Ace Institute of Management eMBA-Fall 2010, 2nd Semester Subject: Operations Management
Group Case Study #2: 100 YEN SUSHI HOUSE
Submitted to: Mr. Bishal Shrestha
Submitted By: Ananta Mallik Nirmal Bahadur Raut Rina Maharjan Biraj Pradhan
Date: September 16, 2010
Q.2 What features differentiate 100 Yen Sushi House and how do they create a competitive advantage?
Answer:
Though there are many fast food restaurants in Japan, but due to some remarkable product and service differentiation, 100 Yen Sushi House has created it¶s unique brand name of ³most productive operation in Japan´. Here are some major differentiating features: 1.
Production-Line
Approach:
In
100 Yen Sushi House the customers are always included in the production line. Customer can enjoy observing the cooks preparing Sushi, can make their soya sauce as per their own choice and enjoy watching train of food revolving on the conveyer belt (without need of waiter). This creates a good competitive advantage for them. 2.
Pull
approach
Pull
system applied by the company instead of Push system also giving competitive advantage to them. The rate at which customers enter the restaurant, remove dishes from the food train, and leave the restaurant determines the flow of the delivery process. This allows them to match the preparation of particular foods to the demand for them, thereby eliminating waste.
3.
Cozy
Environment:
The very cordial environment with greetings by every employee of the restaurant while entering and going out gives a different filling to customer. Active participation of all the employees, including the owner makes the environment free cozy and giving competitive advantage. 4.
Price
The flat 100 Yen cost for every item (even for costly item like salmon) is also giving them competitive advantage. There idea to vary the quantity not the price is the major differentiation. Similarly their simple process of customer billing by just counting the used plates and multiply by 100 is also a very unique and competitive approach. 5.
JIT
and Quality control system
The company¶s Just-in-Time (JIT) approach to buy fresh fish several times a day without any inventory and removal of the unsold sushi plates longer than 30 minutes and careful watch by every staff for quality is also a major d ifferentiating factor for competitive advantage.
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6. Human Resource
The labor-intensive operation, involvement of both worker and owner in the total operation from greeting the customer to serving what is ordered and jointly working as a family member can also be considered as differentiating factor for competitive advantage.
Q.3 How has the 100 Yen Sushi House incorporated the just-in-time system into its operations?
Answer:
The 100 Yen Sus hi house has incorporated t he Just-in-Time (JIT) system t hroughout its day
to day work process. For example, it has adopted just-in-t ime inventory control system. The company has an agreement wit h t he f ish vendor to deliver fresh f ish several t imes in a
day so t hat materials arrive just in t ime. This helps in cost reduct ion in purchasing t he refrigerators for storing t he inventory as well as cost decl ine in inventory. Also, it provides more space available for customers by cutt ing down of refrigerators space.
As Sushi is not made to order, due to var iat ion in taste of customers t here is always some waste. But t he trade-off between t he t ime t hat is saved and t he waste can be turned to t he management's advantage by g iving careful attent ion to customer demand. This also implied
t hat management is aware of qual ity product and responsible for hygienic food. For example, all t he employees are charged wit h t he task of monitoring t he prepared sushi and removing t he old sushi dishes from t he serving train after 30 minutes so t hat sushi quality will maintained and always fresh. Moreover, t hey use to put right nu mber of Sushis plate at right t ime (based on cont inuous observat ion) on t he conveyor belt. This is also an example of appl icat ion of JIT principle known as Kanban. They have tradit ion of chorus of t he iratsai(welcome) and Arigato Gosaimas(t hank you). It also signals about t he t ime of customers coming and leaving. So, t hey know when t hey need to speed up or down t heir t hroughput in mak ing Sushi, anot her example of JIT. Page 3 of 4
In summary, t he 100 Yen Sus hi house has very well maintained t he Just-in-t ime (JIT) system into its operat ion. It is t heir simplicity & common sense, well planned serv ice process, consciousness & effort of all employees for quality service and managements proact iveness to meet customers demand are t he major factors which are proving t heir successes fullness of JIT implementat ion. Q.4 Suggest other services that could adopt the 100 Yen Sushi House service delivery concept. Answer:
The 100 Yen Sus hi house service deliveries can be adopted in ot her services area w hich
focuses repetitive type of processes. For example, it can be appl ied in automanufacturing, fast-food, household appliance etc. The concept is low-volume and high
variet ies which gives bot h economic and custom advantages of cont inuous product ion. This concept is used by Harley-Davidson where relat ively few different engines, chassis, gas tanks and suspension system are mixed to produce a huge variety of motorcycle. Likewise t he same concept is also used by fast-food restaurants as McDonalds and Burger K ing where relat ively few modules like cheese, lettuce, buns, sauces, pickles, meat patt ies, French fries make a var iety of meals. In Nepalese context, fast food chains like Bakery
café, NDs, Bajeko Sekuwa etc. may utilize this type of service delivery concept .
******Thank You******
th
Reference: Operations Management (9 Edition, by Heizer & Render) and www.youtube.com
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