Pizza Hut Delivery! An Operational Analysis of the

Delivery System Asuncion, Dalman, Doromal, Dy,

Generoso, Mejia, OngMay 11, 2010

Overview, Process

• 2 main areas– Customer relations station– Actual Pizza Hut branch

CRS • Customer info– first information that is

automatically asked is the customer’s phone number

– If the customer has previously used the service, the system will automatically recognize the phone number • then proceeds to take down

the customer order, verifies that all order is complete and correct, and informs the caller the total price. If not, the process repeats itself

CRS

• If new customer– call back after 2-5minutes to verify the customer

information and order

• Order time is targeted at 2 minutes or under

Actual Pizza Hut Branch• electronic call order slip

is received by the branch and is automatically printed out – pre-order employee

monitors these requests

• pre-order team – assembles the basic

ingredients of the pizza– prepare time is targeted

at 2 to 2 ½ minutes tops

Actual Pizza Hut Branch

• “Make Pizza” stage– oven for over 5 to 5 ½ minutes tops– then cut and dispatched, including cutting the

pizza into slices, packaging it into the appropriate box and sealed, assembling the other orders (i.e., a liter of soda), and all the condiments that go with it• done in 3 ½ minutes or less

Actual Pizza Hut Branch

• package is then given to the delivery personnel who take the pizza to the desired location

• The total process of making the pizza once the call order slip has been received to actual delivery should be 30-45minutes or less.

Delivery

• When the delivery person reaches the destination– protocol mandates that

he presents each order to the caller

– If everything is satisfactory, customer proceeds to receive everything and pays for the food• cash, EPS, or credit card

9

CUSTOMER CUSTOMER SERVICE CENTER

PIZZA HUT BRANCH

Total Cycle Time:

Min.: ___min

Max:___ min

Ave.: ___min

Total Distance Traveled:

Min.: ___m

Max.: ___m

Ave.: ___m

START

Call 911-11-11

A

A

Call routed to CSR

CSR gets contactdetails and order

First time caller?

B

C

Call verify

N

Y

B Call Order Slip C

Prepare time

Make Pizza

Cutting and Dispatching

Delivery

Delays? D

Branch Mgr coordinates

N

Y

C

D

Correct and in good

condition?

EN

Y

E

END

Order complete and

correct?A

N

Y

O.R. presented to customer

Receives and pay

Mudas1. Delay in taking

down the order– Communication-

related problems

Mudas 2. Delay in making the pizza– Different

promos presents several difficulties for personnel to produce • i.e. sausage-

filled crust w/ cheese dips

Mudas 3. Delay in delivery– motorvehicle

may not have enough gasoline

– heavy motorist traffic

Mudas– delivery man may not

have enough “load” or credits for his cellphone to call if:• He could not find the

place of delivery • He is outside the

customer’s house but there is no one to receive the food delivery

Mudas• there is no

definite queuing system for assigning who will deliver the food next

Countering the Mudas

• With regards to taking the customer’s order– ask clarificatory questions – ask the customer to speak more clearly

• With regards to making the pizza– Strategize the work table/environment.– Study the overall lay-out and experiment with

different arrangements.

• **these two countermeasures are not corrected with regards to the flow of the system

Countering the Mudas

• With regards to the delivery: additional steps or sub-operations along with the overall flow– rider is already assigned by the time the orders

have been cooked– motorcycle has already been checked and is ready

for the next departure – rider has enough cellphone credits to make a call

and text – rider knows the route to the place of delivery

17

CUSTOMER CUSTOMER SERVICE CENTER

PIZZA HUT BRANCH

Total Cycle Time:

Min.: ___min

Max:___ min

Ave.: ___min

Total Distance Traveled:

Min.: ___m

Max.: ___m

Ave.: ___m

START

Call 911-11-11

A

A

Call routed to CSR

CSR gets contactdetails and order

First time caller? B

C

Call verify

N

Y

BCall Order Slip and assign a rider for the

delivery

C

Prepare time while rider checks motorbike, phone, and route

Make Pizza

Cutting and Dispatching

Delivery

Delays? D

Branch Mgr coordinates

N

Y

C

D

Correct and in good

condition?

EN

Y

E

END

Order complete and

correct? A

N

Y

O.R. presented to customer

Receives and pay