Pizza Capers: Business Improvement The Situation: Pizza Capers Burpengary is a not-for-profit pizza shop that operates in a highly competitive environment, trying to attract customers by providing high quality pizzas and great customer service. Escalating cost pressures, demanding customers and issues with staff enthusiasm created an environment that required deep understanding, superior planning and faultless execution of business processes. Leonardo was engaged to reduce escalating costs, improve profitability and create transparency over the organisation's business processes by designing and implementing business process changes. Work Performed: Created a graphical business model and process flow to 'see' the flow of work. Created the business process architecture and implemented practical Key Performance Indicators (KPIs). Applied Rapid ideation techniques through team and one-on-one workshops/interviews. Analysed key process issues (increasing costs, insufficient revenue, [and] compliance to standards). Implemented business process changes to reduce back office and operational costs and create new revenue channels. Redesigned the store layout using Lean principles to increase efficiencies and reduce waste Provide additional recommendations for future changes. Value for Client: - Implemented a new staff scheduling system that integrates seamlessly with the payroll system reducing cost of labour by > 3.5% - Improved accuracy of salary payments, improving staff satisfaction - Implemented additional digital channels for customers to order their pizza, increasing the store's revenue by > 6.5% - Increased operational efficiencies through store layout by reducing transportation waste and visual management - Provided a single source of truth for the organisation's business processes to be used in staff training and continuous education - Implemented better process measures and KPI's which improved On Time Delivery of Delivered Pizza's 1.1 The case study claims that the scheduling system and the payroll system integrated seamlessly and reduced labour cost by 3.5%. Based on the case study, analyse how this labour cost reduction is achieved and further indicate how the company Pizza Capers Burpengary could calculate the labour cost reduction.

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Chapter3: Cost Behavior And Cost Forecasting
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Pizza Capers: Business Improvement

The Situation:
Pizza Capers Burpengary is a not-for-profit pizza shop that operates in a highly competitive environment, trying to attract customers by providing high quality pizzas and great customer service.
Escalating cost pressures, demanding customers and issues with staff enthusiasm created an environment that required deep understanding, superior planning and faultless execution of business processes.
Leonardo was engaged to reduce escalating costs, improve profitability and create transparency over the organisation's business processes by designing and implementing business process changes.
Work Performed:
Created a graphical business model and process flow to 'see' the flow of work.
Created the business process architecture and implemented practical Key Performance Indicators (KPIs).
Applied Rapid ideation techniques through team and one-on-one workshops/interviews.
Analysed key process issues (increasing costs, insufficient revenue, [and] compliance to standards).
Implemented business process changes to reduce back office and operational costs and create new revenue channels.
Redesigned the store layout using Lean principles to increase efficiencies and reduce waste
Provide additional recommendations for future changes.
Value for Client:
- Implemented a new staff scheduling system that integrates seamlessly with the payroll system reducing cost of labour by
> 3.5%
- Improved accuracy of salary payments, improving staff satisfaction
- Implemented additional digital channels for customers to order their pizza, increasing the store's revenue by > 6.5%
- Increased operational efficiencies through store layout by reducing transportation waste and visual management
- Provided a single source of truth for the organisation's business processes to be used in staff training and continuous
education
- Implemented better process measures and KPI's which improved On Time Delivery of Delivered Pizza's

1.1 The case study claims that the scheduling system and the payroll system integrated seamlessly and reduced labour cost by
3.5%. Based on the case study, analyse how this labour cost reduction is achieved and further indicate how the company Pizza Capers Burpengary could calculate the labour cost reduction. 

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