Case StudyA Pizza Restaurant

Methodology adopted : Quality Function Deployment (QFD) or House of QualityProcedure followed : Define, Measure, Analyze, Improve, Control (DMAIC)

Step # 1: Define• What is the Problem?Abysmal performance of the company in the last 3 years in comparison with its initial 8 years as shown in the table below:

Attributes Initial 8 years Last 3 years

CAGR 40 % 5 %

Market Share 56 % 32 %

Stores at Loss 12 % 35 %

• What does customer want i.e. Voice of the Customer?Methods used to know the requirements of customer: Focused group discussions Customers' service inquiries database In-depth customer observation Structured or unstructured customer interviews Self-completing questionnaires Customers‘ complaint and compliment database Front-line staff feedbackIn our case the list of customer requirements was identified with online literature search and a brainstorming session with a group of friends.

Step # 2: Measure• What to measure?

Weightage: Quantifying the importance of different requirements of customers, on a scale of 0-10, in the customer’s perspective.

Rating of the Pizza Restaurant X: Asking the customers to rate the firm on these requirements on a scale of 0-5. Rating of the competitors (say A and B): Asking the customers to rate the nearby competitors on same requirements

on the same scale.

• How to measure?Using a structured questionnaire, ask pizza customers (say around 300) to rate the importance of their requirements and to compare the performance of the pizza restaurants with their “ideal pizza restaurant”. In this way it is possible to see whichquality characteristics are more important for meeting or exceeding customers' expectations. Also, the performance of different restaurants can be assessed competitively. The questionnaire can be filled through following modes:

Online – Social media platforms, websites, third party survey companies like surveymonkey Offline – Visitors, via delivery staff Hotline – Toll free number or IVRS

Step # 3: Analyze• What is the tool used to analyze?House of Quality: It provides a systematic approach to identify and prioritize the steps that are needed to be taken to improve the existing process, service or product successfully inculcating the voice of customer during the analysis.

House of Quality

Customer requirements (WHATs)

Relationship between WHATs and HOWs

Interrelationship between HOWs

Prioritized solutions

Technical descriptors (HOWs)

Prioritized Customer requirements

Step # 4: Improve

It involves implementing the steps for improvement in the same priority as derived in step # 3. In our case:

Priority 1: Cooking material – Consider changing the supplier or go for in-house material supply if possible

Priority 2: Facilities – Consider upgrading the infrastructure of the restaurant

Priority 3: Discounts – Right discounts at apt time (festivals, vacations etc) considering overall profit, Priority 4: Tie-ups – Look for a partner who can supply complementary food items at the restaurant on shared profit basis

Priority 5: Delivery Service – Hire more delivery staff and improve the reach of each outlet

Priority 6: Advertisement – Design creative marketing campaigns through mediums like TVF, organize competitions in DU colleges, consider crowd sourcing of other problems on different platforms

Priority 7, 8 and 9 (Automation, User Interface and Packing Quality respectively) – As these stand very low in the priority list, consider focusing on them only if the above steps don’t work

Step # 5: Control

How do we ‘hold the gains’ of our solutions?

• Periodic feedback about delivery service, quality, consistency, advertisement reach• Regular analysis of balance sheet of every store to see the impact of each solution as its implemented• Prepare contingency plans in case a solution fails• Check the conversion ratio of discounts into profit and market share• Keep an eye on the market image of tie-up firms

Kshitij Jain(11112020)

Saurav Garg(11112039)

Vikrant Yadav(11112054)

Deepanshu Saini (11117025)