Airline Cost Analysis Paper

Organizations are constantly being challenged to identify ways to reduce operating cost, increase equipment capacity and utilization. There are many variables in why we see continued increases. One of the major effects is raising fuel cost. Companies are constantly battling this variable. This is not the only issue facing companies today. But it is certainly a concerning one to companies who rely on fuel for their company to thrive. These challenges are aligned with rising material costs as well. The economics of transportation affects the lives of all U.S. citizens and citizens of other nations. The

BENIHANA INC, an American restaurant company was founded in 1964 in New York City and has 116 Japanese cuisine restaurants. Benihana simulation is a computer simulation of an operation management result based on concept of Benihana restaurant in Tokyo designed by Harvard school. The outline of the simulation is based on two seating position i.e. bar and the dining area. The target of this restaurant based simulation is to boost utilization, nightly profit and throughput time by using batching strategy, size of bar and cycle time and different advertising scheme. Simulation consist of 6 challenges where only 1 to 3 factor can be changed in challenges 1 to 5 whereas challenge 6 is a combination of strategies to gain the maximum output i.e. nightly profit by using all possible factors from 5 previous challenges.

The first recommendation, is that they need to change the direction flow of the café. They should switch the exit to the entrance, moving the cashier’s stations by the exit. There should be one express cashier only expecting cash and a regular cashier taking cards. The flow of the lines can be corrected by partitions, so this isn’t crowding at the stations, creating a consistency in wait time. Please see exhibit A for the updated café layout. The second recommendation, is that there is needs to be detail menu choices for the stations. They can order large boards and hang the above the stations describing the menu options, reducing the questions being asked about the food. The third recommendation would be to implement a pre-order station.

Adding a second food preparation area may create bottleneck that defeats the purpose of reducing the customer waiting time.

Blackshop is a popular casual restaurant in the area of Cambridge. It is a well run business in quite a competitive market. However, in a competitive market, proprietors of a business must do what is necessary in order to remain competitive and “maximise the number of guests” (Cerny). Blackshop must decide whether or not the Open Table system will allow them to gain a competitive advantage, and if so, what sort of operational strategy needs to be implemented for it to be successful. Issues that need to be addressed are whether Open Table systems such as the new reservation system and the table management system will, in fact, leave Blackshop with a competitive advantage.

Since there are five different stations that are all dependent upon each other; there comes times during lunch/dinner rushes where the line can backup or slow down tremendously. One of the issues that results from long waiting lines is the lost in sales revenue from customers who are turned away from the restaurant due to long wait

Rising fuel prices has a huge impact on the airline industry. In an article published by the New York Times in 2007, oil prices were hovering ‘near $100 a barrel’ which caused the International Air Transport Association (IATA) to ‘slash’ their predicted profits for 2008 from ‘$7.8 billion to $5 billion’ (Clark, 2007). In 2008 high fuel prices were ‘dominant factor’ in the losses that faced the industry, and continued to same effect in 2009 (Dunn, 2009). Diagram 2 shows how fuel price has increased and fallen over the last 5 years.

Starting September 18, 2015 the project started by observing the time that each customers took to reach each server before leaving the restaurant. Noticing that the customers have spent a certain amount of time in line before reaching the serves. My team and I were able to reduce the amount of time that each customer spends in each server.

Provisions should be made in Sunset Grill’s facility layout and process flow. First, ancillary staff is required to alleviate some bottlenecks in the process flow. The bottleneck stands with the staggering length of 38 minutes for the food to be prepared. “By measuring and analyzing the timing and duration of cooking and service tasks, restaurant managers can identify and eliminate bottlenecks and excess staffing, thereby improving service while controlling costs” (Sill & Decker, 1999, p. 23). An additional cook on the weekends can make financial sense, as it will increase the food preparation capacity from 192 meals in an 8-hour weekend shift to 240 meals. The actual amount of plates is greater as the cooks multitask orders to increase output.

Overall suggestions provided to reorganize seating arrangement and layout changes will facilitate timely service thus maintaining the temperature of food and

We then analyzed the profitability of alternative 4. As previously stated, Mr Butkus trusts that a decrease of fifteen minutes in meal time will prevent turning 20 to 30 people away on Thursday nights, and 30 to 40 people away on Friday and Saturday nights. We calculated the incremental benefit of alternative 4 under both Mr Butkus’ low estimation and his high estimation. After doing so, we determined the yearly net incremental benefit using the incremental staff costs calculated above. The payback period was calculated by dividing the net yearly incremental benefit by the fixed cost of implementation.

The average turn from the time customers receive their food to the time they exit the restaurant, is 32 minutes. Additionally, it appears that even the experienced staff has difficulties in serving the customers as the demand exceeds labor utilized creating queues on the weekends of up to 25 minutes.

Since the airline industry is a direct product of market conditions, it is greatly affected by all externalities. Many people noticed a decline in travel after the September 11th tragedy occurred due to safety concerns. When there is a huge increase in fares that definitely interferes with the demand for travel; it causes the price of tickets to continue to rise since a clear correlation between supply and demand exists. When the economy is doing well in terms of the employment rate, and when the dollar is strong people have the tendency to travel more (Jerram,1998).

When opening a new restaurant it is important to consider technology options that will offer competitive advantage, enhance profit, and work efficiently for the establishment. Three systems that are generally purchased for restaurant use are inventory systems, point of sales systems, and reservation management systems. All of these systems should be researched and compared on their functionality so the most suitable technologies can be implemented into the daily activities of the restaurant.

people visited a restaurant then it takes more time to place an order because they