ACKNOWLEDGEMENT
Bismillahirahmanirrahim…… First and for most we would like to thank Mr Ridwan Muhammad, Branch Manager of KFC Kangar for his generosity in giving us all the information that we need in order to complete our Operation Management report of KFC process strategy. We also would like to thank to our lecturer, Cik Wan Alia Wan Anis for giving us the guidelines and help us in finishing our project work. Furthermore, a special thanks to friends and others that involved in the making of this project paper and making sure that we can finish this project with complete knowledge about outside and inside environment of KFC Holdings (Malaysia) Berhad process strategy. To group members, Mohamad Izat Amir Azlan, Muhammad Izzat Bin Hassan, Mohd Zulfadli Bin Hassan, Afendi bin Muhammad and Muhamad Syahir Abdul Rahman, we have already finished operation management project with the great cooperation from every 5 members.
1|Page
INTRODUCTION – COMPANY‟S INFORMATION KFC is among the best-established brands in the Western Quick Service Restaurants market. It is by far the most popular restaurant chain in the Malaysia, with over 620 KFC restaurants in Malaysia, Brunei, Singapore, Cambodia and India, KFC sees millions of people flocking to its various outlets year in, year out. Recent product innovations, such as Egg Tarts offer our customers a variety of alternatives to chicken-centric meals. At the same time, we have continued to expand our traditional chicken range by introducing variety of products. KFC is the first Western Quick Service Restaurant in the world to set up restaurants run by hearing-and speechimpaired staff; and the first to establish a children's club (the KFC Chicky Club) with membership topping 250,000. KFC is part of Yum! Brands, Inc., the world's largest restaurant system with more than 37,000 KFC, Pizza Hut, Taco Bell, Long John Silver A&W and Wing Street restaurants in more than 110 countries. To maintain and offer quality products KFC source all its raw material and components from reputable organizations such as nestle, ayamas, UBF, Kerry ingredients and McCain. KFC products fully complies the Islamic law. The QSR brands sheriah council strictly oversees all their products to pass the halal procedures and requirements before they are provided the halal certificate and JAKIM Logo. KFC provide healthy food by frying all their foods using non-hydrogenated palm oil that contain less amount of trans-fat and 100% cholesterol free. KFC also maintain the minimum requirement temperature level when cooking their
meal
as recommended
by WHO
(world
health organization) to
avoid contamination and retention of nutrient.
2|Page
BACKGROUND OF COMPANY Do you remember on a famous restaurant which serves finger lick in' good, succulent pieces of chicken?.
It‟s all about KFC Holdings Bhd that
always in the mind of Malaysian‟s. We already have done a simple research on the operation/production department, process strategy and the flow chart process. I‟m very sure that KFC are very popular among Malaysian, but it is all people know about the history of KFC Holdings? KFC began with Colonel Harland Sanders. He discovered his penchant for cooking when he was only 9 years old. Through the years he grew up to become a personage the world knows as Colonel Sanders, founder of KFC. He reached celebrity status in 1952, when he decided to franchise his famous Kentucky Fried Chicken recipe blends of 11 herbs and spices to the rest of America. By the early 70's, that special recipe reached Malaysia. Today, KFC Malaysia continues to serve finger lickin' good, succulent pieces of chicken. The flavorful blends of 11 herbs and spices give KFC's delicious aroma. With the chicken's natural juices sealed-in, leaving a special mouth watering taste that cannot be replaced. KFC prides itself as a fast-food restaurant that give customers great tasting chicken with a selection of home-styled side dishes and desserts to make a wholesome, complete and satisfying meal. Colonel‟s menu consists of kfc lunch treats, combo meals, individual and family meals, chicky meal, snacks and burgers, thirst quenchers, side orders and desserts. To be more efficient, KFC divided the menu to the 4 big group which is breakfast, family, teens and kids. They offers menu like a.m blueberry pancake, twister combo, holiday and mini bucket, x-meal and chicky meal. Did you know that the first KFC restaurant was opened in 1973 on Jalan Tunku Abdul Rahman. Today there are more than 500 KFC Restaurants nationwide and still counting. Great tasting chicken has become synonymous
3|Page
with KFC; and has been enjoyed by Malaysians ever since. In fact, KFC Malaysia has developed a distinctive Malaysian personality of its own. KFC is the largest fast-food chain in Malaysia and Brunei, serving world famous Original Recipe fried chicken which contains secret blend of 11 herbs and spices. Apart from serving finger-licking good food, we continuously aim for high quality and are committed to ensure food safety by stringent control to maintain our standards. They
cook
their
products
well
above
the
minimum
temperature
recommended by WHO. They have developed standard procedure that would minimize risk of cross contamination between raw and ready-to-eat products. They provide information on the nutritional values of KFC products to assist their customers in planning a wholesome and balanced meal. For frying all of their
products,
they
use
non-hydrogenated
palm
oil
that
contains
insignificant amount of trans fat and it is 100% cholesterol free. They have a team of food technologists constantly experimenting with new flavors and creative concepts to provide more value, choices and healthy options for our customers. Apart from introducing international products into their market, they have also developed some popular local flavors designed to enable their customers to enjoy an exciting dining experience.
4|Page
TYPE OF BUSINESS A KFC's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants.
KFC Corporation, based in Louisville, Ky, is the world's most popular chicken restaurant chain specializing in Original Recipe®, Extra Crispy™ and Colonel's Crispy Strips® with home-style sides, Honey BBQ Wings, and freshly made chicken sandwiches. There are more than 14,000 KFC outlets in more than 80 countries and territories around the world, serving some 12 million customers each day. Franchising Franchising is the practice of using another firm's successful business model. For the franchisor, the franchise is an alternative to building 'chain stores' to distribute
goods and avoid investment and liability over a chain. The
franchisor's success is the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business.
5|Page
OPERATION/ PRODUCTION DEPARTMENT Mission To sell food in a fast, friendly environment that appeals to pride conscious, health minded consumers (www.KFC.com). To be the leader in western style quick service restaurants through friendly service, good quality food and clean atmosphere.
Vission To be the leading integrated food services group in the ASEAN region delivering consistent quality products and excellent customer-focused
Passion “To satisfy our customers every time they visit our restaurants and to do it better than our competitors”.
Taglines „Lick in So Good‟
6|Page
Objectives 1. Increase variety on menu 2. Introduce desert menu 3. Introduce buffet to restaurants 4. Reduced overhead costs 5. Increased efficiencies 6. Improved customer service 7. Cleaner restaurants 8. Faster and friendlier service 9. Continued high quality products
OUR FORMULA FOR SUCCESS “People capability comes first - satisfied customers and profitability follow”. HOW WE LEAD “Know and drive the business, and build and align teams”. HOW WE WIN “Be the best at providing customers with branded restaurant choice and branded products”. HOW WE WORK TOGETHER “Our leadership”
7|Page
TYPE OF PROCESS STRATEGY Product Focus KFC primarily sells chicken in form of pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes and desserts. Outside North America, KFC offers beef based products such as hamburgers or kebabs, pork based products such as ribs and other regional fare. The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, though the idea of KFC‟S fried chicken actually goes back to 1930. The company adopted the abbreviated from its name in 1991. Starting April 2007, the company began using its original name, Kentucky Fried Chicken, for its signage, packaging and advertisements in United States as part of a new corporate rebranding program, newer and remodeled restaurant will have the new logo and name while older stores will continue to use the 1980s signage. Additionally, its continues to use the abbreviated name freely in its advertising.
Repetitive Focus Repetitive focus is the classic assembly line. It is also a product oriented production process that uses modules. Widely used in the assembly of virtually all automobiles and household appliances, it has more structure and consequently less flexibility than a process focused facility.
8|Page
Repititive Focus
Upper class- higher paid professional
Middle class- family, youngsters
Lower class- a
Modular techniques
Accommodating product and process design
focused
Process focused
Collectramatic Machine Register machine
Mass Customization
Effective scheduling technique
Rapid throughput techniques
Responsive supply chains
Product Primarily sells chicken in form of: pieces, wraps, salads and sandwiches
9|Page
FLOW CHART PROCESS
10 | P a g e
PROCESS CHART
1)
AYAMAS
WAIT 14
6)
2)
MINUTES & THE
PLUCKING CHICKENS IS
3) 5)
DIP INTO FLOUR PUT INTO
COLLECTRAMATIC
4)
ARRANGE ON CLUMP SHELL
11 | P a g e
Kentucky Fried Chicken gets their supplies from AYAMAS. The chickens from AYAMAS was packed when send to KFC. One pack has two chickens and the chicken was already cut. For Original, there have 16 pieces of chickens in one pack and 18 pieces for spicy. For the first process, the chickens will through plucking process. It is means the chickens need to be clean. Then the chickens need to stretch at tight parts. After that, the chickens will dip into flour. For cooking process, they have their own procedure. It is different to cook original chickens and spicy chickens. For cook‟s original chickens, dip the pieces of chickens into flour and mix it for 10 times. Then, handle the chickens with hands and arranges the chickens on the clump shell. After that, put the chickens into colectramtik and close the colectramtik. Switch on the colectramtik and make sure that the oil is hot over 180 Celsius. Then we wait the timer until 14 minutes and take out the chickens from colectramtik. Lastly, the chickens are already to serve to customers.
12 | P a g e
PROBLEMS AND ACTIONS PROBLEMS Through an analysis of the strengths, weaknesses, opportunities, and threats of KFC, the following potential problem areas were identified: 1. The chickens are not hot. Some of their customers complain about the chickens is not hot. It makes their customers not appetite to enjoy their meal. Sometimes the chickens also are not underdone of cook. 2. Cashier gives wrong order. Cashier of KFC also sometimes is not released from doing mistakes. Their cashier sometimes gives the wrong order to their customers. It will make their customers mad about their services. 3. The collectramatic is not enough or over heat. Collectramatic is a machine that design to cook the chickens for KFC. If the collectramatic is not at the suitable temperature, the chickens will under or over cooks. This will change the taste of the chickens. 4. Customers have to wait in a long queue while waiting for their order. Many complain received from the customer that they are tired and bored of waiting in a long queue for their order to be taken by the cashier. This sort of problem do waste lot of customer time and can be quite annoying especially if they are in rush. This problem usually incurred during the peak hours.
13 | P a g e
5. Workers do not friendly service with customer. Some of our customer especially the regular one do complain about the lack of friendly service or manner from our workers toward them. The workers do not provide the services that are acquired by the customer for example if the customer ask them to clean up the table, they sometime did not do what the customer ask for.
14 | P a g e
ACTIONS 1. Put at special place. The supervisor or other staffs in KFC need to be more alert at the chickens. The supervisor needs to make sure that the temperature of chickens in good conditions. The chickens that were return back to KFC will place at one place to make sure that the chickens get the good temperature.
2. Cashier must be alert. The cashier needs to be more alert from doing any mistakes. Customers will mad at cashier if there have something wrong with their order. Cashier need to work properly to avoid any mistaken and at the same time, take order and deliver it as soon as possible to the customer so that they do not need to wait.
3. Cook department must prepare early. Staff
that
works
in
cook
department
must
make
sure
that
collectramatic must in suitable temperature before put the chickens in collectramatic. The collectramatic must in good condition before cook the chickens.
4. Cashier and co- cashier must provide fast service. The cashier and the co- cashier must take order and prepare them as fast as possible so that the customer do not have to wait for a long period to get their orders done especially if the order are for take away. Most of fast food restaurant do face this problem especially during the peak hours. 15 | P a g e
5. Supervisor or branch manager need to supervise and train the worker. To ensure that this not happen and at the same time keeping up the reputation of KFC, the supervisor and branch manager need to supervise the workers and train them especially if they are the newly hired workers so that they can put be professional in doing their work and providing a excellent service toward the customers.
16 | P a g e
RECOMMENDATION Based on our analysis of the problem and the strategic alternatives, we do recommend that KFC need to find a way to ensure that the chicken always hot before we served it to the customer. KFC should hire a firm that specialized in food heating process to do a research and development that related to the heating process. As we all know, KFC have been in this business for a long period, so the method they are using maybe out of date and not fully utilizing the availability of new technology in food heating process. In term of cashier making mistake in taking orders, the supervisor need to train and supervise them to ensure that this sort of mistake do not always happen as this will have effect to the customer. Other than that, the branch manager should find a solution to solve this type of problem if it does happen. In term of cooking department, the workers need to ensure that they follow the procedure in preparing the chicken. As a result, they will serve the chicken that are delicious and at the same time fulfill the satisfaction of the customer. The cashier and the co- cashier need to provide fast service to the customer so that they do not need to wait in a long queue for their orders to be taken. This sort of problem always incurred in fast food restaurant especially during the peak hours. The branch manager also should hire extra part time workers during the peak hours for example during the weekend or lunch hours. They do not need to hire extra full time workers as this sort of action will cause wastage in term of high wages payment and not fully utilizing the workers. Last but not least, the supervisor or branch manager needs to ensure that the workers are well trained and supervised so that they will provide excellent service towards the customers.
17 | P a g e
CONCLUSION Regarding the research that we that we have carried out, we do notice KFC need to improve certain quality in providing their service to the Malaysian community. However, we realize that KFC is a big and one of the leading companies in Malaysia fast food industry. KFC have hundreds of franchise store and this sort of problem does not happen in all stores and even if they need to take action to solve this sort of problem, it may take a large sum of cost and period. They need to take this step by step so that they can maintain their reputation while at the same time solving this sort of problems. In term of hiring, we do realize that KFC provide lots of job opportunities to the Malaysian society which show that even though they only operate in providing fast food service, they do bring some positive value to the society such as the increase of number in employment. KFC also do contribute in giving out donation to the society welfare for example to the disable community and world charity organization. KFC also one of the biggest taxes contributor to the Government which will provide the fund for development of our country.
18 | P a g e
