Faculty of Business and Law
Operations Management- PGBM03
“Operations Management & strategies at Dominos
Pizza”
Intake: October, 2013.
Module Leader: Dr. Tie Xu
Submitted by: Adnan ul Haque. (139071579)
January 21, 2014
WORD COUNT: 3296
Table of contents
INTRODUCTION………..………………………………………………………………………………..………………. 04
OPERATIONS MANAGEMENT & OPERATION STRATEGY…………………………………………………. 04
CORPORATE VISION AND MISSION………………………………………………………………………………. 05
GLOBAL STRATEGIC OBJECTIVES……………………………………………………………………………… 06
ORDER QUALIFIERS & ORDER WINNERS………..…………………………………………………………..…. 06
THE CORE COMPETENCIES OF DOMINOS………………………………………………………………………. 07
THE VALUE CHAIN……………..……………………………………………………………………..………………… 09
PRODUCT VALUE CHAIN……………………………………………………………………………………………… 09
STORE LEVEL– OPERATIONS STRATEGY IMPLICATIONS……………..……………………………………. 11
PRODUCT & SERVICE DESIGN……………..…………………………..…………………………………………… 12
PRODUCT LIFE CYCLE………………………………………………………………………………………………….. 13
RE-DESIGNING PRODUCT………..………………………………………………………………………………….. 14
PRODUCT/ SERVICE MIX OPERATIONS CHALLENGE……………..………………………………………… 15
PROCESS DESIGN………….……………………………………………………………………………………………. 15
THE CONVERSION/ TRANSFORMATION PROCESS……………..………………..…………………………. 15
TRANSFORMATION & CONVERSION PROCESS IN TERMS OF 4Vs………….…………………………. 16
THE PRODUCTION PROCESS……………..…………………………………………………………………………. 17
DEMAND FORCASTING……………………………………………………………………………………………….. 18
SUPPLY CHAIN MANAGEMENT……………………………………………..…………………………………….. 19
QUALITY MANAGEMENT…………………………………………………………………………………………….. 20
QUALITY ASSURANCE & QUALITY CONTROL………..……………………………………………………….. 20
INNOVATION AND IMPROVEMENTS………..…………………………………………………………………… 21
CONCLUSION & RECOMMENDATIONS……………….………………………………………………………… 22
REFERENCES……………………………………………………………………………………………………………... 23
List of Tables
Table # 1 Through customer feedback “Product Re-designed” 14
List of Figures
Figure # 01 Dominos franchise model structure in UK 04
Figure # 02 Domino’s Values 05
Figure # 03 Order Winner & Order Quali/ers 06
Figure # 04 Core Competencies 07
Figure # 05 Customer Value Chain: Dominos 08
Figure # 06 Product Value Chain 09
Figure # 07 Performance Priori3zing Curve 10
Figure # 08 Dominos Polar diagram of Performance indicators 11
Figure # 09 Dominos Evolu3on PLC model 12
Figure # 10 New Product Development (NPD) 13
Figure # 11 Product Service range 15
Figure # 12 The Conversion Process 16
Figure # 13 Assembly line: Volume Variety Mix 17
Figure # 14 Dominos production process 18
Figure # 15 Dominos Chase demand strategy 19
Figure # 16 Supply Chain Model 20
Figure # 17 Innova3on 21
INTRODUCTION:
Dominos is a business regarded as leading Pizza Delivery company (Dominos, 2008). The
Company has an opera3on model and inimitable business that enable it to be a leader in fast
food industry. Dominos Pizza has eCec3vely expanded from three outlets in the US to 9,350
stores in service in seventy countries since its creation in early 1960s (Abilla, 2010). The head
quarter is in Michigan state, USA whereas in UK is opera3on and franchise model all over the
overseas market. The raw material is supplied to master franchise (UK) and quality is enforced
by maintaining overall control on the products and services being delivered (Dominos, 2008).
OPERATIONS MANAGEMENT & OPERATION STRATEGY:
Opera3ons management has been defined by Raturi & Evans (2005) as development, design,
maintenance of system, and process which convert the raw material, labor, and technology, in
to finished goods and services that satisfy the needs of consumers. According to Garvin (1992)
de/ne, “the opera3ons and manufacturing compe33veness are examined through operation
strategy” whereas, Slack and Lewis (2011) elaborates opera3on strategy as the whole method of
choices that forms the long-term competences and abili3es of any type of process, opera3ons
and their input towards overall strategy, by means of resources of opera3ons and requirements
of the market. Opera3ons strategy has been understood by many to be distinct from operation
strategy.
Figure 1: Dominos franchise model structure in UK.
CORPORATE VISION AND MISSION:
According to Lawfer (2004), “well implemented mission enable the company to aFract
employees, investors, and consumers to gain from organisa3onal loyalty” (P. 198). The mission
statement of Domino’s is “Having more fun while selling more Pizza” (Domino’s Corporate,
2012). The Vision is to be “number one in pizza as well people” (Domino’s Corporate, 2012).
Domino Pizza
LLC (Michigan)
Domino Pizza
LLC (Michigan)
Sub Franchises
(Overseas Unit)
Sub Franchises
(Overseas Unit)
Sub Franchises
(Overseas Unit)
Sub Franchises
(Overseas Unit)
Sub Franchises
(Overseas Unit)
Sub Franchises
(Overseas Unit)
Master
Franchise (UK)
Master
Franchise (UK)
GLOBAL STRATEGIC OBJECTIVES:
From the Domino’s Annual report, (2012), it is derived that the vision statement is achieved
through following strategic objective:
I. Compe33ve interna3onal growth as main target.
II. Compe33ve menu expansion through 24 hours deliver model.
III. New innova3ons through company owned stores.
IV. Focusing on knowledge management strategy to penetrate local market through master
franchises.
ORDER QUALIFIERS & ORDER WINNERS:
To meet selling quality standards, the basic standard for products are “order quali/ers” and
when consumers are won by making them purchase the product, than it is “Order winners”. The
criterions of Domino’s order quali/ers and order winning are explained in /gure below.
V
A
L
U
E
S
Figure 2: Domino‘s values
Treat People
as you’d like
to be trated
Treat People
as you’d like
to be trated
Think big and
grow
Set the bar
high, train,
never stop
learning
Set the bar
high, train,
never stop
learning
Measure,
managegee,
and share
what is
important
Figure 3: Order Winner & Order Quali9ers
Dominos becomes order quali/ers to the consumers due to convenience which is durability and
Hexibility in its opera3ons. Its taste, which means the quality and variety it oCers to the targeted
audience. The service delivery is quick and prompt which indicate that opera3ons are speedy.
Moreover in comparison to its compe3tor Pizza hut, it is cheap means low price so the cost is
another performance indicator that dominos mix in its operational strategies to make it order
quali/er. Considering order winners standards of Dominos, it is evident that the quality is a
consistent everywhere which means there is no change in the quality standards. Moreover, the
delivery to clients are in 3me which means that speed is a constant factor that has helped it in
earning orders. Furthermore, the opera3ons are Hexible and highly dependable one. Customers
heavily rely on the services that it will be in 3me and highly standardized. There is a huge variety
of products available which indicate towards Hexibility again in the opera3ons. Based on the
notion of diCerent types of consumers like diCerent taste so stores keep high variety which help
them in winning orders in the market.
Order Quali9ers for a
customer ordering take
away:
Convenient
Tasty
Quick
Cheap
Poten>al Order losers:
Inconsistent taste
Delay in delivery
Poor quality of food
Pricing at a premium
Order Winners for
Dominos:
Core competency on
Delivery Consistent
quality
Delivered with no
delays
Wide variety on menu
Tasty
THE CORE COMPETENCIES OF DOMINOS:
The core competencies of Dominos’ has enable it to be order winners and order quali/ers. It
strengthen its position in pizza food industry in home and take away criteria.
Dominos
Compe33ve
advantage –
Dominos
Compe33ve
advantage –
Unique Supply
chain model :
BeFer quality &
consistency
Unique Supply
chain model :
BeFer quality &
consistency
Leaner
Stores :
Leaner
Stores :
Unique
GLOBAL
model:
Allows
Unique
GLOBAL
model:
Allows