OPERATIONS MANAGEMENT
Made by: Isham, Hemant, Alex, Rahul,Vaisishtu, Latifa and Sankalp
INTRODUCTION
BSB, INC
Operates on a national level to cater organizations Serves 6,000 students and 3,000 faculty members at university
MARKETTARGETS
Universities
Airline Industries
Corporate Office
UNIVERSITY
 Walking university – dorms, food-
facilities, branch bank, classes,
bookstores, barber shop and sundry
shop
 Cafeteria – located in the ground floor
 Dogwood – located in the second floor
 Grill – located in the corner of
recreational building
STUDENTS FOOD CONSUMPTION SURVEY
Renee Kershew – Manager of
food-services
WHY STUDENTS CONSUME FOOD OFF-
CAMPUS?
Insufficient variety of dishes in the course menu Timings are inconvenient
OTHER SURVEY FINDINGS
RESPONSETOTHE SURVEY
 Installed a pizza oven and allocated
extra space for pizza ingredient storage
 Renee have decided to limit the
toppings on the pizza in order to
minimize lead time
 Initiation of delivery service free of
charge through out the entire campus
 Hired assistant personnels to deliver
pizzas by means of bicycle
GOOD PART
 Steady increase in sales over the past 10 months
along with profit
 Customer satisfaction level is high for reasonable
price and quick delivery service
BAD PART
 Increase in demand – puts strain on the
workers as facilities are insufficient to
meet the demand
 Delay in delivery due to high number of
orders
 Sales is on loss
 There is increase in off menu orders
WHYTHE BAD PART?
 BSB, INC basically reached its maturity level in
its product life cycle
 It became difficult to serve large orders
 The students are used to pizzas that was
offered to them.Therefore, no new variety
offered to the students
 Rise in demand led to increase in delivery
times
WORST SCENARIO!
 Announcement of three major food-service providers in new food court
 Now main concern of Kershaw is the entry of Pizza Hut – direct competitor of BSB, Inc
AGAIN GOOD
NEWSTO IT!
Pizza Hut in the campus will
be having certain limitations:
 Limited selection of pizzas
 Will not accept orders via
phone and offer delivery
service
DOES BSB, INC ENJOY ANY COMPETITIVE
ADVANTAGES OR DISTINCTIVE
COMPETENCIES?
QUESTION
COMPETITIVE ADVANTAGES AND
DISTINCTIVE COMPETENCIES
 More close distance to the customers as it will allow quicker
delivery
 Location of the facilities – as it is in the campus itself(not in
separate food court)
 More experienced in terms of market knowledge
RESULTS OF COMPETITIVE ADVANTAGES AND
DISTINCTIVE COMPETENCIES
 Quick delivery
 Inexpensive way of delivering as no need of using
motorbikes
 More knowledgeable about the needs of the customers
WHAT IMPACT WILL THE NEW FOOD
COURT HAVE ON KERSHAW’S PIZZA
OPERATION? WHAT COMPETITIVE
PRIORITIES MIGHT SHE CHOOSE TO
FOCUS ON NOW?
QUESTION
ANSWER
Price Convenience
Pizza charged at a reasonable rate. This allowed
competing with its off-campus suppliers
Order was delivered at correct time. Mainly due to:
• Preparing of pizzas before receiving order
• Delivering by means of bicycle
Order qualifier OrderWinner
Kershaw’s choice of competence as well as her competitive priorities:
WHAT IMPACTWILLTHE NEW FOOD
COURT HAVE ON KERSHAW’S PIZZA
OPERATIONS? WHAT COMPETITIVE
PRIORITIES MIGHT SHE CHOOSETO
FOCUS ON NOW?
QUESTION
IMPACT OF NEW FOOD COURT ON BSB
MORE
COMPETITION
MONOPOLY
IS LOST.
ANSWER
ADVANTAGES AND DISADVANTAGES
ADVANTAGES DISADVANTAGES
Quick delivery service
New competitors have a
Greater advantage of there
Brand name
Limited variety of service More variety of food service. (Fast food)
Standardized menus of large franchises such as
pizza hut
Same location
NEW COMPETITIVE PRIORITIES FOR BSB
Flexibility of Product Flexibility of Volume Flexibility of Operation
Inclusion of royal salad
To compete with Dunkin
Donuts –
Introduce dessert such
as Sundae or cookies
To compete withTaco
Bell - Introduce
sandwiches
e.g. mathafi porotha
Increase the production of pizza in
order to meet the increasing
demand
Increase the number of operating
hours at the times when Pizza Hut is
closed. i.e. Operating hours should
be until 3 am morning
IF SHE WERE TO CHANGE THE
COMPETITIVE PRIORITIES FOR THE PIZZA
OPERATION, WHAT ARE THE GAPS
BETWEEN THE PRIORITIES AND
CAPABILITIES OF HER PROCESS? HOW
MIGHT THAT AFFECT HER OPERATING
PROCESSES AND CAPACITY DECISIONS?
QUESTION
GAPS BETWEEN PRIORITIES AND CAPABILITYTO
PROCESS
 For flexibility of Product: Very few to no workers specialized
in doing the proposed tasks.
 For flexibility of Volume: Comparing to the demand, space
for kitchen equipments are insufficient.
 For flexibility of Operation: Other than increase in variable
costs, there is no gaps
EFFECTS ON OPERATING PROCESSES AND
CAPACITY DECISIONS
 For flexibility of Product: As additional offerings are
increased this will effect delivery service and cost as
additional workforce must be employed.
 For flexibility of Volume: As there is increase in demand,
more amount of space will be required.
 For flexibility of Operation: Cost of fuel, electricity bill and
pay for overtime to the workers used in extra operation hours
may exceed operation budget.
In short – the above points will lead to increase in the price of pizzas!
WHAT WOULD BE A GOOD
FLOW STRATEGY FOR
KERSHAW’S OPERATIONS ON
CAMPUS TO MEET THE FOOD
COURT COMPETITION?
QUESTION
SWOT ANALYSIS
There are couple of internal(strengths and weaknesses) and external(opportunities and
threats) influence associated with BSB, INC analysed as follows:
Strength Weakness
Inexpensive rate: Offers students affordable rate of
the meals
Lack of Variety: Students got bored of trying the
same meals on daily basis
Market Knowledge: BSB is having experience for
more than 10 years in offering its service to the
targeted market sectors
Lack of Capacity: Puts strain on the existing kitchen
equipments as well as the workers.
Customer Ease: Allows to make delivery via phone
SWOT ANALYSIS - CONTINUATION
Opportunities Threats
Limited Menu: It is expected that Pizza Hut will
offer limited variety in its course menu
Brand Recognition: Pizza Hut is well known through
out the world from 4 – 5 decades.This can be threat to
BSB, INC
Hours of operation: Pizza Hut is not open at very
late night.
Customer Service: Dunkin Donuts and Taco Bell
provide ready made fast food and desserts that
matches the expectations of the students.
BASIC OPERATION STRATEGY - PROCESS
Customer Needs
Corporate Strategy
Operation Strategy
Decisions on Processes
and Infrastructure
GOOD COMPETITIVE OPERATION
STRATEGYTO BETAKEN BY KERSHAW
User Custom Pizza: Easy to order application for
Android and iOS phones for customized pizza
Changing the brand name from BSB INC to Pizza
Nation
Expansion of kitchen, purchase more number of
bicycles and increase operation hours
Rent empty store within campus premise
CONCLUSION - ☺
Volume
New offerings and
variants
New operation timings
Inexpensive offerings Quick Service Customer ease and reliability
Operations Management - BSB INC - Case Study

Operations Management - BSB INC - Case Study

  • 1.
    OPERATIONS MANAGEMENT Made by:Isham, Hemant, Alex, Rahul,Vaisishtu, Latifa and Sankalp
  • 2.
  • 3.
    BSB, INC Operates ona national level to cater organizations Serves 6,000 students and 3,000 faculty members at university
  • 4.
  • 5.
    UNIVERSITY  Walking university– dorms, food- facilities, branch bank, classes, bookstores, barber shop and sundry shop  Cafeteria – located in the ground floor  Dogwood – located in the second floor  Grill – located in the corner of recreational building
  • 6.
    STUDENTS FOOD CONSUMPTIONSURVEY Renee Kershew – Manager of food-services
  • 7.
    WHY STUDENTS CONSUMEFOOD OFF- CAMPUS? Insufficient variety of dishes in the course menu Timings are inconvenient
  • 8.
  • 9.
    RESPONSETOTHE SURVEY  Installeda pizza oven and allocated extra space for pizza ingredient storage  Renee have decided to limit the toppings on the pizza in order to minimize lead time  Initiation of delivery service free of charge through out the entire campus  Hired assistant personnels to deliver pizzas by means of bicycle
  • 10.
    GOOD PART  Steadyincrease in sales over the past 10 months along with profit  Customer satisfaction level is high for reasonable price and quick delivery service
  • 11.
    BAD PART  Increasein demand – puts strain on the workers as facilities are insufficient to meet the demand  Delay in delivery due to high number of orders  Sales is on loss  There is increase in off menu orders
  • 12.
    WHYTHE BAD PART? BSB, INC basically reached its maturity level in its product life cycle  It became difficult to serve large orders  The students are used to pizzas that was offered to them.Therefore, no new variety offered to the students  Rise in demand led to increase in delivery times
  • 13.
    WORST SCENARIO!  Announcementof three major food-service providers in new food court  Now main concern of Kershaw is the entry of Pizza Hut – direct competitor of BSB, Inc
  • 14.
    AGAIN GOOD NEWSTO IT! PizzaHut in the campus will be having certain limitations:  Limited selection of pizzas  Will not accept orders via phone and offer delivery service
  • 15.
    DOES BSB, INCENJOY ANY COMPETITIVE ADVANTAGES OR DISTINCTIVE COMPETENCIES? QUESTION
  • 16.
    COMPETITIVE ADVANTAGES AND DISTINCTIVECOMPETENCIES  More close distance to the customers as it will allow quicker delivery  Location of the facilities – as it is in the campus itself(not in separate food court)  More experienced in terms of market knowledge
  • 17.
    RESULTS OF COMPETITIVEADVANTAGES AND DISTINCTIVE COMPETENCIES  Quick delivery  Inexpensive way of delivering as no need of using motorbikes  More knowledgeable about the needs of the customers
  • 18.
    WHAT IMPACT WILLTHE NEW FOOD COURT HAVE ON KERSHAW’S PIZZA OPERATION? WHAT COMPETITIVE PRIORITIES MIGHT SHE CHOOSE TO FOCUS ON NOW? QUESTION
  • 19.
    ANSWER Price Convenience Pizza chargedat a reasonable rate. This allowed competing with its off-campus suppliers Order was delivered at correct time. Mainly due to: • Preparing of pizzas before receiving order • Delivering by means of bicycle Order qualifier OrderWinner Kershaw’s choice of competence as well as her competitive priorities:
  • 20.
    WHAT IMPACTWILLTHE NEWFOOD COURT HAVE ON KERSHAW’S PIZZA OPERATIONS? WHAT COMPETITIVE PRIORITIES MIGHT SHE CHOOSETO FOCUS ON NOW? QUESTION
  • 21.
    IMPACT OF NEWFOOD COURT ON BSB MORE COMPETITION MONOPOLY IS LOST. ANSWER
  • 22.
    ADVANTAGES AND DISADVANTAGES ADVANTAGESDISADVANTAGES Quick delivery service New competitors have a Greater advantage of there Brand name Limited variety of service More variety of food service. (Fast food) Standardized menus of large franchises such as pizza hut Same location
  • 23.
    NEW COMPETITIVE PRIORITIESFOR BSB Flexibility of Product Flexibility of Volume Flexibility of Operation Inclusion of royal salad To compete with Dunkin Donuts – Introduce dessert such as Sundae or cookies To compete withTaco Bell - Introduce sandwiches e.g. mathafi porotha Increase the production of pizza in order to meet the increasing demand Increase the number of operating hours at the times when Pizza Hut is closed. i.e. Operating hours should be until 3 am morning
  • 24.
    IF SHE WERETO CHANGE THE COMPETITIVE PRIORITIES FOR THE PIZZA OPERATION, WHAT ARE THE GAPS BETWEEN THE PRIORITIES AND CAPABILITIES OF HER PROCESS? HOW MIGHT THAT AFFECT HER OPERATING PROCESSES AND CAPACITY DECISIONS? QUESTION
  • 25.
    GAPS BETWEEN PRIORITIESAND CAPABILITYTO PROCESS  For flexibility of Product: Very few to no workers specialized in doing the proposed tasks.  For flexibility of Volume: Comparing to the demand, space for kitchen equipments are insufficient.  For flexibility of Operation: Other than increase in variable costs, there is no gaps
  • 26.
    EFFECTS ON OPERATINGPROCESSES AND CAPACITY DECISIONS  For flexibility of Product: As additional offerings are increased this will effect delivery service and cost as additional workforce must be employed.  For flexibility of Volume: As there is increase in demand, more amount of space will be required.  For flexibility of Operation: Cost of fuel, electricity bill and pay for overtime to the workers used in extra operation hours may exceed operation budget. In short – the above points will lead to increase in the price of pizzas!
  • 27.
    WHAT WOULD BEA GOOD FLOW STRATEGY FOR KERSHAW’S OPERATIONS ON CAMPUS TO MEET THE FOOD COURT COMPETITION? QUESTION
  • 28.
    SWOT ANALYSIS There arecouple of internal(strengths and weaknesses) and external(opportunities and threats) influence associated with BSB, INC analysed as follows: Strength Weakness Inexpensive rate: Offers students affordable rate of the meals Lack of Variety: Students got bored of trying the same meals on daily basis Market Knowledge: BSB is having experience for more than 10 years in offering its service to the targeted market sectors Lack of Capacity: Puts strain on the existing kitchen equipments as well as the workers. Customer Ease: Allows to make delivery via phone
  • 29.
    SWOT ANALYSIS -CONTINUATION Opportunities Threats Limited Menu: It is expected that Pizza Hut will offer limited variety in its course menu Brand Recognition: Pizza Hut is well known through out the world from 4 – 5 decades.This can be threat to BSB, INC Hours of operation: Pizza Hut is not open at very late night. Customer Service: Dunkin Donuts and Taco Bell provide ready made fast food and desserts that matches the expectations of the students.
  • 30.
    BASIC OPERATION STRATEGY- PROCESS Customer Needs Corporate Strategy Operation Strategy Decisions on Processes and Infrastructure
  • 31.
    GOOD COMPETITIVE OPERATION STRATEGYTOBETAKEN BY KERSHAW User Custom Pizza: Easy to order application for Android and iOS phones for customized pizza Changing the brand name from BSB INC to Pizza Nation Expansion of kitchen, purchase more number of bicycles and increase operation hours Rent empty store within campus premise
  • 32.
  • 33.
    Volume New offerings and variants Newoperation timings Inexpensive offerings Quick Service Customer ease and reliability