Ace Institute of Management

eMBA-Fall 2010, 2nd Semester

Subject: Operations Management

Group Case Study #2:

100 YEN SUSHI HOUSE

Submitted to: Mr. Bishal Shrestha Submitted By:

Ananta Mallik

Nirmal Bahadur Raut

Rina Maharjan

Biraj Pradhan

Date: September 16, 2010

Q.2 What features differentiate 100 Yen Sushi House and how do they create a competitive advantage?

Answer:

Though there are many fast food restaurants in Japan, but due to some remarkable product and service differentiation, 100 Yen Sushi House has created it’s unique brand name of “most productive operation in Japan”.

Here are some major differentiating features:

1. Production-Line Approach:

In 100 Yen Sushi House the customers are always included in the production line. 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 (without need of waiter). This creates a good competitive advantage for them.

2. Pull approach

Pull system applied by the company instead of Push system also giving competitive advantage to 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.

3. Cozy Environment:

The very cordial environment with greetings by every employee of the restaurant while entering and going out gives a different filling to customer. Active participation of all the employees, including the owner makes the environment free cozy and giving competitive advantage.

4. Price

The flat 100 Yen cost for every item (even for costly item like salmon) is also giving them competitive advantage. There idea to vary the quantity not the price is the major differentiation. Similarly their simple process of customer billing by just counting the used plates and multiply by 100 is also a very unique and competitive approach.

5. JIT and Quality control system

The company’s 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 for quality is also a major differentiating factor for competitive advantage.

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6. Human Resource

The labor-intensive operation, involvement of both worker and owner in the total operation from greeting the customer to serving what is ordered and jointly working as a family member can also be considered as differentiating factor for competitive advantage.

Q.3 How has the 100 Yen Sushi House incorporated the just-in-time system into its operations?

Answer:

The 100 Yen Sushi house has incorporated the Just-in-Time (JIT) system throughout its day

to day work process. For example, it has adopted ‘just-in-time’ inventory control system.

The company has an agreement with the fish vendor to deliver fresh fish several times in a

day so that materials arrive just in time. This helps in cost reduction in purchasing the

refrigerators for storing the inventory as well as cost decline in inventory. Also, it provides

more space available for customers by cutting down of refrigerators space.

As Sushi is not made to order, due to variation in taste of customers there is always some

waste. But the trade-off between the time that is saved and the waste can be turned to the

management's advantage by giving careful attention to customer demand. This also implied

that management is aware of quality product and responsible for hygienic food. For

example, all the employees are charged with the task of monitoring the prepared sushi and

removing the old sushi dishes from the serving train after 30 minutes so that sushi quality

will maintained and always fresh.

Moreover, they use to put right number of Sushi’s plate at right time (based on continuous

observation) on the conveyor belt. This is also an example of application of JIT principle

known as “Kanban”. They have tradition of chorus of the ‘iratsai’(welcome) and ‘Arigato

Gosaimas’(thank you). It also signals about the time of customer’s coming and leaving. So,

they know when they need to speed up or down their throughput in making Sushi, another

example of JIT.

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In summary, the 100 Yen Sushi house has very well maintained the Just-in-time (JIT)

system into its operation. It is their simplicity & common sense, well planned service

process, consciousness & effort of all employees for quality service and management’s pro-

activeness to meet customer’s demand are the major factors which are proving their

successes fullness of JIT implementation.

Q.4 Suggest other services that could adopt the 100 Yen Sushi House service delivery

concept.

Answer:

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. The concept is low-volume and high

varieties which gives both economic and custom advantages of continuous production. This

concept is used by Harley-Davidson where relatively few different engines, chassis, gas

tanks and suspension system are mixed to produce a huge variety of motorcycle. Likewise

the same concept is also used by fast-food restaurants as McDonald’s and Burger King

where relatively few modules like cheese, lettuce, buns, sauces, pickles, meat patties,

French fries make a variety of meals. In Nepalese context, fast food chains like Bakery

café, ND’s, Bajeko Sekuwa etc. may utilize this type of service delivery concept.

******Thank You******

Reference: Operations Management (9th Edition, by Heizer & Render) and www.youtube.com

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