Quality Foods, Inc. first started as a single family operated restaurant in southern New Jersey providing high quality meals at reasonable prices and using fresh local ingredients. The business grew and Quality Foods expanded to operating multiple restaurants. The restaurant business is very competitive and Quality Foods’ competition included McDonald’s, SmashBurger and Chipotle’s. Besides quality and price, Quality Foods management also ascertains that the speed of service is critical to the success of their company. Based on preliminary observations, they found that their service delivery times were lacking when compared to their main competitors. From their studies, it appears that their restaurants provided slower and erratic service, when compared to their competitors. In order to identify and correct this potential problem, top management used various control tools such as check sheets, fishbone charts, Pareto charts, statistical process control and process flowcharts. Using these tools and other operation management concepts to rectify the problem, the management implemented a number of changes to improve the service times at their restaurants. They provided all their employees with training across all restaurant functions, improved their order taking procedures, revised the kitchen layout, devised clearer menu options, and implemented a new payment process. Most importantly, they installed video recorders, which allowed them to measure the service speeds. These quality measures were implemented over time and the results were encouraging. Service time improved dramatically and it seems that the management’s investments were paying off as their sales also increased. To maintain quality service, the management has decided to use statistical process control chart on a continuing basis. They collected six service time observations over a 15 day period for one restaurant and the data is shown as follows: Observations of Service Times (minutes) Sample 1 2 3 4 5 6 1 6.3 2.7 4.5 3.9 5.7 5.9 2 3.8 6.2 7.1 5.4 5.1 4.7 3 5.3 5.6 6.2 5.0 5.3 4.9 4 3.9 7.2 6.4 5.7 4.2 7.1 5 4.6 3.9 5.1 4.8 5.6 6.0 6 5.5 6.3 5.2 7.4 8.1 5.9 7 6.5 7.3 6.5 5.9 6.7 8.4 8 2.2 3.6 5.7 5.3 5.6 5.0 9 6.5 6.8 5.1 9.3 6.2 5.3 10 4.7 5.8 5.4 5.1 5.0 5.9 11 3.4 2.9 1.6 4.8 6.1 5.3 12 4.5 6.3 5.4 5.7 2.1 3.4 13 7.4 3.9 4.2 4.9 5.6 3.7 14 5.7 5.3 4.1 3.7 5.8 5.7 15 6.0 3.6 2.4 5.4 5.5 3.9 Case Questions For this case, please number and answer all of the following questions: In three sentences or less, identify and summarize the salient problem/s faced by Quality Foods. Identify other possible alternatives that the management at Quality Foods could take to increase it market share. Are the data collected from the samples adequate? What additional suggestions, if any, would you give to ensure the appropriateness of the data collected? Construct the appropriate quality control chart/s using the data provided in the case. Based on your results of controls chart/s from Question (4), what suggestions would you give to the management at Quality Foods.
Quality Foods Case
Quality Foods, Inc. first started as a single family operated restaurant in southern New Jersey providing high quality meals at reasonable prices and using fresh local ingredients. The business grew and Quality Foods expanded to operating multiple restaurants. The restaurant business is very competitive and Quality Foods’ competition included McDonald’s, SmashBurger and Chipotle’s.
Besides quality and price, Quality Foods management also ascertains that the speed of service is critical to the success of their company. Based on preliminary observations, they found that their service delivery times were lacking when compared to their main competitors. From their studies, it appears that their restaurants provided slower and erratic service, when compared to their competitors. In order to identify and correct this potential problem, top management used various control tools such as check sheets, fishbone charts, Pareto charts, statistical process control and process flowcharts.
Using these tools and other operation management concepts to rectify the problem, the management implemented a number of changes to improve the service times at their restaurants. They provided all their employees with training across all restaurant functions, improved their order taking procedures, revised the kitchen layout, devised clearer menu options, and implemented a new payment process. Most importantly, they installed video recorders, which allowed them to measure the service speeds. These quality measures were implemented over time and the results were encouraging. Service time improved dramatically and it seems that the management’s investments were paying off as their sales also increased.
To maintain quality
|
|
Observations of Service Times (minutes) |
|||||
|
Sample |
1 |
2 |
3 |
4 |
5 |
6 |
|
1 |
6.3 |
2.7 |
4.5 |
3.9 |
5.7 |
5.9 |
|
2 |
3.8 |
6.2 |
7.1 |
5.4 |
5.1 |
4.7 |
|
3 |
5.3 |
5.6 |
6.2 |
5.0 |
5.3 |
4.9 |
|
4 |
3.9 |
7.2 |
6.4 |
5.7 |
4.2 |
7.1 |
|
5 |
4.6 |
3.9 |
5.1 |
4.8 |
5.6 |
6.0 |
|
6 |
5.5 |
6.3 |
5.2 |
7.4 |
8.1 |
5.9 |
|
7 |
6.5 |
7.3 |
6.5 |
5.9 |
6.7 |
8.4 |
|
8 |
2.2 |
3.6 |
5.7 |
5.3 |
5.6 |
5.0 |
|
9 |
6.5 |
6.8 |
5.1 |
9.3 |
6.2 |
5.3 |
|
10 |
4.7 |
5.8 |
5.4 |
5.1 |
5.0 |
5.9 |
|
11 |
3.4 |
2.9 |
1.6 |
4.8 |
6.1 |
5.3 |
|
12 |
4.5 |
6.3 |
5.4 |
5.7 |
2.1 |
3.4 |
|
13 |
7.4 |
3.9 |
4.2 |
4.9 |
5.6 |
3.7 |
|
14 |
5.7 |
5.3 |
4.1 |
3.7 |
5.8 |
5.7 |
|
15 |
6.0 |
3.6 |
2.4 |
5.4 |
5.5 |
3.9 |
Case Questions
For this case, please number and answer all of the following questions:
- In three sentences or less, identify and summarize the salient problem/s faced by Quality Foods.
- Identify other possible alternatives that the
management at Quality Foods could take to increase it market share. - Are the data collected from the samples adequate? What additional suggestions, if any, would you give to ensure the appropriateness of the data collected?
- Construct the appropriate quality control chart/s using the data provided in the case.
- Based on your results of controls chart/s from Question (4), what suggestions would you give to the management at Quality Foods.
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