Six Sigma In Hospitality_Menu Engineering
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Six Sigma in Hospitality : Menu Engineering There have been numerous debates on the extent of applicability of Six Sigma in Services. Hospitality is on such services oriented industry which is a critique’s delight to support the statement : Six Sigma is not for services. World leaders in Six Sigma Motorola & GE has in the past vouched for the opportunity they lost through not applying Six Sigma in their services divisions and also stated the savings they made later through implementation. Two interesting aspects of Hospitality industry : People Intensive operations That a people intensive operation can attain Six Sigma levels has already time and again proved by Mumbai Dabbawalas(Attained 7 Sigma levels) Understanding of the staff(predominantly not highly educated) & application of the concepts This has already changed with every new joinee being a graduate from Hotel Management Institutes In this discussion, let’s take an example of Menu Engineering at Restaurants. It has been around for a very long time. But, the way it is done has been rapidly evolving. Various things that influence this process includes Cost of making, Availability, Profitability, Popularity, Exclusivity e.t.c and more… How it is done The simplest way of making this exercise most effective is to set up the system to capture the numbers and let it do the best it does : Delivering data based recommendations, which further needs to be ratified from the perspectives a mechanical system misses and finalize. A simple Matrix looks like this : Dish Name Pri ce Port ions sold Portions/ Day Cost or makin Profitability Popularity
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A artcile on how Hospitality Industry is utlising Six Sigma tools in making better decisions...
Transcript of Six Sigma In Hospitality_Menu Engineering
Six Sigma in Hospitality : Menu Engineering
There have been numerous debates on the extent of applicability of Six Sigma in Services. Hospitality is on such services oriented industry which is a critique’s delight to support the statement : Six Sigma is not for services. World leaders in Six Sigma Motorola & GE has in the past vouched for the opportunity they lost through not applying Six Sigma in their services divisions and also stated the savings they made later through implementation. Two interesting aspects of Hospitality industry :
People Intensive operations
That a people intensive operation can attain Six Sigma levels has already time and again proved by Mumbai Dabbawalas(Attained 7 Sigma levels)
Understanding of the staff(predominantly not highly educated) & application of the concepts
This has already changed with every new joinee being a graduate from Hotel Management Institutes
In this discussion, let’s take an example of Menu Engineering at Restaurants. It has been around for a very long time. But, the way it is done has been rapidly evolving. Various things that influence this process includes Cost of making, Availability, Profitability, Popularity, Exclusivity e.t.c and more…
How it is done
The simplest way of making this exercise most effective is to set up the system to capture the numbers and let it do the best it does : Delivering data based recommendations, which further needs to be ratified from the perspectives a mechanical system misses and finalize.
A simple Matrix looks like this :
Dish Name Price
Portions sold
(Month) Portions/Day
Cost or making(in Rs.) Profitability Popularity
AMOUNT % % To Do French Fries 200 1080 36 28.5 171.5 0.8575 3.00%
Shoot-em-Up
Chinese Tomato
Soup 225 1260 42 18.8 206.2 0.916444 3.50% STARSTandoor Chicken 525 390 13 46.2 478.8 0.912 1.08% Re-freshButter
Chicken 345 360 12 49.5 295.5 0.856522 1.00%Faded Stars
The matrix assists in the scientific decision making purely on numbers & VOC.
The “plan of action” for each of the categories : Shoot-em-up/ Stars/ Re-fresh & Faded Stars is as mentioned in the matrix below.
Why this has succeeded and will succeed. No business that aligned with VoiceOfCustomer (VOC) ever went broke.
Much more customised & exhaustive matrixes are available & can be made to suit specific needs. Where there was will, there was always a way. Once the first walked, rest followed...
(Your feedback will be appreciated : [email protected] / [email protected] )
