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BUSINESS SCHOOL

Student: Tran Duc Viet


Do Hoang Nam
Le Thi Thu
Nguyen Thi Hang
Class: EMBA12C

Table of Contents
............................................................................................................. i
1 Executive Summary
2 Overall about Dominos
2.1 Introduction
2.2 Corporate vision
2.3 Global Strategic objectives
3 Process Design
3.1 Product Service Continuum
3.2 The Conversion Process
3.3 The Production Process
4 Finding problems and Suggestion for Improvement
4.1 Main problems:
4.2 Suggestion for improvement

1. Executive Summary
This report has been prepared to analyze the processes management of
Domino's Pizza, an American restaurant chain and international franchise
pizza delivery corporation.
Domino's Pizza had a guarantee that customers would receive their pizzas
within 30 minutes of placing an order or they would receive Free Regular
Pizza Voucher. In Vietnam, The company continues to offer the 30 minute
guarantee for orders. In order to do this guarantee about time delivery and
quality of Pizza, Domino have an excellent process management.
Through team research, case study analysis, a store visit, interviews and
insights from Dominos existing employees, application of theoretical concepts,
models and prior experience, we analyse the processes of Dominos to find
strengths and weakness for the success of Domino. As a result, we find out 2
main problems which need to improve: First, since the process is not
automated, individual efficiencies of team members results in an uneven flow
of work. Second, Another major concern facing the local Vietnam franchise is
that the drivers are not equipped a GPS based navigation system, efficient ontime deliveries are primarily dependent on the topographical knowledge of the
individual drivers and once again, it is left to an individuals capabilities to
ensure on time deliveries. Finally, we give some suggestion for improving the
above problems.

2. Overall about Dominos


2.1 Introduction:
Domino's Pizza is an American restaurant chain and international franchise pizza
delivery corporation headquartered at the Domino Farms Office Park (the campus being
owned by Domino's Pizza co-founder Tom Monaghan) in Ann Arbor Charter Township,
Michigan, United States. Founded in 1960, Domino's is the second-largest pizza chain in the
United States (after Pizza Hut) and the largest worldwide, with more than 10,000 corporate
and franchised stores in 70 countries. Domino's Pizza opened in Vietnam on 19th November
2010.
2.2 Corporate vision
-

Vision: number 1 in Pizza


Number 1 in People.

Mission: sell more Pizza, have more fun.


2.3 Global Strategic objectives

Strategic objectives adhere to the companys vision statement, Dominos key


strategic objectives are:
Targeted international growth competitors.
Menu expansion, vary price points, 24 hour delivery model competitors.
Use Company owned stores in the US and Australia as a test bed for new
innovations IT Strategy.
Increase investment in training and auditing of stores to provide a consistent
service and good quality of products Human Resource Strategy.
Allow master franchisees to apply their knowledge of the local market and cuisines
Knowledge Management Strategy.

3. Process Design

3.1 Product Service Continuum


Dominos as an entity is rather unique in that it straddles both the product based supported by a
service package and Service based with a product element in the Product-Service continuum.

Service based with product


Product Based supported by a service
Package- The Product(Pizza) not only
Needs to be manufactured accurately,
It needs to be delivered to the end
Customer within a specified amount
Of time and in optimal conditions

element- the Customer buys in to a


service wich delivers an end product in
the form of a Pizza

3.2 The Conversion Process


The value conversion process has tangible and intangible elements, with the customer being present
in important stages in the value chain. With the introduction of open kitchens, the customer who is
waiting for his / her takeaway is a part of the entire experience right from the time the order
placement to the food consumption.

Transforming
Resources(1) Staff
(2) Kitchen
Equipment

Transformed
resources(1)
ingredients
(2) Recipies

Figure 2 The Conversion Process: Dominos

ProductPizzas &
other food
items

Dominos is also in a unique position when it comes to the product they manufacture:
Volume: High volume the overall volume justifies modern kitchens and trained staff who operate
the kitchen and the front desk.
Variety: While the overall products are standard (pizzas), the customers might, based on their own
preferences ask for certain toppings to be added or removed which means the system needs to cope
and be flexible.
Variation in demand: The order volume peaks during lunch and dinner times. Alternatively, there
are periods in the day where the demand is low.
Degree of visibility: This varies from very high to low, given the open kitchen format that Dominos
has adopted, a customer choosing the takeaway format has full visibility of the production process
while a customer choosing the home delivery option has no visibility until such time the product
reaches his doorstep.
Dominos has chosen a unique Product / Service mix that reflect in the production line method the
company follows.

Figure 3 Volume Variety Mix: Assembly Line: Dominos

Given that the pizzas and other items need to be prepared with a high degree of consistency,
Dominos has chosen to use the assembly line approach to produce its pizzas, while at the
same time they have retained the flexibility of a batch flow process. Essentially, the
production process at a Dominos kitchen utilizes the consistency and efficiencies that
comes from using an assembly line approach while retaining the flexibility that comes from
adopting a batch type manufacturing process. It is useful to note that using the assembly
line approach also gives a Dominos outlet the flexibility to meet higher volumes during
peak hours. Dominos calls the assembly line the make line.

3.3 The Production Process


The production process is very streamlined and structured - from the order placement to the
final delivery to the end customer.
Step 1: The customer initiates the order. It could be through the phone, internet or a walk-in
to the restaurant.
Step 2: The Dominos representative takes the order and enters it into the Dominos PULSE
system (a proprietary system that streamlines the order taking process).
The PULSE system increases efficiencies at a store level. The key functions of this system
are:
(a) Touch screen ordering: Improves order taking accuracy and efficiency especially
during busy periods.
(b) Delivery driver routing system: Improves delivery efficiency.
(c) Improved MIS capabilities.
Step 3: The order displayed on the screen on the assembly line along with the customers
specifications.
Step 4: One of the team members in the assembly line picks up the work order, prepares the
dough and applies the sauce and cheese accordingly.
Step 5: In the next step of the make line another team member add the appropriate type /
amount of toppings, and then places it into the oven.
Step 6: After the allotted baking time, a third member of staff removes the pizza from the
oven, and places it in a box (which has the order type & number displayed to ensure
accuracy of delivery). The pizza is then ready for delivery.
Step 7: The pizza box is put into a hot-bag and is dispatched through a delivery driver or
handed out for collection by the waiting customer.The following figures further illustrate
various aspects of Dominos operations. Figure below establishes the entire value chain until
delivery.

Order
Placed

Phone
Web
Collecti
on

Wings

Assembly

Pizza
Personal
Small
Medium
Large
Side Orders
Chicken
Strips

Line

Chicken
Dunkers
Potato
Wedges
Chicken

Bo
xes
Drinks
Icecreams

Personal
Box
Small
Box
Medium

Placed
Cookin
g

In
Oven

Packing

Box
Large
Box
Side
Orders

Sales

Delivery
Collectio
n

3.3.1 Store Layout:


Dominos adopts a process dominated store layout wherein common processes are clubbed together
as the product moves between stations. The integrated floor plan at most Dominos stores facilitate
the movement of products and team members between stations to manage capacity during peak
hours and minimize bottlenecks.
The store layout is designed to cope with the average peak hour movement of goods and people.
The storage area is setup to stock the ingredients for three days. The layout design enables the
optimal use of space and equipment thereby enhancing the skills and efficiency of the team
members, it also allows them to adapt to different level of production. Dominos also ensure that the
health and safety norms are adhered to in order to maintain safe working conditions for the staff.
The standardization of the surface materials for the interiors across all its stores in UK provides a
comfortable environment for the staff and the customer and enforces the brand image.
A typical Dominos store layout includes the following: Reception, Assembly Line, Oven Packing
area, Office, Cold Storage, and Washing Area.

4. Finding problems and Suggestion for Improvement


4.1 Main problems:
There are 2 main problems which need to improve:
-

First, since the process is not automated, individual efficiencies of team members
results in an uneven flow of work.

Second, Another major concern facing the local Vietnam franchise is that the drivers
are not equipped a GPS based navigation system, efficient on-time deliveries are
primarily dependent on the topographical knowledge of the individual drivers and
once again, it is left to an individuals capabilities to ensure on time deliveries

4.2 Suggestion for improvement:


- The assembly lines need automation in order to remove the inefficiencies caused by
the manual movement of products along the assembly line.
- GPS based navigation system would enable a reduction in the delivery times, and
thus driving up overall efficiencies.

Reference
1. BIS John Reynolds, Dominos Pizza Inc. http://web.ebscohost.com/ehost/detail?
sid=5b87caa3-d294-4899-9e929941787fd7ab
%40sessionmgr14&vid=3&hid=12&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d
%3d#db=bth&AN=53576535
2. Dominos Pizza
http://www.dominos.com.au/corporate/vision-mission
3. Domios Vietnam
http://dominos.vn/
4. DOMINO'S LETS YOU SEE THE WHOLE PIZZA PROCESS WITH
NEW LIVE WEBCAM
http://www.fastcocreate.com/1682886/dominos-lets-you-see-the-whole-pizzaprocess-with-new-live-webcam
5. How Domino's CEO Ajay Kaul makes sure the 30 minute promise is kept
every time
http://articles.economictimes.indiatimes.com/2013-0322/news/37904259_1_domino-s-pizza-india-pizza-maker-pizza-store

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