BMG855 Operations Management Essay Sample

The Theory of Swift Even Flow (TSEF) in Managing Flow and Productivity

Introduction

In order to maximize efficiency as well as financial advantages, operations administration entails the control of the way a business is organized, practices, and services. It includes the efficient administration of the different tasks necessary for the efficient day-to-day functioning of a company, including the direction of several divisions and the setting of goals. The case study on Breakfast at the Paramount concentrates on its restaurants' odd seating rules and current enhancements in the attractiveness of carryout orders. The purpose of the studyis the “Swift, Even Flow” philosophy emphasizes successful procedures via dependable data as well as supply movement. With its carryout unity, the firm manages unpredictability, enhances customer pleasure, and increases seating.

Essay

Assessing the importance of TSEF (Theory of Swift Even Flow) in managing flow and productivity

The theory of “swift, even flow,” first put out by Schmenner as well as Swink in 1998 which holds that improved efficiency in processes results from a faster flow of data and supplies (Swink, 2023). Better efficiency is a result of this faster speed. On the other hand, the procedure's total efficiency is reduced by the existence of unpredictability. Optimizing procedures to increase efficiency as well as productivity is the overarching objective in the field of operations administration. The concept of Swift is a key notion that guides this attempt. According to this hypothesis, a procedure is more effective the faster and further evenly “flow units” circulate throughout it (Devaraj, Ow and Kohli, 2013). This framework is the foundation for several operational tactics and holds the ability to completely change how firms run their operations thanks to its broad repercussions and use.

The idea of flow devices is the foundation of the theory of swift, even flow. Such units of flow may consist of a variety of things, including items, clients, bits of data, or jobs. The underlying assumption has to do with productivity increases as these motion units navigate a procedure more smoothly. Better total process efficiency follows from this. The essential idea in this framework is supply, which includes both speed and uniformity of advancement (Schmenner & Swink, 1998). In order to secure the best results, the theory advises limiting process disturbances and variations. A collection of fundamental values that clarify the nature of productivity inside a procedure are at the heart of this concept (Shahbaz, et.al, 2020). The efficiency of any procedure, regardless of if it involves people, equipment, resources, or every aspect of it, is known to increase in direct proportion to the rate at which work is completed. Rapid flow unit mobility increases total productivity through lowering inactivity, waiting periods, and inadequate use of resources.

Alternatively, the idea emphasizes the antithesis between efficiency and unpredictability. Variability may result from changes in demand or inconsistent internal processes. According to this Theory, greater unpredictability level reduces productivity to the large extent (Slack, et. al, 2018). This may be linked to the difficulties in controlling the procedure's inconsistencies or fluctuating needs, which frequently cause failures, errors, and lower output. The Rule of Bottlenecks, a further essential component of the theory, is closely connected to the Rule of Variability. A procedure or step that restricts the structure's total capacity is referred to as a barrier (Ganbold, 2021). The hypothesis contends that by removing or skillfully controlling these barriers, a procedure's productivity may be greatly increased. The movement of units gets easier by simplifying these limited locations, lowering delays and improving resource usage. The main objective is to create a smooth rhythm inside the procedure so that flow units may move fluidly from one step to the next.

The Rules of Quality, which result from the Model of Swift, is similarly founded on the concept of quality. This idea holds that using various quality improvement methods might lead to increased efficiency. The requirement for revisions, rectifying, or modifications, which would normally hinder the movement of units throughout the procedure, is minimized by providing a uniform and excellent product (Fredendall, et. al, 2009). Adopting quality-conscious procedures strengthens the method against interruptions by boosting productivity as well as client fulfillment. The third principle that results from this idea is the Rule of Focus. It emphasizes the value of focusing on a small number of tasks inside a procedure (Cachon and Terwiesch, 2013). This field of expertise produces a method that is skillfully tuned and designed to carry out particular duties. By narrowing the range of the duties, intricacy is reduced and the chance of mistakes or inefficiencies is reduced. The procedure is simplified as a consequence, allowing the flow units to shift quickly and consistently.

The case research of SwiftEats-A Fast-Casual Restaurant provides a useful application of the principles of TSEF in everyday situations. Queues frequently form outside the restaurant because of its high profile, especially on weekends, which calls for the effective administration of both performing orders as well as seating customers. By putting the theoretical concepts into practice, the restaurant may concentrate on streamlining its operations by lowering wait time variability, successfully handling the bottleneck caused by the capability of the kitchen area, and preserving food taste (Sartal, 2020). The restaurant may increase efficiency and provide an effortless visit to its customers by focusing on a small number of activities and perfecting how they are carried out. SwiftEats uses self-ordering devices and online menus to manage orders quickly, accurately, and without mistakes, improving client service as well as cutting down on queues.

The Swift theory is extremely relevant in modern rapid and dynamic environments as well as in conventional industrial or service sectors. These ideas have become increasingly crucial with the development of digital technology, online purchasing, and globalized marketplaces. It is critical that the theory's focus on lowering variability as well as maximizing flow is applied to the online environment, where the exchange of data is the heart of processes (Schmenner, 2012). SwiftEats appreciate immediate client input and uses it to spur advancements. To improve the flow of services and the entire encounters, they assess customer happiness, alleviate delays, and continually make modifications. Variability Law is especially relevant in the context of digital operations, which frequently experience unforeseen interruptions brought on by security threats, system errors, or hacking of information. By reducing this unpredictability, enterprises may organize and employ data more efficiently while also ensuring a smooth and safe online flow.

The framework of Swift may be very useful for e-commerce systems wherein the flow units were online payments and deliveries. Ordering in advance and paying without touching anything are made possible via SwiftEats' Smartphone applications, which also optimize the client's service by enabling rapid payments and simple order collections. These systems may increase client satisfaction and retention by expediting the fulfillment of orders, cutting down on shipping delays, and guaranteeing the constant quality of the item. Additionally, the Rules of Focus are crucial since such channels need to handle a wide range of items and offerings effectively, which calls for a concentrated strategy for every link in the supply network (Mercan, et.al, 2021). Further difficulties brought about by globalization include shifting trends in demand, divergent rules and regulations, and cultural factors. SwiftEats adapts to changes in demand by cross-training personnel for several positions. This flexible distribution guarantees ongoing support at times of high demand, improving operational effectiveness and client happiness. Large companies are helped in overcoming these difficulties by adopting the theory's concepts. These businesses can guarantee a seamless flow of goods and services throughout all regions by minimizing obstacles, matching manufacturing methods with regional demands, and upholding rigorous norms everywhere. The TSEF principle touches on environmental programs as well. Several companies work to cut trash and use resources as efficiently as possible (Schmenner, 2004). Businesses may reduce idle hours, excessive production, and pointless labor by following the concept's values, which will promote ecologically friendly operations.

Process Analysis Operation Management

a. Quantitative analysis

Activity 1- Order/ cook

Total number of chef- 4

Activity time per consumer is 40 seconds

Capacity = 1/ activity time

= 1 * 60 * 60/ 40 = 90 customers

This implies that Paramount will serve 90 consumers per hour during activity 1.

Activity 2- Pay/ order

Number of staff- 2

Avg time to serve drink- 45 seconds

Avg time for making payment- 1 minute per party

1 party is having 2.6 consumers approximately= 60/ 2.6 = 23.07 second per consumer.

Capacity = 1/ activity time

= 1 * 60 * 60 * 2 / 68.06= 106 consumer per hour

Activity 3- sit/ enjoy breakfast

Seating capacity is 35.2 which is calculated as 80 % of 44.

The average activity time is 19 minutes

So the capacity is 1/ activity time

= (1 * 60 * 35)/ 19

= 2100/ 19

= 111 consumers per hour

Thus, total 111 consumers will sit and enjoy breakfast per hour.

So the bottleneck within the performance of the company is making food as it handles least number of consumers.

Further calculation

For drink and pay

45 second is taken by employee to fulfil the drink order

= 45/ 2= 22.5 second per consumer

For payment

It takes 1 minute for processing the payment therefore

= 60/ 2.6

= 23.07 second

Therefore, total time taken is

= 22.5 + 23.07

= 43.03 seconds

For eating total seats available is 44 so 80 % of 44 is 35.23 seats.

Further average table turnover is 19 minutes so

= 19 * 60

= 1140 seconds

= 1140 / 35.23

= 32.28 second per consumer.

So here the bottleneck is drink and pay.

Bottleneck steps

Capacity = 1/ activity time

Customer flow rate = 32.38

=1 *3600/32.38

=111.17 customers per hour

Customer's arrival rate

Worker's utilization

P= γ/ µ

= 80/90=0.889 = 88.9%

Average number of consumer waiting in queue

Lq = ρ2 / (1-ρ)

= 0.889^2/(1-0.889)=7.12

8:00 am. Exhibit 6

Before restaurant opens = 35 customers

Lq=7.12+35=42.12

Wq=42.12*1.5=63.18 min waiting time for each Customer

Worker utilization in cases where carryout orders are considered

ρ1 = 80/81 = 0.9

Lq = ρ2 / (1-ρ) = (0.9^2/1-0.9)

=0.81/0.1

=8.1

Wait time for each consumer

8.1+35=43.1 because 35 was in queue

43.1*(81/60)=43.1*1.35=53.18 MINUTES

With the help of the above calculation it is clear that Paramount is able to meet 90 consumers in Activity 1, 106 consumers in Activity 2 and 111 consumers in Activity 3. So the bottleneck was found in activity 1 as the number of consumers per hour is less. So it is the responsibility of the hotel to work on improving this activity so that the number of consumers increases (Benevento, Aloini and Squicciarini, 2023).

Explaining how unusual seating policy may be served as an operations management tool

With the help of the case study, it was clear that the company had having unusual seating policy and this might not be liked by the consumers. The seating capacity of Paramount is 44 people which is less and because of this, they have an unusual policy for seating. With this seating setup, the consumers were not allowed to sit before they got the order (Zhang, Zhao and Hu, 2023). This policy was applicable for the reason that the number of seats was limited and consumers were more and as a result of this, the unusual seating policy was used. As an operational management tool, it needs to be improved so that more consumers can be brought and served together.

How Customers In Service Industries Introduce Variability.

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

The activities of the Paramount, a well-known eatery in Boston, are subject to a variety of unpredictability brought on by patrons that may have an effect on the restaurant's effectiveness, use of capacity, as well as entire client experience. The causes of this heterogeneity include several facets of buyer habits and interests.

Arrival variability- During the day, clients fail to show up at a constant rate. Arrivals at the restaurant are at their highest during 9 as well 11 a.m. although they start to fall after 1:30 pm. The eatery's capacity to handle lines and deploy resources efficiently is impacted by this entrance fluctuation (Wu, 2021). At the busiest times, the queue frequently backs up beyond the eatery, causing an obstacle. Due to this fluctuation, it is difficult for the restaurant to plan when to hire more personnel, set up more records, or use other techniques to effectively handle the flow of guests.

Effort variability- Both the tastes and quantity of orders of clients vary. Pancakes are a straightforward option for some, as waffles or omelets are higher-end options for others. Due to the potential influence on the duration of cooking, duration of cycles, as well as total kitchen productivity, the culinary crew must adjust to such fluctuations in order intricacy (Wood, 2022). Cooking units may have uneven workloads since, for instance, making an egg dish can take lengthier than making pancakes.

Capacity variability- The hotel has a preset amount of seating (44) but an unconventional layout of seats, which causes variation in the capacity of seats. Due to the lack of seats, eating in clients may have lengthier queues throughout busy periods. Additionally, the range in client party sizes (ranging from one to seven) adds to the potential unpredictability. Bigger gatherings use larger areas, which might have an impact on the number of tables that are available for sitting generally.

Request variability - Clients may ask for particular modifications to be made to their orders. Some may request unique ingredients, changes in diets, or recipe customization. These demands add variety to the steps involved in preparing food and may interfere with normal kitchen operations (Sasser, 1976). Kitchen personnel must swiftly adjust and implement modifications to handle these requirements effectively, which might affect order processing durations.

Subjective preference variability- Clients make choices for their eating experiences differ. People might choose to remain and converse with others as they dine, while others may favor rapid delivery and be prepared to eat along with go right away to clear tables (Nattuvathuckal, 2020). The subjective variety of preferences affects the seat rate of turnover and might make it difficult to manage what customers want. For example, on gloomy days, patrons could remain longer, reducing the number of tables available.

To put all of this into perspective with the relevant articles

The capacity of the eatery to correlate supply (staff, cooking facilities) with want (client orders) may be disrupted by the unpredictability created by clients in regard to arrival schedules and order amounts, based on the page “Match supply and demand”. This may result in ineffectiveness, protracted waiting periods, and insufficient resource use. The restaurant must use techniques that equalize demand and supply, including adaptable culinary operations, variable queue administration, and anticipatory workforce.

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The paper entitled “Breaking the trade-off” claims that it is difficult to strike equilibrium between effectiveness as well as service efficiency because of the variation in consumer tastes and order intricacy (Andruszkiewicz, 2020). In allowing customization and preserving the quality of food, the kitchen needs to find ways to expedite processes. The restaurant may think about applying technological advances to improve order timeliness and precision, adopting conventional procedures for frequent customizations and training personnel to manage customization effectively.

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

The Paramount Restaurant strives to lessen the many sorts of unpredictability that patrons bring to its procedures while still accommodating them. It uses a variety of tactics to address the underlying difficulties while upholding a high degree of client happiness (Kyeremeh, 2022). The Paramount acknowledges that guests' tastes and requirements vary, and it works to make accommodations for these differences to improve the dining experience. The diner, for example, has a cafeteria-way layout where diners may select from a variety of breakfast alternatives. This strategy takes into account dietary restrictions and personal tastes. Furthermore, the code of conduct of the eatery, which permits patrons to stand waiting before being seated, guarantees an equitable and successful procedure for both frequent visitors and novices. Such a seating strategy maximizes table turnover while taking into account the variance in client time of entry. It does not overstate the number of available seats.

The Paramount additionally takes action to lessen the detrimental effects of client-induced variability. It also reduces the difficulty of preparing food by restricting its menu to a selection of superior, straightforward meals. This uniformity reduces effort variability in the cooking area and helps to make culinary procedures more effective. A well-organized crew of skilled cooks in the culinary department, each with a specialty in a particular cooking location, enables prompt and reliable delivery of orders while lowering turnaround variability (Alderighi, et.al, 2022). Throughout busy times, the eatery's hosts provide refreshments to patrons standing in line, assisting in controlling patron expectations as well as showing a kind act of hospitality. Beverages are available to shorten reported queues and contribute to a pleasant experience regardless of busy periods. Additionally, Paramount capitalizes on the rise in demand for perform orders by collaborating with shipping firms such as DoorDash. This strategy enables the eatery to take advantage of a rising income stream maybe reducing some of the strain on the number of dining-in seats during busy periods (Frei, 2006). This tactical move to increase the performance of business shows an effort to control capacity fluctuation and lessen the effects of crowding.

Considering Carryout Orders

a. Presenting the idea of carryout

The major issue present in the unusual seating of Paramount was that the seats were limited and as a result of this people were not allowed to sit till they got their order. Thus, this might affect the consumers as they are paying for the food but also they can't sit till the food is ready (Du and et.al, 2020). Hence, as a result of this issue, there was the idea of carryout orders started. This carryout order was an idea through which people could order the food and it will get delivered to them. Thus, in this case, the consumer will not have to wait in queue and can wait anywhere till the order is ready. As the order is ready they will take it and leave the hotel. Thus, the seating arrangement will not be affected much and the queue will also be less. Hence, the development of the idea of carryout was assistive to Paramount in solving the problem of unusual seating.

Further, with the help of the calculation, it is clear that when the carryout orders were considered for calculating the worker utilisation then in that case, the waiting time in line for consumers was less. In case the carryout order was not considered then the waiting time was 64.12 minutes (Fauziah, 2022). On the other hand, when carryout orders were considered then the waiting time within the queue was reduced to 50 minutes. Hence, with this, it is clear that Paramount will be focusing on the effective implementation of carryout orders so that the consumers can be managed in the limited seating arrangement only.

b. Motivation for adding this type of service

In the current working of the company, there are many different types of problems being faced due to the unusual seating policy. This provided the motivation to the Colon to implement some new steps for improving the efficiency of working. This is very necessary for the reason that the consumers were agitated as they were not allowed to sit till they did not get their order (Tang and et. al., 2022). Thus, this problem resulted in the development of the solution of using carryout orders. This problem motivated Colon to get the idea of using carryout orders. Paramount was facing the major issue of consumer dissatisfaction and this affected the working of the company to a great extent. Moreover, the consumers had to wait in the queue and this affected the efficiency of the hotel and also the overall profitability of the business.

Thus, to keep the consumers happy and motivated and to increase the efficiency and sales of business, the use of carryout orders was undertaken. This resulted in a decline in waiting time then only 10 % of carryout orders were used. Also, Colon thought that this compliance with the carryout order would affect the dine-in facility of the Paramount. This is particularly because of the reason that when people wait for the order then it might affect the consumers who have come for the dine-in facility. But as the waiting time was reduced due to the inclusion of 10 % carryout orders this motivated Colon to focus on including this as well into practice to keep consumers happy and engaged with the services for a longer period of time.

c. Assessing the impact of adding this service on customer experience

For businesses to be successful, the most important aspect is to keep the consumers happy and satisfied with the products and services provided. This is very necessary because when consumers are happy then the sales of the company will automatically increase. When new things are added to the working and operations then this attracts the majority of the consumers. Thus, ultimately this will result in increasing the sales of the company and eventually the profits will increase. Thus, with this, it is clear that adding the services will create a positive impact on the consumer experience (Petrillo and et. al., 2022). This is particularly because of the reason that when anything beneficial for consumers is added to the services then it attracts them towards the company and its services. Thus, these results in better consumer engagement and more consumers will be attracted to the products and services of the company.

Along with this, there is a trend of takeaway food popularizing and the facility is provided by Paramount. Thus this will create a positive impact on the working of the business and more consumers will order their food from home. This carryout option also results in better provision of services to the consumers and this will make them happy and satisfied so that the working capability of the company increases. Thus, the consumer experience will be affected in a positive manner and they will like to come to the place again and again. Ultimately this will increase the sales and profitability of the business to a great extent (Nadkarni and Puthuvayi, 2020). Moreover, the experience of consumers will also improve as all their needs will be satisfied by the services being provided by Paramount. This will assist the company in understanding the needs of the consumer and along with this the proper services will be provided to them. Thus, it will help the company in improving the overall consumer experience and will help in increasing sales and profit as well.

Management Decision

It is suggested that Michael Conlon, the proprietor of Paramount, strategically emphasize on the use of carryout orders inside the eatery. A number of variables that have an opportunity to improve the client experience as well as productivity in operation support this choice. Increasing client pleasure and encounters is of the utmost importance of these factors. The decision to accept extra carryout orders appeals to the desires of customers looking for a quick and practical eating choice (Colombe, et.al, 2022). This tactical change aims at tackling the issue of client discontent brought on by insufficient seats and long queues. Giving clients more options connects Paramount with a client-focused approach, increasing general fulfillment and fostering loyal clients. Increasing carryout orders improves seating utilization. Shorter queues for home customers are the result of greater carryout orders freeing up eating space. This quickens the rotation of seats, allowing Paramount to accommodate extra clients throughout busy periods while maintaining satisfaction. Increased takeout orders increase operational effectiveness. Planning ahead expedites kitchen tasks, which benefits both eating-in and takeout services.

Tactically, concentrating on boosting carryout orders helps spark company expansion. One significant factor in the industry's growth is the pattern of increasing preference for takeout and shipping solutions. By following this pattern, Paramount may increase its customer base as well as see an increase in total sales and income. This strategy results in an edge over rivals as well. Paramount may create a unique standing in the market by distinguishing itself by offering a practical carryout solution (Meraz-Ruiz, et.al, 2023). Clients who value efficiency and excellent food will find this appealing, perhaps increasing the restaurant's market share. Additionally, by making this strategy shift, Paramount is now in line with the adaptability and simple requirements of modern consumers. A stronger focus on takeout orders fits with the changing requirements of contemporary clients and enables Paramount to accommodate a wide range of tastes.

Conclusion

The report concludes that the idea provides insightful approaches for handling operational issues in service-related businesses such as Paramount Restaurant. Further, it has been articulated that an eatery may maximize efficiency, improve client experiences, as well as preserve competitiveness in an industry that is shifting quickly, by managing consumer-induced unpredictability through techniques like carryout orders. The choice by the hotel to prioritize ordering takeout is in keeping with shifting client tastes and solves the seating issue. In the context of Paramount, this change merely increases client happiness as it prepares the restaurant for expansion, enhancing its image as a client-focused company that can fulfill the changing requirements of contemporary dining events.

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Online

• Swink, L, M., 2023. On theory in operations management. [Online]. Available through: <https://www.sciencedirect.com/science/article/abs/pii/S027269639800028X#:~:text=The%20Theory%20of%20Swift%2C%20Even%20Flow%20addresses%20the%20phenomenon%20of,cumulative%20capabilities%20and%20trade%2Doffs.>