operation management assignment on pizza hut

Operations Management of Pizza Hut – Analysis Essay

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Introduction

Product development, process design, planning and control, forecasting, providing customer with experience, quality assurance.

Pizza Hut is a subsidiary of YUM brand and forms the largest restaurant chain in the world in terms of sales revenue and assets (Pizza Hut, n.d, p.1). The brand differentiates from its competitors through three major areas namely performance, quality and as the best place of employment. The restaurant operation is the face of the organization. The distinct role of operations is to be possessed with the quality of pizzas and the experience that customers receive.

These operations are defined by the different concepts in Pizza Hut including full service restaurants, home service restaurants, restaurant based delivery, express units and franchise outlets. The operations at Pizza hut cannot be highlighted for any single functional unit but is the collection of many sets of activities carried out within the units and bring success by turning customer expectations into reality. Pizza Hut operations work to the CHAMPS policies like cleanliness, hospitality, accuracy, maintenance, product and speed.

These policies become the key drivers of operations excellence into the business. Despite the feasibility of such operation policies, the capability of the operations manager to deal with the issues faced during implementation is the key success factor. Therefore, this paper presents the key strategic and operational issues faced by the operations managers in Pizza hut.

According to Hill and Hill (2011), product design is involved with the conversion of ideas into reality (p.28). Pizza Hut has to design, develop and introduce new pizzas as a survival and growth strategy. Designing and developing new products is the biggest issue faced by the operations managers in many organizations including Pizza Hut.

The whole process needs identification to manufacturers of physical products which involves three functions namely product development, manufacturing and marketing.

Product development transforms the needs of customers into technical specifications alongside designing the different features into the products. Manufacturing is responsible for the selection of the process through which the product can be realized. Product design and development links customer needs and expectation to the activities needed to produce the product.

In response to this, Pizza hut operations managers have the role of ensuring the survival and growth of the business through effective product design and development. Indeed, the success of the company is not a matter of detached activities but rather it is the restless efforts of the company to put innovation into realities by transforming customer wants and needs into the shape of products. This is achieved through product development team that runs focus group to research on the customer behaviors towards pizza choices.

Sometime, products are launched after conducting selected research of the chosen customer sample yet it fails to survive in the market. This usually causes occurrence of unexpected costs or wastages in the stores. For example, cheese bread, the four for all pizza, Indian pizza and Bombay wings are the failed products that led to unnecessary costs.

However, Pizza hut has also launched successful products. For example, cheese bite pizza offered has caused an increase of 24% in pizza sales revenue (Pizza Hut, n.d, p.2). Maintaining such a legacy would require the operations managers to spearhead strategic initiatives that enhance innovation capability of the company.

Process design refers to the concept of operations management that deals with macroscopic decision making of the whole process route for transforming raw materials into finished products. These decisions entail the selection of the production process, choosing the right technology, and analyzing the process flow.

Therefore, the important decisions in Pizza hut’s process design are to analyze the workflow for transforming raw materials into final products and selecting the work station for each individual included in the work flow. The design process is a major operations issue as it determines the costs as a result of wasted materials and labor.

During the preparation process, all things that will help to perform the operations in the store are prepared. This process involves activities such as defrosting of dough, cheese and starters. Failure to put the following day operations up to the mark, it then becomes difficult or shortage of items occur delaying the conversion process.

Operations managers have the obligation of ensuring that the preparations are done on the basis of the business forecasts of the next day. Failure to prepare the forecasted goods for the following day operations, it becomes virtually difficult for the following shift manager to oversee the business operations.

The make table is another step that is worth manager’s consideration during the process design. This refers to making orders that are received from customers and appear on the micros system (Pizza Hut, n.d, p.2).

The managers need to determine when there are collection customers, otherwise order work on first-in-first-out (FIFO) system (collection time is 10-15 minutes while delivery time is 30-35 minutes). At Pizza hut, getting ready the make table is an important part of operations.

The right proportion of ingredients, sauces, condiments and products are prepared as specified. Operations managers must consider vitally that the make table elements character, freshness, aroma and taste are veracious and kept at right conditions.

The cut table is also a worthy step in ensuring minimal wastage and the associated costs. The operations managers ensure that the pizzas are cut according to the customer check as well as pouching them accordingly. More important is to ensure that the pouched order goes with the right customer check otherwise the flow of the cut table is broken down and may cause the mistake of the target customer.

Finally, dispatching is another critical procedure that requires the attention of the operations managers. This is tricky and important work especially when more orders have been placed and produced but the drivers are few. The geographic area is usually subdivided into zones according to the postcodes and the customer order deliveries with address and postcode.

Therefore, the operations managers’ keenness is to dispatch the orders that can be delivered in masses in order to save time and effort. Although, the time taken to deliver an order to a customer is usually less than 30 minutes, the managers can influence the speed by adjusting the number of works according to peak and off-peak hours.

As Mahadevan (2010) suggests, forecasting is a major consideration for operations management during the planning stage of operations (p.16). Forecasting the expected demand is the foundation for every operational activity in a business unit. Through this all factors get into touch with planning, organizing and controlling of the operational activities.

Eventually, this will lead to the total production of the business unit. Derek Waller (2003) is a famous management scholar and connotes that forecasting product and demand is the most essential activity for any business organization (pp.261-262). It is an imperative aspect to successfully push forward the business on set objectives until the point of efficiency is realized.

Similarly, forecasting at Pizza hut is a crucial item for the business success. Before operations manager develops a plan for human resource allocation or food checking, they must consider the forecast of sales as well as the anticipated upcoming event in the period. Resource allocation for the usual shifts works well in Pizza hut in relation to the plans but other external factors may influence the speed and service delivery. For instance, bad weather conditions and road hazards in the form of accidents and blockades can slow service ability.

In addition, unexpected orders can increase the demand for products while the availability of ready-made products may be inadequate according to the stipulated demand for the shift. Hence, the variation in the stipulated demand and the actual demand may cause the shortage of products and eventually make customers to feel dissatisfied with the service.

Good weather and special occasions such as sports, festivals and rituals can increase the demand. Given that all these variations relate to Pizza hut operations, it is the role of the managers to ensure minimal impact on the business through short-term strategies that adjust production consistent with the demand changes.

Behind any business, customer care is the central point of concentration and should be treated with due respect. Most important is to discover the ways through which the customer needs and wants can be fulfilled. This begins from the top managers whereby they set procedures and policies that ensure proper interaction with customers (Bozarth & Handfield, 2008, p.5).

Customers do not look for a relationship in given brand but they rather want to be respected, understood and get their products when they want them. Thus, operational activities are best positioned to give customers the good experience and reassurance they want. So when the operation department facilitates the experience needed, the opportunity to develop necessary relationship follows.

Pizza hut sell pizzas in a market where other competitors are doing the same. Therefore, it is very important for the company to be differentiated against the competitors in order to ensure sustainable growth. The values and attitudes make important differentiations while operation policies and the quality of pizzas are key factors (Say et al, 2003).

In order to attain the desired outcomes, operations managers in Pizza hut must enhance the beneficial interaction between the team members and customers. One way of achieving this is to equip the order takers with essential skills as they form the link between the business and the customer. The other way is to ensure that the products are produced with the highest quality through the use of appropriate production gears and developing the skills of the individuals involved.

Quality control can be defined as the method used by the operations management to maintain the desired level of quality in products. It can also be considered as the systematic control of different factors that leverage the quality of a product. For physical products, the aim is to prevent defects at the source while relying on an effective feedback system and corrective actions.

Quality control can also refer to the management method through which product of uniform quality is produced. This means that there should be the whole collection of operation activities which ensure the production of optimum quality products and services at minimum costs.

The aim of any business unit at Pizza hut is to achieve the complete operational polices practices. It is expected that optimal strength should be utilized into production process to get the maximum outcomes and maintain 100 percent product quality standard. This implies that all production activities should be timely and accurate.

In addition, quality without waste is the principle behind inventory levels and timing systems in the restaurant. Failure to follow the principle leads to the discrepancy of operations that eventually affect the quality of products and customer satisfaction.

In that perspective, the operations managers in Pizza hut have the obligation to ensure that the teams meet the desired quality. Therefore, throughout the supply chain the quality lies with the overall team. This must then be achieved if the managers set rigorous policies during product development.

One way through which the managers have ensured standards is by regular monitoring and auditing of the production system. Quality is checked through CHAMPS Excellence Review while quality assurance is attained by monitoring the complaints as well as corrections through available corrective methods.

Pizza hut have established several operation policies yet the operation managers are faced with many issues that requires professional and strategic responses to enhance the overall performance of the business. Right from the conception of an operational activity, the key point to consider is the wants and needs of the customers and thus the managers effectively influence the operation in that focus.

Bozarth, C. C. & Handfield, R. B. 2008. Introduction to operations and supply chain management. Upper Saddle River, NY: Pearson Prentice Hall.

Hill, A. & Hill, T. 2011. Essential operations management . Hampshire, UK: Palgrave Macmillan.

Mahadevan, B. 2010. Operations Management: Theory and Practice . New Delhi, India: Pearson Education India.

Pizza Hut. n.d. System makeover re-energizes Pizza giant’s sales and productivity . Web.

Say, M. et al. 2003. The Importance of the Customer Experience. Admap Magazine , Issue 440.

Waller, D. L. 2003. Operations Management A supply Chain Approach . Farmington Hills, MA: Thompson Learning.

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Pizza Hut Inc. Operations Management Essay Example

Pizza hut inc. operations management analysis and strategy.

Pizza Hut is a restaurant chain that was established in 1958 by Carney brothers. Dan and Frank Carney, at the time, were university students at the Wichita State University (Schweig, 2007). To start the business, Dan and Frank loaned US$ 600 from their mother. They appropriated this money to their startup capital (Aamoth, 2014). Pizza Hut has experienced rapid growth, becoming an internationally recognized brand. It is a fully owned subsidiary of Yum! Brands Inc. Currently, Pizza Hut is ranked as the world’s leading restaurant chain. It is also the largest employer since it hired more than 160,000 employees around the globe. Its average annual revenue is about US$ 12 billion (Pizza Hut, 2015). In 2013, the company owned upwards of 6000 stores in the US alone (Pizza Hut, 2015). Its5139 stores were further distributed across 94 countries (Pizza Hut, 2015). Pizza Hut’s mission is to bring more flavors to its customers’ lives. This popular restaurant chain aims to provide more pizza with as many varieties as possible. Its main promise to its customers is that as long as they remain its consumers, they will get flavorful experiences (Pizza Hut, 2015).

I visited and analyzed a Pizza Hut store located in New York, 22003 Hillside Avenue, to conduct operations management analysis. Operations standards of Pizza Hut are the same across the board regardless of where the store is located around the globe. The insights and recommendations given in this analysis are representative; therefore, they should be applied in all of its stores. Hopefully, the analysis will guide the company in the right direction to eradicate its operational challenges and leverage its opportunities to optimize profitability.

Key Products

Pizza Hut is a restaurant company. As such, all its key products are foodstuffs. However, it specializes in baking high quality pizza (Aamoth, 2014). This international company makes a wide variety of pizzas with different types of crust, crust flavors, and sizes. For instance, there is a thick crust golden pizza, which is thick as the name suggests. There is also a thin and crispy variant alongside the family size standard pizza (Pizza Hut, 2015). Apart from these traditional pizzas, Pizza Hut also offers customized pizza for its clients if they make orders with explicit specifications (Pizza Hut, 2015). Some of these orders have been adopted as pizza brands, including Cheesy Crust and Philadelphia Crust. Thus, the main peculiarity of Pizza Hut is that it is an innovative company, which is frequently inventing and experimenting with new specialty pies. The varieties that do not gain popularity among consumers are discontinued. Apart from pizzas, the company also offers a host of Italian-themed dishes. The decision to include elements from Italian cuisine is connected with its diversification strategies to hedge against the risk of competition posed by its most direct competitors, such as Pizza Express (Aamoth, 2014). The competition started in order for restaurant chains to diversify their products and gain market share. Pizza Hut had to do the same to adapt to changing environment or else it would have been phased out of the market. Thus, other key products of this company include toasted sandwiches, penne pasta, garlic breads, fresh salads, and a wide range of desserts (Pizza Hut, 2015). Recently, the company has also introduced and expanded its barbecue and cheese bread products. Therefore, the chain has diversified its products and has expanded its target market in the process. At the start, Pizza Hut baked and sold pizza only. The types and flavors were also limited. However, as the company expands and the resources increase, it has been able to spread its key products to meet more customers, as well as increase its market share and profitability.

Design of Goods and Services

Optimal design of goods and services can reduce the cost of production and enhance the quality of products. Four approaches, which include the moment of truth, modularization, delayed customization and automation, can be used to analyze the design of goods and services.

Moment of Truth

The moment of truth, as an operation management concept, refers to the instance when the customer and the seller come into contact (Heizer & Render, 2013). The experiences of the customers must be enhanced in order for them to form a favorable opinion about the organization and be persuaded to utilize the seller’s products or services. If a client uses its service for the first time, the moment of truth helps the prospective customer to form an opinion about the company. If consumer chooses the restaurant chain not for the first time, the moment of truth helps to reinforce the positive experiences or recover from the negative ones.

This is how a customer interacts with personnel of Pizza Hut store at the 22003 Hillside Avenue. When customers arrive, they are met with a large colorful Pizza Hut board, displaying the name and logo of the company at the entrance. There is also a white, red and black-themed decoration inside the store. The shopping process starts with making an order via a touch screen table (Aamoth, 2014). There are counter staff who are responsible for addressing the customers’ questions. All the available products as well as their prices are explicitly indicated on counter display. If the customer intends to buy take-away products that are ready for consumption, such as cheese bread, they can pick a chosen foodstuff and present it to the checkout counter for billing. If the customer wants to order a pizza and wait for it, they can make an order at the touch screen table. The customers who want to dine in have to wait at the dining area. When leaving, a client should use a single checkout counter with five registers to pay for the ordered food.

Recommendation

The store employs most of the best practices in food retail industry. However, as the world continuously shifts towards organic food, Pizza Hut should place the ingredients lists and origin lists for organic-conscious customers. Currently, this restaurant chain does not provide an origin list even though it implicitly provides calories and ingredients lists by specifying the flavors and some basic commodities. The placement of those lists on the unit package will aid in decision making (Griffin, 2011). Furthermore, the store should increase the number of staff. While the world is increasingly shifting to online platforms, the pizza-eating community has been rigid. There are still many people who visit Pizza Hut to make orders, even takeout ones. Thus, there are long lines near table screens. Some of them, especially the ones using the service for the first time, face difficulties and stall the lines. Increasing the number of staff would streamline the process. This way, the staff can focus on taking orders from first-timers and teaching them to use the automated ordering system. The experienced patrons can use screen touch tables to make their orders. Lastly, since there are long lines at the checkout counter, Pizza Hut should increase the number of registers to decongest the area. Fast and efficient services would grant favorable experiences known as the moment of magic (Besley & Brigham, 2008). These moments of magic enhance customer satisfaction and convert them from experimenters to loyal Pizza Hut clients. However, increasing the number of people at the counter is only a short-term solution. The number of frequent customers is quickly increasing as well. Pizza Hut should consider opening a new branch alongside 2203 Hillside Avenue.

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Automation/Reduced Customer Interaction

Currently, Pizza Hut employs several automation strategies. The increased use of machines has reduced the interaction between the customers and Pizza Hut employees. For instance, instead of making orders directly to the staff at the counter, the customers use a touch screen table as an interface. What is more, the customers can also create profiles on Pizza Hut’s website (pizzahut.com) and then make orders. Pizza Hut also offers a mobile application that runs on iOS and Android phones (Aamoth, 2014). Customers can use it to place orders, make an electronic payment, and receive home deliveries. The implication is that the timeframe for service delivery reduces. Currently, the average time for a home delivery in New York is 30 minutes. For those who make orders and pick them at the store, the waiting time is 15 minutes. A customer can make an order while on his way to the store and arrive just in time to pick his pizza. It becomes a seamless transition, which enhances positive customer experiences and eventually turns them into loyal Pizza Hut clients. Moreover, it results in the increased customer base and subsequent profitability (Evans & Lindsay, 2012).

Pizza Hut employs the best practices of service delivery through automation. It has an automated ordering system in its stores, on the website and on mobile technology platforms. However, Pizza Hut does not have a self-checkout system. The customers pay at the counter on their way out (Aamoth, 2014). Thus, the company should introduce a self-checkout platform where the visitors can make payments even in cash. The time spent on the line waiting to pay for the products will reduce substantially, especially if several electronic points of sale are installed.

Customization is delayed

Customization of products and services is aimed at enhancing a positive customer experience and self-worth (Heizer & Render, 2013). The customers are able to experience care from the vendor by being offered a platform or opportunity to design their own products. In this instance, Pizza Hut has a platform, the touch screen table, where one can make a customized order. The customer can specify size, crust flavor, pepperoni and sauce to be added. The client can also specify whether they wish for the pizza to be sliced into pies or not, or whether the pizza should be cut into smaller square pieces or not. This way, the customer is able to control their purchases. Recommendation. While customization creates self-worth, it takes longer to make uniquely customized orders due to advanced complexity. There is a tendency to overlook making those special orders in favor of the ‘ordinary’ orders that are more quick and straightforward. The management should set up more entertainment spots for those who would have to wait longer than the normal 15 minutes. Apart from the music and television, the store should provide free Wi-Fi. Therefore, the customers can surf the Internet and avoid boredom (Schweig, 2007). A gaming area would also be a pleasant distraction. Lastly, to improve the speed of ordering, the store should offer a list of all possible types of customization. Providing a list of the flavors and types being experimented on may also predetermine improvement of a positive customer experience. One of those types and flavors may be the exact product the customer requires.

Modularization

Currently, Pizza Hut provides excellent customer services. The products are also of high quality. However, the customers’ positive experiences will be enhanced if they obtain the chance to make special deals or to make orders with unique requirements. The company has tried to solve this by allowing the customers a chance to take the ingredients and bake on their own in their homes. Recommendation. Pizza Hut should become more flexible. In as much as there is an opportunity to customize the products, the changes are not substantial. Pizza Hut should allow the customers to mix their favorite flavors according to their own wish. They should also be allowed to order pizza of any sizes they want within the realm of possibility. Such initiatives will increase customer satisfaction (Griffin, 2011).

Pizza Hut applies several standards and measures using the Total Quality Management (TQM) to guarantee that it offers high quality pizzas. For instance, it uses a timing system to ensure that the dough is of good quality (Schweig, 2007). The dough is prepared a day before its use and stored appropriately at the required temperatures. The dough has to be ready at the time of use or else it will lead to products and services deterioration. Consequently, it can cause dissatisfaction of the customers. The yeast should always be fresh. The chief chef checks it before using it. The ingredients and products are also appropriately dated using a standardized dating system. The shelf life is explicitly indicated, enabling the company to maintain a 100% quality through using fresh products (Scweig, 2007). Food temperatures are also maintained between -18 and +5 degrees centigrade to ensure it does not spoil. The supply chain is also monitored to ensure the suppliers comply with the HACCP standards (Aamoth, 2014). Consequently, Pizza Hut conducts regular audits to maintain quality along the supply chain. Obviously, a compromise on quality at the start of the supply chain will affect the quality of the final product (Heizer & Render, 2013). Finally, the employees are also trained sufficiently to be capable to handle the Total Quality Management provisions.

To ensure excellent quality of products, Pizza Hut should actively collect customer feedback (Besley & Brigham, 2008). In my analysis, I did not see any form of sourcing for customer feedback. There is a box that was labeled ‘customer complaints’. However, it is obvious at a glance that it was not being used.

• Pizza Hut should actively seek customer feedback along with customer focus. The feedback would be essential in tailoring the products and services to suit customer wants and needs.
• Secondly, the company should choose a team dedicated towards product design. The pizza sub-industry is a very competitive one. The risk of competition and substitute is very high because customer loyalty is low (Schweig, 2007). Having a professional product design team will not only eradicate internal and external costs resulting from product failures, but will also optimize the efficiency of the products (Heizer & Render, 2013). Product design, as a principle of TQM, enhances manufacturability and reliability of the resultant products.
• Thirdly, Pizza Hut should not only conduct audits of its suppliers to ensure they meet the HACCP standards, but also be one step ahead and share its quality and engineering expertise with its suppliers. The suppliers should enroll in a certification program to improve supplier quality (Griffin, 2011). Additionally, Pizza Hut should embrace a more integrative approach towards product design where the suppliers are also included in the process. Lastly, customer satisfaction should be enhanced through maintaining high standards of product quality, staff training and development, as well as product innovation.

Evidently, customer satisfaction is only achievable if the sales targets and benchmarks are complemented by competency of the staff. Product innovation and standards observation improve the quality, which, in the face of increased competition, inadvertently leads to improved customer satisfaction (Evans & Lindsay, 2012).

Process Analysis

Pizza Hut’s process analysis can best be analyzed using a process chart as opposed to time function mapping or service blueprint. Figure 2 is Pizza Hut’s process chart.

The process starts with order placement. A customer uses the touch screen table to make a specific order. Every client is prompted on whether they want their pizza delivered or collected at the store. If it is a delivery, a message will appear on the screen with a promise that delivery will be made within the next 30 minutes. If the order is a collection, the customer will receive a message inviting him to wait for 10 minutes for the order to be fulfilled.

Irrespective of whether it is a delivery or a collection, the order progresses to the order making table where it takes an average of 3 minutes to process it. The necessary ingredients and specifications are taken into consideration. There is no room for error since it can disorient consequent service provision. The order is then taken to the oven for baking, which takes an average of 6 minutes (Pizza Hut, 2015). After baking, the pizza is delivered to the cut table where it is cut according to the customer’s specification and pizza size. This takes a minute, including packaging.

If the order is a collection, a staff delivers it to the customer at the waiting bay or at the dining area. The customer can then realize the payment. If it is a delivery, the driver will be dispatched to make the delivery at the specified location. This takes an average of 15 minutes (Pizza Hut, 2015). Some delays may be experienced, depending on whether it is an off-peak or on-peak hour as this affects the availability of drivers. Traffic jams can also elongate the delivery time. However, Pizza Hut makes efforts to deliver the ordered pizza as soon as possible when there is a delay. If the customer have not made payments, they can do so when the pizza has been delivered.

Process Strategy

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The weakest link in the value process can be identified using the theory of constraints (TOC). This theory establishes that there is always a constraint that limits any system from performing at the optimal level (Heizer & Render, 2013). However, the constraint is usually not so significant. If it is significant, it has to be noticed and addressed. It continues to persist because its effects are not that apparent, but in real sense, they can be detrimental to the reputation or performance of the organization (Evans & Lindsay, 2012). According to Pizza Hut’s process analysis, we established that delivery dispatching (encircled in red, Figure 3 above) was a major constraint. This is where it has to deliver the ordered pizza to the customer’s door. However, at any moment, there are only four or five drivers at a single store. The largest stores have ten drivers during the weekends and seven during weekdays. The number of drivers is just not enough, which is inconvenient for some customers. Giving excuses for late delivery can only lead to negative perceptions and even dissatisfaction on the part of the customer (Griffin, 2011). Eventually, such customers opt for other pizza providers.

To hedge against such situations, Pizza Hut should outsource delivery to a firm that provides such services. There are many firms in New York, for instance, that run errands for other firms using bicycles, motorcycles and vans. What is more, there are car hire services such as Hertz and Zipcar that can run errands. Such firms should be contracted to make deliveries as they have the required personnel and equipment.

To facilitate this strategy, resources would be concentrated to establish a command center where all orders to be delivered will be collated. The resources that were used to facilitate the drivers will be used to contract firms that have better resources to make deliveries. Pizza Hut can then focus on baking pies. We expect that the outcome will be reduced delivery time, as these agencies cannot have shortage of drivers. Supply of Pizza Hut drivers has been a major constraint (Achweig, 2007). Outsourcing delivery services to professional delivery firms are apt since it should substantially reduce the delivery time. The implications are that the customers will not be dissatisfied due to late deliveries. On the contrary, customer satisfaction will considerably improve.

Layout Strategies

Pizza hut hillside avenue store current layout.

The layout of the Pizza Hut 22003 Hillside Avenue roughly appears as follows:

Analyzing the layout, we established several structural problems. For instance, there is only one gateway that serves as both the entrance and exit. There were only five registers at the checkout counter. These is inadequate consideration of the number of customers that frequently visit the store. What is more, there is no self-checkout point of sale where the customers can bill and pay on their own. The waiting bay is also crowded since there are many lines at the touch screen table, service area, and checkout counter. Crucially, there is no Do-It-Yourself counter where the customers can select their favorite ingredients and recipes in order to bake their own pizza in their homes. Such customers had to line up in the service area and compete with other customers who cannot use the touch screen table.

Re-Design, Efficiency and Quality

Having identified the aforementioned problems, the following diagram demonstrates the re-designed layout addressing the problems to leverage core competencies.

Re-designed layout of the store

The redesigned layout has an enlarged daily commodities area. The idea is to increase the amount of other commodities on display. These include desserts, ginger bread, fresh salads, barbecue, and pastas. Increased area of display will attract more attention (Besley & Brigham, 2008). In the previous layout, the daily commodities area was constrained to a corner, which made it improbable to notice it. What is more, the Do-It-Yourself counter has also been introduced. Those customers who do not wish to have their pizza baked at the site can select ingredients and leave in an instant without having to wait for 15 or 30 minutes. The exit was also relocated. The relocation will reduce congestion near the entrance, which is a regular phenomenon under the current layout. Furthermore, the checkout counter also shifted to the area near the exit. The dining area was reduced to accommodate the self-checkout counter. It was imperative to have the self-checkout counter to reduce the waiting time and enhance service quality and customer satisfaction (Aamoth, 2014). The dining area was also not being used optimally. There were many unused spaces. Its reduction makes use of every space available while accommodating other additional functionalities with ease.

Human Resources

Employees are the most important assets of any organization (Besley & Brigham, 2008). Ergonomics considerations ensure that employees work within their capabilities, which reduces their constraints and limits (Heizer & Render, 2013). Pizza Hut offers comprehensive medical cover to its employees and their spouses. Such provisions decrease instances of employees’ illnesses and medical-related absenteeism (Pizza Hut, 2015). Increased employee wellbeing manifests itself in an increased productivity. Furthermore, the employees are adequately remunerated. The lowest paid employees receive US$ 14 per hour, which is above the industry average (Aamoth, 2014). Sufficient remuneration increases employee motivation, which results in an advanced efficiency. Therefore, the company is able to provide its products within the stipulated time.

However, the restaurant chain should also consider increasing the shift requirements to serve at least five drivers to improve delivery efficiency. Furthermore, they should be provided with motor bikes and bicycles to maneuver the traffic jams during the evening rush. Pizza Hut should employ flexible drivers who can switch between several means of transport with ease (Schweig, 2007). Moreover, since women are dexterous, they should hire man to work at the cut table to maintain the cutting and packaging process at the estimated one minute.

Supply Chain Management

Pizza Hut has a robust supply chain monitoring technique. It exercises control over the products it obtains from suppliers. It contracts farmers and other firms to provide the major ingredients, including flour, yeast, olive oil, sugar, salt, and onions. It also buys mushrooms, pepperoni and cheese of different flavors, including Mozzarella, Parmesan and Feta, among others (Pizza Hut, 2015). As indicated in the quality management section, Pizza Hut conducts audits at the suppliers’ premises to ensure that the supply chain conveys quality from the start to the end.

The theory of comparative advantage clearly indicates that the company does not engage in any processes of the supply chain before the production part. Pizza Hut merely supervises the processes to maintain quality, but does not take part in growth and production of the ingredients (Schweig, 2007). It has specialized in production and distribution where it can leverage its core competencies. As we established in the process strategy, Pizza Hut should specialize as much as possible to optimize its core competencies. It should outsource the delivery services and focus on the resources instead in order to produce high quality pizza. The theory of comparative advantage suggests that this restaurant chain should focus on adept activities, reducing the ones that have lower opportunity costs (Heizer & Render, 2013). The resources should be directed towards setting up self-checkout counters to improve customer flow and operational efficiency inside the stores. The stores will be able to handle more orders at a time. The increase in orders will be matched and complemented with the superior delivery services from a firm that specifies in services delivery provision. The main outcomes are improved efficiency, increased customer satisfaction, loyal customer base and network, and enhanced profitability.

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Principles of Operation Management - Pizza Hut

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Understanding The Operations Management Analysis In The Essay of Pizza Hut

Jan 19, 2021

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Operations Management is the process that generally plans, controls, and supervises manufacturing and production processes and service delivery. To Know More Information Visit the Link: https://www.bookmyessay.com/operations-management-assignment/

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Operations Management is the process that generally plans, controls and supervises manufacturing and production processes and service delivery. Operations management is important in a business organization because it helps effectively manage, control and supervise goods, services and people. By reading the contents of Operations Management Assignment Help, the students can understand the principles of business

Case Study On Operation Management Of Pizza Hut • Key Products: Pizza Hut is a restaurant company. As such, all its key products are foodstuffs. However, it specializes in baking high quality pizza (2014). Apart from these traditional pizzas, Pizza Hut also offers customized pizza for its clients if they make orders with explicit specifications (Pizza Hut, 2015). You are getting this Operations Management Assignment Helpby BookMyEssay.

Design of Goods and Services: Optimal design of goods and services can reduce the cost of production and enhance the quality of products. Four approaches, which include the moment of truth, modularization, delayed customization and automation, can be used to analyze the design of goods and services.

Automation/ReducedCustomerInteraction: The increased use of machines has reduced the interaction between the customers and Pizza Hut employees. For instance, instead of making orders directly to the staff at the counter, the customers use a touch screen table as an interface. What is more, the customers can also create profiles on Pizza Hut’s website (pizzahut.com) and then make orders. Ask us to get the best assignmenthelp.

Modularization: Currently, Pizza Hut provides excellent customer services. The products are also of high quality. We are here to help you with this operations management assignment help. However, the customers’ positive experiences will be enhanced if they obtain the chance to make special deals or to make orders with unique requirements. The company has tried to solve this by allowing the customers a chance to take the ingredients and bake on their own in their homes

Quality: Pizza Hut applies several standards and measures using the Total Quality Management (TQM) to guarantee that it offers high quality pizzas. For instance, it uses a timing system to ensure that the dough is of good quality (Schweig, 2007). Students just need to pay a reasonable amount to get the operation management assignment help.

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Quality Management, Performance Management, Capacity Management, And Supply Chain Management In NZ Courier And Pizza Hut.

5,569 Words Published On: 01-03-2021

LO2. Explain quality management, and apply quality management techniques to improve operations in a given situation

Lo3. select appropriate facilities and processes to ensure efficient provision of goods and/or services.

LO4.  Discuss performance management and determine appropriate operational performance measures and controls

LO5.  Understand capacity management, apply techniques relating to resource planning, and recommend appropriate actions in a given situation

LO6.  Apply an understanding of supply chain management, inventory management, and materials management to given situations

The current report is been carried out with the intention to document and focus upon the organisation observed under field trip. It would include the information collected and facts learned about the two companies i.e. New Zealand courier and Pizza hut. Both the companies include effective supply chain operations which would be discussed in the report elaborately. The report would further evaluate the information like quality management, performance management, capacity management and supply chain management within the framework of both the companies specifically. The report would provide with the in-depth knowledge gained out of observations and learning from the field trips in New Zealand courier and Pizza hut effectively.

Quality management is an important aspect which displays the standards of any business making them influential among customers. There are 7 basic total quality management tools which could be used by the organisation to establish effective quality standards within their functionalities. Following are the tools:

• Cause and effect or fishbone diagram: This tool mainly contributes in identifying the possible causes for any problem and sorts the ideas into usable categories.
• Control charts:  This tool enables to study as how the business process changes over the time with the help of graphs (Ross, 2017, p.30-38).
• Check sheets: It is a structured form to collect and evaluate the data used for different purposes.
• Histogram: This is the most commonly used graphic representation used to show the  frequency distribution
• Scatter diagram: This includes the pairs of graphs of numerical data where one variable is placed on each axis so that to study the relationships.
• Stratification: This tool is used to separate the collected data from different sources so that to observe their patterns.
• Pareto chart : This indicates the significant factors on the bar graph (Heldman, 2018, p.10-15)

In context to the New Zealand courier which is a leading courier company having wide logistics and supply chain operations all over the region. The company makes use of effective total quality management measures to ensure smooth flow of the operations and logistic activities. The organisation utilises the check sheets tools to avail relevant information of the business procedures. It even includes the standards of ISO9001 quality management within its framework (Chen, 2017, p.55-58).

Pizza hut is a renowned food chain which operates its functionalities across the world. The organisation had included total quality management standards into its supply chain by implementing stratified quality management tool which is also known as flow chart. The tool helps in classifying the relevant data collected through different sources and then observed on the basis of their patterns specifically (Davis et al, 2018, p.55-62).  

Product and service development in an organisation plays an important role in delivering effective value proposition among the customers. It enables the businesses to acquire higher number of customer loyalty and trust over the brands specifically.

Developing products and services requires effective planning and execution of the strategies so that to deliver the best outcome. The services provided by the New Zealand courier company are developed by acquiring innovative, passionate and friendly team which results in a focused service deliveries to the end customers. The company ensures to offer responsive and individualized services so that to provide the customers with enhanced satisfaction and loyalty with the company (Xuehua, 2018, p.42-46). It has been also seen that the company acquires freights professionals backing up the entire team focused towards the effective service deliveries. The services are also provided with a web platform allowing the customers to avail the services online as well. It enables the customers to instantly access the

The food chain mainly focuses upon the customer centric approach to develop its products and services effectively. The products and services in pizza hut are developed by keeping the customer preferences and choices in minds so that to serve them with best satisfactions. Recently the brand had launched its new product range of different varieties. It even provides with the services like Pizza hut app, online ordering, call and SMS order as well so that to expand the approaches towards the customer segment. It has been also observed that the products and services are also developed by acquiring feedbacks from the customers through questionnaire and focus groups (Kim, 2017, p. 45-53).

It basically involves the customers into the design of new products and development of the business. Pizza hut includes intense focus upon both the products and services so that to engage maximum customers with the brand and sustain profitability within the market. The customers are highly prioritised in the company which also provides the business with distinct brand image and value among the customers. Moreover, the company also ensures that high quality food items are been used for the products so that to maintain higher quality standards in the business.

The Facility layout is been considered to be an important component in any of the business operations. It helps in maximising the efficiencies of the production process and meet the requirements of the employees as well. The layout designs are mainly intended towards the assurance of smooth flow of work, resources and information through a system.

The courier company acquires the facility layout design which enables their employees to work with ease and more efficiency. It had been identified that the company ensures to facilitate the employees with better working environment and layout so that to keep them motivated towards their work.  The facility layout of New Zealand Courier Company includes a 3,250m 2  storage area and package sorting area, 800m2 of office and amenities and a 925m 2  drive through canopy which provides with wide area of conduct the operational activities effectively.  It has been even observed out of the field trip that the building of the company had been designed with the purpose to accommodate business growth with moveable walls which enhances the sorting space by 330m 2 specifically (Franceschetti, Jabali and Laporte, 2017, p.413-433).

In addition to this, the office components of the facility had also underwent a complex design phase so that to incorporate all of the operational requirements of the clients. The layout design facilitates the employees with efficient workplace which motivates them to work with their best efforts. It is very important to provide the employees with healthy work environment and surrounding to achieve the set objectives. The flexible design layout also enhances the productivity of the business when required.

The facility layout of Pizza hut lies under the fast food restaurants where the customers are served with the food with either takeaway packages or self services kiosks or counters. It has been identified that the management of Pizza hut had considered many important factors while designing the layout such as colour design, lighting design, ventilation design, exterior space, material selection and the layout design of entire restaurant. The Pizza hut stores are found to be well designed to develop decorum of restaurant having sufficient space to sit and stand for the customers. The stores are designed with the attractive lighting and sitting spaces to attract the customers and make them delight. The innovative and unique design ideas makes the pizza hut outlets achieve different identity out of its competitors (Almanza et al, 2017, p. 321-335).

The location for the stores is decided upon the market segmentation and scopes for the business. It also includes franchisees with more innovative and efficient restaurants by bringing enhancements such as LED lightings, sustainable packaging, efficient kitchen equipments and even waste management approaches. The layouts highly attract the customers and contribute in the enhancement of the sales eventually.

LO4. Discuss performance management and determine appropriate operational performance measures and controls

The organization is using project management methods and operations for managing the supply chain activities more professional and efficient manner.

                                                                                              Figure 1: WBS

The manager of courier organization is following the structure for maintaining the supply chain functions as per the culture (Floricel and Piperca, 2016, p. 124-138). This kind of approach is helping to maintain the effectiveness in the working and operations.

Table 1: Scheduling of task

The every task manager or head of the department is following the scheduled time for each operation that helping to maintain the inventory and delivery of the products and services on time.

Gantt chart:

                                                                                        Figure 2: Gantt chart

The Gantt chart is offering information about interrelation with each operation and allocation of time to meet the objectives of supply chain in courier services.    

Network diagram:  

                                                                                         Figure 3: Network diagram

The network diagram of supply chain operation of courier organization is helping to understand the flow of the operations and effectiveness of the major activities for maintaining the sustainable approach.  

                                                                                                Figure 4: WBS

The Pizza hut manager is following the structure for maintaining the flow of the operation and proper consideration of resources as well as objectives of the customers (Midler, Killen, and Kock, 2016, p. 21). The structure is offering information about processing of order and final delivery to customers.   

Scheduling:

Table 2: Scheduling of task

Proper consideration of scheduled tasks for maintaining the operational effectiveness in supply chain management is helping Pizza hut in preparation and delivery of quality products to customers in proposed time (Mir, and Pinnington, 2014, p. 202-217).   

                                                                                                Figure 5: Gantt chart

Gantt chart is providing information about starting and finishing time of each task that followed by Pizza hut in managing supply chain operation. The proper consideration of these functions is helping to meet the specification and objectives of organization.  

Network diagram:

                                                                                            Figure 6: Network diagram

The network diagram is providing information about the functional approach of organization is development and delivery of the goods and services to customer by following the suture of operation.

Performance management and operational objective are considered to have a direct relationship which enables the business to achieve the desired growth.  The set operational objectives are the short term goals which lead the businesses towards the strategic or long term goals effectively. It contributes in identifying the performances of financial, human and physical resources intending to achieve the long term goals effectively.

New Zealand courier acquires huge number of employees working for different operational objectives. The basic objective of the courier company is to serve the customers with best services and ensure an effective supply chain into the functionalities. The performances of human resources are measured with the help of 360 degree feedback tool which involves the managers and peer members to evaluate the performances of each other. The physical resources mainly include storage, building, vehicles, equipments, etc. within the business. The New Zealand Courier Company ensures that the storage and building area is used optimally for the business operations so that to enhance the efficiencies of the business (Szczepanik et al, 2017, p.38-44). The company makes use of effective software to maintain the database and financial resources of the operational activities.

LO5. Understand capacity management, apply techniques relating to resource planning, and recommend appropriate actions in a given situation

Performance management in Pizza hut contributes in measuring the efficiencies of the operational activities and the result out of the same. The resources such as financial, human and physical resources are been managed by making use of different techniques of performance management so that to ensue effective outcome from the same. The performances of human resources are measured by setting milestones and regular review of the performances towards the set objectives. The milestones help in comparing the performances and avail better results out of it. The financial resources in pizza hut are been managed by using database software tools which evaluates the financial performance of the business and provide with the idea of success or failures eventually (Duman et al, 2017, p.410-422).  The food chain even acquires financial analysts that provides with the fund management and investments effectively. These measures highly contribute in acquiring idea about the performances of financial resources over the business. The physical resources are evaluated on the basis of customer feedbacks stating the change requirements in the designs or other layout.

Feedbacks in service or logistic organisation play an important role in managing the operations and meeting the set goals effectively. The supply chain company includes complete feedback software with real time reporting, in-depth evaluation and instant notification. The deliveries of products and services are concluded with feedback forms stating the reviews of customers focusing specific criteria like time, quality and employee behaviour during the deliveries (Yu and Wu, 2017, p.773-778). It has been learned that New Zealand Courier Company also conducts periodic web surveys so that to avail in-depth ideas about their performances and bring required changes.

The management of Pizza hut had developed an effective web system which includes the website and online ordering system allowing the customers to experience new services over online platform. The feedback systems include questionnaire at both the physical and online portal of the restaurant which makes the customers provide with their reviews towards the products and services. The company focuses upon the feedbacks and reply to the customers with utter satisfactions. It is been ensured that each and every query is been resolved as soon as possible. In addition to this, the restaurant also has tablet kiosks, android applications, instant alert via SMS and emails and customised survey for controlling the feedbacks (Karmeni, de la Villarmois and Beldi,  2018, p.68-72).

Performance management provides the business with an idea about the effectiveness of their strategies and objectives moving towards either success or failure. The performance in New Zealand courier is measured on the basis of customer satisfactions with the products and services delivery. The company mainly measures the costs and standard times in its performances so that to bring required enhancements into it. The net profits of the business is been compared each year so that to extract the differences and bring improvement in the same through effective financial planning. Additionally, it is ensured that the logistics activities are timely completed and serve the customers with higher delights.

The restaurant chain however focuses upon the productivity enhancements out of the performance measurements. The authorities set specific milestones and targets to be achieved so that to measure the productivity levels effectively. Pizza hut provides the employees with higher job satisfaction and growth opportunities which directly contribute in enhancing their productivity with the business (Wingrove and Urban,  2017, p.1-8).

LO6. Apply an understanding of supply chain management, inventory management, and materials management to given situations

In order to enhance the performances, New Zealand courier highly focuses upon the human resources as they are the key aspects that contribute in the achievement of the set operational objectives of the business. The employees of the company are given specific training sessions and knowledge to engage them with the business. The human resources are also provided with adequate promotions, appraisals and recognitions so that to motivate them to bring improvements in their performances more dedicatedly. With the enhancement in the employee performances, the organisation would be able to acquire improvement in the overall business performance as well (Hugos, 2018, p. 15-19).

With the purpose to improve the business performances, the management of Pizza hut focuses upon the products and services along with the human resources. The product innovation and development is highly emphasised in the restaurants. It is been ensured that high quality products are served with enhanced customer satisfactions. The employees are trained and motivated to serve the customers with their needs effectively and ensure positive feedbacks out of the same.

LO5. Capacity management and techniques related to resource planning 

Capacity management is mainly the approach of decreasing and increasing the business capacities to meet the demands. It includes the planning, forecasting, monitoring and the performance evaluations.

The capacity management in this company is used with the casual labour estimating the actual demands and the present availability. The capacity management in New Zealand couriers is been initiated with the concerns over the future requirements of the employees to meet the demands of the customers. The company ensures forecasting and planning of human resources prior to any shortages (Chung,  Ko and Ko,  2018, p.254-261).

In order to manage the capacity in the restaurant, the management of Pizza hut utilises a smart kitchen display which facilitated the customers to attain the real time status of their orders and manage traffic effectively. The capacity in terms of product design is been managed by conducting tests and inspections within the stores.  It even includes product scheduling which keeps track over a well balanced flow of products and services.

The organisation makes use of master production schedule in production planning activities which includes the plans of specific products which could be prioritised. The plan is highly useful in the material and capacity requirement. It contributes in assessing the labour, material and equipment requirements within the organisational framework. New Zealand courier makes use of the Johnson’s rule for scheduling its services and planning for the same (Xiong et al, 2017, p.1-1). It facilitates the company is scheduling the operations or tasks with shortest time at the work centre.

It has been observed that Pizza hut makes use of material requirement planning method for the production planning. This method specifically calculates the materials and the components required for manufacturing end products. However, it could be stated that the company could also apply master production scheduling method which facilitates the businesses in avoiding shortages, high expenditures, inefficient allocation of the resources and last minute scheduling with the food chain (Bouznif et al, 2018, p.173-195).  

The organization is considering the buying decisions on the basis of the internal capacity of delivering the goods and services to the customers. The buying decisions of the organization are majorly about transportation, technical, and safety of the goods and services. For example, the New Zealand courier service management is analyzing the demand of the target market and making decisions according to maintain the supply chain functions. For courier organization, it is essential to maintain the supply chain operation and have vehicles and equipment that could support in the inventory and delivery of the products and services (Christopher, 2016, p. 11). Moreover, the buying decisions are taken by the top management of New Zealand courier according to particular area and response of the customers for delivery of the goods and services.

The courier service organization is taking the support of different vendors for managing the supply chain functions in across the country. The many vendor strategies are helping the organization to maintain the flow of services and offering of the goods and services to the long-distance customers. The proper consideration of vendor requirements, the courier management is asking for new vendors to join the New Zealand courier and contribute in the well-structured supply chain operations of the organization (Wang et al., 2016, p. 98-110). The strategy of having many vendors for managing the courier services is helping the organization to expand the business and meet the customer satisfaction as they are delivering the goods and services on time and long distance areas of the country.

In courier services, the distribution of goods and services plays a critical role. The strong distribution network is required for managing the supply chain functions. The courier organization is using the online tracking option for analyzing the effectiveness and timely delivery of goods and services (Carbonara and Pellegrino, 2017, p. 354-379). Additionally, the organization is keeping the record of each delivery that helps to identify the issues and make the changes in the approach. The distribution of courier services organization is strong and having the positive impact on the business sustainability.

Pizza Hut is having one of the finest supply chain functions that supporting organization to maintain the higher position in the fast food industry globally. For the particular areas of New Zealand, the organization is making the supply chain and inventory decisions as per the market trends and demand of the services at the particular time frame. To make the decision, the organization is analyzing past sales and demand of the products and services and managing the resources accordingly (Melnyk, Narasimhan, and DeCampos, 2014, p. 37). The proper planning and consideration of demand for the products and services are helping the organization to make the decisions and meet the business objectives. For example, the top management of Pizza Hut is involving the data of various stores in the country for making the decisions for implementing changes in the supply.

The vendors of raw material are having significant contribution in the business process of Pizza Hut. The top management of the organization is evaluating vendor services by evaluating the prices and quality of the material. The management is high concern about the quality of the food products and making the three-step evaluation of vendors for buying their products and services (Ross, 2016, p. 14). This kind of approach is helping for maintaining the functional approach in a structured manner and meets the satisfaction level of customers.

Distribution of products and services is having a vital impact on sales and brand value of Pizza Hut. The effective distribution strategy like a contract with local transporters and logistics agencies are helping the organization to improve the sales in New Zealand. The streamline distribution of the products and services is helping the organization to offer products on time and maintain the values to meet the satisfaction level of the customers (Hugos, 2018, p. 19). This kind of supply chain approach and distribution strategy is helping to maintain the sustainability of Pizza Hut.

Conclusion 

The above report concludes with the fact that both the companies i.e. Pizza hut and New Zealand couriers make use of efficient strategies in different segments of operations. It has been found that. Performance management had played important role in identifying the effectiveness of the efforts made towards the achievements of set objectives and reach towards the success. The organisations include specific measures towards the performance management, quality control, product development, capacity management and supply chain management within the business. Moreover, it has been identified that efficient execution of the strategies contributes in the business growth to the great extent.

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