Application of Lean Tools in a Pizza Store

06-91-590-34

Lean Manufacturing/Process Improvement

Submitted to:Dr. Ahmed Dief, PhD, P.Eng, L.B.C

Associate ProfessorIndustrial and Manufacturing Systems Engineering

August 7th, 2014

Submitted by:

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Abstract

Lean Manufacturing is a production philosophy that considers the expenditure of resources in any aspect other than the direct creation of value for the end customer to be wasteful, and thus a target for elimination. The spectrum of the uses of Lean Manufacturing is large and is used from major companies to small convenience stores. The application of lean Manufacturing has changed and perfected through time. This project presents the application of Lean Manufacturing Tools in a Pizza store. The store that was chosen is “Pizza Pizza” which is located at at 2203 Wyandotte Avenue W. It focuses mainly on the whole process of the delivery of Pizza to the customer in store or home. The use of tools like 8 types of waste, Value Stream Mapping, Root Cause Analysis and 5S were used to study the process the store imbibes and propose places of improvements.

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Table of Contents

1. Introduction………………………………………………………………………..42. The selected Shop………………………………………………………………….4

a. Layout…………………………………………………………………….. 4b. Machine and Equipment…………………………………………………...4c. Storage System…………………………………………………………….4

3. Pizza Preparation Process………………………………………………………….54. Other Supporting System………………………………………………………….55. Problem Identification……………………………………………………………. 66. Identification of Waste…………………………………………………………… 7

a. Correction………………………………………………………………… 7b. Overproduction…………………………………………………………… 7c. Processing………………………………………………………………….7d. Conveyance………………………………………………………………..8e. Inventory…………………………………………………………………..8f. Motion……………………………………………………………………..8g. Waiting…………………………………………………………………….9h. Under Utilization of Man Power and Resources…………………………..9

7. Value Stream Mapping…………………………………………………………….98. Root Cause Analysis……………………………………………………………….14

a. Man Power…………………………………………………………………14b. Measurement……………………………………………………………….15c. Mother Nature……………………………………………………………...15d. Materials……………………………………………………………………15e. Machine…………………………………………………………………….15f. Methods…………………………………………………………………… 15

9. Application of 5S………………………………………………………………….. 16a. Sort Phase…………………………………………………………………. 16b. Simplyfying Phase………………………………………………………….16c. Sweeping Phase…………………………………………………………….17d. Standardizing Phase………………………………………………………..17e. Sustaining Phase…………………………………………………………...17

10. Recommendation…………………………………………………………………..1711. Conclusion…………………………………………………………………………1812. References…………………………………………………………………………19

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1. Introduction

Pizza Pizza is a franchise which has a total of 722 stores around the country. They sell a variety of pizzas with various toppings. They also sell fast food products such as fried chicken wings, fries, pops, sauces, garlic bread and sandwiches etc. but their main business focused on delivering quality pizzas.

2. The selected shop

For this project the store selected is the Pizza Pizza store closest to our campus located at 2203 Wyandotte Avenue W. This Franchise store is owned by Mr. Hussain who himself works in the pizza store and manages it. This store remains busy during September to April due to availability of university students. During May to August sale goes slow. The customer area of this shop is around 13 km towards east and south and 5 km towards north and west.

a. Layout

The total shop area is around 500 sq. feet. It is divided into three main sections. 40% remains for customer and 60% are used for storage and preparation of products.

b. Machineries and Equipment.

The main machineries of this shop are oven, freezer storage, freezers, storage rack, different utensils, various cutting equipment, various types of containers, different types of table chair and other furniture etc.

c. Storage system

The ingredients are temperature sensitive and need cool environment to preserve. There is a big chilled room at the back of the store. Usually the food ingredients are kept inside the

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Freezing Storage

Cooking Area

Sink

Doug

h

Order Taking

Cust

omer

sitti

ng A

rea

W/R

freezer storage area and other general stores such as boxes, other nonessentials are kept into general storage at the basement. Dry stores and POPs are stored in a small area between the Sink and Freezer compartment.

3. Pizza preparation processa. . The first step of pizza making is preparation of dough. Prepared dough is

supplied through the central supply system. Each types of pizza needs specific amount of dough. During the morning the order remains slow and usually the first delivery driver prepare the particular amount of dough for different types of pizza. Normally the owner works during the opening hours and he decides the quantity of each type dough.

b. The pizza making system follows pull system .Orders are controlled through central OPD. Whenever somebody orders the OPD receives the order and then send the same according to respected pizza pizza store based on the responsible area. After getting the order the cook starts preparing pizza. He takes the pre-prepared amount of dough and prepares the base with the dough, he then put the ingredients and toppings according to the customer order.

c. The uncooked pizza is then put into the oven and it is cooked for about 6 minutes, in the middle the cook checks the quality and arranges the specific boxes.

d. When the pizza is cooked a beep signal is given by the oven. The pizza is then brings out from the oven and put into the box. Then the pizza is sliced according to the customer instruction included in the order.

e. If the pizza is subject to deliver for pickup then it is given to the customer hands if it is ordered to deliver to the customer premises then this handed over to the delivery driver. The delivery drivers check the order and take everything according to the order. The put the pizza into specially made hot bag and deliver it to the customer end.

f. The total process from order to deliver the maximum time is allotted is 40 minutes. After 40 minutes of order customer gets the delivery free of cost. The process is shown below:

4. Other supporting system1) Supply system: All the ingredients are supplied by the central supply system. Each

Sunday detail inventory is calculated and ingredients demand is placed based on forecasted demand for the week. The amount is ordered one day earlier and weekly 3 supplies are made to the store.

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Dough Preparation Adding ingredients and toppings

Putt ing uncooked pizza into the oven Cook for 6 minutes

Place prepared pizza into box and cut into

slices

Deliver to the customer or handed over to the delivery driver for subsequent delivery.

2) Inspection and monitoring system: Central inspection and monitoring system is carried out by the corporate regularly. These inspections are both scheduled and unscheduled. Inspection report is sent to the franchisee for necessary improvement.

3) Safety System: Pizza pizza follows strict safety system and they set standard zero tolerance on safety as a corporate requirement. A detail safety instruction is displayed for all to see.

4) Cleaning system: A cleaning requirement is specified to the store and the responsibility is given to the franchisee. In this store the concern people keep clean their respective area but it is the discretion of the individual concern. Detail schedule is not prepared and there is no specific instruction as well. A cleaning culture is in place where everybody cleans whenever they gets time.

5) Ingredient replenishment system: Toppings and other ingredients are prepared for the day early in the morning and kept in specific container. The containers are kept in some order. There is a place on the cooking table for all the first hand ingredients and toppings. Pizza is made with these ingredients. Whenever some toppings become short then cook walked to the freezing room and get the concern toppings.

6) Scheduling: Usually scheduling is done by the owner himself. He prepares a schedule based on weekly forecasting. He uses his experience to do this.

7) Preparation of boxes and location: Boxes are made when the order is slow and kept closest to the oven so that prepared pizza can be placed into the box within minimum effort and time. The box area is replenished whenever it gets low.

8) Work Instruction: Most of the people working in this store are over 2 years’ experiences. Physical work instruction is not available although people know their charter of duties through practice and they follow this.

9) Work culture: The store is running with trusted employees. Owner Mr. Hussain is a total gentleman, he believes on trust rather than push and it works great.

10) Utensil/Garbage system: There is no instruction on garbage cleaning, whenever any driver gets time they clean the utensil and garbage.

11) Manpower: The store need two types of people cooks (usually 2 person at a time) and delivery driver (usually 2/3 person depending on how busy hour).

12) Training : No formal training is given whenever a newcomer join the store he has been put with an experienced person for on the job training

5. Problem Identification:

We have talked to the owner and asked him about his main problem. He is apparently happy the way things are going on. But when we asked to single out the problem for the improvement, he came out with more organized and cleaner shop. He also specifies occasional delivery and quality problem of pizza. Some time it is over cooked and sometimes delivery drivers could not coup up with the time frame resulted free delivery to the customer.

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6. Identification of Waste:

After observing the store we have identified the following eight areas of waste:

a) Correction:

Correcting or repairing a defect of a product adds unnecessary costs because of additional efforts and labor expenses. During our observation we have noticed that there are occasions the pizza is burned or over cooked, sometimes improper toppings have been put and it is identified after the pizza is made. Primarily these incidents are happened during busy hour or when cooks are tired due to extra hours working. Another reason we observed that except dough other ingredients are added by hand and manual estimation of cook. These results pizza with over or less ingredients and received customer complain or return in many cases. Since there is no scope of repair in prepared pizza the returned or poor quality pizza become a garbage item.

b) Overproduction

Over production is producing more product than required. It may be due to the process capability, minimum batch size or over prediction of market. In our project pizza is usually make to order. There is little scope for over production. Only the front display quantity is prepared without customer order and serves the running customer need. Most of the times the quantity is consumed although at the end of the day there are few pizza become surpluses and treated as waste.

c) Processing

Processing waste refers the work during the process which has no connection with the production process or improving quality of the product. In pizza making we have observed that there were no standardized work methods or specific policies or procedures. People doing things “their way” which often was not the most effective or was very wasteful.Different cook prepare pizza base from dough do not follow standard procedure they do it as per their own style. As a result different people take different time. Similar case happened with the addition of toppings. Somebody add toppings one by one, somebody add all together etc. While putting into the oven people follow different procedures which include many over processing steps. Since the dough is prepared during morning and based on arbitrary forecasting, almost every next morning some part of the dough become rotten and become garbage.

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d) Conveyance

Conveyance is related with transportation misuse, incidental, required action that does not directly contribute value to the product. It’s vital to avoid conveyance unless it is supplying items when and where they are needed .In pizza delivery system in the input end ingredient supply is done three time in a week and at the output end delivery drivers deliver the pizza to the customer address. Many cases drivers lost their way without GPS particularly new drivers. Roads and houses in Windsor is not continuous and in good order. There are many isolated houses around and same road is separated in many cases. We have observed most of the delivery driver do not use GPS and none encourages using this outstanding technology for some unknown reason. This resulted unnecessary use of fuel and wastage of time.

e) Inventory

Keeping inventory is considered as major waste at the same time failure to satisfy market demand is also a big loss. Appropriate forecasting through methodical analysis can strike a balance and ensure minimal inventory waste. In our pizza store forecasting is done through experience and realistic gauging by the owner. Some time it goes fine and many a times we have seen shortfall of ingredients due to that failed to fulfill the customer demand. In other cases there are many over inventory exists. Usually the store maintains 7 days inventory and many cases these are perishables. This inventory sometimes become total wasted.

f) Motion

Any type of extra movement refers as a motion waste. It may be for the within the process or beyond the process but within the system. In our pizza store we have observed that the freezer room is the farthest from the kitchen. Prepared toppings are kept inside the freezer room. Whenever there is any shortage concern cook had to walk down to the freezing room and bring the item while most of the time some drivers sitting idle for the delivery. No signal or information system is available except verbal request to somebody. Due to noise many a times request could not be well understood and wrong items has been brought. A proper signaling system could reduce the motion waste and save time.

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g) Waiting

In any process waiting time is one of the most important waste and to improve a process most of the efforts are taken how to reduce this waiting time. In our pizza shop the main waiting time is while pizza is inside the oven. Usually each cook prepares alternative order. So until next to next order receive the first cook remains inactive. Delivery drivers were not always kept productively busy when waiting for an order to be delivered was completed. Some would take it upon themselves to help out where needed. Others just stood around or went out of the shop area and smoked until an order came up.

h) Under Utilization of Manpower and Resources

The eighth waste is the underutilization of manpower and resources. We have observed that the scheduling is not done properly as a result most of the cases there are over population exists in the store. For example we have seen three delivery driver and two cook total 5 people were employed for 5 hours whereas the order was only 6. Each driver delivered only 2 pizzas for 5 hour and each cook prepare only 3 pizzas in 5 hours. This is a common scenario we have observed for last several days. Due to the closeness of university many of the employees are highly qualified some of them doing Ph.D. and masters some are highly qualified in IT and business. If proper motivation and some extra incentive are given, owner can utilize these employees to improve his overall process.

7. Value Stream Map

To make a pizza the process steps required for the operation are

- Make Dough and add sauce

- Add cheese and toppings

- Cook

- Deliver

The total time required for the whole process from the order of the pizza to delivery is expected to be completed in 18 minutes.

Timeline of the process

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Total Cycle Time = 9.75 min

Total Value Added Cycle Time = 8 min

Total Non-Value Added Cycle Time = 1.75 min

Lead Time = 19.25 min

WIP Time = 14.25 min

As seen the Lead time of the process is 19.25 minutes which is more than the expected completion time which is 18 minutes.

Mapping the Information Flow

The Complete view of the whole process of ordering a pizza is shown in the following diagram

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Mapping the Piece Flow

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Wait Staff

OrderOrder

Customer

In the above push process, each step of the product pushes its product to the next phase where the product stays in the inventory until that phase is ready to receive it.

It can be seen that the total value added cycle time is 8 minutes and the lead time from when the customer places the order and when the order reaches the customer is 19.5 minutes. In the first step of the process the cycle time is 1.25 minutes but the value added cycle time is 1 minute. Meaning, a non value added cycle time of 0.25 minutes is getting wasted at this place. Similarly near the delivery the cycle time is 2 minutes but the value added cycle time is 0.5 minutes. Meaning, a non value added cycle time of 1.5 minutes is getting wasted at this place.

The initial stage of the process can be substituted with a pull instead of a push system so that the receiving process can withdraw from the supermarket when necessary. Pre-made pizza shells can be made with the combinations of sauces and cheese as most of the time these combinations remain constant.

A conveyer pizza oven is implemented to create a FIFO lane between the add cheese and toppings step and cook step. This helps in implementing process flow by reducing inventory. The process can be made faster by implementing electronic flow of information between the wait staff and the cook staff. This is done by replacing paper orders with an electronic ordering system.

Mapping Future State

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Total Cycle Time = 8.35 min

Total Value Added Cycle Time = 6.85 min

Total Non-Value Added Cycle Time = 1.5 min

Lead Time = 10.1 min

WIP Time = 10.1 min

Hence it can be seen that by implementing the necessary steps the lead time is reduced to 10.1 minutes from 19.5 minutes. With the introduction of a Kaizen burst to the value stream map the supermarket of premade pizza shells is highlighted to show the improvement to the value stream. [1]

8. Root Cause Analysis

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Food InventoryI

Pre made Shells

Improved delivery of

2 Min0.5 Min

1 Min

6 Min

0.75 Min

0.35 Min

Cooked Pizza41 min

Cycle Time = 2 mVA CT = 0.5 m

Cycle Time = 6 mVA CT = 6 m

Cycle Time = 0.35 mVA CT = 0.35 m

Order

Supermarket has 4 eachof the six combinationsauce and cheese

Electronic TransferCustomer

Wait Staff

Make Dough, add sauce

F I F O DeliverI

CookAdd Toppings

Fish bone diagram:

Fish bone is a cause and effect diagram to identify potential cause of problems. Pizza Pizza

always try to have a good production and sales system and if there are any lack of production or

sales, what are the main cause of it. These causes can be well explained by the fish bone

diagram.

Man power:

Because of less experience, workers may not be able to handle their duty properly this

enhances decrease in production

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As there are no contract employees there is a possibility for absence of workers this

affects production and sales

The entire process of making pizza is very slow because of not well-trained workers

Measurement:

Inventory plays key role in this process as it indicates the number of available raw

materials (Bread, toppings and other ingredients). Poor inventory disturbs the whole

process. If the new management is not aware of inventory system there could be a

possibility of running out of the materials, sometimes this may lead to stoppage of the

whole process.

Poor experience in handling of accounts impacts the whole production system

Improper scheduling definitely affects production and sales at various time periods

Mother Nature:

Poor maintenance system promotes failures of machines. There is a possibility for two

failures one is power failure and other one is Oven failure. As this whole process is

dependent on these two, without these two, the process of pizza making cannot be

proceeded further

There is a possibility of ingredients to be spoilt because of weather or improper storage

this affects production of pizza

Materials:

There is no capacity for handling huge volume of orders at peak times

As everything is unorganized they could not make proper use of space

Machine:

The production will get decline due to inefficient handling of machine by a new less

experienced workers

Machine failure due to no maintenance affects production of pizza(Less output)

Can’t handle large number of orders during peak periods (Night) because of small sized

ovens. It leads to less production of pizza

Methods:

Because of poor supervision due to lack of experience during production leads to poor

handling of large orders

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Poor delivery system results poor dispatching of pizzas to customers. It will affect the

sales and customer satisfaction

9. Application of 5S:

5S is introduced in industrial sector. It is equally applicable for other sectors and processes. For our project we tried to use this in pizza pizza store. We have observed the existence of 5S in the store first. From our observation we noticed that the store do not use 5S as a tool but in many cases they organized things which is close to 5S system in some cases they are beyond 5S system. For the purpose of the application of 5S in pizza store we could not reorganize things since the owner was not very interested to rearrange things and he was kind of happy with the present setting. As a result we have some before picture but could not get any after picture. However we tried to identify the possible potential 5S area and added as a recommendation with the project.

Sort Phase:

During this phase we tried to separate from required and not required items. We found many items he doesn’t need even there are many unserviceable items were in the storage room such as broken machines, unserviceable containers, extra equipment. If these items can be discarded there will be savings of many space and things can be organized in better way.

Simplifying Phase:

The layout of the store is not well balanced. By rearranging equipment travel time between processes can be minimized. Particularly the customer using area seems too big to us. We observed that orders mostly delivery order and the customer area remains unused almost every time. Re-arranging this space can add a new dimension of the store. Putting more space for first using ingredients for the cook can reduce frequent movement of cook and reduce possibility of error during busy time in particular.

Shinning Phase:

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There is no standard instruction exist for sweeping the store. It is done by individual if he feels necessary. As a result there is pile of garbage accumulated in the store which could be a serious hygienic threat for the cooked pizza. We consider if this is disclosed to customer it may create serious observation by the customer. We recommend a scheduled cleaning system should be incorporated. Instead of doing it end of the day cleaning should be at least hourly. This will provide a knit and clean and above all hygienic environment which can be a promotional tool towards increasing sales.

Standardizing Phase:

Some of the items are kept nicely particularly drinks and dough trays but some of the items such as cutting machines and containers are not at all organized. Toppings are kept side by side inside the freezer room but there is no container number. Same container is used by different toppings. There exists every possible scope to mix toppings and made mistake particularly during busy hours. We recommend changing separate type of container for individual toppings. This can be done by color, size or shape of the container. If not possible at least separate tag can be placed to identify the container and place separate tag to each ingredients location.

Cleaning tools are kept on the floor and do not have any specific location. As a result it is very difficult to find out the required stuff when it is needed. Tremendous amount of time is wasted. We recommended that a specific area should be nominated for the cleaning items.

Sustain Phase:

This is the most important phase of 5S. By nature people try to resist the changes. This is not different in pizza shop. We recommend a high standard of commitment of owner to implement this. We tried to make him understand the outcome and positive of this philosophy. He also agreed with us but was little reluctant to implement it right way. We have provided him the examples hopefully he will implement it soon.

10. Recommendation:

At the end we tried to make some recommendations to improve the overall process of the store.

a. Scheduling: A precise scheduling system is a must. For effective scheduling instead of manual employment appropriate software may reduce duplication of manpower and will be efficient and cost effective.

b. Standardization: All activities should be standardized. Proper data should be sorted for different activities and after periodical analysis standard timings and quality standard may be maintained.

c. Reorganize: Reorganization of the overall layout may provide scope for better utilization of resources and elimination of waste.

d. Documentation: All the activities should be logged and proper documentation may maintain.

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e. Driver Management: Drivers timing are not maintained. In-Out timing should be recorded and distance need to be logged. Thereby average travel timing can be sorted and performance measurement may be measured.

f. Information flow system: An electronic information system and signal may ease effective operation.

g. Instruction board: Boards may be placed with various types of information and employee must be informed the performance of the store.

h. Charter of Duties: Charter of duty of every individual is highly recommended. This will reduce confusion and provide clear guidelines for individual responsibilities.

i. Safety Practice: A safety instruction is a must and proper monitoring system must be in place to ensure safety practice.

j. Fire protection system: Fire protection and emergency mitigation procedure must be prepared informed to all employees.

k. Garbage management system: An effective garbage cleaning schedule is required to be prepared and adhered.

l. Employee meeting and Feedback: Regular employee- employer meeting is highly recommended and employee feedback is encouraged to implement this suggestion box may be created.

m. Introduce Performance appraisal and reward and punishment systemn. Improvement suggestion box and incentives

Conclusion:

Through this project we were able to understand and implement few of the Lean manufacturing tools on a local pizza store. This project made our paths cross many problems in an industry which cannot be taught theoretically. One of the observations was that people in industry are reluctant to apply lean. This is because they presume the philosophy of lean to be complicated and fail to implement it. It was also observed that people are reluctant to any sort of change and want to abide by their traditional way of achieving the required goal. However, this project has enriched our confidence and helped us understand the application of different lean tools in an industry and we hope to carry it out in our career confidently.

References:

1. Lean thinking by James P Womack and Daniel T. Jones.2. Learn to See by Mike Rother and John Shook3. http://www.minitab.com/uploadedFiles/Documents/sample-materials/

TrainingSampleValueStreamQC3.pdf4. Lean Enterprise System by Steve Bell

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5. Design and Analysis of lean Production System.6. The lean Design Guidebook by Ronald Mascitelli7. Lean Manufacturing that Works by Bill Carreira.8. The illustrated Lean Agile and World Class Manufacturing Cookbook compiled by

Francois De Valliesrs9. SAE 2008, Application of lean and Six Sigma for the Automobile Industry10. The Complete guide to Just-In- Time Manufacturing by Horoyuki Hirano11. The 5S Philosophy – Nilesh R Arora12. Fundamentals of Value Stream Mapping by P. Alvarez and Martin

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