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Operations Management--Panera

Process Design Analysis
by

Tamar Moskowitz

on 30 April 2010

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Transcript of Operations Management--Panera

Panera
Process Design Analysis
by Jessica Levine, Nina Robinson, Jaclyn Rappaport, Tamar Moskowitz, Hannah White & Caitlin Deschenes-Desmond Panera Bread Background Bread Panera is a sit-down bakery and cafe designed for comfort, fashion and rejuvination. Each location includes 3 counters for the bakery, sandwich/soup/salad, and food pick up. There are two bathrooms, a generous number of tables of different sizes and shapes, and a fire place. One aspect of Panera that made it interersting to analyze is its unique processess design. We will take you through restaurant as we analyze its process flow, and all the aspects pertaining to it. Servicescape The physical environment influences the behavior and perception of the service for customers and workers
Ambience: informal, wifi, clear your own plate, music, carpet, fireplace

Spatial layout: roped cue, dining section, serve your own drinks, clear your own plate

Signs, symbols, artifacts: artwork, signs on the trash, pager system

Interpersonal service: customer co-production

Overall mood: stay for a while (but not too long), and do your part
Environmental dimensions Order Throughput Time Old Model (M/M/1) Two lines: Coffee OR Meals

Specific servers help specific customers

Two throughput times: 2 min. & 4 minutes New Model (M/M/C) One line: Coffee and Meals

Increase in servers, any server can help any customer

One throughput time: 2.5 minutes Waiting in Line! Customer-Server relationship:
Disconnect between counter and food order

Server tells customer where to go Throughput Time:
Wait for coffee 0 minutes

Wait time 2 minutes Service Concept:
Initial encounter is overwhelming in contrast with desired service concept Service Capacity:
Arrival Rate = 120 customers/hour on average day

People arrive in groups

Rush hour creates bottleneck

External circumstances (weather, sick days, etc) Time to Order! Customer-Server relationship:
Customer orders food, pays, and is given a buzzer.

This separates customer and server and allows the servers to focus on food preparation

while the customer can relax knowing that their wait is finite.

Service Concept:
Menu is interesting but complex

Items are only available certain days

If you're getting sandwich, soup, or salad:

1. Get a buzzer when you order

2. Wait with your buzzer

Throuput Time: 2.5 min. You Just Ordered...Move Away from the Counter! Service Concept:
Buzzer system
1. Can be alienating
2. Gives customer independence

Customer-Server Relationship:
1. Customer needs to use buzzer system to prevent crowding

2. In case the customer doesn’t come up in a timely fashion, a speaker is used as backup to call the customer’s name.

3. There are no Panera staff directing the flow of traffic and making sure table waiting and clearing are being done efficiently. Throughput Time:
Wait for Coffee-less than 1 minute
Wait for Table- 2minutes
Wait for Food-5minutes
Eat-30 minutes Done Eating? Clean Up! Customer-Server Relationship:
Once the customer is done eating, she has to take her dishes and trash to the clearing area and sort it (silverware in one bin, dishes in another, trash in another)

There is a sense that the customer is not rushed by staff to finish and clean, she cleans after herself and can take her time.

There is no guidance from staff, the customer is free to be on her own.
Service Concept:
This element of co-production (cleaning up after self) may liken the Panera experience to a fast food restaurant, reducing perceived quality. Alternatively, it does not impact server’s time working on the food preparation aspect of production. Throuput Time:
Sort & throw trash away- 1 minute Service Capacity:
Seating Capacity- 120customers/hour Now let's walk through a Panera, like a customer. We'll note customer-server relationship, service concept, throughput time & service capacity. What is the service concept at Panera?

To deliver hand-crafted, fresh and healthy comfort food
quickly in a friendly environment. Key:
xxxx- Queue
Red-Register
Orange-Booth seating
Light blue-Table & chair Seating xxxxxxx xxxx xxxx xxxxx xxxxxxxxxxxxxxx __________ Recommendations: Wait Time: 2 min Wait Time: 5 min CT: 2 min Clearer signs-indicate where the line is
Make the space behind the counter match the queuing system
Eliminate waiting for food at counter
Make pick up counter more accessable (not in corner)







1) "Uniformly acceptable performance provided to jobs regardless of the source on which the jobs arrive.”

2) Service scheduling issues are more apparent with technology

3) Seniority of tasks needed is important

Avi-Izthak, Benjamin and Hanoch Levy, “On Measuring Fairness in Queuing,” Advances in Applied Probability, Vol. 36, No. 3 (Sep., 2004), pp. 919-936.
Fairness in Queuing
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