Operations Management Project

Pizza Hut Operations Management Strategy in Perak

Group Members

Abdel Aziz Hussein Izzeldin 7136 Atieh Ranjbar Kermany 7187 Luong Bao Uyen 7158 Mukhtar 8785 Nguyen Thi Thuy Chi 6219 Sadaf Pirhadi 7145

ACKNOWLEDGMENT

We would like to thank Dr. Amin and DR. Kamal for their support and

guidance and also Mr. Sabirin,Pizza Hut manager for northern Perak, for his

patience and eagerness to make time for an interview session.

PRESENTATION OUTLINE

Introduction Managing Quality Location Strategy Layout strategy Supply-Chain Management Inventory Management Scheduling Maintenance & Reliability Conclusion Q & A

INTRODUCTION Pizza Hut is one of the leading food franchisees in

Malaysia A study on Pizza Hut operation management

strategy has been conducted Interview with the manager The profile is composed based on our data collection

and weaknesses identified Different elements of the operation strategy are

discussed in the following sections

MANAGING QUALITY

Organizational practices• Training

• Staff supporting

Quality principles• Pizza hut apply customer focus

• Get feedback from customer, look into and solve it to improve the product quality

MANAGING QUALITY Employee fulfillment

• Given financial benefit• Carrier advancement• Recognize the best practice of staff

Customer satisfaction• The Market Manager work with Area Manager to

develop/implement Quality, Service, & Cleanliness action plans.

• The Area manager has responsibilities to ensures excellent service that meets or exceeds customer needs

• The Restaurant Manager gets feedback from the customers

LOCATION STRATEGY 11 stores in Perak area

LOCATION STRATEGY• Main criteria:

Store’s main function

Understand the population and income of the location

Understand the strength of competitor in the area

Find out if the location has adequate accessibility

Find out the economics of the location

LAYOUT STRATEGY

Up to now, in Malaysia, there are 3 types of layout concept applied:

RBD: Restaurant Based Delivery Rate Roof: Restaurant with Carry Out

Service only DELCO: Delivery Service with Carry Out

Service

LAYOUT STRATEGY

The layout of Pizza Hut is divided in following sections:

Dine –in Section Carry – out Section Delivery Section Kitchen Section Oven Section

SUPPLY CHAIN MANAGEMENT •Supply chain management: the winners and the losers in this business.

•95 per cent of the ingredients are locally produced and mostly self-supplied. import very few specialty items: cheese (from New Zealand) and flour (from Singapore ).

•Criteria for selecting the suppliers : quality, price, and responsiveness.

•Only one ware house for Pizza Hut in Klang, Shah Alam.

Pizza Hut has a logistic department which deliver materials to all stores nationwide from the warehouse.

The delivery time is different for different items. Each restaurant manager should give feedback on

the received products and their quality every time after delivery.

how much they need to order for each product depends on the sales prediction and projection.

SUPPLY CHAIN MANAGEMENT

INVENTORY MANAGEMENT

Pizza Hut Inventory Management

Just In Time

Fast response Quality product High holding cost Low ordering cost

The nature of their Industry drives the use of JIT system:

Shorten lead time and its variations Lower the holding cost/ordering cost ratio Results:

• Improved Quality

• Low Cost

• Safety Stock Reduction

INVENTORY MANAGEMENT

Daily Operation Scheduling

SCHEDULING

Customer Dine-In Scheduling

SCHEDULING

Pizza Hut Malaysia implements successful maintenance strategies to keep daily operations uninterrupted.

Establishing their own technical department.

Performing a monthly maintenance service for all area outlets.

The technicians respond immediately to any equipment break down or during daily operation.

MAINTANENCE & RELIABILITY

Pizza Hut Malaysia has a Quality Assurance (QA) department.

QA department perform a 3 months-based check and evaluation

procedure.

They check and evaluate the equipments maintenance from the kitchen to the front door.

MAINTANENCE & RELIABILITY

CONCLUSION

The Operations System Management of Pizza Hut, as a successful food franchisee, has been studied

The up to date and precise managerial strategies lead to the success of this company

The weakness identified in their system is related to the problem of temporary and part time staff

Q & A