Premium Essay

Value Stream Mapping in Fast Food Restaurants

In: Business and Management

Submitted By goodforbad
Words 2389
Pages 10
Abstract - The aim of this paper is to present that how Value stream mapping (VSM) can be applied to restaurant industry and especially fast food sector. The purpose was to identify wastes and how these can be reduced and/or eliminated by the help of value stream. A case study in Pakistan based restaurant has been carried out to illustrate this. A current state value stream map has been developed. Value stream map highlights opportunities to improve wastes and problems along the restaurant supply chain. Results indicated a non value adding steps of 29% at the processing. Value stream can be readily applied to restaurant industry.

Keywords – Value stream mapping, Restaurants, Pakistan

I. INTRODUCTION

The concept of fast food goes back half a century, yet has found its way into the Pakistani market only a decade or so back. With the introduction of many foreign brands finding their way into the country, in the late nineties, the Pakistani market has finally become accustomed to manufacturing and providing service in such a way that goes around the wholesome fast paced scenario.

As time has passed, Pakistani restaurants have picked up the technique to play alongside the foreign players. Now we can see that many local brands have established their image on the fact that they provide not only locally designed food, enveloping the fast food concept. Hence we can say that fast food has evolved and redesigned the whole Pakistani restaurant market.

In the past five years or more restaurant industry has out-performed the national GNP by more than 40%. 17% of the total employment and 29% of the total production is due to food industry. Retails sales are expanding 10% per year.

Lean was first started by Toyota in their Toyota production system more than 38 years ago. Lean manufacturing aims to eliminate waste in all areas of production, which include...

Similar Documents

Premium Essay

Value Stream Mapping

...Value stream mapping in fast food restaurants Imran Khan Afridi1, Asim Khan1 1 Nust Business School, NUST, Islamabad, Pakistan (1imranafridi@live.com 1asim_3mba@yahoo.com) Abstract - The aim of this paper is to present that how Value stream mapping (VSM) can be applied to restaurant industry and especially fast food sector. The purpose was to identify wastes and how these can be reduced and/or eliminated by the help of value stream. A case study in Pakistan based restaurant has been carried out to illustrate this. A current state value stream map has been developed. Value stream map highlights opportunities to improve wastes and problems along the restaurant supply chain. Results indicated a non value adding steps of 29% at the processing. Value stream can be readily applied to restaurant industry. Keywords – Value stream mapping, Restaurants, Pakistan I. INTRODUCTION Lean manufacturing organization will think more on its customers rather than about running machinery to maximize capacity in order to cover labor and overhead costs. A study by [1] indicates that lean manufacturing can result in a 50% reduction of human effort, tools investment and manufacturing space. This paper will examine how time and cost reductions can be made along the restaurant supply chain in the restaurant industry by the help of Value stream mapping to analyze the processes involving in the making and identifying key areas of waste and probable solutions to overcome these....

Words: 2387 - Pages: 10

Premium Essay

Value Stream

...Abstract - The aim of this paper is to present that how Value stream mapping (VSM) can be applied to restaurant industry and especially fast food sector. The purpose was to identify wastes and how these can be reduced and/or eliminated by the help of value stream. A case study in Pakistan based restaurant has been carried out to illustrate this. A current state value stream map has been developed. Value stream map highlights opportunities to improve wastes and problems along the restaurant supply chain. Results indicated a non value adding steps of 29% at the processing. Value stream can be readily applied to restaurant industry. Keywords – Value stream mapping, Restaurants, Pakistan I. INTRODUCTION The concept of fast food goes back half a century, yet has found its way into the Pakistani market only a decade or so back. With the introduction of many foreign brands finding their way into the country, in the late nineties, the Pakistani market has finally become accustomed to manufacturing and providing service in such a way that goes around the wholesome fast paced scenario. As time has passed, Pakistani restaurants have picked up the technique to play alongside the foreign players. Now we can see that many local brands have established their image on the fact that they provide not only locally designed food, enveloping the fast food concept. Hence we can say that fast food has evolved and redesigned the whole Pakistani restaurant market....

Words: 326 - Pages: 2

Premium Essay

Value Stream Mapping

...In the same way, as time passes, the restaurants were in search of new method to beat out their competitors. Restaurants are the organizations where customer satisfactions plays a pivotal role. Thus it is highly important for the restaurant managers to provoke a free flow of work. China wok is one restaurant which is very close to the SEMO campus. As there are more number of chinese students coming every semester, the demand for this restaurant is huge. But this restaurant runs with longer lead time and cycle time. Thus, it leads to higher cost and more waiting time which is affecting the restaurant’s business. Value Stream Mapping is put into practice at China Wok by first identifying the various steps in the process. Then current state at China Wok will be identified and examined. Discussions/ meetings will be conducted with the workers and manager along with few interviews. Data will be gathered from them. Current State Value Stream Map is developed with the help of the collected data and information. It provides the current steps information, and also the information required to ship the final products (Jones & Womack, 1996). Cycle time and lead times are then calculated. Non-value added and value added activities are also recognized. VSM will be developed by removing the non-value added activities and wastes. Microsoft Excel and Microsoft Visio are used as a part of the research, to draw the current and the future state maps....

Words: 330 - Pages: 2

Premium Essay

C2C and Industrial Ecology

...The study also reported that executives at twenty leading consumer products companies agreed that the offering differentiated green products not only brought down the costs of their value chains but provided additional margins and market share particularly helpful with the current economic conditions and competitive markets. Green, ethical, and sustainable products present huge opportunities to innovative companies particularly those in the consumer categories of paper and packaged products, disposable home products, fresh meat and vegetables, and electronics and appliances. Other important growth categories include building products, sustainable energy production products, and energy and resource reduction technologies. Ingestible products such as food and beverages lead the pack in sustainable product category growth particularly because in many cases, sustainability has become synonymous with quality. In Europe for example, more than 75 percent of consumers make food purchases based on sustainability standards and 30 percent try a product for the first time based on its ethical value. Given these trends, companies that focus on sustainability not only need to learn how to develop new products along these lines, but improve...

Words: 6183 - Pages: 25

Premium Essay

Operations Management Studyguide

...PRODUCT STRATEGY OPTIONS: Product Selection- the choosing of good or service to provide customers or clients; Differentiation- by offering a distinctly unique and high quality product; Taco Bell- has developed a low cost and high value product line; Toyota- a rapid response to changing customer demand; PRODUCT LIFE CYCLES: Intro Phase- the product is being fine-tuned for market, negative cash flow due to research, product development, process modification, and supplier development; Growth Phase- product design is stabilizing, requires effective forecasting of capacity requirements; Maturity Phase- high sales revenue, competitors are established, improved cost control, reduction in options of product line necessary for profitability and market share; Decline Phase- Sales and profits decreasing, can invest to bring good products up, otherwise terminate; Strategies change as products move through life cycle and successful strategies determine best strategy for product on its life cycle stage. PRODUCT-BY-VALUE ANALYSIS- Pareto Principle- focus on critical few, not trivial many; Product by Value Analysis- lists products in descending order of their...

Words: 2284 - Pages: 10

Premium Essay

Business Plan Mgt 499

...In the foodservice industry, there are many government regulated laws that affect the production and storage of foods, as well as the cleanliness of the establishment. The Food and Drug Administration is in charge of making sure that restaurants...

Words: 6754 - Pages: 28

Free Essay

Marketing

...OPERATIONS MANAGEMENT OF : | McDonald’s Restaurant | | This documentation of research looks into the operation management of McDonald’s restaurant under the grounds of Quality, Inventory and Capacity management. This report has been prepared for the purpose of International Operation Management module for MBA program of ANGLIA RUSKIN UNIVERSITY. | | 0977106/1 137068/268400 | 4/14/2011 | | LONDON COLLEGE OF ACCOUNTANCY INTERNATIONAL OPERATIONS MANAGEMENT PREPARED BY: LCA STUDENT NUMBER: 137068/268400 ARU STUDENT NUMBER: 0977106/1 WORDS IN TOTAL: 3847/4338 Table of contents: 1. Introduction........................................................................4 1.1 Case Introduction.....................................................................4 1.2 Introduction of the company...................................................5 1.2.1 Brief Introduction of raw product...........................................7 2. Product Design process....................................................8 2.1 Filet-O-Fish: - History of its own............................................10 3. Capacity and Inventory management issues..............12 3.1 Inventory management for filet-o-fish in McDonald’s...........13 4....

Words: 4578 - Pages: 19

Premium Essay

The 3 Es of Om

...tions Managmen Introduction What makes a good process? When a process operates, how do you determine whether it is successful or not? Processes seem simple, yet seem to cause so many problems and the very word 'process' can strike fear into the hearts of many people. If you are leading any type of process improvement program, you have probably felt at times like your efforts were yielding less-than-expected results. It is no wonder: the list of possible hurdles to overcome – restrictive organizational structure, politics, stagnant organizational culture, power trips – goes on and on. Continuous Improvement is the on-going effort to improve products, services and processes by making small, incremental improvements within a business. It is based on the belief that these incremental changes will add up to major improvements over time and it is as much about tactics (i.e. specific improvements) as it is about changing the culture of the organization to focus on opportunities for improvement rather than problems. At the other extreme, there is the Business Process Reengineering which advocates starting from a clean slate with a quantum leaps. Whatever techniques/methods is used it relative the pulse of an organisation. Your objectives In this chapter you will learn about the following: * Understand the 3 Es of operational excellence * Understand the importance of the 3 Es * Understand the techniques/methods to achieve the 3 Es * Understand how to acehive...

Words: 5180 - Pages: 21

Premium Essay

Termpaper

...TERM PAPER ST.Aloysius Institute of Technology Ormoc city, Leyte Philippines Total Quality Service Management TERM PAPER on STRATEGIC MANAGEMENT PROCESS FOR CONTINUES IMPROVEMENT Subject Description: Total Quality Service Management Topic: Strategic Management Process For Continues Improvement Instructor: Mrs.Alicia F. Andrade Date Issued: Student Name: Romela R.Veracis Course Description: Hotel and Restsurant Services Year: 2nd year Semester: 2nd Semester S.Y. 2015-2016 I Romela R.Veracis a second year HRS student of St.Aloysius Institute of technology have abided by the academic honor policy on this assignment. OBJECTIVES OF THE STUDY: In this report I have tried to l INTRODUCTION With the continual evolution within the business market, it is apparent that companies need to develop and improve their strategies to remain afloat. Lager companies typically pay competitive salaries to hire a Chief Executive Officer who will develop a plan to accomplish its goals. This plan is commonly referred to as “strategic management.” According to Wheelen and Hunger (2010), strategic management refers to decisions and actions taken to establish the long term performance of a company. Undoubtedly, without a well......

Words: 1193 - Pages: 5

Premium Essay

Pizza Hut

.... | Perceptual Mapping | 8 | 5. | Technological Changes | 9-11 | 6. | Pizza Hut Service Quality Dimensions | 12--13 | 7. | Chase Strategy | 14 | 8. | SWOT | 15 | 9. | 7Ps of Services | 16-18 | 10. | Service Process | 19-20 | 11. | Fishbone | 21 | 12. | Servicescape | 22 | 13. | Gap Model | 23 | 14. | Research & Development | 24 | 15. | Variability | 25 | 16. | Maintenance & Materials Management | 26 | 17. | Our Experience with Project | 27 | PIZZA HUT-The Introduction Pizza Hut is one of the flagship brands of Yum! Brands, Inc., which also has KFC, Taco Bell, A&W and Long John Silver’s under its umbrella. Pizza Hut is the world’s largest pizza chain with over 12,500 restaurants across 91 countries In India, Pizza Hut has 137 restaurants across 36 cities, including Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune, and Chandigarh amongst others. Yum! is in the process of opening Pizza Hut restaurants at many more locations to service a larger customer base across the country Pizza Hut is known for its * Good Quality Food (Hygiene) * Brand Name * Food worth its Price * Good Service * New Kind and Styles of Pizzas in its Menu. PIZZA HUT'S MISSION STATEMENT We take pride in making a perfect pizza and providing courteous and helpful service on time all the time. Every customer says, "I'll be back!"...

Words: 4898 - Pages: 20

Premium Essay

Executive Director

.... | | DESCRIPTION | PAGE | | | | | 1.0 | | BUSINESS PROFILE | 2 | | 1.1 | Business Concept | 2 | | 1.2 | The Company | 3 | | 1.3 | Mission | 4 | | 1.4 | Keys to Success | 4 | | 1.5 | Rationale | 4 | | 1.6 | Position for Growth | 5 | | | | | 2.0 | | SERVICE DESCRIPTION | 7 | | 2.1 | Company Performance Rating Services | 7 | | 2.2 | Online Business Information | 9 | | 2.3 | Business Management Consulting | 9 | | | | | 3.0 | | MARKET ANALYSIS | 13 | | 3.1 | Business Services Sector | 13 | | 3.2 | Strengths | 13 | | 3.3 | Vulnerabilities | 14 | | 3.4 | Unexploited Opportunities | 15 | | 3.5 | Marketing | 15 | | | | | 4.0 | | MANAGEMENT & ORGANIZATIONAL STRUCTURE | 16 | | 4.1 | Organizational Structure | 16 | | 4.2 | Significance of the Structure | 17 | | | | | 5.0 | | INDUSTRY SOLUTIONS | 18 | 6.0 | | FINANCIAL ASPECTS | 19 | | 6.1 | Start-Up | 19 | | 6.2 | Income Streams | 19 | | | | | | | APPENDIX I: TARGET INDUSTRY SEGMENTS | 21 | 1.0 BUSINESS PROFILE 1.1 Business Concept XYZ Rating Agency and Consultancy is a start-up company performance rating agency and consulting firm that aims at playing a central and critical role in collecting and analyzing a variety of financial, operational, industry and market information, synthesizing that information, and providing autonomous, reliable assessments of business entities, thereby providing stakeholders with an important input into their......

Words: 7281 - Pages: 30

Premium Essay

Economic

...As a matter of fact the companies need to keep up their competitive advantages, like increasing product value or setting contingency plans for threats. These external factors can be manipulated in such a way that the company beneficiates from its impact. Environmental factors can be market, weather, client and internal factors are employees, assets of the company. To evaluate the power of those external factors, most organization performs the PEST analysis. It is a simple analysis that helps the management body to get a bigger picture of the Political, Economic, Social and Technological factors that affects the company. The study of PEST analysis concludes how the company will react to environmental change by setting up new strategies. Those external factors affects important variable in the organization that simultaneously affect the organization’s supply and demand level and eventually cost of the product. The PEST analysis is an important tool that explains the market growth or decline. It also states where the company is standing, its potentials and what or who the best business targets are. The PEST analysis helps an organization at business level, at strategic planning level, marketing planning level, product development level and research level. Overall the PEST analysis makes sure that the company is progressing positively with external changes. Business leaders use this tool to build the future of their company. 1....

Words: 3744 - Pages: 15

Premium Essay

Graduate Student

...(Far East department) Answer: Providing custom meals; designing, testing, and costing meals; acquiring, receiving , and storing supplies; recruiting and training employees; preparing employee schedules; designing efficient restaurant layouts. 2) Identify two operations-related tasks carried out by Hard Rock Café (changed to McDonalds). Match each to its area of the Ten Critical Decisions. Answer: Providing custom meals–design of goods and services; designing, testing, and costing meals–design of goods and services; acquiring, receiving , and storing supplies–supply- chain management; recruiting and training employees–human resources , job design and work measurement; preparing employee schedules–intermediate and short-term scheduling; designing efficient restaurant layouts–layout strategy. 3) Define operations management. Will your definition accommodate both manufacturing and service operations? Answer: Operations management can be defined as the management of all activities directly related to the creation of goods and/or services through the transformation of inputs into outputs. Yes. 4) Why are services typically more difficult to standardize, automate, and make efficient? Answer: Services typically require customer interaction, which makes it difficult to standardize, automate, and make efficient. 5) Services are often knowledge-based. Provide two examples, and explain why they are knowledge-based....

Words: 5505 - Pages: 23

Premium Essay

Management Accounting

...Mostly, fast food restaurants implement JIT system for instances McDonald, Kentucky Fried Chicken (KFC), Marrybrown and etc. these companies can make customer satisfied with their services because of their system. Thus, the JIT system makes the company produced good quality of product by purchasing their inventories on the day they serve to...

Words: 14451 - Pages: 58

Premium Essay

Example

...International American University Shaping tomorrow’s leaders today! General Course Policies supplement this syllabus and are available through IAU Online as a digital soft copy. Please make sure that you review the General Course Policies so that you can be successful in this course. 4201 Wilshire Blvd., Suite #610 ♦ Los Angeles, CA 90010, CA, U.S.A. ♦ T: (323) 938-4428 ♦ F: (323) 938-4-4429 ♦ E: www.iau.la MGT 620a Operations Management & Supply Chain Syllabus Class Details Name: Email: Phone: Room: Method: Steve B. Young, Ph.D. (A.B.D.) syoung18@verizon.net (818) 360-6115 LA-Classroom C Hybrid Term/Year: Days: Time: Start Date: End Date: Spring Session 1 / 2015 Wednesdays 6:00pm-10:00pm January 05, 2015 February 27, 2015 Instructor’s Biography Steve Young graduated from Western Michigan University with a Bachelor of Science in Engineering and Business. He spent time as an HR director and consultant with many Aerospace firms. Steve has worked in numerous management positions for Boeing, Lockheed Martin, Eco Polymers, Hughes, and PM-10 Consultants specializing in the area of Human resource, business management, and business operations. Steve received his MBA from West Coast University with an emphasis in management and is looking to receive his PhD from Walden University in Applied Management and Decision Making with specializations in Organizational Change and Leadership in 2008. Steve is a senior faculty member and has been teaching for the University of......

Words: 4036 - Pages: 17