Service Operations Management OPS 5095 Assignment

Case #1 – Sunset Grille

1. Discuss demand variability from seasonal, weekday, weekend, and daily peak period effects. What should be the targeted process rate (meals / hour throughput) to meet demand? Discuss how you arrived at this rate.

2. Discuss capacity of each staff function, based on current base manning plan. Where are the bottlenecks? What staffing levels are recommended to meet various demand situations, but not incur needless costs from excess employees? Illustrate work balance with before and after balance boards. To what extent is capacity improved (meals / hour throughput) with your new staffing plan (“after”) and what will the payroll costs be, compared to current base staffing (“before”)?

3. Discuss seating capacity, based on both indoor and outdoor seating. What is the average table turnover time (customer to customer). How many meals per hour can be handled during the various seasons based on seating capacity? What changes are recommended. How much will meals per hour be improved and at what cost?

4. How would you improve facility layout, menu boards, and process flows? What are the costs and estimated improvements?

5. Construct an estimated income statement for the past year, at the gross profit level (before”). What is each additional customer (meal) worth in gross profit? Estimate how your proposals would individually and collectively improve gross profit resulting in a planned income statement (“after”).