International Ataturk Alatoo University New Technologies Faculty Department of Industrial Engineering

Simulation Course

Daamdan 2012 Student Simulation Project

Bishkek 2012

Daamdan 2012 Student Simulation Project

Queuing system of Daamdan Buffet

Vision Analyzing and optimizing the queuing system to reach the most effective service in Daamdan.

Mission To comprehend the course and gain an experience performing a real life application.

Objectives To simulate the all work days of 1year and calculate waiting time and waiting cost. To cut the line in order to escape from the queue and gain maximum profit with implementing new management.

INTRODUCTION In order to reach our goal we simulate all the serving process with M/M/S method of simulation of queue. We take only work days and the just lunch time. Because, on weekends there are not many customers and same thing in the morning and afternoon. For these reason, we don't need to add these times to our simulation. For these simulations we took data from two work days and with the help of that information we generate data for one year. Then we calculate all waiting times and owner can give his waiting cost and he can see how much money approximately he is losing. Also, we recommend a little bit different additional service system which we called it 'Special Board System'. We think that with the help of this system we can solve queuing problem of cafeteria. Our target is the DaamDan cafeteria, which is fast food-cooks. This cafeteria is being very crowd during the lunch times. There is located some governmental organizations and universities. Costumers of this cafeteria are students of AUCA and AUPKR, governmental workers who are working in ministry and civil workers. The biggest problem is that during the lunch time there is very long lines and even there is no place to sit and have a meal normally. Every customer wants the best service and they don't want to stay in the line. They haven't come to this cafeteria to sit, have a rest or just to talk with somebody. They come here just to have their lunch in the middle of their work hours. For these reason, they have a little time to eat their lunch and go back to their work or lessons. Unfortunately they are spending their time staying in the queue. Because everybody takes their lunch breaks between 11:30 and 13:30 for only one hour. So, in this time so many people come at the same time and of course there will be long line to get the meal. It is good

having more customers who are staying in the line to get your product or service. Worse side is that, some people can't spend half of their lunch time just for waiting in the line. That's why, some of the customers are just leaving or even not coming to the cafeteria because of long line. Losing customers is losing the profit, losing the performance in future. Henceforth, our goal is to cut these line and to success to every customer's satisfaction with the fastest speed and quality of serving. To solve this problem we simulate the process of serving the customers during the lunch to find how much money is losing from waiting time and we analyze how to manage this process effectively in order to don't create the long line in the system.

Daamdan food chain located at intersection of streets of Frunze and Razzakova serves lunches and dinners for the workers at nearest location. They operate as buffet with self-service system starting 09:00 finishing at 21:00 with 5 servers who are standing at storefronts and put dishes a customer chooses and warm them up in microwave oven. Another service is delivery of food. For this option we noted that they dont have separate servers except a delivery guy. A person who operates as a cashier receives orders for the delivery and makes checkout simultaneously. And other workers serving the customers also make orders for delivery. The goal of our team is to find the optimal solution for the occurred bottle neck in Daamdan which occurs at lunch break and to help the owner of it to set the most effective system of mass self-service to gain the maximum available profit. As for the invisible outcome we wanted to reach skills and experience that is not taught in the classes.

GENERAL We have observed the current system in a rush hour and collected the range of data for analysis. They are; 1) 2) 3) 4) arrival time inter-arrival time service time waiting time.

Additional aim for our work team was to learn Cafs customers opinion about the food and service as a whole. For this attempt we made questionnaires, and asked them to respond for given questions. The number of respondents was forty and all of them were permanent customers of the buffet. For the precise verification we should note that we were observing only during the period between 11:30 and 14.00. And another note that the majority of customers come exactly only during the daytime at lunch break, and of course, the purpose why this buffet was open in that location is presence of plenty organizations and absence of dinning places for the employees of these organizations. After the break we see empty premises of the caf and

empty storefronts. It means even if an accidental customer walking down the street wants to visit this caf it could not serve him/her because of the ran out food in there. So the question arises why they work till 21:00 if they dont have food left to serve customers? One of our group mates once visited that Daamdan at 18:00 oclock to have a dinner, but he was refused due to the absence of any food there. We propose them to draw the owners attention to this problem. Because he still has to pay salary for those servers who works afternoon there and make other payments like rent and so on. It is an omission which costs money. For these problems we have decisions which will be presented below. Coming back to our primary responsibilities, we had collected the data and we started analyzing them in order to find the derivation of the giving data. The next step was the process of finding the probability distribution. Steps of finding the probability distribution: 1. Selection of random numbers and entering them into SPSS program 2. In the part of analyze select the descriptive statistics 3. Enter to p-p plot and find the scale, shape or location in dependence of the type of distribution and find the distributions 4. In the section of transform find the option compute variable and enter needed information 5. In Analyze mode select the option correlate and r12 bivariate sub option 6. See the result, if the significance level is more than 0.05 it means that there is a correlation between random dates and the distribution. 7. We found the type of the distribution.

To solve this problem we simulate the process of serving the customers during the lunch to find how much money is losing from waiting time and we analyze how to manage this process effectively in order to don't create the long line in the system. Our application of MMS queuing model gives us in each four minute how many people are coming, how many customers are getting service and how many minutes are waiting in the queue line and we can examine where going the process of serving for customers. To simulate the process we took data from two work days and with the help of that information we generate data for one year. Firstly for this transformation of data we look for more similar probability distribution for arrival and service of customers. With the help of SPSS software we have found logistic distribution for arrival and Laplace distribution for service rate of customers. With the help of these data we calculate all waiting times and average server utilization owner can give his waiting cost and chief can see how much money approximately DaamDan is losing.

APPLICATION

Table: One year simulation of cafeteria Observ.cust 9 0,911152696 3,999996008 9 Observ.serv.rate 0,316096935 4,354265552 1,092158076 0,90716108 Lq Wq Waiting cost

5,694455726 6,798734721 2,149059205 475,9114304 0,041851039 0 0 0

0,732493967 0,785028102 0,857374782 54,95196713 1,984212109 5,943866722 5,392044555 416,0706705

. . . 13,29643015 11,56336728 3,51217872 3,029400287 0,726542195 1,8035 1,47285 0,42967 3,15499 1,30576 1,47451 1,5702 1,63483 0,19204 0,11128 9,64186 8,08802 1,07124 0 0 17,3891 11,9125 0,46028 0 0 674,93 566,161 74,9869 0 0

9,134340239

2,29707

1,75845

11,0853

405,875

The numbers in bold fonts show us the average values of arrival rate, service rate, system utilization, length of queue, waiting time, and waiting cost, respectively.

During the process of the observation as we have already mentioned we made a monitoring among the customers. We asked three questions which are; 1) Are you satisfied with the food served (quality of food, taste), assortment, price and service (the level of politeness, speed rate)? 2) How often do you visit our buffet? 3) Where do you work? And the final part of our questioner was the suggestions of the customers and their ideas how to help to improve the service in the buffet. Also we were concerned about the level of satisfaction of the servers working there.

DECISIONS AND SUGGESTIONS In order to reach every customer, their satisfaction and not loose but add it to profit, we will recommend to DaamDan implement the "Special Menu Board" system. This system will cut the queue in process during the lunch time, when it is very crowd and long line in the system. Because the reasons of the queue may be from the bad service, inefficient organization of service or it may depend on customers actions. Mostly customer don't know what to have in their lunch. When all the foods are in customers' eyes it is very hard to make one choice. Especially Kyrgyz nation's mind is not very constant. So this will effect to the queue. Because customer enter to the process and they don't know what to have and they spend more time to select their food. For these reason we recommend the ready food combinations which are selected mostly by customers. Because there is only few food combination which customers order every day and every lunch. In this system we will choose the most preferable food combination (after making survey or with the data from the previous purchases) like: 1. Tea, 4 pieces of bread, 4 Manti 2. Coffee, Piece of cake, 2 Pirojki 3. Tea, 4 pieces of bread, Lagman 4. Etc. After we will make beautiful picture of this food combination every food combination will be placed to Board. There will be shown the price and number by orders like: 1;2;3;10etc. Very important thing is that the photo must be very attractive and colorful.

So, the customers will come and they can see the pictures of the combination and immediately select their food. Every combination has their number by order. The price is also set to every of them. So customer will just say what number they want to have and the price is also known and it is easy for cashier to enter it to account. What is best, there will not be any challenge or mistake with the prices when cashier is entering it. Then there will one check note will be given to customer. So the customer will go out from the queue and just wait till his order be ready. There will be also one display installed near the board in order to inform the ordered and ready foods. The ordered but not prepared foods will be shown with red color, prepared and ready foods will be shown with green color on the display. When cashier get order and enter to the account the number of order will automatically come to the display with red color. From there server will see the order and prepare it. When order prepared, server will enter the number of order to inform about it to customer. So the customers can easily get information about their orders and when appears green colored number they will just come to server and show their checks and get their food. There will be two systems Special Menu Board System' and traditional serving system. If customer want choose his own food by his own he will just pass through the line and select his foods. But we believe that mostly people will chose the new system because they know exact price and what to have and choose. Half of the customers are students and mostly they want to economize their money. So if they will chose their meal with basic system there is no any price signs and they don't know how much their meal will cost. If they want to ask every price information it takes a lot of time. So, to know your meal price in advance is very important. For these reason we believe that our system will work perfectly and will help to cut the line. If mostly customers will choose the 'Special Menu Board System' you can wholly change system to it. It will work more effectively than previous system. Because in basic systems all foods are prepared but not all of they are sold by the evening and there will be excess row materials or prepared foods that will be loss to DaamDan. You can't sell foods which are from yesterday. So, in new system there will be not all we will concentrate to our 20% of foods that are bringing to DaamDan 80% of profit. With the help of the Special Menu Board System we will work efficiently and we will reach 100% of customer satisfaction with great tastes and with reactive speed.

CONCLUSION Having analyzed the data we brainstormed and took into our consideration opinions of respondents we provide ways how to improve the temporary conditions in the buffet. They are: Change the location of the food holders in ascending order of ingestion (1-main courses, 2-appetizers, 3-salads, 4-dessert, 5-hot and soft drinks) Set and put the fixed prices over the food to clarify. Purchase the new equipment which will keep the hot food in appropriate temperature and decrease the time of warming up. Add additional servers in the rush hour to avoid the long lines. Add additional servers who will receive orders and make them as well. Add a new range of food in the menu and check the quality and taste of it. Add a packed ready food at storefronts to reduce time of putting food on platters. Open a new part: full service system after 16:00 with waiters to maximize the productivity of space being empty. Set the heating system because now it absences and it is too cold for customers to be there (another reason the caf can lose customers)

Hang banners with menu and prices up at the front of entrance to make people easy choose a dish and reduce time on the line.

Also we recommend to DaamDan to work in the evenings. Because it is very good way to use all the excess foods and become like other cafes with working in the evening with serving by the servers (Not self service). As we mentioned above in that way we can improve the using of optimal products. One more thing anyway the building is staying and we should use it optimally. Anyway, DaamDan is paying taxes to government. In order to implement or become transformable and call customers, inform about the being of DaamDan. Because most people in our city don't know about it and its services. For these reason DaamDan should hang its advertisement banner in front of the cafe and put direction signs. Because of the trees covering the building and nobody can see while passing through Frunze street. For that we recommend DaamDan to make new strategy and good marketing with making advertisements and attract customers to work all day not just at lunch time. By the implementing these ways we believe that DaamDan will double its income and become more popular to its customers and to al Bishkek city.