Mgmt 6090 Operations Management Capstone Project Group Class

Mgmt 6090 Operations Management Capstone Projectgroup Class Presentati

Develop a comprehensive analysis and presentation plan based on the Mongolian Grill case. Review the case details including operational challenges, customer flow times, and proposed design modifications. Define the core problems faced by Mongolian Grill, evaluate existing and new alternatives to improve customer throughput and satisfaction, and recommend feasible solutions. Incorporate operational research methods, layout designs, cost analyses, and strategic considerations to support your recommendations. Prepare a clear, organized presentation within a 10-minute timeframe emphasizing visual aids, flow of information, and professional delivery apparent to restaurant owners.

Paper For Above instruction

The Mongolian Grill case presents a compelling study of operations management within the restaurant industry, highlighting the challenges of balancing capacity, customer service speed, and profitability amid competitive and evolving customer preferences. In this analysis, we systematically address the core problem faced by the business, explore operational alternatives, and provide a data-driven, strategic recommendation for optimizing restaurant capacity and customer throughput while maintaining service quality and customer satisfaction.

The fundamental issue confronting Mongolian Grill’s management, especially at the Waterloo location, concerns managing customer waiting times during peak hours. With the restaurant's unique interactive dining concept, customer flow and operational efficiency directly impact profitability. The London restaurant’s observation, where wait times exceeded 7 minutes during busy periods, underscores the importance of process optimization. Similarly, at the Waterloo site, capacity constraints threaten to turn away potential customers, negatively affecting revenue and competitive positioning.

To systematically analyze the operational challenges and opportunities, the first step involves defining the problem: How can the restaurant increase customer capacity and reduce wait times without compromising food quality or the customer experience? Second, several alternatives are considered. These include expanding seating capacity, adding a second food preparation station, and relocating or upgrading the cooking grill. Each alternative addresses capacity constraints from different angles—either by increasing physical space, operational throughput, or both.

The baseline operational data indicates that, at full capacity, the average customer spends about 90 minutes per meal, primarily due to wait times at food stations and in-line food preparation. This time significantly limits the number of customers served during peak hours, capping revenue potential. The case data shows that reducing each customer’s in-restaurant time by 15 minutes could allow for an additional customer group per table per evening, directly translating into increased revenue.

Evaluating the alternatives begins by quantifying their impacts. Adding a second food preparation station involves significant fixed costs—$6,400 for the food bar and $4,200 for the sauce station—plus ongoing labor costs of approximately $16 per hour for an extra worker. Operationally, this setup is projected to save about 90 seconds at the food bar and 80 seconds at the spice and sauce station, mainly by reducing queuing and decision time. The main concern revolves around customer confusion or bottlenecks caused by the dual stations, which could negate the benefits if not carefully managed.

Relocating the cooking grill to a more central position is another promising solution. It promises an 80-second reduction per trip at this station, effectively decreasing waiting times and increasing throughput. The combined cost of construction and additional staffing—two cooks at $24 per hour each for a 5-hour shift—amounts to approximately $370, along with $1,200 for the new counter space. Operationally, this move streamlines the flow and reduces fatigue among cooks, potentially improving food quality and customer experience.

To compare these options objectively, a payback period analysis and capacity simulation are conducted. For each alternative, the expected increase in customer turnover across the peak period is calculated, considering the savings in trip times and additional capacity. For example, if each trip’s total time reduces from approximately 7 minutes to about 6 minutes, and customers make three trips per meal, total time decreases from around 21 minutes to 18 minutes, allowing a larger number of groups to be served within the same timeframe.

The recommended approach combines relocating the grill and adding the second food station, maximizing capacity expansion and efficiency. The layout changes will enable the restaurant to process more customers per hour, direct more space towards high-performing stations, and create a clearer flow that minimizes decision confusion. Visual layouts illustrating the current versus proposed floor plans reveal that the new design maintains customer engagement, reduces congestion, and enhances operational flow.

Financial analysis indicates that the combined investment of roughly $12,200 (including construction and labor) is justified by the expected increase in revenue, estimated at approximately 10-15% due to higher capacity and reduced wait times. Moreover, improved customer satisfaction and lower turnover times could boost reviews and repeat business, further solidifying the restaurant's market position in the growing Waterloo area.

In conclusion, the optimal solution for the Waterloo Mongolian Grill involves a strategic layout upgrade combining the relocation of the grill and the addition of a second food preparation station. This integrated approach yields the greatest increase in throughput, reduces customer wait times, and enhances the dining experience—all critical factors for sustaining competitive advantage. Implementing these changes efficiently, supported by visual plans and proper staff training, will position the restaurant for long-term success in the competitive dining market.

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