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    2010

    Submitted by:

    Anil M S PGP/14/006

    Ankit Arora PGP/14/008

    Apoorva Bhagat PGP/14/013

    Deepika Negi PGP/14/023

    Kartik Desikan PGP/14/034

    Nilesh Kadam PGP/14/040

    12/8/2010

    Cholayil Sanjeevanam: Operations

    Management Project Report

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    Executive Summary

    Cholayil Care is an illustrious and esteemed Ayurvedic group from Kerala, which has a deephistory in providing holistic health care. Cholayil Sanjeevanam is yet another feather in thecap of Cholayil Care group. Cholayil Sanjeevanam represents total health by integrating the

    principles of Ayurveda, Naturopathy and Yoga. It comprises of Treatment centres, Hair andFace care units, Vegetarian health restaurants and Health products counters.

    Cholayil Care has 11 treatment centres and 5 vegetarian health restaurants spanningKarnataka, Kerala, Maharashtra, Gujarat and Sharjah, UAE. The Cholayil Group opened theSanjeevanam Ayurveda Naturopathy and Yoga Centre and a natural health restaurant inKozhikode in September, 2008. We as a group wanted to choose a service based setup in aniche sector like health food and Ayurvedic treatment. Hence, we chose CholayilSanjeevanam, Kozhikode. It is interesting to study as to how the company has tried to createa niche for itself in the health food and Ayurveda treatment. Sanjeevanam has tried todifferentiate itself from regular restaurants and spas on basis of traditional Ayurvedic recipesand treatment methods. In this report, we aim to study the operation management at CholayilSanjeevanam, Kozhikode in terms of process flow, layout, workforce scheduling, qualitycontrol, inventory control, billing systems, standard operating procedures and service

    blueprint. The concluding section includes recommendations to improve the operationalefficiency and overall business of Cholayil Sanjeevanam, Kozhikode.

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    Scope of the Project

    In this project, we have analysed the operation management at Cholayil Sanjeevanam,Kozhikode in terms of process flow, layout, workforce scheduling, quality control, inventorycontrol, billing systems, standard operating procedures and service blueprint. Certainoperational details of the centre could not be included in this project to honour the privacyand trade secrets of the business. We have restricted our analysis only to the Operations ofthe Kozhikode centre of Cholayil Sanjeevanam with focus on the restaurant operations alone.

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    Table of Contents

    Acknowledgement ..................................................................................................................... 1

    Executive Summary ................................................................................................................... 2

    Scope of the Project ................................................................................................................... 3

    1. Indian Food industry: Overview ......................................................................................... 5

    1.1 Health Food ..................................................................................................................... 5

    1.2 Ayurveda and Herbal industry ...................................................................................... 5

    1.3 Restaurant Industry ........................................................................................................ 6

    2. About the Company: Cholayil Private Limited .................................................................. 8

    2.1 Group Divisions ............................................................................................................... 8

    2.2 Location of centres ........................................................................................................ 12

    3. About Cholayil Sanjeevanam Kozhikode Centre ........................................................... 13

    3. 1 Location ........................................................................................................................ 13

    3.2 Vegetarian Health Restaurant ..................................................................................... 14

    3.3 Concept of the Restaurant ............................................................................................ 15

    3.4 Implementation of the Concept ................................................................................... 16

    4. A Glimpse into the Operations of the Restaurant .............................................................. 17

    4.1 Workforce at the Restaurant ....................................................................................... 17

    4.2 Organization structure at Sanjeevanam ..................................................................... 17

    4.3 Quality control .............................................................................................................. 18

    4.4 Inventory Holding ......................................................................................................... 19

    4.5 Planning System ............................................................................................................ 19

    4.6 Feedback and Services .................................................................................................. 20

    4.7 Layout of Restaurant .................................................................................................... 20

    5. Service Process, Strategy and Design ................................................................................ 23

    5.1 Elements in the design of service org .......................................................................... 23

    5.2 Service Process Matrix ................................................................................................. 24 5.3 Service System design Matrix ...................................................................................... 24

    5.4 Service Process Flow ..................................................................................................... 25

    5.5 Service blueprint ........................................................................................................... 27

    5.6 Suggested Service blueprint ......................................................................................... 28

    5.7 Stakeholders .................................................................................................................. 28

    6. Recommendations ................................................................................................................ 30

    6.1 Challenges ...................................................................................................................... 30

    6.2 Recommendations ......................................................................................................... 32

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    1. Indian Food industry: Overview

    The Indian food market is estimated at over US$ 182 billion, and accounts for about twothirds of the total Indian retail market. Further, according to consultancy firm McKinsey &Co, the retail food sector in India is likely to grow from around US$ 70 billion in 2008 toUS$ 150 billion by 2025, accounting for a large chunk of the world food industry, whichwould grow to US$ 400 billion from US$ 175 billion by 2025. According to the India Foodand Drink Report Q3 2008 by research analysis firm Research and Markets, by 2012, India s

    processed food output is likely to grow by 44.2 per cent to touch US$ 90.1 billion, while packaged food sales will increase by 67.5 per cent to reach US$ 21.7 billion. On a per capita basis, per capita packaged food spending is expected to grow by 56.5 per cent to US$ 18.06 by 2012.

    1.1 Health Food

    Health food and supplements is another rapidly rising segment gaining popularity amongstthe health conscious. Economic growth, global cuisine and the need for convenience arechanging the dietary choices. Also, health consciousness is popularizing sugar-free and lowcalorie diet foods as well as foods containing more natural ingredients. Value-added foods arein demand and Indian consumers are discovering the growing number of packed and

    processed foods available to them. Consumers are placing increasing emphasis on the

    provision of safe, nutritious, environmentally sustainable food. The main challenge is tomake our daily food act as medicines as well and provide the right nourishment to the bodythat enables one fight diseases at various stages of one's age process.Recognising the growth potential of the branded health food sector in India, fast movingconsumer goods (FMCG) majors are foraying into this sector in a big way. As HindustanLever Ltd (HUL) is test marketing its health food brand, Kissan Amaze, in three southernstates in India, Godrej Hershey Foods & Beverages Ltd (GHFBL), a joint venture betweenGodrej Beverages & Foods Ltd and Hershey Company, is planning to introduce select brandsfrom its international portfolio in the domestic market.

    1.2 Ayurveda and Herbal industry

    Ayurveda, one of the ancient traditional medicines of India, believes that the body isgoverned by three fundamental principles - Vata, Pita and Kapha. An imbalance of thesecauses illness. Ayurvedic treatment helps restore this balance without side effects. Ayurvedaor Ayurvedic medicine is a system of traditional medicine native to the Indian subcontinentand practiced in other parts of the world as a form of alternative medicine. In Sanskrit, the

    word Ayurveda consists of the words ayus meaning longevity , and veda mean ingscience . Evolving throughout its history, Ayurveda remains an influential system of

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    Restaurants in Kozhikode

    There are about 330+ restaurants in Kozhikode which includes the Five Star Deluxe Taj

    Residency. The Kerala Tourism Development Corporation (KTDC) is a commercial agency,which actively participates in building up basic infrastructure needed for the development oftourism in the State such as hoteliering, provision of transport facilities and publicity. Theyoperate star hotels, budget hotels, Araam hotels, Yatri Nivasses, Restaurants and BeerParlors, Central Reservation Systems and Conducted Tours. The number of beds available forthe year 2005-06 was around 416490. Around 312284 domestic tourists and 34468 foreigntourists occupied these restaurants/ hotels during 2005-06.

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    2. About the Company: Cholayil Private Limited

    Cholayil Care is an illustrious and esteemed ayurvedic group from Kerala, which has a deephistory in providing holistic health care. Cholayil Care manufactures the largest selling

    branded Ayurvedic soap Medimix and Cuticura brand of talcum powder. Dr. V.P. Sidhan isthe founding father of the Medimix , which is manufactured using a wholly indigenouslydeveloped process with manual equipments. Cholayil was founded in 1969, with a globalvision that is firmly rooted in Indian values - 'to touch lives with a range of quality productsthat enhance the quality of life'. The prime objective of Cholayil Care group is to provide itscustomers with high quality products without altering their traditional value therebyenhancing quality of human life. The group has interests in toiletries, personal and health careverticals. Cholayil Care products are presently manufactured at various locations in Tamil

    Nadu, Karnataka and Pondicherry. It also exports its products to the UAE, Saudi Arabia,Oman, Bahrain, Kuwait, Qatar, Yemen, Malaysia, Singapore, Japan, Taiwan, Nepal,Maldives, Mauritius, Egypt, Kenya, the UK, France, Germany, Spain, Sweden, Lithuania, theUS, Australia, Russia, the Czech Republic, Bangladesh, South Africa, Romania, Cambodiaand Seychelles.

    2.1 Group Divisions

    Cholayil Products and Services Cholayil Ayurvedic Health and Research Academy Cholayil Care Herbal Garden Cholayil Sanjeevanam Academy of Ayurveda

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    Cholayil Products and Services

    Cholayil Products and Services is promoted by Dr. A.V. Anoop, who is also a director ofCholayil Private Limited. Dr. Anoop is a well-known personality in the field of Ayurveda

    with over 25 years of experience in Soaps, Pharmaceuticals, Cosmetics and Food Industry.His tremendous passion for business expansion led to formation of Cholayil Products &Services in March 2007 with the idea to deal in FMCG and other health products. CholayilProducts & Services (CP&S), the marketing wing of Cholayil for south has a dedicateddivision for Institutional sales of its branded products. Medimix Ayurvedic bath soap,Medimix Sandal Soap and Medimix Transparent (glycerine) are the company's flagship

    brand. Sanjeevanam Cough Syrup is also a part of the product portfolio. These products aremarketed to Hotels / Hospitals / Industries at special subsidized prices, the motivation forwhich is the tremendous visibility garnered and products trials ensured. The institution salesdepartment of CP&S caters to more than 4000 hotels across the country with doorstepdeliveries.

    Cholayil Sanjeevanam

    Cholayil Sanjeevanam is yet another feather in the cap of Cholayil Care group. CholayilSanjeevanam represents total health by integrating the principles of Ayurveda, Naturopathyand Yoga. Cholayil Sanjeevanam is ISO 9001:2008 certified and commenced operations inJuly 2004 at Mogappair, Chennai. Sanjeevanam seamlessly blends conventional and modernAyurvedic medicinal values based on the above inspirational principle to provide a healthy

    body, mind and soul to mankind.Cholayil Sanjeevanam is a one of its kind centre for holistic health services that rejuvenatesthe body physically, mentally and spiritually. It is a tribute to natural living and aims to

    provide guidance regarding food and lifestyle, blending traditional wisdom with modernconveniences, so that healthy people can stay healthy and those with health challenges canimprove their health. The spacious and aesthetically designed centre provides holistictreatment based on the tenets of Ayurveda, Naturopathy and Yoga to provide "Healthy &Happy life" and aspires to be a unique integrated solution centre for all health problems.

    Mission and Values:"Cholayil Sanjeevanam will endeavour to touch everyone's life across the globe byleveraging on our strong roots in Indian culture and by continuously developing ourknowledge and expertise in the herbal/natural products domain."

    Holistic health servicesStrongly rooted in Indian culture of AyurvedaStrong emphasis on further research in the natural products domainInternational standards of quality

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    Cholayil Sanjeevanam comprises of:

    a) Treatment centres:These centres offer therapies under the Indian Medical System based on the concepts of

    Ayurveda, Naturopathy and Yoga. Reputed and experienced Medical Officers andexperienced therapists offer lasting solutions for asthma, hypertension, obesity, sinusitis,migraine, diabetes, skin disorders, arthritis and other chronic illness, besides providingrelief from stress through specialized rejuvenation therapies.

    The Ayurveda Therapies include Pizhichil, Njavarakizhi, Shirodhara, Shirovasthi,Udvarthanam, Abhyangam, Nasyam, Elakizhi , Kativasthi, Urovasthi, Netratharpanamand Panchakarma .

    Naturopathy is a multi-disciplinary approach that uses the healing power of naturalresources like food, herbs, earth, water and air to help the body heal itself. The

    Naturopathy Treatments include Diet Therapy, Hip-Sitz-Spinal Spray Combo Bath,Cold Circular Jet, Mud Therapy and Massage Therapy. Yoga, a science not less than 5000 years old, is simultaneously self-diagnosis,

    healing, prevention and maintenance. Yoga Therapy includes therapeutic yogatreatments that target specific ailments such as Bronchial Asthma, Sinusitis, Diabetes,Hypertension, Menstrual Disorders, Arthritis, Obesity, Insomnia, Back Pain,Digestive disorders, Anxiety Neurosis etc. Sanjeevanam also has well-trainedinstructors offering customized Yoga therapy to individuals based on their needs.Special Yoga programs are available for General Health, Children, Women, andSportspersons etc.

    b) Hair and Face care units:Hair and Face care units Provides excellent treatment on hair loss and skin problems likeacne, dry skin and so on, which have a long lasting effect. Cholayil Sanjeevanam housesa unit dedicated to hair and face care which offers natural treatment using medicated oilsand herbal medicines. Diet counselling is also provided to address nutritionaldeficiencies that adversely affect the hair and skin.

    Hair Care services include Treatment for hair loss, Treatment for hair growth,Hair repair treatment, Elimination of excess sebum and itchiness and Prevention

    of dandruff recurrence. Face Care includes Facial (Saffron, Spirulina), Gold facial, Protein facial, Deep

    cleansing treatment, Acne treatment, Tightening pore treatment, Pigmentationtreatment, Facelifting treatment and Anti-wrinkle treatment.

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    c) Vegetarian health restaurants:Cholayil Sanjeevanam health restaurant serves healthy and tasty foods cooked based onthe naturopathic principles. Cholayil Sanjeevanam is supported by a panel of eminent

    dieticians and other professionals. The food is prepared only in earthen, bronze and coppervessels by specially trained and experienced cooks, without using ingredients considereddetrimental to health.

    d) Health products counters :The Cholayil Sanjeevanam Health Products include a wide range of natural products like

    pure honey, natural health mix, Chamba rice, Palm candy, Ginger coffee, Dhania coffeeetc. All these products are made with ingredients of the purest quality and do not containany preservatives or artificial ingredients while retaining the natural goodness of complexcarbohydrates and insoluble fibers.

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    2.2 Location of centres

    Cholayil Sanjeevanam has centres across India and an overseas centre at Sharjah. The centreis expanding its business bringing the healing touch and benefits of Ayurveda and healthy

    living to people across the globe.

    State City/ District Type Address

    Karnataka Chennai (H.O.) Centre & Restaurant Block 1, Ist Floor, AMM Towers,Thiruvalluvar Road, Mugappair, Chennai

    Adyar Ayurvedic Centre 15, Indira Nagar, First Main Road, Adyar,Chennai

    Restaurant Old No.24, New No.76, B. Venkatarathinam Nagar, Adyar, Chennai

    Nungam-bakkam Centre & Restaurant New No. 97, Old No.45, Nungambakkam HighRoad, Nungambakkam, Chennai

    Bengaluru Restaurant No: 50, 100 Feet Road,Opp. Kendriya SadhanMadivalla Bus Stop, Koramangala IInd Block,Bengaluru, Karnataka

    Kerala Thalassery Restaurant Dew Drop , 382, Holloway Road, Thalassery,Kannur District, Kerala

    Kozhikode Centre & Restaurant MN'S Avenue, Near Fourth Railway Gate, P.T.Usha Road, Kozhikode

    Ernakulam House No CC.42/2319, Chittoor Road,Kacheripady, Ernakulam

    Maharashtra Aundh Ayurvedic Centre C13 & 14, Supercon Residency, Opp.ITI,Aundh, Pune

    Kalyani Nagar Ayurvedic Centre G1, Goodwill Enclave-V, Co-operative HousingSociety Ltd, Plot No.32, Survey No. 290/4,Final Plot No.77, Yerwada, Kalyani Nagar,Pune

    Gujarat Ahmed-abad Ayurvedic Centre Kamla Kamdhenu, Drive-in-road, Helmet CharRastha, Memnagar, Ahmedabad, Gujarat

    Sharjah, UAE Sharjah Ayurvedic Centre Natural Physical Treatment Centre, 1C,Corniche Road, Al Shuwaiheen Area, Next toCorniche P.O., Sharjah, UAE

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    3. About Cholayil Sanjeevanam Kozhikode Centre

    3. 1 Location

    Cholayil Sanjeevanam Centre, Kozhikode

    The restaurant is located at MN s Avenue, Near Fourth Railway Gate, P.T.Usha Road,Kozhikode.Daily Timings of the restaurant is as below:

    Lunch: 12pm - 3pm Snacks: 3pm - 7pm Dinner: 6pm - 9pm

    Cholayil Sanjeevanam Kozhikode Centre was inaugurated by Smt.P.K.Sreemathi TeacherHon ble Minister for Health & Social Welfare, Govt. of Kerala on Sunday, 7th September2008 in the presence of Mr.M.Bhaskaran, Hon ble Mayor of Kozhikode. The Centre isequipped with Treatment facilities for Ayurveda, Naturopathy & Yoga. It also has aVegetarian Health Restaurant that serves Fresh Natural food.

    Kozhikode Centre- Opening

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    3.2 Vegetarian Health Restaurant

    Cholayil Sanjeevanam Health Restaurant serves healthy and tasty foods cooked based on thenaturopathic principles. Cholayil Sanjeevanam is supported by a panel of eminent dieticians

    and other professionals. The food is prepared only in earthen, bronze and copper vessels byspecially trained and experienced cooks, without using ingredients considered detrimental tohealth.

    Sanjeevanam also offers a wide range of high quality natural health products with the very best of ingredients, with no preservatives or artificial stimulants while retaining the naturalgoodness of complex carbohydrates and insoluble fibres. Pure Honey, Dates, Bran Rice,Amla Powder etc. are sold over the counter at each restaurant.

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    3.3 Concept of the Restaurant

    The restaurant is based on the concept of Saatvik diet in accordance with its motto ofHealthy food, Healthy Life.

    For an object or food to be Saatvik, It must be healthy, nutritious and clean It must be uncontaminated It should not spread evil or disease in the world, which disallows food or objects

    obtained after killing or causing pain to a creature as the object would then havesource in an evil act

    Its presence must purify the surroundings It should not weaken the power or equilibrium of mind, which disallows aphrodisiac

    or other drugs and intoxicants that can affect the mind in such a way

    It must not be stale or pungent-smellingA Saatvik diet, also referred to as a yoga diet or sentient diet is a diet based on foods which,according to Jainism, Ayurveda and Yoga, are strong in the sattva guna, and lead to clarityand equanimity of mind while also being beneficial to the body. Such foods include water,fruit, cereal, bread, most vegetables, beans, nuts, grains, milk and milk derivatives (cheese,

    butter, ghee, cream, yogurt), and honey.It is most helpful to consider the general characteristics of the Saatvik diet, whichtraditionally is described as pure foods that are rich in prana (life force). Organic foods aretherefore recommended for both their purity and vitality. The food should be fresh and

    freshly prepared. Leftovers are decidedly Tamasik.Pure, Saatvik food needs to be chewed carefully and eaten in modest portions. The foodshould be enjoyed for its inherent taste and quality, rather than the spices and seasonings thatare added.

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    3.4 Implementation of the Concept

    Fresh procurement of vegetables and other foods on a daily basis Fresh and hygienic preparation of food items

    No refrigeration No addition of preservatives No addition of colouring agents Unutilized food is thrown away daily Low consumption of milk and milk products Organically produced vegetables are used Good quality cooking oil is used Natural sweeteners (jaggery, honey) are used in place of sugar Tamasik spices like red chillies are not used

    Saatvik alternatives are used, e.g tomatoes in place of tamarind Certain dishes are prepared a little in advance, for e.g., rice is pre-cooked Foods rich in fibre protein and water majorly feature in the menu Foods requiring fermentation are fermented only a day before, but the time of

    fermentation is less than the standard time taken, so as to reduce the sourness Snacks are not oil-fried, but steam cooked instead Tea is not served, as it is not considered good for health because it contains caffeine Coffee variants, Ginger Coffee, Tulsi Coffee are on the menu Kalkandu (Tamil), a natural sweetener is placed on the table for the customer to add

    as per his requirements Lukewarm water is served in variants which change daily, e.g. cumin seeds-flavoured

    water

    Their specialty items include a wide range of salads, steamed food, juices as well as herbaldrinks in addition to the specialty Rajakeeyam meals. The fare includes North Indian, SouthIndian, Tandoori, Chinese as well as Continental cuisine and aims at satisfying the palettes of

    both the health conscious and the food connoisseurs, thus encouraging the society tosubscribe to multi-cuisine food that is wholesome in taste and brimming with good health.

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    4. A Glimpse into the Operations of the Restaurant

    4.1 Workforce at the Restaurant

    At the Calicut branch not many people are employed because the customer turnout is notmuch as compared to other branches like Chennai and Banglore. Further it is very rare whenextra shifts are used here.

    The restaurant has the capacity to accommodate at most 35 people. There are 2 waiters whotake orders, 5 cooks to prepare the delicacies, one restaurant manager, one person at the

    billing counter and 2 to 3 people in cleaning staff. All the employees are permanent.

    Cooks are first trained in Chennai centre and then sent to restaurants at other locations.

    A normal working day at restaurant starts at 7 a.m. with cleaning of the restaurant andkitchen. Around 8 a.m. cooking preparations start. As the customers start coming orders aretaken.

    4.2 Organization structure at Sanjeevanam

    Organizational structure at Sanjeevanam has a hierarchical structure at the top and a flat oneat the bottom. The sequence of power flow is as below:

    Operations ManagerOperations Manager of Chennai Branch looks after the operations at Sanjeevanam,Calicut. He visits the branch every alternate week.

    Restaurant ManagerRestaurant Manager reports to the Operations Manager. He is in charge of all theactivities of restaurant.

    Front Office ExecutivesOne person sits at the billing counter. He is responsible of generating the bill forcustomers.

    One person is responsible for procurement of raw materials for the restaurant. Hekeeps tab of the quality of vegetables and other things.

    Waiters/ Order-takersThe restaurant has two waiters. Since the customer inflow at Sanjeevanam is not verymuch, employing only two waiters serves the purpose.

    CooksThere are 5 cooks at Sanjeevanam, most of who were trained at Chennai first. Theyalso report to Restaurant manager along with front office execs and waiters.

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    Cleaning StaffThere are 2 to 3 people responsible for the cleaning of the restaurant includingkitchen. These people report to the person responsible for procurement of raw

    materials.

    Organizational Structure at Sanjeevanam, Calicut

    4.3 Quality control

    Sanjeevanam is a 100% veg restaurant. It serves up healthy and tasty food designed along thenaturopathic principles and is supported by a panel of eminent doctors and dieticians. Therestaurant uses a number of quality control measures:

    The food is prepared only in earthen, bronze and copper vessels by specially trained,experienced cooks. No ingredients which are considered detrimental to health areused for cooking i.e. coloring agents, preservatives etc. Even red chilli powder is notused.

    There is one dedicated person to check the quality of vegetables coming in. Since the restaurant does not have any refrigerator, it uses minimum milk products.

    Sanjeevanam is ISO 9001 certified. The certification relates to quality managementsystem and is designed to help organizations ensure they meet the needs of customers

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    and other stakeholders. Its implementation leads to superior operational performanceas compared to other similar restaurants.

    ISO: 9001 standard vendors are also arranged for daily procurement of food items.For the Kozhikode centre, there is a single source for procurement of vegetables.

    Vendors are fixed on a 1-, 3- or 6- month contract period after checking quality.Quality checks are based on physical testing and subject to experience. Aperiodic testsampling of vegetables is done to ensure that they are of adequate quality andfreshness.

    Some healthy food items prepared at the restaurant: Gujhia is steam cooked instead of oil -fried and instead of Maida , wheat flour is

    used in its preparation. Instead of sugar, palm candy powder or honey is used as asweetener.

    For Dosa batter is not fermented and some other method is used. Normal coffee is also not served at the restaurant because of the high caffeine. Instead

    of similar coffee powder with health benefits is used.

    4.4 Inventory Holding

    The make-to-order versus make-to-stock question is a fundamental one in organizing andcontrolling production. According to some studies (one of those of Milgrom and Roberts,1987); inventories and information about demand are substitutes for one another in

    production. Their results suggest that firms should employ only one of the two strategies:firms either produce for inventory or produce to order, but not the both.Many examples support this conclusion but many others do not. Some firms often shift fromone alternative to the other while other firms constantly employ a mix of the two alternatives.Sanjeevanam restaurant also uses a mix of both strategies. Being a concept based restaurantwhich believes in healthy food, its policy is to serve people freshly prepared food. Once

    prepared, food can t be used more than 4 hours. But there are few items like rice and somevegetables, which are prepared beforehand so that when the order comes it can be modifiedas per the order and served.This kind of inventory management requires an efficient demand and supply planning systemto ensure that the inventory that would be wasted is minimized.

    4.5 Planning System

    In case of large orders, they must be intimated beforehand to enable better planning. The planning system involves the collation of the daily sales reports of the past 6 months throughtheir online, automated billing system. This is used as a feedback mechanism to learn aboutthe required quantity to be procured daily. Cost budgeting is carried out every 3-4 months

    based on these required procurement details.

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    4.6 Feedback and Services

    The restaurant also solicits feedback from the customers. The headquartered office atChennai decides the menu changes for the individual branches after a compilation of thisfeedback.The restaurant offers several options to the customers in the form of in-restaurant dining,

    banquet hall (located above the ground floor) dining, party orders, takeaways and homedelivery services (for large order quantities). It also has the option for prior booking.

    4.7 Layout of Restaurant

    Service Area

    The service area of restaurant has a rectangular layout. The room has been separated into twosides. One of the sides has 4 tables with the seating capacity of 4 people each. The other sidehas 3 four Seater tables arrangement and one 6 Seater table. This side has sofa seating at oneside of the tables. The restaurant can accommodate 34 people at full capacity.

    The kitchen is at the other end of the room as shown in the layout. Washroom is at the otherend. Washroom area is quite clean with the separate facilities for ladies and gents.

    There is a product stall behind the billing counter which displays the Ayurvedic products likehoney, dates, coffee powder etc. etc.

    No. of tables Seats per table Max Capacity

    7 4 28

    1 6 6

    Total 34

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    Service Area Layout

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    Kitchen Layout (Drawn as per the details shared by Restaurant Manager)

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    Cholayil Sanjeevanam: Operations Management Project Report 2010

    5. Service Process, Strategy and Design

    5.1 Elements in the design of service organisation

    There are basically four elements involved in the design of a service organization: Target Market Service Concept Service Strategy Service Delivery System

    Target MarketThe target segment for this concept restaurant is all those people who are health conscious.The restaurant started with aim of attracting people in the age group of 40+. But the recent

    trends with younger population becoming more health conscious have led to youngergeneration frequenting this restaurant.

    Service ConceptSanjeevanam offers quality of products and freshness of products as service differentiators.

    Nutritional value of the food provided is the USP of this restaurant and it hopes to maintaincustomer loyalty by not compromising on the cleanliness and the quality of the food.

    Service Strategy

    Sanjeevanam provides service to the customers with the highest possible quality. Acustomer s visit to a Sanjeevanam doesn t end with his purchase of food/beverages. He goesthere for the experience of having healthy food. The staff at any service establishment plays avery important role in the proper functioning and success of that establishment. Especially inthe restaurants the staff makes or breaks the place. Employees help the restaurant to facilitatethe process of quality service. The behavior of the employees directly contributes to thecustomer s overall experience. Their actions, reactions and conduct while interacting with thecustomers will directly affect the customer satisfaction.

    Service Delivery System The delivery of the product plays an important role in improving customer service. Some ofthe factors like the time taken to place/deliver an order and the process of placing anddelivering an order contribute to the customer s overall experience.Order Time is the time taken from when the customer wants to place an order, till when theorder process is completed.Delivery Time is the time taken from the point when the customer gives the order, to when itis delivered to the customer. Delivery time largely depends on the preparation time and thedelivery process. It is also an indicator of how long a customer must sit idle until his order isready for consumption.

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    5.2 Service Process Matrix

    The service process matrix applicable to Sanjeevanam is shown as below. A high amount ofcustomer interaction is required and the degree of labor intensity is relatively low which puts

    it in the category of Service Shop. I t is important for the sales and other executives toaddress the needs of each customer separately and provide appropriate products.

    5.3 Service System design Matrix

    Essentially this points out the fact that quality and consistency of services; sales forcemanagement and consumer involvement are the key issues to be taken care of bySanjeevanam. Also in the service system design it falls in the face-to-face tight specs

    position, highlighting the importance of process of sales being the key in differentiating withthe competitors.

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    5.4 Service Process Flow

    1. Customer comes in and occupies a table

    2. Menu is given to the customer by the assigned order-taker/ waiter.

    3. After offering water, any one of the two order-takers takes the first order from thecustomer

    Sanjeevanam HealthRestaurant

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    4. The order is taken and noted in a notepad

    5. The order-taker goes into kitchen and enters the order into the computer with aspecific program known as KITCHEN ORDER TOKEN.

    6. Details like name of waiter, table number, time of order, number of people occupyingthe table and the food ordered is entered into the system. A serial number is assignedto it to know about the previous orders given by the customer, if any.

    7. 3 copies of printed receipt are obtained from the KOT for the data entered. Waiterkeeps one, second is given to kitchen and third one is given to the billing counter.

    8. After receiving the KOT receipt, ordered food is prepared in the kitchen. Once thefood is ready, it is given to the waiter to serve

    9. The waiter then serves the food to the customers. The KOT receipt helps in avoidingany confusion with respect to food ordered by different customers

    10. More orders from the customer follow the same procedure. The billing counter copiesare kept together in the slot reserved for that particular table. After all the orders are

    processed, all the KOT receipts are taken to the billing counter

    11. Here the serial numbers are checked for each receipt and so is the table number. The bill is made as a compilation of all these KOT receipts. The bill is taken to the table by the order taker

    12. Customer pays the bill and the waiter takes the balance from the billing counter and givesit back to customer. All the bill details can be accessed by the central office in Chennai.

    Bill at Sanjeevanam with all the details

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    Total time taken at the restaurant (for a single order)

    Activities Time taken(Minutes)

    Time taken to decide on items 5Time taken to note down theorder

    2

    Time taken to cook the food 25Clearing the table 3Getting the bill prepared andgiving it to the customer

    4

    Customer paying the bill 2

    Total time 42 Minutes

    5.5 Service blueprint

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    5.6 Suggested Service blueprint

    5.7 Stakeholders

    Customers

    Current Process and its impact on stakeholders: All levels in the process use Kaizen

    Trainings at regular intervals Various cuisines to choose from and they also serve in house specialities Food prepared with utmost care and tested physically Frequent menu upgradation based on data collected about previous customers

    Employees

    Current Process and its impact on stakeholders:

    Competitive Compensation Sales linked bonus and incentives

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    Regular training sessions provide great opportunity to learn about technology, products and other skill

    Promotions are also linked with duration in service along with the effort put in.This policy is to promote loyalty.

    The need to perform aspect may put a lot of pressure on employees

    Sanjeevanam Management

    Current Process and its impact on stakeholders: Sanjeevanam shows high level of commitment to customers and care to customer

    needs. It believes that customer satisfaction is the way to success. Good environment and ambience to make customers feel comfortable

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    6. RecommendationsSanjeevanam is a concept restaurant which focuses on the benefits of Ayurveda for holisticwell-being. Apart from having a number of health services like Ayurvedic massage, skin and

    hair treatments, herbal baths, yoga and meditation etc. they also specialize in a niche areaknown as Saatvik food. This special kind of food is defined to be made by pure and naturalingredients, under most hygienic and scientifically tested techniques so that the nutritionalvalue of ingredients is not lost and all the harmful toxins present in the food are removedcarefully.

    As this concept is highly inspired from the philosophy of Ayurveda and many people are notvery much aware of this age old concept, the management is cur r ently f acing a majorchall enge in the attracting the general mass towards this idea of h ealthy li ving.

    As the operations manager Mr. Murugan also pointed out, the Major challenge in front ofthem today is that though they have capacity but they are not able to attract the crowd as faras their Calicut centre is concerned.

    6.1 Challenges

    The various Challenges currently faced by the centre can be grouped into following main

    sub-divisions:

    Awareness and Marketing

    Calicut being a tier two city currently does not have a high spending andcosmopolitan culture which is ideal for niche businesses like this. The trends inspending in Calicut are very much different from what people around Snajeevanam sother centres in the cities like Bangalore, Chennai etc have. For example as theoperations manager said, unlike in other cities, Calicut has less people visiting thecentre during weekends as compared to weekdays.

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    The concept itself is not very well known and accepted by the people. There is a greatdeal of consumer education and exposure required.

    Lack of connect with the young generation is also a major problem faced by thisspecialty food centre especially in its Calicut centre. People in the age group of 20-35

    sometimes feel more disconnected from concepts like Ayurveda and traditional practices of maintaining healthy life. As they are the future spenders and decisionmakers, it is important to make them aware of the uniqueness and effectiveness ofsuch cuisines.

    Inventory Maintenance

    Since the philosophy of saatvik food focuses on maintaining the nutritional value ofthe food and avoiding any preparation technique which deteriorates the quality offood, there is very less carry forward of inventory in Sanjeevanam. Since they adoptthe technique of make to order for most of the food items, all of the processed food onany particular day is either consumed on the same day or is discarded. Sometimesinefficient planning results in preparation of food in excess quantity, which results insignificant losses.

    Supplies (such as fresh vegetables and fruits) are procured every day. This is a majorarea of improvement, as the overheads involved with transportation etc. can prove to

    be very costly if incurred every day. Major problem was identified with the availability of different food items mentioned

    in the menu card. Many instances of customers being denied of food item of their

    choice has been noticed, which has resulted adversely on the consumer experience.

    Restaurant layout and Settings

    The space for the restaurant dining area is about 600 square feet with seating capacityof 36 people. The arrangement of tables is such that at full capacity there is littlespace for the movement of waiters and stewards and this makes the space looks a bitcongested during peak hours.

    There is no place for people waiting for a table to get free or a parcel done, to beseated. Though not a major issue currently, in future as the business increases thismay have adverse effect on the profits.

    Being on the ground floor, the restaurant has the problem of receiving less of thenatural light during the day time. As the lights provided in the dining area are dim, italong with the color of the walls make the setting looks a bit dull and unenthusiastic.

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    Workforce

    As the number of waiters is just three, during peak hours this may result in increasedservice times. Also since the cooks require special training at the headquarters in

    Chennai, getting new cooks requires a process which could result in delays in case ofsudden requirement surges.

    6.2 Recommendations

    Based upon the analysis of the operations of the Sanjeevanam centre in Calicut, we were ableto identify a number of various problems and improvement areas, which we pointed out in thesection above . Keeping these issues in mind we hereby suggest certain specific action itemswhich can be undertaken in order to improve the efficiency of the day to day working of thecentre and make the centre more profitable:

    There is a need to spread the message of Ayurveda and benefits of the facilities provided by the centre to the people. This can be done through a number of ways:

    o Special food festival spanning for say a week or so can be conducted every sixmonths so as to educated people about the benefits of Ayurveda

    o Tie ups with work places like IT companies and educational institutes like IIMKozhikode and NIT Calicut can help in connecting with the young consumersection. Also since these young people form a major part of the money

    spenders in the region, it will increase the sales volumes by considerableamounts

    o Advertising through social networking sites like Facebook, Twitter and portalslike FoodGuide.com, Sulekha.com etc. can help in connecting with a largermass

    o Sponsorships of events like seminars by art of living etc. can prove to be ofmajor help as far as reaching to the right people is concerned

    o Targeting special needs of smaller consumer segments like specializing inJain food will help in developing a loyal customer base

    For more efficient inventory management it is recommended to procure freshvegetables and fruits twice a week. It is advised to have a refrigeration facility in theirspace to store the supplies for a period of 2-3 days. This measure will be helpful inreducing the overheads involved in procuring raw materials, which in turn will bringdown the cost of the food items

    For their daily estimation of food quantity demanded they should keep a record on theaverage demand of the various items on the daily bases. This data when accumulatedfor a period of about 6 months can be helpful in predicting the daily demand on each

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    day of the week so that more accurate estimates of the quantity can help in reducingwastage of semi processed and processed food

    The interior setting of the restaurant should be appealing and should it not look

    congested even in the peak hours of operations. For this, there should be provisionsmade for better lighting. More power saver CFL lamps can be brought in place of tubelights. Also During the daytime time, arrangements to allow natural light insideshould be made. Also the walls can be decorated with painting and pictures related tothe theme of the restaurant, say for example nature. Th ere should be space for freemovement for waiters during peak hours and some space should be kept for peoplewaiting for table or a parcel done

    They should also promote and advertise their home delivery service, as many peopletoday prefer food getting delivered to their door step, instead of wasting time ingetting to the restaurant and then waiting for food there

    To improve the availability of food items during peak hours it is advised that certain popular items on the menu be semi processed and stored to a level so that it is possible to use them over a larger range of final products. For example gravy base fora group of dishes can be prepared and stored for later use as and when demanded

    Maintaining a shelf for merchandized goods, behind the cash counter is a nice idea,and they should use more ways like pamphlets and table placards, to promote the

    sales of such products.

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