Pizza Store Layout Mario’s Pizzeria Mario’s Pizzeria, a family-owned establishment is known for authentic taste, fresh ingredients, brick oven baked pizza, is an example of common modern phenomena. The pizzeria has been in business since 1950 and brings with it a reputation in its home in Palm Springs, California, for its quality and uniqueness. Mario wishes to pass the business down through his family, however a new set of streamlined processes are required to remain competitive while still providing that family owned ambience that is one of their hallmarks.
Customers are dissatisfied with the wait time and it necessary to evaluate the customer population, customer que wait times, the servicing system, and develop a priority rule for determining who is served next. The current business flow through process at the pizzeria is: 1. four servers 2. two kitchen staff 3. four manual ovens 4. 14 tables that seat four with no other table seating types available 5. Cream puffs product in addition to Pizza Wait time is on average about 10 ? minutes. The current process cannot compete with its fast food pizzeria competitors, and is realizing a decrease in profits.
Long queues cause loss of customers through too lengthy waits in seating, ordering, and receiving their pizzas. Changes are needed to streamline the current process to reduce the number of customer wait times. Learning Curve The start of the improvement process and learning curve begin with data/metric collection. Lean Six Sigma (Motorola 1986) guidelines that indicate that performance metrics should lead to a quantitative assessment of gains in: 1. Customer Satisfaction 2. Organizational Performance 3. Workforce Excellence The Process
The first step in developing performance metrics is to involve the people who are responsible for the work to be measured because they are the most knowledgeable about the work. Once these people are identified and involved, a new process was developed: •The number servers and kitchen staff remained the same •Upgrading to the ovens to increase capacity of pizza production •Decreasing the number of tables that seat four to ten while increasing the number of tables that seat two to eight •Rent out Cream Puff process Mario’s Pizzeria previous process lost several customers because of excessive wait times and seating accommodations.
Mario’s Pizzeria was required to make several business decisions in the simulation in order for the business to maintain success and be more profitable. Using the Lean Six Sigma (LSS) model to examine the process, metrics, current state and desire state available to the restaurant, allows Mario’s to transition into the 21st century business model needed to be competitive. The table shows the before and after processes comparison. Before After Wait Time10. 84 minutes5. 51 minutes Seating Accommodations14 tables of four10 tables of four 8 tables of two Loss of Sales$1,140$480 Cream PuffsKitchen and tablesIncreased space for tables
In this case, performance measurement is an important element. Performance metrics should be constructed to encourage performance improvement, effectiveness, efficiency, and appropriate levels of internal controls. They should also incorporate cost/risk/benefit analysis, where appropriate. The SMART concept is frequently used to provide a quick reference to determine the quality of a particular performance metric: •S = specific: clear and focused to avoid misinterpretation. Should include measure assumptions and definitions and be easily interpreted. •M = Measurable: can be quantified and compared to other data.
It should allow for meaningful statistical analysis. Avoid “yes/no” measures except in limited cases, such as start-up or systems-in-place situations. •A = Attainable: achievable, reasonable, and credible under conditions expected. •R = Realistic: fits into the organization’s constraints and is cost-effective. •T = Timely: doable within the time frame given. (2011) The data identified by this process is essential in assisting Mario’s minimize ques and customer wait time, increase productivity, reducing server times, and increase overall profits. The learning curve is based on three fundamental assumptions: 1.
The amount of time required to complete a given task or unit of a product will be less each time the task is undertaken. 2. The unit time will decrease at a decreasing rate. 3. The reduction in time will follow a predictable pattern (2006) The Learning Curve Theory in this case is concerned with the concept on how quickly the staff learns the new processes, comes up to speed as it were, and achieves maximum efficiency. Repetition of the task is likely to make the people more confident and knowledgeable and will eventually result in a more efficient and rapid operation.
Eventually the learning process will stop after continually repeating the job. Initially, the time to complete a task will, at first, decline and then get better as the staff learns. Combining the data received from the aforementioned provides an idea to about their business profile and metrics performance metrics. The results from the metrics will determine Mario’s Pizzeria future business decisions through managing the wait times, loss of profit and, of course, competitiveness. They explored options and alternatives to becoming more economical in managing the restaurant.
Major alternatives to consider were in the areas of staffing, table capacity, improved server software, and oven capacity. The staffing could be increased or decreased to determine how quickly the orders could be placed and new server software will decrease the order que, while an updated oven will decrease preparation time. References (2006) Operations Management for Competitive Advantage, 11 ed. Retrieved from University of Phoenix Student & Faculty Portal: https://ecampus. phoenix. edu (2011) S. M. A. R. T. , Retrieved July 20, 2011 from http://en. wikipedia. org/wiki/SMART_criteria