Pizza Hut

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Executive Summary

The operations standards are the key path defining elements in any business. Without set procedures optimal results cannot be obtained.

The operations standards at pizza hut have multifaceted challenges and opportunities. The standards and procedures for doing business are well defined but some of the possible factors can cause to the deviations and variances. Those possible factors can be eradicated through extra efforts into the process. However the small chances of variance will remain the same because the real business scenarios may vary sometimes than the forecasted one.

This report is an attempt to investigate the operational standards and the possible causes of variance in standards and how does it affect customer satisfaction.

Introduction Operations management

Traditionally it is believed that the operations management is as a transformation process that takes set of inputs and transforms them into the out put. The output can be the goods or services. This includes the effective planning, scheduling and control of the activities that produce the required outcomes. (Cecil C. Bozarth, Robert B. Handfield, 2008)

Operations management plays a key role in determining the success or failure of an organization. To carry forwards the inputs of each unit all together and getting turned it into the outputs is the real synergy, which helps organization to set the directions towards climbing the heights of success.

According to the William J. Stevenson as he state in his operations management book ‘Operations management is the management of the system or process that create goods and/or provide services’ this involves various inputs, he add, ‘ the creation of goods or services involves the transformation or conversion of inputs into outputs. Such as capital, labour and information are used to create goods or services using one or more transformation processes’. Although the goods and services go hand in hand, there are some very basic differences between the two. This can be determined through its nature of the business. Some organizations can have higher degree of tangibility or intangibility. This can be determined through its nature of business. For instance, if the organization is selling goods, it can be determined high level of tangibility and otherwise if its selling services then level of intangibility will be high. (William J. Stevenson 2005)

Operation standards at Pizza Hut
Functional Units

The activities of business organizations are mostly divided according to the functionality, the management of the personnel and the responsibilities. (Joseph S. Martinich, 1997)

The operations at Pizza hut can not be highlighted for any of the single functional unit. Rather it is the collection of several set of the activities that take place with in the unit and make things possible by turning customer expectations into the reality.

The success or the failure of the product depends on the performance of several functional units. Those functional units operate separately but connected with each other through the job activities. The unit’s operation standards are discussed further down.

The taste and the quality highly determine on the freshness of the ingredients, and the resultant the happiness of the customers. According to the Deputy Manager of Pizza hut, ‘If, there is variance observed in the product quality that will overall affect productivity and finally the customer satisfaction level. This is not acceptable at all’. He added, ‘if company is spending a huge amount of money on the product promotions and marketing activities that is for the business. And also company provides the training to the employee to how to maintain the product quality. So every single person should have to ensure the quality of the product and happy customer makes more return in the...
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