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Domino S Operational Strategies and Operations Management Adnan Ul Haque
Domino S Operational Strategies and Operations Management Adnan Ul Haque
INTRODUCTION.......................................................................................................................... 04
RE-DESIGNING PRODUCT.......................................................................................................... 14
PROCESS DESIGN....................................................................................................................... 15
DEMAND FORCASTING.............................................................................................................. 18
SUPPLY CHAIN MANAGEMENT................................................................................................. 19
QUALITY MANAGEMENT........................................................................................................... 20
REFERENCES.............................................................................................................................. 23
List of Tables
List of Figures
Domino Pizza
LLC (Michigan)
Master
Franchise (UK)
V
Treat People as
A Think big and
you'd like to be
grow
trated
L
U Set the bar Measure,
high, train, managegee,
E never stop and share what
learning is important
S
Figure 2: Domino's values
Dominos becomes order qualifiers to the consumers due to convenience which is durability and
flexibility in its operations. Its taste, which means the quality and variety it offers to the
targeted audience. The service delivery is quick and prompt which indicate that operations are
speedy. Moreover in comparison to its competitor Pizza hut, it is cheap means low price so the
cost is another performance indicator that dominos mix in its operational strategies to make it
order qualifier. Considering order winners standards of Dominos, it is evident that the quality is
a consistent everywhere which means there is no change in the quality standards. Moreover,
the delivery to clients are in time which means that speed is a constant factor that has helped it
in earning orders. Furthermore, the operations are flexible and highly dependable one.
Customers heavily rely on the services that it will be in time and highly standardized. There is a
huge variety of products available which indicate towards flexibility again in the operations.
Based on the notion of different types of consumers like different taste so stores keep high
variety which help them in winning orders in the market.
THE CORE COMPETENCIES OF DOMINOS:
The core competencies of Dominos’ has enable it to be order winners and order qualifiers. It
strengthen its position in pizza food industry in home and take away criteria.
In the assembly line pizza production process, Dominos has high flexibility at batch processing.
Batch manufacturing process is used by Dominos to have consistency as well flexibility in the
Kitchen assembly line processing. Domino calls "make line" to its assembly line. This make line
methodology also facilitate Dominos to produce higher volume in rush and peak hours.
Sales-
Delivery/collection
Packing
Cooking
Assembly Line
Order
Placement
DEMAND FORCASTING:
"In order to forecast demand planning and inventory management, "prescient" distribution
planning is undertaken. Through this forecasting, demands are being matched by Dominos. This
also facilitates in increasing the overall supply chain efficiency in lean operations. Moreover, it
enable firms to check the inventory stock distribution time, as it optimizes the orders on the
basis of distribution centre, as by undertaking minimum quantity material required for
production. The entire forecasting and inventory management is done through ERP- Enterprise
Resource Planning" (Tripathy, 2011).
QUALITY MANAGEMENT:
Ahargrave (2003), explains that quality product and brand image is being maintained by the
Dominos, though pizza is stereotyped as "unhygienic" food. Though, the sales declined heavily
after the You Tube video about employees of Dominos doing unethical things with Pizza at
work.
Figure 17 Innovation:
Radical innovation is need of company that is explored by Dominos in its supply chain system.
When changes are essential, the supply chain incorporates it. The technique of three
dimensional car top sign is viral marketing, introduced by Dominos is an example of position
innovation. Process innovation at Dominos can be seen in 30-minutes delivery approach
(Goldenberg & Mazursky), and spoodle development for sauces (Tripathy, 2011). Domino's
product innovation is visible in corrugated boxes of pizza so protect it from physical damage,
moisture, and preventing cheese to stick to box, and heat wave bags to keep it hot.
CONCLUSION & RECOMMENDATIONS:
To put it in a nutshell, at present Dominos is in state of change as from the detailed analysis of
the operations at Dominos, it is evident that innovation has been its key approach to make its
operational strategies work in positive and constructive manner. It has the potential to come up
with innovative as well cost effective operational strategies to increase its efficiency in the
operations management. On the basis of 5-performance objectives, it can be said that Dominos
has high speed, dependability, flexibility in operations and has moderate quality while cost is
high but under control so far. It is more of initiator who comes up with new innovation to
compete with rivals as it never take pull-based approach but posses push-based strategies. The
operational strategies have been designed after the customer feedback to ensure that the
operations are done to satisfy the needs of consumers, especially take away customers. The
consumer survey done in 2009 revealed that the quality was not up to standard and it served
the basis for improvement as the company re-designed it's production process according to
customer's taste..
Despite some serious challenges from the competitors, still Dominos is experimenting and
increasing its base products such as shifting from core product pizza towards club sandwiches.
This has further complicated the supply chain for the organisation as the time of cooking has
increased which ultimately indicating that the delivery time extends. The speed and durability
factors of performance are affected by it. Being, in the state of change, the picture is not clear
at present but if the expansions are being managed by the Dominos in effective and efficient
manner then it may provide leverage to strengthen core products by increasing its overall
market share.
The supply chain management is working in right manner but there is a need to have total
quality management that can reduce the wastage and error by ensuring quality is kept first
priority. Furthermore, in assembly line system, Dominos cannot maintain proper balance due
to different activities consumes time differently and it is not automated as uneven flow in the
process occur due to different efficiency level of team members. This is one of the drawback of
make line as in peak times, there can be blockage in production. Moreover, high quality GPRS
navigation systems should be installed in cars and so that on-time delivering in the peak hours
can be made possible due to topographical knowhow as more than 60% of sales of Dominos is
through home deliveries.
There is need of proper inventory management as at time the sock of dough is excessive and
the boxes etc are more than normally required. The Master Franchise should be connected with
the stores to show the exact requirements and ERP should be used by the stores also to keep a
regular check. The stock management areas should be developed and distribution channels
should also be very speedy and effective to deliver the material in time. A stock control tool
such as supply chain optimization tool should be used and inventory optimizing software should
be kept for maintaining the track. Similarly, the quality should be improved by introducing
check sheets and control charts should be used more frequently. To enhance customer loyalty,
emotional connection should be made with the product by training staff to be more friendly
and the environment should encourage the families to visit. It should increase its promotions
on social media, or viral marketing as by emotional intelligence is used in promoting the brand
should be done so that it facilitates the operational activities to progress in right channel.
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