Case study

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Case study

  1. 1. GROUP MEMBERS: NAMRATHA R SUKRITI SHARMA SAMPOORNA SARKAR PRIYAM SINGH 1 MANEESH BHATIA
  2. 2. PROCESS FLOW DIAGRAM Customer Customer Customer enters enters dining orders for drink restaurant area Chef arrives Customer waits Customer and starts for the chef orders for food cooking Customer Customer pays enjoys the food and leaves 2
  3. 3. inputs LABOUR MATERIAL INPUTS ENERGY CAPITAL 3
  4. 4. LABOUR 4
  5. 5. MATERIAL Biggest purchase : meat 5
  6. 6. ENERGY 6
  7. 7. capital 7
  8. 8. OUTputs 8
  9. 9. Tasks, flows & storage 1. FLOW OF GOODS • FOOD FLOWS • BEVERAGE 2. FLOW OF INFORMATION • ORDER OF FOOD TASKS STORAGE1. TAKING ORDER RAW MATERIAL2. COOKING 1. FOOD – cooked or uncooked state 2. BEVERAGE 9
  10. 10. OTHER PARAMETERS Min time: 45 minutes Average = 60 minutes Max time: 90 minutes 10
  11. 11. = Each table accomodates 8 people. If there are 5 tables, then capacity will be 5x8=40 11
  12. 12. Between lunch and dinner Efficiency Utilization Setup time Run time 12
  13. 13. Key Elements Of Focus The restaurants have about 8% more than average productive dinning space. Optimum Space Utilization Location AdvantageThe restaurants are locatedin heavily populated areasso as to attract clientele for Elements Benihana Focus Hibachi Table arrangementlunch and dinner. This unique feature not only adds The Benihana restaurants cut to thecosts substantially just by food showmanship of the restaurants culinary wanted smartly serving the most offerings,and thereby cutting on entrees but also reduces labour cost and takes and this also helps storage costs away any apprehensions regarding exotic in avoiding waste. fare. Historical authenticity Waste Management and Storage The restaurants are built with materials imported from Japan along with the help of a Japanese crew. The chefs too are formally educated 13 Japanese chefs
  14. 14. Cost-Structure: Profit Making Model Served Menu By reducing the menu to only three simple Middle American entrees: steak, chicken and shrimp they cut the food costs to between 30% and 35% and this also lead to reduce wastage. Non-Conventional Kitchen They eliminated the conventional kitchen with the hibachi table arrangement thereby reducing the labour cost and the additional cost of kitchen space. 14
  15. 15. Cost-Structure: Profit Making Model(Chicago Branch) 4% 30% Manag Food ement 10% Ads 10% Labour 5% Rent 69 % Savings 15
  16. 16. Making Operations Efficient Elimination Of Kitchen Space 1. It builds an amount of trust among the customers which was lacking before. 2. There is an effective reduction in space for kitchen and the same space can be used as the productive dining area. 3. It also gives an opportunity to attract customers by exhibiting the culinary skills of the chefs in an innovative manner. 4. This also reduces the labour costs low. 16
  17. 17. Making Operations Efficient 17
  18. 18. Making Operations Efficient Authentic ambience: Every entity inside the restaurant was made authentic. Even building materials were shipped from Japan directly. This helped in attracting customers Better Layout: This increased the productive area by about 8% effectively compared to competitors. 18
  19. 19. Balance-Sheet-It’s all about Money(Given) Share of Food and Beverages Food Cost per share Beverages Food Labour Advertising Rent Management Assumptions:•Labor costs include Payroll, Employee benefits, and Employee meals.•The costs are assumed on the higher end of the range 19
  20. 20. Balance-Sheet-It’s all about Money(Solution) Sales 100% Food 70% Beverage 30% Cost of sales Food 21% 30% of 70 Beverage 9% 30% of 30 Total cost of sales 30% Gross Profit 70% 100-30 ***Assuming sales to be 100% 20
  21. 21. Balance-Sheet-It’s all about Money(Solution) Operating costs Labour 10% Advertising 10% Management 4% Laundry, linen, uniforms 2% Replacements 1% Supplies 1.50% Menu 0.50% Music 1% Utilities 2% Administrative expenses 2% Repairs 2% Rent 5% Taxes 1.50% Insurance 1% Interest 1% Depreciation 4% Total 51% Net Profit before tax 19% 21
  22. 22. Balance-Sheet-It’s all about Money(Conclusion)• The sales is equal to $1.3million.• According to the above figure, net profit beforetax = 19% of $1.3million = $247000 22
  23. 23. Time Calculation(Sum) To Determine: The maximum throughput time is the time that elapses from the time a person enters the bar to the time he/she leaves the restaurant. Given information: The dining area is five times the capacity Of the bar. Assumptions:Seating capacity of bar is 1 and that of dining area is 5(for ease in calculation). The average turnover at the teppanyaki table is one hour. The first 5 people who enter the bar will get seating inside the dining area.The sixth person who enters the bar will have to wait until one table inside the dining area becomes vacant. Solution:Considering all the possibilities, a person who enters after 1 minute of the dining area becoming busy will have to wait for 59 minutes, a person who enters after 2 mins will have to wait for 58 minutes. The maximum waiting time for person will be 60 minutes. Therefore the average waiting time = 23 (1+2+3+.....+58+59+60)/60 = 30.5 minutes
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