ABSTRACT

In this report, we are presenting a case study as part of our coursework assessment for
MEM 575 course Industrial Management. For this case study, we choose Istina Café as our
place to study related to what we learn during class session. We would like to thank to our
lecturer Dr. Wan Mazlina Wan Mohamed for giving us knowledge for this course. Using the
knowledge provided in class, we able to finished the task given.

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CHAPTER 1: INTRODUCTION

Istina Café is a business which prepares and serves food and drinks in exchange for
money. Meals are generally served and eaten on the premises, but Istina Café also offers take-
out and food delivery service. Istina Café is open in the year 2005, first owner is run the
business from 2005 until 2012. Istina Café closes about ½ year before the second owner comes
to run back this business. The second owner runs this business from 2013 until now. We have
got the interview the owner that name is Mohamad Ezuan Bin Othman. Ms.Ezuan is
40 years old from Kelantan and live at Shah Alam Selangor. Now, Ms. Ezuan is run the Istina
Café business about 6 years until still operate until now. Istina Café serve all major meals, such
as breakfast, lunch, and dinner. As mention above, Istina Café prepare and serve the foods and
drinks likes ‘Nasi Goreng’, ‘Tomyam’,’Ikan Bakar’ and others. Istina Café also provide the
delivery service to the customers. For the delivery service, the customers need to call the
restaurant to give their delivery address. Then, the customers only have to pay RM 1 per order
for each delivery service. The delivery service will be provided only 4 to 6 km away from the
restaurant.

Organization Chart

En. Mohd Ezuan Bin Othman

(Restaurant Manager/ Owner)

Mohd Aiman Bin Othman Ms. Zulaikha Bt. Othman Othman Bin Hussin
(Executive Chief) (Accountant) (Assistant Restaurant Manager)

Cookers Dishwasher Cashier Waiters Delivery

Hakimi

Roslan

Bahyah

Ahmad
Aisyah

Arifin

Asyraf
Izzati

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CHAPTER 2: FORECASTING

Istina Café use naive approach to forecasting their cooking items in every 2 days. It is
because, they restock their ingredients every 2-3 days. Some of the important ingredient is
chicken, fish, meat, and other. This will be ensuring that food is still fresh. The naïve approach
method used because, they assume that their demand for ingredient is demand in next period
is the same as demand in most recent period. Below is the naive approach:

Period Days Demand Naïve Approach

1 Monday 145 -
2 Wednesday 150 145
3 Friday 180 150

From that table above, we can see that in Friday their demand for the ingredient is the
highest between other days. It is because that Friday is the closing for that week and forecasting
for the Monday in next week is 180. We think this method is accurate for forecasting their
demand.

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CHAPTER 3: PLANT LOCATION

The most important for the company makes is the plant location. This factor gives the
most impact on the growth of the company, especially in resources and cost issues. The
strategic location gives a good investment toward the company and can attract more customers.
Istina Café is located in Section 24, Shah Alam, Selangor Darul Ehsan, where is a good
strategic location for restaurant activities. This location is near the Uptown Section 24,
Apartments and also Kolej Akasia (INTEC) which is crowded by students and residences.
Besides, Istina Café is less competitive compared to others because of their speciality. Istina
Café is serving various hot dishes such as fried rice, mee curry, tomyam and etc. This café also
provides delivery services to whom not able to make attend to this café. Istina Café is
maximized their benefit by providing the best tomyam which import the chef from Pattani,
Thailand. This dish could attract more customers to come to this café. With this speciality, this
café can run their business smoothly and rapid movement, thus increasing the satisfaction of
the customers during enjoying their dishes.

Figure 2: Istina Café’s plant location

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CHAPTER 4: PLANT LAYOUT

The most important decisions which determine the long-run efficiency operations are
the plant layout. The plant layout is a good implication in order to initiate an organization’s
priorities is related to space, flexibility, processes, cost and also the quality of the work life,
customer contact and also image of the company. In Istina Café, it used the process-oriented
layout which managed the flow for food and drink. This is because the café deals with low
volume production. For example, the beverages and foods make at their own place and then it
served toward to the customer at the table. Istina café plant layout is as shown below.

Figure 3: Istina Café Plant Layout

This plant layout is essential because if it is not designed properly it will cause the lead
time in serving food and beverage to the customer and the customer satisfaction will decrease.

CHAPTER 5: HUMAN RESOURCES AND JOB DESIGN

In Istina Café, human resources management is managed by Encik Ismail Bin Jusoh
which is the owner of Istina Cafe. There is a task conducted by Encik Ismail Bin Jusoh which
are employee health and benefits.

1. Employee Health and Benefits

Istina Café provides medical benefits and health services for their workers if there any
injuries occurred during work time. Moreover, Istina Café also provides shelter for their
worker who didn’t have any living place to stay.

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CHAPTER 6: PROCUREMENT & INVENTORY CONTROL

The purchasing process is an essential part of every food service operation. All
competent cooks should be skilled in buying the appropriate ingredients, in accurate amounts,
at the right time, and at the best price.

For Istina Café, they restock their ingredients every 2-3 days. For example, they make
ingredients purchase on Monday. The next restock will be on Wednesday or Thursday
depending on the demand.

This will ensure that foods stay fresh every time it is cook. The purchaser does not use
specific calculation to determine the right quantity of ingredients to purchase, however it is
more naïve approach.

CHAPTER 7: PRODUCTION PLANNING AND CONTROL

For food production, Istina Café utilizing costumer food ordering pattern to prepare
the necessary ingredients that helps fasten cooking process. To manage the production and
control, the owner will create a menu with food costs in mind.

As an example. Fried rice is pre-cook in large quantity. Whenever costumer order a

menu such as ‘Nasi Goreng Ikan Masin’, the cook only need to put fermented fish and some
ingredient into the already pre-cook fried rice so that it will suit the costumer desire. This can
save almost 3-4 minutes by avoiding cooking from scratch.

Istina Café also assign certain staff for certain task. This help increase productivity so
that the food preparation can be done simultaneously. The owner also will review the food
and operating costs. This can help the restaurant management spot excess waste and even
theft.

Next, the owner will manage the inventory closely since food costs are primary cost
in restaurant management plan. The owner needs to know the ingredient needed in order to
track cost per meal for food to ensures that both fresh ingredient and dry good orders re
timely and accurate.

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CHAPTER 8: PROJECT MANAGEMENT

I. Task Management

The control achieved by creating a task list, delegated work to appropriate individuals,
managing the progress and staying on top of to do list.

II. Process

When deliver the food, automatically offer the required tools such as spoon

III. Transparency

When the food delayed, quickly take responsibility by backing with words and insisting on no
charge for the meals.

IV. Scheduling

The owner will schedule each process time to ensure the food ordered finish in right time with
a good effort of each dish.

V. Critical Thinking

The owner will consider the pros and cons of different solutions before selecting the best way
forward. This is because the restaurant weighed up the pros and cons of waiving bill but failed
to act simirlarly with its other customer.

VI. Leadership

The owner will help the staffs improve their leadership skill and find their motivational and
communication skills when working either in kitchen or customer service part.

Activity Description Immediate

Predecessors
A Clean the raw -
ingredients A B C D
B Chop the ingredients A
C Cook the foods B
D Serve food to customer C

Table 1: Activity Figure 4: Process flow

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CHAPTER 9: QUALITY MANAGEMENT AND CONTROL

1. Perform food cost calculations

The first step for owner to control food costs is by determine menu cost per diner. The
owner will calculate the expense of each ingredient that goes into dish or divide the total
number of diners serve per month by monthly food costs. The food costs also include the food,
delivery, theft and spoilage.

2. Purchasing

In order to facilitate the ordering process, the food materials are divided into two groups which
are:

1) Long storage life materials such as dry ingredients and seasonings that can be preserved
for long time use. The materials are checked every week and buy new if out of stock.
The owner will be responsible for this one.
2) Short storage life materials such as fresh meats, fruits and vegetables which need to be
consumed in short time. This category of ingredients will be ordered in small amount
and checked every single day to reorder if needed. The owner also will be responsible
to buy from supplier and confirms the quality of products.

3. Plan prep ahead of time

The owner will do a prep which can be deceptively time-consuming. The prepping will
start from three to five hours before service begins to get everything done in time and the owner
will stay organized as possible.

4. Tracking Food Usage

The owner will be taking consistent inventory of consumables and supplies. It helped the
owner to calculate the amount of ingredient use in a given time period and is there particular
ingredients that the owner does not really use which he or she can stop buying or purchase less
of.

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CHAPTER 10: MAINTENANCE MANAGEMENT

There are several types of maintenances that being used by the owner,

1. Daily maintenance

The Istina Café owner will create a schedule of daily maintenance which can help ensure
the proper functioning of equipment. This can include cleaning and properly covering prep
cooler, emptying grease catcher wash down floor mats in kitchen to prevent grease build up
and clearing drains.

2. Weekly/Monthly maintenance

These tasks include things like checking and clearing drip tubes, do an Inspection on every
piece of equipment used and replace as needed, check gas hoses for leaks and wipe down the
ceiling, floor and walls to avoid bacteria growth.