Ace Institute of Management

Operations Management

Fall 2012 MBA Evening Term V Section - B

Case Analysis Report

On

100 Yen Sushi House

Submitted To:

Mr. Rabindra Silwal

Submitted By:
Alisha Sthapit Ashesh Karki Ashok Khadka

Birat Pant
Subhadra Satyal

February 28, 2013

Case Analysis on Operations Strategy at Galanz

Introduction
100 Yen Sushi House is a fast food restaurant of Japan where a customer can enjoy observing the cooks preparing Sushi can make their soya sauce as per their own choice and enjoy watching train of food revolving on the conveyer belt where a plate of Sushi is fixed at 100 Yen. Though there are many fast food restaurants in Japan, but due to some remarkable product and service differentiation, 100 Yen Sushi House has created its unique brand name of Most Productive Operation in Japan. In 100 Yen Sushi House the customers are always included in the production line which creates a good competitive advantage for them. The rate at which customers enter the restaurant, remove dishes from the food train, and leave the restaurant determines the flow of the delivery process. This allows them to match the preparation of particular foods to the demand for them, thereby eliminating waste.

Apart from that, the very cordial environment with greetings by every employee of the restaurant while entering and going out gives a different feeling to customer. Active participant of all the employees, including the owner makes the environment feel cozy therefore giving themselves a competitive edge. The companys Just-in-Time (JIT) approach to buy fresh fish several times a day without any inventory and removal of the unsold sushi plates longer than 30 minutes and careful watch by every staff attracts most of the customers.

Critical Examination
The 100 Yen Sushi House is considered the most productive operation in Japan.. However there are some factors that the Sushi House should consider.

The first issue is the just-in-time method, if inventory is delivered just-in-time to be used what happens if the inventory does not make it to the company in time to be prepared and consumed. What are the company's back-up plans if there isn't any inventory on hand?

Secondly, sanitary issues arise when the sushi dish is prepared from several hands, in other words hand-to-hand. If an employee is ill or happens to sneeze on the dish, those germs are
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Case Analysis on Operations Strategy at Galanz

transferred not only from employee-to employee but also to the customers. Another issue, say a customer goes to pick up a dish from the conveyor belt and then moments afterward decides that they no longer want that particular dish, does the company have a put back policy'? How do they discourage customers from doing this?

Within the case it stated that the sushi plates never went unsold for longer than 30 minutes, and that whenever an employee goes on a break they may eat the unsold plates or throw them away. There are two issues with this; whenever an employee goes on a break can be longer than 30 minutes, they may eat the dish an hour later and is in risk of food poisoning. And throwing away the dishes does nothing that decreasing the profit.

Ironically the company does not have a cash register, but there is a cashier. Although it may be easy to calculate a customer's bill, where does the cashier store cash? This allows the company to be vulnerable to such crimes as employee theft or armed robbery.

If someone is visiting the Sushi house for the first time, 20 plates are going around the conveyor belt and there aren't any labels to identify what any of the dishes are or what they consist of. The company has no policy to assist someone who is oblivious to sushi dishes. 1. Prepare a service blueprint for the 100 Yen Sushi House operations. 100 Yen Sushi House is located the Shizuku area of Tokyo in Japan. At the 100 Yen Sushi House, thirty stools surround a square bar with a conveyor belt that rotates plates of sushi. Expensive dishes have smaller quantities, but every plate is 100 yen. Four sushi chefs work inside the bar to produce each 100 yen plate of sushi. Owning a cash register is optional for this establishment, a patron's bill can be merely determined by counting the number of empty plates they have. Customers do not have to wait for food because sushi chefs prepare the food within sight. Sushi is fresh and not refrigerated for future use. The sushi itself is treated as an assembly line product with each chef adding their own unique touches. The sushi chefs are in close proximity to each other so they share equipment and their tasks also are highly interrelated. When there is a problem, employees attempt to prevent it from spreading to
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Case Analysis on Operations Strategy at Galanz

other processes. The owner of 100 Yen Sushi House analyzes demand, and orders several fresh fish deliveries a day. He understands that quality is proactive not reactive. The owner also has confidence that his employees take the initiative to dispose of uneaten Sushi that has been out for a while, to protect the quality of the food. Quality is a top priority for all employees, clear communication, and the sharing of duties is also very important. The 100 Yen Sushi House produces and loads the same mix of sushi plates on its conveyor belt each day. The chefs make no more or no less than what is needed. At 100 Yen Sushi House, eliminating tables, waiters, ordering, variable pricing, and the wait time associated with receiving food, increase profits for its owner, and reduces idle time for busy customers. Service Blue Print 100 Yen Sushi House Operation

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Case Analysis on Operations Strategy at Galanz

2. What features of the 100 Yen Sushi house service delivery system differentiate it from the competition, and what competitive advantage do they offer? Features: They have an ellipsoid shaped serving area in the middle of the room where inside three or four cooks were prepare sushi. They have a conveyor belt going around the ellipsoid service area like a train track with different plates of sushi. Each plate cost s 100 yen. They dont have a cash register, they cashier just counts how many plates the customer ate and then multiplies it by 100 yen. Advantages: Well for starters the owners daily operation is based on carefully analyzed information. The owner has a complete summary of demand information about different types of sushi plates, and this he knows exactly how many of each type of sushi plate he should prepare and when. Its a family owned restaurant that runs efficiently, all the workers are considered family and they focus strongly on customer service. The store uses the just in time inventory control system, they have an agreement with the fish vendors to deliver fresh fish several times a day so their products arrive just in time to be used for sushi making. The owners and workers are involved in the total operation from greeting the customer to serving what is ordered. The 100 Yen sushi house is based on simplicity and common sense rather than high technology. 3. How has the 100 Yen Sushi House incorporated the just- in-time system into its operation? 100 Yen sushi house is a small family owned business which is highly labor intensive. Very firstly the just-in-time system has been used in the business by the correct estimation of the demand of the products in the house which makes it easy for the owner to make the arrangements as per the demand. Secondly, the whole operation is based on the repetitive manufacturing principle accompanied by just-in time (JIT) and quality control system.

The application of JIT in the operation can be clearly evidenced by the limited number of refrigerators in the limited space which shows that the inventory is almost negligible with a JIT inventory control system. The JIT has been implemented in the system by entering into

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Case Analysis on Operations Strategy at Galanz

agreement with the fish vendor to deliver fresh fish several times a day so that materials arrive in a just-in time way to be used for sushi making. In addition in the sushi house the workers and their equipment are placed in such a way that sushi making is passed hand to hand rather than an independent operation. The absence of walls of inventory allows the owner and workers to be involved in the total operation, from greeting the customer to serving what is ordered. Their tasks are tightly interrelated and everyone rushes to a problem spot to prevent the cascading effect of the problem throughout the work process.

4. Suggest other services that could adopt the 100 Yen Sushi House service delivery concepts. The 100 Yen Sushi House service delivery concepts is customer service, a contribution to society, or the well-being of the community. There are many services that could adopt the Sushi service concepts.

The 100 Yen Sushi house service deliveries can be adopted in other services area which focuses repetitive type of processes. For example, it can be applied in auto-manufacturing, fast-food, household appliance etc. Likewise the same concept is also used by fast-food restaurants as McDonalds and Burger King where relatively few modules like cheese, lettu ce, buns, sauces, pickles, meat patties, French fries make a variety of meals.

In Nepalese context, this delivery concept can be applied in the fast food chain companies like Sumais Momos, KFC, Pizza Hut etc. Another one areas where 100 yen Sushi House service delivery system can be adopted is Automated Car Wash Center, which could be the emerging business in Nepal.

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