A Report on

Production &
Operation
Management

Date of Submission: 14 Dec, 2019

Submitted to-

Raihan Sharif (RSH3)

Lecturer, Department of Management
North South University

Submitted by:
Group: ONE

Name ID
Md. Kamrujjaman rafi 1620258030
Khaled Mahmud Sultan 1610724642
Md Mehedi Hasan 1620301030
Jakaria Hossain Shajid 1621829030
Tasnim Zaman Mridula 1731018030
Afsana Hossain Hashi 1731293630
 Table of Contents

Contents Page Number

1. Executive Summary 1

2. Brief Description of the Business 2

3. Production 3

4. Operation Strategies 3

5. Business's waiting line management 6

6. Facility layout 7

7. Process map 8

8. Analysis of Quality Control Issues 8

9. Forecast 10

10. Operational Problems 11

11. Recommendations 12

12. Appendix 13
 Executive Summary

Kacchi Khor - কাচ্চি খোর, which is a restaurant dedicated to satisfying the cravings of food

lovers with their delicious take on the traditional feast of the Sultans. They never compromise

with the quality of their food. They collect raw materials from Dhaka's Karwan Bazar that are

closely monitored to ensure the highest quality. Any raw material or supply that is not up to

their standard is tagged and removed right away and the items that pass the quality check are

sent to the kitchen for final production. Their only branch is at 76, Kazi Nazrul Islam

Avenue, Farmgate, Dhaka, Bangladesh. The food quality and taste are the key factor for

Kacchi Khor - কাচ্চি খোর. Their menu is appealing for any Kacchi lover as they serve several

different variations of Biryani and Kacchi and have various platters in different portions. The

platters they serve are very well decorated. Their Kacchi Biryani has the right balance of

ingredients and has a perfect combination of spices making it not too spicy, not too bland,

giving it a mouth-watering taste with succulent pieces of meats and potatoes. They provide

the most authentic and most affordable Basmati Kacchi in town for all the food lovers. The

quantity they serve is more than enough for one. Their Basmati Mutton Kacchi biriyani costs

BDT 185 per plate. They ensure the optimum use of space and resources and simultaneously

sustain premium quality for consumer satisfaction. Their environment is very friendly and

relaxed. They not only focus on their food quality but also on the service that they provide to

their customers as well as the ambiance. Kacchi Khor uses the naive forecasting system to

determine future demands. It is a startup business and the owners are also not very

experienced in this field.

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 Brief Description of the Business

Product packages are a combination of goods and services. Product packages can make a

company more competitive. Kacchi Khor offers both products and services. Kacchi Khor

comes with the attentive and courteous service provided by their floor staff, and the

indescribably delicious Kacchi Biriyani prepared by their motivated kitchen team. Their

menu consists of Basmati Mutton Kacchi Biryani, Basmati Beef Hyderabadi Biriyani,

Basmati Chicken Mughlai Biriyani, Chicken Roast, Beef Rezala, Shahi Pulao Mutton Kacchi

biriyani. They have dine-in facilities, home delivery, and catering services. They provide

home delivery with PathaoFood, Foodpanda, HungryNaki and Ubereats. They operate from

12:00 pm to 10:30 pm. They serve about 180 to 200 guests daily and deliver catering orders

of 2000 packs monthly on average. Their busiest day is Thursday. They have rush hours

mostly between 1:00 pm - 3:00 pm and then again between 6:00 pm - 8:00 pm. Their dine-in

space is a bit small in comparison with their demand. Its only 280sqft and they can only serve

25 persons at a time which is an issue for them to accommodate their guests during rush

hours. For this reason, their guests usually need to wait outside in a line up which is adversely

affecting their quality of customer service. They have no solution for it right now as they are

not capable of affording a bigger place. In a very short time, they have gained a huge number

of Kacchi lovers as their loyal customers. People love their food because of its authentic taste

and quality at a very reasonable price. They want to make their place affordable for everyone

especially for students who usually have a low budget. They also try to keep their kitchen

hygienic and maintain a proper standard.

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 Production

Raw materials collection: They collect all their resources from nearby, Karowan Bazar.

Which is undoubtedly biggest market for raw materials in Bangladesh. Apparently, they get

the highest quality of raw materials at the lowest possible price. To provide quality, Kacchi

Khor - কাচ্চি খোর never stores food that has chances of expiring. They renew inventory twice

every week.

Processing: They never compromise with the food quality and hygiene. So, they strictly try

to maintain freshness and hygiene of food they provide.

Cooking: Foods are cooked in an assembly line. Then distribute according to orders.

Packaging: Attractive and high-quality packaging is provided with every take away.

Transporting: For transportation, they don’t have mini food trucks to deliver to destination.

So, they use local transportation like CNG.

Operation Strategies

To survive in the heated-up food business in Dhaka, Kacchi Khor - কাচ্চি খোর follows a

unique strategy to stand out in food industry. Majorly known as a catering service provider, it

also provides online order and dine in. Reasons for following this trio is to meet client needs

in all sector of food industry.

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Dine In: They have a 280 sqft restaurant for serving regular tempted kacchi lovers near

farmgate. To cut cost, they decided to put the kitchen outside the restaurant. Also, for being a

catering service, they require a big work space. After cooking in a bulk, they distribute the

orders and brings the forecasted amount of food required into the restaurant.

Targeted customers are usually students and job holders near farmgate area.

Catering: In a busy and workaholic city like Dhaka, people always want to push the

unnecessary hustle away. To serve these people with convenience, Kacchi Khor - কাচ্চি খোর

provides exceptional quality of food at a very reasonable cost. Often, Catering service can be

exhausting. It's hard to find customers in this competitive business. But, Kacchi Khor - কাচ্চি

খোর believes "Quality is the key" and tries to provide high standard hygienic food to stand

out from others in this business. Obviously, every mouth trying their food is a potential

customer.

Targeted customers are usually corporate executives and university students all over Dhaka.

Online order: In this era of smartphones and flexibility, online food service is undoubtedly

the fastest way to reach out to its customers. Accordingly, Kacchi Khor - কাচ্চি খোর has

already done their negotiations with companies like Foodpanda, Hungrynaki.com,

Pathaofood and Ubereats.

Targeted customers are usually people who liked their food previously, and want to taste

again.

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Here are six ways that Kacchi Khor - কাচ্চি খোর can ACE their catering business stand

out from the competition and win newer and return customers.

Brand the catering vehicle

Branding the vehicle in a lucrative manner can give much highlight. Such as- A picture of

delicious looking boiled potato in between rich flavored basmati rice swimming in an ocean

of tender mutton pieces. Who wouldn't crave for it?

Marketing and Social Media

Social Media has changed food business undoubtedly. There are thousands of options within

customers finger tips. Even as a consumer, we often chose what to try from our social media

suggestions. So, it's high time to know where to invest on for marketing purpose.

Never compromise with quality

The bottom line is that the entity that hired your catering service wants their guests to enjoy

the food and beverages that you will be supplying. Be absolutely certain that you do not

disappoint them! You are playing to a large audience of potential customers and you want to

give them all your best. The quality of the food you serve should never be a reason for a

customer to complain. (Business First Family, 2019)

Develop personal connections

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Developing relationships with local event-oriented vendors is a great way to get attention for

your catering business. Networking with individuals in key businesses can be an excellent

way to give your catering business a distinctive presence in the community. Although,

Kacchi Khor - কাচ্চি খোর is already into their work. They maintain their relationship with

fixed corporate clients which is remarkable. (Business First Family, 2019)

Customer relationship management

In a catering business, service is paramount to success. Servers should have top notch training

to deliver high quality service and experiences to guests. Also, keeping in good touch with

customers even after delivering the foods can build better customer relationship.

Free tasting and treats

To get customer loyalty, you have to show loyalty too. Could be by offering them discounts

and treats or giving promo codes online. This will make them feel valued and make them

realize that you care for your customers.

Business's waiting line management

Waiting line management is used to reduce waiting time for customers to provide high

quality service and customer experience. Kacchi Khor - কাচ্চি খোর provides both online and

offline serivce. For online service, they partnered with online highly efficient food delivery

vendors like- Foodpanda, Shohoz, Ubereats and Pathao. And for restaurant they have

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counters taking orders and has maximum 25 seat capacity. Plus, it's a finished good, so they

keep the serving time relatively low to be called an issue.

Facility layout

Facility layout refers to the manner by which work stations, hardware, machinery and

employees are situated inside a work facility. Kacchi Khor - কাচ্চি খোর follows process layout

that is designed for the floor plan which aims to improve efficiency by arranging equipment

according to its function. It is the most commonly used method in the mass production of

products.

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8|Page
 Process map

Analysis of Quality Control Issues

Quality control is the process by which a business seeks to ensure the quality of product

which is maintained or improved with either reduced or zero errors. Major aspect of quality

control is mainly the establishment of well-defined controls. These controls actually help to

standardize the production and also the reactions to the quality issues.

There are mainly two ways of issues-

1. External issues &

2. Internal issues.

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 External issues of Kacchi Khor

External issues happen after the delivery of the product. Several of external factors can

impact the ability of a business or in the investments to achieve its strategic goals and

objectives. External issues might include competition, social, legal and technological changes

and also in the economic and the political environment.

1. The major problem currently they are having is the increase of Onion price, it affects profit

margin.

2. The metro rail construction work is the reason for the customer satisfactory problem.

Customers are facing problems to park their Cars. Because they don’t have any parking space

but they can’t also provide street parking.

3. UBER EATS and PATHAO FOOD delivery problem is the issue of getting the bad

reviews from the customers. Delivery men are sometimes being too late to deliver their food.

It has an impact on their food. Khacchi gets cold, which isn’t acceptable.

4. There is also have a restaurant named “Kacchi Khor Restaurant” in Motijheel, which is not

the original one. Sometimes people get confused and write the bad reviews in the facebook

page of the main branch instead of giving those reviews to the motijheel branch.

Sometimes they got the good reviews and sometimes the reviews are not worthy. Overall

after delivery their quality control is not profitable as expected. At the end of the day they

lose a potential customer.

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 Internal Issues of Kacchi Khor

Internal factors are mainly happening before the product is ready or when the product is

ready to deliver.

1. They only have one chef, so because of his personal issues sometimes their business gets

affected. By not having another or alternative chef they are facing some internal problems in

their daily life.

2. They also have some decision-making problem because of having 5 members as directors.

Forecast: Moving Average of Kacchi Khor

After they started their business, they did analyze almost 3-4 weeks of the sales record. They

sold almost 180-200 plates on average per day. They usually get 2000 packs of catering

order. Their busiest day in every week is Thursday. Their Friday sale is the lowest among all

days. In the very beginning they wanted to sale maximum 300 plates daily without having

proper forecast. Unfortunately, they failed so for this reason their business had loss. For

introducing something new or to have any kind of business strategy change they use

Judgmental Forecasts. They mainly use executive opinions and customer surveys.

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 Operational Problems

“Kacchi Khor” is facing some operational problems inside their restaurant as they are new in

the market and started their journey on October, 2019. The problems which “kacchi Kho|r” is

facing are given below:

 Their very first problem is their inventory management. They are unable to manage

their inventories accordingly as they do not have any storage facility in case of any

unavoidable circumstances.

 They purchase their raw materials for “Kacchi Biriyani” (which is their main

concentration) twice in week and they do not carry any safety stock in hand. For this

reason, sometimes they failed to fulfill the customer demand.

 They have only one chef to prepare the food (“Kacchi Biriyani”) and 1 helper to help

the chef. They are totally dependent on the chef because their whole operation will be

stopped if the chef became sick or absent for any reason.

 They have 5 stuffs in total and only 2 stuffs serve the food items to the customers and

that’s why customers have to wait for the food for the longer period of time and for

this late service issue, customers became disappointed.

 They have the dining facility inside their restaurant but only for 20 to 25 peoples

which creates rush during the lunch and dinner time. As the place is very small,

customers have to wait a bit longer to get their food.

 In their menu card they have the names of different food items which are not available

in their restaurant all time. So, when customers order those foods, they don’t get the

food and became despondent.

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These are the operational problems that “Kacchi Khor” is facing every now and then.

Customers are losing their interest for “Kacchi Khor” as there are good competitors such as

“Sultans Dine”, “Kacchi Bhai” which gives customers better quality of food and service.

Recommendations

 They should give focus on inventory management so that they can fulfill the shortage

and fulfill the customer demand.

 They should carry out some safety stock so that they can satisfy their customers by

fulfilling their demand on time.

 They should hire some stuff’s so that they can serve their customers faster and by this

way they would be able to get their customer satisfaction.

 They should hire one alternative chef so that they can manage the situation in the

absence of the main chef. In this way, the risk of closing the whole operation will be

minimized.

 They should expand their dining space so that customers can eat their food peacefully

and it will also minimize the rush which they face during lunch and dinner hours.

 They should give more focus on the service which they are providing to their4

customers in order to attain customer satisfaction.

 They should take customer review of their food and service manually. It will help

them to analyze their inaccuracy and will help them to find the better ways to solve

the problems which customers are actually facing. It will also assist them to know

what customers actually want from them.

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 Appendix

1. Business First Family. (2019). Get Your Catering Business To Stand Out In Any Industry.

[online] Available at: https://businessfirstfamily.com/catering-business-stand-out/?

fbclid=IwAR1ETHsfsxD3YsNLWk1acfoTGJJAH2krI0N0HdrdZSa5Atnr0c5ssz-5ud0

2. Facebook.com. (2019). Kacchi Khor - কাচ্চি খোর. [online] Available at:

https://www.facebook.com/kacchikhors/

Group Photo

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