How and where is variability likely to occur in the diners operations? How will variability affect the performance of the Olivers Diner operational system as well as the customers experience?

Page 2 9B16D 008 Page 3 9B16D 008 EXHIBIT 1: RESTAURANT ACTIVITIES AT OLIVER'S DINER Number of Staff August 26, 2020 Resource Host/Cashier Servers Chefs Bussers Average Time to Perform 2 minutes per table 8 minutes per table 2.5 minutes per meal 2 minutes per table Oliver Peters spent 50 per cent of his time in the kitchen preparing meals. craft beers and Ontario wines. The diner's retro theme dcor and comfort food menu immediately made ita popular spot for people looking for tasty meals at a reasonable cost. Hours of operation were 11 a.m. to 2 p.m. for lunch and 5 p.m. to 9 p.m. for dinner. The diner had 25 tables: some tables for two and larger tables that could accommodate up to six customers. Oliver employed 10 people at the diner: one host/cashier, four servers, three chefs, and two bussers. He spent 50 per cent of his time in the kitchen helping to prepare meals, and the remainder of his time helping to coordinate front-of-restaurant activities with staff and customers. The host was responsible for seating customers and providing them with a menu, and wine and beverage list. The host also explained the daily specials. The server took orders for drinks, and typically took food orders immediately after delivering the beverages. Customer meal orders were written on a form and delivered by the server to the kitchen, where it entered a queue of orders waiting for preparation. The server would check with customers usually about 10 to 15 minutes after serving the food to make sure that everything was in order. After clearing the plates, the server would ask whether anyone wanted to try any of the freshly baked delectable pics that only Oliver's Diner offered. Once diners completed their meals, the server would present the bill and ask that they pay the host at the front counter, using cash, debit, or credit card. One of the two bussers would then dean the table, and prepared it for the next group of customers. Source: Created by case authors. EXHIBIT 2: AVERAGE WEEKEND VOLUMES AT OLIVER'S DINER Time Average Daily Number of Meals Served 110 During his time at college, Oliver had taken a course on restaurant operations which he had found particularly useful. For the first two months of operation, Oliver tracked customer volumes, and the time spent by staff to perform their tasks. Exhibits 1 and 2 provide a summary of the data Oliver had collected. He estimated that it took one minute for the host to seat customers, and one minute to handle payment at the end of the meal, for a total of two minutes. The servers had multiple touch points with the customers during their dining experience, but Oliver estimated that it took aight minutes overall to serve one table. Meals took an average of 10 minutes to prepare, and chefs could work on four meals simultaneously, representing an average of 2.5 minutes per meal Cleaning a table and setting it up for the next group of customers took bussers about two minutes. 11:00 am - 12 noon 12 noon - 1:00 p.m. 1:00 pm - 2:00 pm 5:00 pm - 6:00 pm 6:00p.m. - 7:00 pm 7:00 pm - 8:00 pm 8:00 p.m. - 9:00 pm Source: Created by case authors. For use only in the course Operations Management at California State University - Fulton taught by Dr. Asad Shafiq from August 20, 2018 Use outside these parameters is a copyright vidation a copyright violation s For use only in the course Operations Management at California State University - Fullerton taught by Dr. Asad Shafiq from August 20, 2018 to August 26, 2020 Use outside these pasamo The previous Saturday had been a typical weekend night. By 6:30 p.m., a lineup had formed outside, and some, who had already waited for 20 minutes or longer, were discussing leaving for another restaurant. Meanwhile, meal orders had piled up in the kitchen, with approximately 20 orders waiting in the queue. When his diner first opened, Oliver had hoped to be able to tum around a table in 60 minutes or less. However, his current estimate was that it took 75 minutes from the time that diners sat down to when their table was ready for the next group of customers. EVALUATING OPPORTUNITIES As Oliver poured a cup of coffee, and stared at the data he had collected, he wondered where opportunities existed to improve his operations and the customer service experience. He was considering several improvements. Firstly, to address customers' queue time concerms, Oliver was considering two possibilities: investing in restaurant pagars, which would allow those waiting for a table to be able to peruse other nearby Main Street retail establishments, and installing a display board that would inform those in the queue of the diner's daily specials, available freshly baked pies, and other useful information Secondly, to climinate the need to wait for a table, Oliver was reconsidering his current policy of not taking reservations. Making changes to staffing levels represented a third option given the longer than expected time to turn over tables. Fourthly, to further reinforce the diner's retro dcor, Oliver was considering replacing the individual scating with upholstered or wooden booth bench seating. Oliver hoped to quickly identify specific areas in his operational system that could be further improved on to support the long-term Success of his new diner. Page 2 9B16D 008 Page 3 9B16D 008 EXHIBIT 1: RESTAURANT ACTIVITIES AT OLIVER'S DINER Number of Staff August 26, 2020 Resource Host/Cashier Servers Chefs Bussers Average Time to Perform 2 minutes per table 8 minutes per table 2.5 minutes per meal 2 minutes per table Oliver Peters spent 50 per cent of his time in the kitchen preparing meals. craft beers and Ontario wines. The diner's retro theme dcor and comfort food menu immediately made ita popular spot for people looking for tasty meals at a reasonable cost. Hours of operation were 11 a.m. to 2 p.m. for lunch and 5 p.m. to 9 p.m. for dinner. The diner had 25 tables: some tables for two and larger tables that could accommodate up to six customers. Oliver employed 10 people at the diner: one host/cashier, four servers, three chefs, and two bussers. He spent 50 per cent of his time in the kitchen helping to prepare meals, and the remainder of his time helping to coordinate front-of-restaurant activities with staff and customers. The host was responsible for seating customers and providing them with a menu, and wine and beverage list. The host also explained the daily specials. The server took orders for drinks, and typically took food orders immediately after delivering the beverages. Customer meal orders were written on a form and delivered by the server to the kitchen, where it entered a queue of orders waiting for preparation. The server would check with customers usually about 10 to 15 minutes after serving the food to make sure that everything was in order. After clearing the plates, the server would ask whether anyone wanted to try any of the freshly baked delectable pics that only Oliver's Diner offered. Once diners completed their meals, the server would present the bill and ask that they pay the host at the front counter, using cash, debit, or credit card. One of the two bussers would then dean the table, and prepared it for the next group of customers. Source: Created by case authors. EXHIBIT 2: AVERAGE WEEKEND VOLUMES AT OLIVER'S DINER Time Average Daily Number of Meals Served 110 During his time at college, Oliver had taken a course on restaurant operations which he had found particularly useful. For the first two months of operation, Oliver tracked customer volumes, and the time spent by staff to perform their tasks. Exhibits 1 and 2 provide a summary of the data Oliver had collected. He estimated that it took one minute for the host to seat customers, and one minute to handle payment at the end of the meal, for a total of two minutes. The servers had multiple touch points with the customers during their dining experience, but Oliver estimated that it took aight minutes overall to serve one table. Meals took an average of 10 minutes to prepare, and chefs could work on four meals simultaneously, representing an average of 2.5 minutes per meal Cleaning a table and setting it up for the next group of customers took bussers about two minutes. 11:00 am - 12 noon 12 noon - 1:00 p.m. 1:00 pm - 2:00 pm 5:00 pm - 6:00 pm 6:00p.m. - 7:00 pm 7:00 pm - 8:00 pm 8:00 p.m. - 9:00 pm Source: Created by case authors. For use only in the course Operations Management at California State University - Fulton taught by Dr. Asad Shafiq from August 20, 2018 Use outside these parameters is a copyright vidation a copyright violation s For use only in the course Operations Management at California State University - Fullerton taught by Dr. Asad Shafiq from August 20, 2018 to August 26, 2020 Use outside these pasamo The previous Saturday had been a typical weekend night. By 6:30 p.m., a lineup had formed outside, and some, who had already waited for 20 minutes or longer, were discussing leaving for another restaurant. Meanwhile, meal orders had piled up in the kitchen, with approximately 20 orders waiting in the queue. When his diner first opened, Oliver had hoped to be able to tum around a table in 60 minutes or less. However, his current estimate was that it took 75 minutes from the time that diners sat down to when their table was ready for the next group of customers. EVALUATING OPPORTUNITIES As Oliver poured a cup of coffee, and stared at the data he had collected, he wondered where opportunities existed to improve his operations and the customer service experience. He was considering several improvements. Firstly, to address customers' queue time concerms, Oliver was considering two possibilities: investing in restaurant pagars, which would allow those waiting for a table to be able to peruse other nearby Main Street retail establishments, and installing a display board that would inform those in the queue of the diner's daily specials, available freshly baked pies, and other useful information Secondly, to climinate the need to wait for a table, Oliver was reconsidering his current policy of not taking reservations. Making changes to staffing levels represented a third option given the longer than expected time to turn over tables. Fourthly, to further reinforce the diner's retro dcor, Oliver was considering replacing the individual scating with upholstered or wooden booth bench seating. Oliver hoped to quickly identify specific areas in his operational system that could be further improved on to support the long-term Success of his new diner