Pizza Hut Delivery! An Operational Analysis of the Delivery System Asuncion, Dalman, Doromal, Dy, Generoso, Mejia, Ong May 11, 2010

Overview, Process 2 main areas – Customer relations station – Actual Pizza Hut branch

CRS Customer info – first information that is automatically asked is the customer’s phone number – If the customer has previously used the service, the system will automatically recognize the phone number then proceeds to take down the customer order, verifies that all order is complete and correct, and informs the caller the total price. If not, the process repeats itself

CRS If new customer – call back after 2-5minutes to verify the customer information and order Order time is targeted at 2 minutes or under

Actual Pizza Hut Branch electronic call order slip is received by the branch and is automatically printed out – pre-order employee monitors these requests pre-order team – assembles the basic ingredients of the pizza – prepare time is targeted at 2 to 2 ½ minutes tops

Actual Pizza Hut Branch “Make Pizza” stage – oven for over 5 to 5 ½ minutes tops – then cut and dispatched, including cutting the pizza into slices, packaging it into the appropriate box and sealed, assembling the other orders (i.e., a liter of soda), and all the condiments that go with it done in 3 ½ minutes or less

Actual Pizza Hut Branch package is then given to the delivery personnel who take the pizza to the desired location The total process of making the pizza once the call order slip has been received to actual delivery should be 30-45minutes or less.

Delivery When the delivery person reaches the destination – protocol mandates that he presents each order to the caller – If everything is satisfactory, customer proceeds to receive everything and pays for the food cash, EPS, or credit card

9 CUSTOMER CUSTOMER SERVICE CENTER PIZZA HUT BRANCH Total Cycle Time: Min.: ___min Max:___ min Ave.: ___min Total Distance Traveled: Min.: ___m Max.: ___m Ave.: ___m START Call A A Call routed to CSR CSR gets contact details and order First time caller? B C Call verify N Y B Call Order Slip C Prepare time Make Pizza Cutting and Dispatching Delivery Delays? D Branch Mgr coordinates N Y C D Correct and in good condition? E N Y E END Order complete and correct? A N Y O.R. presented to customer Receives and pay

Mudas 1.Delay in taking down the order – Communication- related problems

Mudas 2.Delay in making the pizza – Different promos presents several difficulties for personnel to produce i.e. sausage- filled crust w/ cheese dips

Mudas 3.Delay in delivery – motorvehicle may not have enough gasoline – heavy motorist traffic

Mudas – delivery man may not have enough “load” or credits for his cellphone to call if: He could not find the place of delivery He is outside the customer’s house but there is no one to receive the food delivery

Mudas there is no definite queuing system for assigning who will deliver the food next

Countering the Mudas With regards to taking the customer’s order – ask clarificatory questions – ask the customer to speak more clearly With regards to making the pizza – Strategize the work table/environment. – Study the overall lay-out and experiment with different arrangements. **these two countermeasures are not corrected with regards to the flow of the system

Countering the Mudas With regards to the delivery: additional steps or sub-operations along with the overall flow – rider is already assigned by the time the orders have been cooked – motorcycle has already been checked and is ready for the next departure – rider has enough cellphone credits to make a call and text – rider knows the route to the place of delivery

17 CUSTOMER CUSTOMER SERVICE CENTER PIZZA HUT BRANCH Total Cycle Time: Min.: ___min Max:___ min Ave.: ___min Total Distance Traveled: Min.: ___m Max.: ___m Ave.: ___m START Call A A Call routed to CSR CSR gets contact details and order First time caller? B C Call verify N Y B Call Order Slip and assign a rider for the delivery C Prepare time while rider checks motorbike, phone, and route Make Pizza Cutting and Dispatching Delivery Delays? D Branch Mgr coordinates N Y C D Correct and in good condition? E N Y E END Order complete and correct? A N Y O.R. presented to customer Receives and pay