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Identification and Elimination of Bottleneck for Competitive Advantage - Term Paper Example

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IDENTIFICATION & ELIMINATION OF BOTTLENECK FOR COMPETITIVE ADVANTAGE NAME(S) OPS/571 DATE NAME OF PROFESSOR Introduction The operational dynamics of Mario Pizza store were analyzed and operational improvements were made in a step by step process yielding operational efficiency…
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Identification and Elimination of Bottleneck for Competitive Advantage
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"Identification and Elimination of Bottleneck for Competitive Advantage"

Download file to see previous pages Identification of Process Bottlenecks The implementation of Six Sigma Principle involved a step by step improvement of quality standard. The processes which improve the system’s overall quality often prove to be the ones restricting the capacity of the system and overall process. The constraints of the system results in inherent flaws and reduces the operational efficiency, thereby impacting the profits. The processes which act as a constraint in Mario Pizza Store increase the cycle time1 resulting in a decrease in the profits and leads to customer annoyance. The main constraints of the system are the order processing time and wait time for the customers (Shafer and Meredith, 2009). The order processing time includes the time spent in order acquisition and manufacturing of Pizza until the customer is served. The order acquisition by the waiters is a difficult measure to model and improve because of the presence of a human element. The menu points can solve this tangle giving a rather measurable indicator which can be worked on. The manufacturing involves the presence to required ingredients in the right shelves which are readily accessible by the kitchen staff (Stevenson, 2011). The processing time of the ovens is another indicator which can be easily monitored and improved by the utilization of automatic ovens and utilization of better technology. The automatic ovens can also help to reduce the kitchen staff. The second constraint highlighted in the process is the wait time of the customer which is inturn dependent on the length of the queue and seating capacity. The enhancement in seating capacity is a strategic decision involving serious financial implications and is not advisable because the same would result in under utilization of seating capacity during non-peak hours thereby increasing the maintenance costs (Jacobs and Chase, 2010). The improvement in the order processing time can reduce the waiting time as well which would reduce the overall cycle time. The main constraint in the system causing a bottleneck is the order processing time whose improvement will definitely improve the waiting time. The emphasis should therefore be placed on the improvement of order processing time (Stevenson, 2010). 1Cycle Time: The total time a customer spends in the Pizza store from entry till departure. Improvement in Bottleneck Resource The order processing time can be reduced thereby optimizing the overall process capability. The introduction of better cooking oven, the availability of inventory and the placement of ingredients at the right place can significantly reduce the processing time. The placement of ingredients in readily accessible shelves will reduce the movements of the kitchen staff. Advanced cooking ovens will not only improve the processing time but the setup time as well. The availability of inventory will reduce the idle time of the ovens (Jacobs, Chase and Aquilano, 2005). Conclusion The correct identification, diligent analysis and successful improvements in a bottleneck enhance the overall performance of the system. The suggested measures will not only reduce the overall cycle time but will also be instrumental in increasing the profit margin as well as the customer satisfaction. The improvement in the core technology & inventory system will reduce the process time of bottleneck and perk up the system’s overall efficiency. As Goldratt said “ ...Download file to see next pagesRead More
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