Case Study on Management Operations at Domino’s Pizza

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Table of Contents
INTRODUCTION TO THE STUDY 3
Industry in which the company competes 3
STRATEGY OF THE COMPANY 4
FORECASTING 5
Different forecasting approaches 6
Qualitative and quantitative forecasting 7
CAPACITY PLANNING 7
PROCESS SELECTION AND FACILITY LAYOUT 8
Chart depicting the process 9
Layout of the organization 9
PRODUCT AND SERVICE DESIGN 10
LOCATION 12
Factors considered for Location and strategy 13
QUALITY MANAGEMENT 14
Dimensions and management of quality 14
Costs associated with quality 15
CONCLUSION 15
REFERENCES 17

INTRODUCTION TO THE STUDY

The Domino’s Pizza tends to be the king of pizza selling companies across the globe. It is the second largest pizza selling company in the world. It is an American International food chain that founded in 1960 by Tom Monaghan and James Monaghan. There are 4722 franchised stores of Domino’s in the United States itself. Domino’s Pizza, Inc. was incorporated in 2002 and it is established at 11,900 locations spread over 80 countries across the globe (DOMINO’S.COM, 2016).
The primary product that is developed by the company is pizzas and it is also involved in producing sandwiches, pasta, chicken products and desert and ice-creams.
Industry in which the company competes
There are two main competitors of Domino’s in the global industry and they are the Papa John’s and the Pizza Hut. The store growth of the three leading pizza retail chains has been obtained in the chart given below:

STRATEGY OF THE COMPANY
Domino’s believes in providing happiness to its customers through providing products that are rich in taste, quality and services that outperform each and every competitor across the globe.

Vision
The vision of the company determines the goals and objectives that it has for itself in the future. The vision of the Domino’s is, “No. 1 in people, No. 1 in Pizza” (DOMINO’S.COM, 2016). It can be seen that domino’s strives to provide extensive service as well as products to its customers. It would help them in achieving their long term objectives and develop sustainable growth in the market.
Mission
The mission statement refers to the characteristics that the company wants to develop across the market so as to emerge as a leader on the global front. The mission statement of Domino’s is, “Sell more pizza, have more fun” (DOMINO’S.COM, 2016).
The company believes in providing a strict code of ethics and have strategies that are based on providing an ultimate customer experience to the customers.
They believe in differentiation strategy of marketing and also provide certain elements of cost based strategy.
The strategy that is developed by the Domino’s is the differentiation strategy where it does not focus on the cost, but provides a unique product to the customers that helps them in developing a niche for themselves in the market. It can be seen from the example that they developed the cheese burst pizza which is a bit high on cost but provides ultimate experience and taste to the customers (Haq, 2006).
FORECASTING
Forecasting refers to the process of developing predictions for the future on the basis of the current conditions and data available and the past data that has been obtained and scanned for the same (Balakrishnan, 2011). It helps in providing a firm basis for the development of new product in the industry. Basically, there are two general approaches towards the process of forecasting. It involves:
Qualitative forecasting method:
Qualitative forecasting method requires an extensive analysis of the characteristic and attributes of the supply chain management and other elements pertaining to different processes that are carried in the organization. It includes developing the customer behavior, customer satisfaction, the level of innovation and adaption of new strategies for the same.
Quantitative forecasting method:
Quantitative forecasting method refers to the forecasting in which the theories are developed and calculations are made for projecting the future attributes on the basis of the statistical analysis that is carried out in the industry. It is on the basis of the past trends that were observed in the industry regarding the selling of the product and the profit generated for different segments of the market.
Different forecasting approaches

(Balakrishnan, 2011)
Qualitative and quantitative forecasting
Qualitative forecasting are related to the elements or factors which determine the customer behavior in terms of the descriptive information obtained from them, developing the feedback from and developing the estimated sales and other quality requirements on the basis of that. Al-Ain dairy has been a challenger to the Almarai in UAE. They have been constantly providing new qualitative measures for developing a niche for itself in the dairy industry of UAE.
Quantitative forecasting is used for the elements and factors where the past trends in the market can be obtained through statistics. The main function of this forecasting is that it is based on an empirical data evaluation that has been taken into consideration for developing new strategies and products by the Al-Ain dairy in UAE (Balakrishnan, 2011).
CAPACITY PLANNING
Capacity planning refers to the development of the strategies regarding the process and activities that are to be carried out in an organization to meet the changing demands of the customers. It involves the capacity that a specific company is able to handle through its market demand. Domino’s has been expanding across different countries at a very fast rate in order to accomplish the demands of the people in different areas. A capacity can be defined as the upper limit of the load that an operating unit of an organization can handle in the market. There are three main parameters that are included in capacity and they are equipment, space and employment skills respectively (Stevenson, 2012).
For this purpose, the efficiency is to be carried out and it is given by the following formula:
Efficiency = (Actual Output )/(Effective capacity) = (65 )/90 (in millions) = 0.722 for 2015
= (55 )/90 (in millions) = 0.61 for 2014.
= (50 )/90 (in millions) = 0.55 for 2013.

Utilization = (Actual Output )/(Design capacity) = (65 )/(95 ) (in millions) = 0.685
Capacity cushion = 100% – Utilization
= 100% – 80% = 20%
PROCESS SELECTION AND FACILITY LAYOUT
Process selection refers to the deriving of a standard procedure for performing various activities in the organization. It is carried out on the basis of several factors that are established on the basis of the processes that are carried in the plant. The main function of the process selection is to establish an ideal structure that can be followed across the different operations that are carried in the organization.

Chart depicting the process
The process that is carried out in domino’s has been shown in the figure below:

(Stevenson, 2012).
Layout of the organization
Facility layout of the plant refers to the development of the entire structure of management across the system in an organization. For the domino’s, it has been obtained in the following section. The main function in developing a facility layout is to obtain a standard process for the management to be followed across the organization while ensuring high levels of efficiency and consistency across the organization. It involves developing various means and techniques for increasing the productivity of the organization across different departments that have been developed in the following figure:

PRODUCT AND SERVICE DESIGN
Product and service are a crucial part of the organization where it tends to develop means for fulfilling the needs of the customers through developing a product or service that will be able to do that. The main purpose of the product and service design tends to be:
Transforming the needs of the customers into real products and services.
Improving the existing products and policies.
Developing efficient mechanism across the processes.
Developing the product targets
Developing and testing the prototypes
Translating product and service specifications into process specifications (Stevenson, 2012).

LOCATION
The Domino’s that is located at the Damascus Street, Al Qusais, Industrial Area 2, Qusais, Dubai, has been taken into consideration. Its location has been shown in the figure below:

(ZOMATO.COM, 2016)

The above location has been obtained from the Zomato app that helps in getting the address and location of the restaurant using the google map.
Factors considered for Location and strategy
There are several factors that have been considered for selecting the location for a dominos franchise in UAE. These factors have been mentioned below:

(GREYHILL, 2015)
QUALITY MANAGEMENT

Dimensions and management of quality
There are several dimensions which are accustomed across the production and service carried by the Domino’s pizza outlets across the UAE. It involves the performance, features, reliability, safety, quality, aesthetics, serviceability, perceived quality and health standards. There is a huge investment made by the Domino’s pizza in order to improve the availability of resources and increase the production at the same time. This is very important for developing the dimensions of quality management that are pertaining to the high standards of quality that have been set in the company.
Costs associated with quality
There are several costs that are associated with the quality that a company provides in its products and services. Few of the costs that are related to the food industry in UAE has been provided below:
Failure cost:
Cost of ensuring high safety:
Cost of scrapping
Cost of reworking
Cost of the wastes
All the above mentioned costs have been handled and managed by the Domino’s company through technological innovations and advancements in the manufacturing processes that has led them to be a leader in terms of innovation in the food chain industry of UAE. They have aimed at developing high profit with the same number of resources through critically evaluating the costs that are associated with the quality and increasing the productivity across different operations carried in the company.
CONCLUSION

Thus, it can be stated that the operations management that has been obtained in the Domino’s pizza across the UAE has observed high levels of adaption of the culture and ethnicity that has been inculcated in UAE. It has been incorporated through the processes that are carried in it that the main element of the operations management is developing highly competitive and sustainable product that would out perform its competitors in the global market.
Recommendation
There is a huge scope of improvement that has been identified by the Domino’s Company themselves. They have been constantly thriving to provide high quality product to the customers. There are many options available to the production and quality development section in the Domino’s company that has the potential that is not explored to the maximum. The strategies of the company have been discussed and on the basis of that the forecasting that is done in it has been obtained. The capacity planning for different operations have been obtained along with the development of a process selection and product design process. The selection of processes has to be made on the basis of the feasibility of the operations and its capacity to generate revenues for the company in the food chain industry of UAE.

REFERENCES
Balakrishnan, M. S. (2011). Al Ain Dairy: managing demand and supply.
DOMINO’S.COM. (2016, April 13). Home page. Retrieved from https://www.dominos.com.au: https://www.dominos.com.au/inside-dominos/corporate/vision-and-mission
GREYHILL. (2015). The Site Selection Process. Retrieved from http://greyhill.com: http://greyhill.com/site-selection-process
Haq, R. (2006, May 7). PWC streamlines Domino’s Pizza supply chain. Retrieved from http://www.arabianbusiness.com: http://www.arabianbusiness.com/pwc-streamlines-domino-s-pizza-supply-chain-208787.html
Stevenson, W. J. (2012). Operations Management. McGraw-Hill/ Irwin.
ZOMATO.COM. (2016, April 13). Domino’s. Retrieved from https://www.zomato.com/dubai/dominos-qusais/info#tab

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Posted on

March 9, 2018

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