DEPARTMENT OF MECHANICAL ENGINEERING

Sixty seven years of professional excellence

 18ME810 - PROJECT
SECOND REVIEW

TITLE: A comparative study on performance of multiple restaurants in a group

TEAM MEMBERS : GUIDE: Dr. S. KARTHIKEYAN

20G001 – AADHITHYAN E
20G082 – RAJARAJAN P REVIEWERS:

Dr. S. KARTHIKEYAN
Dr. ML. MAHADEVAN
Dr. R. MANIARASU
ENGINEERING PRINCIPLES APPLIED:

● Data Analysis and Modeling

● System design
● Quantitative Analysis
The Key Performance Indicators to look into while evaluating the performance of a
restaurant:

1) Revenue Generated
2) Customer Satisfaction
3) Labour Efficiency

These KPI’s are obtained after consulting with the owner of ‘Suriya restaurant’ which is
a restaurant chain in Chennai.
Revenue Generated:
Total sales or revenue generated by the restaurant over a specific period. Here in the group
restaurants all the prices of the items are the same so which restaurant has the most sales is most likely
to generate most revenue in the group.

Customer Satisfaction:
Measured through surveys, feedback, or online reviews, it reflects the quality of service and
dining experience. Here the customer satisfaction is measured in the areas of food quality, food taste,
waiting time and availability of parking. All these parameters are set in a survey or feedback form and is
given to the customer to obtain the customer satisfaction index.

Labour Efficiency:
This KPI can be calculated by assessing the ratio of the number of customers served to the
total number of cooks and servers employed. A higher ratio indicates better utilization of labor
resources.
For the mentioned key performance indicators the following datas have been
recorded from the respective restaurants .

1) The number of customers arriving per day and the daily sales are not accurate
data but are approximated with the help of the restaurant supervisors.
Branch No. of No. of No. of Customers Daily CSI
Name: Cooks servers arrived per day Sales
West Veli Street 14 9 225 60000

BB Kulam 16 11 325 80000

Uthangudi 17 12 300 70000

MGR Bus Stand 18 14 375 100000

Theppakulam 15 11 325 75000

Pandi Kovil 14 10 275 60000

Thirumangalam 9 6 130 40000

 To find the waiting time of the customer (lead time) a time study was conducted in the order of 8 trails per
restaurant.
Branch Trail 1 Trail 2 Trail 3 Trail 4 Trail 5 Trail 6 Trail 7 Trail 8

West Veli Street 582 578 431 398 541 596 531 451

BB Kulam 474 618 683 734 662 588 640 693

Uthangudi 582 632 762 829 756 659 590 763

MGR Bus Stand 630 778 913 753 723 724 660 578

Theppakulam 596 669 705 752 797 739 893 580

Pandi Kovil 857 706 712 408 713 477 453 647

Thirumangalam 512 606 697 584 579 614 544 433

*all units are in seconds

Branch Mean Lead Variance Standard
Time (s) Deviation

West Veli Street 513.5 5225.4 72.3

BB Kulam 586.5 8152.5 90.3
Uthangudi 694.125 7159.83 84.62
MGR Bus Stand 744.875 9903.23 99.5
Theppakulam 722.5 9749.75 98.73
Pandi Kovil 620.375 21833.4 147.76
Thirumangalam 571.75 5317.18 72.91
METHODOLOGY:
DATA ENVELOPEMENT ANALYSIS:
Data envelopment analysis (DEA) is a nonparametric method in operations research and economics for the estimation of
production frontiers

DEA is used to empirically measure productive efficiency of decision-making units (DMUs). Although DEA has a strong link to
production theory in economics, the method is also used for benchmarking in operations management

The methodology of data envelopment analysis, initially is a mathematical programming technique used to evaluate the relative
efficiency of homogeneous units. This efficiency evaluation derives from analysing empirical observations obtained from
decision-making units (DMUs), a term coined by Charnes et al. (1978)to define productive units which are characterized by c
ommon multiple outputs and common designated inputs. DEA can be used to measure the efficiency of each similar firm or
decision-making unit (DMU), and it is a powerful tool to determine whether DMUs perform efficiently or inefficiently on the
efficiency performance

Every decision-making unit (DMU) ismeasured relative to all other DMUs. A compositeunit (hypothetical best practice unit) is
composed of asubset of efficient DMUs. The efficient DMUs definea production frontier that envelops the observed dataof
inefficient DMU’s. The DMU being measured willbe judged inefficient if the hypothetical compositeunit requires fewer inputs to
obtain the same output. Aunit will be judged efficient if it requires the sameamount of inputs to produce an output as
thecomposite unit. Distance from the frontier determineshow inefficient an individual DMU is. InefficientDMUs can become
efficient by increasing outputs ordecreasing inputs in a fashion that causes them toresemble their efficient reference set.
ENVIRONMENTAL CONSIDERATIONS:

● Energy efficiency
● Waste Management
SOCIAL IMPACTS:

● Customer experience
● Employment Opportunities
REFERENCES:
THANK YOU!

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