Case:ThePizzaConnection

ThiscasewaspreparedbyDr.BrookeSaladin,WakeForestUniversity
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DaveCollierownsandoperatesThePizzaConnectioninOhio.Therestaurantisafranchiseofa largenationalchainofpizzarestaurants;theproductandoperationsaretypicaloftheindustry. As picture below shows the facility is divided into 2 areas: customer contact and pizza production. Customersenterthefacilityandwaittobeseatedbyahostess.Inthecaseofacarryoutorder, thecustomergoesdirectlytothecashieratthefrontofthefacilitytoplaceanorderortopick upapreviouslyphonedinorder.Dineincustomersareservedbywaitersandwaitresses;upon completionoftheirmealandreceiptofthecheckfromtheserver,theyproceedtothecashier topaytheirbillandleave.Duringpeakhoursatlunchanddinner,thecashiersareabecome crowdedwithcustomerswaitingforcarryoutordersanddineincustomerstryingtopaytheir bills. Thepizzaproductionareaissomewhatofahybridlayout.Majoroperationsthatcomprisethe pizzaproductionprocess,suchasthepreparationtasks,baking,andthecutandboxtasks,are groupedtogether.Theseindividualworkcentersarearrangedinaflexibleflowpatternaround theproductionarea. Historically,Davesoperationhasbeenverysuccessful,benefitingfromtheriseinpopularityof pizzathatsweptacrossthecountryduringthepastfewyears.Tophelptakeadvantageofthis trend,thefranchisershomeofficeprovidedcoordinatednationalandregionalmarketingand advertising support. It also provided strong product development support. This resulted in a newlineofspecialtypizzasdesignedtoexpandpizzasmarketappeal. Recently,however,Davehasnoticedadeclineinsales.Overthepastfewmonthsthenumber ofcustomershasbeendecliningsteadily.Afterdoingsomeresearch,hecametothefollowing conclusions,whichhefeltexplainedthedeclineinsales. To begin with, customer demand had changed. Providing highquality pizza at a reasonable price was no longer enough. The customers are now demanded speed, convenience, and alternativediningoptions.Iftheyweredineinpatrons,theywantedtobeabletogetin,eat, and get out quickly. Phonedin, carryout customers wanted their order ready when they arrived. Also, restaurant parties were a growing trend. Little league baseball teams, youth

soccer teams, and birthdays all had been part of a growing demand for party space in restaurants. Besidesthesechangingmarketdemands,Davehadseencompetitionrisingveryfiercelyinthe area. Dave wondered how he should respond to what he had learned about his market. He Page|2 thoughtthatareconfigurationoftherestaurantslayoutwouldenablehimtoaddresssomeof thesechangingcustomerdemands.

Required 1. Reconfigurethelayouttorespondtocustomersdemandsforspeedandconvenience. 2. ExplainhowyournewlayoutaddressestheissuesthatDaveidentified. 3. Howcantheeffectivenessofthisnewlayoutbemeasured?