Analyze Copper Kettle Catering Case

• What are some key differences between an automobile manufacturing (e.g., Toyota) and catering service (e.g., Copper Kettle) in terms of the following?
  • Nature of inventory (raw material, WIP, and finished goods)
  • Lead time (from raw material to finished goods)
  • Layout of equipment, pattern of material flow and worker movements
• In what specific ways would you recommend the Williams apply the following Lean techniques in their operation?
  • Small batch sizes
  • Setup time reduction
  • Pull production
  • Group technology
• What major barriers can you foresee in implementing Lean techniques in their operation?

area of the organization are studied and integraleu. Anu Copper Kettle Catering menu items because of the limited inventory space. CASE multiple orders. The deliver-only orders are scheduled day to day we the week. This level of demand allows a certain efficiency in the prepara Copper Kettle Catering (CKC) is a full-service catering company that provides short-order lead times. CKC sometimes runs out of ingredients to Venees services ranging from box lunches for picnics or luncheon meetings to large wedding, dinner, or office parties. Established as a lunch delivery service for Wayne and Janet have 10 full-time employees: two cooks and enthus offices in 1972 by Wayne and Janet Williams, CKC has grown to be one of the largest catering businesses in Raleigh, North Carolina. The company divides In periods of high demand, they hire additional part-time servers. The Watts preparation workers, who also work as servers for the deliver-and-sensei customer demand into two categories: deliver only and deliver and serve. of cook is specialized and requires a high degree of training and skil. The The deliver-only side of the business delivers boxed meals consisting of a sandwich, salad, dessert, and fruit. The menu for this service is limited to six of the employees are flexible and move between tasks as needed. sandwich selections, three salads or potato chips, and a brownie or fruit bar. The business environment for catering is competitive. The comis Grapes and an orange slice are included with every meal, and iced tea can be priorities are high-quality food, delivery reliability, flexibility, and cost-ata ordered to accompany the meals. The overall level of demand for this service order. "The quality of the food and its preparation is paramount, states Maps throughout the year is fairly constant, although the mix of menu items delivered Williams. "Caterers with poor-quality food will not stay in business long. Oz varies. The planning horizon for this segment of the business is short: Custom- is measured by both freshness and taste. Delivery reliability encompasses to ers usually call no more than a day ahead of time. CKC requires customers to on-time delivery and the time required to respond to customer orders water call deliver-only orders in by 10:00 A.M. to guarantee delivery the same day. the order lead time). Flexibility focuses on both the range of catering return The deliver-and-serve side of the business focuses on catering large par- ties, dinners, and weddings. The extensive range of menu items includes a full that a company can satisfy and menu variety. Recently, CKC began to notice that customers are demanding wore nel selection of hors d'oeuvres, entres, beverages, and special-request items. The flexibility and faster response times. Small specialty caterers who entered to demand for these services is much more seasonal, with heavier demands occur- ring in the late spring-early summer for weddings and the late fall-early winter market are targeting specific well-defined market segments. One examples for holiday parties. However, this segment also has a longer planning horizon. a small caterer called Lunches-R-Us, which located a facility in the middle ea Customers book dates and choose menu items weeks or months ahead of time. large office complex to serve the lunch trade and competes with CKC on one CKC's food preparation facilities support both operations. The physical Wayne and Janet Williams are impressed by the lean systems concert facilities layout resembles that of a job process. Five major work areas consist especially the ideas related to increasing flexibility, reducing lead times, at of a stove-oven area for hot food preparation, a cold area for salad prepara- lowering costs. They sound like what CKC needs to remain competitive. Hour tion, an hors d'oeuvre preparation area, a sandwich preparation area, and ever, the Williamses wonder whether lean concepts and practices are trarsta an assembly area where deliver-only orders are boxed and deliver-and-serve able to a service business. orders are assembled and trayed. Three walk-in coolers store foods requiring refrigeration, and a large pantry houses nonperishable goods. Space limitations QUESTIONS and the risk of spoilage limit the amount of raw materials and prepared food items that can be carried in inventory at any one time. CKC purchases desserts 1. Are the operations of Copper Kettle Catering conducive to the application from outside vendors. Some deliver the desserts to CKC; others require CKC to of lean concepts and practices? Explain. send someone to pick up desserts at their facilities. 2. What, if any, are the major barriers to implementing a lean system a The scheduling of orders is a two-stage process. Each Monday, Wayne Copper Kettle Catering? and Janet develop the schedule of deliver-and-serve orders to be processed 3. What would you recommend that Wayne and Janet Williams do te tase each day. CKC typically has multiple deliver-and-serve orders to fill each day of advantage of lean concepts in operating CKC? Source: This case was prepared by Dr. Brooke Saladin, Wake Forest University, as a basis for classroom discussion. Copyright Brooke Saladin. Reprinted by permission. ICS Scanned with Camisering is a basis for