100 Yen Sushi House
Human Resource Q. 3 How has the 100 Yen Sushi House incorporated the just-in-time system into its operations? 1. Receives fish only when it is needed 2. Making quality the responsibility 3. 100 Yen also uses a kanban system Q. 4 Suggest other services that could adopt the 100 Yen Sushi House service delivery concept. 1.
Baking cookies for shopping mall customers, 2. Delicatessen restaurants, 3. Specialty cafes and bars that are located close to their suppliers, 4. Refreshment concessions in amusement parks Ace Institute of Management eMBA-Fall 2010, 2 nd SemesterSubject: Operations Management Group Case Study #2:100 YEN SUSHI HOUSE Submitted to: Mr. Bishal Shrestha Submitted By: Ananta Mallik Nirmal Bahadur Raut Rina MaharjanBiraj PradhanDate: September 16, 2010 Page 2 of 4 Q. 2 What features differentiate 100 Yen Sushi House and how do they create a competitive advantage? Answer:
Though there are many fast food restaurants in Japan, but due to some remarkable product and service differentiation, 100 Yen Sushi House has created its unique brand name of most productive operation in Japan?. Here are some major differentiating features: 1. Production-Line Approach: In 100 Yen Sushi House the customers are always included in the production line. Customer can enjoy observing the cooks preparing Sushi, can make their soya sauce as per their own choice and enjoy watching train of food revolving on the conveyer belt (without need of waiter).
This creates a good competitive advantage for them. 2. Pull approach Pull system applied by the company instead of Push system also giving competitive advantage to them. The rate at which customers enter the restaurant, remove dishes from the food train, and leave the restaurant determines the flow of the delivery process. This allows them to match the preparation of particular foods to the demand for them, thereby eliminating waste. 3. Cozy Environment: The very cordial environment with greetings by every employee of the restaurant while entering and going out gives a different filling to customer.
Active participation of all the employees, including the owner makes the environment free cozy and giving competitive advantage. 4. Price The flat 100 Yen cost for every item (even for costly item like salmon) is also giving them competitive advantage. There idea to vary the quantity not the price is the major differentiation. Similarly their simple process of customer billing by just counting the used plates and multiply by 100 is also a very unique and competitive approach. 5. JIT and Quality control system
The company is Just-in-Time (JIT) approach to buy fresh fish several times a day without any inventory and removal of the unsold sushi plates longer than 30 minutes and careful watch by every staff for quality is also a major differentiating factor for competitive advantage. 6. Human Resource The labor-intensive operation, involvement of both worker and owner in the total operation from greeting the customer to serving what is ordered and jointly working as a family member can also be considered as differentiating factor for competitive advantage. Q. How has the 100 Yen Sushi House incorporated the just-in-time system into its operations?
The 100 Yen Sushi house has incorporated the Just-in-Time (JIT)system through out its day to day work process. For example, it has adopted ? just-in-time inventory control system. The company has an agreement with the fish vendor to deliver fresh fish several times in a day so that materials arrive just in time. This helps in cost reduction in purchasing the refrigerators for storing the inventory as well as cost decline in inventory. Also, it provides more space available for customers by cutting down of refrigerators space.
As Sushi is not made to order, due to variation in taste of customers there is always so me waste. But the trade-off between the time that is saved and the waste can be turned to the management’s advantage by giving careful attention to customer demand. This also implied that management is aware of quality product and responsible for hygienic food. For example, all the employees are charged with the task of monitoring the prepared sushi and removing the old sushi dishes from the serving train after 30 minutes so that sushi quality will maintained and always fresh.
Moreover, they use to put right number of Sushis plate at right time (based on continuous observation) on the conveyor belt. This is also an example of application of JIT principle known as Kanban. They have tradition of chorus of the iratsai (welcome) and Arigato Gosaim as (thank you). It also signals about the time of customers coming and leaving. So, they know when they need to speed up or down their through put in making Sushi, another example of JIT. In summary, the 100 Yen Sushi house has very well maintained the Just-in-time (JIT) System into its operation.
It is their simplicity& common sense, well planned service process, consciousness& effort of all employees for quality service and managements pro-activeness to meet customers demand are the major factors which are proving their successes fullness of JIT implementation. Q. 4 Suggest other services that could adopt the 100 Yen Sushi House service deliveryconcept. Answer: The 100 Yen Sushi house service deliveries can be adopted in other services area which focuses repetitive type of processes. For example, it can be applied in auto- manufacturing, fast-food, householdappliance etc.
The concept is low-volume and high varieties which gives both economic and custom advantages of continuous production. This concept is used by Harley-Davidson where relatively few different engines, chassis, gastanks and suspension system are mixed to produce a huge variety of motorcycle. Likewise the same concept is also used by fast-food restaurants as McDonalds and Burger King where relatively few modules like cheese, lettuce, buns, sauces, pickles, meatpatties, French fries make a variety of meals.