This document summarizes analyses and recommendations for improving operations at Hill Dining Center's Marketplace. It finds that the homestyles buffet could reduce wait times by using a maximum of 4 servers during peak periods and implementing assembly-line style serving. The dish room could increase throughput by reallocating workers and implementing silverware/trash removal. Inventory management of items with short lead times and spoilage periods could be improved using a fixed-order quantity approach to lower costs. Overall, the proposed changes could reduce costs and wait times to improve the customer experience.

1. Hill Dining Center
Team: Mojo-Jojo
Jessie Chen
Brian Green
Daniel Guslits
Karina Puskorius
Romina Reversi
Jake Schmidt

2. M A R K E T P L A C E
AT HILL DINING CENTER
What’s on the Menu
Homestyles
Buffet
Dish Room
Inventory
Management
Background
Analyses &
Recommendations
Q & A

3. M A R K E T P L A C E
AT HILL DINING CENTER
• Run by Michigan Housing
• 300 Student Employees
• Daily Customers Served:
– Breakfast ~500
– Lunch ~1,500
– Dinner ~1,500
• Projected Demand of 5,000
HDC – Market Place

4. M A R K E T P L A C E
AT HILL DINING CENTER
Homestyles Buffet

5. M A R K E T P L A C E
AT HILL DINING CENTER
• Analyzing
– Main Line
– Express
– Process Time
Process Time Analysis
•
– Waiting Time
– Queue Length
– Optimal
Servers
– Optimal Setup
Express M A I N

6. Queue Length
0
5
10
15
20
25
30
35
40
12:00 12:05 12:10 12:15 12:20 12:25 12:30 12:35 12:40 12:45 12:50 12:55 1:00 1:05 1:10 1:15 1:20 1:25 1:30
LengthofQueue(numberofcustomers)
Line, 3-21
Line, 3-26
Line, 3-28
:08 :18 :08 :18

7. :08 :18 :08 :18
Wait Time
0
2
4
6
8
10
12
12:00 12:05 12:10 12:15 12:20 12:25 12:30 12:35 12:40 12:45 12:50 12:55 1:00 1:05 1:10 1:15 1:20 1:25 1:30
AverageWaitTime(minutes)
Wait Time, 3-21
Wait Time, 3-26
Wait Time, 3-28
Max: 9.55 min
Max: 4.29 min
Max: 4.02 min

8. M A R K E T P L A C E
AT HILL DINING CENTER
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
express 2 3 4 5
ProcessTimeperCustomer(minutes)
21-Mar
0.00
0.05
0.10
0.15
0.20
0.25
2 3 4
ProcessTimeperCustomer(minutes)
26-Mar
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
1 2 3 4 5
ProcessTimeperCustomer(minutes)
28-Mar
Process Time by # of Servers

9. Servers
:08 :18 :08 :18
0
1
2
3
4
5
6
12:00 12:05 12:10 12:15 12:20 12:25 12:30 12:35 12:40 12:45 12:50 12:55 1:00 1:05 1:10 1:15 1:20 1:25 1:30
NumberofServers
Servers, 3-21
Servers, 3-26
Servers, 3-28

10. M A R K E T P L A C E
AT HILL DINING CENTER
• Monetary
– Assumption: Time valued @ $10/Hr
– Average Total Wait Time Per Lunch Period: 120 minutes
– Average Value lost per day (Lunch): $20.00
– Value Lost per year for Lunch: ~$4,480
• Non-Monetary
– Emotional pain of being in line and hungry
Current Issues

11. M A R K E T P L A C E
AT HILL DINING CENTER
Use a max of 4 servers
Maintain 4 servers for rush, :08 to :18
Only pre-served food on express
Assembly-line serving during peak (specialization)
Recommendations
+ Maximizes flow rate and reduces wait time
+ Pools demand in a single queue
+ Increase retention of upperclassmen to meal plans

12. M A R K E T P L A C E
AT HILL DINING CENTER
Dish Room

13. M A R K E T P L A C E
AT HILL DINING CENTER
Process Flow Diagram
Pull dishes off trays
Conveyor
Load Dishwasher
Dishwasher CycleUnload Dishwasher
Bring Dishes out to
Dining Room
Dolley

14. M A R K E T P L A C E
AT HILL DINING CENTER
Dish Room Analysis
Process Flow Rate
Pull dishes off tray (2 People) 18 plates/min
Load Dishwasher (1 Person) 40 plates/min
Dishwasher 40 plates/min
Unload dishwasher (1 Person) 43 plates/min

15. M A R K E T P L A C E
AT HILL DINING CENTER
• Average of 6 student workers during peak
times
• 4 student workers during non peak times
• Workers paid average of $9.20/hour
• Peak time labor costs: $331.20/day
Labor Costs

16. M A R K E T P L A C E
AT HILL DINING CENTER
Process Recommendations
• Allocate worker from clean  dirty side
– 18 dishes/min  30 dishes/min
• Implement silverware drop
• Implement trash removal
– Speeds up first process step
• Non peak time labor 4 workers  3 workers
– Savings of $11,776/school year

17. M A R K E T P L A C E
AT HILL DINING CENTER
Dishwasher Breakdowns

18. M A R K E T P L A C E
AT HILL DINING CENTER
• $.75/person for paper products
• Dinner average breakdown cost:
$2,250/school year
– No maintenance fees due to contracts
• Dishwasher operation cost:
$1,211.40/semester
• Cost of an additional dishwasher purchase:
$80,000
– Additional labor and operation costs
Breakdown Costs

19. M A R K E T P L A C E
AT HILL DINING CENTER
Mojo Procurement
Inventory Analysis
Inventory Analysis

20. M A R K E T P L A C E
AT HILL DINING CENTER
Inventory Order Process Cycle
Inventory Analysis
Projections
from
historical data
Orders placed
online
through Sysco
before 4 pm
Trucks deliver
next day at
11:00 am

21. M A R K E T P L A C E
AT HILL DINING CENTER
Inventory Arrives
Dairy Room
Produce Room
Freezers
Dry-Storage Room
Inventory Movement

22. M A R K E T P L A C E
AT HILL DINING CENTER
Cheese Please
Pizza Cheese!
•1,344 portions of
pizza consumed per
day
•Largest order at
Mojo

23. M A R K E T P L A C E
AT HILL DINING CENTER
Key Data
Demand
•13.5 cases/ week
Cost
• $41.45/case

24. M A R K E T P L A C E
AT HILL DINING CENTER
Key Data
Purchasing
Manager
• 1 hour/week
• 4 orders/week
• $19.25/hour $4.81/order
Stock
Keeper
• 1 hour/week
• 4 orders/week
• $16.30/hour $4.08/order
Setup Cost
• $21.11/order

25. M A R K E T P L A C E
AT HILL DINING CENTER
Key Data
Opportunity
Cost
• i=10% annually
• $0.07/week
Spoilage
Cost
• 5-week spoilage period
• 41.45/5=$8.29/week
Holding Cost
• $8.36/Week

26. M A R K E T P L A C E
AT HILL DINING CENTER
• Haphazard ordering system
• Ordering decisions are not clearly defined
Current Ordering System
Beginning Balance Amount Ordered Demand
Week 1 11 15
3/12 4
3/14 3
3/15 2
3/16 3
Week 2 8 12
3/19 5
3/20 3
3/21 6
3/23 6
Week 3 16 14
3/26 3
3/27 4
3/28 4
3/29 8
• $683.02
Total Cost

27. M A R K E T P L A C E
AT HILL DINING CENTER
• Options
Optimal Method?
1
•Current Method (“eyeballing it”)
2
•Fixed-Order Quantity
3
•Fixed-Time Period

28. M A R K E T P L A C E
AT HILL DINING CENTER
Economic Order Quantity
Q opt=9
cases/order

29. M A R K E T P L A C E
AT HILL DINING CENTER
Fixed-Order Quantity
Fixed Order Quantity
• 9 Cases
Lead Time
• 1 day
Service Level
• 98%
Reorder Point
• 3 cases
Safety Stock
• 1 case
• $653.98
Total Cost

30. M A R K E T P L A C E
AT HILL DINING CENTER
Safety Stock
• 5 cases
Fixed-Time Period
Review Period
• 1 week
Target Stock Level
• 20 cases • $670.41
Total Cost

31. M A R K E T P L A C E
AT HILL DINING CENTER
Cost Comparison
• $683.02
Current
• $653.98
Fixed-Order Quantity
• $670.41
Fixed-Time Period

32. M A R K E T P L A C E
AT HILL DINING CENTER
• Short spoilage period high holding cost
• Short lead time low safety stock
Intuitions

33. M A R K E T P L A C E
AT HILL DINING CENTER
Savings:
• 683-654=$29/week
Cost:
• Minimal
Cost & Benefit Analysis
$29/week 8 months
$928/
school year

34. M A R K E T P L A C E
AT HILL DINING CENTER
Recommendation
Use fix-order quantity for items with short
lead time and short spoilage period
Other such items include milk, fruits, breads
and eggs

35. M A R K E T P L A C E
AT HILL DINING CENTER
• Homestyles Buffet:
– Use 4 servers during peak period
– Assembly line style serving
• Dish Room:
– Implement silverware drop & trash removal
– 3 workers during non-peak hours
• Inventory Management:
– Fixed-order quantity for items with short lead
time & short spoilage periods
Summary

36. M A R K E T P L A C E
AT HILL DINING CENTER
Questions?
Thank You!

37. M A R K E T P L A C E
AT HILL DINING CENTER
APPENDIX I

38. M A R K E T P L A C E
AT HILL DINING CENTER
• Average demand = 13.5 cases/ week
• Cost per unit=$41.45/case
• Setup cost=$ 21.11 /order
– $16.30 for 1 hr of stockkeepers time, $19.25/4 for 15
mins of purchasing manager's time
• Holding cost=$8.36/week
– We assume i=10% annuallyi=0.18% weekly
– Spoilage cost: 41.45/5=$8.29/week.
– Utility cost is fixed cost and therefore not considered.
– Therefore, the total holding
cost=41.45*0.18%+8.29=$8.36/week.
APPENDIX II

39. M A R K E T P L A C E
AT HILL DINING CENTER
• Labor cost savings in dish room
– 8 hours of non-peak time/day
– Average wage of $9.20/hr
– 5 days/week
– 4 weeks/month
– 8 months/school year
• Savings = 8*$9.20*5*4*8 = $11,776/school year
APPENDIX III

40. M A R K E T P L A C E
AT HILL DINING CENTER
• Savings:
– $ 675.58-$645.61=$27/week
– Saves $755/semester
• Costs:
– Increase Monitoring of Inventory (+.5 Hrs/wk)
– Extra Costs of $128/Semester
• Net Savings:
– $755 - $128 = $627/ Semester
APPENDIX IV

41. M A R K E T P L A C E
AT HILL DINING CENTER
Fixed-Time Period
Avg. pipeline inv. Avg. cycle inv. Avg. total inv.
(cases) (cases) (cases)
1.93 6.75 13.25
Avg. weekly inv.
cost
Avg. weekly setup
cost
Total weekly
cost
($/ wk) ($ / wk) ($/ wk)
110.83 84.45 670.41

42. M A R K E T P L A C E
AT HILL DINING CENTER
F-O Inventory Data
Avg. pipeline inv. Avg. cycle inv. Avg. total inv.
(cases) (cases) (cases)
1.929 4.5 7.5
Average Inventory Data

43. M A R K E T P L A C E
AT HILL DINING CENTER
Fixed-Order Quantity
Avg. weekly inv.
cost
Avg. weekly
setup cost
Total weekly cost
($ / wk) ($ / wk) ($ / wk)
62.73 31.67 653.98
Average Inventory Costs

44. M A R K E T P L A C E
AT HILL DINING CENTER
Current Method
Avg. pipeline inv. Avg. cycle inv. Avg. total inv.
(cases) (cases) (cases)
1.929 2 5
Avg. weekly inv.
cost
Avg. weekly
setup cost
Total weekly cost
($ / wk) ($ / wk) ($ / wk)
52.19 71.25 683.02
Average Inventory Costs
Average Inventory Data