Submitted to: Khan Muhammad Saqiful Alam (Sqi) Lecturer, School of Business, North South University
Submitted by: Name ID# Asif Rahman Sohan 0930610030 Tasmia Zakariah 1010266030 Md. Ashiqur Rahman Chowdhury 1120408030 Ashraful Alam 1120708030 Mohammad Hasanur Rahaman 1130436030
Date of Submission: 19 th April, 2014
Executive Summary
We have analyzed the existing operations of Clove Restaurant in order to find out how they are performing. From our analysis, we have figured out the reasons which are leading to inefficiencies in the performance of Clove Restaurant. There is decline of their sales because they could not retain customer satisfaction. The findings from polar diagram states that Clove has very low dependability, low speed and low service quality which are causing problems. The three process maps for three different processes also suggest that the operation of Clove Restaurant is not efficient. The suppliers often take time to deliver the ordered materials because of transportation issues. The food preparation process is also very time-consuming. Finding rotten items and screening out the materials is sometimes a time consuming activity while it is time for cooking. On the other hand, the billing system of Clove Restaurant is not effective as it is a manual system rather than automated billing system. So, we have come with various solutions for the existing operations problems of Clove Restaurants. They can improve their speed by training their employees which will also improve service quality and thus will lead to increase in customer dependability. Suppliers can be given order from one week before so that they can arrange the transport facility beforehand and deliver materials in a short period of time. Clove can improve their process by screening out the raw materials before they store it in inventory. Also, they can prepare the bill using an automated system such as computer and they should start to prepare the bill while the customer is having their food; which will ultimately save customers time and thus customer will be satisfied.
Contents Introduction ..................................................................................... 1 Background ...................................................................................... 1 Operations Analysis ......................................................................... 2 V Diagram ..................................................................................... 2 Improved Polar Map ........................................................................ 3 Existing Process Maps ..................................................................... 4 Material Purchasing Process from Supplier ................................... 4 Food Preparation Process ................................................................. 5 Customer Order Process .................................................................. 6 Improved Process Maps ................................................................... 7 Material purchasing process from supplier .................................... 7 Food Preparation Process .............................................................. 8 Customer Order Process in Clove Restaurant ................................ 9 Fish Bone Diagram ..................................................................... 10 Single Minute Exchange of Die (SMED) .................................... 10 Benchmarking ............................................................................. 11 Recommendations .......................................................................... 12
Page 1
Introduction
We have observed the existing operations of Clove Restaurant and then we have analyzed the performance of the operations and tried to apply the concepts we have learned in our Operations Management course to improve the existing performance of Clove Restaurant. Thus, our main objective was to analyze the current operations of Clove Restaurant and also to come up with improvements for the operations. We have focused on mainly three of the main functions of Clove Restaurant such as food preparation process, materials purchase from supplier, customer order process. For improvement of these functions, we have also drawn three improved process diagrams for three particular processes. Our study for this report could have been slightly better if could have more access to information. We did not have enough data as Clove Restaurants website was not working for couple of months. Besides, the manager of the Clove Restaurant with whom we had discussions was not willing to share much information for confidential reasons.
Background For our report, we have chosen a restaurant named as Clove Restaurant located at Bashundhara Residential Area. We have chosen this restaurant because we had sufficient information about the internal operation of this restaurant. Clove is one of the old restaurants in Bashundhara area so there was high chance of getting the fast mover advantage. Instead they were unsuccessful and are still lagging behind from their competitors such as Boomers, Wok & Cook, Shawarma House, FFC. This restaurant is running inefficiently which provides us with the opportunity to identify the problems in their operations. We have focused on mainly three of the processes of Clove Restaurant: food preparation process, material purchasing process from supplier, customer order process.
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Operations Analysis V Diagram Volume Low High
Variety High Low
Variation High Low
Visibility High Low
3.2 Polar Map
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Improved Polar Map
By analyzing the Product Life Cycle (PLC) of Clove restaurant we have found that the restaurant falls in the early growth stage. The rate of growth of Clove restaurant is relatively slow compared to those of its competitors such as FFC, Boomers, Shawarma house, Wok & Cook, etc. As Clove is in the growth stage the PLC suggests that Clove should improve their Speed, Quality and Dependability for making their restaurant more successful in the upcoming years.
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Existing Process Maps Material Purchasing Process from Supplier
N
Y
Check availability of materials Place orders for shortage materials Supplier receive the order Supplier manage ordered product Supplier arrange transport facilities for delivery Cloves staff receives ordered materials Match the product with order slip Take the raw materials to inventory and store it perfectly
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Food Preparation Process
N
Y
N
Y Collect materials from storehouse/inventory Clean and cut stuffs as required Properly cleaned or not? Take specific amounts of items/ingredients Turn on the oven/cooker, and start to cook/boil food items Mix spices and other ingredients if required Check whether properly cooked or not Keep cooking Put the oven/cooker off and decorate dish and serve Find rotten items and throw out
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Customer Order Process
N N
Y Y
Welcome the customer Give the food menu Customer gives the order Order Available? Ask for alternate orders? Request customer to wait Waiter serves the ordered food Customer waits and waiter prepares the bill Customer pays the bill and then leaves Waiter says sorry for the inconvenience
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Improved Process Maps
Material purchasing process from supplier
N
Y
Check availability and place orders for shortage materials
Supplier receive the order Supplier manage ordered product and facilitate transport Cloves staff receives ordered materials Match the product with order slip
After screening, store the perfect raw materials
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Food Preparation Process
Collect perfect raw materials from inventory Clean and cut stuffs as required Take specific amounts of materials, mix spices and other ingredients Turn on the oven/cooker and start to cook/boil food items Strict monitoring and recheck the taste and textures by Chef and his assistants Turn the oven/cooker off and decorate dish and serve
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Customer Order Process in Clove Restaurant
Welcome the Customer Waiter gives the menu to customer then tells about the items available Customer gives the order Waiter requests customer to wait Waiter serves the ordered food and then prepares the invoice As customer finishes the meal, waiter presents the bill Customer pays the bill and then leaves
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Improvement tools and techniques
Fish Bone Diagram
Single Minute Exchange of Die (SMED)
SMED is applicable for Cloves bill payment process. During our observations we have found that the waiter asked the manager to prepare the bill while the customers finish their meal. Making the bill according to the customers order is an internal factor for the Clove restaurant. So, the waiter can prepare the bill when customers are having their meal. If a customer wants to add any food item later they can easily adjust it by adding the price of
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that item with the total bill. This will help the restaurant to fulfill more orders of customers and efficient time management of the company.
Benchmarking For improving the service quality and customer dependability we have chosen Boomers restaurant as a benchmark. Thus, we are undertaking competitive benchmarking. We have chosen Boomers Caf as both Boomers Caf and Clove Restaurant falls in the same category of food business, so it has higher relevance. Moreover, the reason for choosing this restaurant is because this restaurant has several branches in Dhaka city and most of the branches have performed decently. Unlike Clove Restaurant, Boomers Caf has been able to built customer dependability through quality service. So by following or setting the standards at par with Boomers, Clove can see how they are performing compared to Boomers and where they need to make further improvements.
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Recommendations
From the outcome of the operational analysis, we have developed some of the recommendations for Clove Restaurant:
The polar diagram showed that Clove Restaurant has lower dependability, medium service quality and lower speed. Training the employees will help Clove Restaurant to improve their employees skills as they will be able to deliver food in a relatively quicker time. Delivering the food in a quicker time will also improve their quality of service. If the quality of service improves, then customer can depend more on Clove Restaurant. This will ultimately increase dependability as the customers will feel they are getting value for their money.
We have also identified three major processes of Clove Restaurant which suggests that those three processes are time-consuming and should be improved. For instance, to deliver food to the customers in a quicker time Clove can store some semi-processed food. Moreover, they can prepare the bill when the customer is having their meal as this will eliminate the waiting time of the customer.
As Clove is one of the old restaurants in Bashundhara Residential Area still they have not been able to establish a very good brand image. So, we have recommended that they can set one of their competitors as benchmark such as Boomers Caf and can try to measure their performance with those standards of its competitors.