Table of Contents

INTRODUCTION:..........................................................................................................................3

MAIN REPORT..............................................................................................................................3

I. Introduction to the organization...............................................................................................3

II. The role of operations management in an organisation:..........................................................3

1. Definition Operation Management:......................................................................................3

2. The role of OM in context :..................................................................................................4

2.1 Relationship between OM and other Funtionals...........................................................4

2.2 The effectiveness of OM with other departments:........................................................5

2.3 The Role of Operation Strategy:...................................................................................5

III. Supply chain management....................................................................................................7

1. Definition :............................................................................................................................7

2. Pizza Hut’s T3, T2, T1 Supplier...........................................................................................9

3. The effectiveness of SCM on Pizza Hut:..............................................................................9

IV. The relationship between effective operations management and the achievement of
tactical and strategic business objectives:......................................................................................10

1. Strategic Decions :..............................................................................................................10

2. Tactic Decisions:................................................................................................................10

3. Pizza Hut implements many business tactics:....................................................................10

V. Different techniques and analysis framework support operations managers.........................11

1. Different techniques and analysis framework....................................................................11

1.1 Capicity Plan:..............................................................................................................11

1.2 Supply chain planning and control:.............................................................................12

VI. Assess the use of digital technologies for operational performance...................................13

1. Customer Relationship Management (CRM) :...................................................................14

1
 2. Cloud Computing:..............................................................................................................15

3. Apply on Pizza Hut’s operation:.........................................................................................16

CONCLUSION:............................................................................................................................16

REFERENCE:...............................................................................................................................16

Table of Figures:
Figure 1..........................................................................................................................................................4
Figure 2..........................................................................................................................................................8
Figure 3........................................................................................................................................................12
Figure 4........................................................................................................................................................14
Figure 5........................................................................................................................................................15
Table of Tables:

Table 1.............................................................................................................................................6
Table 2.............................................................................................................................................7
Table 3.............................................................................................................................................9

INTRODUCTION:

A trainee assistant to the Operations Manager of Pizza Hut International Restaurant

Chain Group made a report analyzing the organization's operating principles. In addition,
it demonstrates how Pizza Hut's long-term support activities are done. What is the right
strategy and system to achieve the business strategy, and a series of Case Studies are
included to make the report easier to grasp

MAIN REPORT

I. Introduction to the organization

2
 Pizza Hut opened in Malaysia in 1982, with the restaurant at Plaza Yow Chuan, Kuala
Lumpur. The Pizza Hut chain has grown to more than 428 restaurants under its sole
franchisee, QSR Brands (M) Holdings Bhd. Pizza Hut strives to consistently achieve its
primary goal - to provide all guests with delicious, hot pizzas and happy smiles. Pizza
Hut stays true to its motto - "Easy" and "Better." Pizza Hut's mission is to make it
extremely easy for consumers to order their favorite pizza, with fast and affordable
delivery, for more people to enjoy. (Pizza Hut).

II. The role of operations management in an organisation:

1. Definition Operation Management:

Operations management is an activity that includes processes that are concerned with the
administration of company activities in order to achieve the maximum degree of
efficiency possible within an organization. Operation Management requires planning,
organizing, coordinating, and controlling resources to maximize efficiency while
producing goods and services that fulfill customer demands (Maiti & Maiti, 2021.

2. The role of OM in context :

2.1 Relationship between OM and other Funtionals:

OM activities cover many aspects related to people, technology, and deadlines.
Therefore, managers need sound technical, conceptual, and behavioral skills for planning
production, organizing, managing inventory, and controlling resources. Therefore, OM
does not perform these operations individually but is interactant and closely intertwined
with other sectors and functions in a firm. (Russell, R.S., Taylor, B.W. and Castillo, I.
(2022) )

3
Figure 1

Russell, R.S., Taylor, B.W. and Castillo, I. (2022)

Firstly, The Marketing Department provides activities related to identifying customer
needs and wants and satisfying them in a way that benefits the organization.
After researching and bringing the product to market, the MKT department continues
providing information on operations related to product flow forecasting, customer orders,
customer feedback, promotions, and product development plan. Conversely, MKT needs
to receive information from other functions, such as product or service availability and
delivery time to wholesalers and consumers. GRZEGORZEK, J.E.R.R.Y. (2021)
Secondly, The Human Resources department is responsible for the organization's
personnel-related activities. The primary operations revolve around finding and recruiting
suitable workers. In addition, HR also needs to plan to keep employees motivated in the
workplace, organize training programs and annual evaluations for employees, and control
human resources, including firing or outsourcing. . GRZEGORZEK, J.E.R.R.Y. (2021)
The next is the Finance department, which is responsible for all money-related operations
(cash and bank accounts). It is the responsibility of the finance department to manage

4
which activities the cash flows in and out of the company belong to. The finance
department needs to receive information from other departments (MKT, HR) to make a
financial plan for each project or each month. In addition, this department also handles all
aspects, such as paying suppliers, paying employees, and receiving payments from
customers. Russell, R.S., Taylor, B.W. and Castillo, I. (2022)
Last but not least, Supplier department is outside the organization but significantly
influences internal operations. Managers will cooperate with this department to order
materials for products and services and communicate requirements for material quality
and delivery time so that both parties get the best interest. Russell, R.S., Taylor, B.W. and
Castillo, I. (2022)

2.2 The effectiveness of OM with other departments:

The effectiveness that OM brings to the organization is valuable. When OM interacts

with other parts, the value it brings is as follows:
Human Resource: Operations management in the HR department is to plan personnel and
analyze jobs and employees to have the knowledge and understand their requirements
and nature, which will bring: Adequate human resources exist whenever needed for
operation in the organization. Employee retention and satisfaction, that is, employees
have no desire to quit the business. Minimize total personnel costs because proper action
is taken ahead of time to avoid wasteful staff surpluses and shortages. OBI,
J.A.M.E.S.N.W.O.Y.E. (2015)
MKT: Effective operation management enables tapping marketing opportunities and
defenses against marketing threats. It allows the firm to adjust its product and services to
the demands and preferences of its clients, as well as offers the organization market
intelligence. (Marketing information system: Meaning, importance and scope 2019)
Finance: Effective operation management in the Finance Department will obtain and
maximize profits. Ensure of financial stability of commercial organizations, including the
employment of different risk-aversion measures investment attractiveness is created.
Asyaeva, E., Gavrilenko, S.A. and Temirkanova, A.V. (2016)
Suppliers: Managers who manage operations effectively will assist organizations that
maintain an enormous vendor base to ensure supply continuity and increase buyer

5
 leverage while limiting supplier power. Building arm's length connections and employing
formal, typically short-term contracts that are subject to periodic rebidding, with
suppliers chosen mostly on price Shapiro, R.D. (1985)

2.3 The Role of Operation Strategy:

Operations strategy plays a vital role in businesses because it ensures that resources and
processes are appropriately managed. It constantly updates corporate operations and
strategy, helping companies to decrease risks, save money, embrace cutting-edge
technology, and remain successful. A solid operations plan may protect a company's
product or service quality while dramatically improving client experiences. Furthermore,
it may assist in enhancing goods, reducing returns, and assuring higher dependability.
Das, J. (2022)

Competitive priorities are a critical decision variable for operations managers in

operations management. Organizations must trade off competing priorities for specific
products, services, or projects. In a competitive market, no single business can be on top
in all dimensions of Competitive Priorities (Mary, I. and Justice, A. (2018)

Table 1

6
 In operations management, we try to ensure that the transformation process is performed
efficiently and that the output is of greater value than the sum of the inputs. The
transformation process itself can be viewed as a series of activities along a value chain
extending from supplier to customer.

The next role of the OM in the organization is Transformation Process is to create value
through effective management of Inputs into Outputs (products, services,...) In addition,
those values are also expressed as the output is of greater value than the sum of the input
Thakar, P. (2021) “Operation management.”
In business, organizations use the IPO model to understand their environment. The IPO
analysis model offers many advantages, which allow businesses to see the
interrelationship of all activities in a business.

Table 2

III. Supply chain management

1. Definition :

7
 Supply Chain Management (SCM) is a distribution channel for goods, starting from a
supplier of raw materials or components, then processed through professional
operations at factories and sent to distributors and retailers, and finally in the hands of
consumers. ProcurePort, S. (2023)

Supply chain management is an amalgamation of three major streams are as follows:

1) Sourcing, Procurement, and Supply management; functions developing

in obtaining/purchasing

2) Material management: duties include production planning and control

and progressing into extended materials management.

3) Logistics and distributions: This is the supply chain management stream that plans,
flows, and stores products and services, as well as related information, to fulfill the
consumer's needs.

1. Pizza Hut’s Supply Chain Management:

Figure 2

8
 The main objective of Pizza Hut's supply chain is to maximize supply chain surplus
to the maximum possible level. The supply chain surplus may be calculated by
subtracting Supply Chain Cost from Customer Value, indicating clearly that the
primary goal of the supply chain is to reduce costs while enhancing/increasing
customer value.
Pizza Hut also owns Supply Chain Services (SCS), which provides dough,
ingredients, equipment, and services to company-owned and franchised locations.
This methodology allows Pizza Hut to maintain quality standards and uniformity
across franchised locations and provides Pizza Hut with a large cash stream.
Pizza Hut’s direct suppliers are named:
• Pepsi Company
• Bake parlor company (Buns)
• Habib Oil Mills (First mineral water)
Indirect suppliers, who provide materials like cutlery and vegetables, come from their
warehouse include:
 Meat market (Their cattle)
 Vegetable market
 Sauce companies
All sauces and condiments used in Pizza Hut products are produced
according to an exclusive recipe, ensuring the product's uniqueness.
Distributor: Pizza Hut does not outsource distribution services but undertakes
logistics itself. This ensures not only product quality but also the time the orders
come to customers within 30 - 45 minutes.
Customer: The customers of Pizza Hut include everyone, from children to aged
people to geriatrics

2. Pizza Hut’s T3, T2, T1 Supplier

Table 3

SCM T3 supplier (Raw

T2 supplier T1 supplier
Stakeholder material)
Pepsi Carbonated water, sugar, Pepsi Bottling group and delivers product directly to

9
 Pepsi America's Pepsi:
emulsions, citric acid,
Received twenty-five retail stores of the three
additives and flavoring
pallets per load, each current channels DSD,
Company 1 from a limited number of
pallet of cans has eight Customer Warehouse,
suppliers or a sole
thousand one hundred Third - Party Distribution
supplier
sixty nine raw empty
Processing and storage of
Distributed meat to Pizza
Meat market Cattle on Pizza Hut's farm meat in Pizza Hut's
Hut Stores and franchises
Commissary

3. The effectiveness of SCM on Pizza Hut:

Supply chain management is one of operations management's most important

strategic aspects because it has many related functions. The restaurant industry, in
general, and Pizza Hut, in particular, always have a close relationship with their
suppliers and distributors, which shows the importance of SCM in restaurant
operation as it will ensure the kitchen materials are continually replenished, ensuring
the restaurant operates efficiently, keeping costs low and improving profits. Some
specific benefits when Pizza Hut applies SCM:
- Retain customers and enhance the experience:
Pizza Hut is a business that has been in the market for many years. Therefore,
retaining and improving customer experience is always a top priority. SCM ensures
that supplies are delivered on time and in good condition. Consequently, Pizza Hut
management also needs to regularly check to ensure the supply to the restaurant is as
expected. This will help maintain customer satisfaction, and positive experiences
about pizza quality will make them want to return to Pizza Hut. Pereira, S. (2022)
- Cost savings
Supply chain operations predict demand and manage flour, meat, and vegetable
inventory. This helps Pizza Hut reduce storage costs and slow-moving inventory. In
1
Supply Chain Management Diet pepsi (2018)

10
 addition, Pizza Hut also has accurate information, allowing them to close inefficient
and unnecessary facilities and save much money.
- Quality control:

Pizza Hut and supplier products and services work to the same standards, and quality
control problems can be detected earlier. This compliance contributes to sustainability
and customer satisfaction. In addition, Pizza Hut's proprietary condiments that have
issues will be promptly seen by the supplier Sauce Company and prevented from
having problems with Pizza Hut's products, resulting in a bad customer experience
and reduced revenue, as well as the reputation of Pizza Hut. Weinryb, D. (2023)

IV. The relationship between effective operations management and the achievement
of tactical and strategic business objectives:

1. Strategic Decions :

OM assists senior-level management in making strategic-level decisions. Such

decisions consider current constraints and conditions to shape effective systems and
processes throughout the company to gain competitive advantages. These strategic
activities have long-term effects and often require significant resource and cost
commitments. Van Mieghem, J.A. (2016)
The relationship between effective operations management and achieving strategic
Pizza Hut objectives is presented very closely. When Pizza Hut realized that after the
Covid-19 epidemic, many suppliers did not have enough materials to supply. The
Board of Directors and senior managers have continuously met and given ideas to
improve this situation immediately. Ultimately, Pizza Hut decided to set up its own
livestock and vegetable farm to directly control the source of raw materials on the
farm and in the warehouse but still keep the cooperation with the suppliers. Pizza Hut
combined old and new ingredients to its products to gauge whether customers would
react to the new components. This helps Pizza Hut ensure the availability of
ingredients, reduce suppliers' costs, and maintain customer satisfaction. Effective
operation management has helped Pizza Hut achieve many business goals for a long
time.

11
 2. Tactic Decisions:

Tactical decisions are also closely related to Operation Management but have a short-
term impact on the organization compared to strategic decisions. Tactical decisions
can be modified more easily than strategic decisions, and they involve fewer
resources. Strategic decisions, when operated effectively, give organizations quick
competitive advantages, making it easier to attract and retain customers. Weinmann,
M. (2015).

3. Pizza Hut implements many business tactics:

Order receipts have a discount code if the customer keeps them and returns them
within seven days. This helps in retention while increasing customer satisfaction.

Pizza Hut orders are always committed to delivery within 30 - 45 minutes to ensure
product quality. In addition, Pizza Hut delivers by its own shipping company, not
outside, so it is timely and flexible when there are any problems. If the delivery time
exceeds the committed time, the customer will receive a Voucher for the following
purchases. This will keep customers returning next time and not create opportunities
for competitors.

V. Different techniques and analysis framework support operations managers

1. Different techniques and analysis framework

1.1 Capicity Plan:

The process of evaluating all of a business's existing production resources,

including machinery, employees, and more, to determine whether the current
products and services of the organization can meet the customer's needs now and
in the future. To optimize the functionality of existing resources and determine
which resources to add and which to remove, organizations implement Resource
Capacity Planning.
Plan types can be divided into three categories: Workforce, Product, and Tools.
These three factors ensure the organization has enough key resources for short-
term and long-term plans.

12
 Workforce Capacity Planning: This strategy ensures that the business has the
necessary workforce to do the job well. If an increase in labor is required,
managers will have the basis to make changes to suit the company's plans.
Product Capacity Planning: This strategy ensures that the business is equipped
and has enough materials to complete the required products or services within a
specified time. Finally, Tool Capacity Planning this strategy ensures businesses
are equipped with the necessary tools, such as machines, vehicles, or assembly
lines, to ensure the quality and production time of the product or service.
(Simplilearn, 2023)

1.1.1 The effectiveness of using Decision Trees:

- It is easy to understand and interpret the information. The style of a Decision

Trstand, even for individuals not well-versed with statistical analysis.
- It is simple to prepare. Compared to other decision-making strategies, establishing
a decision tree is simple as long as have the necessary information.
- It is easy to design and simple to refine. Decision trees do not need to be too
complicated to be valid. Mapping out the paper possibilities takes only a few
minutes and aids decision-making. (Brooks, 2023)

1.1.2 Case Study:

Pizza Hut's supply has been affected after the Covid-19 pandemic. Therefore,
Pizza Hut wants to change a few factors about SCM:
Decided to build cattle and vegetable farms, accepting additional costs for
construction, recruitment as well as materials. Or corparate with new suppliers to
expand inventory. Pizza Hut estimates are as follows:
The ability to build a farm is 0.30
The possibility of cooperation with new suppliers is 0.70
Profit for each option
Estimated farm construction $500,000 - $650,000 depending on the construction
level
Partner with a new supplier $800,000 - $950,000, depending on the number of
new suppliers

13
 1.1.3 Using Decision Trees to Help Pizza Hut make decisions

 The construction of the farm only has 30% of the favorable market, and Pizza
Hut's profit is only from $500,000 - $650,000, so this is not the optimal
solution. Meanwhile, if Pizza Hut cooperates with a new supplier, 70% of the
market will be favorable, and high revenue will be from $800,000 - $950,000.

Figure 3

So this is the best solution for Pizza Hut to improve SCM

1.2 Supply chain planning and control:

Supply Chain Planning and Control facilitates the management of supply and
demand planning as well as material flow control. It is also the process of
forecasting product demand, planning materials and components, production,
marketing, distribution, and sale. Its purpose is to balance supply and demand so
that sales income revenue opportunities are fully exploited promptly and at the
lowest possible cost.

1.2.1 The benefits that Supply Chain Planning and Control brings:

- Flexible control of both internal and external supply chains

- Full visibility into demand and supply in the supply chain

- Full integration through a manufacturing model between production execution

and supply chain planning and control for on-time production and delivery

14
 - Be able to measure future needs and incorporate implementation strategies

Generate accurate demand forecasts through automated planning functions

combined with interactive planning. These forecasts trigger the supply planning
process to predict actual demand Simplilearn (2023)

1.2.2 Apply on Pizza Hut’s SCM:

The beverage supplier for Pizza Hut was formerly PepsiCo. However, Coca-Cola
recently sent notice of its desire to partner with Pizza Hut for Pizza Hut's new
product launch campaign. Pizza Hut implements Supply chain planning between
Coca and Pepsi to make the right decisions.

 Coca is famous for its two product lines: Coca and Coca Diet, which strongly
hit the psychology of today's customers. In addition, in this new product
launch project, Coca offers a reasonable price as well as will give priority to
Pizza Hut's campaign, thus achieving a higher score than Pepsi.

VI. Assess the use of digital technologies for operational performance.

15
 Adopting digital technologies enables organizations to improve their business
operations and achieve ambitious operational goals. This is a crucial reason
modern managers must understand the basic terms associated with a business's
digital transformation strategy and how to reduce costs and increase productivity
with technology. Some of the popular digital technology methods today are
Customer Relationship Management and Cloud Computing.

1. Customer Relationship Management (CRM) :

Figure 4 nextcrm.vn

CRM software records customer contact information such as email, phone,

website, and social media profiles. It may also automatically pull in other
information, such as recent news about a customer's preferences and contact
information. CRM software organizes information and improves customer
relationship management by creating a 360° view of customers, capturing their

16
 interactions with business, and displaying the information required to chat better
with customers.
CRM offers many benefits by collecting and organizing data about customer
interactions and facilitating the analysis of that data :
Increase productivity
With CRM, emails can be automatically generated and checked for effectiveness;
management can easily access the most recent details of a customer meeting and
find out basic customer information without leaving the call.
Empower sales management
Monitor sales-related activity, mobilize additional help when needed, and provide
teams with real-time updates. Manage the sales process from lead generation to
closing.
Improve sales metrics
Nurture the right leads promptly and effectively by focusing on the leads that
matter. The CRM data and reporting system provide insights into conversion
performance at different points in the sales funnel.
Increase customer satisfaction and retention.
Employees have easy access to customer interactions and more straightforward
complaint resolution. This creates a more positive experience for customers, who
no longer suffer from frustration. (What is CRM, (2021))

2. Cloud Computing:

17
Figure 5 thietbikythuat.com.vn

Cloud computing has penetrated every field of professional and social

development. Users can access it through desktop, laptop, tablet, and mobile
browsers. Businesses moving to the cloud is an important choice that will impact
all aspects of business operations. Due to market uncertainty, companies often
need help with scaling. The scalability of cloud computing allows companies to
grow efficiently, increasing their infrastructure and facilities without needing
additional storage.
Some of the benefits that cloud computing brings:
- Secure collaboration
Many organizations rely on connectivity and cloud computing that can provide
fast, simple, and reliable communication to team members worldwide. Any team
member can access the data in the cloud anytime to check, change or comment.
- Easy Access
Cloud computing enables rapid access to critical data, processes, and business
applications from anywhere with a reliable Internet connection worldwide.
Businesses no longer need to carry a tablet or laptop with a comprehensive suite

18
 of business software and dedicated applications. In addition, customers can use
any browser-enabled device.
- Backup and restore data easily
One of the most significant advantages of cloud computing is storage space. Any
relevant corporate data can be stored in the cloud, enabling connectivity and
usefulness. Furthermore, the cloud includes an integrated data backup and
recovery system to protect the company's data. The information is securely
protected from computer hackers, natural disasters, and even outright
unauthorized access. (Admin, 2022)

3. Apply on Pizza Hut’s operation:

Previously, when Pizza Hut had not applied digital technology in operation, it
faced many problems. Customer information is not highly confidential; hackers
can easily access transmission lines and steal information. In addition, too much
customer information causes congestion when looking up and hinders customer
care services. After applying CRM and Computing Cloud into operation, the work
at Pizza Hut becomes more convenient. The storage space is vast, but the security
is very high. The information will be unlocked only when entering the staff code,
fingerprint, or face recognition. All customer information is found with just one
click, saving time and enhancing the customer experience. According to a report
from Pizza Hut, the average of all customer reviews since the adoption of CRM
and Computing Cloud are above 4.7. This is the highest rate since Pizza Hut was
established and operated. From there, it can be seen the importance and
effectiveness of Digital Technology in general and CRM, Computing Cloud in
particular

CONCLUSION:

A report analyzing the organization's operating principles. In addition, it demonstrates

how Pizza Hut's long-term support activities are done. A series of the right strategy and
systems to achieve the business strategy and Case Studies are included to make the report
easier to grasp

19
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