OM Group Assignment Taco Bell

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Q1) Draw a diagram of the process using the format in exhibit 9.5 The diagram above shows the process by using a service blueprint drawing.The line represents the line of visibility and the items above the line are things that the customer can see and the items below or behind the scenes activities. Q2) Consider a base case where a customer arrives every 40 seconds and the customer service champion can handle 120 customers per hour. There are two Food Champions, each capable of handling 100 orders per hour. How long should it take to

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Transcript of OM Group Assignment Taco Bell

  • Q1) Draw a diagram of the process using the format in exhibit 9.5

    The diagram above shows the process by using a service blueprint drawing.The line

    represents the line of visibility and the items above the line are things that the customer

    can see and the items below or behind the scenes activities.

    Q2) Consider a base case where a customer arrives every 40 seconds and the

    customer service champion can handle 120 customers per hour. There are two Food

    Champions, each capable of handling 100 orders per hour. How long should it take to

  • be served by the restaurant (from the time a customer enters the kiosk queue until her

    food is delivered)?Use queuing model to estimate this?

    Ans) Following information was given when considering the question.

    A customer arrives every 40 seconds

    The customer service champion can handle 120 customers per hour

    There are two Food Champions, each capable of handling 100 orders per hour

    The queuing model below shows the calculations to answer the question.

    = Arrival Rate

    = Service Rate

    S= Service Champions= 120 customers per hour

    F= Food Champions= (100*2) = 200 customers per hour

    Average total time spent by customer in system

    Calculation using model 1:

    Ls= Average number in system

    Ws=Average total time in system (including time to be served)

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    Using Model 3 to calculate total time:

  • After looking at the calculations, it shows that it should take 152.8 seconds to be served

    by the restaurant.

    Q3) On average, how busy are the customer service champions and the two food

    champions?

    Ans) =Ratio of total arrival rate to service rate for a single server

    Looking at the percentages above, it can be seen that the Customer Service Champion

    is busier than the Food Champions. This is due to the fact that there are two Food

    Champions and only one Customer Service Champion.

    Q4) On average, how many cars do you expect to have in the drive-thru line? (Include

    those waiting to place orders and those waiting for food.)

    Ans) In order to calculate the number of expected cars to have in the drive-thru line, we

    will use the equation shown below:

    Lq=Average number waiting in line

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    Customer

  • Q5) If the restaurant runs a sale and the customer rate arrival increases by 20%, how

    would this change the total time expected to serve a customer? How would this change

    the average number of cars in the drive-thru line?

    Ans) Average total time spent by customer in system

    Calculation using model 1:

    Ls= Average number in system

    Ws=Average total time in system (including time to be served)

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    Using Model 3 to calculate total time:

    With a 20% sale, it shows that the average number of customers would increase from

    3.82 to 10.17 customers; this is a 2.66 to 1 ratio. With this increase, the expected total

    time would be expected to increase and it shows that it will increase from 152.8

    seconds to 339 seconds, over 3 minutes more than before. With changes in the

    process, Taco Bell will experience a significant difference in the total time.

    Calculating the average number of cars in the drive through with sale increase:

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    As with the increase in time, the increase of average customers waiting in line increased

    as well. This number increased from 2.62 customers wait to 8.73 customers waiting.

    This is over three times as much as before.

    Q6) Currently, relatively few customers(less than %) order the crunchwrap supreme.

    What would happen if the restaurant ran the sale, demand jumped on the crunchwrap

    supreme and 30% of the orders were for this item? Take a quantitative approach to

    answering this question. Assume that the customer service champion never helps the

    food champions and that these two processes remain independent.

    Ans) (Assume that the Customer Service Champion never helps the Food Champions

    ad that these two processes remain independent).

    It was given in the reading of the case that a Crunchwrap supreme takes twice

    as long as anything else to make. If 30% of sales were Crunchwrap Supremes you can

    expect the average wait time to increase as well. Assuming that with the 20% sale, the

    same amount of customers came to Taco Bell as before (108 customers per hour).

    Knowing that 30% of sales are going to be Crunchwrap Supremes, this means that

    70% of orders will go through the Food Champions and 30% of orders will go through

    the Service Champions. The calculations below show the increase in average wait time

    due to the Crunchwrap Supreme taking longer to make.

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    but it was mentioned that it takes twice as long as any normal item therefore:

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    Q7) For the type of analysis done in this case, what are the key assumptions? What

    would be the impact on our analysis if these assumptions were not true?

    Ans) After looking at the calculations that these models have provided, it can be seen

    that there are a couple of different assumptions that can be made. The first assumption

    is that things are not always solved by using just one step of the model or even by using

    all three steps. Depending on the situation and the type of problem, this will help to

    determine what model to use. These models are very useful and can be used to guide

    companies into great success regarding, past, present and future data of the company.

    I do not find that these models are the easiest thing to grasp however, they are not

    impossible and help to teach a good lesson. One major assumption that the calculations

    show are the large impacts that a 20% sale would have. The amount of customers

    would increase drastically. If Taco Bell did not do something about the number of

    employees or the process they were running they could have huge delays in turnaround

    time. If these assumptions were not true and Taco Bell acted on them as they were,

  • hiring more people or changing the process, this could have major financial impact on

    them. Companies must ensure that the assumptions made by the models are accurate

    and any actions taken are taken with caution.

    Q8) Could this type of analysis be used for other service-type businesses? Give

    examples to support your answer.

    Ans) Yes, this service-type business could be used in many different types of

    businesses. One example could be a store in the local mall. The service of selling

    clothes and helping customers find the right sizes and styles is the service that can be

    seen by the people. There would be activities such as stocking shelves and folding

    clothes that would not be seen by the customer. Impacts of sales, time of customers

    waiting in line to pay and the overall time the customer was in the store could be

    calculated. This type of analysis could be used in several different situations.