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Olivia’s Burger Palace - Job Shop Layout

POM4WIN/Excel Case Problem

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 10

3rd

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

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. However the total number of times a cashier, or any other worker, leaves his/her work area is the same as the total number of times he/she returns to their work area. The smaller numbers in the matrix represent movement by other workers “in the back” who are responsible for preparing the food. The number of trips by workers to and from the sink & trash and restroom each day is insignificant and therefore, not included in the analysis.

a.(15) Create a distance matrix in Excel as shown below. Assume distances between areas, in feet, are measured rectilinearly. Include the distance matrix in this part of your report.

Copy the distance matrix and paste it into POM4WIN.

Copy and paste the Flow Matrix into POM4WIN. This document is available on Brightspace for copying.

b.(15) Use POPM4WIN to find the total number of feet all workers combined move during a day’s operation with the current, baseline layout. State the total in this part of your report.

Olivia’s new Burger Palace II will also be open 16 hours per day, and it will be the same size as the old Palace; however, she would like the layout of the 10 work areas to be more efficient; that is, she wants her workers to spend more time actually working and serving customers, and less time moving around between work areas and interfering with other workers. The only layout restriction for the new Palace II is that the cashiers (C1, C2 and C3) must remain in the same locations as in the old Palace (Areas 2, 3 and 6). The other seven work areas can be located anywhere. The sink & trash area and the restroom must also be located the same as in the old Palace, but again, the number of trips by workers to these two areas is insignificant and not relevant.

c.(20) Use POM4WIN with C1, C2 and C3 fixed in their current locations to layout the new Palace II. Assume the same movement between work areas as with the old Palace.

Create a new layout drawing of the restaurant similar to below showing where each work area will be located.

How many total feet per day will all workers combined, move with the new layout?

d.(10) All other things equal, what percent increase in sales revenue would you expect with the new Palace II over the old Palace? Why?

e.(10) Write a short paragraph explaining why and where in the new layout the improvement has occurred.

f.(30) Use POM4WIN to layout the new Palace II if no work areas are to be fixed in any specific location.

How many total feet per day will all workers combined, move with this new layout?

How much increase in sales revenue in percent, can be realized compared to the layout in part c?

Create a new layout drawing of the restaurant similar to below showing where each work area would be located.

In spite of any savings, explain why Olivia could not or would not implement this layout.

Your report should have, in order:

Title page

The answers to parts a - f

POM4WIN printout for the baseline and the two optimized layouts

Report is due