$203099/$mod$\_$resource$/$content$/0/$Case$\%206\_$Penn$\%20$n$\%20$Pats$\%20$Pretty$\%20$Hot$\%20$Pizza$\%20$Pronto.pdf

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CASE STUDY

Penn & Pat's Pretty Hot Pizza Pronto

ou and your roommate are preparing to start Penn & Pat's Pretty Hot Pizra Pronto delivery service in your apartment. The company will provide fresh, hot plza with a short lead time to the other residents in your very large apartment complex. However, before you start, you need to conduct some preliminary analysis of the plzza$-$making process and determine your costs $($and your profitl$)$ and your capacity.

Business Concept

Your idea is to bake fresh pizzas to order and allow the customers to determine the toppings from a list of more than $15$ different items; you will offer pizzas only in a "large" size to simplify the ordering and making process. The pizzas will be available for delivery only to other apartments In your very large building. You belleve that this is a good market because the closest competitor is five miles away, making it very difficult for the people in your building to get a hot pizea delivered in a timely fashion. Your strategy is to

make the pizzas to order and have them at the cus. tomer's door within $10$ minutes of their coming out of the oven, ensuring a product that is much hotter and delivered more quickly than your competitor can deliver. In addition, both you and your roommate have worked in pizza places, so you feel you have the necessary piza$-$making skills and know$-$how to be successful.

The Production Process

Making pizza is a relatively simple process: premade dough is flattened out, the customer$-$designated ingredients are put onto the flattened dough, the raw pizza is carefully loaded into the oven to ensure that it cooks evenly, the pizza cooks, it is taken out and quickly sliced and boxed, and finally the piza is delivered to the customer's door. You already own the necessary capital equipment of an oven, three pizza trays, and enough containers to store all the offered ingredients. However, your countertop and oven are

trative purposes. For example, the time needed to preheat the oven, to prepare or slice the various ingredients and put them into containers, and to clean up are not included in this analysis.

KEY QUESTIONS TO ANSWER BEFORE LAUNCHING THE BUSINESS

Before launching Penn and Pat's Pretty Hot Pizza Pronto, you need to set prices and determine your capacity. Also, because night classes are pretty common, there will be some times when only one of you is able to work

Questions

Draw a flowchart for the process of making pizza for the company showing the estimated time to accomplish each activity in the process.

What is the shortest amount of time for a customer to receive a pizza if there are no other products in the queue?

How many orders could you start and deliver in one hour if only one of you is working? What is your bottleneck?

How many orders could you start and deliver in one hour if both of you are working? What is your bottleneck now?

How much time would you need $($beyond one hour$)$ to make and deliver one more pizza if only one of you is working? If both of you are