8/7/2019 adeel ppt

1/29

8/7/2019 adeel ppt

2/29

2

Name and address of the Business:

Moccona Coffee Shop Happy FoodHappy People

Main Khayaban-e-Tauheed, (Commercial

lane) street 12, Karachi, Pakistan.

8/7/2019 adeel ppt

3/29

3

Nature of Business:

The Moccona Coffee shop owned byfive partners

The main aim of the business is to

provide varieties in snacks and coffeesand special diabetic menu that othercafes do not provide.

The overall plan of the business is tosatisfy customers by offering varietiesin coffee and snacks in a relaxingenvironment.

Its a partnership business with 3

8/7/2019 adeel ppt

4/29

4

Reason for being in the business

Since the trend has changed from tea tocoffee.

More western culture being adopted

Having coffee is considered to be afashion symbol.

The partners have the required

expertise

8/7/2019 adeel ppt

5/29

5

Aims and Objectives of the Business

SHORT TERM LONG TERM

To built two Thirteen Drive-thrulocations by the end of the third year andIce cream Parlor

Product Objective - Provide customersthe finest quality beverage in the mostefficient time.

Gross Margin of 45% or more by the endof the third year.

Economic Objective - Operate and growat a profitable rate through soundeconomic decisions.

Net After-tax Profit above 15% of Salesby the end of the third year.

Community Objective - Providecommunity support through customerinvolvement.

8/7/2019 adeel ppt

6/29

6

Description of Venture

Product: Our main focus is towards Coffee along with snacks,

salads and beverages. The Moccona shop wouldtry its best in providing a relaxing environmentfor its customers.

The Moccona coffee shop is to operate a two-prongstrategy. In the morning it will offer Mocconacoffee, Cappuccino, and breakfast muffins, donuts

and variety of pastries . After 9:30 A.M. the coffeehouse will strive to become a meeting place forvarious community groups, organizations,associations. At lunch time a place for collegestudents to meet after classes to provide thementertainment

8/7/2019 adeel ppt

7/29

7

INFRASTRUCTURE

8/7/2019 adeel ppt

8/29

8

Personnel and Equipment:

Employed 15 personnel altogether; inthe first phase of operation

Proper training would be given

Kitchen Equipments ,Furniture Fixturesand Fittings Machinery ElectronicAppliances Miscellaneous

Counters Tables and Chairs Coffee Grinders Entertainment system Generator

Shelves Couches and Sofas Espresso Machines projector Coffee tamper

Dishes Lamps Hot Drink Warmers laptops Milk Frothers

Coffee Mugs Braided Rugs Air pot Brewers Plasma television Thermo server Coffee

serving stand

Tea Cups and Sausages Wall papers andfountains

Dispenser Brewers Central AirConditioning

Automatic CappuccinoMachine

Cutlery Lighting Steamer Machines Computer andaccessories

Coffee Filters

Oven and stoves Curtains Automatic drip coffeemakers

Cash Counter

Refrigerators Plants and pots Steam Espresso Pots

8/7/2019 adeel ppt

9/29

9

Developing anOperations Strategy

qcompetitive prioritiesQuality:The moccona coffee shop is the

distinctive diabetic and low fat menu,which no other competitor has.

Cost: The Business strategy is based onthe Cost leadership

Time: our products are served in least

time possible both on retail aswell as indelivery

Flexible: As our products are customizedtherefore the processes are also kept

flexible

8/7/2019 adeel ppt

10/29

10

Developing aBusiness Strategy

Business Strategy:We predict to be oneof the market leaders

and boost our salesin 2015

EnvironmentalScanning: ,Espresso

,caf Ciao caffeine.and Roasters Costa

tends to enjoy the,highest market share

due to its ,excellence in coffeeenvironment and.service

Mission:To entertain

customers byproviding&sensational

,relaxing atmosphereleisure and quality

food services at.competitive price

Core Competencies:Moccona beans are

going to be importedfrom Australia whichwould be our one of

the unique product.specialty

8/7/2019 adeel ppt

11/29

11

Design of Operations

STRUCTURE: The facility of

manufacturingand serving thecustomer will bedone in the sameoutlet as thedrinks and

eatables will beserved fresh

TECHNOLOGY: Wi-Fi facility

Entertainment

System Automation of

Feedback System

8/7/2019 adeel ppt

12/29

12

FLOW CHART OF COFFEE MAKING

8/7/2019 adeel ppt

13/29

13

INVENTORIES

Coffee beans are stored in a coollocation, in a tightly sealed container,they can last over a year.

At present there are 3 warehouses Proper cooling system for warehouses

The bottom line is that good coffee is

fresh coffee. Only buy what you canuse up quickly.

8/7/2019 adeel ppt

14/29

8/7/2019 adeel ppt

15/29

15

8/7/2019 adeel ppt

16/29

16

BREAK EVEN

Cost Type Costs Revenues

Fixed Costs Fixed , ,1 200 000 xxxxxx

Variable costs Variable 50 xxxxxx

Revenue per unit Variable xxxxxx 75

BREAKEVEN POINTS Units Dollars

Costs vs Revenues ,48 000 , ,3 600 000

8/7/2019 adeel ppt

17/29

17

8/7/2019 adeel ppt

18/29

18

While deciding better cost saving meals,we had to make a decision betweenmeals i.e meal 1 -Coffee, Donut and

Sandwich and between Meal 2, i.eCoffee, Pastry, Salad. Both of the dealshad an option of regular and upsizing.

In upsizing, we wanted to decide,

whether to provide, Alaska orespresso. Probability of upsizing was0.4 and of Regular was 0.6. cost isshown in the figure below.

8/7/2019 adeel ppt

19/29

19

8/7/2019 adeel ppt

20/29

20

Learning curves

Parameter Value

Find learning coefficient given 2 times

Unit number of base unit 10

Labor time for base,unit Y1

60

Unit number of last

,unit N

50

Labor time for last,unit YN

40

Learning curvecoefficient

.0 8398

8/7/2019 adeel ppt

21/29

21

8/7/2019 adeel ppt

22/29

22

Unit Production Time Cumulative Time

1 .107 1719 .107 1719

2 90 .197 1719

3 .81 2606 .278 4324

4 .75 5795 .354 012

5 .71 4479 .425 4599

6 .68 2404 .493 7003

7 .65 6411 .559 3414

8 .63 4696 .622 811

9 .61 6139 .684 4249

10 60 .744 4249

11 .58 5765 .803 0014

12 .57 3064 .860 3078

13 .56 1624 .916 4702

14 55 1236 971 5938

8/7/2019 adeel ppt

23/29

23

The Coffee making system components

!!The components can vary between the nature of business

8/7/2019 adeel ppt

24/29

24

Type of production process

Intermittent system: The process of making coffee and breakfast is

somewhat like an intermittent process becausethe product are made to order (customized) on

a start-and-stop basis Cellular Manufacturing Layout A combination of process and product layouts,

in which machines and personnel making coffee

and breakfast items also lunches are groupedinto cells containing all the tools and operationsrequired to produce a particular product orfamily of products.

8/7/2019 adeel ppt

25/29

25

Operational management decissions

Division of labour: specialized workers formaking coffee, sandwiches, bakery itemsand breakfast items.

Quality checks: quality is managed onevery step, as this business is related tocustomers health and hygiene.Cleanliness is our priority.

Decision making: day to day requiredchanges are brought. All employeessuggestions are taken in to consideration.Employees conflicts are handled

promptly.

8/7/2019 adeel ppt

26/29

26

Competing on :

COST: eliminating wasted labour,

material and facility. High onautomation.

Quality: excellent serving, fresh food,

cleanliness, error free deliveries,superior ambience.

Time: quick order serving, on-time

deliveries at homes. Flexibility: alteration in orders as per the

customers taste and preference.

8/7/2019 adeel ppt

27/29

27

Made to order coffee

Fresh,NaturalIngredient

s

Flavours

andingredients

S

low

toCook

ExpensiveIn

gre

Low

Volum

ec

QUALITYQUALITY & DESIGN

FLEXIBILITY

VOLUME FLEXIBILITYTIMECOST

8/7/2019 adeel ppt

28/29

28

capacity

In terms of service: we can serve 100customers at a time, with 1 waiterserving four tables.

In terms of serving: we can serve 150cups of coffee, 80 sandwiches, 75

muffins and 30 diabetic menus. In terms of flexibility: the ingredients of

coffee and sandwiches can bechanged, labour force can help eachother, waiters can increase their

8/7/2019 adeel ppt

29/29

29