Group 6 - Pizza Now!

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PN!
OUR PRODUCT
Our delicious, highly customizable pizzas are :
• Made-to-Order: customers choose exactly what sauces,
cheeses, and toppings they want, and in what quantities
• Weigh-and-Pay: after all of the toppings are added, the
pizza is weighed to determine the final price
PN!
OUR MISSION:
We pledge to provide personalized pizza pronto! At
Pizza Now! the customer is the head chef, and our
qualified employees are trained to prepare highquality, reasonably-priced and ready-to-eat pizza for
local college communities along the Main Line.
PN!
CORPORATE STRATEGY
Fast food pizza is a catch-all product that appeals to the
diverse subgroups of the “Main Line”
Lower-middle class neighborhoods
4 “driving” colleges and numerous
grammar and high schools
Affluent suburbs
PN!
CORE COMPETENCIES
Customer empowerment
High level of customization and client-centric
culture
Novelty
“Weigh-and-pay” pizza
Added dimension to the dining experience
Quality ingredients
Highly trained employees
Core functions that reflect our mission
PN!
MARKET ANALYSIS
The primary target market for Pizza Now is undergraduate and
graduate students, ages 18-25.
School
Size
Tuition
• Four Colleges in the proposed
Bryn Mawr
1,300 $56,730
geographic area with over
Haverford
1,198 $59,446
15,000 total students
Rosemont
903 $39,950
Villanova
10,626
$55,670
The secondary target market is comprised of the local resident along
Lancaster Avenue, the area typically referred to as the “Mainline.”
• The average annual household income in this area is $144,500
PN!
COMPETITIVE PRIORITIES
• Cost: reasonable gourmet fast; food prices minimum $6 flat rate
plus $0.50 per ounce of added toppings
• Quality: consistent quality
• Time: quick lead time; order numbers given to combat queuing
• Flexibility: unmatched variety and customization
PN!
PN!
Create Your Own!
Step 1: Choose your Crust
Step 2: Throw Down Sauce
-Tomato
-Marina
-Olive Oil
-Creamy Caesar
-Alfredo
-Vegan White
-Traditional
-Whole Wheat
-Flat Bread
-Deep Dish
-Gluten-Free
Step 3: Spice it Up with Toppings
-Cheese: Mozzarella, Cheddar, Parmesean, Jack, Swiss, American, Blue
Provolone, Nacho, Asiago
-Meats: Pepperoni, Sausage, Beef, Chicken: grilled or cutlet, Ham,
Meatballs
-Veggies: Lettuce, Spinach, Hot Peppers, Roasted Red Peppers,
Cucumbers, Carrots, Broccoli, Celery, Zucchini, Tomato,
Squash, Eggplant
ALL COOKED TO PERFECTION!
OPERATIONS STRATEGY
• Line Process:
dough  sauce cheese toppings weigh station
• Assemble-to-order
• High customer involvement
• Hybrid office classification
on the customer-contact
matrix
• Low resource flexibility, low
capital intensity, moderate
capacity to adjust to demand
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INPUTS FROM SUPPLIERS
PizzaNow!
Fresh Ingredients
• Need suppliers that can handle the variety and dynamic
needs of our stores
• Dough, vegetables, meats, cheeses, toppings, sauces and
beverages
Utensils
• Utensils and other auxiliary food service products such as
forks, knives, napkins, cups, and straws
• Must be delivered in a timely and specific fashion
PN!
EQUIPMENT AND TOOLS
• Large counter space
• Refrigerator
• Sanitation materials
• Flash ovens
• Grill for toppings
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SUPPLIER SELECTION
• Reputation for quality control and
fresh products
• Proven track record of delivering top
quality products on schedule and at
a low cost
• Offers organic products
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QUALITY STRATEGY
• Rigorous acceptance sampling for all procured raw materials
• Lean Quality Strategy
• Employee training to reduce time and material waste
• Streamlined movements at assembly line, speaking points
• Six Sigma strategy for inventory control
• Meticulous documentation by employees at day’s end
• DMAIC approach strives for perfect order amount
• Standardized ordering process (i.e. repeating orders back to
customers)
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SUPPLY CHAIN INVENTORY MANAGEMENT
• Suppliers
• Sysco, an established player in
the food industry
• Independent local farms:
• Cayuga Pure Organics,
Lancaster Farm Fresh Coop
and Sweet Stem Farm
• Continuous Review
• Accounts for perishability
Continuous Review System
characteristics
demand / time
Ordering and setup cost (S)
Holding Cost (H)
EOQ
Lead Time (L)
Stdev of demand per unit of time
expected demand during lead time
Stdev of lead time
stdev of demand during lead time
Cycle-service level
70
$20
$5.00
409.8780
2
10
140
0
14.1421
95%
lot size (Q)
safely stock (SS)
reorder point (ROP)
50.00
190.0000
Expected Annual Cost
$2,299.39
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DEMAND MANAGEMENT
Pizza Slices Per Year Per Person
Target Population
Total Pizza Demand
46
25,000
1,150,000 slices
Market Share
Number of Slices Per Week
Number of Slices Per Day
9%
1990.384615
284
Customers Per Week
Monday
125
Tuesday
130
Wednesday
150
Thursday
200
Friday
250
Saturday
300
Sunday
250
• Projected customers per week: 1,405
• Initial estimations derived from market research
and the judgment of management
• Once the business is up and running, we plan to
employ more sophisticated forecasting
techniques
PN!
Thanks!
ANY QUESTIONS?
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