PGPx05 Group 2 - OM Assignment -Breakfast at Paramount

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Indian Institute of Management Rohtak *

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Management

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Jun 4, 2024

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PGPx05- Group#2 Sub: Operations Management-I Case Study: Breakfast at Paramount Ques 1: How should Michael Conlon respond to the increase in carrying out orders? Should he increase the orders or decrease the orders? Ans1: Michael Conlon should find a middle ground to manage the carrying out orders. He should definitely go with increasing the carry out orders as he will be able to serve the potential customers who renege or balk. However, if carryout orders are substantially increased at The Paramount, there's a risk that the current system could be overwhelmed, potentially resulting in longer wait times for both dine-in and carryout customers. The existing workflow, optimized for a certain order volume, may face bottlenecks in the ordering and food preparation processes. To address this challenge, the restaurant may need to consider the following strategies: 1. Increase the manpower, especially in critical areas like the kitchen and cash register, to handle the additional workload efficiently. This could involve hiring additional chefs, servers, or cashiers. 2. Arrange for separate workstation for carryout orders. 3. If carryout orders are particularly high during peak times, consider implementing strategies to manage and balance the flow of orders. He should promote carryout during non-peak hours to distribute the workload more evenly. Ques 2: If you were Conlon, which factors make you tempted to increase or decrease the order? Ans2: As Michael Conlon, the dilemma is whether to increase or decrease carryout orders at The Paramount. On one hand, he was tempted to increase carryout orders as a solution to the growing issue of long queues in the restaurant. By offering customers the option to order food for takeout, he hoped to provide them with more flexibility and improve overall business and customer satisfaction. This move could potentially ease the pressure on the dine-in experience and cater to a broader audience. On the other hand, Conlon was cautious about the potential downsides of increasing carryout orders. He feared that a surge in takeout requests might contribute to longer queue times, especially during peak hours. Carryout orders often involve larger quantities, which could slow down the overall order processing time and lead to increased waiting times for those in line. Ques 3: How does the paramount system work for dine-in customers? If you are a dine-in guest, what would you experience? Ans 3: At The Paramount, when one wants to eat there, he has to wait in queue outside, especially on busy weekends with around 30 people waiting before they even open. The busiest times are between 9:00 and 11:00 am. Sometimes, if the line is really long, the servers offer a drink while customers wait. Once they get inside, it takes about 45 minutes to reach the counter to order your food. As customers wait in line, they might feel a bit hungry, and sometimes people even faint. The staff takes care of them by giving them fresh orange juice and a free breakfast. The line weaves through the restaurant, and they might have to squeeze past kitchen equipment. It takes them about 40 seconds on average to prepare the food for each person. After that, customers go to the cash register to pay, and they also prepare your drinks there. It takes about 45 seconds for drinks and 1 minute to pay. Even though the restaurant is usually full, the hosts guide customers to a table. There are different types of tables, and on average, a group has about 2.6

people. The good part is table is always available. Table turn over time is 19 minutes. The food quality is very good and the staff is very hospitable. Ques 4: What is the impact of carrying out orders on the operational performance? Ans 4: Following is the impact of carry out orders: 1. Fulfilling carryout orders adds to the overall workload of the restaurant staff, particularly in the kitchen and at the cash register. 2. The kitchen may need to adjust to accommodate additional order types and volume. 3. The inclusion of carryout orders may increase the overall order processing time, affecting the speed at which both dine-in and carryout customers receive their meals. 4. Introducing carryout orders could disrupt the existing queue dynamics, potentially leading to longer wait times for in-line customers. 5. The handling of carryout orders can impact customer satisfaction. If carryout orders are prioritized over in-line customers, it may be perceived as unfair, potentially leading to dissatisfaction. 6. Adequate staffing levels and proper training become essential to manage the increased workload associated with fulfilling carryout orders. Staff may need training on efficient order processing and coordination between dine-in and carryout services. 7. The restaurant may need to make operational adjustments, such as refining workflows, optimizing kitchen processes, and possibly investing in infrastructure like additional work space and manpower to efficiently manage both dine-in and carryout services. Ques 5: How many customers can the paramount serve per hour with the existing process? Ans5: Activity 1: Cooking No. of chef: 4 Activity time per customer = 40 secs Capacity: 1/activity time = 1*60*60/40 = 90 customers in an hour. Activity 2: Billing and juice counter No of employees at cash/juice counter = 2 Average time to serve drink for 1 customer = 45 sec per customer Average time for payment for 1 party = 60 sec/party Also, it is given that 1 party has 2.6 customers, so 60/2.6 =23.07 per customer Total time per employee = (45+23.07)/2 = 34 seconds Capacity: 1/activity time = 1*60*60/34 = 106 customers per hour. Activity 3 : Dining Seating capacity: 44 Eating time : 19 min Capacity= 1/ activity time = 1*60*44/19 = 139 customers per hour So, cycle will be completed as per activity 1, so they can serve only 90 customers per hour.

Ques 6: What is the cycle time for ordering/making food? Ans6: As given in the case, the combined average cycle time for the team of four chefs was approximately 40 seconds per customer. Ques 7: What is the cycle time of fulfilling orders and taking payments? Ans7: Average time to serve drink for 1 customer = 45 sec per customer Average time for payment for 1 party = 60 sec/party Also, it is given that 1 party has 2.6 customers, so 60/2.6 =23.07 per customer No of employees at cash/juice counter = 2 So average time per customer is = (45+23.07)/2 = 34 seconds. Ques 8: if utilization is 80%, what would be the bottleneck? Ans8: There are 44 seats available with 19 minutes per party 100% utilisation = 60x19/44 = 25.90 seconds per customer 80% utilisation = 60x90/44*0.8 = 32.38 seconds per customer When the restaurant is at 80% utilization then the slowest process/bottleneck will be cooking/ordering at 40 seconds/customer. Ques 9: How many customers can the paramount serve in one hr? Ans9: In case of 80% utilisation also, they can serve only 90 customers per hours as the bottle neck is the serving 40 seconds per customer in ordering/ cooking activity. Rest billing and eating will take 34 seconds and 32.38 seconds respectively. _________________________________________________________________________ Group Members: 1PGPx05.068 Abhishek Nandal Group- 2 2PGPx05.009 Deepesh Dixit 3PGPx05.020 Madhu Tripathi 4PGPx05.033 Preeti Agrawal 5PGPx05.035 Rahul Rath 6PGPx05.004 Asif Ahmed 7PGPx05.013 Harshit

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