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Case Study Page 4

Food & Beverages

Redefining the F&B Industry Through Innovation and Exceptional Standards.

Background

This company is a prominent player in the food and beverage industry, specializing in offering a diverse range of dining experiences. With a focus on quality and innovation, it operates several restaurants and catering services, providing exceptional culinary offerings to meet various customer preferences. The company’s portfolio includes a range of dining concepts, from casual eateries to more upscale restaurants, each offering carefully crafted menus that emphasize fresh ingredients and a high standard of food preparation.

Business Challanges

We conducted a 5 weeks analysis to gained a good understanding of the company business challenges. Several key issues identified were:

Passive Management across all departments and sectors
Little to no actions managed on achieving KPIs and KRAs
Low productivity
High operating cost
Weak communication amongst department
Little to no daily and weekly planning to execute tasks that are linked to strategy
No sales team in F&B Operation

Project Approach

The project approach focused on understanding the operations of the client’s headquarters functional departments and two primary sectors: Food & Beverage (F&B) and Tourism. The consultants conducted hands-on studies across multiple sites to identify improvement opportunities in sales, productivity, and cost control. For the F&B sector, the team worked directly at two catering locations to assess operations, identify inefficiencies, and propose strategies to improve performance. In the Tourism sector, the team visited an aquarium facility to examine operations and identify potential cost control measures during the Movement Control Order restrictions. The approach included in-depth interviews with staff and managers from various departments, including Finance and Human Resources, to gather reports, work-in-progress (WIP) data, KPIs, and other relevant documents. These materials were used to map out the existing Operating Model (OM) for each department. The consultants also conducted a "Day In Life Of" (DILO) study, observing selected employees and attending meetings to assess work effectiveness and management styles. The team further analyzed productivity by characterizing individual tasks, assessing due dates, and reviewing progress toward achieving departmental KPIs and strategies. At the aquarium facility, a Maintenance Effectiveness Benchmark was conducted, focusing on criteria such as Reliability-Centered Maintenance (RCM), planning, and productivity. The curatorial and purchasing departments were also involved in analyzing feed inventory to identify opportunities for cost control. This comprehensive, hands-on approach allowed the consultants to gather critical insights, engage stakeholders, and drive actionable improvements across the organization.

Business Case to improve on

12%
Improvement opportunities for productivity.
5%
Opportunity to increase sales.
23%
Reduction opportunities for overtime/extra wages.
4%
Opportunity to improve tourism sector
6%
Opportunity to increase sales in one location

Background

This company, established in 1996, specializes in providing high-quality cooked chilled meals, catering services, and hospitality solutions tailored for the airline industry, as well as corporate, industrial, and institutional clients. With a commitment to excellence, the company has achieved certifications in Halal standards, HACCP, and health and safety protocols, ensuring the delivery of consistently superior and affordable services across its extensive network.

Business Review Objectives

The objective of this 5-week Business Diagnostic and Review project is to identify key business opportunities through operational, productivity, and process improvements. The focus will be on simplifying and streamlining processes to increase productivity, reduce costs, and foster a culture of continuous improvement. Additionally, the project aims to drive fact-based decision-making to ensure sustainable growth and enhanced operational efficiency.

Project Approach

We utilized three primary methods of study—Management Operating Blueprint (MOB) & Process Studies, Field Studies, and Data Studies—to obtain the most accurate results. Based on these methods, preliminary findings identified potential cost-saving opportunities of up to RM 5.4 million across several key areas:

Enhancement of operational control across business units, leading to a 20% improvement in productivity.
Streamlining end-to-end planning, scheduling, and execution processes.
Achieving a reduction of at least 5% in procurement spending.
Increasing sales by generating an additional 15% in new business revenue.
Improving communication and collaboration across interfaces.
Creating a framework for a new way of working to clarify responsibilities and accountability.
Optimizing capacity utilization and minimizing assumptions and misinterpretations in daily operations.
Promoting data-driven decision-making based on facts and analysis.
Increasing awareness of production capacity, including stocks of finished goods, semi-finished goods, and raw materials.
Enhancing supervisory skills and work methods.
Implementing effective control over transportation and freight charges, as well as contractor management.
Embedding a culture of continuous improvement into daily operations, ensuring consistency and a heightened sense of urgency across teams.

Business Review potential improvement

Potential improvement in Operational Control across a business unit. Improve productivity by 20% (RM726k - 1 mil)
5% reduction in procurement spend ($ 543k-869k).
Improve sales by 15 % against baseline through new business revenue. (RM 2.6 mil - 3.5 mil).
Improve awareness on production capacity and stocks.
Improve capacity utilisation.
Improve supervisory skills and work methods. More factual decision making
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