Olivia's Burger Palace Job Shop Layout Problem

Olivias Burger Palace Job Shop Layoutpom4winexcel Case Problemoliv

Olivia’s Burger Palace is located at the corner of 22nd Street and 3rd Avenue. The Palace, as it is known, is open for business 16 hours per day; from 10 a.m. to 2 a.m. the next day. The layout of the restaurant and the 10 primary 6 foot by 6 foot work areas are shown below. The restroom and the sink & trash areas are not considered primary work areas. 22nd Street Drive - thru Main Entrance Entrance and Exit Sidewalk Inside Dining Area Each of the blocks below is 6 feet by 6 feet Counter Rest F C1 C2 Room Area 1 Area 2 Area 3 Sink & G S C3 Trash Area 4 Area 5 Area 6 B A R W Area 7 Area 8 Area 9 Area rd Ave. P A R K I N G Drive-thru pick-up window Menu Board.

Defined below are the 10 primary work areas that are in the Palace, as shown in the diagram above. F Fryer, C1 Cashier 1, C2 Cashier 2, G Grill and Toast, S Storage (non-refrigerated), C3 Drive-thru pick-up cashier, B Beverage Dispenser, A Assemble and Wrap, R Refrigerator, W Warmer. Walk-in customers place their orders with either of Cashiers 1 or 2 who enter the information into the order computer and collect payment. They then assemble and bag the order and give it to the customer. A drive-thru order is placed when a car pulls up to the menu board and talks by an intercom connection to the Drive-thru pick-up cashier (C3) in Area 6 who enters the order into the order computer.

The C3 person then assembles and bags the order and collects payment from the drive-through customer when he/she pulls forward and around the corner to the pick-up window. Olivia knows she made some mistakes in organizing the layout of the Palace which has created some inefficiencies in worker movement within the confined workspace behind the counter. She has noticed that workers are continually getting into each other’s way, especially during the busiest times of the day, slowing down the overall operation. Olivia read in QSR Magazine (Quick Service and Fast Casual Restaurant News, October 2010): “Speed of service is in direct correlation to retail sales,’ according to John Scadapane of Philadelphia-based Saladworks. ‘While I might wait an extra two minutes this time, next time I’m in a hurry, I might go someplace else,’ says Isidore Kharasch, President of Hospitality Works, Inc., an operational foodservice consulting and training firm. ‘The lifeblood of any restaurant is the return customer.’

One strategy for increasing speed of service is to evaluate the daily operational procedures and to measure the number of steps it takes to deliver food to the customers. Often the bottlenecks in service are due to the restaurant’s overall design and set-up. ‘Many operations I have consulted with made all their mistakes in the design phase,’ Kharsch says. ‘They did not think through every step an employee has to make to get food out. Unfortunately, it would be too expensive to change the restaurant layout now. However, Olivia has hired a consultant to collect some data that she can use to lay out the new Burger Palace II she is planning for another location. The consultant took some random sample counts on the number of worker-trips made between each work area during a typical day’s operation. She then extrapolated the sample counts out to represent a full day (16 hours) of operations.

This data is shown below in a From-to Matrix (Flow Table), where the numbers are worker-trips per day. Flow Table From/To Matrix: [Note: The actual flow data is not included here but should be a part of your analysis.]

In assembling and bagging a customer order, the cashiers are trained to first go to the warmer to pick up the burgers, then to the fryer to get the fries, then to the beverage dispenser to get the drinks, and finally back to their cashier area to give the bagged order to the customer. This normal procedure explains the largest numbers in the matrix. Sometimes this sequence is not strictly followed, especially when the Palace gets busy. Other times a customer may not want all three items. The total number of trips by workers to and from sink & trash and restroom each day is insignificant and not included in the analysis.

Your tasks are as follows:

• a. (15 points) Create a distance matrix in Excel assuming distances between areas are measured rectilinearly. Include the distance matrix in your report. Copy and paste the flow matrix and distance matrix into POM4WIN.
• b. (15 points) Use POM4WIN to find the total number of feet all workers move during a day with the current layout. State this total in your report.
• c. (20 points) Use POM4WIN with C1, C2, and C3 fixed in their current locations to optimize the new layout for Burger Palace II. Create a layout drawing showing each work area’s location. How many total feet per day will all workers move with this new layout?
• d. (10 points) Assuming all other factors remaining equal, estimate the percent increase in sales revenue with the new Palace II over the old Palace based on expected improvements in efficiency and speed of service.
• e. (10 points) Write a short paragraph explaining where and why improvements have occurred in the new layout.
• f. (30 points) Use POM4WIN to layout the new Palace II with no fixed work area locations. How many total feet will workers move per day? What is the percentage increase in sales revenue compared to the layout in part c? Discuss why Olivia might not implement this layout.

Your report should include a title page, complete answers to parts a-f, POM4WIN printouts for the baseline and optimized layouts, and a conclusion on layout implementation considerations.