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HFT 4945 (B51HC) Advanced Internship Process Improvement Project

Chaplin School of Hospitality and Tourism Management Company: Jumbo Buffet Location: 13699 Biscayne Blvd, North Miami Beach, FL 33181 Project Title: Improving the Speed, Accuracy, Reliability, Cost Effectiveness and Flow of the Jumbo Buffet process. Prepared By: Zehao Xu Supervisor: Lisa Lin Supervisor Contact: (305)945-0881/ [email protected] Professor: Dr. Jumyong (Stephen) Lee, [email protected] Project Date: Summer 2018

My name is Zehao Xu. This project is an analysis of my workplace. Jumbo Buffet was founded by a Chinese family and has a 20-year history. But with time goes on, a number of problems have arisen, such as lack of innovation, ageing facilities and competition from other nearby buffets. After 10 weeks’ internship, I will make some suggestions for increasing restaurant revenue by improving the quality of food and services, customer satisfaction, and improving the aging of facilities.

Executive Summary

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Table of Contents Executive Summary ....................................................................................................................................... i Message from the Professor ....................................................................................................................... iii

Why we are using this method in the advanced internship class ........................................................... iii Criteria for the Project ............................................................................................................................ iii Project Grading Rubric ............................................................................................................................ iii

Define ........................................................................................................................................................... 1 Project Charter and Cost Benefit .............................................................................................................. 1 Current State Process Map ....................................................................................................................... 3 5 Why analysis .......................................................................................................................................... 4 SIPOC ........................................................................................................................................................ 5

Measure ....................................................................................................................................................... 6 Data Collection Plan/ Critical to Quality (CTQ)s ....................................................................................... 6 Data Collection Results ............................................................................................................................. 7 Competitive Set ........................................................................................................................................ 8

Analyze ......................................................................................................................................................... 9 Failure Modes and Effects Analysis .......................................................................................................... 9 Voice of the Customer ............................................................................................................................ 10 Voice of the Business ............................................................................................................................. 11 Waste Analysis – DOWNTIME - Types of waste: .................................................................................... 12 Root Cause Impact Analysis ................................................................................................................... 13 Potential Solutions ................................................................................................................................. 14

Improve ...................................................................................................................................................... 15 5S ............................................................................................................................................................ 15 Other Improvements to the Process ...................................................................................................... 16 Future State Process Map ...................................................................................................................... 17 Modification to Procedures Manuals (Or Establishment of) .................................................................. 17

Control ........................................................................................................................................................ 18 Entropy Force Analysis ........................................................................................................................... 18 10 Day Review (normally 6 months) ...................................................................................................... 19 Transition Plan ........................................................................................................................................ 20 Foresight analysis ................................................................................................................................... 20

Lessons Learned ......................................................................................................................................... 21 Supervisor’s Critique .................................................................................................................................. 22 References .................................................................................................................................................. 23 Overview of the main methods used. ........................................................................................................ 24

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Message from the Professor Why we are using this method in the advanced internship class Our internship students are within a semester or two of entering the workforce as managers. FIU’s Hospitality and Tourism Management School has included a structured internship as part of the curriculum for over a decade to assist students with this transition into management. A substantial part of the course has always included a project where the students were to improve the host company’s operations in a meaningful and lasting way.

Criteria for the Project • The project must be based on a real need in the company, and have the support of the student’s

supervisor. • Must be able to be completed to in 8 weeks or (40 hours)

Project Grading Rubric Project to be submitted via blackboard in PDF format for the final grade. Submitting the pre- grade or the final project late will result in a 5 point, per day penalty. Cf. This grading rubric is just for your information. Your score out of 100 points will be converted to 25pts maximum (your score/4 = your points for overall grade)

3 Executive Summary 2 Cover Photo 3 Table of Contents (updated) 8 Define 8 Measure 8 Analyze 8 Improve 8 Control 8 Lessons Learned +/- Supervisor’s Critique (can affect any or all scores) 10 References (Minimum of 10) APA Style 8 Appendices/ Support Documents (Minimum of 4 peer reviewed articles included) 10 Writing quality (Grammar, Spelling, Persuasive, Concise, Well transitioned) 8 Evidence of incorporation of FIU coursework throughout the document. (Students have completed coursework

in marketing, accounting, finance, sustainability, revenue management, cost control, human resources, property management, etc. The content of this analysis should reflect that background.

8 Tables, Charts, Photo documentation, video (optional), website, or other methods 100 Total

1

Define

Project Charter and Cost Benefit Project Charter

A single document which lists the scope and purpose of the project. Start Date 5/14/2018 Complete Date 7/27/2018

Project Name Improving the speed, accuracy, reliability, cost effectiveness of Jumbo Buffet process.

Company Jumbo Buffet Team Members Department Front of House Boyu Wang

Mengjie Wu Minggang Liu Jingtao Zhang Ting Liu Hao Zhao Zhaoxuan Li

Process Owner

Lisa Lin

Sponsor Lisa Lin Leader Zehao Xu Course Instructor

Jumyong (Stephen) Lee, Ph. D.

Problem Statement/ Business Impact Description: The biggest problem of Jumbo Buffet is the aging of the

facilities. The most obvious in the old air conditioning system, including noise pollution, poor cooling performance. It is a huge trouble for the restaurant’s normal daily running.

Project Goals Goal:

• Provide a good dining environment to customers. • Control costs with a more economical environmentally

AC system. • Try out best to keep regular customers and attract more

customers. • Improve customers satisfaction and open the market. • Bring more benefit to the restaurant.

Financial Benefits Benefits: Direct annual financial benefits

expected from the project:

Indirect benefits expected from the project:

AC will lead to save at least $2 per hour, $26 per day and $9490 per year.

Indirect benefits of improving this process include improve customer satisfaction and help restaurant keep regular customers and attract more customers.

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Scope What are the boundaries of the project (start and end steps of the process)? What is not included?

Start of the process

End of the process

What is not included:

The process begins with collecting data.

The process ends with finalizing all the data.

The process does not include observational review.

DMAIC Phase Schedule Start Define Measure Analyze Improve Control 5/22/18 6/13/18 6/22/18 6/28/18 7/13/18 7/18/18

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Current State Process Map Business Process Mapping

A graphic description of all unique parts of the process.

Take a seat and order the

drink Walk in

Why the restaurant is

so hot?

Leave the restaurant

Are they satisfied the AC system?

Pay the bill

Impressed with the

restaurant

Yes

No

Yes No

They won’t come again

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5 Why analysis 5 Whys/ Root cause analysis 5 why example

A technique where you keep questioning how a previous event or process could be at the heart of the final problem.

So many customers complain

Noisy and not cool

Restaurant have 20 years

of history

Old AC system

Customers are not satisfied with

the dining environment

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SIPOC SIPOC analysis (Suppliers, Inputs, Process, Outputs, Customers) SIPOC Example

A high level description of the key contributors to the process. Fully developing this list can reveal how one element of the overall process is out of synch with the rest of the process. Suppliers Inputs Process Outputs Customers Requirements -Kitchen supplies -uncooked food

-Cook food -Move food from kitchen to dining room

- Receive payment for service and food

- Restaurant guests

-Clean -Efficient

Confirm orders

Prepare serving plates

Confirm customer

satisfaction

Treat guest well

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Measure Data Collection

Measure key aspects of the current process and collect relevant data. Take both speed and variation measurements.

Data Collection Plan/ Critical to Quality (CTQ)s

Data Collection Plan Data

Source Operational Definition Data

owner Frequenc y

Measure of CTQ

Sample size

X1 The noise detection equipment

Detecting the noise of the restaurant every week to get the average.

Manager of FOH

Weekly Volume of noise

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X2 Host report

Average number of people who come to the restaurant every day.

Manager of FOH

daily Amount of customers at lunch time and dinner time

50

X3 Yelp Reviews

Online reviews of the restaurant. Some reviews contain information about the experience of customers.

Internet Periodic Complaints from clients related to environment

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X4 POS POS system can show the number of tables occupied.

Manager of FOH

Daily Shows current business turnover

50

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Data Collection Results Describe the results of each data collection. You must include narrative for each element of your data collection plan. Tables and charts should be included as often as possible as well. There is a video describing how to accomplish the charts with ease. Data Item 1 The average rate of noise for each operating day is from 80dB (noisy) to 100dB (annoyed and harmful to health. Data Item 2 250 in lunch and 100 in dinner (daily average). Data Item 3 Less than complaints about food quality. Data Item 4 85% tables are occupied at lunch time and 60% tables are occupied at dinner time.

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Competitive Set Provide a map of the five key competitors in the area

The five main competitors of Jumbo Buffet include: Ginza Japanese Buffet, Dragon Gourmet Buffet,

Tamura Japanese Seafood Buffet, CY Chinese Restaurant and Empire Szechuan Gourmet. Except CY

Chinese Restaurant and Empire Szechuan Gourmet, other three restaurants are buffet restaurant.

Firstly, let’s talk about Ginza Japanese Buffet and Tamura Japanese Seafood Buffet. These two

restaurants belong to a same owner. The decor and the food of the two restaurants are almost the same.

The biggest difference with Jumbo Buffet is that the two restaurants mainly serve sushi and fresh.

Therefore, the price is also more expensive than ours, about 20 dollars per person. From my experience of

dining at these two restaurants, the facilities should be newer than ours. There is no dissatisfaction in the

dining environment.

Dragon Gourmet Buffet is similar like Jumbo Buffet. It also was a Chinese Buffet. But the price is lower

than Jumbo Buffet. For the location, our restaurant is closer to the beach. So I think there will be more

tourists.

CY Chinese Restaurant and Empire Szechuan Gourmet is not buffet. But I think they are also our

restaurant’s competitors. For this kind of restaurant, the price must higher than our restaurant. The quality

of food is better than buffet restaurant because they are not mass production. The environment of CY

Chinese Restaurant is worse than us. But for Chinese students and residences in this area, only have this

options. So the restaurant environment has little effect on him.

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Analyze

Analyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation.

Failure Modes and Effects Analysis Failure mode and effects analysis (FMEA)

List the potential failures and their effects. Type of Failure Mode (the specific

way the failure occurs)

Effect (immediate consequences)

Valence (Seriousness) 1low-10 High

The food is not good Sometimes guests will find hair in the food, or the food is not cooked, the food is not fresh, etc.

Guests will think that this restaurant has a problem with the sanitation. They won't come to this restaurant again.

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The cashier give a wrong change to customers

At some very busy times, the cashier easily to give a wrong change to customers.

Customers will become very angry.

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Sometime customer escape without paying.

Because customer pay the bill after they finish, in some very busy hours, some people are easy to escape without paying.

If the guest does not check out, their server will be responsible for paying their bill. Their negative emotions will reduce productivity and quality.

0

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Voice of the Customer Voice of the Customer

Description of the results of your customer study regarding how they view your specific problem. You may have conducted interviews, reviewed comment cards, or utilize peer reviewed evaluations of your customer base. If your company has market research, it can also help you understand the voice of your customer. Recommend reviews:

Bad reviews:

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Voice of the Business Description of how the stakeholders in your business see the problem. Utilize interviews, exit

interviews from managers, current employees, separating employees, peer reviewed journal

articles, and direct observation.

In the food and beverage industry, buffets are a simple and profitable option to serve customers.

Buffet restaurant usually supply food in an unlimited amount. Customers can get all the food at a

low price. Buffets are popular in major cities across the country, especially popular with families

and small groups as they can enjoy food at reasonable prices.

When I talk to the boss, a 60-year-old Chinese man, he was an outdated and frugal Chinese who

came to the United States at the age of 20. His marketing philosophy is to attract more whole

class customers at a low price. More importantly, he is not willing to shut down for a few days to

upgrade the aging facility.

When discussing with my boss, supervisor and colleagues, we all realized that the dining

environment in our restaurant is crucial. This includes lighting, artwork, spacing, music, and of

course noise levels. The World Health Organization defines noise as a serious health hazard.

Noise will not only seriously affect the dining experience of the guests, but also endanger the

health of the employees. It affects work efficiency, damages hearing, visual organs, lack of

concentration, and damages cardiovascular. Noise can also cause disorders such as nervous

system disorders and mental disorders. In order to maintain employee satisfaction and work

efficiency, I believe that the noise level should be controlled. Now let's consider the noise

problem of our customers. The second most common complaint of restaurant customers is noise.

Noise is one of the most annoying issues when dining. The quality of service was poor, followed

by bad food. The ideal level for normal calls is between 55 and 65 dB. If we consider normal

restaurant noise, our restaurant moves to about 70 decibels. At this point, our customers must

improve their voices to be heard. At 75 dB, the call is difficult and can cause damage at 85 dB.

While all of this provides a reason for a “quiet” restaurant, many owners have purposely created

a noisy restaurant. They think noisy can make restaurant looks very lively.

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Waste Analysis – DOWNTIME - Types of waste: DOWNTIME analysis

DOWNTIME is an acronym used to describe the potential sources of waste. Look at your process and see if any of these sources are at work reducing the efficiency and effectiveness of your process.

• Defects (the effort involved in inspecting for and fixing defects)[17]

o Restaurants need to spend money to hire professionals to check all facilities, buy

new accessories and redesign and install

o During this time, the restaurant must be closed. This means that the restaurant’s

income will be 0 during this period.

• Overproduction (production ahead of demand)

o Not only the air conditioning system need to be replaced, the other equipment and

decoration style of the restaurant is too old, and it needs to be redesigned and

installed.

• Waiting (waiting for the next production step)

o Waiting for the permission from relevant departments before constructing and re-

open

• Non-utilized resources/ talent or employee unused creativity or productivity

o During the renovation, although the restaurant is not open, it is also should pay

rent.

• Transport (moving products that is not actually required to perform the processing)

• Inventory (all components, work in process and finished product not being processed)

o Almost all restaurants have a lot of stock to ensure ample supply. This will cause

some fresh food will be wasted

• Motion (people or equipment moving or walking more than is required to perform the

processing)

o All the equipment should be moved to another place.

• Excess Processing

o The price of the buffet must be raised after redesign.

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Root Cause Impact Analysis List the root causes identified in your process chart, 5 Why analysis, and Voice of the business. Rank the root causes based on how critical they are to address. Root Cause Impact

(0 low, 10 High)

To Improve (Yes, No)

So many customers complain 9 Yes

Customers are not satisfied with the dining environment 10 Yes

Noisy and not cool 9 No

Old AC system 9 Yes

Restaurant have 20 years of history 7 No

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Potential Solutions High Impact to improve

the process Low Impact to improve the process

High Feasibility of accomplishing

Must do Clean up list

Low Feasibility of accomplishing

Wish list or Phase 2 Time waster

List of 5-10 potential solutions to the problem in order of feasibility Immediate Feasibility (10 High, 1 Low)

Impact (10 High, 1 Low)

Potential Solutions

Result

9 5 Play some slow-paced music in the hide to create a relaxed atmosphere

Phase 1

5 8 Use carpet or noise-absorbing materials to reduce noise decibels

Phase 1

10 6 Stick the sign about noise level on the wall. Phase 1 6 10 Replace some old equipment. These equipment

usually make a lot of noise Phase 2

4 10 Regularly check the air conditioning system to create a comfortable dining environment for guests

Phase 2

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Improve poka yoke or mistake proofing, 5S, 5S 2

Improve or optimize the current process based upon data analysis. (Evidence Based Decision Making)

5S

Sort (Seiri) Review tools, parts, steps and instructions. Keep only what is necessary. Set In Order (Seiton) Arrange items in order, categorize or place items correctly, keep items in the area of use. Shine (Seiso) Reduce hoarding and clutter. Clean work areas or processes regularly, returning items or files to their assigned place. Standardize (Seiketsu) Make standards which are easy to understand. Use visual controls, checklists, work instructions, labels, and process diagrams. Systematize or Sustain (Shitsuke) Implement new ways of monitoring and measuring the process. Implement effective feedback and continuous process improvement loops.

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Other Improvements to the Process l Place ice and soda machines away from the main dining areas. We can even purchase one with a

roof-mounted condenser to soften the sound.

l Use some toys to distract the attention of children to avoid they cry. Provide a good dining

environment for other customers.

l Give discount to the regular customer who don’t satisfied the environment of dining to keep

regular customers.

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Future State Process Map Business Process Mapping

A graphic description of all unique parts of the newly designed process including new internal controls to ensure control. Problem: Rooms which are identified in the database as clean are in fact dirty.

Take a seat

and order the drink

Walk in Are they

satisfied the AC system?

Pay the bill

Impressed with the

restaurant

First apologize. Told the manager

and supervisor about the

complains and give a discount

Yes

No

Check the facilities and find the root

cause the problem

Maintain or replace all the old equipment

Leave the restaurant

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Modification to Procedures Manuals (Or Establishment of) • Prepare a survey to keep up to date with customer satisfaction. • Managers should always check the customer’s comments on the website such as Yelp and

Google.

Control control systems such as statistical process control, Control chart

Control future state process to ensure that any deviations from target are corrected before they result in defects. Implement control systems such as statistical process control, and continuously monitor the process.

Entropy Force Analysis Entropy: The tendency of things to fall apart

Describe those natural forces, if not managed that will cause the process to fail again in the future. These forces should be established in the Measure and Analyzed phases. Force Corrective Action Employees are not responsible. They are easy to be lazy because they think it’s not related to their profit.

The manager or supervisor reminds the staff at all times and asks the situation regularly.

Manager want to save money. They usually don’t want to spend money to make some big changes.

They should analysis the relationship between investment and profit and establish a new rule.

Don’t maintain facilities if nobody complains.

Everything should maintain regularly to prevent aging acceleration.

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10 Day Review (normally 6 months) Conduct observational review of the process 10 days after the completion of the Improve phase.

Measure the rate of defects at this point. Describe the results of what you found.

Since this is a complicated project, it will take one or two months to complete it even start from

now. Moreover, my manager needs time to calculate and consider. So it can't be observed.

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Transition Plan Turn over the new process to the process owner. Explain to them what you found and what measures will have to be taken to keep the new process running effectively. Document your conversation here. Process Review Schedule Establish a timeframe and a rationale for how often the process should be reviewed/ measured in the future. This should be based on your Entropy Force Analysis Me: Good morning MS. Lin. Thank you for giving me this opportunity to communicate with

you. I would like to show you my recommendations to improve the speed, accuracy, reliability,

cost effectiveness and flow of the Jumbo Buffet.

Lin: Ok. Give me some times and I will take a look at your project.

Me: No problem.

Lin: Hi Zehao. I found your subject is pretty good. I also consider about this problem recently.

This is a good suggestion. This can help us bring a lot of benefits to the restaurant. But the

specific costs and benefits are my biggest concern. If you have time, we can calculate it together.

I think this can help you learn faster.

Me: That’s a good idea. Thank you.

Foresight analysis In this section, please describe how you see the problem you addressed playing out in 5 and 25

years.

In 5 years, I think the change is not big than now. The buffet is still the popular style of the food

and beverage industry. But if the restaurant still doesn’t maintain and replace old equipment, the

restaurant will start to go down. During my internship, many guests complained to me, why your

air conditioner system is not cooling? Your speakers are so bad that I can't even hear what is that.

The only thing I can do is to say sorry to them at this time, because I can't do anything about it.

But if the manager is willing to spend one or two months, renovating the entire restaurant, and

then increasing the price a little bit, I think the profit will increase by at least 20%. The low level

of hardware in the restaurant is also the reason why they keep the low price.

In 25 years, I am not sure what it will be. But I think that the buffet will not become the most

popular style at that time. As the quality of life improves, I think more and more people will go

to the restaurant to order some food that suits their taste.

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Lessons Learned

This is my first job in the US. First of all, I have learned the difference in income levels between

China and the United States. Working in the service industry also allowed me to understand and

accept the tipping culture of the United States more quickly. After this internship, not only I earn

money, but I also accumulated a lot of experience and knowledge. I have learned how to deal

with some situations, which may not be my responsibility. The environment of the restaurant

influences the customer's dining experience, which affects the profitability of the restaurant. If

the noise level is uncomfortable, our customers will not be able to enjoy their experience. They

won't go back to our restaurant or recommend it to others. Even if our food is delicious, guests

don't want to stay in a noisy environment. Therefore, I think managers should consider our

comments.

After the final project, I have more confidence to change the situation of the restaurant. I think

the most useful method is process map. It can more intuitively see the whole problem, what

caused this problem, and what will happen to this problem. This assignment also taught me a lot

of ways to analyze the problem, although I feel this is not that simple for me. I believe that in the

future work, I can definitely improve my work efficiency.

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Supervisor’s Critique I did this project with our supervisor Lisa Lin. But this month she went on a trip. So I show this project to our manager David Huang. I think giving this project to someone who has never been seen can reflect real ideas. So that’s the reason why he does’t very agree.

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References (2013, April 15). Hcareers. 10 Top Characteristics of Successful Restaurant Managers in the U.S.. Retrieved June 29, 2018, from https://www.hcareers.com/article/career-advice/10-top- characteristics-of-successful-restaurant-managers-in-the-us-2013 Lin, G. (2017, June 30). Baidu. Environmental noise pollution. Retrieved July 27, 2018, from https://baike.baidu.com/item/环境噪声污染/8950481 Ha, E. (2017, December 09). Sohu. How important is a quality dining environment to a restaurant. Retrieved July 15, 2018, from https://www.sohu.com/a/209411058_99914446 Gaskin, Stephen P. et. al. "Voice of the Customer" (PDF). Massachusetts Institute of Technology. Massachusetts Institute of Technology. Retrieved 2018-03-25 (2013, November 5). Wikipedia. Business process mapping. Retrieved July 11, 2018, from https://en.wikipedia.org/wiki/Business_process_mapping Belluz, J. (2018, April 12). Vox. Why restaurants became so loud — and how to fight back. Retrieved July 19, 2018, from https://www.vox.com/2018/4/18/17168504/restaurants- noise-levels-loud-decibels (n.d.). Conserve. HEATING AND COOLING SYSTEMS. Retrieved July 19, 2018, from https://conserve.restaurant.org/Best-Practices/Conserve-Energy/Heating-and-cooling-systems (n.d.). Goodway technology. Preparing your restaurant's HVAC systemfor the summer heat. Retrieved July 18, 2018, from https://www.goodway.com/hvac-blog/2012/04/preparing- your-restaurants-hvac-system-for-the-summer-heat/ Magazine, F. (2014, May 25). Why Ambience Is Important In Your Restaurant. Retrieved July 1, 2018, from http://www.fantasticmanmagazine.com/why-ambience-is-important-in-your- restaurant/ Lin, V. (2016, May 12). Yelp. Jumbo Buffet. Retrieved July 28, 2018, from https://www.yelp.com/biz/jumbo-buffet-north-miami-beach?start=20 Contributor, S. (2018, June 29). Using the SIPOC Diagram to Improve Restaurant Processes. Retrieved July 25, 2018, from https://www.shmula.com/26045-2/26045/

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Overview of the main methods used. • Accelerated life testing • Analysis of variance • ANOVA Gauge R&R • Axiomatic design • • Cause & effects diagram (also known as

fishbone or Ishikawa diagram) • Check sheet • Chi-square test of independence and fits • • Correlation • CTQ tree • Design of experiments • General linear model • Histograms

• Pareto analysis • Pareto chart • Pick chart • Quality Function Deployment (QFD) • Quantitative marketing research through

use of Enterprise Feedback Management (EFM) systems

• Regression analysis • Run charts • Scatter diagram • Stratification • Taguchi methods • Taguchi Loss Function • TRIZ