my compliments to the chef, er, buyer papaya milk: jason, jimmy, nick, rachel, richard, sandy...
TRANSCRIPT
![Page 1: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/1.jpg)
“My Compliments to the Chef, er, Buyer“
Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy
Operations Management Prof. Ying Jiun Hsieh
![Page 2: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/2.jpg)
Outline1. Case Introduction2. Question Discussion3. Conclusion4. Questions and Answers
![Page 3: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/3.jpg)
Case Introduction• How they are able to serve everything on that menu
quickly• Flash-frozen and vacuum-packed• Top- quality restaurants like Fuddruckers and Perkins are
going the outsourcing route• Taglines such as “Hours versus ours” and “Just heat and
serve”
![Page 4: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/4.jpg)
What can be outsourced?• Delivery of ingredients• Preparation of the food• Food arrangement• Others:
– Accounting and payroll services– Kitchen cleaning– Laundry– Advertisement and marketing– IT (website maintenance)
![Page 5: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/5.jpg)
Question DiscussionQuestion 1Explain the meaning of the phrase “Hours versus ours.“
![Page 6: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/6.jpg)
“Hours versus ours“• Consumer-goods companies such as Sara Lee,
Land O´Lakes used slogans as advertisement– “Hours versus ours“, “Just heat and serve“
• Stimulate B2B-relationships with restaurants– timely serving capability of restaurant businesses
can be increased
• Encourage restaurants to outsource business operations
![Page 7: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/7.jpg)
Outsourcing vs. In-House• Capacity planning to identify requirements
“Hours“: Outsourcing to save time, increase profit
“Ours“: In-House solution to control quality
![Page 8: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/8.jpg)
Example Outsourcing vs In-House
Receive meat, bread, toppings,
sauces
Toast bread, grill meat/cheese
Assembly Burger (meat, bread), toppings choosen by
cutstomer
Self- Service
• Fast casual restaurant - Fuddruckers
Preparation meat, bread, toppings, sauces Toast bread, grill meat/cheese
Assembly Burger (bread, meat cheese, toppings) Service
In-House Burger
Outsourced Burger
Time
![Page 9: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/9.jpg)
Question DiscussionQuestion 2What advantages are there when restaurants outsource?
![Page 10: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/10.jpg)
Advantages of outsourcing in restaurant• Improve efficiency
– Save time to prepare or manufacture materials
• Cost saving– Labor cost– Operating cost
• Improve productivity• Expertise
– Avoid time consuming of training employee
• Demand– Wide fluctuation in demand
![Page 11: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/11.jpg)
Question DiscussionQuestion 3What are some important disadvantages or limitations of outsourcing for restaurants?
![Page 12: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/12.jpg)
Disadvantages of outsourcing in restaurant• Quality consideration
– How to monitor the quality of the food material
• Risks– Loss direct control of operation– Delay in delivery– Quality defects– Taste (loss of freshness)
Damage to the organization’s reputation Losses customer’s reliability
![Page 13: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/13.jpg)
Question DiscussionQuestion 4Do you consider restaurant outsourcing to be dishonest? Unethical? Explain.
![Page 14: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/14.jpg)
In our opinion• We focus on restaurant -can provided food faster -capability-price-ratio -feature -health* If the restaurant can suit our demand we consider it is ethical
![Page 15: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/15.jpg)
Restaurant outsourcing 1. Advantage -reduce product cost (low price) -increase business efficiency (faster) -focus on core product (feature)2. Heath (safety of the food )
![Page 16: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/16.jpg)
Question DiscussionQuestion 5Does restaurant outsourcing increase capacity? Explain.
![Page 17: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/17.jpg)
Measures of capacity1.Restaurant capacity = inputs / outputs -Inputs = number of tables , seating capacity -Outputs = number of meals served per hour2.Outsourced part of cooking process can increase output measures
Shorter lead time Increased number of meals served per hour
![Page 18: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/18.jpg)
Take macro viewIt’s important to consider how parts of system related. - if the restaurant have high productivity because of outsourcing,but don’t have enough inputs to serve customers is not good.
ex: to add more tables and seats
![Page 19: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/19.jpg)
ConclusionControl 100% of your core, outsource
everything else. Don’t open a restaurant if no one can cook!
Customer review:“Unfortunately everything we ordered was from a frozen box and then deep fried. At least it was all served hot (from the deep fryer) except the burger which was the Costco style claw burger on a stale bun. Everything unimaginatively warmed up, ...just heat and serve. Even the burger condiments seemed tired!”
![Page 20: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/20.jpg)
Questions and Answers
![Page 21: My Compliments to the Chef, er, Buyer Papaya Milk: Jason, Jimmy, Nick, Rachel, Richard, Sandy Operations Management Prof. Ying Jiun Hsieh](https://reader035.vdocuments.net/reader035/viewer/2022081416/5518a6c0550346a61f8b4ac9/html5/thumbnails/21.jpg)
References• Operations Management by William J. Stevenson (11th
Edition).
• http://www.tripadvisor.ca/ShowUserReviews-g2086961-d3846663-r152832353-Sandy_s_Family_Restaurant-Mildmay_Bruce_County_Ontario.html
• http://www.makingthingsoutofnothing.com/post/42502126421/control-100-of-your-core-outsource-everything-else