Swift Even Flow Theory & Productivity: A Case Study of Paramount Diner

Operations Management & Swift Even Flow Theory Assignment Sample

Introduction to an essay on Swift Even Flow Theory Case Study at Paramount Diner

This essay particularly put emphasis on the Swift Even Flow Theory and its impact on the productivity performance of the case given that is of Paramount Diner. The following discussion will be focused on the principles of production variability. To determine labor productivity the theory of microeconomics is used. At last, the theory is used to justify the manager’s implications on the company and hoe does his productivity growth gets affected.

1. ESSAY ON THE THEORY OF SWIFT EVEN FLOW

Assessing the importance of managing flow and productivity

The Theory of Swift, Even Flow attempts to solve the issue of variations in factory productivity. As per the research, a process is more effective when works faster and more uniformly resources are distributed across it (Sari, and Giantari, 2020). Therefore, the efficiency of any procedure, whether it be worker, equipment, supply or the productivity of all factors, increases along with the rate at which resources flow through the process. Further, it decreases along with the incline in process's fluctuations, whether the variation is related to the procedure's customer demand or to measures in the procedure's own growth.

Just two elements and two variables are required to achieve the notion of quick, equal flow, regardless of whether productivity is rated. The first and most important step is minimizing variance. Quantity, quality, and time-related variation fall under the three main types of variation. In other words, the goal is to decrease mistakes and produce optimum quality first, then equalize the diversity of products made and the amount produced of each product to guarantee that every production day seems to be the same, and third, produce according to a regular basis or order (Shankar, et. al, 2022). The second crucial factor is determining how long it must take to create from start to finish and reducing it as much as the organization can. Swift, even flow encourages people to acquire an understanding of what's moving throughout an operation by focusing on the transit of components across a process. Paramount Diner may reduce the variation in processing time for those commodities, which will eliminate the non-value-added elements of production that are wherever the costs and inefficiencies are.

The following theoretical ideas must first be understood in order to fully understand this theory:

The essential concepts are work with and without value addition. Any activity might, in theory, be categorized as providing value in either direction. While labour that transfers resources, catalogues them, verifies them, counts them, or fixes them is not regarded as value-added labour, it is when it transforms raw materials into superior-quality goods. According to (Shishir et al. 2021), non-value addition is anything that makes a process create waste. With this knowledge, consumables may go through a method at Paramount Diner more quickly if non-value-added, inefficient procedures are eliminated or significantly reduced.

Like individuals, materials can only move quickly if the passage is unobstructed by obstacles of any kind. In order to compensate for that, the concept sticks to an additional amount of duration, "throughput time," which acts as a helpful gauge of the pace of flow contrasted to the time that the parts for an example of merchandise begin to be worked on until the element is finished and sent straight to the end-user or a completed warehouse for storage (Schmenner, 2012). The concept encourages the process in order to utilize fewer seconds on setting up the clock in this manner (the throughput time) while keeping everything else steady. Throughput time can be very helpful for identifying the areas in which flows have slowed down or gotten obstructed.

To eliminate the non-added procedures and actions from the existing operations then the third principle of scientific methods is applied. Those non-value procedures are then replaced by value-added procedures in the operations. The theory rectifies the scientific methods as statistical data to add recognition to the non-value-added work and to remove the loopholes which take place in operations process (Schmenner, 2004). Sometimes, these scientific methods get irrelevant when applied to non-value-added operations. Another principle related to quality aspects help Paramount Diner to determine the negativity in the procedure when there is s outflow of the process due to substandard rework, disrupted flow materials, machine outdated, and so on. In order to reduce the variability the theory is useful as it helps in preventing the loopholes which occur during production line.

By focusing on the product standards and the quantity the company can remove variability and can maximize its productivity with the use of factory focus principles. It becomes easier to identify the flow of the production materials and removing of the non-value-added when identical products are put tighter in a group (Fredendall, et. al, 2009). The three perspectives behind the factory flow theory are evenness and quality checking, swiftness and adding a delivery period which taking place in the production process. These three steps are also called the post-processing stages of production.

The implication on the operation managers is severely affected by the Swift Flow Theory. In operations, the theory determines the productivity growth that is used to forecast future outflow. Compact layouts and the creation of cells are supported by the theory itself. The speed of making a product gets increased when the flows are highlighted by the cells and there is a decrease in the variability when similar products put together (Devaraj, Ow and Kohli, 2013). For increasing the production rate, the slowdown in the process inventories is required for the swift flow of the products which is also supported by the theory.

There are no consequences offered by the theory for the unfinished products and for the inventories. The theory only supports the work which helps the Paramount Diner in reducing the variations and making policies which support the flow speed. Supply chain efficiency is also supported by the theory of swift flow (Venoso, et. al, 2021). To achieve maximum productivity and popularity the link between the flow of products and the end user should be strong which smooth the delivery process.

A number of performance methods in the company should be eliminated according to the theory. The efficiency of labor and the usage of machinery in production should be used to measure the flow variation as the theory suggests (Rinaldi, et. al, 2022). Appropriate methods should be considered while measuring the flow of productivity. It also rejects the method of individual and working works as the measure to rectify flow variation. The argument is done on the substitution of labor with capital in regard to the increase the productivity. The theory suggests that continuous flow systems are more useful than productive methods in order to increase the resource intensive. Thus, high efficiency is not achieved with the continuous flow system methods as there is greater resource allocation. Instead it is achieved when there is a stagnant or lesser flow of the variables in the production.

Some benefits that the theory provides are related to the even flow of materials which reduces the processing time, loopholes and visibilities. Customer satisfaction can increase with an increase in the quality of the food served which will result in less rejection rate. The main aspect of the theory is to focus on quality (Siregar, et. al, 2022). The cost per unit will impact the profits as the demand for visiting Paramount will rise. With the implementation of theory in the service sector, employees get motivated which leads standards and decorum of the place. The main two issues with this theory are lack of coordination in relation and lack of standardisation process. More cognitive capacity in the process is available when everyone is combined under the same set of rules and regulations which is beneficial in complicated situations. Additionally, some other techniques like lean or six sigma rule are applied in quality assurance which drives the theory.

The uncertainty linked with operations and demand processes should decrease in order to maintain the continuous flow of materials. To measure timing & quantities, the demand of the consumer, and time spend variability is used. When the requirements placed on the process are even and homogeneous, variability is minimized. Plans for production that have "level" timetables or amounts generate greater amounts than those that have erratic schedules or amounts. There are fewer variations between demand timing and amount as a result of the demand being steadier. Variability is decreased when related things are dealt with together. Therefore, production will rise anytime similar tasks can be completed concurrently without delaying the procedure.

The variation linked to the need for the method or the operational stages of the procedure must be lessened to guarantee materials stream with greater regularity. The amount of time required in different phases of the process, the variation or standard deviation of the volumes required, or the fluctuation in scheduling are all employed to quantify variation. Further, variability is decreased when the imposed requirements on the method in question are symmetrical and constant (Devaraj, Ow and Kohli, 2013). Plans for production that have "level" quantities or due deadlines are more effective compared to proposals that have unpredictable goals to meet. Demand is more stable, which suggests fewer swings in the period of time and quantities requested. Variability is also decreased when comparable things are going through simultaneously. As a consequence, production will increase each time identical duties may be accomplished concurrently without interruptions to the whole procedure.

2. PROCESS ANALYSIS

2a: Quantitative analysis

2b: Explain how the unusual seating policy is an operations management tool

At Paramount Diner the seating policy is very different in contrast to the standard restaurant policy. Without making payments, the customers are not allowed to be seated at the tables. As there are limited tables available the management of the restaurant made this policy due to the hype of customers' arrival at the restaurant (Miši?, and Perakis, 2020). This policy ensures that every customer can enjoy their food. Customers who arrived early can order their meals and can be seated after making the payment meanwhile the other customers can wait for their number to come. Utilization of the tables is achieved with this seating policy.

Customers arrival rate

Worker’s utilization

3. INTRODUCTION OF VARIABILITY IN CUSTOMER SERVICE

3a: Use the knowledge acquired to discuss how customers introduce variability for the Paramount

The major challenge that variability put in the business is the challenge of generating profits. Reduction of variability must be done to overcome this challenge as suggested by the operations management theory. The decision to eliminate variability in customer service is not a good idea as it helps the customers to rate their experience (Choi, et. al, 2022). Another reason for this step is that it becomes difficult in the service sector because they cannot control quality while it is easier on the manufacturer's side. The profitability is affected by the customer’s reaction and their experiences. Introducing certain types of variability is good for management.

Paramount’s clients can out new ways in variability which lead to management of the business and escalates issues. Deleting variability is important as suggested by the theory of operational management because it works as a threat towards quality. It is the habit of the customers to complain. They will find some disparities or mistakes when variability is there or not. Customers are considered to be the value input for any service company so it is the responsibility of the management to consider their request every time. Customers are emotional in nature and variability affects them a lot. The new ways of variability include:

Arrival variability

At Paramount, the customers have to wait in line for their number to come. The restaurants always have customers lined up in queues. When the time is inconvenient to the service providers, in that case, they are not able to give services to them (Larsen, and Wright, 2020). Customers come at different times, they want different services in different cases and this happens every day. On weekends the sense is just different as the customers have to wait for their chance to come. Due to this the customers get a bad experience and are disappointed. The best way to make customers happy is to book appointments online. Reservation of tables before arriving is a great idea to avoid arrival variability.

Request variability

This variability creates a challenge for the Paramount in the way that one type of order can be substituted for another. The customers can ask for those orders also which are not even included in the menu. By making the menu absolutely adhered to, Paramount can solve this issue by implementing a no-substitution policy. Those orders which do not match the menu are not been delivered to the customers.

Capability variability

The customer can make compliant about the restaurant if they have to wait for too long to have their meals. The seating policy discussed above can be termed capability variability. Communication is required to effectively manage the seating policy implemented (Kumar, 2022). The restaurant has to make a proper sitting place for the customers who are in line. To overcome this variability efficient management is needed between service providers and customers.

Effort variability

Effort variability is the effort put in by the customers in the service interface. Long waiting hours are the biggest challenge for Paramount. Customers who come to have their meals feel disappointed if they have to wait so in this case, the customers tend to go back to another court. This makes the profit decrease at Paramount. In order to face this challenge, the restaurant should hire more chefs and employees to attend to their customers and encourage more take-away.

Subject preference variability

When customers made for their number to come Paramount respect and treats their customers in order to make them feel comfortable. The staff at Paramount offers drinks to customers who are waiting. To overcome this challenge the staff can put more chairs for those who are waiting.

3b: Discuss whether the Paramount accommodates or reduces this type of variability

It is very clear from the discussion and analysis presented above that Paramount can accommodate these variabilities existing in the service sector and presented by the customers. Arrival variability is the biggest challenge that the outlet has to manage. Capability variability is the second that needs to be addressed. Paramount has to prioritize its customers according to the time of arrival. The uncommon seating arrangement creates a huge problem (Benjaafar and Hu, 2020). Effort variability is third because long-line clients baulk or renege most of the time.

Paramount have to focus on these challenges and have to accommodate their customers. The introduction of automated machines should be there to attend to customers, self-service policy, online reservations, carry out orders & takeaway can be the solution for Paramount.

4. THE ISSUE OF CARRY OUT ORDERS

4a: Where has the idea for carryout orders come from?

When customers have to wait for too long for their chance to come this creates baulking and reneging in their minds. In order to prevent this type of situation carry out is the best option. Customers avoid standing in long queues and they prefer delivery of their orders. Most of the customers fainted while waiting for their number to come (Michalikova, et. al, 2022). Paramount can serve only forty-four customers at the same time and due to this customers prefer take-away or online food delivery. One uncomfortable thing which customers and the staff serving them faced is of enough space. There is no space for the staff to perform their activities or services.

The management realized this problem soon and decided to introduce carry-outs in order to reduce the number of dine-in customers and to increase the profits they were losing. Michael Conlon soon realized the problem of his customers and decided to serve them online. It is basically, easy for both the management and customers as the management does not have to rush and the customers do not have to wait in lines (Istanti, et. al, 2020). This idea has increased the efficiency and revenue stream of the business. With the development of technology and smartphone users, the business can expand easily. Also with high internet speed and communication network, the outlet can grow faster and can make alliances with other outlets also. The delivery cost set by the management is not very expensive it’s cheaper which results in reduced footprints and fewer movements.

The manager of Paramount wants to create a balance between the two sections. One is a delivery segment and the other is a serving segment. The balance will bring maximum profit from both sides. Those ten per cent of the clients are very beneficial in a way that they will promote the delivery services to others and will encourage their friends & family to go for carryout option (Rai, et. al, 2022). Once, the delivery segment is adjusted and it becomes successful then the management can focus on the dine-in segment separately and can take further steps to improvise it.

4b: What are the business motivations for adding this type of service?

The business motivation behind the idea of carrying out is to reduce long queues outside the outlet. The chef has to attend to all the coming orders which are supposed to be picked up by the delivery services (Junaedi, et. al, 2020). This has impacted reducing the long lines of customers waiting outside the restaurants. Earning more revenue by providing dine-in as well as carry-out services is the main business motivation for the restaurant. Appropriate methods should be considered while measuring the flow of productivity. It also rejects the method of individual hours and working works as the measure to rectify flow variation (Zhang, et. al, 2021). The argument is done on the substitution of labour with capital in regard to the increase the productivity. Conlon has to make his team bigger by hiring new employees.

In order to manage take-outs orders he has to employ new chefs in the restaurant and he has to manage time, effort, delivery, and customer care by employing new workers. One thing related to carryout orders is that it encourages employees by building motivation in them. Employees are motivated in handling uncertainty in a better way by making them confident in their services. Motivation is earned by knowing customers’ tastes and pReferences. In order to motivate the workers, Paramount should serve them morning treats like coffee and breakfast ultimately the workers will get motivated and they will start the day with a kick-off. Celebrating success is another way for motivating.

4c: What impact will adding this service have on the restaurant customer experience?

Customer experience can be enhanced by providing more carry-out orders. The idea of delivery services will affect Paramount's sales positively. The seating policy mentioned above creates a kind of negativity in the minds of the customers first they have to make payment before they get their meals and second they have to wait in a long line. Customers used to go back when they see long lines outside the restaurant (Dogru, and Keskin, 2020). Customers now also prefer takeaway and delivery orders as they do not have to go out they can simply sit at their place and can enjoy their favourite meals from Paramount. The idea will increase restaurant ratings as their customers are having the best experience. Newer customers will come to Paramount by knowing what kind of services it is providing. The revenue stream of the restaurant will get impacted as the new customer will come.

5. MANAGEMENT DECISION

More focus on carrying out orders will be more useful for Michael Colon, the owner of Paramount Diner. It will be more profitable in providing delivery services with dine-in services as well. Implementation of new ideas and strategies is defined to be beneficial in the case of a restaurant where people wait for their number (Heizer, et. al, 2020). Conlon has to make his team bigger by hiring new employees. In order to manage take-outs orders he has to employ new chefs in the restaurant and he has to manage time, effort, delivery, and customer care by employing new workers. The management should be properly implemented. This can be done by separating the queues for dine-in and for takeout customers at the collection point. This will also result in attending to customers quickly without wasting time.

Renovation of the building can be done in order to make the place more spacious. Restaurant management can create an online food delivery application for their customers so that they can order in an easy way. Another thing management can do is to make a team for handling their finances and expenses once this is done then the cash flow of the business becomes easier for justification. The profitability of the business can be tracked by comparing the cost incurred by the management and the revenue earned (Choi, et. al, 2022). With a website, it is way easy for customers to order food anywhere anytime. Michael Conlon should involve his friends in his management so that the risk gets divided among them. Initially, the carryout order percentage is 10 per cent but over time this should get increase with good operational management. The idea of delivering food is best as it will help in reducing the congestion which is being created in the outlet. With this practice, the restaurant can earn huge profits. All these factors will increase the number of carry-out orders.

CONCLUSION

The business decision taken by Michael Conlon will help Paramount to grow faster. Paramount can perform different activities to reduce the variability of the restaurant. The management can notice its customer preferences and can evaluate the menu accordingly. The theory only supports the work which helps the Paramount Diner in reducing the variations and making policies which support the flow speed. Supply chain efficiency is also supported by the theory of swift flow. To achieve maximum productivity and popularity the link between the flow of products and the end user should be strong which results into smooth delivery process.

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