Business Process Improvement: The Case of Pizza Hut - Coursework Example

? Business Process Improvement: The Case of Pizza Hut Table of Contents Table of Contents 2 0 Introduction 3 2.0 Pizza Hut PizzaOriginal Process Map 4 3.0 Pizza Hut Pizza Revised Process Map 5 3.0 Process Improvement Measure 6 3.1 Details of the Proposed Measure 6 3.2 How It Will Lead to Improved Profitability 7 4.0 Conclusion 7 5.0 List of References 9 1.0 Introduction Business process improvement is the idea of changing the business processes with the goal of improving the performance of the organization. Performance can be improved through different ways, this can be under efficiency, customer satisfaction, increased productivity, reduced costs and so on (Kock, 2005). Harrington indicates that companies nowadays, use quality as a competitive advantage. In order to ensure high quality, the company has to work on how to improve its quality always. This has to focus on; enhanced customer satisfaction, reduced costs, and increased productivity. Improvements can be done through new technology, use of statistical controls, enhanced business process efficiency, effectiveness and so on (1991). In this assignment, the aim is to propose a business process improvement measure for a cafe producing pizza (Pizza Hut) and show how this will improve profitability or not. The first section has the original pizza ordering process map, the second has the revised one considering the BPI, the third section has the explanation of the BPI measure, and lastly, the conclusion. Pizza Ordering and Delivery Process Customers can make online orders, call through their phones or make orders at the counter in the stores. Online orders can be made through a computer or through iphones. There are two types of services concerning pizzas: Delivery and takeouts (Pizza Hut, 2011). 2.0 Pizza Hut Pizza Original Process Map (Information about the process obtained from Pizza Hut Website, 2011) 3.0 Pizza Hut Pizza Revised Process Map 3.0 Process Improvement Measure Improvement of the Order Management System Aim: Improve the order management system so that every 10 minutes there is a delivery or a take out. Objectives: Improve the efficiency of order delivery and takeouts Increase the number of employees (cooks) Change the allocation of orders’ system 3.1 Details of the Proposed Measure The system will be organized in such a way that every ten minutes of orders received are processed at the same time. For this to be possible, the company must employ at least 10 cooks responsible for different types of pizzas. The ingredients for the different types should always be ready so that minimum time is used for making the dough or any other. The average cooking time for a pizza is 15 to 20 minutes, so each pizza should be allocated a maximum of 20 minutes. The ten employees will be divided into five groups with each group having two cooks. From the order reception system, the first ten minutes’ customer orders will be considered a group and sent to the first group among the five groups of cooks. Let the groups be named A, B, C, D and E in this case. The first orders (within the ten-minute period) are given to group A, the next ten-minute orders given to group B and so on. These groups will take the first five to ten minutes preparing the pizza dough and every other requirement. All the pizzas will then be placed to cook for 15-20 minutes. These will then be sent to the cut table, then to the dispatch table; an approximate waiting time of 50 minutes. So group A will be ten minutes earlier than group B, Group B will also be ten minutes earlier than group C and so on. The system will be such that, every ten minutes, there are deliveries to made and takeout to dispatch. For those who take out, the dispatch has all the details about who it should go to. In most cases, customers order when they are at work, home or far from the restaurant, when given this time to wait (50 minutes), they will not be disappointed. If there will be any cases of lateness, it will not be more than 5 to 10minutes. 3.2 How It Will Lead to Improved Profitability Having one to five cooks for every customer is not enough and is not efficient. People like being told the truth. They would rather be told the ‘long wait’ time than a short wait time which will turn out to be more in reality (unrealistic short time). A pizza takes 15-20 minutes to cook, preparation time should be considered, and that should be approximately 5 to 10 minutes. Other processes other than delivery, should also take 5 to 10 minutes. The total time taken should therefore be: 40 minutes. People place orders every time and each order has to be dealt with differently. The proposal here is to take orders every ten minutes for processing. This adds the total time needed to 50 minutes. Pizza Hut should therefore set its waiting time at 50 minutes. If possible, this should be explained to the customers so that they understand the waiting time, but not the whole process. This will increase the number of customers, retain more, build the company’s reputation and improve its efficiency. 4.0 Conclusion The current order management system delays pizza delivery at the right time. There have been complains about Pizza Hut on its waiting time. Most customers say that its waiting time is inaccurate (They say the company gives 20 minutes for the pizza to be ready, but takes longer than that) (Planet Feedback, 2011). This is not good for the company’s reputation as well as customer’s trust. Customer trust is very important in business. It helps retain and attract more customers, which increases the performance and revenue of the company (Grigoroudis & Siskos, 2009). Such kinds of lies are not good for long term business; additionally, Pizza Hut is a global company. Improved efficiency in delivery and customer satisfaction will improve the company’s performance. 5.0 List of References Grigoroudis, E. and Siskos, Y. (2009). Customer Satisfaction Evaluation: Methods for Measuring and Implementing Service Quality. New York: Springer. Harrington, H. J. (1991). Business Process Improvement: The Breakthrough Strategy For Total Quality, Productivity, And Competitiveness. New York: McGraw-Hill Professional. Kock, N. F. (2005). Business Process Improvement Through E-Collaboration: Knowledge Sharing Through The Use Of Virtual Groups. London: Idea Group Inc (IGI). Pizza Hut. (2011). Order Online.Retrieved on 1st December 2011 from: http://www.pizzahut.co.uk/restaurants/order-online.aspx Planet Feedback. (2011). Wait Times Inaccurate When Compared With Reality. Retrieved on 1st December 2011 from: http://www.planetfeedback.com/pizza+hut+inc/wait+time/wait+times+inaccurate+when+compared+with+reality/326551. Read More