October 22, 2007

Operations Management Lesson 2 Exercise

Operations Management Lesson 2 Exercise


For the second blog I’ve chosen to talk about the difference between the “Pizzeria/take away” and “Pizzeria/Restaurant”, pointing out the following items:

VOLUME – VARIETY – PROCESS CHOISE

PIZZERIA/TAKE AWAY

VOLUME

High repetition: every day several quantities of pizza are prepared and took out of the oven; high repetition about the prepared flavors of pizza; high number of output produced in terms of Kilos of Pizza per day

Capital Need: specialized ovens for mass production and high costs of energy

Specialization: capabilities in managing the peak times, knowledge of what quantity / kind of pizzas (and flavors) to be produced relating to specific time of the day / week/ month.

PIZZERIA/RESTAURANT

VOLUME

Low repetition: smaller quantity of pizza produced comparing to the “Pizza take away” (low # of output produced in terms of Kilos of Pizza per day). Less typology of pizza flavors.

Capital Needs: generally, wood-burning oven (most diffused in this kind of Pizzerias) is an asset which did not bring high maintenance costs; the row material (wood) is less expensive compared to the energy of the traditional oven and it generates and keeps higher level heat.

High unit cost: comparing to “Pizza take away”, unit cost is higher because the cost of ingredients to be used is higher in terms of quantity bought.

PIZZERIA/TAKE AWAY

VARIETY

Flexibility: Flexibility means to be responsiveness to customer requests in short time and in preparing any kind of pizza flavors in each moment as per customer choice. That requires raw materials and variety always to be available.

Complexity: in a “Pizzeria/take away” you can choose any kind of pizzas, from the easiest and lightest one to the more “sophisticated” with particular ingredients (or more genuine ingredients) or particular kind of flours.

PIZZERIA/ RESTAURANT

VARIETY

Routine / Standard: as Pizza is not the sole business you could not find the same choice than in the “Pizzeria/take away”.

Complexity: Low, because of fewer flavors.

PIZZERIA/TAKE AWAY

PROCESS CHOISE

Batch processes: pizzas are baked simultaneously or sequentially in a high number of quantities; frequently, more than one oven is present in order to have the counter full of products to sell.

PIZZERIA/ RESTAURANT

PROCESS CHOISE

Mass services: high output but variety is controlled because of many raw material could not remain for long time unused.


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