OPERATIONAL PROBLEMS OPERATIONAL PROBLEMS IN COSMOS – HOTEL IN COSMOS – HOTEL VALLEY VIEWVALLEY VIEW

GROUP 3; SECTION AMBA 2ND Semester

About Cosmos About Cosmos Cosmos is a cosmopolitan cafe

attached to the 3 star Valley View Hotel

located opposite to MCODSfine sleek ambience with glass walls,

glass tables and metal finished chairsIt has a very high footfall because it

being in Valley View hotel and also because of being very near to Kasturba medical college

Its customers include guests of Valley View hotel, participants of various events and conferences in Valley View, students and staff of Manipal University, localities and party poopers.

Its serves multi cuisine food and liquor including wine.

Apart from alacarte it serves buffet in breakfast lunch and dinner

It also caters to customer’s sweet tooth with variety of pastries and doughnuts

LAYOUT OF LAYOUT OF COSMOS:SERVICE COSMOS:SERVICE LAYOUT LAYOUT i.e responds to customer i.e responds to customer behaviourbehaviourFeatures Of Services Layout

Applicable To This Case Try to derive maximum profitability per

square footIncrease browsing, impulsive

purchasing, visually appealingImprove circulation through entire areaSpread aromas by entranceMinimum walking and material

movementEasy communication with customersWaiting facility

OBSERVATIONSOBSERVATIONS

Serving counter next to buffet counter was much bigger in size than required. It was most of the time empty without any staff or without any cutlery , food or other utensils etc

Table of 6 between the two pillars was blocking the free flow of customers into the restaurant.

Pastry counter next to kitchen door was less visible and was not contributing in raising the aromas at the other entrance door.

No dedicated waiting areaat the pillar near the billing

counter there are three platforms for serving, keeping menu cards and water jugs etc which were mostly empty for most of time.

Serving counter on left side of entrance door was dirty, least used and blocking floor space.

EXISTING LAYOUTEXISTING LAYOUT

OPERATIONAL PROBLEMSOPERATIONAL PROBLEMS

As Told By The ManagerWants to increase sitting

capacityWants to rearrange or remove

the table of 6 near the entrance door without decreasing sitting capacity.

As Found By The Group:There are 2 pillars in the sitting area

near entrance door which is not allowing that area to be used efficiently.

Under utilization of pastries counter.Under utilization of service counter.Block in flow of guests at the entrance in

the sitting area.Un ease flow of customers towards

buffet.Under utilization of floor area.No dedicated waiting facility.

Problems of cosmos in Problems of cosmos in operational termsoperational terms Inefficient operationNeeds ease of maintenanceNeeds ease of supervisionNeeds improvement in productivity.Needs to utilize space efficiently

and effectivelyNeeds a change in design of serviceNeeds change in equipment

SOLUTION SOLUTION

Go For Change In LayoutThe reasons to opt for change in layout rather

than plant relocation or other solutions are:Management’s reluctance and breach of

policy guidelines of the hotel.Cost effective solution.Solution can be applied quickly to cash on

the rush of IPL matches going on in the country.

No relocation of doors or raised pavement as it was designed only 2 years back.

Not to cause any hindrance on the training schedule of hotel management institutes students.

SUGGESTED LAYOUTSUGGESTED LAYOUT

CHANGES TO BE MADE IN CHANGES TO BE MADE IN THE LAYOUTTHE LAYOUT Rotate the table in top left corner

(within the walled area) so that 2 more chairs can be added there.

 Detach the service platform at the left

side of entrance door and place it near the other entrance door below flat screen television. Now on the space left at the left side of first entrance door can have a table for 4.

 Table for 6 near the entrance door

between the 2 pillars to be removed.

At the pillar near the billing counter, two existing service platforms can be used as table and 4 chairs can be added to the existing two.

 Similar pattern can be replicated at the

other pillar. Pillars are effectively utilized. Existing table for 2 to be removed.

Now entrance space is cleared for free inflow.

One of the pastries counter to be shifted to door near the flat screen television

Serving counter should be made small, a little more than half of previous length.

Pepsi counter should be moved to other side of kitchen door.

Vacant previous Pepsi counter should be used for serving, keeping menu cards etc.

Buffet and pasta counter to be realigned as shown in the suggested layout.

Existing Table for 8 and existing table for 4 near the kitchen door should be realigned as shown in suggested layout.

Two tables for 4 should be added near the pavement to utilize efficiently the existing floor space.

Four tables for 4 along the buffet counter should be realigned as shown in suggested layout.

A small wall table and 2 chairs can be added next to pasta counter to utilize the corner space.

4 tables outside to be realigned and a dedicated waiting corner (green colour table and chairs) to be added..

COMPARISON OF EXISTING COMPARISON OF EXISTING AND SUGGESTED AND SUGGESTED FURNITUREFURNITUREType of furniture Existing number Suggested number

Billing counter 1 1

Pastry counter 2 2

Service counter large 1 1

Pepsi counter 1 1

Pasta counter 1 1

Buffet counter 1 1

Flat screen 1 1

Entrance doors 2 2

Kitchen door 1 1

Table for 2 4 1

Table for 4 10 13

Table for 6 1 0

Table for 8 1 1

Sofas 2 2

Standard Chairs 63 67

Small chairs 2 16

Small service counters 5 2

Small wall tables 1 8

Waiting area 0 1

Pavement 1 1

Service counter medium 0 1

FINANCIAL ANALYSIS: FINANCIAL ANALYSIS:

Average daily sales of cosmos: Rs20000/-.

Average daily profit (20% of sales): Rs 4000/-

Waiters: present policy says 1 waiter for 10 people i.e. for 71 people they have 8 waiters. If capacity increases to 87, they should have approximately 9 waiters. It means they should keep one more waiter.

Average salary of one waiter: Rs.2600/- 

Expenditure on Expenditure on FurnitureFurniture

Item Quantity Per unit cost IN Rs./-

Total cost

Green table 1 1200 1200

Green chairs 3 730 2190

Small chairs 14 575 8050

Standard chairs 4 890 3560

Small wall tables 4 288 1152

Table for 4 3 1995 5985

Medium service counter

1 450 450

Total 22587

Total expenditure: when redesigning the layout (purchase + installation+ relocation + salary) = Rs.22587/-.+Rs.2600/-=Rs.25187/-.

Calculation: total expenditure/ profit per day: 25187/4000: 6 days.

Inference: within 6 days Cosmos can recover the amount it will spend on redesigning the layout.

CONCLUSIONCONCLUSION

By Accepting Suggested Solution Cosmos Can Achieve Following Results Apart From Solution To Its Problems

Sitting capacity improves from 71 to 87 i.e. 16 more people can be accommodated comfortably.

Maximum profitability per square foot

Increased browsing, more chances of impulsive purchasing i.e. sitting and ordering pasta since easily visible upfront , visually appealing

Improved circulation through entire area

Aromas of pastries spread at both entry doors.

Minimum walking and material movement as less used and small sized service platforms removed

Easy communication with customersA dedicated waiting facilityEase of maintenance and

supervision.Maximum use of available floor area