JAIPURIA INSTITUTE OF MANAGEMENT, NOIDA

PGDM (2019-21)

Group Project : Operations Management of Chicago Pizza

Submitted to: Prof. M.S. Kumar

By: GROUP10

MANAS KARTIKEYA ( PGFB 1957 )

NISHA ( PGFB 1932 )
SHOBHIT KATRAULIYA ( PGFB 1948 )
GAURAV ANAND ( PGFB 1927 )
TANISHA AGARWAL ( PGFB 1956 )
 About Chicago Pizza :

Chicago Pizza is a QSR brand dealing only in Pizzas, having more than
100 brands across the nation. Chicago Pizza faces strong competitons
from its main rivals, Dominos and Pizza Hut, which provide world-class
quality at extremely competitive rates. We went to Chicago Pizza,
located in Indirapuram, Ghaziabad and came up with following points.
CHICAGO PIZZA is an exclusive as well as affordable pizza selling brand or
franchise which sells quality product with great taste and variety according to
the consumer taste and preference founded in year 2000 and started
franchising since 2007, the initial investment that they made was for $14000-
$30000, they are having their outlet in more than 100 cities or pan India also
awarded by Hindustan times as the best pizza in taste. It is having some major
competitors around India and world like CHICAGO PIZZA, dominoes and Rom’s
pizzas.
SALES AND MARKETING PROCESS Of CHICAGO PIZZA ARE:
 SEGMENTATION: it uses mix of geographical as well as psychographic
segmentation and then accordingly making their products available in the
market.
TAREGETING: being one of the famous brands for the taste and variety target
customers of them as young aged and middle-aged people who away from
home town.
POSITIONING: it is having value-based positioning to create everlasting impact
on the consumers regarding their product and the taste.

SWOT ANAYLSIS :
STRENGTH: CHICAGO PIZZA has a Premium positioning in the mind of the
customer as it was the first pizza franchise entrant to start in India. CHICAGO
PIZZA's promotions and brand equity are better than competitors. CHICAGO
PIZZA's other strength is the range of Italian food it has. The range of pizza and
pasta is excellent, and CHICAGO PIZZA fulfils its promise of an excellent Italian
meal.
WEAKNESS: major weakness of CHICAGO PIZZA is that while maintaining its
brand image, CHICAGO PIZZA loses the turnover it can generate by being
present in cities of B grade. If not the fast food chain, then there should be at
least CHICAGO PIZZA delivery in such places, which is CHICAGO PIZZAs home
delivery franchise. This will ensure a high turnover in the CHICAGO PIZZA.
OPPORTUNITES: Further expansion of the food range is the best opportunity for
a CHICAGO PIZZA. Personally, I'm waiting in CHICAGO PIZZA for a spicy type
pizza. This will offer the hot range they want to send consumers. For
McDonald's, the same strategy has worked wonders. Another opportunity is to
branch out in select B towns and make their delicious pizza accessible in those
areas.
THREATS: When it comes to pizza or Italian food, dominos is a single major
threat to the pizza hut. Dominos has no high-quality food range such as pizza
hut, but Dominos is available in most locations where there is no pizza hut.
Another threat is the wide range of cuisine available to a customer through
different food franchisees today. McDonald KFC and others are indirect
competitors.
SUPPLY CHAIN MANAGEMNT OF CHICAGO PIZZA:
Chicago pizza starts its supply chain process from supplier. There are many
suppliers of Chicago pizza and are divided into two parts:
DIRECT SUPPLIER AND IN DIRECT SUPPLIER
DIRECT SUPPLIER:
There are four direct supplier associated within Chicago pizza:
 Mineral water
 Buns
 Pepsi and coca cola
 Veeba sauce
INDIRECT SUPPLIER:
 Vegetable vendors
 Meat vendor
 Oregano and chilly flakes companies

MORE ABOUT SUPPLY CHAIN:

Chicago pizza needs direct material daily to produce pizzas so the manager
forecast the daily demand and then placed the order with the supplier, next day
the raw materials are delivered. All indirect material such as vegetable sauce,
meat, cutleries are managed by ware house and it is delivered by trucks.
There supply chain consists of all organisation that may be directly and
indirectly help in providing customer satisfaction and value product. Customers
are important part of supply chain, so it is a duty to satisfy their need. There
network of supply chain contains following:
 Retailers
 Customers
 Manufacturers
 Wholesalers
 Raw material suppliers
All of these are one or the other way interlinked with each other.
LOGISTICS: as being one of the best suppliers of pizza in India, they have to
make successful deliveries every day, that too with warm food, there is no
doubt that number of deliveries help in growing the logistic system better and
more complex. So the main aim to develop a logistic system is because to have
an excellent delivery and achieve maximum target. So Chicago pizza follows two
types of logistics:

Inbound Outbound logistics

logistics

Dough Transportation
Cheese Serving and delivery
Sauce
Non. Veg
Fruits and
vegetables
Breads
Water and milk
Wheat and spices

PURCHASING WAREHOUSING:
Purchasing and warehousing plays and important role in success of a company
as it keeps the product and raw material safe in a warehouse. So Chicago pizza
uses centralised location for pizza preparation. The customization of pizza and
its all over toppings and flavours, what a customer demand is very much
relevant
in the process. Chicago pizza wants to develop or open more warehouses in
next two years:
 They have separate managers who look for shipping, receiving, loading
and unloading of trucks.
 They maintain a separate sort and place for material and items to
organised them on the shelves racks in order to meet the company
standards.
  They strategically procure materials according to the daily operational
requirement of the company so that they can reduce inventory holding
cost.
CUSTOMER SERVICE:
they have and effective customer service and solution providing base:
 Comfort level of customer is most important.
 Online and offline mode of orders
 Home delivery
 Serve hot pizzas to customer at restaurant and as well as at home.
 Tell customers and explain them about the new menu and the offers.
 Delivering to all locations and remote areas also.
 Affordable prices with discount offer.
INVENTORY SYSTEMS IN CHICAGO PIZZA:
Control system grew out of the need for management to avoid taking decisions
on purely routine issues such as what stores to order or the size and timing of a
production order as far as possible. In such situations, there are usually many
thousands of items to attend and many calculations to be made to determine
what is the best.
Developing inventory control policy involves considering and assessing
numerous conflicting factors and making the same demand on a manager as
most other types of decision-making in all aspects. Any strategy is introduced
must represent a compromise of opposing interests and maintaining those
priorities, which requires a leader to state and appreciate his objectives first and
foremost.
It is necessary to consider the factors that stocks are stored before one can start
to consider what stocks and what products should be retained in what manner.
Development processes are covered by stocks from pressure and the
uncertainty of the outside environment. Within the company, further stocks
separate one group of manufacturing operations from another, resulting in a
breakdown in one part.
 1).
Flow Chart Process of Chicago Pizza

Receiving Micro
Orders Slapping Saucing Top Base Wave Oven

Delivering Boxing Cutting Shining

2). MURI, MURA & MUDA :-

The 3 M’s: Muri, Muda, Mura

Muda: wastage of resources (7 wastes).Muda is any movement or

procedure that doesn't include esteem; a physical wastage of your efforts,
time, assets and at last your cash.
 Mura: inconsistent process waste. The variations and inconsistency in any
procedure that is mainly caused due to organization only and not due to
any customer’s end.
Muri: overburdening waste, overburden on some equipment, hardware,
offices, and individuals brought about by Mura and Muda.

The MUDA in CHICAGO PIZZA: With 20 lakh individuals eating at CHICAGO

PIZZA consistently, it delivers the most waste in a cheap food industry: 900
tons yearly. It costs 7-8 lakhs every year only for Chicago pizza to
procedure that waste.

The MURI in CHICAGO PIZZA: The employees are very burdened as they
must be on their feet all the time due to lengthy working hours, the
improper work distribution and unplanned schedules due to which there is
pressure on employees. Also no promotions are given to employees for
long time which means there is less potential for growth.

The MURA in CHICAGO PIZZA: Fundamentally Chicago pizza has variations

in items. Like, Hot nourishment, and Cold beverages and Ice creams and
diverse kind of pizzas. What's more, Hot chocolates. Clients like cold drinks
in mid years than in winter. Also, Customer like to drink Hot chocolates in
winter time. They have distinctive breakfast according to regular time.

EXISTING LAYOUT

LAYOUT OF CHICAGO PIZZA RESTAURANT:

 NEW SUGGESTIONS FOR THE LAYOUT
The Pizza Restaurant Blueprint
Physical

Evidence
Receiving Order

Customer Giving Order

Shopping for Parcel
Actions Plates,
Mall Menu Chair,
Cutlery, Food
(Shipra Bill- desk
Line ofMall)
Interaction Napkin, Food Leaving restaurantTable
Delivery Tray
Tray
-------------------------------------------------------------------------------------------------------------------------------
Pans
Onstage
Greeting staff Take food Serving
Employee Delivery of Prepar
with smile order Waiting order to
Parking Entering food (serveCollect e and
Contact and inquire (commit at pizza those who
Eating
Bike and after 15 min) ing Proces
about to serve in restauran want parcel
Food
Orderin Order s bill
(waiter) takeaway or 15 min)
g t
Line of Visibility
Back-stage Account
Initiate Process food and
order Main
process preparation Purchase
Inventory
section

Line of internal interaction

-------------------------------------------------------------------------------------------------------------------------------

Registration Branch
Database Head
process
SUPPLY CHAIN:-

1). Procurement of Vegetables on daily basis from a vendor.

 10 kgs of Tomatoes
 10 kgs of Onions
 6 kgs of Capsicum
 200gms of Butter.
2). Doughs Procurement
 Once in every 15 days
 Expires in 24 hours
 Regular Pizza – 8 boxes -44 doughs
 Medium Pizza – 10 boxes -32 doughs
 Large Pizza – 6 boxes – 24 doughs.
3). Chicken
 Procured once in 15 days from Ghazipur Market
 Expiry time 20 days ( 20 Keema packets of 500 gms each).
4). Operating Time : 12 noon to 10:30 p.m.

5). Prior Operations :

 Prepare Making Table.
 Preparation of boxes.
 Sanitizing delivery bags
6). Daily Operations:-
 Raw Materials needed for daily operations are taken from store
and kept in walk-in-cooler where the temperature is little lower.
 Sanitizing bags – 10 mins
 Chickens – 12 hours expiry
 Vegetables – 18 hours expiry
 FIFO method is followed in choosing the raw materials.
Sales : 50-65 sales per day.
Peak time : 6-10:30 P.M.
 Procuring Making Doughs Procuring
Vegetables on • Once every 15 Chicken
Daily Basis. days • once every 15 days
• On Daily Basis

5). GOOD PRACTICES FOLLOWED BY ORGANIZATION DURING CONDUCT OF

VARIOUS BUSINESS OPERATIONS:
 Chicago pizza must design develop and introduce pizzas as a survival
growth strategy.
 The process designing in Chicago pizza is to analyse the work flow for
transforming raw material into final products and selecting the work
station for everyone including in a work flow.
 Chicago pizza forecast the allocation of human resources of good checking
for anticipating upcoming events in a period .
  Chicago pizza tries to provide a customer to a experience that they will
never forget by providing product by providing with highest quality
through use of appropriate production years.
 They assure the quality of quality of a product by relaying on an effective
feedback system and corrective action .
 To conclude at the end we can say that Chicago pizza service has
established several operation policy yet to manager are concerned and
face many issues that require professional and strategic response to
enhance overall performance of business .

INCLUDE YOUR EMPLOYEES.

They ask each individual crew member for thoughts and ideas in regards to
increasing efficiency and productivity.
Foster a sense of teamwork among the staff.
Tweak the schedule. Don't overschedule workers by putting too many
employees to work during the same shift.
Faster Ordering
It’s frustrating for customers to get a busy signal or to wait on hold when they
are calling to place an order. A phone order taken using a pizza POS system
takes less than 30 seconds compared to writing the order with paper and pen,
which could take anywhere from 3 to 5 minutes. A pizza POS system with
features like auto address complete, caller ID, and last order recall makes
inputting the orders even faster and easier. Employees can also quickly calculate
totals and run credit cards without leaving the workstation.
Upsells and Accuracy
A good pizza POS system can help you maximize every order. Restaurant owners
can configure the POS menu to prompt employees to upsell items like sides,
extra toppings and desserts. The system also accurately tracks every item
ordered, toppings and ensures that the bill is accurate. The POS system can also
help evaluate coupon deals and help you structure them to increase ticket
averages. For example, a family pizza with breadsticks, salad and a 2-liter of
soda — even discounted — means higher profit margins.
THANKYOU