This document discusses Pizza Hut's process improvement efforts. It begins with identifying issues customers have reported, such as unappealing new menu items and slow service. It then outlines Pizza Hut's systematic approach to address these problems, which involves defining the scope, identifying opportunities, redesigning processes, documenting improvements, and evaluating performance. Various charts and quotes are provided about documenting processes, analyzing customer feedback, considering constraints theory, and linking capacity decisions to supply chain planning. The overall goal is to use data-driven process changes to improve profitability.

1. Welcome To
Our Presentation

2. • The new menu items have failed to attract
consumer.
• Rising competition underlines Pizza Hut as
consumer’s for greater convenience.
• people are becoming more health conscious.
Problems

3. Solutions

4. Systematic Approach of
Pizza Hut

5. - DAVE RAMSEY
“People are in such a hurry to launch their
product or business that they seldom look at
operations from a bird's eye view and they
don't create a systematic plan.”

6. Pizza Hut
Define
scope
Identify
opportunities
Redesign
Process
Document
process
Evaluate
performance
Implement
Changes

7. “ I think it's important to have some
documentation of the past. Lack of
documentation is becoming a problem for
you. ”
- Henry Rollins
Documentation Process

8. Process Map of Pizza Hut

9. Service Blueprint of Pizza Hut

12. Sr. No. Issue Type Frequency Percentage Cumulative frequency
1 Discourteous Server 64 52.89 52.89
2 Slow Service 24 19.83 72.73
3 Cold food 8 6.61 79.34
4 Cramped table 7 5.79 85.12
5 Smoky Air 4 3.31 88.43
6 Submissions overload 3 2.48 90.91
7 Poor environment 3 2.48 93.39
8 Poor Pricing 2 1.65 95.04
9 Others* 6 4.96 100
Total 121 100 100

13. 0.00
20.00
40.00
60.00
80.00
100.00
120.00
0
10
20
30
40
50
60
70
Responses

16. “If some actress thinks she is excellent and
she can dance, it's her choice. I do what I
want to do, and I set my own benchmark. I
will never compare myself with anyone.”
-Preity Zinta
Redesigning Process

18. Economies of scale and Diseconomies
of scale
• Spreading fixed cost
• Reducing construction cost
• Cutting costs of purchased materials
• Finding process advantage

19. Theory of constraint
So what is the ultimate goal of most
manufacturing companies? To make a profit –
both in the short term and in the long term.
The Theory of Constraints provides a powerful
set of tools for helping to achieve that goal,
including:
The five focusing step & Thinking Process

20. Five Focusing steps

21. Thinking Process
The Thinking Processes are used to answer the
following three questions, which are essential
to TOC:
• What needs to be changed?
• What should it be changed to?
• What actions will cause the change?

22. Utilization
• Overtime
• Extra shifts
• Overstaffing
• Temporary reduced maintenance activities
Avg. output rate
Utilization= -----------------------------× 100 %
Maximum capacity

23. Linking capacity and other decision
Capacity decision should be closely linked to
process and supply chain throughout the
organization.

24. Systematic approach to long term
capacity decision
• Long term capacity decision include weather
to add new plant or warehouse.
• Reduce the number of existing one.
• How many workers are needed to staff a given
process.

25. Four step of identifying capacity
decision
• Estimate future capacity requirement.
• Identify gaps by comparing requirement with
available capacity.
• Develop alternative plan for reducing the
gaps.
• Evaluate each alternative, and make a final
choice.