Operations Managment Assignment On Dominos India
Operations Managment Assignment On Dominos India
Assignment
0f
“Operations management”
Topic: Study of operations management of ‘Dominos’ India.
Submitted for the partial fulfilment of requirement for the degree of Masters of
Business Administration
Of
(2020-2022)
Scope of operations:
Dominos operations have too much scope in India because India emerges as biggest
market for dominos outside USA. Domino’s, the world’s largest pizza delivery chain,
sells more pizzas in India than anywhere else outside its home country.
India got to second rank in the Domino’s universe within 18 years. However, India is a
distant No. 2 to the US, where Domino’s operates more than 5,000 stores.
Domino’s Pizza India, run by the Bhartia family, promoted Jubilant Food Works NSE -
0.57 %, now makes and sells four lakh pizzas every day, or more than 12 crore pizzas a
year, about twice the number of burgers McDonald’s sells in India.
There are 818 Domino’s Pizza restaurants in India across 173 cities.
According to the CEO of jubilant Food works, “We still see huge scope for growth. We
believe we are scratching the surface. Over 15 million people are consuming us every
year.”
Kaul said Domino’s is looking to set up 150 new stores every year and hopes to touch
1,500 to 2,000 stores by 2020. He said people like eating pizza in smaller markets such as
Patna, Salem and Kanpur as much as they do Delhi or Mumbai.
Key Operations/Processes:
Pizza
Subs
Chicken strips/bites
Wings
Garlic bread
And potatoes wedges.
Process: The production process is very streamlined and structured - from the order placement to
the final delivery to the end customer.
Step 1: The customer initiates the order or place the order. It could be through the phone, internet
or a walk-in to the restaurant.
Step 2: The Dominos representative takes the order and enters it into the Dominos PULSE
system (a proprietary system that streamlines the order taking process).
Step 3: The order displayed on the screen on the assembly line along with the customer’s
specifications.
Step 4: One of the team members in the assembly line picks up the work order, prepares the
dough and applies the sauce and cheese accordingly.
Step 5: In the next step of the “make line” another team member add the appropriate type/amount
of toppings, and then places it into the oven.
Step 6: After the allotted baking time, a third member of staff removes the pizza from the oven
and places it in a box (which has the order type & number displayed to ensure accuracy of
delivery). The pizza is then ready for delivery.
Step 7: The pizza box is put into a hot-bag and is dispatched through a delivery driver or handed
out for collection by the waiting customer.
A typical Dominos store layout includes the following: Reception, Assembly Line, Oven
Packing area, Office, Cold Storage, and Washing Area.
Risk management through its operations:
Market risk: So, when dominos established in India it was not so popular. There was risk on
dominos. Like:
Initially flavours of dominos were not according to the Indian culture so people did not
like dominos much. Then they did research and launched some new flavours as per the
culture of India such as ‘achaari flavour’, ‘tandoori flavours’, ‘paneer tikka pizza’ etc.
there was nearly 80% change in existing menu.
The customers need was dependable take away restaurant, reasonably priced hot quality
food and variety that suits the local palette. So, they need to make a hybrid combination
of full time service restaurant as well as take away outlets. So, a combination of the
Company level strategy and the Operational Strategy has launched by dominos to meet
the requirement.
Time taken for each activity is not the same. Since the process is not automated,
individual efficiencies of team members results in an uneven flow of work.
With the increase in prices all around, Domino’s India saw a depression in the quality.
The decrease in quality wasn’t well-received by customers, and many people shifted to
other joints to fulfil their pizza needs.
It offers many discount coupons to attract customers. And also changed recipes, provide
more big toppings, cheesy crusts etc.
The ‟30 minute luxury‟ of Dominos has given the brand a strong image among the
customers.
Dominos needs to ensure speedy delivery of pizzas to customers. For ensuring this they
made changes in their process design, hired more staff, made availability of enough space
to work in restaurant and provide extra machinery.
Dominos launched new iPhone apps and the pizza tracker to maximize its services.
The company has developed its innovative approaches in four main areas:
Paradigm Innovation
Position Innovation
Process Innovation
Product innovation
So, Jubilant Food Works manages all these risks from its operations management. Because of
which now dominos solely enjoys 16% market share.
Analysis of Quality:
Quality of products and service is very essential to for Dominos to maintain its brand
image and reputation as a company that serves quality products. So, Domino's Pizza
strictly adheres to guidelines and parameters defined by Food Safety and Standards
Authority of India (FSSAI) to ensure that the sourced ingredients as well as the finished
products offered to you meet all defined quality standards.
Dominos ensures that all food products are risk assessed and their production is either
audited by Food Technologist or is certified to the BRC Global Standard for Food Safety.
Quality checks carried out on delivery, samples sent for analysis or feedback received
from stores or consumers.
Analysis of Price:
Domino's India focuses on the high quality of their pizza but also have the lowest priced
Domino's on the planet.
This pricing is helping them be the go to pizza delivery in the country. Pizza in India is
almost a full $4 USD cheaper than the other popular Domino's markets.
Domino's offers many value packs and everyday value offers: 2 Pizzas at ₹99 each, 2
Pizzas at ₹139 each, 2 Pizzas at ₹179 each etc.
Analysis of time:
Delivery of Happiness in 30 Minutes. Domino's is the only pizza brand in India that has
geared all its processes to meet its famous 30-minute deadline. Yes, you place an order
for your pizza and it reaches your doorsteps within half an hour. Any later than that and
you get your pie for free.
Analysis of flexibility:
Dominos processes and structure is flexible. Establishing in India is one of the biggest
examples of flexibility of dominos, because dominos reinvented itself to win in India.
India is such a diverse country and they have made changes in their flavours, process so
as to operate successfully in India. So, they accept the changes and adapt accordingly. So
whenever there is need to make changes in dominos, they can easily make those changes.
And also dominos offers flexibility to their customers. They offer the facility of custom
orders in which customers can choose flavours, spices, crust, toppings according to their
wish and dominos provide pizza according to their preferences.
Domino's Pizza says that increased flexibility on casual shifts will benefit workers and
franchisees. So, they give flexible working hours to their staff.
Existing value chain: Dominos India’s need to create the product is driven the needs of
the customer. The value chain which drives the customer is: 1) Reliable take away
restaurant, 2) Right price, right quality & hot food and 3) Menu which has variety.
Minimize operations cost: To minimize the operating cost by improving the efficiencies
and process at the stores.
Strategic store locations to facilitate the delivery service: The strategic location of the
store in order to facilitate quick service to the customer and maximize the revenue.
Production oriented store designs: To utilize the production oriented store design in
order to facilitate efficient production and quick service to the customer.
Efficient order taking, production and delivery: To execute an efficient operational
process that includes order taking, pizza preparation, cooking, boxing and delivery.
Use of Domino’s PULSE point of-sale system: Use of Dominos PULSE system to
improve operating efficiencies, provide corporate management with easy access to
financial and marketing data and reduce time consumption and expenses.
Product and process innovations: To promote an innovative culture that increases both
quality and efficiency.
A focused menu: To maintain a focused menu that is designed to present an attractive
quality offering to customers, while minimizing order errors, and expediting the order
taking and food preparation processes.
A comprehensive store operations evaluation program: To utilize a comprehensive
store audit program to ensure that stores are meeting both as the expectations of the
customers.
Conclusion: So, at the end of this assignment on operations management of
Dominos India, I would like to conclude that dominos is one of the leading companies in
the market for serving their customers. It manages its operations well in order to
dominate the market and maintain its position. I have analyse the scope of operations of
the company, key operations, process, quality, flexibility, time, risk management, price,
green impact and operational strategy that provides me practical knowledge of operations
and exposure. I come to know that how service companies that is restaurants manage
their operations, what are the processes, how they satisfy their consumers etc. I have tried
my level best to jot down whatever I have learnt.
References:
Dominos restaurant, Nawanshahr, Punjab.
https://www.posist.com/restaurant-times/features/dominos-india-sinking-ship-gasping-
breath.html
Wikipedia
https://www.jubilantfoodworks.com/brands/dominos-pizza
https://www.researchgate
Thank you