Six Sigma for Pizza

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Hong Kong Baptist University
Professional Diploma in Quality Management Six Sigma and Quality Tools Group Assignment Report of

Six Sigma Project

Yum Yum Pizza Group

Group Members:

CHIU Chi Cheong, Ricky CHOI Kam Tong, Danny CHUNG King, Carmen FONG Luk Chi, Brian LEE Lai Fun, Fanny Wong Ming Chung, Victor

DQM03I2-004 DQM03I3-004 DQM03I3-021 DQM03I3-008 DQM03I3-022 DQM03I3-018

Report of SiX Sigma Project, Yum Yum Pizza Group

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1. Introduction 2. Define Phase 3. Measure Phase 4. Analysis Phase 5. Improve Phase 6. Control Phase 7. Conclusion

Report of SiX Sigma Project, Yum Yum Pizza Group

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Introduction Yum Yum Pizza group comprises of 10 pizza shops scattering in different areas in Hong Kong Island, Kowloon and New Territory as shown on the map below. Staff in each shop are basically organized with order receptionist, baker and delivery worker. On top of these 10 pizza shops, the leadership and management works are responsible by a management team. The core business is to produce pizza of various styles and deliver to their customers according to address of the order by phone. Of course, there are also self-pick up pizza available to the customers. However, this is merely involved about 10% of the overall business. Pizza Group Shops Location





P : Shop Location

Starting from early 2003, there were occasional customer feedbacks and complaints which were mainly involved unpunctual delivery of pizza. Since 90% of the business required our pizza delivery, the management began to pay attention on these feedbacks. During the half year review in June 2003, it was discovered about 3% loss of customers and about 5% drop in pizza sales in the same period. We immediately communicated the finding with the Management. Subsequently, a project team was set up to investigate the causes and seek for improvement on the situation. After the first

Report of SiX Sigma Project, Yum Yum Pizza Group

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project team meeting, it was agreed that the team would adopt Six Sigma strategy to determine the cause of the problem and implement the solution. Purpose of this report is to present the results of the pizza group’s problem-solving process and explain the solution adopted. As Six Sigma problem-solving includes statistical and measurement methods, by using the stools , we focused the efforts on understanding the variations in the business process and the defects that results: Customer satisfaction Revenue Quality Impact to employees Growth of business Competitive advantages.

This report also presents a detailed explanation of steps on how we used the six sigma problem-solving strategy ( i.e define, measure analysis, improve and control ) to determine the cause of losing customer , decreasing of pizza sales and to establish method in rectifying the faulty steps in our operation process. Lastly, with implementation of the fine-tuned process, reoccurrence of the defects can be minimized in order to maintain and enhance a sound pizza business operation.

Define Phase To the current practice, the time required for delivery of a pizza to customer was one hour on average. With concern on the customer complaints on unpunctual delivery, sales decreasing and number of customers was found reducing in the 6-months financial review in June 2003, undoubtedly, the pizza group had to take action to rectify the situation. At the beginning, we did not know what particular problem being existed in the business. A project team was therefore set up, by using six sigma strategy to tackle and rectify the problem. After the first project team meeting, a project team charter was formulated based on the management concern and displayed as below:

Report of SiX Sigma Project, Yum Yum Pizza Group

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Project Team Charter - Delivery performance of pizza Business Case Opportunity Statement Current average delivery time is one hour...
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