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My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh.

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Presentation on theme: "My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh."— Presentation transcript:

1 My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh

2 Outline 1.Case Introduction 2.Question Discussion 3.Conclusion 4.Questions and Answers

3 Case Introduction How they are able to serve everything on that menu quickly Flash-frozen and vacuum-packed Top- quality restaurants like Fuddruckers and Perkins are going the outsourcing route Taglines such as Hours versus ours and Just heat and serve

4 What can be outsourced? Delivery of ingredients Preparation of the food Food arrangement Others: – Accounting and payroll services – Kitchen cleaning – Laundry – Advertisement and marketing – IT (website maintenance)

5 Question Discussion Question 1 Explain the meaning of the phrase Hours versus ours.

6 Hours versus ours Consumer-goods companies such as Sara Lee, Land O´Lakes used slogans as advertisement – Hours versus ours, Just heat and serve Stimulate B2B-relationships with restaurants – timely serving capability of restaurant businesses can be increased Encourage restaurants to outsource business operations

7 Outsourcing vs. In-House Capacity planning to identify requirements Hours: Outsourcing to save time, increase profit Ours: In-House solution to control quality

8 Example Outsourcing vs In-House Receive meat, bread, toppings, sauces Toast bread, grill meat/cheese Assembly Burger (meat, bread), toppings choosen by cutstomer Self- Service Fast casual restaurant - Fuddruckers Preparation meat, bread, toppings, sauces Toast bread, grill meat/cheese Assembly Burger (bread, meat cheese, toppings) Service In-House Burger Outsourced Burger Time

9 Question Discussion Question 2 What advantages are there when restaurants outsource?

10 Advantages of outsourcing in restaurant Improve efficiency – Save time to prepare or manufacture materials Cost saving – Labor cost – Operating cost Improve productivity Expertise – Avoid time consuming of training employee Demand – Wide fluctuation in demand

11 Question Discussion Question 3 What are some important disadvantages or limitations of outsourcing for restaurants?

12 Disadvantages of outsourcing in restaurant Quality consideration – How to monitor the quality of the food material Risks – Loss direct control of operation – Delay in delivery – Quality defects – Taste (loss of freshness) Damage to the organizations reputation Losses customers reliability

13 Question Discussion Question 4 Do you consider restaurant outsourcing to be dishonest? Unethical? Explain.

14 In our opinion We focus on restaurant -can provided food faster -capability-price-ratio -feature -health * If the restaurant can suit our demand we consider it is ethical

15 Restaurant outsourcing 1. Advantage -reduce product cost (low price) -increase business efficiency (faster) -focus on core product (feature) 2. Heath (safety of the food )

16 Question Discussion Question 5 Does restaurant outsourcing increase capacity? Explain.

17 Measures of capacity 1.Restaurant capacity = inputs / outputs -Inputs = number of tables, seating capacity -Outputs = number of meals served per hour 2.Outsourced part of cooking process can increase output measures Shorter lead time Increased number of meals served per hour

18 Take macro view Its important to consider how parts of system related. - if the restaurant have high productivity because of outsourcing,but dont have enough inputs to serve customers is not good. ex: to add more tables and seats

19 Conclusion Control 100% of your core, outsource everything else. Dont open a restaurant if no one can cook! Customer review: Unfortunately everything we ordered was from a frozen box and then deep fried. At least it was all served hot (from the deep fryer) except the burger which was the Costco style claw burger on a stale bun. Everything unimaginatively warmed up,...just heat and serve. Even the burger condiments seemed tired!

20 Questions and Answers

21 References Operations Management by William J. Stevenson (11th Edition). d r Sandy_s_Family_Restaurant- Mildmay_Bruce_County_Ontario.html 6421/control-100-of-your-core-outsource-everything-else


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