G4 POM Project
G4 POM Project
Submitted By
Garima Vasanta Roll No: A018 (SAP ID: 80672400013)
Pranav Lalpuria Roll No: A037 (SAP ID: 80672300214)
Rachit Ahlawat Roll No: A042 (SAP ID: 80672400020)
Shivraj Deshmukh Roll No: A061 (SAP ID: 80672400003)
Tanya Goyal Roll No: A067 (SAP ID: 80672400195)
Vydyula Lalith Kashyap Roll No: A071 (SAP ID: 80672400157)
Submitted to
Faculty Mentor
Prof. (Dr) Ashu Sharma,
Professor Production & Operations Management,
School of Business Management,
SVKM'S NMIMS, MUMBAI
2|Pa ge
1. Introduction
Krishna Foods is a well-known South Indian breakfast outlet renowned for its authentic
taste and traditional serving style. Located in Hyderabad, the outlet has built a strong
reputation among locals for 40 years for its consistent flavors, affordability, and quick
service. Managed single-handedly by Ranganathan, Krishna Foods has become a go-to spot
for morning commuters, officegoers, and families who enjoy a fresh, home-style breakfast.
One of the biggest strengths of Krishna Foods is its delicious and authentic South Indian
flavors, which have kept customers coming back for years. The outlet also maintains a
traditional touch by serving food on banana leaves, enhancing the dining experience and
preserving cultural authenticity. Additionally, Krishna Foods has a highly streamlined
inventory management system, where most ingredients follow a Just-In-Time (JIT)
approach to ensure freshness and minimize wastage. The two permanent employees, who
have been working for over 15 years, bring deep expertise and consistency to food
preparation.
Despite its success, Krishna Foods faces several operational challenges that hinder its ability
to scale and improve efficiency. The biggest issue is single-person management, where
Ranganathan oversees everything from raw material procurement to order-taking, plating, and
employee management. Additionally, temporary workers lack efficiency, leading to delays
in service and unmet demand during peak hours. The layout of the kitchen and
workstations also causes bottlenecks, increasing order fulfillment times. Furthermore, the
business has not yet expanded into online food delivery, and its menu remains unchanged,
missing out on premium offerings that could increase revenue. Addressing these issues
strategically will help Krishna Foods unlock its full potential and improve overall
profitability.
This report mainly focuses on various operational factors like location planning, inventory
management, capacity planning and workforce productivity. We have identified the following
issues as part of this report.
3. Methodology
To understand the current situation at Krisna Foods, we have interviewed the owner Mr.
Ranganathan. We understood their procurement needs, inventory management systems, shop
3|Pa ge
floor layout, demand forecast methodologies and workforce needs. We reviewed their
operational techniques and have performed some analysis to recommend how they can improve
their operations, service their demand and increase revenue.
4. Analysis
Summary
Here is a list of an overview of the menu items, how they are made, and their financials per
day.
4|Pa ge
Chili powder, Curry leaves, green chili
paste
Potato, Coriander, Mint, Curry leaves,
Aloo green chili paste, Onion, Mustard seeds,
Curry Batch Cumin seeds, Peanuts
₹22,225
5|Pa ge
4.1. Inventory Management
After closing the business for the day, the owner pays everyone and goes to procure raw
materials for the next day, places them in the shop and mixing of the ingredients starts for the
next day as batter needs to be fermented. The next day, fresh foods like chutneys and poori,
vada batter (which need no fermentation) are made and business for the day is started.
Krisha Foods follows a JIT system which works well for them. Here is the list of raw materials
procured on a particular day raw material. The variable cost of goods on an average day turns
out to be ₹7,662.00.
6|Pa ge
Peppercorn ₹20.00
1.5kg monthly small 1 year ₹600.00
s
Idli Rava 5kgs daily small ₹200.00
Peanuts 2kg daily small ₹260.00
Tomato 2kg daily small ₹80.00
Mint ₹20.00
1 bundle daily small
Leaves
Curry ₹20.00
250g daily small
leaves
Jaggery 1kg daily small ₹60.00
Beans 1kg daily small ₹50.00
Bottle
5 pieces daily small ₹100.00
Gourd
Carrot 1kg daily small ₹40.00
Cabbage 2kg daily small ₹60.00
Ivy Gourd 1kg daily small ₹40.00
5 per ₹1,385.0
Gas Weekly small ₹41,550.00
week 0
10 per
Lemon daily small ₹20.00
day
Coriander
100g daily small ₹20.00
seeds
Ginger 1kg daily small ₹50.00
Roasted
6kg daily small ₹720.00
Gram
Garlic 250g daily small ₹25.00
₹7,662.0 ₹229,860.0
0 0
7|Pa ge
4.2.2 Issues
The current kitchen and workstation layout at Krishna Foods creates bottlenecks and
inefficiencies, particularly during peak hours (8:00 AM – 10:30 AM on weekdays and 8:00
AM – 11:30 AM on weekends). The key issues with the layout are as follows:
8|Pa ge
1. Inefficient Placement of Workstations:
The Dosa Station and Frying Pan (Poori & Vada) are located on opposite ends of the
layout, far from the Food Display Counter.
This increases the time taken to transfer freshly prepared food to the serving area,
resulting in longer wait times for customers.
2. Congested Movement and Worker Fatigue:
Poorly utilized free space leads to unnecessary movement by employees, increasing
congestion and reducing efficiency.
Workers often have to walk back and forth multiple times between stations, leading to
delays and exhaustion.
3. Bottlenecks in Peak Hours:
Poori and Vada are cooked in the same frying pan, one after the other. Since Poori takes
2 minutes per batch and must be served fresh, and Vada takes 10 minutes per batch,
this creates a major bottleneck during peak demand.
Due to this limitation, Krishna Foods is only able to fulfill 60% of peak-hour demand,
leading to opportunity cost and potential brand damage.
4. Limited Storage & Prep Space:
The kitchen has a small freezer that does not support efficient ingredient storage,
especially during peak hours.
Employees frequently need to restock ingredients manually, causing interruptions in
workflow.
Longer service times for customers, leading to lost sales during peak hours.
Increased workload on employees, causing fatigue and potential errors in order preparation.
Inefficient resource utilization, limiting the profitability and scalability of the business.
Existing Dosa Fryin Idli Food Cas Counte Workstatio Freeze Fryin
Statio g Pan Machin Displa h r n r g
n e y Pan2
Dosa 5 0 2 5 5 3 2 0 0
Station
Frying Pan 0 5 3 1 2 5 4 4 0
Idli 2 3 5 3 1 1 1 0 0
Machine
Food 5 1 3 5 5 5 3 5 0
Display
Cash 5 2 1 5 5 5 3 3 0
9|Pa ge
Counter 3 5 1 5 5 5 4 4 0
Workstatio 2 4 1 3 3 4 5 5 0
n
Freezer 0 4 0 5 3 4 5 5 0
Frying Pan 0 0 0 0 0 0 0 0 5
2
Required Dosa Frying Idli Food Cash Counter Workstation Freezer Frying
Station Pan Machine Display Pan 2
Dosa 5 5 4 5 3 2 1 0 0
Station
Frying Pan 5 5 4 5 2 3 3 1 3
Idli 4 4 5 2 1 1 1 0 3
Machine
Food 5 5 2 5 4 5 3 2 2
Display
Cash 3 2 1 4 5 5 1 1 0
Counter 2 3 1 5 5 5 2 3 1
Workstation 1 3 1 3 1 2 5 5 3
Fridge 0 1 0 2 1 3 5 5 2
Frying Pan 0 3 3 2 0 1 3 2 5
2
Ideal Dosa Frying Idli Food Cash Counter Workstation Freezer Frying
Station Pan Machine Display Pan 2
Dosa 5 5 3 5 4 3 2 0 3
Station
Frying Pan 5 5 2 5 2 3 3 1 1
Idli 3 2 5 2 1 1 1 0 3
Machine
Food 5 5 2 5 4 5 4 2 3
Display
Cash 4 2 1 4 5 5 1 1 0
Counter 3 3 1 5 5 5 2 3 1
Workstation 2 3 1 4 1 2 5 3 3
Fridge 0 1 0 2 1 3 3 5 1
Frying Pan 3 1 3 3 0 1 3 1 5
2
10 | P a g e
Ideal - Dosa Fryin Idli Food Cas Count Workstati Freez Fryin Ideal -
Existing Statio g Pan Machi Displ h er on er g Pan Existi
n ne ay 2 ng
Dosa 0 5 1 0 1 0 0 0 3 10
Station
Frying 5 0 1 4 0 2 1 3 1 17
Pan
Idli 1 1 0 1 0 0 0 0 3 6
Machine
Food 0 4 1 0 1 0 1 3 3 13
Display
Cash 1 0 0 1 0 0 2 2 0 6
Counter 0 2 0 0 0 0 2 1 1 6
Workstati 0 1 0 1 2 2 0 2 3 11
on
Fridge 0 3 0 3 2 1 2 0 1 12
Frying 3 1 3 3 0 1 3 1 0 15
Pan 2
96
Ideal - Dosa Fryin Idli Food Cas Count Workstati Freez Fryin Ideal -
Required Stati g Machi Displ h er on er g Requir
on Pan ne ay Pan ed
2
Dosa 0 0 1 0 1 1 1 0 3 7
Station
Frying 0 0 2 0 0 0 0 0 2 4
Pan
Idli 1 2 0 0 0 0 0 0 0 3
Machine
Food 0 0 0 0 0 0 1 0 1 2
Display
Cash 1 0 0 0 0 0 0 0 0 1
Counter 1 0 0 0 0 0 0 0 0 1
Workstati 1 0 0 1 0 0 0 2 0 4
on
Fridge 0 0 0 0 0 0 2 0 1 3
Frying 3 2 0 1 0 0 0 1 0 7
Pan 2
32
11 | P a g e
4.2.3 Recommendations:
12 | P a g e
Option 1: Streamlined Workstation Placement
13 | P a g e
Option 2 (Required): Enhanced Layout with Increased Frying Capacity and Storage
1. Closer Placement of Dosa Station & Frying Pan: The Dosa Station and Frying Pan are
moved closer to the Food Display Counter, reducing transfer times and speeding up
service, especially during peak hours. This minimizes unnecessary movement, enhancing
staff efficiency.
14 | P a g e
2. Industrial Freezer for Increased Storage: An industrial freezer is placed near the
workstations to store ingredients like chutneys, batters, and curries. This allows for bulk
storage, reducing downtime, and ensuring consistent food quality.
3. Additional Frying Pan for Parallel Cooking: A second frying pan is added, allowing
Pooris and Vadas to be cooked simultaneously. This addresses the bottleneck caused by
the single frying pan and reduces the cooking time for Vadas, enabling the outlet to meet
up to 90% of peak demand.
4. Optimized Workflow & Reduced Congestion: The new layout improves space
utilization, reduces congestion, and streamlines movement, allowing staff to work more
efficiently and quickly.
4.3.2 Issues
1. Unmet Demand During Peak Hours: Krishna Foods can only fulfill 60% of customer
demand during peak hours due to limited frying capacity, especially with a single frying
pan.
2. Frying Pan Bottleneck: The single frying pan causes delays, with Pooris cooked quickly
(2 minutes), but Vadas taking 10 minutes per batch, limiting the number of items served.
3. Opportunity Loss and Revenue Impact: Unable to meet peak demand results in missed
sales, customer dissatisfaction, and a potential hit to brand perception.
4. Underutilized Capacity During Off-Peak Hours: During quieter times, the kitchen often
runs under capacity, leading to inefficiencies and increased operational costs.
We start with the baseline assumption that the average daily demand is 100 people. Since
Saturday is a high demand day, it has a demand weight of 1.2.
Dosa Demand:
Plain Dosa (35) + Masala Dosa (35) + Onion Dosa (10) = 80 Dosas per day.
15 | P a g e
Saturday Adjusted Demand for Dosas:
80 × 1.2 = 96 Dosas.
Poori Demand:
150 Pooris plates per day.
We use the Economic Order Quantity (EOQ) formula to calculate the optimal batch size for
Dosa and Poori batter.
Dosa Batter:
Demand: 96 Dosas
Ordering cost: ₹100 per batch
Holding cost: ₹20 per liter
1 Dosa requires 0.1 liters of batter
Poori Batter:
Dish Name Avg Orders per Day Max Daily Demand Safety Stock
Plain Dosa 35 38.5 3.5
Recommendation:
To cover demand fluctuations, maintain enough batter to make 8 extra dosas and 15 extra
pooris.
This approach will ensure sufficient stock levels to meet both normal and peak demand,
improving operational efficiency and reducing the risk of running out of key items during peak
hours.
4. Workforce Efficiency
Parcel
worker Temporary 0.7 ₹500.00 Everything related to packing
17 | P a g e
Kitchen
worker Temporary 0.7 ₹500.00 Kitchen work, mixing all the ingrediants
4.4.2 Issues
2. Reduced Productivity:
● Temporary workers are only 60-70% as efficient as permanent staff, especially during
peak hours, leading to slower service and increased operational pressure.
● Unfamiliarity with procedures results in more mistakes in tasks like plating, packing,
and cooking, impacting the quality of food and service.
18 | P a g e
Head Master Master Temp All
% increase in
efficiency 14.84%
Key Findings
19 | P a g e
○ Efficiency per temporary worker improved from 2.77 to 3.18, signaling a
better output-to-input ratio. This boost in efficiency reflects a smarter
allocation of resources and better operational processes.
5. Conclusion
Krishna Foods has the potential to significantly improve its operations by addressing key
areas such as inventory management, layout planning, capacity planning, and employee
efficiency. By implementing the Just-in-Time (JIT) inventory system, Krishna Foods can
reduce waste, ensure consistent ingredient availability, and prevent overstocking, leading to
cost savings and better resource utilization.
Revised layout planning can enhance productivity by reducing transfer times and optimizing
space. By repositioning the dosa station and frying pan closer to the food display counter,
adding an industrial freezer for better storage, and introducing an additional frying pan,
service speed can be improved, space can be better utilized, and peak demand can be more
easily met. These changes will reduce congestion and improve staff efficiency, leading to
quicker service and better throughput.
20 | P a g e
In capacity planning, implementing demand forecasting and calculating optimal batch sizes
for ingredients will ensure that Krishna Foods can meet customer demand, particularly on
high-traffic days like weekends, while avoiding excess stock. These measures will reduce
waste and make inventory management more precise.
Workforce efficiency can be greatly improved by increasing wages for temporary workers,
which has been shown to enhance productivity and morale. Reducing the temporary
workforce while maintaining output is another key recommendation that will help improve
resource utilization. Furthermore, streamlining task allocation, offering regular training
programs, and leveraging technology to track performance can further optimize workforce
efficiency.
By addressing these operational challenges, Krishna Foods can increase process efficiency,
leading to smoother operations and better revenue potential. With these improvements,
Krishna Foods will be well-positioned to handle peak demand, reduce operational costs, and
ultimately increase profitability.
6. References
Books:
1. Chopra, S., & Meindl, P. (2019). Supply chain management: Strategy, planning, and
operation (7th ed.). Pearson.
2. Heizer, J., Render, B., & Munson, C. (2020). Operations management: Sustainability
and supply chain management (13th ed.). Pearson.
3. Hopp, W. J., & Spearman, M. L. (2011). Factory physics (3rd ed.). Waveland Press.
5. Nahmias, S., & Olsen, T. L. (2015). Production and operations analysis (7th ed.).
Waveland Press.
Industry Reports:
8. McKinsey & Company. (2021). The future of quick-service restaurants: Trends and
strategies for efficiency. McKinsey & Company.
9. Reserve Bank of India. (2024). Inflation trends and food industry performance in
India. RBI Annual Report.
21 | P a g e
Journal Articles & Case Studies:
10. Harvard Business Review. (2022). Optimizing small business operations: Lessons
from local eateries. Harvard Business Review.
7. Self-Appraisal:
Pranav I prepared the questions for interview with the POC and made the presentation. It was an exciting
Lalpuria experience for me.
I got to know about Capacity planning in-depth after this project after performing EOQ and safety stock
analysis. We had recommended a safety stock to service the unfulfilled after peak demand slows down.
Rachit
This should help Krishna Foods to improve their revenue and bring down the opportunity cost.
Ahlawat
Shivraj I learned a lot from this project. Interaction with a real business and understanding it’s bottlenecks
Deshmukh provided hands on operations learnings.
I contributed towards finding ways to improving employee productivity and had a tremendous learning
Tanya Goyal
experience.
This was an exciting project for me, I was keenly involved in all works and got to learn a lot about the
business, first we went with our gut feel on layout planning then introduced REL chart for better results.
Vydyula Lalith
Kashyap This should improve operational efficiency of Krishna Foods.
22 | P a g e