3.21 service operation management
Background of Subway
A large fast-food franchise primarily focusing on submarine
sandwiches (Subway, no datea).
First store opened in 1965 and expanded to 16 locations by 1974
(Subway, no datea).
The company experienced growth after deciding on franchising
(Subway, no datea).
Largest submarine sandwich chain boasting more than 44,000 branches
worldwide (Subway, no datea).
I chose to cover Subway Hednesford identifying its service concept
and operations.
I’ve identified problems in the operations of the branch.
Background- Service concept
Adapted from
Johnston, Clark
and Shulver
(2012)
Background- Layout Functional
layout – low-
volume, high
variety (Slack
and Brandon-
Jones, 2019).
Based on own experience
Background- Service processes
Branch operates
a process focus
strategy (Heizer,
Render and
Munson, 2017).
Adapted from Johnston, Clark
and Shulver (2012)
Background- Process map
Process times
may vary due
to decisions
(Rowbotham,
Galloway and
Azhashemi,
2007).
Adapted from
Heizer, Render
and Munson
(2017)
Problem analysis
Service supply chain
justification
Service supply chain is “a wide concept that covers businesses dealing with things such as the supply of spare parts, third-party providers, finance, insurance, retail and governmental services” (Arlbjørn, Freytag and de Haas, 2011, p. 279).
Address the problem of inaccurate online orders through third party delivery companies.
Pareto analysis results showed this was the biggest problem.
The restaurant can improve in Service supply chain.
Adapted from Heizer, Render and Munson (2017)
Service layout justification
Service layout is one of the
decisions that determines the
efficiency of operations (Heizer,
Render and Munson, 2017).
Address the lack of customer
toilets.
Pareto analysis showed that
the lack of customer toilets is
a significant issue.
The branch can improve in
the service layout area.
Adapted from Heizer, Render and Munson (2017)
Research objectives
1. Identify the most significant problems of Subway Hednesford’s
operations (Wright and Mechling, 2002).
2. Focus on the Service supply chain aspect of Subway Hednesford
and identify ways to improve in this area (Arlbjørn, Freytag and de
Haas, 2011).
3. Focus on the Service layout aspect of Subway Hednesford and
identify ways to improve in this area (Heizer, Render and Munson,
2017).
Resources and data
Data Source
Secondary research and personal
experience to identify problems
with Subway Hednesford’s
operations.
Google reviews (Appendix A, B
and C), Personal experience
Research to find out which
problems were the most
significant.
Questionnaire (Appendix D)
Research to find out which
solutions were the most effective in
solving the problems.
Questionnaire (Appendix E)
Research to complete cost-benefit
analyses of the chosen solutions.
Various websites and estimation.
Problem 1 analysis: Inaccurate online
orders via third party deliveries
Customers may receive the wrong order or a lack of items, leading to a decline in service quality (Goh et al., 2017).
Communication and cooperation isn’t the best and there’s no direct communication (Keeble et al., 2020).
Adapted from
Johnston, Clark
and Shulver (2012)
Problem 1 solution: Cross
training staff
Criteria Total
Solution Descripti
on
Amount
of
investm
ent
required
Impact
on the
problem
Time
required
to
impleme
nt the
solution
Applica
bility of
the
solution
Weight 2 (0.2) 4 (0.4) 1 (0.1) 3 (0.3) 10 (1)
1 Three
way
commu
nication
messagi
ng
56 64 57 65 61.8
2 In-house
delivery
53 71 51 62 62.7
3 Cross
train
staff
52 72 49 69 64.8
Adapted from Faulconer, Faulconer and Hanamean (2019)
Solution explanation
Cross training staff would involve the branch training members of
staff to perform other tasks more effectively (Bokhorst, Slomp and
Molleman, 2004).
Not all team members may have the best communication skills or
team building skills – training courses may be necessary (Pratchett et
al., 2016).
Solution 1 cost benefit analysis
Refer to Appendix F for
cost calculations
Problem 2
analysis: Lack of
customer toilets
Customers unable to
access a toilet leads to
a decline in service
quality (Ryu, Lee and
Kim, 2012).
The branch size may
be the root cause of
the problem.
Local authorities
could force the
branch to install a
toilet under the 1976
Local Government
Miscellaneous
Provisions Act
(Ramaswamy, 2016). Adapted from Slack
and Brandon-Jones
(2019)
Problem 2 solution: Reducing
seating and install a toilet Criteria Total
Solution Descripti
on
Amount
of
investme
nt
required
Impact
on the
problem
Time
required
to
impleme
nt the
solution
Applicab
ility of the
solution
Weight 2 (0.2) 4 (0.4) 1 (0.1) 3 (0.3) 10 (1)
1 Reduce
seating
and
install
toilet
46 88 38 73 70.1
2 Direct
customer
s to other
shops
71 38 72 46 50.4
3 Allow
customer
s to use
staff
toilets
71 55 65 36 53.5
Adapted from Faulconer, Faulconer and Hanamean (2019)
Solution 2 cost benefit analysis
Refer to Appendix G for cost
calculations
Service supply chain conclusion
To summarise, the Pareto analysis and Fishbone chart highlighted
the problem of inaccurate online orders via third party food
deliveries.
Decision matrix shown cross training staff is the best solution.
Cost-benefit analysis shows the benefits may outweigh the costs.
I recommend that Subway Hednesford implement this solution.
Service layout conclusion
To summarise, the Pareto analysis and tree diagram shown that the
lack of customer toilets was a big issue.
Decision matrix shown reducing seating and installing a toilet is
effective.
Cost-benefit analysis shows that the branch can increase sales in
the long term.
I recommend that Subway Hednesford implement this solution.
Thank you very much
for listening to this
presentation
References
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Arlbjørn, J.S., Freytag, P.V. and de Haas, H. (2011) ‘Service supply chain management: A survey of lean application in the municipal sector’, International Journal of Physical Distribution & Logistics Management, 41(3), pp. 277-295.
Bokhorst, J.A.C., Slomp, J. and Molleman, E. (2004) ‘Development and evaluation of cross-training policies for manufacturing teams’, IIE Transactions, 36 (10), pp. 969- 984.
Brooks, A. (no date) PRICE GUIDE: HOW MUCH TO BUILD A DOWNSTAIRS TOILET EXTENSION. Available at: https://www.bellabathrooms.co.uk/blog/how-much-to- build-a-downstairs-toilet-extension/ (Accessed: 17 April 2021).
Djekic, I., Kane, K., Tomic, N., Kalogianni, E., Rocha, A., Zamioudi, L. and Pacheco, R. (2016) ‘Cross-cultural consumer perceptions of service quality in restaurants’, Nutrition & Food Science, 46(6), pp. 827-843.
Faulconer, E.K., Faulconer, L.S. and Hanamean, J.R. (2019) ‘Arriving at a Better Answer: A Decision Matrix for Science Lab Course Format’, Journal of College Science Teaching, 48(4), pp. 31-35.
References
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Goh, S., Ng, S., Wong, S. and Chong, L. (2017) ‘OUTSOURCING TO ONLINE FOOD DELIVERY SERVICES: PERSPECTIVE OF F&B BUSINESS OWNERS’, Journal of Internet Banking and Commerce, 22(2), pp. 1-13.
Google Maps (2019) All reviews. Available at: https://www.google.com/maps/place/Subway/@52.709747,- 2.0026315,17z/data=!4m7!3m6!1s0x487a75350345054b:0x59d390251cc2e8ee!8m2!3d52.7 09747!4d-2.0004428!9m1!1b1 (Accessed: 8 April 2021).
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Hamilton, R.W., Rust, R.T. and Dev, C.S. (2017) ‘Which Features Increase Customer Retention?’, MIT Sloan Management Review, 58(2), pp. 79-84.
References
Hedges, A.R., Johnson, H.J., Kobulinksy, L.R., Estock, J.L., Eibling, D. and Seybert, A.L. (2019) ‘Effects of Cross-Training on Medical Teams’ Teamwork and Collaboration: Use of Simulation’, Pharmacy, 7(1), pp. 1-10.
Heizer, J., Render, B. and Munson, C. (2017) Operations Management: Sustainability and Supply Chain Management. 12th edn. Harlow: Pearson Education Limited.
Johnston, R., Clark, G. and Shulver, M. (2012) Service Operations Management: Improving Service Delivery. 4th edn. Harlow: Pearson Education Limited.
Jones, D. (2020) All Reviews. Available at: https://www.google.com/maps/place/Subway/@52.709747,- 2.0026315,17z/data=!4m7!3m6!1s0x487a75350345054b:0x59d390251cc2e8ee!8m2!3d52.70 9747!4d-2.0004428!9m1!1b1 (Accessed: 5 April 2021).
Keeble, M., Adams, J., Sacks, G., Vanderlee, L., White, C.M., Hammond, D. and Burgoine, T. (2020) ‘Use of Online Food Delivery Services to Order Food Prepared Away-From-Home and Associated Sociodemographic Characteristics: A Cross-Sectional, Multi-Contrary Analysis’, International Journal of Environmental Research and Public Health, 17(14), pp. 1-16.
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References
Morgan, V. (2020) All reviews. Available at: https://www.google.com/maps/place/Subway/@52.709747,- 2.0026315,17z/data=!4m7!3m6!1s0x487a75350345054b:0x59d390251cc2e8ee!8m2!3d5 2.709747!4d-2.0004428!9m1!1b1 (Accessed: 8 April 2021).
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Paul, J.A. and MacDonald, L. (2014) ‘Modelling the benefits of cross-training to address the nursing shortage’, International Journal of Production Economics, 150, pp. 83-95.
Pratchett, T., Young, G., Brooks, C., Jenkins, L. and Monagle, H. (2016) Practical Tips for Developing Your Staff. London: Facet Publishing.
Ramaswamy, C. (2016) ‘Why a new toilet law could flush cafes and takeaways down the pan’, The Guardian, 18 May. Available at: https://www.theguardian.com/lifeandstyle/shortcuts/2016/may/18/new-toilet-law- flush-cafes-takeaways-down-the-pan (Accessed: 8 April 2021).
Rowbotham, F., Galloway, L. and Azhashemi, M. (2007) Operations Management in Context. 2nd edn. Oxford: Butterworth-Heinemann.
References
Ryu, K., Lee, H. and Kim, W.G. (2012) ‘The influence of the quality of the physical environment, food and service on restaurant image, customer perceived value, customer satisfaction, and behavioral intentions’, International Journal of Contemporary Hospitality Management, 24(2), pp. 200-223.
Slack, N. and Brandon-Jones, A. (2019) Operations Management. 9th edn. Harlow: Pearson Education Limited.
Subway (no datea) The History of Subway®. Available at: https://www.subway.com/en-GB/AboutUs/History (Accessed: 2 April 2021).
Subway (no dateb) Menu. Available at: https://www.subway.com/en- GB/MenuNutrition/Menu (Accessed: 2 April 2021).
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References Victorian Plumbing (2021b) Armitage Shanks Sandringham 21 2TH Basin & Pedestal. Available at:
https://www.victorianplumbing.co.uk/armitage-shanks-sandringham-21-2th-basin-pedestal (Accessed: 17 April 2021).
Victorian Plumbing (2021c) Bristan - Club Basin Taps - Chrome with Metal Heads - VAC-1/2-C-MT. Available at: https://www.victorianplumbing.co.uk/bristan-club-basin-taps-chrome-with-metal- heads-vac1-2cmt (Accessed: 17 April 2021).
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References
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Yang, K.K. (2007) ‘A comparison of cross-training policies in different job shops’,
International Journal of Production Research, 45(6), pp. 1279-1295.
Appendices Appendix A- Google review 1
Jones (2020)
Appendix B- Google review 2
Google Maps (2019)
Appendix C- Google review 3
Morgan (2020)
Appendix D-
Problem survey
Appendix E-
Solution survey
Appendix E
Appendix E
Appendix E
Appendix E
Appendix F:
Solution 1 cost
calculations
Appendix G:
Solution 2
cost
calculations