Operation Management

Student ID

Date
Paramount 2

Process analysis

The analysis of the paramount restaurant is as follows,

4-chefs serving at an average cycle time of 40seconds per customer

1 employee serving drinking orders at the rate of 40 sec per customer

Payment processing= 1min per party

19mins =average table turnover

3 customers are served at 1min then it is 180 seconds.

Seconds per customer on a seat = 19 ×60=1140

1140 divide by number of seat-44seats= 26 seconds

The flow rate= 1÷40 cycle time multiply by 3600

=90

Arrival hours of the customers on Saturday

Rate of hour No. of arriving No. of reneging The net no. of Rounding off to

individuals and bulking the nearest whole

arriving
customers number
Exhibit 6
customers per
Exhibit 7

7:30-8:30 35+45=80 15 65 65

8:30-9:30 35+42=77 16 61 60
Paramount 3

9:30-10-30 42+92=134 51 83 80

10:30-11:30 47+61=108 45 63 60

11:30-12:30 26+50=76 26 50 50

12:30-1:30 46+22=68 18 50 50

• Work utilization

The highest net customer arrival rate =80

µ=90 (flow rate)

Working utilization=80/90

=0.89 or 0.9

• The average number of customers waiting in the queue

Yɋ=ρ²/ (1-ρ) = 0.9²/ (1-0.9)

=8.1×1.5 minutes=12.2 minutes per customer

35+12.2=47.2

47.2×1.5=71minutes

The new utilization=80÷81=0.99

Average no. of queues=100

Paramount 4

Unusual seating policy in the paramount diner

Due to the conducted policy which was used in the paramount diner was used an

operation tool because there were fewer seats in the restaurant and their guest was requested to

order food fast, then pay and have their seats .this the strategy used by the managers to ensure the

is a higher rate of efficiency in the restaurant which reduced queuing of customers. In the

paramount diner, they use an unusual seating policy whereby customers we not allowed to sit

before they take their food with them (Sima and Vogt, 2017). The policy was to first order and

pay before one seat. The seating policy was an operation tool to the management since they used

it by advising the customers to queue in line as they wait for them to be served. Other customers

would have their seats and others would carry out orders to their homes (Aknar and Atun, 2017).

This policy helps in efficiency and speeding up the service by the employees or chefs.

The queuing length and time for waiting are manipulated basing the rate of arrival,

service rate, type of lines, and the servers in the organization (Dhingra et al, 2018). If the

customers in the paramount were allowed to seat before getting their orders, this would constrain

the paramount’s number of meals they offer. If the service and arrival times distributions are

known, there are available formulas for computing the waiting exact times and the lengths line

for various configurations of queues of the servers, arrival, lines, and server distributions. The

unusual seat policy has led to the development of the paramount since they have been able to

make a profit since they save the cost of production (Tang et al, 2019). In the paramount, the

policy and popularity in the restaurant led to the long queuing, especially during the weekends.

Variability by the customers

Paramount 5

The capacity level and demand chase are the matching services required for delivery.

Demand is changed in the following ways which include: developing nonpeak, forming

complementary services, creation of reservation services, and pricing (Lu and Gursoy, 2017).

Due to the fluctuation of demand, there is change incapacity whereby there is an increase in

participation of customers, workers part-time, distribution capacity, expansion investment, and

increase in efficiency level. There are challenges in creating services that are profitable in an

organization (Lu and Chi, 2018). For example, in the paramount diner managers are trained to

make use of tool kits in ensuring there is effectiveness in the performance of the business

According to the operation management theory the variability should be eliminated

because managers see it as a quality threat. When the variability in the restaurant is introduced

customers tend to complain about the skills of the employees and when the variability is denied

they still complain (Mueller et al, 2020). The manufacturer considers the cost of inputs

production and the quality, thus the management cannot consider the will of the customer on

denying the variability since the problem is to the service companies. Customers are considered

to be the input of the production process these inputs are, emotional in nature, not interested in

the profit agenda of the company, and capricious.

Types of variabilities

Preference is subjective variability- reliable elements of variability show that there are proper

services, for instance, accuracy, speed, accessibility, transparency, efficiency, and friendliness

that are being offered by the management. Individual customers, look at the way they are being

served and they will judge each attribute in different ways. They also want to be treated in an

environment that is more friendly(Loving et al, 2017). The perfection of one employee in the

paramount dinner leads to service appreciation. According to the case study, the customers in the
Paramount 6

paramount diner are served with a cup of tea first as they wait in the queue line. Different

customers have different preferences and tastes therefore they may order different types of food

according to their preference. Some may need more salt in their meal while others due to their

body conditions they may not need it.

Arrival variability- customers arrive at a different time in the industry and others need the

service to be offered at the same time, and others arrive at that time. For example, in the

paramount diner, customers arrive at the closing hours which are not efficient to the restaurant.

The customers renege and bulk which brings about a challenge in the industry but the

management tries to fix the issue (Virola, N.D). The arrival variability is used classically

through, appointment and reservation, but this only occurs in some instances not all the time. In

the theory of queuing, efficiency has encouraged the working body in solving the demand and

supply match in the industry.

Capability variability- the capability of customers varies from each other in different firms.

They may differ in resources, knowledge, skills, physical abilities, and the way they perform

their duties in the business, where others need to be directed on the ways they need to follow

(Kotz and Johnson, 2017). Capability variability benefits the industry in delivery and production

services where the customers are participative in the industry. Cleaning services may perform

their duties without necessarily having interacted with the customers. Customer capability is

observed when the employees perform their duties. For instance, in the paramount diner, the

employees who are more experienced shows perfection in their duties thus being of benefit to the

business.

Request variability- the policy in the paramount diner was to order food first, pay, and then

seat, this reduces the cost of production and time consumption. The employees in the paramount
Paramount 7

diner follow the rule which states that there are no proper ways to prevent the request variability

and substitution or the rate at which customers are asking for the service (Wang et al, 2020). The

anticipations of every customer are to raise the challenges that are faced in the industry services

but minimizing the standard lines. Different employees in the paramount diner, have different

skills that enable them to meet customer’s service requirements.

Effort variability-

The effort applied in the interaction service the customers are doing depends on the effort they

have. In the paramount industry, customers have been putting more effort in making queues,

waiting for an hour to be served since they have that interest and they consider the service of the

industry since they produce food of high quality (Dunn et al, 2018). This effort influences the

cost and quality of service being engaging directly or for other patrons indirectly.

The carryout order

Customers order their food in person and carry it to eat it in another place out of the restaurant.

There are ten percent carry out orders in the paramount industry, whereby the manager – Michael

Conlon was given an idea of delivering food using carryout orders. This has increased the

efficiency and profitability of the business. This industry has kept its pace since the 80s with the

development of technology where it began with computers and then mobile phones. In the 21st

century, there is an easier communication network and this has led to the development and

growth of the industries. Customers are being served at the doorstep. This action has reduced the

footprints whereby there are fewer movements and the delivery cost is not that expensive.

Customers use online applications to order their food. This has been an essential thing to many
Paramount 8

people all over the world. Different industries advertise their products online which attracts

customers.

In the paramount delivery, considering the ten percent persons among those who pay their meals

and eat in the restaurant has brought benefit in the industry. Michael Conlon suggested that if the

operations are adjusted, the dine-in customers will be considered and a business plan should be

taken to make the right decision. The paramount manager suggested that the carry-out order will

be allowed but will not be actively promoted so that he could deliver to his diner in guest the best

as always, an experience. He wanted to balance both sides, creating room for earning and profit

maximization.

Business motivation

A carryout order can be of benefit in motivating employees in the business. There is several

employee’s motivation brought by the carrying out orders: better handling of the uncertainty-

this is where the employees are engaged in business decision making where they feel confident

in whatever they tackle, employees get the morale since they know the preferences and taste to

their customers they serve. Employees are also motivated with perk meals which include: A

morning treat - A hot drink is served to the remote workers during the working hour. It is

advisable to allow the employees to order their morning favorite treat be it bagels, muffins, or

caffeine fix, which will motivate them to start the day well. If one of the kinds of stuff is

celebrating something essential, make them feel valued despite not being in the milestone office.

This is the best way to motivate the workers when they are celebrated their success.

In the new service of ordering carryout meals, employees should be involved in solving the

problems that could occur during the delivery. Since customers are mostly close to the
Paramount 9

employees, there is a higher chance for them to understand the problem being faced by the

customers and raise the issue to the management. By considering their skills, they become

motivated and do their work effectively.

The decisions of the management

The advice the manager of the paramount diner should be given is to allow more carry

orders and fewer restaurant seating services. This will reduce the working labor of the employees

in serving the queuing number of people but with the carry out delivery, food is parked into the

takeaway dishes and employs some other employees to be delivering at homes. The online order

will be more efficient since customers will get the menu from the application and make their

orders. The business plan should also be made to ensure everything is well operated. There are

many advantages of ordering service which include: making the process of ordering easier,

where customers make a call and order from the restaurants for a carryout order then they wait

for the preparation and delivery of food.

The management can create an app or website that will be used in the process of

ordering in an easier way to the customers. It is advisable to monitor the real-time expenses

incurred; this gives true and accurate information about the flow of cash in the business. By

comparing the cost used to prepare the order and the cost incurred when delivering to the

customer, all of this helps in tracking the profitability of the business. Best customer data, the

ordering of mobile should be convenient, ordering online enables customers to make orders

anytime. The paramount diner is a developed and known industry where quality products are

produced. The manager should consider the ordering of carrying out the delivery. In operational

management theory, the managers are the risk-takers; Michael Conlon being a manager in the

paramount diner should allow the carry-out order whereby he should involve his colleagues. In
Paramount 10

the paramount diner, the carry-out order is at 10% percent of the served customers. Despite this,

the carry-out order is bringing profit into the restaurant. This decision will help the organization

to minimize queuing and reduce congestion in the restaurant serving space.

Business opportunities are created when carryout orders are enhanced, this is seen when a

restaurant employs new workers to deliver meals to their customer’s residents. In the paramount

diner, they are used to do the dine-in services, if the managers use the carryout order which

serves a large group of customers in a day. Carry out orders will help the restaurant reach more

customers, this is because the customers need to do is order through the website, and the meal is

delivered to them.
Paramount 11

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