Subway follows a make-to-order production process where sandwiches are assembled after receiving a customer's order. Key aspects of their operations include maintaining buffer inventories of various ingredients and condiments to allow independent functioning of production stages. The single source of sauces acts as a bottleneck that could limit production. Inventory management aims to meet demand variations while reducing costs through analyzing reorder points and lead times.

1. PROJECT REPORT
ON
SUBWAY OPERATIONS
PRESENTED TO:-
ANUSHA SREERAM
PRESENTED BY:-
DEBAMALYA MOHANTY
AFZAL USMANI
SHASHI KAUSHAL
SHUBHAM SINGH
NARESH MALOO
SONAM ANAND

2. ACKNOWLEDGEMENT
We take this opportunity to express our profound gratitude and deep regards to our
guide, Professor Anusha Sreeram, IBS-Hyderabad, for her exemplary guidance,
monitoring and constant encouragement throughout the course. The knowledge
and guidance given by her time to time shall carry us a long way in the journey of
life on which we are about to embark.
We also take this opportunity to express a deep sense of gratitude to our Company
Mentor Mr. ArjunRao, Store Manager, Subway, for his cordial support, valuable
information and guidance, which helped us in completing this task through various
stages.
Debamalaya Mohanty
Afzal Usmani
Shashi Kaushal
Shubham Singh
Naresh Maloo
Sonam Anand

3. INTRODUCTION
The SUBWAY system is committed to providing a variety of great tasting,
nutritious food choices while reducing our environmental footprint and creating a
positive influence in the communities we serve around the world.
Development of SUBWAY in India
Operating from its main office located in Milford, Connecticut, the quick service
restaurant chain has five regional centers to support its expanding international
operations. The Asian centre has been growing at a rapid pace and India as a
country occupies a pivotal spot on this expansion map. Subway Systems India Pvt
Ltd opened its very first restaurant in 2001 in New Delhi and has swiftly grown its
operations to 403 operating restaurants in 68 cities across India.
Although it is a global brand with a menu that is relatively the same around the
world, Subway restaurant takes great pride in honoring and respecting local
traditions and food preferences and has earned a reputation for offering a healthier
alternative to traditionally fatty and greasy fast food.
Subway restaurant in India serve no beef or pork products and have an expanded
selection of vegetarian choices. Popular sandwiches, both local and international
favorites, include Veggie Patty, Paneer Tikka, Aloo Patty, Roasted Chicken,
Chicken Teriyaki, Turkey, and Tuna.

4. MENU
Favourites Toasties
Tuna Chesse Toastie
Chicken Ham Pepperoni Toastie
Roasted Chicken
Chicken Teriyaki Breakfast
Cheese and Egg
Traditional Western Egg & Cheese
Italian B.M.T. Chicken Ham & Egg
Subway Club ™
Turkey Salads
Turkey & Chicken Ham Veggie Delite
Roasted Chicken
Other Favourite Subs Tuna
Chicken Tikka Turkey
Chicken Seekh
Chicken Tandoori Desserts
Rich Chocolate Truffle

5. Vegetarian Subs
Veggie Delite ™ Cookies
Veggie Patty Oatmeal
Paneer Tikka Single Chocolate
Veg. Shammi Double Chocolate
Aloo Patty
Corn & Peas Beverages
Cold Coffee
97% Fat Free Subs Iced Tea
Chicken Teriyaki Diet Coke
Chicken Ham Snapple
Roasted Chicken Packaged Cold Drinking Water
Turkey Coca Cola
Subway Club Sprite
Chicken Tikka Fanta
Turkey & Chicken Ham
Veggie Delite ™
Veg. Shammi

6. Waiting line analysis is the mathematical study of waiting lines, or queues. In
waiting line analysis a model is constructed so that queue lengths and waiting
times can be predicted. Waiting line analysis is generally considered a branch
of operations research because the results are often used when making business
decisions about the resources needed to provide service.
Utilization is the proportion of the system's resources which is used by the traffic
which arrives at it. It should be strictly less than one for the system to function
well. It is usually represented by the symbol . If then the queue will
continue to grow as time goes on. In the simplest case of an M/M/1
queue (Poisson arrivals and a single Poisson server) then it is given by the mean
arrival rate over the mean service rate, that is,
where is the mean arrival rate and is the mean service rate. In general, a lower
utilization corresponds to less queuing for customers but means that the system is
more idle, which may be considered inefficient.
Line structure: The waiting line is of a multichannel, single phase structure.
During peak hours subway’s waiting line structure takes the form of
Multichannel, multi phase

7. Number of lines: In subway, there are multiple lines in the veg counter and
single line in non-veg counter.
 On weekdays 1 customer arrives every 6 minutes and it takes 5 minutes to
serve a customer.
 On weekdays in peak hours (i.e., 1 pm to 3 pm and 7 pm to 10 pm)
customers arrive at the rate of 20 per hour and they are served at the rate of
15 per hour.
 On weekends 28 customers arrive every hour and served at the rate of 30
per hour

8. Weekdays Peak hours
on week days
Weekends
Arrival
rate,(λ)
10 20 28
Service
rate,(μ)
12 25 30
Average
utilisation of
teller( λ/ μ)
0.833 0.80 0.933
Average
number in
the waiting
line
4.17 3.2 13.07
Average
customers in
the system
5 4 14
Average
waiting time
in line
0.417 0.16 0.467
Average
waiting time
in the system
0.50 0.20 0.50

9. Made To Order (MTO)
 Start production when customer orders.
 Advantage:- No finished goods inventory.
 Disadvantage:- Intermittent production.
 Key performance measures.
 Time.
 Orders completed on time(or late).
 Quality measures.
 Choice of 22 Made-to-order variety.
 Each sandwich is customized just the way our customer want it.
 Gourmet bread baked daily. The aroma of baking bread is a great sales
enhancement.
 Select Sauces. Special sauces, that make great sandwiches taste even better.
 Variety of toppings.
Customer
Production
Customer
Order
Product

10. PROCESS ANALYSIS
A process can be defined as "a logical series of related transactions that converts input to
results or output" The process we are considering is a "business process," which can be
defined as "a chain of logical connected, repetitive activities that utilizes the
organization's resources to refine an object for the purpose of achieving specified and
measurable results or products for internal or external customers."
Process analysis is an approach that helps managers improves the performance of their
business activities. It can be a milestone in continuous improvement
Ordering a sandwich from Subway can be more complicated than the average person
would think. There are certain steps that need to be looked at to get that perfect sub.
Step 1:- Make decisions regarding which type of burger you want to eat before you
approach the counter
Step 2:- Choose the type of bread you want to have when you eat the burger. As
subway offers you with 6 different variants of breads
 Italian
 Hearty Italian
 Honey oat
 Oregano
 Multi grain
 Parmesan
After you have selected the bread you want to have you are ready to move to the next
step
Step 3:- Here you have to choose the size of the burger which you want to eat
You have basically two choices i.e. whether 6 inches or the other which subway calls as
footlong burger which is nearly 12 inches
Step 4:- Here you have the option to select the extras if you want to have any in order to
make your burger more delicious like extra meat, cheese strips or strips of crispy bacon
to add more flavor.

11. Step 5:- After you have done this , you have the option to make your burger more
customized with the veggies of your choice like
 Lettuce
 Tomatoes
 Cucumber
 Pickles
 Pepper
 Olives
 Jalapenos
 Red onions
Thus you can change your burger from classic to exotic to meet your taste.
Step 6:- When it comes to ingredients sauces also play an important role so here you can
choose the type of sauce you want from the below options
 Sweet onion
 Honey mustard
 Mayonnaise
 South west
Adding these sauces thus takes your burger to taste more delicious
Step 7:- Last step may not sometimes be the least. Thus here you can opt for favorite
combination of subs, side and drinks which you want to have
For ex:- lipton ice tea, colddrinks etc..
Also the different types of special burgers at Rs 95/- which they offer on each day is
different like
 Monday chicken seekh
 Tuesday paneer tikka
 Wednesday roasted chicken
 Thursday aloo patty
 Friday tuna
 Saturday corn and peas
 Sunday chicken ham

12. =
= + + =
BUFFERING:- It refers to the storage area b/w stages where the output of one
stage is placed prior to being used in the downstream stage. It allows the stages to
run independently
The buffers here in subway are
1. Bread – kept in stock for one week
2. Onion, tomatoes, cucumber- 50 kg
3. Olives, jalapenos- according to the requirements
4. Sauces
BOTTLENECK:- A resource that limits the production of the final product.
Here in case of subway the bottleneck are the sauces because they are provided by
the single vendor XYZ (name not disclosed ) in the entire country and if this
vendor doesn’t supply the sauces all the subway outlets will get closed.
MAKE TO ORDER:- Subway follows Make to order policy,i.e. only after the
order is received the burger is prepared accordingly whether it is a customized one
or a regular one from the offerings.
INDULGE VALUE HEALTH SUBWAY

13. FLOWCHART OF THE ENTIRE PROCESS
NO
YES
ENTER SUBWAY
REACH THE COUNTER
CHOOSE
SIZE
CHOOSE
SAUCE
CHOOSE
VEGGIES
CHOOSE
EXTRAS
CHOOSE
BREAD
CHOOSE
DRINKS
PAYOUT AT THE COUNTER
CHOOSE
NON
VEGGIE
CHOOSE
SPECIAL
ORDER

14. Scope of project

15. Inventory Management at SUBWAY
With inventory we refer to items that contribute to or become part of firm’s output.
Inventory analysis helps the firm to answer some basic and the most important
questions:
(1) When items should be ordered?
(2) How large the order should be?
Some of the Inventories involved in the Subway are as follows:
6 variants of breads, 10-15 varieties of vegetables, 4 types of sauces, fish, chicken,
paneer, ketchup sachets, tissue papers etc.
Purposes of inventory management:
1. To meet variation in product demand: They always have to maintain a
certain level of inventory so that they do not fall short of any of the raw
material needed to make subs. They first analyze the demand of the
particular products and then decide upon the materials required to make
them and order accordingly.
2. To reduce the cost: They also have to manage their inventory so as to reduce
the cost incurred in ordering, storing them. Some of the inventories get
easily deteriorated so they have to be ordered in less quantity even if they
get discount on big quantities. Here in Subway most of the inventories are
perishable so they need to be more precise while ordering
3. To provide a safeguard for variation in raw material delivery time: From
ordering till delivery of the raw material there is certain time gap called lead
time in technical language, should also be looked upon. Suppose if the lead
time is 2 days then inventories have to be ordered 2 days before they get
exhausted so that at any point of time we are not short of raw materials.
Reorder point: the point at which we issue an order for another Q units. Suppose
if the demand is 4000 units and our daily usage is of 10 units. Our order size is of
100 units and lead time is 2 days. Initially we will order 100 units and after that
every time the inventory reduces to 20 we will place an order for another 100 units.
This point where we place an order again is called reorder point.

16. Lead time for vegetables= 3 days
Lead time for breads= 2 days
Lead time for sauces= 5 days
Generally Subway places order for vegetables on every Friday and receives the
order by Monday.
They need around 100-110 k.g. of Tomatoes every week, which means around 15
k.g daily requirement of tomatoes is there. So they need to reorder tomatoes
whenever they are left with only 40-45 k.g. of Tomato. At this point they again
place an order for 100 k.g. of Tomato.
Reorder point= average daily demand * lead time
= 15 * 3
= 45 k.g.
Similar is the case with other vegetables also. Like for Cucumber, weekly
requirement is 60-70 k.g. i.e. 10 k.g. each day. So reorder point is= 10 * 3 = 30 k.g.
Red Onion’s weekly requirement is 60-70 k.g. reorder point= 10 * 3= 30 k.g.
Breads, they order after every 2 days. They have to be ordered so frequently
because we cannot have much stock of breads as breads needed to be fresh.
Sauces, as discussed above are the bottleneck in the process. They are ordered
twice in a month.
Inventories like tissue papers are secondary inventories they are ordered in lump
sum.
Hence all the inventories should be managed such beside meeting the demand
there is minimum wastage and minimum cost of incurring those inventories.