they feel when they are in the supermarket. On my own mind, most of the customers will judge the quality of a supermarket in the following ways:

1) There are many different kinds of goods meeting different needs of the customers .It means that the supermarket should keep a wide range of products so that customers can pick and choose from them. They will go to the supermarket directly when they want to buy something in one stop because they are sure that they can get all the goods with 100 percentages there and need not go to different markets to buy all the good they need.

2) The quality of the customer service that they receive in the store also plays a important role. Customers will feel comfortable whey then do shopping in the supermarket by providing wonderful service and they will be satisfied with the behavior of the supermarket.

3) Competitive price: a supermarket who can provide cheaper Price with same products will won the customers believe and attract more customers come here.

4) Quality of the merchandise: the most of the customers are willing to buy products with high quality and competitive price.

2. Indicate how and why each of these factors is important to the successful operation of a supermarket:

(a) Customer satisfaction. Customer is king satisfied but delighted by offering the products and services that he desires.Customer loyalty is crucial for the very survival of the supermarket as profitability is a function of customer satisfaction.A single happy and satisfied customer can create a lot of customers for a supermarket by the sheer word of mouth marketing.

(b) forecasting The store should forecast correctly what are going to be the fast moving items for the coming month/ fortnight and shall plan for the merchandise availability accordingly.

Forecasting helps a supermarket maintain optimum inventory levels. It reduces company s inventory holding costs and also saves it from the situation of a stock out, which may annoy the customers.Sales forecast would help a supermarket plan its finances well.Forecast with respect to the festivals, weather conditions and changing taste and preferences of customers would help a supermarket plan its merchandise accordingly and will also provide it with a competitive edge over its competitors.

(c) location
Accessibility to the customer.Before finalising the location of a supermarket it must be seen what the level of competition in the local area is. If already two or three stores are operating in that locality it might not be a wise move to open a store on such locations.A supermarket must analyse how much rent it would require to pay and whether the business would be generated in the same proportion.Stock can be easily transferred from the warehouse to the store.Cultural and local sentiments of the customers need to be taken note of by the management of a superstore and therefore location of the superstore becomes important.

(d)Inventory management:
- It makes sure that the store is carrying the optimum level of inventory and so there would be a minimal inventory holding cost. At the same time,there wont be issues like a stock out.It enables a supermarket to plan its sales operation well. Also the supermarket can source the merchandise at the least possible price and at good quality levels..

(e)layout of the store:

- Layout should be customer friendly so that they can easily locate different departments/ sections within a supermarket Proper allocation of space can be done to different department/ sections.Proper lighting arrangements can be done in the store.Visual merchandising aspects of the over-all layout of the store must betaken seriously as many customers get attracted by it.Fire exits and emergency exit gates can be earmarked properly.

(f)Scheduling:
- HR scheduling will be necessary for the store so that it can be made sure that enough customer care staffs are available during the store operations.Employee work scheduling will make sure that during peak hours when there is maximum foot fall in the supermarket, staffs can be made available in adequate numbers.HR scheduling makes sure that employees are not over burdened and their productivity levels can be increased by such measures.transport scheduling to plan in advance when the trucks are going to come into the superstore and what merchandise they are going to bring in.If there is an item which a store needs urgently, rescheduling of trucks can be done.- Inventory scheduling to plan the floor space in advantage

(g)Capacity planning:
To know how much stock can be maintained in the supermarket.To plan the floor area allocation to different departments and product categories depending upon the customer s demand for different products.To make sure that there exists a comfortable ratio of sales staff per customer in every department.

Capacity planning also helps in managing the peak hour rush in the store and parking.