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G4 POM Project

The project proposal report focuses on optimizing operational efficiency at Krishna Foods, a South Indian breakfast outlet facing challenges like single-person management and inefficient kitchen layout. Key issues identified include bottlenecks in service during peak hours, workforce inefficiencies, and a lack of online delivery options. The report outlines methodologies for analysis and recommendations to improve inventory management, layout planning, and workforce productivity to enhance overall profitability.

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Lalith Kashyap
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0% found this document useful (0 votes)
44 views22 pages

G4 POM Project

The project proposal report focuses on optimizing operational efficiency at Krishna Foods, a South Indian breakfast outlet facing challenges like single-person management and inefficient kitchen layout. Key issues identified include bottlenecks in service during peak hours, workforce inefficiencies, and a lack of online delivery options. The report outlines methodologies for analysis and recommendations to improve inventory management, layout planning, and workforce productivity to enhance overall profitability.

Uploaded by

Lalith Kashyap
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 22

A PROJECT PROPOSAL REPORT ON

Optimising Operational Efficiency at Krishna Foods

For the Course:


Production & Operations Management
(AY2024- 2025: TRIMESTER-III)

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)

(Batch of 2024- 26)

Submitted to
Faculty Mentor
Prof. (Dr) Ashu Sharma,
Professor Production & Operations Management,
School of Business Management,
SVKM'S NMIMS, MUMBAI

18h FEBRUARY 2025


TABLE OF CONTENTS
1. Introduction .................................................................................................................3
2. Identification of the Issues ..........................................................................................4
3. Methodology ................................................................................................................5
4. Analysis ...................................................................................................................... 6
4.1. Inventory Management ......................................................................................6
4.2. Layout Planning ..................................................................................................8
4.2.1 Current Layout ............................................................................................. …..9
4.2.2 Issues ..................................................................................................................10
4.2.3 REL Chart and Closeness Rating ..................................................................….11
4.2.4 Recommendations ..............................................................................................12
4.3. CapacityPlanning ...............................................................................................15
4.3.1 Current Methods ................................................................................................16
4.3.2 Issues ..................................................................................................................16
4.3.3 Solving for Demand Forecast .......................................................................….17
4.4. WorkforceEfficiency ..........................................................................................17
4.4.1 Current Methods .......................................................................................... …..18
4.4.2 Issues ................................................................................................................. 18
4.4.3 Findings and Recommendations ........................................................................19
5. Conclusion ..................................................................................................................20
6. References ..................................................................................................................21
7. Self-Appraisal ........................................................................................................... 22

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.

2. Identification of the Issues

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.

 Examining the current layout and identifying bottlenecks


 Examining Inventory management systems and improve the processes
 Examining the Capacity Planning systems and make the demand forecast
methodologies better
 Improve the efficiency of current workforce

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.

Dish Orders Production


Price Name per day Revenue Process Ingredients
Plain Rice, yellow moong dal, Fenugreek,
₹35 Dosa 35 ₹1,225 Job Salt, Water, Oil
Rice, yellow moong dal, Fenugreek,
Salt, Water, Potato, Onion, Green chili,
Masala Ginger, Mustard seeds, Curry leaves,
₹40 Dosa 35 ₹1,400 Job Turmeric
Rice, yellow moong dal, Fenugreek,
Onion Salt, Water, Onion, Green chili,
₹50 Dosa 10 ₹500 Job Coriander leaves
Green gram, green chili, Onion, Ginger,
₹60 Pesarettu 20 ₹1,200 Job Cumin seeds, Salt, Oil
MLA Green gram, Rice, Green chili, Ginger,
₹70 Pesarettu 20 ₹1,400 Job Cumin seeds, Salt, Oil, Upma
₹35 Idli 140 ₹4,900 Batch Idli rice, Black gram, Salt, Water
Wheat flour, Salt, Water, Oil (deep
₹40 Poori 150 ₹6,000 Batch frying)
Black gram, green chili, Curry leaves,
₹40 Vada 120 ₹4,800 Batch Black pepper, Salt, Oil (deep frying)
Semolina, Water, Mustard seeds, green
₹40 Upma 20 ₹800 Batch chili, Curry leaves, Ghee, Salt, Tomato
Palli Peanuts, Chana dal, Fresh green chilies,
Chutney Batch Salt
Ginger Ginger, Dry red chili, Jaggery, Salt, Oil,
Chutney Batch Chana dal, Sesame seeds, Coriander
Bottle gourd, Cabbage, Beans, Carrot,
Ivy gourd, Coriander, Mint, Curry
Kurma Batch leaves, Tamarind, Turmeric powder,

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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

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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.

Ingredient Order Order Price


Perishabl Cost per Cost per
quantit frequenc fluctuatio
e time day month
y y n
Rice 4kg daily small ₹200.00
Urad dal ₹1,400.0
10kg daily small
0
Fenugreek ₹12.00
100g daily small
seeds
Salt 2kg daily small ₹30.00
Oil ₹1,440.0
10L daily moderate
0
Potato 4kg daily moderate ₹100.00
Onion 4kg daily moderate ₹160.00
Green chili 4kg daily moderate ₹140.00
Ginger 1kg daily small ₹60.00
Mustard ₹30.00
250g daily small
seeds
Curry ₹20.00
250g daily small
leaves
Turmeric 3kg monthly small 6 months ₹30.00 ₹660.00
Coriander 2 ₹40.00
daily small
leaves bundles
Green gram 1kg daily small ₹120.00
Cumin ₹35.00
3kg monthly small 6 months ₹990.00
seeds
Semolina 1kg daily small ₹45.00
Wheat flour 15kgs daily small ₹630.00

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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

4.2. Layout Planning

4.2.1 Current Layout

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.

Impact of These Issues:

 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.

4.2.3 REL Chart and Closeness Rating

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

Key Changes & Improvements:

 Dosa Station & Frying Pan Placed Closer to Food Display:


The Dosa Station and Frying Pan (for Poori & Vada) are relocated next to each other and
closer to the Food Display Counter. This reduces transfer time for freshly prepared food,
speeding up order fulfillment.

 Idli Machine Positioned Further Back:


Since Idlis are prepared in bulk (around 10 times per day), they don’t require frequent
movement. Keeping the Idli Machine farther away frees up high-movement areas for dosa
and frying operations.

 Reduces Worker Movement & Congestion:


Minimizing unnecessary movement between workstations leads to faster service times and
more open space for staff, reducing fatigue and errors.

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. Capacity Planning

4.3.1 Current Methods


Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Demand 0.8 0.8 1 1 1 1.2 1.5
Weight

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.

4.3.3 Solving for Demand Forecast

Step 1: Demand Forecast for a Day

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.

 Forecasted Demand (Saturday):


100 people × 1.2 = 120 people on Saturday

Step 2: Item-Level Demand Forecast

The demand for each item is as follows:

 Dosa Demand:
Plain Dosa (35) + Masala Dosa (35) + Onion Dosa (10) = 80 Dosas per day.

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Saturday Adjusted Demand for Dosas:
80 × 1.2 = 96 Dosas.

 Poori Demand:
150 Pooris plates per day.

Saturday Adjusted Demand for Pooris:


150 × 1.2 = 180 Poori plates.

Step 3: Optimal Batch Size Calculation

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

Optimal Batch Size for Dosa Batter:


Prepare 30.98 liters of batter daily.

Poori Batter:

 Demand: 180 Pooris


 Ordering cost: ₹100 per batch
 Holding cost: ₹20 per liter
 1 Poori requires 0.05 liters of batter

Optimal Batch Size for Poori Batter:


Prepare 42.43 liters of batter daily.

Step 4: Safety Stock Calculation


16 | P a g e
To account for fluctuations in demand, we calculate the safety stock for both Dosa and Poori.
Safety Stock = Maximum Daily Demand - Average Daily Demand

Dish Name Avg Orders per Day Max Daily Demand Safety Stock
Plain Dosa 35 38.5 3.5

Masala Dosa 35 38.5 3.5


Onion Dosa 10 11 1
Poori 150 165 15

Recommendation:
To cover demand fluctuations, maintain enough batter to make 8 extra dosas and 15 extra
pooris.

Step Dosa Poori

Demand Forecast 96 Dosas 180 Pooris

Optimal Batch Size 30.98 liters of batter 42.43 liters of batter

Safety Stock 8 Dosas 15 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

4.4.1 Current Methods


These are the roles and descriptions of current employees

Employement Wage per


Worker Type Output day Role description

Head Can do everything, main job is to look over


master Permanent 1 ₹800.00 all the processes, works at the dosa station

Master Permanent 1 ₹700.00 Frying Pan and Idli machine

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

Helper Temporary 0.7 ₹500.00 General work (everything except dosa)

Cleaner Temporary 0.7 ₹500.00 Utensils and plates

Worker Temporary 0.6 ₹500.00 Extra worker on Saturday and Sunday

Worker Temporary 0.6 ₹500.00 Extra worker on Saturday and Sunday

4.4.2 Issues

1. Temporary Workforce Challenges:

● Reliance on daily temporary workers leads to inconsistency in skill levels and


familiarity with processes, requiring frequent supervision and repeated instructions.

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.

3. Quality Control Issues:

● Unfamiliarity with procedures results in more mistakes in tasks like plating, packing,
and cooking, impacting the quality of food and service.

Head Master Master Temp All

Effective output 1.00 0.90 0.70

Headcount 1.00 1.00 4.00 4.70

Revenue ₹4,728.72 ₹4,255.85 ₹3,310.11 ₹22,225.00

Variable Cost ₹1,277.00 ₹1,277.00 ₹1,277.00 ₹7,662.00

Fixed Cost ₹150.00 ₹150.00 ₹150.00 ₹900.00

Wages ₹800.00 ₹700.00 ₹500.00 ₹3,500.00

Profit ₹2,501.72 ₹2,128.85 ₹1,383.11 ₹10,163.00

Efficiency 3.13 3.04 2.77

18 | P a g e
Head Master Master Temp All

Effective output 1.00 0.90 0.80

Headcount 1.00 1.00 3.00 4.30

Revenue ₹5,168.60 ₹4,651.74 ₹4,134.88 ₹22,225.00

Variable Cost ₹1,532.40 ₹1,532.40 ₹1,532.40 ₹7,662.00

Fixed Cost ₹180.00 ₹180.00 ₹180.00 ₹900.00

Wages ₹800.00 ₹700.00 ₹580.00 ₹3,500.00

Profit ₹2,656.20 ₹2,239.34 ₹1,842.48 ₹10,163.00

Efficiency 3.32 3.20 3.18

% increase in
efficiency 14.84%

4.4.3 Findings and Recommendations

Key Findings

1. Wage Increase for Temporary Workers:


○ Temporary worker wages were increased from ₹500 to ₹580, which positively
impacted their productivity. The rise in wages likely boosted morale, leading
to better performance and efficiency.
2. Improved Productivity:
○ Effective output per temporary worker increased from 0.70 to 0.80, reflecting
better utilization of labor. This improvement aligns with concepts of lean
production and motivational theories, which emphasize the positive effect of
fair compensation on worker output.
3. Reduction in Workforce:
○ The number of temporary workers was reduced from 4.00 to 3.00, yet
effective output per worker increased. This suggests better resource utilization
and more efficient workforce management, resulting in cost savings without
sacrificing production capacity.
4. Efficiency Gains:

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.

Recommendations for Improving Productivity

1. Streamline Workforce Further:


○ Given the reduction in temporary workers without impacting productivity,
Krishna Foods should explore the possibility of further optimizing the
workforce. This could involve reducing headcount in low-output areas while
ensuring that remaining workers are highly productive.
2. Enhance Worker Training:
○ To further improve output per worker, Krishna Foods should implement
regular training programs that focus on skill enhancement, task efficiency, and
time management. This will help sustain and build on the current gains in
worker productivity.
3. Refine Task Allocation and Scheduling:
○ With fewer workers now achieving better results, Krishna Foods should
analyze task allocation to ensure that the most productive workers are assigned
to critical tasks. Additionally, refining work schedules to align with peak
demand times will help maintain high productivity levels during busy hours.
4. Leverage Technology for Efficiency:
○ Exploring simple technologies, such as better time-tracking systems or
performance metrics tools, could help monitor and optimize worker efficiency
in real-time. Small adjustments based on data can lead to significant
improvements in productivity.

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.

4. Krajewski, L. J., Malhotra, M. K., & Ritzman, L. P. (2019). Operations management:


Processes and supply chains (12th ed.). Pearson.

5. Nahmias, S., & Olsen, T. L. (2015). Production and operations analysis (7th ed.).
Waveland Press.

6. Stevenson, W. J. (2017). Operations management (13th ed.). McGraw-Hill Education.

Industry Reports:

7. Deloitte. (2023). The evolution of food service operations: Innovations in inventory


and workforce management. Deloitte Insights.

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.

11. Ohno, T. (1998). Toyota production system: Beyond large-scale production.


Productivity Press.

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 successfully devised and implemented an innovative solution to enhance workforce productivity,


Garima resolving a long-standing challenge and driving measurable improvements. I learned importance the
Vasanta balancing tradition with modernization, while recognizing the value of quantitative analysis and
technology in improving operational efficiency.

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.

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