Kfc Inventory and Process Management

Manipal Institute Of Management, Manipal| OPERATIONS MANAGEMENT| KFC Inventory And Process Management| | | Group 7 Section B| Roll No. | Name| Signature| 121202070| Niranjan N Naik| | 121202081| Binay Kumar Sahoo| | 121202031| Ribu Roby| | 121202050| Julian Joel Roche| | 121202120| Dhanush Patel| | 121202122| Suraj Pereira| | | | Submitted to: Yogesh Pai Date: 16/03/2013 Contents INTRODUCTION1 Logistics1 Inventory Storage2 PROCESS3 Cleaning4 Disposal5 Conclusion5 INTRODUCTIONKFC Corporation is based in Louisville, Kentucky, and is the world's most popular chicken restaurant chain. KFC and its franchised employees are more than 200 thousand, all over the world. It is the world’s largest and most well known  fast food restaurant preferably known as chicken restautants. Their restaurants are served in 109 countries and territories around the world. The study is done on a fast food restaurant and the analysis done on inventory management and process in kitchen. The study is rest ricted to KFC utlet present in Manipal. The purpose of the study was to understand the process of the organization and with the completion of this project we have learned that how operations Management Strategies plays very important role in achieving an organizational goals. The restaurant follows Just In Time (JIT) and First In First Out (FIFO) to manage inventory. Inventory, is divided into three types consisting of Daily, Weekly and Monthly inventory. The daily inventory consists fast moving products like Krushers, Non-veg items, ice-creams.Here the orders are placed by the inventory department every night after the restaurant closes for customers. The requirement sheets are filled inorder to place the order and products are moved from inventory. The weekly inventory consists of Dry storage items like disposal plates ; equipments and recipes needed to cook. The requirement sheet is filled while placing order which is placed every Thursday and the products reach the outlet to the max by Monday or Tuesday.The monthly inventory consists of detailed stock verification of the items present in the store and the products disposed off due too non consumption on reaching the standard time are also recorded. The update of stock verification is done via website and once updated its final and no changes can be done by the staff, if in case there are changes they call up the head quarters and make the necessary changes. Logistics The products/goods are transported from Bangalore warehouse via road transport. The outlet does not purchase from any other local dealers for any items.In regular process, the truck reaches the outlet on Monday or Tuesday between 9am to 11am. Before moving the products to storage the 3stage process is followed, at first the temperature is measured which should be between (-18oC to -23oC) , then expiry date of the product is verified and at last the quality of the product is checked via Tell-Through machine. At any point of the this 3steps any one step is not upto the standards the products are sent back to warehouse. In case of urgent stock from the time they place they take 2days to get the stock via courier. Inventory StorageKFC implements different storage for different products consisting of dry storage, cold storage (frozen) for non-veg items, chill storage and cold storage for veg products. Dry storage consists of items like cleaning products, Disposable plates spoons towels, recipes etc. The products are stored at room temperature. Cold storage consists of veg products, cold drinks, water etc stored at temperature (-1oC to -4oC). Cold storage fr non- veg products are stored at temperature (-180C to -23oC) wher the product validity is 6months. Older batches are placed at the front.Items are placed in simple rack system and fast moving items are placed in a such manner that they are easily accessible. The products are moved in FIFO method. Chiller storage are stored in temperature of (-1oC to -40C). It’s a no n-veg defrosting room. Stores fresh product and frozen product (for thawing) is placed here. Frozen product once taken out of freezer cannot be returned (expire time 12 hours). Items are placed in rack system placed along with time tag placed with it. PROCESS Here the items are moved from cold storage to the chiller are placed for thawing and defrosting with room temperature of (-1oC to -4oC).Frozen product once taken out of freezer to chiller cannot be placed back. Once the duration of 12 hours are done items/ packets are removed out and goes to the cleaning process. The duration of cleaning depends from staff to staff usually on an average 5-10 minutes are needed. After the items are cleaned, it is placed in an Marinator where basic masalas are mixed. The machine takes 10minutes and makes 300 rotations. Once the items are marinated there is a need for the products to absorb the masala so they are kept for absorption in a process called Ageing which takes 2 hours.After that the pro ducts need to get a layer for themselves so they pass through a process of Breading. On the basis of requirement cooking is done. Cooking consists of 3 types: Grilled, Fried and Baked. The duration of items which are grilled is 45 minutes from the time it is ready. Fried and Baked items duration is 2 hours from the time it is ready. Grilled and baked items are cooked in an micro oven called â€Å"Convotherm†. After that the products are placed in an oil dry machine which absorbs oil from the dishes which takes time duration of 1 – 2 minutes.At last the prepared items are moved to display rack where they are placed in tray along with an tag which determines the time and life span of the item. There is a time keeper who keeps record of the duration and expiry of products. If any of the products are not consumed till the expiry of duration there is an step is taken to dispose of those food items as wastage. The disposal items are recorded and then disposed. Its bee said t o us that for every 1 lakh worth inventory, company sets a standard of Rs. 1000 diposal waste as free as there are every chance of wastage at any point of time by human error. If at all the limit exceeds Rs. 000 there is a need to record it and report it to the demand manager and also be mentioned in the monthly inventory. As far as our study we found out that there is an wastage of 6000-7000 for RS. 1,00,000 inventory. In order to reduce the wastage and disposing items which at present is an complete waste in point of cost, the outlet can make some announcements when the food items are near to their expiry stating buy this particular food product in matter of 15minutes and get discount of certain percent as discount so that they could reduce the wastage and incur certain percentage as profit instead of waste. Customer happiness is our happiness and any customer should not leave the outlet unsatisfied†. Items like Krushers and ice creams are prepared on demand. The standard ti me once an customer places an order, the food needs to be delivered in 1 minute. At present in the outlet they take 5-6 minutes on an average to deliver the order. If at any point of time the food ordered by customer is not prepared or is in process the staff needs to deliver the food in time of 15minutes, if they fail to do so they should take every possible measures are to be taken to keep the customer happy.Steps like providing chocolates to customers or a sweet smile or providing free items as complimentary etc is done. During the crowded hours there is an need to have 1 helper each for 3 cashiers, 2 people working on juice and ice cream section so that they can work effectively and reduce the waiting time and keep the customers more satisfied. Cleaning Concealed drainage are placed on floor for easier cleaning. When it comes to cleaning of vessels, they follow 3 steps.First the vessels are washed with chemical water and then Sanitized with hot water with temperature of (32oC to 38oC) and at last they are Rinsed with normal and kept to dry. At present the cleaning area has only one entrance and the order of steps are chemical wash, rinse and sanitize there is an need to change this by having two entrance for cleaning area and order in sequential order of chemical wash sanitize and rinse. This will reduce the matter of plates falling from hand and causing damage while shifting from chemical wash to sanitize.Disposal Each counter has a separate disposal bin. All disposal collected in one disposal unit. Disposal bag is then taken to public disposal area behind the restaurant to be collected by municipal. Conclusion From a simple idea, and simple adventure, Harland Sandards started his dream, that had been grown and became one of the most popular restaurant among the world. Goodwill image, Loyalty, Spread, are 3 of the most important indicators of KFC popularity. Efficirnt utilization of space and all resource has reduced their expense.