Answers to Questions on Product and Service Design

P7: Identify the main element factors affecting the look of products or service of given organization and possible benefit to be gained from good design

Factors Affecting Organizational Service Design

Following are the factor mostly affecting just how a business operates their services those are the following

Organization size

The smaller the organization the lesser potential for a formal structure of this organization will be. Instead of following in small organization the individuals may simply perform tasks the way they need and whatever must them. There could be rules set by the firm merely to provide guideline with the help of which members of organization can make decisions.

As a business develops, however, it becomes more difficult to manage the tasks without more formal structure of assigning tasks, or with delegating some of authorities to the lower hierarchy, and hence large businesses produce specialized tasks and every work is performed through proper guidelines and procedures.

Organization life cycle

Organizations have a tendency to proceed and get progress through different stages that happen to be called as a life cycle. Most organizations feel the following stages

Birth: With this stage, a firm is just beginning their business operations. At this stage the organizations hardly have a formal structure. We cannot find much delegation of authority initially stage of the firm.

Youth: This is actually the phase where firms try to grow the business. The focus of the firm in this stage is on becoming larger firm. Who owns the firm diverts its attention from satisfying his own wishes to satisfying wishes of the customers. In this phase there's a dependence on the firm to create more formal structure for operating their businesses plus some delegation of authority enter into effect.

Midlife: This is where the organization has achieved a good level of success. A larger organization in this stage, have a more formal structure. The levels start increasing in their chain of command and the business could find it to difficult to control everything with control.

Maturity: With this phase the organization reaches to maturity stage where their lack innovations and they're not usually interested in expanding their business. Their emphasis in this stage is more on increasing their profit and sustainability.

Organizations in this phase are slowly moving toward decline and may wish to make necessary changes to revitalize. As companies tend to get bigger, the organizations experience more structural changes

Strategy

Strategy identifies a situation in which the way firm settle itself in the market place keeping because their products. An organization should be always the first ever to introduce the latest and best products on the market (differentiation of products strategy), or it will produce already established products in the market more cost effectively (cost-leadership strategy). These strategies takes a structure that has to fit the strategy.

Environment

The environment is the place in which the firm is operating, and the factors such monetary conditions, social and cultural situation, law and order situation, technological position and natural environment condition influences the design of organizations

Organization understand the demands of the customers very well in a far more stable environment, and then firms try to fulfill those demands accordingly. That's the reason organization remains searching for a long period of time. The customers' demands keep changing in the contrary of stable environment and therefore firms experience difficulty in satisfying them.

In conclusion mechanistic organizational structure can become more good for those operating in a far more stable environment and hence this system escalates the efficiency degree of the organization which in the end will improve their performance in the longer run.

Technology

Advancement in technology is the cause of change in the design of organizations since it helps organization in reaching higher efficiency level and help them in reducing their permanent cost of production. The following are the proper execution of latest technological production techniques

Batch Production

Batch production is the procedure in which instead of manufacturing items individually, things are produced in batches. The manufacturing process takes place for every item at the same and batch of products or items are not shifted to some other stage individually instead all batches are moved to the other stage of production when the each batch of items is completed.

Mass Production

Mass production is the procedure of manufacturing massive amount products in less time by utilizing time saving assembly. It can help a manufacturer to increase their worker each hour production and it also reduces the manufacturer labor costs of the final product. And firms will be able to sell their products at lesser cost to attract more customers.

Continuous Process Production

In this technique the manufacturers produce products by feeding the mandatory raw materials constantly in a latest technological system. Such systems are operated by less labors, examples can be automated oil refineries and chemical factories.

Advantages of an excellent service or product designs:

Firms can attract more customers by making more attracting products with good design and good services.

Firms can better communicate with their customers through their good product or services designs.

A good design makes a firm's services or products more users friendly.

It reduces the production costs of a business and it permits them to gain better profit margin.

As it reduces the expenses of production so that it helps an organization to get competitive advantage over their rivals because they will be in a position to sell their products at cheap.

Its objects are that Tasks should achieve all required outputs and become carried out at minimum cost in order to get competitive advantage.

P8: Explain the operational layout of the business/ department under consideration. Discuss the salient features of the layout?

Operations Layout:

The basic layout associated with an operation is usually determined by the choice of process organization. "A competent layout is one which minimizes total distance traveled by materials, customers or even staff. The frequency of journey should also be considered"

Features of the Layout:

It allows higher utilization of space, materials and employees.

It improves the flow of materials, information, and employees.

It increase employees' motivation levels and provide harmless working conditions.

It boosts customers' interaction with the organization.

It brings versatility in the procedures of the business.

Operations Layout of Pizza Hut:

The layout of Pizza Hut is not that good inside our point of view because an efficient layout must minimize total distance covered by the materials and customers. The ware house of Pizza Hut from where they obtain the raw materials of Pizzas is in Lahore which is far away from Peshawar and it requires time to reach Peshawar branch.

The flow of information with their customers is very slow in a way that when a person call Pizza Hut toll free number for ordering Pizza, an operator sitting in Karachi takes their order who than later inform the Peshawar branch to deliver the pizza to a specific location. Usually it requires 50 mints to provide Pizzas which is bad. The parking space beyond your building is bound often than not customers face difficulties in finding space because of their cars.

The pollution coming out of their kitchen to the surroundings is limited but the pollution coming of the generators are not. Peshawar continues to be facing load shedding (Lack of electricity) consequently they get electricity for the dining hall and most importantly for running their machinery from huge generators which cause both noise and pollution.

The Pizza Hut Peshawar branch is located a long way away from the most crucial place (Hayatabad) where most their customers you live and delivering Pizza to them also takes enough time.

M3: How exactly does the procedures layout of the firm influence performance of given organization. Mention its positive and negative influence?

Operations Layout is all regarding the performance of any organization in cases like this Pizza Hut. A good layout will reduce their average total cost and can improve their health among customers and vice versa. Every organization needs to setup their operations so which can bring efficiency in their activities and help them in increasing their revenue and profits.

Positive influences on Pizza Hut:

If Pizza Hut reconsiders their Operations Layout and bring the mandatory changes in it, it can have the next positive influences on their performance

A good operations layout will certainly reduce enough time usually taken by their raw material to reach Peshawar branch in this manner they'll be able for satisfy customers demands promptly and they will not face material shortage due strikes, road blockage in other cities and hence their customers will be satisfied.

If they enhance their information system they will be able to receive customers order directly and they will have the ability to deliver Pizzas to their customers quickly than before this may bring efficiency in their activities and can improve their wellbeing among customers.

If they enhance their parking space more customers can park their cars at onetime and therefore more customers will visit Pizza Hut which finally can help them to get more earnings and profits.

If they may be some how able to control the pollution and noise than it probably will be looked at as more environment friendly organization and it'll help them in improving their health and it'll also help than to attract more customers and hence more revenue.

All these points discussed above is the layout of Pizza Hut and if indeed they able to improve their layout as discussed above it has positive influences on their performance.

Negative influences on Pizza Hut:

If they continue their current Operations layout than it can have the next negative influences on their performance

The raw materials will take longer than required to reach Peshawar branch and it add more to their costs because the transport cost is expensive because of the recent raise in petrol and diesel prices.

It can have negative influence on the delivery of Pizza with their customers since there is no direct operator line from Peshawar to the clients so that it takes longer than required in delivering pizzas because of this customers can switch to close by Pizza outlets to them like Arabian Chicks, Chief burger.

Limited airport parking space is the biggest constraint in attracting more customers therefore customers can have Pizzas from Chief Burger which has large parking area, in the end it influences their performances.

Lack of interaction between their customers and their employees can have adversely impacts on the performance of Pizza Hut because staff will be demotivated and customers will feel they are not important to Pizza Hut.

A bad layout will add more to the costs of production and influences the performance of Pizza Hut all together.

D3: Propose operation layout for the given organization and discuss how it'll be better for the business.

Before suggesting a competent operation construct, we would like to suggest certain points required to make an efficient Construct only then Pizza Hut Peshawar will in a position to implement our suggested Construct.

Requirements for making an excellent Layout:

They need to understand the need of capacity and space requirements

They need to select appropriate equipments for handling materials.

They need to take proper decisions regarding environment and its own improvement.

They need to recognize and understand certain requirements for effective flow of informations.

They need to identify the price of moving between the many different work areas.

Suggested Lay Out For Pizza Hut:

Pizza Hutt Peshawar must get a ware house on rent in Peshawar and especially in a location near to the Peshawar branch. In this way they'll be able to get recycleables in less time plus they can store the remaining material back the ware house. And they will have the ability to save much transport cost than before plus they may use that profit increasing their environment.

They need to introduce an operator system in Peshawar as well that can receive the orders from the people of Peshawar and who have sufficient understanding of the locations of Peshawar. In this way Pizza Hutt can receive orders quickly and then they can deliver Pizzas in less time, it also enhance their efficiency.

They need to increase their parking space by contracting with army stadium officials regarding allowing their customers to park their cars there in this way more customers will come and their cars will be more safer.

They need to regulate the pollution and noise appearing out of their generator by making another covered place because of their generator.

They need to open new outlet in either university road where there biggest competitor chief burger can be found or in Hayat abad where there prospective customers are living. This will help them in competing using their rivals and can also help them target their customers by either delivering them Pizzas in less time or by being easy to get at for those people.

They need to boost their front desk for communication with the customers and handling their kitchen functions as well as for easy communication with the supporting staff (waiters, manager) to provide better services and environment because of their customers.

P9: Discuss the concept of job design, empowerment, and work measurement?

Job Design:

Work arrangement intended to reduce or overcome job unhappiness and lack of interest of employee caused by boring and repetitive tasks. In job design, businesses try to maximize productivity levels by providing non financial awards with their labor force such as increasing the task and responsibility of some employees work. Other techniques used in Job design are Job enlargement, job enrichment, job rotation that can be thought as

Job Enlargement:

"Job design technique in which the volume of tasks attached with employment is increased (and provided a proper training) to include greater diversity to activities, thus reducing repetitiveness".

Job Enrichment:

In this organizations improve the variety of tasks executed by their employees as well as they increase their tasks to make their work more challenging and interesting.

Job Rotation:

"Job Rotation means employees are moved between two or more jobs in a designed way. The target is to make the employees to handle different encounters to increase job satisfaction. "

Empowerment:

Empowerment is a thought that involves delegating some authority to the procedure operators.

In empowerment every individual team member must throw into the business.

In empowerment the low most layers of management become unnecessary.

Empowerment give potential for greater responsiveness - lower employees don't need to acquire management consent to make some decision themselves. .

It assists with Continuous improvement of the organization as employees will feel motivated and they will work all together for the success of the business.

It helps organization to lessen the number of employee absenteeism.

It gives greater motivation and versatility to the employees.

Work Measurement:

"Work Measurement is a way which shows how enough time a job or part of the job needs to take to complete their tasks". There will vary techniques use to measure individual works.

Method Study:

Method study is dependant on the principle that improvement should always stem from existing practice. The proposed working methods are usually feasible. To ensure feasibility a five stage methodology is used

Select: The region of activity to be studied is selected.

Record: The activity is recorded at length to keep an example of task performance.

Examine: the record is carefully analyzed, usually through some type of chart. The objective is to search out areas of improvement. Improved procedures are developed out of analysis. These are then tested.

Install: Revised procedures are installed. Manuals are written, staff is trained, new plant is obtained and installed and workplace layout is revised.

Maintain: Problems can arise from changes. A presence is required to ensure that problems are dealt with promptly.

P-10: Analyze the marketplace of organization and choose a capacity planning for the organization (nature of demand & supply, volume & variety, planning & controlling)

Outcome 4

Demand & Supply

The manager, prior to develop any plans for the meals ordering, they observes the forecast of sales and expected upcoming events in the calendar. Based on the Manager, they can be inserting order twice per month (15th & 31st of each month). The unexpected orders can cause more demand of the product while the option of the ready to use product may be limited based on the expected demand for the shift. Therefore the variance in expected demand and actual demand can cause the shortage of the products and ultimately this may play around the one of the possible factors of the unhappy customer and can cause the variance in the productivity of the unit as total.

The demand may also greatly increase because of the good weather, special occasions like sports, rituals, festivals, and purchasing power. According to the Manager of the machine, the demand for the meals is high in the start of the month but that usually slow down in the end of the month because of the less availability of the funds with customers.

Planning & Controlling

The businesses at Pizza hut can not be highlighted for just about any of the single functional unit. Rather it is the collection of several group of the actions that happen with in the unit and make things possible by turning customer expectations in to the reality.

The success or the failure of the product depends on the performance of several functional units. Those functional units operate separately but connected with the other person through the work activities. The preparations is the procedure of getting things ready, that will help to transport the out the functions in store. This involves activities like defrosting of dough, starters and cheese. So that can be used for the next day operations.

If preparations for the next day procedures is not sufficient then that will cause difficulty or shortages of items that are necessary for the conversion process. The preparation is done on the basis of the next working day forecast. In the event the forecasted goods will never be made ready for the next day operations which will be virtually problematic for the very next day shift manager to carry out the business enterprise operations.

P-11: Identify different approaches of quality control employed by company.

Quality Control is a method of regular technical activities to measure as well as control the grade of the inventory as it has been developed so the Quality Control method is designed toward

Provide regular additionally consistent checks to guarantee data integrity, correctness along with fullness

Identify and concentrate on errors as well as omissions

Document and files inventory material and record all Quality Control activities.

In order to maintain the product quality up to the typical, that is very important to check out the set rules for the merchandise shelf life. Different ingredients found in the pizza making process, carry different shelf life.

The taste and the quality highly determine on the freshness of the ingredients, and the resultant the happiness of the clients. Based on the Manager of Pizza hut, 'If, there may be variance seen in the merchandise quality that will overall affect productivity and lastly the client satisfaction level which means this is not acceptable at all'. He added, 'if company is spending a huge amount of money on the product promotions and marketing activities that is made for the business. And also company provides the training to the employee to how to maintain the merchandise quality. So each and every person must have to ensure the quality of the merchandise and happy customer makes more return in the future'.

Total Quality Management (TQM)

This is the main element factor for a food chain like Pizza Hut. All the employees are at the back of the home i. e. the kitchen assistants are trained for that reason. They receive extra lessons to meet the quality standards set by Pizza Hut about the world. This strategy is essential in order to satisfy the CHAMPS (Cleanliness, Hospitality, Accuracy, Maintenance, Product, and Speed). This strategy is severely implemented in Pizza Hut to be able to execute the quality standards. Different quality management team is also there at Pizza Hut. The shift managers have the charge to monitor whether the quality standards are met or not while there are a total quality management department at the key office in Karachi. This department has the duty to implement quality standards and also to know if they are achieved or not.

Moreover there are personnel by name of CR Specialist (fully trained employee for quality control), they can be visiting Pizza Hut Peshawar once in a month, they just come inside the outlet as being a customer, and to begin with he/she observes everything like from entering into Pizza Hut until the end when he eventually ends up with Pizza. If he/she finds any drawback in virtually any of activity then he/she will complain to the top Office.

P-12: Discuss various approach to inventory planning. (Generally)

Inventory

Inventory in general refers to the materials in reserve. Additionally it is called the idle resource of a company. Inventories characterize those goods that are either stocked on the market or else they are really along the way of manufacturing otherwise they are really in the form of materials which are nevertheless to be used. The intermission between getting the purchased parts furthermore transforming them into final products vary from industry to industry depending upon the cycle time of manufacturer. Therefore it is necessary to hold inventories of different sorts to do something as a buffer between supply and demand for competent operation of the organization. Hence a very important control on inventory is essential for smooth and efficient procedure of the production cycle with slightest interruptions.

Inventory Control

Inventory control is a designed approach of deciding what things to order, when to order, how much to order and also how much to stock consequently that costs associated with buying and storing are finest without interrupting production and sales well inventory control basically handles two problems

When an order should is positioned? (Order level)

How much should be ordered? (Order quantity)

These questions are answered by the employ of inventory models. The systematic inventory control method strikes the sense of balance between your loss due to non-availability of something plus cost of carrying the stock of something. Systematic inventory control is aimed at maintaining best possible level of stock of goods required by the business enterprise at minimum cost to the business.

Objectives of Inventory Control

To make sure enough supply of products to customer in addition avoids shortages so far as achievable.

To ensure that the financial investment in inventories is smallest amount (i. e. to notice that the working capital is fruitless to the minimum possible degree).

Well-organized purchasing, storing, utilization and accounting for materials are an important goal.

To keep timely record of inventories of all items plus to keep the stock within the most well-liked limits.

To make sure timely action for refill.

To make available a reserve stock for variations in direct times of delivery of materials.

To present a scientific base for both short-term as well as long-term planning of materials.

Inventory Control Methods

ABC analysis: In this particular study the categorization of existing inventory is dependant on annual consumption furthermore the twelve-monthly value of the things. Thus we get the amount of inventory item consumed over summer and winter and multiply it by unit cost to get gross annual usage charge. The things are then occur the descending order of such annual usage cost. The analysis is carried out by drawing a graph based on the cumulative quantity of items and cumulative use of consumption cost

HML analysis: In such a study the categorization of existing inventory is based on unit price of the items. They are simply classified as high and medium price respectively and low priced items.

VED analysis: Within this study the categorization of existing inventory is based on criticality of the items. They are simply classified as vital, essential and desirable items as a result it is mainly used in spare parts inventory.

FSN analysis: In this particular study the categorization of existing inventory is based consumption of the items. They are really classified as fast paced, slow moving and non-moving items.

SDE analysis: In this particular study the categorization of existing inventory is dependant on the things.

GOLF analysis: In such a study the categorization of existing inventory is dependant on sources of the items. They are simply classified as Government supply, normally available, local accessibility and foreign way to obtain supply items.

SOS analysis: On this study the categorization of existing inventory is dependant on nature of supply of items. They may be classified like seasonal and off-seasonal items.

For effective inventory control, combination of the techniques of ABC with VED or ABC with HML or VED with HML analysis is practically used.

M-4: Explain the inventory planning of given organization (stock control method inventory control, cost & benefit inventory control, supply chain management).

Stock Control Method Inventory Control

The manager, prior to develop any plans for the food ordering, they observes the forecast of sales and expected upcoming events in the calendar. According to the Manager, they may be putting order twice a month (15th & 31st of each month) well they are using two different freezers for carrying out their raw material. According to the Manager, he stated that they are using two types of freezers an example may be cold freezer and another one is dry freezer and temperature for both of these set accordingly.

Cost & Benefit Inventory Control

The cost of sales and the sales income will be the actual things that support the managers to run the business on the right track. In the event the numbers seems moving away from the track they want be highlighted and called as variance. The variance is the difference between the Actual cost and Theoretical Cost.

Head office set forecast and provide targets to the business stores. The targets are set by using previous year business performance and the expected events. That is called as theoretical cost. On the other hand the price occurred in the business dates is the actual cost. So when there is any difference occurs that'll be treating as variance.

The cost of sales of the store for the current period shows the variance of 36. 38

The theoretical cost set by management was RS/-297407. 7 and in percentage 22. 46% where as the actual cost for the time occurred was RS/302346 in percentage 22. 83%. The results indicate the variance remained RS/4911. 3.

The variance in costing is the actual indicator of the performance. Higher the variance depicts higher the concerns persist with available unit. In present case in hand, these depicted variance treated to be normal. The business operations cannot focus on the absolute set tracks because the forecasted things can not happen on the absolute behaviors as predicted.

Supply Chain drivers of Pizza Hut

"Supply chain management is the factor that differentiates the winners and the losers in this business, " drivers play an important role in conditions of the responsiveness and efficiency. We should examine the cross-functional and logistical drivers of supply chain performance: transportation, sourcing and pizza and logistics.

Transportation

To deliver the base from the commissioners to different outlets the utilization the refrigerated trucks in which the base is kept and there is a control of temperature which they set based on the distance between your commissionaire and the outlets. You will find 70 trucks to supply the base across Pakistan. There is also a vacant space where extra base is kept to fill the demand of a specific store. The company won't acquire any extra transportation costs as long as the counters are over the highway or the truck's way. In this manner they use their transportation and keep maintaining their efficiency.

Sourcing

The Pepporine mozzarella cheese is imported from Australia and Spain respectively so it will take time an increased the price also so they have to manage but on the other hand to compensate the increased cost they keep up with the local supply chain to reduce the cost like vegetables, wheat, tomatoes are imported from Pakistan so they provide the top notch facility and taste may importing its main ingredient from spain and Australia but other ingredients from local vendors.

Pizza and logistics

It is incorrect to summarize that successively a pizza chain is easy by looking its front-end businesses compared to the complexities involved in organizing a supply chain the promise of pizza delivery within thirty minutes if not offering it free is a child's play for pizza chains. "Supply chain management is the factor that differentiates the winners and losers in this business".

The major imports for Pizza are cheese and olive oil. Pizza imported potatoes land at ports in Karachi or the Karachi airport. The consignment is then transported to other parts of the country while cheese is imported from New Zealand and chicken or bread is sourced locally.

The inputs sourced from different places are supplied to the commissaries in reefers/refrigerated trucks for process as well as production of base material. The pizza dough and also other items prepared in commissaries is then delivered to the retail outlets again in reefers. "Based on the distance between the retail outlets and the commissaries, the temperature inside the trucks is fixed in order to set the dough to a required level when it reaches the outlets. According to manager shops have to exhaust the processed dough within three days of delivery. However, due to some reason if they fail to achieve this, the entire quantity is discarded. The prevailing commissaries and the reefers will be placed to optimum use as Domino's Karachi is now opening counters in Pakistan State Oil Corporation's petrol bunks. The company will not acquire any additional transportation costs so long as the counters will be the highway or the truck's way.

Responsiveness and Efficiency

As we have seen that pizza hut open their outlet in bulk in a specific city so they are responsive enough and they provide delivery within thirty minutes or offering it free is also to increase their responsiveness it is difficult to keep up such kind of responsiveness because it will incur extra margin and the profit percentage will decrease that's the main reason they open their outlet in bulk of course, if a specific customer order a pizza where pizza store is unavailable that store immediately call the nearest pizza corner to deliver that one order to be responsiveness of course, if a specific product is unavailable they use to do transfer in and transfer out where they take the product from different outlet.

Supply chain diagram of Pizza Hut:

re is unavailable that store ditional transportation costs so long as the counters are the highway or the truck'toes

Pepsi Company and Cremica bakes

Sauces

Filling

Vegetables

Meat market

Dough

Topping

Ware houses

Bakes

Delivery service

Customer (pizza hut)

D-4: Evaluate and propose the very best quality control technique for the given organization and clarify why quality control is important for the business.

Flow Chart

Purpose: Visual illustration of the sequence of procedures necessary to complete a task

Define and analyze processes;

Build a step-by-step picture of the procedure for analysis, discussion, or communication;

Define, standardize or find areas for improvement in an activity;

It is starting place for process improvement.

Most flow charts are made of three main types of symbol

Elongated circles, which signify the beginning or end of an activity;

Rectangles, which show instructions or actions;

Diamonds, which show decisions that, must be made

It is a visual representation of process showing the various steps which helps in seeking the points at which a problem exists or else an improvement can be done. Comprehensive data can be collected, analyzed furthermore methods for correction can be developed. Classify them as an operation or a choice. Criteria and Consequences that opt for conclusion are amenable to analysis for purposes of assessing quality. The flow chart assists with pin-pointing the exact at which errors have crept in.

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