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?Café Pizza CornerINTRODUCTIONLocated in Kunnamangalam and Wayanad Road, Cafe Pizza Corner in Kozhikode is amongst the top picks of the locals to satiate cravings for mouth-watering pizzas. This restaurant specializes in serving a range of cheesy pizzas made with the goodness of hand-picked toppings. The locals have developed a liking for its pocket-friendly and mouth-watering pizzas. The pizzas are generously sprinkled with a variety of toppings that make it a sheer delight to eat. This eatery’s menu also includes sides like salads, burgers and sandwiches.  The extensive list is as follows: Presence in IndiaThis pizzeria occupies a favorable location at Bhavani Building on the Wayanad Road which works to its advantage in attracting a substantial number of footfalls day in and day out. Its patron base that usually comprises of school students, college goers, working professionals and the residents. Cafe Pizza Corner is also located in Kunnamangalam. It offers outdoor as well as indoor seating arrangements, which guests can choose as per their comfort. Though this dining venue is a compact setup with limited space for seating its dine-in guests, this restaurant also offers take away and speedy doorstep delivery services too.  The staff are attentive and prompt at service, ensuring customers are served well. It is also a popular hangout for hosting birthday parties for kids. The operating hours of 11:00 – 23:00 make it convenient for customers to satiate their cravings for pizzas late into the night as well. Customers can pay with Cash, Visa Card, Debit Cards, Credit Card, Master Card.The outlets can be contacted at: +(91)-495-3222783,2803960Home Delivery Minimum order: Rs. 350Delivery: 40-45 mins. Price Range: 500-1000Official Website: http://www.cafepizzacorner.com/ Ratings:  VISION AND MISSIONA corporate vision and mission are a set of long-range goals and may include statements about:  The mission of the outlets remains to impress every customer served through a comprehensive range of sumptuous and high quality Italian cuisine in an environment of comfort and fun. Pizzas offered have a wide variety to offer that includes hand tossed crust, Italian crust, deep pan and Sicilian, among several more. In addition to just the pizzas served, the outlet also serves appetizers such as pastas, salads, cakes and drinks at its dine-Ins, delivery and express counters. The Pizza Corner aims to maintain ‘a holistic customer driven’. BUSINESS STRATEGYBusiness strategy is a long-range game plan of an organization and provides a road map of how to achieve the corporate vision and mission. As a part of GFA’s forthcoming strategy, while Pizza Corner will largely grow through corporate stores, the franchising business model will continue. The company is also tweaking the strategy with owning at least 45% of stores as against 25% of owned stores. The investments will be prominently used to expand in South IndiaCOMPETITIVE PRIORITIES Low CostCompared to copetitors such as Dominos, Pizza Hut and other Italian restaurants it provides higher quality services at a lower cost. Quality Product and Services Caters to local taste  Process quality They provide delicious and hot pizzas of excellent quality and variety. Delivery PerformanceThe fast, on-time delivery and delivery reliability ? FlexibilityThey respond to customers dynamic needs by providing variety in terms of volume but not product development InnovationThey have a lot of variation in the flavors offered catering to the local tastes Technology for Healthy AlternativeThey do not fry any food but use baking alternatives for promoting healthy food.OPERATING STRATEGY1. Use one baking oven that works the entire time2. Vegetables are purchased every 2 days3. The dough is outsourced and so, prepared well in advance. This frozen dough is thawed in accordance with the orders received.4. Average volume of sales is 30 pizzas a day.5. Staffing of the outlet includes 3 cooks 3 delivery staff. Multiplicity of tasks are undertaken by each of the 6 staff members to reduce cost. 6. The pizzeria offers a seating capacity of 30 people.7. IIM Kozhikode forms the major chunk of its customer base. Tus, its location which is 300 m from the main gate of the campus is ideal. OPERATIONS SYSTEM The Operations System of any outlet goes through the following processes with the below explained stages: Fig. 1 – Operations SystemThe division of factors according to the operation system at Pizza Corner, Kunnamanglam is as follows:INPUTS: Primary Resources:5M: Man (Bakers, Servers, Receptionist, Kitchen staff, delivery staff etc.) Money (Purchase of raw materials, maintenance, Salaries etc.) Material (Bread, Meat, Pastas, Dough, Vegetables, Sauces etc.) Methods (Toppings, Baking, Slapping, Delivery etc.) Machine (Computers, PLCs, Ovens, Cutlery, and Refrigerators etc.) External Resources:Technological: Inventory tools, Real time tracking, online training etc.Legal: State laws, franchise laws, governmental ban etc.Social: Demographics, Social norms etc.Economic: Economy of scale, Income level etc. Market:Customer desire: Preference for local cuisines is high.Competition: Strong competition from Dominos, 5StarChicken, DowntownOUTPUTS: Direct:Products: Pizzas, Pastas, Sandwiches, BurgersServices: Dine-in, Carry-out, Home Delivery Indirect:Wastes: Wasted dough, Wasted Vegetables & Meat, Electricity wastagePollution: Contribution to carbon emission through excessive electricity use, Excess vegetables account for pollutionCONVERSION PROCESS: Manufacturing: Physical conversion of raw materials to pizza, pastas etc. Transportation: Process involves locational movement of materials. Warehousing: Storage services are employed to maintain desired inventory Physiological: During conversion, proper care is taken to keep veg and non-veg separate Informational: Direct communication regarding order to customer via display screenThe Pizza Corner serves as a restaurant to the general public and hence lies at CORE SERVICES on the Goods-Service Continuum. The core of the operations is the serving of customer with their food choices in a stipulated time and also provide with home delivery service.  .Pizza Corner is the only restaurant serving pizzas in Kunnamangalam. The nearest completion is atleast 10 kms away in Kozhikode. Owing to this it has a strategic advantage it can utilize. Along with this IIM Kozhikode situated within a 2 kms radius is an added advantage. Most of its customers would be the students of the campus and since this target market is from a diverse background it needs to devise its strategies around this. STRATEGIC RECOMMENDATIONS a) Targeting the students it should bring in exotic flavours while keeping       the local flavours for its local clientele  b) Provide healthy choices c) Introduction of extra oven to reduce impact of breakdown and      delivery timeTACTICAL RECOMMENDATIONS a) Using the waiters for waiting on tables and as delivery people b) Incentivizing dine in to increase footfall c) Adding specials like pasta’s and sandwiches not found locallyOPERATIONAL RECOMMENDATIONS a) In house advertisement to have seasonal flavour b) Have back up in place for unforeseen emergenciesCOMPETENCIES The core competencies of Pizza Corner are Quality of Pizza, Indian Flavours and Other Healthy sides (Burgers, Salads, Sandwiches, Wedges etc.). Capitalizing on these it has been able to maintain a healthy market share of the food market in Kunnamangalam. Its monthly sales revenue averages close to 6 lakhs. Since it has a monopoly currently it can further consolidate its market share by offering extra options for its in house customers. It could diversify into providing fresh juices and different desserts. It has focused on its core competencies and has successfully outsourced the preparation of dough. It also uses the same company for production of garlic bread and only garnishes it. It ensures that the quality of these outsourced products is high. It has been able to add different flavours since it is a local restaurant and not a big brand franchise thus providing more variety for its customers.Service Design The eatery serves a large variety of products apart from the pizzas. Most of these products are baked. A service design is required to incorporate the variation in demand for all the diverse products and also to have the demand fulfilled in time. It has considered the following aspects: 1) Standardization of Service: Service for all customers is the same except that it differs on the basis of if it is in house or delivery. For dine-in staff is trained to be polite, friendly and attentive but give privacy. They are also trained to make the meal memorable for the customers. For delivery the staff are trained to be polite and friendly. 2) Customer Interaction: For Dine-in there is a lot of customer contact. The focus is on creating a strong bond with the customers for continual association. The staff are trained in the soft skill aspects. While there is minimal contact with customer when delivering the staff is trained to greet, be polite and thank the customer. 3) Service Fit:  All the products added to the menu are such that the production is similar. Most of the products in the menu are baked. 4) Operational Fit: Any new products added to the menu are done considering the availability and the competencies of the suppliers. 5) Financial Fit:  Any new product added should not require additional equipment for its production.PREPARATION PROCESS Factors effecting ProductionVolume: Moderate demand of the pizzas and side products justify the modern machines and trained staffFlexibility: Though the preparation process is highly standardized the variety of toppings (mix and match) based on customer demand adds the requirement of flexibilityVariation in Demand: There is high demand for products during lunch and dinner time. Rest of the time the demand is very low.PROCESS SELECTION The Volume and Variety demand at Café Pizza Corner is as follows: Volume – The moderate demand limited to a small town Kunnamangalam justifies modern kitchens and trained staff. Thus the volume demand is moderate. Variety – Although Pizzas are standardized, Café Pizza corner provides the flexibility to the customer to choose their choice of toppings. Hence, Pizzas are customized. This requires a high variety in the pizzas served. Time variation in demand – The volume of orders received peaks during the lunch and dinner hours. Alternately, there are also times in a day especially afternoon when the demand is very low. The demand on weekends is usually high. Based on the volume and variety requirements, Café Pizza Corner follows the Job Shop approach for Process Structure.The characteristics of Job Shop are: Volume – Low Variety – High Flexibility of equipment – General Purpose equipment Skill Set of Workers – High Level of technology – Low Capital Expenditure – Low Planning and scheduling – Medium levelWith respect to Café Pizza Corner, the volume of pizzas demanded is moderate and the variety is high. The production process needs to be flexible in order to cater to the customer needs. The pizzas and other items like pasta, appetizers, etc need to have a high degree of consistency. Hence Café Pizza Corner follows a Job Shop approach to meet the customized needs.PRODUCTION PROCESS FLOWThe Production process followed at Café Pizza Corner is as follows:TaskNumber Task Description Task Time1 Customer enters Café Pizza Corner. A representative greets the customer 30 sec2 The representative escorts the customer to an empty table and makes them seated 30 sec3 Time taken by the customer to place his/her order 3 min4 Water is served to the customer 3 min5 Serve salad if ordered 5 min6 Serve Garlic Bread after Salad if it is ordered 5 min7 Serve soup if ordered 7 min8 Appetizers like mock tails are served if ordered 9 min9 Pasta is served if ordered 12 min10 Pizzas ordered follow up the pasta 15 min11 Follow up order for dessert or any other item is taken by Café Pizza Corner representative 5 min12 Any desserts ordered by the customer are served to them immediately after they finish with their previous order. 5-7 min13 The bill is presented to the customer 3 min14 The balance amount is settled with the customer, after which he is escorted to the door by the Pizza Corner representative. 5 min PRODUCTSThe following table displays the different varieties of pizzas currently offered by Pizza Corner, Kunnamangalam. Their main product is pizza only apart from beverages such as soft drinks. It is to be noted that further there are options of 3 different kinds of toppings in each product being offered.Description SizeVegetarian Small SmallVegetarian Regular RegularVegetarian Large LargeNon-Vegetarian Small SmallNon-Vegetarian Regular RegularNon-Vegetarian Large LargePROCESS OF PREPARATIONThere are lot of different tasks which are performed in the preparation of pizza at Pizza Corner. The below infographic displays the different tasks which must be performed in the specified order, right from order taking to serving. The following list explains each of the process in detail.   PRE-PROCESSESHowever, there are few processes which are completed before the actual pizza preparation is done. They are done before any order is received. These processes are known as Pre-Processes. Pizza Corner basically had 4 pre-processes which are as follows: Freezing of Doughs Thawing of Doughs Chopping of Fresh vegetables and meat Setting up of the oven PROCESSS TASK TIMES AND ITS PRECEDENCEThe following table lists the precedence relationships between tasks and the average time required to perform each task.S.No. Task Predecessor Small Regular Large1 Setting up the Oven – 20 Mins 2 Freezing – – 3 Thawing Freezing 24 hours 4 Receiving Order None 3 minutes 5 Order Punching Receiving Order 20 seconds 6 Generating KOT Order Punching 10 seconds 7 Retrieving Thawed Dough Generating KOT 15 seconds 8 Slapping Retrieving Thawed Dough 30s 45s 60s9 Slicing and Bottom Cheesing Slapping 10s 20s 25s10 Itemizing Slicing and Bottom Cheesing 40s 1 min 10 s 1 min 30 s11 Baking Itemizing 6 min 30 s 7 min 7 min 30 s12 Cutting Baking 10s 15s 20s13 Serving Cutting 1 min 1 min 1 minANALYSIS OF THE LAYOUT PLAN ADOPTED BY PIZZA CORNERThe operations of Pizza Corner are as such that it demands a Product Layout. The service and capacity of Pizza Corner suit the typical features of a product layout. Let’s have a look at the characteristics of operations run at Pizza Corner.Operations Characteristics ValueDegree of variability of products Narrow (Pizza Corner prepares only 6 types of pizzas)Production time for a single unit Short (Throughput time is of just 15 minutes)Planning, Scheduling and inventory management Personnel are employed by the organization itselfSize of in-process inventory Low to moderately high, according to size of demandThe above-mentioned operation characteristics clearly point towards the features of a product layout.Cycle timeThe cycle time of any operation in a steady state is determined by the task time of the slowest step in the process. If we have a look at the Pizza Corner, we will notice that the dough baking stage is the slowest. The process, in fact, requires different lengths of time depending on size of pizza being prepared. The following table sheds more light on thee cycle time for preparation of different kinds of pizzas.Pizza Size Bottleneck Stage Cycle TimeS Baking 6.5 minutesR Baking 7 minutesL Baking 7.5 minutesThroughput timeThe total time taken to produce the first product is called the Throughput Time. We can see, from the table above, that different kinds of pizzas take different length of time. As a result, we arrive at the following throughput times for the different kinds of pizzas, through our primary research.Pizza Size Throughput TimeS 9 minutes 48 secondsR 11 minutes 18 secondsL 12 minutes 33 secondsCapacity of operationsThe maximum capacity of production per unit of time in any operation undertaken is equal to the maximum number of products that can be produced. Dividing the unit time by cycle time of the process gives us this measure. However, we have just seen that each process needs a different cycle time depending on size of the pizza and hence, we have the following values of capacity.Pizza Size Cycle Time Capacity (In One Hour)S 6 mins 30 secs 9.23R 7 mins 8.57L 7 mins 30 secs 8.00Unbalanced line and duplication of capacitySince there is a bottleneck at the baking stage of all kinds of pizzas, the production line of Pizza Corner is unbalanced. A solution to address this problem is for Pizza Corner to augment its maximum capacity through duplication of capacity. This can be done through installation of an additional oven alongside the first one.However, the suggestion can also have negative repercussions for Pizza Corner as there will be huge costs involved in this process. Add to this the fact that Pizza Corner experiences rush hour phenomenon for only a short period of time, and most often it operates below its maximum capacity. Therefore, duplication of capacity may not be the best way to go forward.Our primary research revealed that Pizza Corner does operate a contingency baking oven, which is smaller than the primary baking oven. Any incidence of the primary oven failing can be managed by the secondary oven and thus, losses can be avoided.EFFICIENCY OF OPERATIONSThe efficiency of an operation with product layout is defined as:Effciency (%)=(Sum_of_all_task_times)/(Number of workstations×Cycle Time)×100Using this formula, we arrive at the efficiency of the product layout followed for different sizes of pizzas.Pizza Size Cycle Time Workstations Through Put Time Efficiency (%)S 6 mins 30 secs 10 09 mins 48 secs 15%R 7 mins 10 11 mins 18 secs 16.14%L 7 mins 30 secs 10 12 mins 33 secs 16.73%Therefore, the equipment efficiency for the operation model adopted by Pizza Corner ranges from 15% to 16%. This is a quite low figure and it indicates towards the high costs of operations of a Fast Serving Restaurant (FSR). In comparison to industry standards, the figures ae not quite low, however.Source of Data : Process Flow Chart and Standard Operating Procedures Documents as disclosed by Pizza Corner.CAPACITY PLANNINGCapacity planning is the process of determining the production capacity needed by an organization to meet fluctuating demands. Capacity can be defined in terms of the amount of output that a system/process is capable of achieving in a given time. Capacity decisions have huge cost implications and also affect the revenue of a company. It is important to understand the consumer demand patterns to design the capacity of operations so as to be able to design capacity in tandem with demand.Capacity planning aims to answer the following questions: What type of capacity is needed? How much capacity is needed? When is the capacity needed?Capacity planning can be classified into 3 categories: Long Term Capacity planning (eg. Adding more plants or machines) Medium Term Capacity planning (eg. Hiring additional employees, firing employees, subcontracting, outsourcing, etc.) Short Term Capacity planning (eg. Employee Overtime)Important terms in Capacity Planning: Design Capacity: Maximum output rate that a facility is designed for Effective Capacity: Design Capacity reduced for allowances for maintenance, setup, breaks, etc. Actual Output: Rate of Output actually achieved by the facility in course of operations depending on actual performance of all resources Efficiency = Actual Output / Effective capacity Utilization = Actual Output / Designed CapacityCapacity Calculations for Pizza CornerThe capacity for Pizza Corner can be defined by two parameters: Seating Capacity Production CapacitySeating CapacityThe Pizza corner outlet in Kunnamangalam has a total of 5 tables which can handle a total capacity of 25 customers at any given point. Seating capacity is lower than an average pizza parlour in a metro city, however taking into account the low levels of demand in the area due to different food preferences the capacity seems adequate. Also, majority of the revenue comes from delivery (specially to the IIM Kozhikode campus) and hence seating capacity is sufficient. The manager’s experience said the outlet hardly ever saw all 25 seats taken at the same time.Capacity Calculations Number of tables = 5 Average time a table is occupied by a customer = 50 minutes Operating hours = 11 hours Designed Capacity = 5 * 10 / (50/60)= 60 per day Time for setup and cleaning = 2hrs Effective Capacity = 5 * 8 / (50/60)= 48 per day Average no. of tables actually occupied throughout the day = 7Efficiency 7/60 = 11.67%Utilisation 7/73 = 9.6%Capacity is being heavily underutilized. This however can be attribute to the fact that our calculations do not take into consideration deliveries at all, this is just capacity utilization of the tables in the outlet.This can also be attributed to the location of the outlet, where majority of the population barring the IIMK community does not identify with pizza as their choice of food preference.Production Capacity:Baking time in the oven is the bottleneck in the process. The oven is a double stack oven, with a conveyor belt on both the levels. The speed of the conveyor belt is fixed; however, the temperature is adjustable. At maximum, 3-4 pizzas can be placed at once on the belt. The time required to cook depends on the size of the pizza, with a larger pizza requiring two rounds through the oven.By historical experience, the manager told us that they have barely ever had such high demand that they had to use both the stacks of the ovenFor calculating production capacity, we will take the average cycle time for a pizza, which would be equal to the average time required to bake a pizza. We are restricting the calculations only to the baking timeCapacity Calculation: Average cycle time = 6.5 mins (average of regular, medium and large – 4.5, 7, 8) Hours of operations = 11 hours No of levels of oven = 2 Designed capacity = 660/6.5*2= 203 pizzas Break hours for employees = 2.5 hours Time for cleaning/maintenance = 2 hour Effective Capacity = 780/6.5= 120 pizzas Actual Output (as given by manager) = 40 pizzasUtilization ~20%Efficiency 33.33%Capacity Flexibility:The outlet can very well accommodate much higher levels of demand due to the lower levels of utilization and efficiency. The store has high flexibility in terms of both production and seating capacities.CONCLUSION:Despite the low demand, the store has been able to achieve desired sales revenue by optimizing operations. By outsourcing operations such as dough preparation and freezing, they have reduced their costs while not compromising on quality. By employing a product structure, the store has been able to achieve the desired flexibility and reduce uncertainty of their production operations. The capacity though underutilized is still well-suited for the current business model. All the processes have been standardized and have been listed down in order to achieve maximum adherence to the prescribed time limits, quality management and service quality. The store functions with minimum workforce to achieve maximum utilization and also utilizes the concepts of job enrichment to make sure that every employee understands every process and can act as a replacement for each other if required, like the chef also sometimes delivering the pizza.REFERENCES http://www.franchisebusiness.in/c/Pizza-Corner-India-P http://www.business-standard.com/article/companies/pizza-corner-owner-plans-india-expansion-113060400399_1.html http://www.coronetpublications.net/tag/continuum-powerpoint-template https://www.studyblue.com/notes/note/n/chapter-5-manufacturing-and-service-process-structures/deck/12745672 http://www.ukessays.com/mba/operations/process-flow-structures.php  http://www.netmba.com/operations/process/structure/ http://www.cafepizzacorner.com Global Franchise Architects website Synergia One Group of Companies website https://www.justdial.com/Kozhikode/Cafe-Pizza-Corner-Near-IIMK-Campus-Kunnamangalam/0495PX495-X495-111219113338-N5K9_BZDET