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Operation Management chapter 1
Operation Management chapter 1
Operation management nature and role
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Introduction
Domino’s Pizza is one of the world leaders in pizza delivery. It establishes in 1960 in the United States and operating with company-owned and franchise owned stores in International markets (Dominobiz, 2013). In this essay we will look through the operation management of Domino’s Pizza which in the core operation. Then, I will analyse the 4V model of attribute of demand for the service, the performance objective of the organisation, provide input-transformation-output diagram and supply network of the organisation. Lastly, provide improvement suggestion for Domino’s Pizza core operation.
Core and The Boundary of Operation
Domino’s Pizza is operated internationally through a network of 10,255 company-owned and franchise stores, located in all 50 states and more than 70 international markets (Domino’s Pizza Annual Report 2012). There are three business segments which is domestic stores, domestic supply chain and international. The core operation of this company is delivering pizza. Based on number of units and revenue, they rank second largest pizza company in the world. It carry tagline of ‘you got 30 minutes’ in December 2007 to deliver pizza in that time but it is late they will get free pizza or voucher. Free pizzas not apply to all country (Adamy, 2007).
On average, throughout the Domino’s system over1.5 million pizzas sold every day ad 15 million miles delivery every week (Domino’s Pizza Annual Report 2012). This is not a small number. Upon delivering the pizza, they will get the order from the customer through, internet, phone, or walk-in in to restaurant. Then the Domino’s staff will be record the order by using PULSE system, in the assembly like the staff will prepare the food according to the demand. Next, ...
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...ket they need to improve on the pizza quality.
Moreover, they need new technology to help to reduce time of delivery, for example the pizza made in the store but can be cook in vehicles while delivery thus the customer will receive fresh pizza from oven as well as reduce delivery time. In addition, this is because the driver then to drive fast and broke the rules lead to accident. Hence, they need to improve on the diver safety and regulation, in order to make sure the company reputation is good so, that law suit case is not charge on them. If this happens it will cause a big loss.
Furthermore, Domino’s Pizza needs to improve on the 30 minute guarantee to make the delivery more efficient and dependable. When the customer place an order, the system can track the distance and tell them how long exactly the time take to arrive. This makes the promise more realistic.
The article discusses how Panera Bread had to rethink its service model seven years ago. Customers had to wait in line approximately eight minutes to place an order. Furthermore, ten percent of the time, the orders were incorrect. As a result, the company decided that online ordering was the solution to their problem. In 2012, the organization opened a Panera prototype in Braintree, Massachusetts to test the elements of “Panera 2.0”. “Panera 2.0” consisted of self-order kiosks, delivery, digital ordering and a new practice of bringing food to customers’ tables. Getting the right process took Panera Bread over six years. However, all the time spent and money invested paid off for the company. Panera is now recognized as one of the best-performing chains in the industry. In addition, a quarter of the company sales come from online ordering and customers waiting time to place an order reduced to one minute. In 2016, the company posted its best sales growth in four years, outperforming the industry average by 6.5% points.
When Maddie thinks of eating pizza at a restaurant, similar to most people, she thinks of Pizza Hut. Pizza Hut has always been known as one of the leading pizza restaurants because it is spread across the country. Almost anyone can say that they have eaten pizza from there before including Maddie. However, there is another pizza restaurant that is starting to shove its foot into the pizza industry. That restaurant is Pizza Ranch. Pizza Ranch has only begun spreading its roots across the United States, therefore, it is not as widely known as Pizza Hut. In Maddie’s opinion, Pizza Ranch is a better restaurant than Pizza Hut because it has some of the many traits that make up an excellent restaurant. The most important reason that Maddie loves pizza ranch is because it is a friendly environment. From the first minute someone walks through Pizza Ranch’s door to the last, guests are treated like family. Another reason that Maddie enjoys pizza ranch is Buffet Your Way. Buffet Your Way allows Maddie to order anything that she wants and not have to pay any more money for it if she is eating the buffet. This is one of the best features of Pizza Ranch that puts it above Pizza Hut. Furthermore, Pizza Ranch always has a clean environment because the workers care about how the place looks. This restaurant also is more efficient about getting food to its customers than Pizza Hut. However, some people might argue that Pizza Hut has better tasting pizza than Pizza Ranch. Although Pizza Hut is one of the most popular Pizza restaurants, Pizza Ranch is a better restaurant because it has a friendly atmosphere, Buffet Your Way, a clean environment, and fast service.
Kudler Fine Foods is a store unlike any in the grocery industry. Kudler Fine Foods represents a store that could possibly spark a new era within the grocery world. The owner of Kudler Fine Foods, Kathy Kudler, has watched her dream of owning and operating a grocery store that specializes in fine quality food grow within a short period of time. The success of Kudler Fine Foods can be attributed to the innovative ideas, effective leadership, and organizational structure. The overall mission of Kudler Fine Food's "is to provide our customers the finest in selected foodstuffs, wines, and related needs in an unparallel consumer environment. Our selections coupled with our experienced, helpful and knowledgeable staff, merge to offer each customer a delightful and pleasing shopping outing" (Apollo Group, 2003). Kudler has managed to maintain its mission statement by providing its customers with the best and as a result the company has flourished. "Kathy considers one of her key responsibilities to be that of identification of new gourmet items that can be offered in her stores (Apollo Group, 2003)." Therefore, Kathy is considering plans to contract with local growers of organic produce to yet obtain the best in quality products for her consumers and take her business to the next step. If Kathy makes the decision to contract with local growers then changes could be introduced into the company's overall structural organization. Each aspect of Kudler Fine Food's organizational structure from basic business process to the supply chain and quality control process will be affected by the formation of a contractual relationship with local organic growers.
Pizza My Heart is one of the most successful pizza restaurant businesses in the Bay area. Founded in 1981, this family-owned business soon became a favorite place for the surfers and beachgoers, and grew into a chain that operates at eighteen locations in northern California. As it emphasized in the mission statement that they want the highest quality in pizza and service, Pizza My Heart is well known for its freshness and taste. Its strategy to source food with more natural and local ingredients and less processing worked when it was awarded “Best in the Silicon Valley” for being the best pizza of the year in 2006 and 2007 from tews.com.
Positioning of the Pizza kit so that it is able to take .3% of the market share away from takeout/delivery (majority of the market share).
Now lets look at some of the other key factors that have led to success at this point. Papa Johns is known for their excellent customer service and have really blown their competition in area. They need to remind their customers that they are the best at making pizza lovers happy. The price point of a product tends to be the first thing noticed by the consumer but if they are not happy with what they get they being to think twice about their decision. In today's
PepsiCo can potentially acquire California Pizza Kitchen and integrate it in the company’s decentralized management approach. Since PepsiCo executives have experience in the quick service food industry, it should not be a reach for the company to successfully run this casual dining restaurant. For this venture to be successful, it is imperative that management cut down the operating costs at California Pizza Kitchen through the PepsiCo Food Systems distribution network and improve on the 3.1% operating margin that California Pizza Kitchen is currently operating at.
Cause of this number of delivery booking went down significantly. The team have adjusted the operational budget to match the operation so they can compete with the latest trend in the market. To overcome from this situation company need to concentrate on their sales policy so that they can attract more customers.
TP has grown from a single store in 1988 to the largest pizza chain in Spain. At the end of 1997 they had 399 stores and an estimated market share of 62% in Spain. But what made it so successful? There are several reasons for that in the TP concept:
Flexibility seems to be the most heavily concentrated component for Subway restaurant which is followed by quality. Speed, cost and dependability are equally the same. The data was collected from primary research by asking Mr. Stuart House to distribute 20 points across the performance objectives. This information was used to construct a polar diagram of Subway as seen above (Appendix 3).
This model consists nine components in total including customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships and cost structure in a conceptual priority order (Osterwalder 2012) which are belong to four main areas comprising of offerings, customers, infrastructure and financials (Rytkonen & Nenonen 2014). Although both nine are important, this essay will only concentrate to three key characteristics which are customer segments, value propositions and
For years now Pizza Hut, Inc. has been the leader of the pizza industry. We have been privileged to have had the opportunity to perform research on advancements we can make to maintain this reputation. Based upon our Economic Analysis we have decided to not launch the BIGFOOT pizza. The following gives a detailed analysis, offers alternatives to improving the Pizza Hut experience, and gives reasons why we came to this conclusion.
On completion of this project I have learned that how operations and managements are implemented in the organization, where the company being leader in the food service industry.
W- Domino’s will begin to see challenges if they continue to expand their menu. Due to their assembly line layout, food preparation is quick and simple and out the door, Domino’s doesn’t have many options that can be successfully added and executed. If the desire for additional dessert options or appetizers increases, Domino’s may not be able to meet the demand.
The restaurant industry has become quite competitive in recent times. In an effort to cut costs restaurants are taking serious measures to improve their performance in relation to their competitors. Two of the most important steps that restaurants have undertaken in recent years are: