Analysis of Operations Management at Chilliney Kopitiam: Location and Layout Recommendations for Cen

Background on Chilliney Kopitiam

Chilliney Kopitiam is a chain of coffee and toast outlets founded by Mr William Woon in 2000. William had bought over an old traditional coffee shop that used to serve kampong-roasted coffee beans and crispy kaya charcoal-toasted bread. The Ah Pek who ran the coffee shop previously had no descendants and wanted to retire. With modern day management, William breathed fresh life into Ah Pek’s legacy.

William was enterprising and passionate about coffee and toast. Five years later in 2005, he re-invented and expanded the original coffee shop concept by opening additional outlets. These new outlets would have modern day decor with distinctive old-world charms serving traditional coffee, tea and classical “Milo”. William decided to keep to traditions by strategically restricting the menu to just hot and cold beverages with traditional cakes, pastries and butter-kaya toast.

By 2015, Chilliney Kopitiam had grown to be an established chain of some nine (9) outlets across the island. As at 2017, the outlets and their monthly sales are as follows (Table 1):

Table 1. Outlet and Monthly Sales

Each Chilliney outlet is run by an outlet manager who manages 3 kitchen hands, 2 cleaners, 1 cashier and 3 waiters. The whole team works on a single 12-hour shift over 30 days a month. To provide off-days for the staff, Chilliney hires part-time helpers to make up for any shortfall for each shift. The outlet managers are responsible for ordering supplies needed by their respective outlets. These orders are sent to the Procurement and Kitchen director in the headquarter office for processing.

Assume that you are the Kitchen and Procurement Director tasked to set up the new centralised kitchen-cum-procurement office. Analyse and determine the location and layout decisions in the case scenario.

Write a memo to the CEO to recommend a suitable location and suggest an optimal layout arrangement at the new site. Your layout must show how best to place the Beverage and Bakery Stores and the Procurement Office. You are required to justify your location and layout recommendations by applying appropriate OM methods and using the data in the case scenario. For the new location, you will also need to advise the CEO on at least three (3) other factors that must be taken into account for a sound decision to be made.

Note: A memo to the CEO is a formal document. It should include information, such as who it is addressed to, dates, writer’s and submitter’s name(s), subject matter along with proper paragraphing and headings. No executive summary nor table of contents is required.