LA MONTANA RESTAURANTISLAMABAD.

Operation Management – Term Project

Objectives:

1. Introduction / Structure,

2. Capacity Preferences,

3. Location Preferences,

4. Productivity Measures,

5. Product / Process Selection,

6. Differentiation Strategy,

7. Environmental effects,

8. Recent Projects,

9. Future Outlook,

10. Recommendations.

1. Introduction:

La Montana is offering grand natural visit of Margalla Hills and Panoramic View of Capital City.

Just 10 Km drive way from heart of Islamabad, Very Adventurous and lovely track up to PIRSOHAWA.

La Montana Now offering party events, meetings and wedding arrangements.

Open balconies, Halls for all activities and Large parking area.

La Montana has added taste to the natural greatness, Making the Hill top most attractive for tourists and People seeking stunning natural beauty and mouth watering taste at one Place.

Organizational Structure “Functional”:

General Manager

Operations Manager

HR manager Accountant

Cash Personnel

Security Store

Food & Beverage Manager

Kitchen

Chefs

Cooks

Dish washers

Supervisor

Floor Manager

Stewards

2. Capacity Preferences: La Montana is increasing their Capacity with

Preference of bringing more guests into the business to achieve competitive advantage.

Current Capacity The current capacity of La Montana restaurant is about 800

customers at area of max 15000 Square feet. There are three halls in la Montana:

1 - Sapphire Hall, 2 - Sapphire Patio Hall, 3 - Emeral Deck Hall.

Sapphire Hall Sapphire Hall Capacity 300 guests and Area is 5000 square

feet.

Sapphire Patio Hall

Sapphire Patio Hall Capacity is 250 guests and Area is 5000 Square feet

Emeral Deck Hall

Emeral Deck capacity 250 guests and Area is 5000 Square feet.

3. Location Preferences: Pir-Sohawa is Islamabad’s highest tourist Spot according to Wikipedia: http://en.wikipedia.org/wiki/Pir_Sohawa

PIR-SOHAWA is ranked at 6th number in Pakistan by TRIP ADVISIOR.Com

http://www.tripadvisor.com/Attraction_Review-g293960-d2435190-Reviews-Pir_Sohawa-Islamabad.html

3. Location Preferences: La Montana is located at 3000 feet above sea level and it is attracting

Customer due to its cool and unique climate.

Pir-Sohawa is the most famous and romantic place to visit for newly married couples and Students.

They have started a new project in December 2011 to exploit this unique location.

The main objective is to increase current capacity to 1200 guests, to avoid loosing business and gain higher market share.

3. Location Preferences

4. PRODUCTIVITY MEASURES

La Montana is offering a list of over 250 meals (Products).

They are serving about 200 customers daily.

This number is increasing in week ends to 285 average.

4. PRODUCTIVITY MEASURES

Sale Customer Customer / Day

Jan 4,256,789.00 7026 234.2005210

Feb 5,255,678.00 6925 230.8333333

Mar 5,087,231.00 9125 304.1666667

Apr 5,183,250.64 8425 280.8333333

May 6,276,458.92 8756 291.8666667

Jun 5,448,987.00 9125 304.1666667

In order to calculate productivity, we need to explore Output/Input.

4. PRODUCTIVITY MEASURES:S.No Particulars January February March April May

1 Salaries 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2 Daily & Misc Salaries 3,600.00 3,600.00 3,600.00 3,600.00 3,600.00 3 Staff Entertainment 27,000.00 30,000.00 33,000.00 36,000.00 39,000.00 4 Rent 70,000.00 70,000.00 70,000.00 70,000.00 70,000.00 5 Depreciation 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 6 Printing & Stationary 18,000.00 19,000.00 20,000.00 21,000.00 22,000.00 7 Medicines 1,500.00 1,000.00 500.00 - 500.00 8 Bank Charges - 1,500.00 - - 300.00 9 Frieghrt Charges 8,000.00 400.00 900.00 3,000.00 400.00

10 Packing Meterial 500.00 3,000.00 2,000.00 - - 11 Consumables 80,000.00 50,000.00 30,000.00 25,000.00 50,000.00 12 Misc Exp 10,000.00 5,000.00 3,000.00 8,000.00 6,000.00 13 Travelling 7,000.00 - 3,000.00 - - 14 Repair & Maintinance 60,000.00 72,000.00 35,000.00 4,000.00 51,000.00 15 Conveyance 300.00 500.00 700.00 1,500.00 200.00 16 Postage 500.00 - - - - 17 Bad Debts - - - - - 18 Telephone 10,000.00 12,000.00 11,000.00 13,000.00 15,000.00 19 Vehicle Running 150,000.00 130,000.00 130,000.00 150,000.00 110,000.00 20 Elec, Water & Gas 170,000.00 160,000.00 120,000.00 130,000.00 200,000.00 21 Staff Food 60,000.00 70,000.00 80,000.00 50,000.00 60,000.00

Total 2,726,400.00 2,678,000.00 2,592,700.00 2,565,100.00 2,678,000.00

4. PRODUCTIVITY MEASURES

Jan-12 Feb-12 Mar-12 Apr-12 May-12 PKR -

PKR 1,000,000.00

PKR 2,000,000.00

PKR 3,000,000.00

PKR 4,000,000.00

PKR 5,000,000.00

PKR 6,000,000.00

PKR 7,000,000.00

Sale(output)

Production Cost(input)

4. PRODUCTIVITY MEASURES

In case of La Montana, and according to our available data, we will calculate ratio of sales/operating expenses “Profitability”.

Average month sales: Rs 5,183,250. Average month expenses: Rs 2,902,900.

April = 5,183,250 / 2,565,100 = 2.02 = 202 %

5. Product & Process Selection Preferences:

The product selection is mainly based on Customer expectations and seeking competitive advantage over Monal restaurant as well.

As Restaurant industry offers different food products is directly affected by the strength of the kitchen staff and Capacity. The product is selected carefully by the chiefs and stewards.

5.1 Product Selection Preferences:

- Product is selected according to the availability of the raw material as well.

- For example Sea food is available in Karachi and Islamabad, La Montana keep tracking the given prices by the suppliers at specific time.

- The availability of raw materials in the store and inventory is analyzed before selecting the product.

5.2 Process Selection & Preferences

It starts with the arrival of the guests where they are welcomed in professional manner by the two Guest relation officers and guiding them to their reserved tables.

Often is encouraged to visit different places in the restaurants with little briefing about the natural beauty of the Islamabad from 3000 feet above sea level.

Then the Floor manager comes to the table and is introduced by the guest relation office, the floor manager monitored by the floor supervisor who then gives the menu and take order from the guests.

Process Selection & Preferences

Process Selection & Preferences

The order is moved to the main Counter where he is given the Kitchen Order Token (KOT), which is the authority for Kitchen to prepare food and deliver on time.

Process Selection & Preferences

The KOT consist of different receipts for every BAR in the Kitchen, As shown for Pakistani Bar separate token, Tandori Bar & Bar (drinks) tokens.

Tokens are issued separately to help smoothing and speeding the operations.

Process Selection & Preferences

The normal time, from order taking to serving food, is 20 to 25 minutes.

The guest’s feedback and complaints are highly appreciated in La Montana where they are given short questionnaires for improving their services.

6. Differentiation Strategy:

La Montana has recently opened its corporate banquet and conference Sapphire hall offering 300 guests capacity with high regulation multimedia projectors along with Wi-Fi and sound system available for different national and multinational companies where they can enjoy comfortably their business meetings.

6. Differentiation Strategy:

La Montana offers 60 different items Silver buffet service to all customers especially for wedding and dinning programs.

6. Differentiation Strategy:

The staff is highly trained and Hospitable . Operations classes are conducted at the end of every month

inviting different high profile hospitality professionals to ensure the operations are carried out at international standards levels.

7. Effects on Environment

The restaurant annually consumes roughly 500,000 kilowatt hours of electricity, 20,000 thermos of natural gas and 800,000 gallons of water.

Using the latest EPA carbon equivalents, that amounts to 490 tons of carbon dioxide produced per year per restaurant, PG&E estimates.

Restaurants produce far more garbage on a daily basis than most other retail businesses.

Typical restaurant generates 100,000 pounds of garbage per location per year, as the Green Restaurant Association estimates.

7. Effects on Environment

La Montana has signed a contract with sub contractor who is taking the trash of the restaurant on daily bases.

La Montana has discouraged the use of plastic bags but giving take away food in paper packing to reduce the negative impact of the plastic bags on our environment.

8. Recent Projects: They have started the new project of increasing the capacity in December

2011.The main objective is to ensure La Montana has capacity to serve more guests in the future.

The New Project is expected to be completed by 14th August later in the year. This New hall will be able to accommodate 400 more guests covering Area of 9000 Square feet.

9. Future Outlook of La Montana

La Montana has planned to build Kids Park with Parking area of the restaurant Where Kids can enjoy their time and have fun with other kids of different families.

The Park will offer different play pin games with 3D animations to enjoy themselves in a perfect environment.

10. Recommendations:

- Dress code should strictly be implemented and violator should be fined and given official warning letter from HR office.

- The process selection is complicated and time consuming especially with business customers.

10. Recommendations:

- The floor supervisor should always be standing at doors on the available dices to welcome new guests throughout the working hours.

10. Recommendations:

- There should be separate order taker machine in Kitchen in every Bar to help in smoothing operations at the La Montana which can increase productivity through using higher capacity.

- Order should be send from main counter to respective ‘Department’ of the kitchen immediately.

10. Recommendations:

- Safety measures should be improved to avoid negative incidents.

- The Kitchen hygienic environment should be improved to keep highest standards for guests health as primary task.