Introduction• Type- Public Where we have Visited:• Industry-Restaurants.• Founded-Michigan, USA in DOMINO’S PIZZA 1960. Shop No. 7-8• Products- Advocate Chamber Pizza, Sandwiches, Pasta, C Raj Nagar, Ghaziabad- hicken wings, Desserts. 201001• Revenue-$1.425 billion.
Introduction• Second largest Pizza chain in US• 9000 corporate and franchised stores across 60 nations.• Domino’s outlet in India opened in 1996.• Jubilant Food Works Limited, a Jubilant Bhartia Group company holds the Master Franchise rights for India, Nepal, Sri Lanka and Bangladesh.• Revenue – 70 % from home deliveries – 30 % from OTC sales
Mission-VisionMisson Vision“Domino’s Pizza is the Pizza “Exceptional people on a specialist who consistently mission to be the best pizza delights the customer with delivery company in the great taste and choices in world” pizza with friendly, courteous team members providing prompt, safe delivery service”
Objectives• To study & analyze Inventory ManagementProcess.• How they maintain their quality standard.• To konw the customer preference.
Type of Lay-out Entry to Inside Kitchen Area Kitchen Area 2 Customer Service Counter Dining Area
Methodology-Production Process • Pizza Base • 470 prepared Fahrenheit Dough • Seasoning Table • Cheese Makeline • Topping Oven • Capacity of blend 5 pizzas at applied a time 1-2 minutes 1 minute 5-6 minutes Meets the demand of customer in minimum 10 minutes In case of free home delivery it takes minimum 30 minutes
Existing System-Raw Material Procurement4 commissaries (Regional Raw materials like Centralized Facilities) wheat brought in from Tomato, Capsicum across India: Jalandhar and sent to and Onion -Delhi –Bangalore commissaries via purchased locally -Kolkata -- Mumbai refrigerated trucks
Inventory ManagementITEM SHELF LIFEDough ball 5 daysMexican Wrap Base 3-4 daysCheese Dip 4-5 daysSeasoning and Toppings 4-5 daysOnion, Tomato, Capsicum 5 daysCheese Blend 4-5 days
Inventory ManagementMini Cold Storage at Outlet.Raw-materials are kept in minimumtemp. of -1 to -3.Maintain approximately 7 days ofinventory.Some raw-materials are purchased indaily basis.Trucks from commissaries replenishinventory every 7 days.
Operational StrategyHub and Spoke Distribution Hubs at 4 commissaries Delayed Tomato, Capsicum, Onion etc.Differentiation purchased locally IST (Inter To cater to sudden variabilities inStore Transfer) demand Sales To try to get volumes up during leanIncentives times
Quality InitiativesSCIP -Store Continuous Improvement Plan-- Sales, Training, Store operation cost FTD -Friday Training Day HTR -Handle The Rush PRP -Pre-Rush Preparation ONOM -Operations for Non -Operation Managers
Issues Proofing - Dough ball canideally be used on 3-4th day • If not proofed on these days, then it has to be disposed off.for the pizza to taste better • Motivate staff to increase sales through incentives. Some Problems in NCR • No authority to introduce offers at the local level for any particular day. Standard Products of • Local preferences not considered. Domino’s • In case of contingency, materials supplied from Gurgaon and not Inter Store Transfer (IST) Noida,which is nearest.
Recommendations Local manufacture of dough balls to • Usage of deep freezer as in other stores reduce wastage • Authority to introduce offers for short period. Appointing a marketingprofessional at local level • For a better market study and introduce new products suited to local preferences.
Conclusion • Domino’s is ranked no 1 for the past 3 years in Indian Operation Process. • Over last 2 years the have opened stores in 15 new cities.Company Liquidity Asset Mgmt Debt Mngt Profitability ROEDomino’s 2nd 1st 4th 3rd 4thPapa John’s 3rd 2nd 1st 4th 3rdPizza Hut 4th 3rd 3rd 2nd 1stMC Donalds 1st 4th 2nd 1st 2nd