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Presentations text content in “ My

Slide1

“My Compliments to the Chef, er, Buyer“

Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy

Operations

Management

Prof. Ying

Jiun

Hsieh

Slide2

Outline

Case

Introduction

Question

Discussion

Conclusion

Questions

and

Answers

Slide3

Case Introduction

How they are able to serve everything on that menu quicklyFlash-frozen and vacuum-packedTop- quality restaurants like Fuddruckers and Perkins are going the outsourcing routeTaglines such as “Hours versus ours” and “Just heat and serve”

Slide4

What can be outsourced?

Delivery of ingredients

Preparation of the food

Food arrangement

Others:

Accounting and payroll services

Kitchen cleaning

Laundry

Advertisement and marketing

IT (website maintenance)

Slide5

Question Discussion

Question

1

Explain

the

meaning

of

the

phrase

Hours

versus

ours

.“

Slide6

“Hours versus ours“

Consumer-goods companies such as Sara Lee, Land O´Lakes used slogans as advertisement

“Hours versus ours“, “Just heat and serve“

Stimulate B2B-relationships with restaurants

timely serving capability of restaurant businesses can be increased

Encourage restaurants to outsource business operations

Slide7

Outsourcing vs. In-House

Capacity planning to identify requirements

Slide8

Example Outsourcing vs In-House

F

ast casual restaurant - Fuddruckers

In-House Burger

Outsourced

Burger

Time

Slide9

Question Discussion

Question

2

What

advantages

are

there

when

restaurants

outsource?

Slide10

Advantages of outsourcing in restaurant

Improve efficiency

Save time to prepare or manufacture materials

Cost saving

Labor cost

Operating cost

Improve

productivity

Expertise

Avoid time consuming of training employee

Demand

Wide fluctuation in demand

Slide11

Question Discussion

Question

3

What

are

some

important

disadvantages

or

limitations

of

outsourcing

for

restaurants

?

Slide12

Disadvantages of outsourcing in restaurant

Quality consideration

How to monitor the quality of the food

material

Risks

Loss direct control of operation

Delay in

delivery

Quality

defects

Taste (loss of freshness)

Damage

to the organization’s reputation

Losses customer

s

reliability

Slide13

Question Discussion

Question

4

Do

you

consider

restaurant

outsourcing

to

be

dishonest

?

Unethical

?

Explain

.

Slide14

In our opinion

W

e

focus on restaurant

-can provided food

faster

-capability-price-ratio

-

feature

-

health

*

If the restaurant

can suit

our

demand

we consider it is ethical

Slide15

Restaurant outsourcing

1.

A

dvantage

-reduce product cost

(low price)

-increase business efficiency (

faster)

-focus

on core

product (

feature

)

2.

Heath (safety

of the food )

Slide16

Question Discussion

Question

5

Does

restaurant

outsourcing

increase

capacity

?

Explain

.

Slide17

Measures of capacity

1.Restaurant capacity = inputs / outputs

-Inputs = number of

tables , seating

capacity

-Outputs = number of

meals

served per hour

2.

Outsourced

part of cooking process can increase output

measures

Shorter

lead time

Increased number of meals served per

hour

Slide18

Take macro view

It’s important to consider how parts of system

related.

- if the restaurant have high

productivity

because of

outsourcing,but

don’t have

enough inputs to serve

customers

is not

good.

ex

: to add more tables and

seats

Slide19

Conclusion

Control 100% of your core, outsource everything else. Don’t open a restaurant if no one can cook!

Customer

review

:

“Unfortunately everything we ordered was from a frozen box and then deep fried. At least it was all served hot (from the deep fryer) except the burger which was the Costco style claw burger on a stale bun. Everything unimaginatively warmed up, ...just heat and serve. Even the burger condiments seemed tired!”

Slide20

Questions and Answers

Slide21

References

Operations Management by William J. Stevenson (11th Edition).

http://www.tripadvisor.ca/ShowUserReviews-g2086961-d3846663-r152832353-Sandy_s_Family_Restaurant-Mildmay_Bruce_County_Ontario.html

http://www.makingthingsoutofnothing.com/post/42502126421/control-100-of-your-core-outsource-everything-else


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