Evaluating Performance:

Now, when our plan gets into action, we assume that after a month of performance, we hold a meeting to identify which process failures are most prevalent and find out the cause.

Step No.1: Check list

In the first step, a check list of different types of process failures is constructed from last months production records. S.No 1 2 DEFECT TYPE Cold platter Fewer customers

3 4

Mismanagement of sitting area Late service

TALLY llll llll llll llll llll llll llll llll llll llll llll llll llll llll llll llll llll

TOTAL 4 44

8 12 68

Step No.2: Pereto chart

PARETO CHART
50 45

40 35

NO. OF DEFECTS

30 25
20 15 10

44/68=65% of the problems is caused by 1/4=25% defects

5 0 Fewer customers Mismanagement of sitting area Late service Cold platter

TYPES OF DEFECTS

Step No.3:
A Cause and Effect diagram is drawn to identify the various possible causes for the problem: Menu Employee

Training Variety Co-ordination Taste Slow service Presentation

Busy customers Utensils

Ventilation Cleanliness Inappropriate sitting arrangement

Fewer customer s

Others

Environment

Step No.4: Bar Chart:

BAR CHART
70
AV. NO. OF CUSTOMERS

60 50 40 30 20 10 0

Morning shift

Afternoon shift SHIFT

Night shift

Redesigning the process:

After the process is documented, metrics are collected, and disconnects are identified, the next step is to determine what changes should be made. Hence, after a thorough analysis of the above problem and its causes, the management will decide to implement the following actions:

Employees will be better trained, so that they can coordinate well amongst each other, and efficiently deliver the orders on time. It will be made sure, that the dining area should be clean and proper ventilation would be installed, along with spacious sitting arrangement, to make it comfortable for the customers to eat.

The presentation of the dishes will be improved and better utensils will be used to aid in doing so. A home and office delivery service will be started to facilitate our busy customers.

Learning Curve:
Learning curves recognize that people become more productive over time due to learning. Each time an individual performs a task, it takes less time than the last time he/she performed the same task. Arithmetic approach Uses relationship: T2N = L * TN Useful only if values doubled Logarithmic analysis Uses relationship: TN = T1 N log L / log 2 N = Unit of interest; T1 = Time for unit 1 Can find time for any value of N Learning curve coefficients approach

 Uses relationship: TN = T1C (from Table)

We assume that, for our restaurant, the learning factor shall be 88%. So if the first customers servicing takes 45 minutes, then we can compute the time for the 4th, 6th, 10th or any customer, by using the following formula:

TN = T1 N log L / log 2 T4 = 45. 4 log .88 / log 2 T4 = 34.848 mins Similarly, for the 6th time; TN = T1 N log L / log 2 T6 = 45. 6 log .88 / log 2 T6 =32.33 mnins Similarly for the 10th time, TN = T1 N log L / log 2 T10 = 45. 10 log .88 / log 2 T10 =29.42 mins.
We can also find out the average time taken for the servicing time for 10 customers, by the following formula:

TN = T1C T10 =45.7.116 T10 =320.22/10 T10 =32.022min per customer service.

88% learning curve

50

45
average time (hours)
40 35 30

25
20 15 10

5
0

6
Cumulative Quantity

10

12

Strategic Capacity Planning Capacity is the upper limit or ceiling on the load that an operating unit can handle. Capacity also includes Equipment Space Employee skills

Design capacity maximum output rate or service capacity an operation, process, or facility is designed for

Design capacity is the maximum theoretical output of a system

Effective capacity Design capacity minus allowances such as personal time, maintenance, and scrap

Actual output rate of output actually achieved--cannot exceed effective capacity.

For our restaurant, we assume that: Design capacity = 55 dishes/day Effective capacity = 45 dishes/day Actual output = 41 dishes/day

Therefore, Efficiency= 41/45 =91.11% And, Utilization= 41/55 = 74.54%

Now,if we decide to increase our utilization, such that the capacity cushion should become 5%, then; 100% - actual capacity Design capacity Therefore actual capacity= 55*.95 = 52.25 or 52 dishes per day, should be our target. =5%