food industry-pom pres
TRANSCRIPT
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FOOD INDUSTRY
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PRODUCTION AND
OPERATIONS
MANAGEMENT
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AN OVERVIEW
About the industryMajor players
MCDPizza hutDominos PizzasConclusion
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THE INDUSTRY
World's fastest growing food types.People buy fast food because it's cheap, easy
to prepare, and heavily promoted In India alone the fast food industry is
growing by 40% a year.Because of the availability of raw material
for fast food, Global chains are floodinginto the country.
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MAJORPLAYERS IN FAST FOOD
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Started as drive in restaurant by two brothers,Richard and Maurice McDonald in California, in1937.
Used assembly line procedures in their kitchen formass production.
Speed, service and cleanliness became the critical
success factors of the business.Currently McDonald's operates in 121 countries &
having more than 30000 restaurant and serving53 Million customers everyday.
MCDS HISTORY
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Veg-Menu
Bevereges
Non-Veg Menu
Frozen-Deserts
PRODUCTS
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VEG MENU
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NON- VEG MENU
Chicken Maharaja Mac
McChicken
Fiet-O-Fish
Chicken Mexican Wrap
Chicken McGrill
Chicken McCurry
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BEVERAGES
Cold Coffee
Ice Tea
Soft Drinks
Mc Shakes
Hot Serves
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FROZEN DESSERTS
Soft Serve Cone
Mc Swirl
Soft Serve
Flavor Burst
Floats
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Supply Chain
Overview Cold ChainLocalSourci
ngSuppliers
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Vista Processed Foods Pvt. Ltd. -Supplier of Chicken and Vegetable
range of products.
Separate processing lines forchicken and vegetable foods.
Capability to produce frozen foodsat temperature as low as -35 DegreeCelsius to retain total freshness. International standards, procedures
and support services.
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Radhakrishna Foodland - DistributionCentre.
providing the entire range of servicesincluding procurement, quality inspection,storage, inventory management, deliveries,data collection, recording and reporting.
Salient strengths are:A one-stop shop for all distributionmanagement services.
Dry and cold storage facility to store andtransport perishable products attemperatures up to - 22 Degrees Celsius. Effective process control for minimumdistribution cost.
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Enhancing its efficiency & affectivity level byworking in different areas such as:
continuous improvement quality of goods and servicestraining customer satisfaction.
TQM
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Product Quality Quality improvement of its goods by improving
ingredients and nutrients of the food stuff.For eg: allergen information into the ingredientstatement for each menu item, Popular kids mealchoices etc.
The nutrition information is derived from testingconducted in accredited laboratories, publishedresources, or from information provided fromMcDonalds suppliers
CONTD..
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Continuous Improvement employee empowerment, benchmarking a
quality standard & maintaining just intime inventory system etc.
Customer Satisfactionincreased level of satisfaction of the
customers
CONTD..
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COMPANY OVERVIEWA subsidiary of Yum! Brands, Inc., the world's
largest restaurant company.From the humble beginnings of Frank & Dan
Carney in 1958, Pizza Hut has grown tobecome the biggest pizza company in theworld!
Approximately 34,000 restaurants, delivery-carry out units, and kiosks in 100 countries.
Annual sales around $10 billion.
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PRODUCTS
Pizzas in four different sizes: personal (anindividual serving), small, medium andlarge.
A variety of toppings plus "specialty" styles,including Meat Lovers, Pepperoni Lovers,Cheese Lovers, Veggie Lovers, DoubleCheeseburger, Supreme, Super Supreme.
Garlic cheese bread, pasta, bread sticks, cheesesticks, cinnamon sticks, mozzarellasticks, onion rings, chicken wings.
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PRODUCTIONS/OPERATIONSEnding inventory policy8am-11am productions 11am-3am customers are welcomeProduction:
1. addition of different spices andyeast to the flour2. different sizes of dough3. baking of dough
Pizza huts serving time never exceeds up to 20minutes.
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STEPS IN PIZZA PRODUCTION Identify toppingsSaucing proceduresUsing quality ringsLayout method overviewPlacement ofPizza in the oven In-store production, time conceptNeed to give priority to home delivery tickets
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CONTD.. Hands-on practice of making pizzas
Making half-n-half pizzas, single topping pizzas.
Using the Peak Revenue Period Checklist
Explain the service times of all items served by thestation
Closing of the make table
Storage of left over toppings
Cleaning procedures Thawing charts usage and placing meats for thawing
Tracking wastages on the make table
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SUPPLY CHAIN MANAGEMENT
SCM
Direct
Pepsi Company
Buns suppliercompany
mineral watersupplier
IndirectMeat and poultry
market
Vegetable market
Sauce companies
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IMPROVEMENT IN SUPPLY CHAINPERFORMANCE
After the implementation of specialized software forcustomer satisfaction they have achieved:
1. Maximum return on their technology investment2. Provides the fastest time to value3. Enables them to work with a single vendor to reduce
integration and implementation issues4. Is built by experts on a foundation that expands as
their business grows
5. Rapid Time to Value6. Cost effective.By this way they have improved their supply chain
process.
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MEASURES OF SC PERFORMANCE Supply chain strategy must consider the potential
trade-offs existing between:
y Cost
y
Qualityy Quantity
y Service
But Pizza hut competes on cost and services basis.
TheirP
erformance measurement system is linked withall its suppliers or traders to achieve breakthroughperformance in satisfying the end users
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For home delivery 40 minutes
For regular customers 20 minutes
Order fulfillment
lead time
Supply Chain
Responsiveness
70% but errors are not from our side they are
from their side when they want to order
something else and ordered else.
Perfect order
fulfillment
95%Delivery
performance
Supply Chain
Delivery Reliability
PerformancePerformance
Metric
Performance
Attribute
SCOR: Customer FacingSCOR: Customer Facing
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MODES OF TRANSPORT
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TOTALQUALITY MANAGEMENT Quality management-most important for a food
chain.
Employees back-of-the-house i.e. the kitchenassistants are trained.
Extra classes in order to meet the quality standardsset by Pizza Hut around the world.
Total quality management department implementsquality standards.
Quality management staff , shift managers observewhether the quality standards are met or not.
To fulfil the quality standards.
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COMPANY OVERVIEW
Founded in 1960 by Tom Monaghan.
Dominos Pizza is the second largest franchised pizzachain in the U.S.A.
Operating a network of company-owned andfranchise-owned stores in the United States andinternational markets.
There are currently about 8,500 corporate and
franchised stores in all 50 states and 55 countries.
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OPERATIONS The deliveries of the company cover ten million miles
per week.
The company operates, 624 company-owned and
franchise stores. The operations of Dominos are classified into three
segments. These include domestic stores, domesticsupply chain and international.
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SUPPLY CHAIN MANAGEMENT Food ProductionPreparing and mixing fresh pizza dough is theresponsibility of a production team members.
Commercial Delivery and ServiceDelivery & Service drivers will drive a truck over an
established route to deliver products to Dominos Pizzastores. WarehouseEnsures that the customers receive each and every product
they order, every time they order it.Main areas of responsibility will be to load, unload andmove materials within or near the distribution centre.
Customer serviceCustomer Service Representative -taking incoming ordersfrom stores using a telephone and computer.
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QUALITY Domino's HeatWave delivery bags contain a patented
disc that is pre-heated electrically.
Retaining heat and dispersing steam are the chief
features of Domino's pizza packaging. More than 80% of the corrugated board used in their
pizza boxes is made from recycled paper.
Training and operations including career developmentand store check activities, through its 'FlawlessExecutions' department, is important element of thecompany's TQM.
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CONCLUSIONExpertise in product development, sourcing
practices, quality standards, service levels andstandardized operating procedures in
multinational restaurants, a strength thatthey have developed over years of experiencearound the world. With the change in trend
there is also need for improvement and up
gradation of technology in food sector.The home grown chains have in the past few
years of competition with the MNCs, learnt afew things but there is still a lot of scope for
improvement