Production scheduling and control systems

¶ … Benihana scenario without batching, the restaurant lost money all day. With the use of batching, the restaurant made money almost every hour. With the batching approach, customers were not seated until a group of eight was present. Each table held eight people, so the tables were completely full most of the night. This resulted in a shorter wait time in the bar area as well as an increase in sales due to more people placing orders at a time. Very few customers walked out in this scenario. During the peak hours, the restaurant was at or near capacity. As a table became available, the next group was seated. A nice turnover was established, and customers flowed in and out with ease. During a peak dinner hour, the restaurant made $787.

During the non-peak hours, some losses did occur, but they were not as significant as the losses that were incurred without the use of batches. During the non-batching scenario, many more customers walked out of the bar and never made it into the dining room. As few as two customers were seated at a table. This was not efficient and resulted in a large number of people waiting in the bar. The restaurant was never filled to capacity during the entire scenario. Many potential customers did not want to wait for a table to become available. This resulted, literally, in sales walking right out the door. During a peak dinner hour, the bottom line was a loss of $80.

The batching technique used by Benihana could be beneficial to many other businesses. Assembly lines use multiple parts and many laborers. This sort of simulation could help determine the order of production as well as assist in scheduling. This could also be helpful to hotels who offer a limited number of rooms. They could use this type of simulation to determine the optimum pricing during peak and non-peak seasons. Airlines, as well, could benefit from a similar simulation program. The simulation could help determine the number of flights that should be offered each day. This would help eliminate aircraft taking off with barely any passengers and optimize profits by cutting costs. Whenever there are multiple variables to juggle and no easy way to accurately predict outcomes, the computer simulation could be useful.

Operations Management entails managing inputs and outputs. Activities included in operations management include: managing purchases, scheduling, inventory control, quality control, storage, logistics and evaluations of processes. (McNamara C., n.d.) to succeed, Operations Managers need to be strong leaders. They need to have problem-solving skills and be good communicators. (Operations Manager, 2010) in the Benihana simulation, it was easy to see the impact of the batching technique on the profits for the night. If the Operations Manager had not used the simulator, the customers would have been allowed to essentially seat themselves, and the restaurant would not be in business long. Having a strong Operations Manager means the difference between a successful business and one that loses money. it's important to be aware of how something as simple as the flow of customers impacts operations.

The simulation was interesting because the difference in revenue generated for the night was substantial. At first, it did not seem like the batching technique would be useful or necessary. Many restaurants operate without such a simulation and manage just fine. To see the model in action was impressive. It highlighted the difference between doing just fine and working to one's full potential. An Operations Manager needs to make sure that business operations are efficient. (McNamara C., n.d.) in this case, the simulation showed that taking the customers to the tables in batches was the most efficient choice. Operations Managers also need to evaluate processes. The simulation made it obvious that the process of allowing customers to be seated in groups smaller than eight resulted in a significant loss of revenue.