Presentation on theme: "“My Compliments to the Chef, er, Buyer“"— Presentation transcript:
1 “My Compliments to the Chef, er, Buyer“ Operations Management Prof. Ying Jiun HsiehPapaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy
2 Outline Case Introduction Question Discussion Conclusion Questions and Answers
3 Case IntroductionHow they are able to serve everything on that menu quicklyFlash-frozen and vacuum-packedTop- quality restaurants like Fuddruckers and Perkins are going the outsourcing routeTaglines such as “Hours versus ours” and “Just heat and serve”
4 What can be outsourced? Delivery of ingredients Preparation of the foodFood arrangementOthers:Accounting and payroll servicesKitchen cleaningLaundryAdvertisement and marketingIT (website maintenance)
5 Question DiscussionQuestion 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 restaurantstimely serving capability of restaurant businesses can be increasedEncourage 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 Fast casual restaurant - FuddruckersIn-House BurgerPreparation meat, bread, toppings, saucesToast bread, grill meat/cheeseAssembly Burger (bread, meat cheese, toppings)ServiceOutsourced BurgerReceive meat, bread, toppings, saucesToast bread, grill meat/cheeseAssembly Burger (meat, bread), toppings choosen by cutstomerSelf- ServiceTimeFast casual restaurant is a type of restaurant that does not offer full table service, but promises a higher quality of food and atmosphere than a fast food restaurant
9 Question DiscussionQuestion 2 What advantages are there when restaurants outsource?
10 Advantages of outsourcing in restaurant Improve efficiencySave time to prepare or manufacture materialsCost savingLabor costOperating costImprove productivityExpertiseAvoid time consuming of training employeeDemandWide fluctuation in demand
11 Question DiscussionQuestion 3 What are some important disadvantages or limitations of outsourcing for restaurants?
12 Disadvantages of outsourcing in restaurant Quality considerationHow to monitor the quality of the food materialRisksLoss direct control of operationDelay in deliveryQuality defectsTaste (loss of freshness)Damage to the organization’s reputationLosses customer’s reliability
13 Question DiscussionQuestion 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 DiscussionQuestion 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 hour2.Outsourced part of cooking process can increase output measuresShorter lead timeIncreased number of meals served per hour
18 Take macro viewIt’s important to consider how parts of system related. - if the restaurant have high productivity because of outsourcing,but don’t have enough inputs to serve customers is not good. ex: to add more tables and seats
19 ConclusionControl 100% of your core, outsource everything else. Don’t 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!”