Mancalas Pizzas Problem Solving - Essay Example

29 March 2007 Mancala's Pizza: A Case Study Introduction The success or even mere survival of a business organization lies on its ability to maximize its resources given its constraints. As such, pizza production in Mancala's Pizzas is hugely dependent on the level of resources and the ability of its managers in efficiently utilizing them to maximize profits. The company is currently challenged in these areas. It's operation is presently composed of six stages namely, order taking, assembly of ingredient, tossing and molding the pizza shell, assembly of pizza, waiting, and cooking (Appendix 1). The total capacity of Mancala's Pizzas is 30 pizzas per hour which is directly dependent on the maximum output that can be generated by the tosser (Appendix 2). Mancala's Pizzas throughput time is 16.4 minutes. The company currently has excess capacity because demand averages at only 20 pizzas her hour (Appendix 2).However, it is estimated that the company's demand will double if delivery services are offered. Presentation of the Problem Mancala's Pizza's problem can be generally and broadly stated as follows: What should the company do in order to maximize the capacity of its resources and take advantage of the untapped demand in the market Areas of Consideration 1. The company's production process is dependent on the capacity of the tosser. 2. Mancala's Pizzas currently lacks the manpower for the delivery process. Alternative Courses of Action 1. The company's pizza shells will be produced before each day's hour of operation. This alternative is aimed at eliminating the bottleneck in Mancala's Pizza's production process. This will be done by assigning the tosser to mold the pizza shells prior to their use. It should be noted that as such, the assembly of ingredient and the tossing and molding of pizza will be eliminated in the new production process (Appendix 3). This will lessen the throughput time to 14 minutes per pizza. It will also allow the company to produce a maximum of 36 pizzas per hour which is based on the maximum capacity of its six ovens (Appendix 4). The main disadvantage of this alternative is the fact that the Mancala's Pizzas might encounter hesitance in the part of the tosser. It should be noted that in this new production process, the tosser is eliminated in the actual production process and will be coming before office hours. The company will also need to negotiate with the assembler as he needs to assemble the ingredients before it can be toss and molded by the tosser. Thus, he will also be assigned to come prior to operation hours and will still be there to assist in the operations to assemble the pizza. In this new process, Mancala's Pizza faces the risk of lowering the quality of its pizza. The freshness of the product might be adversely affected. Also, as pizza shells are dependent on the preference of the customers, the company needs to have an accurate estimate of demand per pizza shell in order for the assembler and tosser to produce the right ones. The company might either encounter wastage or shortage of inventory if the proper shells are not produced. 2. Mancala's Pizza will increase demand by delivering pizzas directly to customer. The delivery of Pizza is expected to double the demand for the company's products. This will be beneficial for Mancala's as it will generate more revenue and profits for its operations. It will also enable the business organization to fully utilize its resources and use its excess capacity. However, it should be noted that the current resources are not adequate to support a demand of 40 pizzas an hour. Assuming that alternative 1 is already in place, the company is limited to the production of 36 pizzas only which is determined by the capacity of its ovens (Appendix 4). Recommendation and Conclusion It is recommended that Mancala's Pizza push through with the two alternatives. Eliminating the bottleneck in production will allow the business organization to produce more and take advantage of the other opportunities in the market. However, as stated above, the company will be facing some problems with this alternative. It is recommended that Mancala's Pizza negotiate with its tosser and assembler in order to convince them to work earlier than usual. Higher salary might be an incentive. The company should also guarantee the freshness of its pizza by having the tosser arrive an hour before operation. Pizza delivery is a very good opportunity for Mancala's Pizza. This service is a value-added for customers and can be used as an advantage against its competitors. However, it is also recommended that the business organization increase its resources in order to expand its capacity from 36 to 40 pizzas an hour through the purchase of an additional oven. This additional resource will enhance capacity to 42 pizzas per hour, well over the expected demand of 40 pizzas per hour. The company should also hire an additional personnel in to undertake the deliveries. Appendix 1. Current Production Process of Mancala's Pizza Appendix 2. Performance Measures for Mancala's Pizza's Current Production Resource Number Minutes per Pizza Capacity % Utilization Order Taker 1 negligible Infinite 0% Assembler 1 1.5 40 50% Tosser 1 2 30 66.70% Chef 1 negligible Infinite 0% Oven 6 10 36 55.50% Appendix 3. Production Process Under Alternative 1 Appendix 4. Performance Measures Under Alternative 1 Resource Number Minutes per Pizza Capacity % Utilization Order Taker 1 negligible Infinite 0% Assembler 1 1 40 50.00% Tosser 1 negligible Infinite 0.00% Chef 1 negligible Infinite 0% Oven 7 10 36 55.50% Appendix 5. Performance Measures When Additional Oven is Purchased Resource Number Minutes per Pizza Capacity % Utilization Order Taker 1 negligible Infinite 0% Assembler 1 1 60 66.67% Tosser 1 negligible Infinite 0.00% Chef 1 negligible Infinite 0% Oven 7 10 42 95.23% Read More