CASE STUDY STRAMA

Professor Sang Lee is fond of relating a story which happened during one of his visits to Tokyo.
A particularly engaging discussion on the differences between US and Japanese management
systems was interrupted by the Japanese host who pointed out that it was time for lunch, but
that he wished to show his American guests the "most productive operation in Japan."
Professor Lee goes on to describe the luncheon: "They took me to a sushi shop, the famous
100 Yen Sushi House, in the Shinzuku area of Tokyo.
Sushi is the most popular snack in Japan. It is a simple dish, vinegared rice wrapped in different
things, such as dried seaweed, raw tuna, raw salmon, raw red snapper, cooked shrimp,
octopus, fried egg, etc. Sushi is usually prepared so that each piece will be about the right size
to be put into the mouth with chopsticks. Arranging the sushi in an appetizing and aesthetic way
with pickled ginger is almost an art in itself."
Love for seafood is believed to be one of the major contributing factors to the high longevity
rates in Japan. The average Japanese eats more than 154 pounds per year, or almost one-half
pound per day'. Japanese customers are not only particular about taste but they also demand
aesthetically pleasing servings.
"The 100 Yen Sushi House is no ordinary sushi restaurant. It is the ultimate showcase of
Japanese productivity. As we entered the shop, there was a chorus of "Iratsai' a welcome from
everyone working in the shop-cooks, waitresses, the owner, and the owner's children. The
house features an ellipsoid-shaped serving area in the middle of the room, where inside three or
four cooks were busily preparing sushi. Perhaps 30 stools surrounded the serving area. We
took seats at the counters and were promptly served with a cup of Misoshiru,' which is a bean
paste soup, a pair of chopsticks, a cup of green tea, a tiny plate to make our own sauce, and a
small china piece to hold the chopsticks. So far, the service was average for any sushi house.
Then, I noticed something special. There was a conveyor belt going around the ellipsoid service
area, like a toy train track. On it I saw a train of plates of sushi. You can find any kind of sushi
that you can think of - from the cheapest seaweed or octopus kind to the expensive raw salmon
or Shrimp dishes. The price is uniform, however, 100 yen per plate. On closer examination,
while my eyes were racing to keep up with the speed of the traveling plates, I found that a
cheap seaweed plate had four pieces, while the more expensive raw salmon dish had only two
pieces. I sat down and looked around at the other customers at the counters. They were all
enjoying their sushi and slurping their soup while reading newspapers or magazines."
"I saw a man with eight plates all stacked up neatly. As he got up to leave, the cashier looked
over and said, '800 yen, please.' The cashier had no cash register, since she can simply count
the number of plates and then multiply by 100 yen. As the customer was leaving, once again we
heard a chorus of 'Arigato Gosaimas' (thank you) from all the workers."
Lee continues his observations of the sushi house operations: "In the 100 Yen Sushi House,
Professor Tamura [one of his hosts] explained to me how efficient this family owned restaurant
is. The owner usually has a super ordinary organizational purpose such as customer service, a
contribution to society, or the well-being of the community. Furthermore, the organizational
purpose is achieved through a long-term effort by all the members of the organization, who are
considered family'."
"The owner's daily operation is based on a careful analysis of information. The owner has a
complete summary of demand information about different types of sushi plates, and thus he
knows exactly how many of each type of sushi plate he should prepare and when. Furthermore,
the whole operation is based on the repetitive manufacturing principle with appropriate just-in-
time' and quality control systems. For example, the store has a very limited refrigerator capacity
(we could see several whole fish or octopus in the glassed chambers right in front of our
counter). Thus, the store uses the "just-in-time' inventory control system. Instead of increasing
the refrigeration capacity by purchasing new refrigeration systems, the company has an
agreement with the fish vendor to deliver fresh fish several times a day so that materials arrive
'just-in-time' to be used for sushi making. Therefore, the inventory cost is minimal."
...In the 100 Yen Sushi House, workers and their equipment are positioned so close that sushi
making is passed on hand to hand rather than as independent operations. The absence of walls
of inventory allows the owner and workers to be involved in the total operation, from greeting the
customer to serving what is ordered. Their tasks are tightly interrelated and everyone rushes to
a problem spot to prevent the cascading effect of the problem throughout the work process."
"The 100 Yen Sushi House is a labor-intensive operation, which is based mostly on simplicity
and common sense rather than high technology, contrary to American perceptions. I was very
impressed. As I finished my fifth plate, I saw the same octopus sushi plate going around for
about the 30th time. Perhaps I had discovered the-pitfall of the system. So I asked the owner
how he takes care of the sanitary problems when a sushi plate goes around all day long, until
an unfortunate customer eats it and perhaps gets food poisoning. He bowed with an apologetic
smile and said, “well, sir, we never let our sushi plates go unsold longer than about 30 minutes .
Then he scratched his head."
The 100 Yen Sushi House chain remains as one of the most competitively priced outlets for
traditional Japanese fare. Today, the most basic plate is still ¥ 105 (*5 for taxes). The exchange
rate when Prof. Lee first described the 100 Yen Sushi House concept in 1983ª was around ¥
240 to USD1. At the end of 2010, the US dollar was worth about & 82.
Service blueprint for the 100 Yen Sushi House operations.
100 Yen Sushi House is located in the Shizuku area of Tokyo in Japan. At the 100 Yen Sushi
House, thirty stools surround a square bar with a conveyor belt that rotates plates of sushi.
Expensive dishes have smaller quantities, but every plate is 100 yen. Four sushi chefs work
inside the bar to produce each 100 yen plate of sushi. Owning a cash register is optional for this
establishment, a patron's bill can be merely determined by counting the number of empty plates
they have.
Customers do not have to wait for food because sushi chefs prepare the food within sight. Sushi
is fresh and not refrigerated for future use. The sushi itself is treated as an assembly line
product with each chef adding their own unique touches. The sushi chefs are in close proximity
to each other so they share equipment and their tasks also are highly interrelated. When there
is a problem, employees attempt to prevent it from spreading to other processes. The owner of
100 Yen Sushi House analyzes demand, and orders several fresh fish deliveries a day. He
understands that quality is proactive. The owner also has confidence that his employees take
the initiative to dispose of uneaten Sushi that has been out for a while, to protect the quality of
the food. Quality is a top priority for all employees, clear communication, and the sharing of
duties is also very important. The 100 Yen Sushi House produces and loads the same mix of
sushi plates on its conveyor belt each day. The chefs make no more or no less than what is
needed. At 100 Yen Sushi House, eliminating tables, waiters, ordering, variable pricing, and the
wait time associated with receiving food, increase profits for its owner, and reduces idle time for
busy customers. Service Blueprint 100 Yen Sushi House Operation

1. What features of the 100 Yen Sushi house service delivery system differentiate it from the
competition, and what competitive advantage do they offer?

Features: They have an ellipsoid shaped serving area in the middle of the room where inside
three or four cooks were preparing sushi. They have a conveyor belt going around the ellipsoid
service area like a train track with different plates of sushi. Each plate costs 100 yen. They don’t
have a cash register, the cashier just counts how many plates the customer ate and then
multiplies it by 100 yen.

Advantages: Well for starters the owner’s daily operation is based on carefully analyzed
information. The owner has a complete summary of demand information about different types
of sushi plates, and this he knows exactly how many of each type of sushi plate he should
prepare and when. It’s a family owned restaurant that runs efficiently, all the workers are
considered family and they focus strongly on customer service. The store uses the just in time
inventory control system, they have an agreement with the fish vendors to deliver fresh fish
several times a day so their products arrive just in time to be used for sushi making. The owners
and workers are involved in the total operation from greeting the customer to serving what is
ordered. The 100 Yen sushi house is based on simplicity and common sense rather than high
technology.

2. How has the 100 Yen Sushi House incorporated the just- in-time system into its operation?
100 Yen sushi house is a small family owned business which is highly labor intensive. Very
firstly the just-in-time system has been used in the business by the correct estimation of the
demand of the products in the house which makes it easy for the owner to make the
arrangements as per the demand. Secondly, the whole operation is based on the repetitive
manufacturing principle accompanied by just-in –time (JIT) and a quality control system.
The application of JIT in the operation can be clearly evidenced by the limited number of
refrigerators in the limited space which shows that the inventory is almost negligible with a JIT
inventory control system. The JIT has been implemented in the system by entering into
agreement with the fish vendor to deliver fresh fish several times a day so that materials arrive
in a just-in –time way to be used for sushi making. In addition, in the sushi house the workers
and their equipment are placed in such a way that sushi making is passed hand to hand rather
than an independent operation. The absence of walls of inventory allows the owner and workers
to be involved in the total operation, from greeting the customer to serving what is ordered.
Their tasks are tightly interrelated and everyone rushes to a problem spot to prevent the
cascading effect of the problem throughout the work process.

3. Suggest other services that could adopt the 100 Yen Sushi House service delivery concepts.
The 100 Yen Sushi House service delivery concept is customer service, a contribution to
society, or the well-being of the community. There are many services that could adopt the Sushi
service concepts.
The 100 Yen Sushi house service deliveries can be adopted in other service areas which focus
on repetitive types of processes. For example, it can be applied in auto-manufacturing, fast-
food, household appliances etc. Likewise the same concept is also used by fast-food
restaurants as McDonald’s and Burger King where relatively few modules like cheese, lettuce,
buns, sauces, pickles, meat patties, and French fries make a variety of meals.
In Nepalese context, this delivery concept can be applied in the fast food chain companies like
Sumai’s Momos, KFC, Pizza Hut etc. Another one areas where 100 yen Sushi House service
delivery system can be adopted is Automated Car Wash Center, which could be the emerging
business in Nepal.

PHYSICAL
EVIDENCE
CUSTOMER
ACTION

Line of Interaction

ON STAGE
CONTACT

Line of Interaction

BACK
STAGE
CONTACT

Line of Interaction

Building

Sitting

Serving Area

Conveyer Belt

Food

Charge

Arrive to
Building

Go and Sit

Receive the
Utensils

Pick Up food

Exit

Checkout

----------------------------------------------------------

Greeting by
Workers

Chefs
Cooking

Cashier

-----------------------------------------------------------

Workers
Putting &
Taking
off food

----------------------------------------------------------Payment

SUPPORT
PROCESS

1. Prepare a service blueprint for the 100 Yen Sushi House operation.
2. What features of the 100 Yen Sushi House service delivery system differentiate it from
the competition, and what competitive advantages do they offer?
3. How has the 100 Yen Sushi House incorporated the just-in time system into its operation?
4. Suggest other services that could adopt the 100 Yen Sushi House service delivery
concepts.

GUIDELINES FOR PREPARING A CASE

No two cases are the same just as no two management situations in real life are the same.
Given that qualification, there are some "better" ways to go about examining an operations
management situation leading to informed and hopefully correct decisions whether they be for
class preparation or in a written report.

Consider these general steps and questions as you tackle a case.

WHO IS THE DECISION MAKER? What is this person's position, what is the decision
confronting them? From their perspective, what are their objectives or major concerns? When
writing up a case you write for this person(s) so know your audience!

SIZE UP THE ORGANIZATION. What product(s) do they make or services do they deliver?
What do their customers expect and competitors offer? What do you have to do well in their
industry? (Key Success Factors (KSF)) What is the company's competitive advantage if any?
How did it arrive at its current situation? (Some history is not worth repeating!) Is it financially
sound?
What kind of management is running the company? What is the nature of the process by which
products are made or services delivered? While it is always necessary to spend some time
sizing up the organization in preparing the case, it is not necessary to devote a large amount of
space for it in a written report. The decision maker(s) must be assumed to know what is written
in the case.

ANALYSIS - PUT THINGS IN PERSPECTIVE. What is the nature of the problem or opportunity
requiring a decision? What are the causes or sources? Sometimes you have to dig deeper into
all the verbiage of the case and find the real root cause or leverage point for management
action. How good or bad is the situation? How critical is it to the firm's short and long term
performance? What is your evidence? (This may be defined quantitatively and/or qualitatively)
What are the specific problem areas and what is their priority for management? Putting a
situation in perspective is similar to making an argument to motivate a decision maker to take
action. Therefore you may examine the impact of a problem or opportunity on the profitability of
a firm, or the severity of its quality and productivity problems on customer satisfaction.
Remember sometimes there is no real problem (i.e., there is an opportunity to seize an
advantage) or what is thought to be the obvious problem is not.

ALTERNATIVES. Since you know the situation and what is required of you for future action,
what are the alternatives for action? You may have to look at a number of alternatives for a
number of probable scenarios. Remember that alternatives can be defined by not only what
they involve but by when they are to be done (e.g., wait a year or do it now). It is very important
at this stage to define the criterion that will be used to select an alternative (e.g., ROI, employee
satisfaction)?
Prioritize your criterion (e.g., rank or weight them in importance). Your criteria and their priority
should be consistent with the firm's KSF and the requirements of the decision and MAKE A

DECISION AND ACTION PLAN. Pick an alternative and specify the who, when, where, why
and how to implement it. Show you know what it takes to implement your chosen alternative.