Академический Документы
Профессиональный Документы
Культура Документы
ARSHIA GUPTA
PGP/17/014
BHAVNEET KAUR
PGP/17/016
DIPTI JHA
PGP/17/017
SHIPRA AGARWAL
PGP/17/048
PGP/17/057
YASHASVI KANSOTIA
PGP/17/062
Acknowledgement
We would like to express our sincere gratitude and indebtedness to the owner of Chill Out
Caf Mr. Donald for his enormous help and support right from the inception of the project
till the end by virtue of giving us the required information and allowing us to study the
operations of the cafe and personally explaining a few operations, in spite of his busy
schedule and huge workload.
We would also like to take this opportunity to express our sincere gratitude to professor,
Mr. Sanjay Jharkaria for his constant guidance, valuable suggestions and moral support.
The methods and techniques, taught in class, have been very useful in doing the required
analysis.
Section A Group 5
ARSHIA GUPTA
BHAVNEET KAUR
DIPTI JHA
SHIPRA AGARWAL
U SATYA NAGA VINEELI
USHA BHAKUNI
YASHASVI KANSOTIA
Executive Summary
We as a group have chosen the recently opened caf right outside the institute gate,
called Chill Out Caf, which has become very popular among IIMK students in a
short span of time. We thought it would be very interesting to study as to how the
cafe has aligned itself to serve the requirements of students and also, since the caf
is new, there is lot of scope for improvement.
Chill Out Cafe is a facility based service where customers can dine and enjoy
ambience. Chill Out Cafe offers services at competitive prices and give value for
money. It is affordable for college-goers and reachable from IIM Kozhikode and NIT
Calicut. It is appreciated for good food and music but the service is perceived as
slow. Our team as well is a customer of the same. Having experienced the service,
we were with a view that with little improvements in the operations the restaurant
could do wonders. Due to these reasons, we have chosen Chill Out Cafe as our
Operations Management Project.
This report explains the operation strategy of the cafe, e.g. layout, procurement,
quality management, inventory, location, process flow, etc. The report also focuses
on the issues concerning the eating joints in Kunnamangalam and the steps that
have been taken towards the same. The report ends with a few recommendations to
improve operations of the cafe and how to improve the service during high demand
times.
Scope
Introduction & Location
Layout of Restaurant
Service Process, Strategy and Design
Service Process Matrix
Service System Design Matrix
Service Process flow
Service Blueprint
Process Flows
Inventory Management
Quality Management
Capacity Utilization
Resource Utilization
Hierarchy of Issues
Recommendations
Exhibits
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Scope
In this project we have done the operations analysis of Chill Out Cafe, which happen
to be a fast food restaurant in Kunnamaglam. We have analysed how in his limited
resources and equipments, the restaurant is making profits by capitalizing on its
location advantage by targeting the student community from the nearby areas. The
restaurant is in its infancy years and has a tremendous scope to enhance its
operations to make greater profits. By giving a detailed account of the current status
of the inventories, process flows, resources, space and layout of the restaurant we
have given our recommendations which can make the functioning more efficient. We
have also focused on the aspect to overcome the competition which he faces from
the other restaurants in this area. Our analysis and suggestions are based on the
process flows of the most commonly sold items.
Introduction
Started in January 2013, Chill Out Caf is a one of its kind music themed caf located in
Kunnamagalam, Kozhikode. Situated right opposite to the IIM Kozhikode gate, the caf
caters mainly to students from IIMK and other youngsters in the nearby areas. Donald R
Stanley, the owner of the caf is a native of Calicut who came up with the idea of setting up
a caf so as to attract youngsters who enjoyed good coffee, food and music. The caf
serves also serves fast food and has an unique advantage as the only caf in
Kunnamagalam. Its location surely adds to the lucrativeness as it is a famous hangout spot
for the students of IIMK who take out time to chill here. Inspired by the Jamaican
musician, Bob Marley the interiors are done by using bright colours, posters and
photographs of various musicians, and lamps. The music played is soothing to the ears and
people generally are seen reading books and magazines, chatting or watching movies on
their laptops while enjoying meals. The caf also has an outdoor area where people can
smoke and enjoy the view of the town.
Layout of Restaurant
Service Area
The restaurant has a rectangular layout. The area has been divided into the following 4
areas:
1. Seating Area It has 4 tables and each has a capacity of 4 people. The capacity of
this area is 4 x 4 = 16 people. The area occupied by each table is 4 x 6 feet.
2. Reception Area The reception or the billing area gives a look and feel of an open
kitchen. This area has drawers under the table where the owner can store inventory
and it is also used to keep the water filter, oven and the coffee machine. The billing
is done manually in Chill Out cafe. Tissues and glasses are kept which can be used
for self-service. The owner keeps one chair for himself in this area.
3. Seating at the reception The reception area has 6 cushioned seats and has a
capacity of 6 people. But this area is seldom used. When the seating area is full, the
people who are waiting can sit here and place the order till the seating area becomes
available.
4. Open Area The open area has 2 tables and each table has 2 seats. So, it has a
total capacity of 4 people. The open area is usually not used by customers for
seating purposes. It is rather used as a smoking area.
5. Kitchen Area The kitchen area has a fridge, the gas-stove and 2 slabs (horizontal
and vertical) on two sides of the walls. It also has a window and an exhaust window
that is used for adequate ventilation and flow of air. He also stores griller, blender
and fryer in the kitchen area.
The below table gives a snapshot of the area division in the cafe, the capacity of each area
and the area in feet.
Region
Seating Area
Reception Area
Seating at the
reception
Kitchen Area
Open Area
Total
Tables
4
NA
6
NA
2
12
Type
of Capacity
table
4-seater
16
NA
NA
1-seater
6
NA
2-seater
NA
4
26
Area in Feet
16 x 6
16 x 24
2 x2
256
384
4
8 x 10
4 x 30
80
120
844
Service Area Layout - The above image describes the layout of Chill Out Cafe. The door
on the right side marks the entrance to the Cafe. As calculated and observed in the figure,
the total area is 844 in feet and the total capacity is 26.
Strategies for competitive advantage:
are four components that are involved in the design of any service organization:
Target Market
Service Concept
Service Strategy
Service Delivery System
Service Concept and Service Strategy of Chill Out is to offers light snacks like
burgers, sandwiches, French fries, cold coffee and other fast food items that people
can enjoy with their friends; also they provide these in the least time possible and
maintain good quality standards. Further, they provide their customers with a calm
yet youthful ambience through the use of dim lights, interesting seating
arrangement, attractive posters and a funky interior dcor. This allows its customers
to move into a different world with mouth-watering food where they can relax for a
while. Hence people like to come to this place more often for the experience and this
is why Chill Out continues to be one of the most sought after place for youngsters in
the locality.
Service Delivery System It has no provision for home delivery but the average
time taken for an order (order time) is around 10 to 15 minutes, whereas it goes up
to around 1hr in peak hours. It is thus an indicator of how long the customer must
sit idle before his/ her order gets ready, hence this is one of their drawbacks and
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Stakeholders : The stakeholders of the cafe are depicted in the following diagram
Customers
Owners
Suppliers
Creditors
Community
Government
The aim of the current policy of the cafe is to have high level of commitment to customers
and care to customer needs. It believes that customer satisfaction is the way to success.
The owners try to provide good environment and ambience to make customers feel
comfortable.
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Activities
Customer deciding the order
Customer placing order
Preparing food
Clearing the table
Getting the bill prepared
Customer paying the bill
Total
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Service Blueprint
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Inventory Management
The level of inventory that is maintained at the restaurant is very small. Many of the
perishable items like milk, vegetables, chicken, etc are purchased on a daily basis. Other non
perishable items like spices, coffee etc are bought once or twice in a month. The materials
are bought by the owner himself as there is no supporting staff member. This takes up most
of the time in the morning, and causes the restaurant to open up late in the afternoon.
There are other miscellaneous items such as disposable glasses, tissues, straws etc that are
purchased twice in a month. The detailed breakup of the inventory purchased and other
expenses in the restaurant are given in the following table on the next page.
Quality management
The quality of the products is maintained by keeping a low inventory. All the perishable
items like milk, vegetable, chicken, etc are bought daily according to the consumption.
There is a minimum wastage of the food materials. All these items are stored in the
refrigerator so that they are not spoilt. All the prepared materials like mixture for the
sandwiches and burgers are kept in the refrigerator so that they remain fresh for long. The
food is prepared fresh and served hot to the customers.
The interiors of the restaurant are daily cleaned with disinfectant to keep it free from any
kind of rodents and pests.
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Groceries
Perishable items
1. Vegetables
Monthly
expenses
(Average)
(Rs)
Quantity used
4500
Potatoes
Tomatoes
Onions
Peas
Frequency of
buying
Purchased
From
Daily
Local
Market
2-2.5 kg/day
1 kg/day
1-1.5 kg/day
1 kg/day
2. Milk
3. Cheese (Cubes and spread)
4000 8 l/day
4000
4. Chicken
5. Bread
Daily
Once in two
days
Daily
Daily
Burger Buns
Sandwich breads
6. Eggs
Non-perishable items
Spices and other materials
1. Spices
2. Coffee
Instant coffee
Roasted coffee
3. Ketchup
4. Fries
Electricity Bill
Rent
Cooking gas
Misc Expenses (Tissues, glasses,
straws)
Total
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for 25-30
burgers
for 25-30
burgers
3360 200 eggs per
week
600 5 kg/month
2 kg/ month
1000
1500
Twice a week
Twice a month
Once a month
Once a month
Once a month
Twice a month
Once a week
6000
10000
1500
2000
46460
Twice a month
Wholesaler
Local
Market
Local
Market
Wholesaler
Wholesaler
Wholesaler
Wholesaler
Wholesaler
Wholesaler
Capacity Utilization
Performance measure
Cold coffee
Cycle Time
Flow Time
Throughput
Daily Number of orders
received (Average)
Capacity utilization (9 hrs)
(%)
Burger
Sandwich
Veg
Non Veg
Veg
180 s
420 s
20/hr
25
300 s
900 s
12/hr
15
600 s
960 s
6/hr
25
600 s
780 s
20/hr
15
Non
Veg
600 s
780 s
20/hr
20
32.41
41.67
74.07
36.11
48.14
Blender
Oven
Fryer
Resource Utilization
Resource utilization
Measures
No. of Non veg burgers
Time taken for 1 burger
(s)
No. of Veg burgers
Time taken for 1 burger
(s)
No. of Non-veg
sandwiches
Time taken for 1
sandwich (s)
No. of Veg sandwiches
Time taken for 1
sandwich (s)
Cold Coffee
Time taken for 1 coffee
French Fries
Time taken for fries
Total time utilized (s)
Total time available per
day
Utilization (%)
20
Order
received
25
60
Kitchen Griller
25
960
25
600
0
0
25
60
25
60
15
60
15
900
15
600
0
0
15
0
0
0
20
20
20
20
60
780
600
45
15
60
15
780
15
600
0
0
15
45
0
0
25
60
20
60
7200
32400
25
420
20
400
83300
32400
0
0
0
0
45000
32400
25
240
0
0
6000
32400
0
0
0
0
3075
32400
0
0
20
300
7500
32400
22.2222
257.0
138.8
18.518
9.490
23.14
Hierarchy of Issues
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Recommendations
As per our study we suggest the following recommendations1. Increase the workforce: More people should be employed in the restaurant. It will
remove the bottlenecks in the process and make it more efficient.
2. Bottleneck griller: In the process of making both the sandwiches and burger, the
bottle neck is the griller, which takes about 10 minutes. At a time jjust one of each
sandwich can be grilled. So we suggest to add one more griller.
3. Start home delivery: A major chunk of the customers are the students. They
prefer to get the food delivered in their room itself. Pizza corner capitalizes on this
fact to increase their sales. Thus we suggest Chill Out cafe also to start the home
delivery service. It will require a onetime investment of 60000-70000 to buy a vehicle
with a carrier, and he can keep an employee to make the delivery, whose salary can
be made proportional to the number to deliveries he makes.
4. Improve the system of raw material procurement: Currently the owner
himself goes out to buy the inventory. Since he purchases some of the vegetables
from the kunnamaglam market itself, we suggest him to make an agreement with a
nearby vendor to deliver the vegetables at the restaurant itself on daily basis, this
will save his time and he can use this time to make the initial preparation of the
fillings.
5. Increase the use of technology: the bills and order taking system is manual. We
suggest that to improve the documentation and speed up the process, he should
computerise the system. We also suggest installation of a card swipe machine,
because these days the use of plastic money has increased. Computerization requires
initial heavy investment, but it pays off in the long run.
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