Employee Engagement is a Key to Lean Manufacturing

8/18/2019 Employee Engagement is a Key to Lean Manufacturing

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25/04/2016 Employee engagement is a key to lean manufacturing

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Employee engagement is a key to lean

manufacturing

Everyone is engaged in Nicomatic (06/08/2015 18:44:46)

To increase employees autonomy, the company simplified the organization and

applied Lean manufacturing with its own style.

When our company grew up, we tended to be more structured and rigid. New

departments were created and isolated from each other, new processes were

implemented, our hierarchy layers were extended, says Julien Nicollin, Nicomatic

CEO. We realized that it created a lack of communication and decreased our

reactivity. That's why we decided to give more flexibility to our workforce by

reconsidering the role of management as facilitators and not controllers. Our

motto is to trust people and encourage autonomy.

According to him, this leads to self-improvement of the organization.

We don't depend on 10 managers to improve things, we have 230 employees

doing ongoing improvement each day bythemselves, emphasizes Aurélie

Dujardin, HR Manager in France.

Nicomatic customers are at the core of the company, with periodic testimonials

given during lunch and learn sessions where we invite clients to

explain to all employees their applications, constraints and needs.

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How to use data science to grow your restaurant/cafe business ?

Ideal time for applying and Data science to Restaurant Businesses: The

restaurant business in India, nay, the entire world has been a happy hunting

ground for many entrepreneurs, big or small. The sector is still seeing high

growth and a huge amount of investments, with new chains opening at a rapid

pace. For some of the older players though, the time has come to consolidate their

businesses and/or expand. This requires systematic management and oversight

to ensure a smooth transition so that the basic fundamentals on which their

businesses have been built is not scarified at the altar of growth. This is the ideal

time for embedding Analytics into their everyday business processes.

How can Analytics increase revenues? The question that most Restaurant

owners would ask is how Analytics is going to positively impact their revenues.

There are many indirect ways in which Analytics can help restaurants make more

money, but for the purpose of this discussion, we will concentrate only on thedirect ones :-

A- Helps you understand your customers

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Customizing offers for different parts of the day is an effective differentiating

strategy. Customers need to be led to believe that they should order certain kinds

of meals at certain times of the day, even though you maybe having an all time

favourite meal- like the “English Breakfast” running all day.

Running a business is also about conserving costs- when your data reveals that

your restaurant is not doing business at all, at either the early hours of theopening or closer to your closing hours, you should think of changing the timings;

this will reduce your electricity costs, reduce fatigue of employees etc.

B- Increase the share of wallet of existing customers – Where is the

Loyalty Strategy?

C- Removing slow moving items from your menu - When you have a long

menu card, it is important to analyze what people are consuming and what they

are not

D- Pricing Strategy

E-Menu Mix solution- Which items bought together contribute to maximum

sales? Create combinations of such items and offer discounts to drive up sales and

productivity.

Let us now look at the above mentioned aspects in greater detail.

A- Understand your customers

The most important aspect of any business is the ability to understand your

customers. If you know your customers well, what they buy, when they buy, how

they buy etc., half your job is done. When your business is small and your

clientele is limited, it is easy to remember your customers at a personal level,


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often knowing what their favourite orders are. But, when your organization gains

scale and it is difficult to even recognize them by face it is important not to lose

track of that very attribute which helped you establish your business in the first

place - your ability to understand your customers ! When you have more than one

restaurant, the job becomes even more difficult. That is why you need to harness

the power of data. But before you do that, you must devise mechanisms to collect

the data on your customers. If you do not have a mechanism to collect data thatidentifies your repeat customers- don’t lose heart. You can still do a lot by

analyzing the POS(Point of Sale) data.

Understand Customer Behaviour

Understanding customer behaviour is a good proxy to understanding your

customers. When you have hundreds of thousands of customers, ordering

different items from your menu cards, it becomes imperative for you to look at

groups of customers to understand their consumption behaviour. The data from

your POS systems can be analyzed to come up with segments based on different

kinds of consumption behaviour of people. One of the most popular

segmentations used in Analytics in restaurant businesses is the Trip

Segmentation.

Here is a hypothetical example of what different kinds of trip segments that can

be there in a restaurant business and how they can be used with tremendous

impact on the business.

In the above example one is able to analyze the data and come up with these

segments which split the population into meaningful segments. Once, thesegments have been identified and profiled, the next step is to devise strategies to

tap each of the segments for increasing revenues.


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Let us pick up one segment for furthering our discussion on this: “The Solo Trip

Segment”. This segment provides opportunity for increasing sales with a bundled

offering. This can be done by identifying the most popular combinations that are

ordered by the rest of the segments along with the most popular items being

ordered by the this segment. The next step is to come up with a promotion,

offering couple of items together as a bundle/combo. This will help increase sales

and coax the solo item buyers to order another popular item from the menu.

Distribution of segments throughout the day – By plotting the segments

across various times of the day, you may be surprised to find that the penetration

of certain kinds of segments maybe more in certain day parts than in others. This

provides a great opportunity for differentiated offering/promotions in different

day parts, depending on the kind of customers coming to your store. It will also

help in kitchen management better, because you would be aware of what kind of

orders to expect at different day parts.

In the above hypothetical example, the occurrence of solo trips is maximum

between 15:00 to 18:00 hours and is the perfect time for the restaurant to

promote combo offers with the most popularly sold solo items.

Dashboards: Measuring your business real time

We may have all heard about the popularity of management dashboards and

maybe wondering what use they might have in the running of restaurants. On the

contrary, a dashboard for a restaurant is one of the most powerful tools that an

owner of a restaurant can have. The Management dashboard for the owner/top

management of a restaurant chain will help him get an immediate snapshot view of the business in real time. Some of the very useful metrices would be:


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An example of a dashboard


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Loyalty Strategy

For a business with a very high probability of repeat customers, it is interesting to

note that very few restaurant businesses in India have a loyalty strategy in place.

Having a loyalty strategy doesn’t mean implementing a cash heavy loyalty

program, replete with plastic cards and heavy discounting.

A loyalty strategy means:


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Pricing Strategy

It is important to carry out a well thought out pricing strategy in your chain. You

should increase prices, but in a very strategic manner and by measuring the

impact of the price changes. There are two phases of the pricing strategy which

are critical. One is the pre-increase period when you determine the products for

which you are going to change prices and the other is the post price change period where you need to measure the impact of the price changes on the customer

buying behaviour.

Activities:

Identifying menu items for which price should decrease

Identifying menu items for which price should increase

Identifying menu items for which price should not be changed

The simple diagram above exemplifies how changes in price have affected

changes in revenue.


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The gist of the learning from the above is as below:

Menu Mix Solution:

The famous observation that beer bottles and nappies when kept adjacent to each

other, led to increased sales in retail stores, introduced a new concept of product

bundling/adjacency to the world of Retail. In the business of restaurants, the

closest corollary is that of menu mix.

When you find “meals” consisting of burgers, fries and coke are being served to

you at discounted price, doesn’t mean that McDonalds is trying to push coke into

your menu. It means that they are being customer first and have observed that

this one of the most popular combinations that people usually order and they

have institutionalized it for the benefit of customers, efficient customer service

(you save time instead of ordering individual items) and above all it drivesrevenue as customers see an inherent “value” in the meals as they get something

else at a lower price than what they would otherwise have to pay.

Similarly in restaurants, menu mix should be analyzed and the most popular

meals should be bundled together and offered to customers at a lower price to

incentivize them to buy their favourite meals. This will increase loyalty of

customers to the restaurant, apart from driving more repeat visits from the

customers who would like to come back for their favourite meals at reduced

prices. The menu mix should only be done for the most popular meals and there

should only be a few combos on offer, else it will become complicated and make

the customers confused


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Written by

Conclusion :

There is a big opportunity waiting to be utilized by the more entrepreneurial and

innovative restaurant owners. Whoever takes the lead will win. Soon, there will be

no other option but to innovate and devise strategies, keeping the customer at the

heart of all your decision making. The rate at which this space is growing, it will

be difficult for laggards to survive. Analytics provides the only solution to ensurescalability, efficiency, keys to customer satisfaction and above all, increased

revenues.

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Rohan Anand

Many useful techniques. Shows how even basic analytics can help. It

should be similar at salons as well.

I think A/B testing should be much more frequent in the offline world but in a

less predictable way. It may be around pricing, or around free samples, or

around a larger portion, free drink whatever.

Restaurants should do it in a less formal way (and off the menu) and make

it less predictable because the objective is not to sell more at less profit but

to gain more overall profit and happy customers.

Be very careful to introduce a 'on the menu' promotion which is 'highly

subsidised' from normal rates and you intend to 'completely' discontinue it

later. It should not be, say 50%, of the sum of the price of the individual

items.

I've been to restaurant solely for the reason of unlimited refills on coke even

though I know I'd anyway spend some 1000 bucks over there and not take

the refill more than twice at max. So the irrational psychology angle can

also be exploited alongside the rational analysis :)

Like(2) Reply 2 days ago

Snehamoy Mukherjee and José Antonio Cabrera Martínez

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3 Mistakes to Kill Your Email Marketing!

There’s indeed quite a lot of money online, without second thoughts. Though

getting even a fair share of that might not be as easy as it sounds on the surface.

Having an online presence might be the stepping stone for you but you are not

going anywhere without a well-thought email marketing plan.

Here are 3 fatal mistakes often perceived to be true that could actually sink the

email marketing ship for you.

It might seem a great way to organically grow your audience, but did we just

forget that a majority of all social platforms today are publicly traded

companies. The organic reach of social media today is relatively low and

nothing short of paid advertising works if you desire to reach out to a greater

audience.

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But, there’s one form of marketing that hasn’t changed over the years. It

might have evolved and grown all the more competitive and challenging, but

definitely not witnessed paradigm shifts. And, that is Email Marketing. If

someone is signed up for your email list, they can see your emails every time

you send them out. Social media might connect your audience, but just

because they are connected does not necessarily mean they are a part of your

community. Your website and email list on the other hand are your

community.

A decisive factor lies in the blatant truth that sales are more than often

closed through emails, but never quite so on social media!

Add anyone you've interacted with online to your email list:

An old school strategy that you should probably run from and not run to! The

strategy suggests you add any one you've interacted with online, be that via

mails or even LinkedIn to your email list. The concept of “implied


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permission” is a terrible advice and a more than often a turn-off for most.

The people on your email list should be people who choose to sign up – not

any random person you decided should be on your list. People prefer to buy

from someone they know, like and trust.

The concept of “implied permission” comes in as an uninvited presence –

way too intriguing and shady! Not exactly how you would have liked it.

Frankly speaking, gone are the days when cold calls (or even emails) and

door-to-door visits were a fair way to get business.

If someone comes and tells you, “Just try harder to reach those who haven’t

expressed any interest”, bear with his ignorance but don’t believe him. Stop

wasting your time and efforts trying to reach people who aren’t interested.

It’s a wiser way to grow your business spending that time growing your

audience that provide them with a reason as to why they should do business

with you.

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Employee Engagement is a Key to Lean Manufacturing