TACO BELL MOP Assignment

Submitted by: Shivam Goyal 80303130018

INTRODUCTION Taco Bell is an American chain of fast food restaurant, based in Irvin, California. A subsidiary of Yum! Brands Inc., it serves food inspired from Mexican cuisine. It is a based on the build to order and build -to stock concept. Through this case study we are trying highlight that the main motive of profit maximization is achieved through operations management.

PRODUCTION AND PROCESS With the changing time the company keeping in mind the convenience of the customers increased its point of access and reengineered its multilevel management system to Team-Managed units. The earlier system was a command and controlled organizational structure, which was change to a structure that empowered its frontline employees. This induced a sense of ownership amongst its employees and was also in line with the concept of job rotation. Thus the work load on the managers and GM reduced and they were free to increase their span of responsibilities and they instead of being command and control center became coach and trainer. The crew members at each store were trained on functions of product assembly and delivery, cash registers, dining room attendance, labor scheduling, food ordering, interviewing etc. The time limit for obtaining a basic proficiency was 60 days. Amongst the crew members a team leader was selected who was extremely high performer. The job of team leader was to assign work on the basis of aces in their places which says that during peak hours the crew members will be assigned to the jobs which they excelled and switch their jobs during off peak hours. CAPACITY The next big thing that the management did was to increase the point on access to schools, factories etc. In order to do this the increased span on responsibility was required which was obtained by empowering the crew members. All the changes that Taco Bell did were in line with the customer satisfaction and the crew members were continuously rated by customer satisfaction scores.

SUPPLY CHAIN MANAGEMENT Now coming to the supply chain of the company the flow of information in the system was very clear so that no bullwhip effect happens. The Team managed unit let the flow of information into the system in such an effect manner that there is no requirement of GM to interfere in the day-to-day functioning of the restaurant. By the use of new aged information technology flow of information was made available to all the required point at just one click. Also the crew members knew better about the day to day operations than AGMs so putting them in the decision making was comparatively better than AGMs making the decisions. Secondly the restaurants earlier had a throughput process as the customers had to wait to get their change at the window so this process was broken into two at one counter the customer gets their change and the other to get customer order.

CHANGE (NEW)

SINGLE WINDOW (EARLIER)

ORDER (NEW)

TECHNOLOGY

Flex-stations capable of making 900 tacos per hour

Bin management (kaizen)

Customer activated terminal

Implementation of new technologies, which helped in reducing various, time and cost. Technology helped in reducing the manual work like paper work, which consumes 10 to 16 hours of a manager in week. Use of ECR, MIS projects were put in place. Use of technology in most of the automobiles. GM motors resorted to high level of technology for the assembling of its product. Most of the parts of the company are outsourced from the companies like Suzuki, Daewoo. The assembling involves fine-tuning of the engine, chasi development, paint job, interior designing. The use of technology in Wal-Mart is again one of the examples. High level of technology is used in the stores. Company has software that links up its inventory levels directly with the supplier.

CERTAIN OTHER POINTS NOT DISCUSSED Since it is a food chain there has to be certain emphasis given to visual merchandising. The operations involved in visual merchandising could help in increasing the customer footfall thereby higher sales. Certain other things that the company is indulging is training of the staff that are the face of the brand. Advertisement and promotional activities are another aspect that should be looked at .The company can have its own advertisement team for which the operation systems would be different than if the company involves in outsourcing.