Successful businesses are built with effective operational management tools and techniques. Determining effective strategies to direct leadership is essential to any group that wants to create a competitive advantage in the workplace. Strong leaders actively seek ways to gain new perspectives on how to develop creative ways to strengthen customer retention and profitability. To discuss these concepts further, this paper will analyze the operating process in a pizza restaurant and understanding service utilization.
After observing Mario’s Pizzeria many assumptions were made about what specific factors could increase profitability. To create an optimal solution for increasing profitability, it is very important to minimize loss. Minimizing loss involves ensuring that all services are utilized to its potential. “Total quality management may be defined as “managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.” (Chase, Jacobs, & Aquilano, 2006) Mario’s Pizzeria experiences a loss in customer satisfaction which directly impacted profits. There are two major problems: wait time and queue length. However, there are several elements to consider like, number of tables, wait staff, and kitchen staff. The initial assessment was that a process improvement was necessary to decrease the long lines and queue length. Customers were walking away, and as a result Mario’s Pizzeria had a loss in sales.
To combat the problem, the initial theory was that increasing the wait staff and the amount of available tables would reduce wait time and lead to customer retention and satisfaction. However, making changes in the wait staff was unnecessary and did not have any impact on wait time or queue length. In addition wait staff utilization decreased which lead to a lost in profitability and waste.
After a second observation of Mario’s Pizzeria, it was determined that a change to the...