Case 3: Products and Process

Part A

Your local fast food burger joint would like to graphically show the full sales interaction between the 3 employees and the customers. Customers come into the restaurant, order and sit inside for their meal Using these process descriptions below, develop an operations process chart. Include the customer

Counter person

-Take order from customer 30 secs -Pass on order to either fry or grill employee 10 secs -Process payment transaction 30 secs -Prepare required drinks 60 secs -Package order 20 secs -Hand over order to customer 10 secs

Fry Person:

-Receive order from counter person 10 secs -Retrieve uncooked food 20 secs -Drop food into fryer 10 secs -Wrap cooked food 10 secs -Place wrapped food on service counter 10 secs

Grill Person:

-Receive order from counter person 10 secs -Retrieve uncooked food 20 secs -Place food on grill 10 secs -Build burger with requested toppings 20 secs -Wrap cooked food 10 secs -Place wrapped food on service counter 10 secs

Part B

Using the timing data above and the provided data below, determine:

1. Daily costs of just running this fast food establishment 2. Cost of processing each order a. Each order consists of 1 burger, 1 order fries and 1 drink 3. Given 300 orders per day a. What is the price you would charge to break even

Item Cost Unit

Operating costs (hydro, heat, maintenance) $200.00 Per day

Wages for each employee $15.00 Per hour

Buns $0.15 Per bun

Meat $0.50 Per order

Fries $0.10 Per order

Drinks $0.05 Per order

Hours required

1. Each employee requires 1 hour for setup at start of each shift and 1 hour to close up after closing time

2. The restaurant is open for business from 12:00 noon until 8:00 pm

Additional data:

1. Cook time for Fries is 2 mins

2. Cook time for burger is 4 mins

Part C:

Using CI techniques, make recommendations on improving flow through of process or lowering fixed costs.