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Operations Management Pizza Express

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Operations Management Pizza Express

  1. 1. 1 Presenters
  2. 2. OVERVIEW Overview Service Concept Strategy Overview Process Flow: Overview Process Flow: Seat Customer Process Flow: Treat Customer Process Flow: Feed Customer Process Flow: Exit Customer Restaurant Evaluation
  3. 3. Pizza Express, Oxford Street, Manchester Stunning Design Beautiful Music “Leave Happy” Excellent Food Unique Experience
  4. 4. Service Concept Service concepts/markets require differing approaches to service design/management (Roth et al 2003) The service concept is operationally defined as a portfolio of core and peripheral service elements Core services comprises of five elements: Peripheral services: Supporting facilities (physical and structural resources) Facilitating goods (materials, suppliers and merchandise) Facilitating information (service supporting information) Explicit services (experiential/sensual benefits) Implicit services (psychological benefits) Supplement the core service Provide additional benefits Enhance value Differentiate the core service Stunning Design Beautiful Music Excellent Food Unique Experience
  5. 5. Process Flow: Overview Seat Customer Treat Customer Feed Customer Exit Customer Meet and Greet Seat Customer Orders Drinks ProcessKeyActivities Serve Drinks Comforts Customer Offers Starters Orders Mains Serve Starters Serve Main Offer Drinks Check Satisfaction Order Dessert Bill Provision Customer Survey Music Décor Ambience Video School Pizza Making Experiences Exceptional Food (Exceptional Food and Unique Experience) Unique Experience (Beautiful Music and Stunning Design) Goals Namkung, Y and Yang, S (2010)
  6. 6. Process Flow: Seat Customer
  7. 7. • Focus is not only on time, but on ambience and experience (Lovelock and Gummesson, 2004) • The waiting environment influences waiting time satisfaction and overall evaluation of the service. (Kimes and Thompson, 2005) • Firms adopt strategies to match capacity/ demand to resolve service fluctuation problems (Bateson & Hoffman, 1999) • The waiting time has four aspects: objective, subjective, cognitive and affective (Kimes and Thompson, 2005): • Objective waiting time (stopwatch) • Subjective (customer estimation) • Cognitive (customer tolerance) • Affective (customer emotion) Process Flow: Seat Customer Seat Customer Treat Customer Feed Customer Exit Customer Meet and Greet Seat Customer Orders Drinks Theory • Focus remains on the food service • Customer experience enhanced due to ‘non-batch’ seating • Restaurant looks busy due to seating spread • Mix of fixed and flexible seating results in varied table size • Spread seating means more areas need to be maintained • Online reservations are not operational during busy periods • Limited waiting area results in potential loss of custom Benefits Issues ‘Waiting Area’
  8. 8. Process Flow: Treat Customer
  9. 9. • The Four V’s describes the typology of an operation (Slack, 2012) • Cost minimised due to capacity utilisation during busy periods • Non-varied menu offers increased control over process • Open kitchen improves the ambience • Expert forecasts are completed to assist inventory reconciliation • Inventory reconciliation process is not fully electronic and quite manual • Fresh ingredients require regular replenishment Process Flow: Treat Customer Seat Customer Treat Customer Feed Customer Exit Customer Standard order fulfilment cycle Single electronic order placement Central inventory reconciliation Busy/Quiet periods Food Menu is straight forward Pizza made in open kitchen Serve Drinks Comforts Customer Offers Starters Orders Mains Theory Standard MenuOpen Kitchen Benefits Issues
  10. 10. Process Flow: Feed Customer
  11. 11. • Slack et al (2012) suggested a Fixed Layout (Customer Service): • Demands high variety of tasks for staff • Creates high service mix and flexibility • Costs are generally high • A Cell Layout (Food Creation) offers cost and flexibility for relatively high variety operations (Slack et al, 2012) • Specific resources are assigned for different areas of a business (Malinconico, 2012) • Including health information drives innovation and improvement in quality of food being served (Jones, 2009) • Labour division able to efficiently deal with busy periods • Food creation forms effective production methods • Customer service can be tailored to customers/events • Food creation is limited to specific menu items • Customer service flexibility could lead to over-utilisation Process Flow: Feed Customer Seat Customer Treat Customer Feed Customer Exit Customer Serve Starters Serve Main Offer Drinks Check Satisfaction Order Dessert Theory Cell LayoutFixed Layout Benefits Issues
  12. 12. Process Flow: Exit Customer
  13. 13. • Customer should generally be included in the innovation process (Kelly and Storey, 2000) • Service development can be captured by customer involvement (Kelly and Storey, 2000) • Service firms should reduce the risk of being imitated and surpassed by competition (Thomke, 2003) • Customer satisfaction can be gauged • Service level is continued to (hopeful) next visit • Service able to be offered up to end of service encounter • Customers may occupy tables for long periods of time • Special events may be unable to be tailored to during busy periods Process Flow: Exit Customer Seat Customer Treat Customer Feed Customer Exit Customer Bill Provision Customer Survey Theory Cell Layout Benefits Issues
  14. 14. Restaurant Evaluation Team Empowerment •Local team is not empowered enough to make local marketing decisions •Local team has no authority over current maintenance issues (Automatic door issue) Capacity Utilisation •The capacity is under utilised during off peak periods (Monday & Tuesday) •Attempt to ‘lightly push’ ‘Exit Customer’ during busy periods Technology •Smartphone application to the customers for them to browse food menu and place orders, also enables restaurants to do focussed campaigns and cross-selling. Customer Loyalty •Loyalty card with RF ID could enable the database to identify the customer as soon as it enters the building. Stunning Design Beautiful Music Excellent Food Unique Experience
  15. 15. 15
  16. 16. References 1. An evaluation of heuristic methods for Determining the best table mix (2005), Kimes and Thompson 2. Agile Supply Chain capabilities: Determinants of Competitive Objectives (2004), Yusuf et al 3. Operations and Process Management (2012), Slack et al 4. The Key to Success for a Small Restaurant - Operational Process Flow (2012), Malinconico, J; 5. Service Failures in restaurants: Which stage of service failure is the most critical (2010), Namkung, Y; Yang, S; 6. Insights into service operations management: a research agenda, (2003), Roth, A. V., and Menor, L. J 7. New service development: initiation strategies ,(2010), Kelly, D. and Storey, C. 8. R&D comes to services: Bank of America’s path breaking experiments, (2003), Thomke, S. 9. New service development: learning from and with customers, (2004), Jonas Matthing, Bodil Sandén, Bo Edvardsson 10. Taking Up Space? How Customers React to Health Information and Health, (2009), Jones, C