Chili's Production Flow

Chili’s uses what we call a batch flow in order to provide the customer with the food. This flow is similar to an assembly line but rather than producing a ton of the same product it produces products in small batches, each batch of products than flows from one work area to another in the kitchen. For example a burger would start on the grill in order to be cooked than it would go to another area in order to receive its toppings and bun, than it would be past to the fry station in order to receive a side of fries.

Chili’s operates with 3 major stations or work centers, taco/fry, the grill, and salad/nacho. Each station produces its own batch, taco/fry is responsible for all of the fried food, the grill produces the steaks, burgers, fajitas and sea food, and last salad/nacho produces all of the salads and nachos and quesadillas. From those three stations, once produced it moves to what you call the window, which is another station. The window is where the food preparer sets the plate and allows it to be sent to the table for the hungry customer.

The advantage to using a batch operation is that it can be used to produce many different products and each product can have a different flow path, which allows certain stations to be skipped over. This allows for a fast service in order to get the food out to the customer. The other advantage is that batch operations use general-purpose equipment, this equipment is not specialized in making just one product. The advantage here is that on one grill a chili’s cook can make a burger, a steak, salmon and a fajita all at the same time on the same large grill. This operation is much more flexible than an assembly line and works extremely well when products need to be made in small batches and produced quickly.

The batch operation allows for a fast paced work environment, and this is good because chili’s uses a make-to-order customer order. In this process the food begins production once the customer has ordered it. The server takes the order and places it into a computer from there it is sent to a screen in the kitchen and the cooks immediately begin cooking it. This allows for individual orders to be identified during the production. The advantage to this is that there is no finished goods inventory.

In the make to order process the focus is on the length of time it takes to produce and deliver the product. In chili’s this is known as the ticket time, chili’s has requirements that must be met for each shift. These requirements have a 95% fulfillment, during the lunch hours (11am-3pm) appetizers must be produced in 7 minutes and meals must be cooked in 12 to 15 minutes depending on the temperature of the meats. At dinner time (3pm-11pm) appetizer must be cooked in 9 minutes and dinners must be produced in 13 to 16 minutes depending on the temperatures. The time is different between day and night because of the intake of customers. Ticket times are kept in the computer and analyzed by corporate, and managers on duty at the end of every shift. The ticket time percentage is than posted in the kitchen for all cooks, managers, and servers to see. This way the restaurant is aware of their success or failure in order to reward them or to inform them that they must work harder. When ticket time goals are met the kitchen staff as well as the server receives small rewards, such as a free meal card, or a day off card.

The make-to-order operation is the best way to go in a restaurant because the intake of customers is so unpredictable. It allows the product to be made when the order arrives this way there is no money wasted on inventory. The problem with this is that if your operations fail at times, it causes a delay in the production of food which causes a delay on the food to the table. This happens often at many restaurants and this causes managers to comp food and causes the business to lose out on money. The store manager must be able to produce food and service in a timely manner in order to keep the make-to-order process working and keep the intake of customers flowing.

Chili’s falls into the batch and job shop make to order/assemble to order slot when it comes to the Process Characteristics Matrix. This process can be changed but the fact that chili’s cannot predict how many customers they will serve a day this method works best. The make-to-order method allows products to be produced upon order. This works great for chilis because you don’t know what someone is going to want to eat that day. The restaurant industry is unpredictable and this causes them to use the batch make to order operation.

Chili’s could also potential begin to use mass customization, which is the use of a common process to make many different products. The production world is used to mass production rather than mass customization because it is hard to produce many products all customized at a fast pace. Traditional mass production is based on economies of scale; this is a high volume product being produced with few options. Mass customization relies on economies of scope, this process allows for a variety of style in a product, but the product is being produced by the same common process.

Mass customization allows for many different products to be produced by the same process. This would work very well in chilis if they set up a correct lot size. They would have to set an order amount and that order would be made and customized to the customers liking. Out of the three forms of mass customization, modular production, fast changeover, and postponement, modular production would work best for Chili’s because it provides a variety of options. So many different products can be ordered and made using the same production line. It also bases itself on made-to-order production, when the order is placed the food is made.

Chili’s can benefit from the modular production mass customization method because they make many different products and make them to order, but the confusion would be setting a lot size, because the company cannot predict exactly how many customers they will serve a day. The method of batch operations and made to order productions works best for them currently.







MASS CUSTOMIZATION

Chili's Inventory Management Systems

Chili's corporation wants’ to optimize the inventory process, by doing this they must monitor the inventory levels by documenting their internal stock movement within the warehouses they use. They ideally want to track all materials and supplies to maximize resources in order to reduce their overheads on food and restaurant supplies. Chili’s has set up automated inventory systems in order to improve customer service and gain efficiency.

The system Chili's uses for its food ordering is known as Zamfire. In simple terms Zamfire is a P system; Chili's sets ordering days during their work week for trucks to deliver food products. The amount of food that needs to be ordered is the unknown, because the clientele fluctuates in the restaurant industry so much. This is why a P system is the best solution for their ordering. It allows for a set order date but an unknown amount of product. The advantage of using a P system is that a staff member or a manager would not have to check their inventory every day, they would only have to check the inventory P amount of times. That could be once a week, or once a year; In Chili's case it is most likely once a week because of the intake of customers. It is also an advantage to use a P system when ordering multiple products from the same provider and when the item being ordered is a lower price.

The Zamfire system sets up a target T for the company through computerized sales and inventory, this way the target T is set so they know how much is needed to be ordered on those delivery days. The Zamfire ordering process is overviewed by Purchase Manager, an online purchasing over viewer system that ensures the sale and delivery of a product. Purchase Manager is installed in order to track step by step sales, inventory, buying, and delivery of every product. If you are interested in setting your business online operations up with a Purchase Manager feel free to check out their website at Purchase Manager.

Chili's also uses a very popular company for its restaurant supplies known as Wasserstorm. Wasserstorm prides itself on "carrying every culinary essential you could need". It is the world’s leader in restaurant supplies and equipment; it has over 30,000 different products to choose from and 5 large warehouses conveniently located across the United States. Wasserstorm guarantees 2 day delivery for all of its purchases and provides its account holders with 24/7 online services.

In this system Chili's would be using what we call a Q system because you are unsure of when to order but you will know what to order.They also use a Q system for their restaurant products because they are of a higher price. It is an advantage to use a Q system when you are ordering more expensive products. In the restaurant industry a product could break, or you may need to provide the restaurant with a new product. Wasserstorm works great for this because they allow you to order as much as you want whenever you need it, and they guarantee a 2 day delivery period. Wasserstorm prides itself on great products and great service; if you’re interested in finding out more about Wasserstorm and their products check out their website wasserstorm.com.

Chilis Corporation

Operations Management
4010-16-09
Professor Abraham
Group 4
Anthony Bora
Andrew Fowlkes
Keri Buthmann
Ankit Kohli

Chili's Grill and Bar was founded on march 13th 1975 by Larry Lavine. The first location was originally a postal station located on Greenville Avenue in Dallas Texas. Lavine, wanted to create a full service affordable place to dine for burgers and chili. His idea was a major success, by 1980 22 more locations opened and in 1983 Lavine sold his idea to Norman E. Brinker. Brinker now has Chili's in all 50 U.S. states and 24 international locations. Chili's is currently the top corporate restaurant in its class right now when compared to such restaurants as Fridays, Applebees, Bennigans, and Ruby Tuesdays.
Chili's prides itself on giving back to the community and in many foreign countries, Chili's has placed restaurants on air bases this way military can access Chili's. Some locations are the march 2006 opening of the Osan Air Base location and the August 2004 opening of Chili's on the Ramstein Air Force Base.
Not only has Chili's helped out the military but every September Chili's runs the "Create a Pepper" campaign. Any one can enter any Chili's location and color a pepper for a dollar. The pepper then gets hung around the restaurant on display, and the dollar gets donated to St. Jude's Children's Research Hospital. In the month of September every Chili's in the world picks one day that month where all of their earnings go directly to the St. Jude's Hospital, in order to aid in the research of brain cancer in children. Currently Chili's has raised $18.7 million and has committed to providing St. Jude with $50 million over a 10-year period.
Chili's is giving back to the community any way they can, and intends to continue their success, by providing great food and great service for an affordable price. Feel free to check out Chili's on their website at chilis.com or check out Brinker corporations site at brinker.com/.