Lean Systems

Lean systems are a crucial aspect for a business to remain successful. Enforcing a lean systems model maximize the value added by the activities within the company while also removing unnecessary wastes and delays. Lean systems integrate a multitude of aspects including the operations strategy, quality design, supply chain design, technology and inventory management. Two vital components that relate to creating and managing flows are close supplier ties and small lot sizes.

CLOSE SUPPLIER TIES

Close supplier ties occur when a company maintains a good relationship with their supplier and has frequent, on-time, and high quality deliveries. This method allows companies to hold much less inventory and ensure that their consumers will receive fast shipments. Piero’s operates primarily using this method. There are deliveries six out of the seven days of the week between 12:00 p.m and 3:00 p.m, excluding Monday. Because the restaurant is a private, smaller company, there is not much need to order items in bulk frequently or have a set weekly schedule of deliveries. Instead, after each shift, Cacciuttolo analyzes the par levels for each food item and makes a note in regards to what is running below the par levels. This system is completed the old fashion way using a paper checklist. Since the items are placed systematically, it allows for a smooth and efficient checklist. 

Piero's uses two large distributors, Sisco Foods and U.S. Foods. Additionally, Cacciuttolo emphasizes the use of locally grown dairy and produce. Majority of items are purchased from local farmer’s markets. Also, seafood and meat is typically purchased from two distinct local shops, The Lusty Lobster and J. Verola, respectively. In addition to the kitchen inventory, there are two other inventories that are taken. Since Piero’s has two separate bars, they require two different inventory tolls. Unlike the food items, the alcohol beverages are examined every other day. Piero’s does not use one distinct distributor; instead, there are five different companies. The liquor and wine is selected from R&R Marketing, Fedway Associates, and Allied Beverage Group while the beer is purchased from Shore Point Distributing Company and Ritchie & Page Distributing Company. It is extremely challenging to simply order from only a few distributors because each company only sells certain types of liquor, wine, and beer. The inventory is so precise that companies are even split amongst brands. For example, R&R marketing has Jack Daniels Old No. 7 version but not Jack Daniel’s Single Barrel. Therefore, Cacciuttolo must place an order for Jack Daniel’s Single Barrel through Allied Beverage Group. Similar to the kitchen deliveries, the beverage distributors make deliveries to Piero’s on a daily basis, excluding Mondays.

SMALL LOT SIZES

Small lot sizes occur when a small amount of items are processed together which allows the organization to reduce the inventory and also pass through the system more quickly than a larger lot. Piero's is small and has frequent deliveries, so large lot sizes is unnecessary. Cacciuttolo places an order as needed in order to eliminate any chance of waste. A negative aspect of small lot sizes is the increased setup time it typically entails. Piero's does not run into this issue. When a delivery arrives, it is rolled off the truck and the boxes are placed directly in the kitchen. Then the last step is having the invoice signed. Since the kitchen has a strategic layout, the entire setup process is completed in less than ten minutes, thus achieving a single-digit setup. 

METHOD OF WORKFLOW

The method of workflow is derived from a combination of the pull and push methods. While the dishes are made to order, the chefs do prepare a number of items before service including mashed potatoes, assorted sauces, and cutting mixed vegetables/garnishes. The upside of incorporating the push method into Piero's structure is that unlike most establishments that end up wasting items when the forecasts are not exactly on point, not much is actually considered to be overproduction. Unused ingredients are stored properly in the walk-in for the following day (i.e. already sliced vegetables or house-made pasta). The only item that is precooked in the beginning of service is the gorgonzola mashed potatoes.

UNIFORM WORKSTATION LOADS

Uniform workstation loads is an approach that encourages daily load on individual workstations to be relatively uniform. Piero’s uses this approach by encouraging reservations. Reservations are easily made over the phone or through an online system called Open Table. Reservation systems allow Cacciuttolo to have the proper amount of staff members scheduled and also the appropriate quantity of food inventory. This is especially needed for larger parties and weekend evening groups.

FLEXIBLE WORKFORCE

Flexible workforce is the ability for staff members to be capable of multitasking and performing other tasks outside their job requirements. Employees at Piero’s must be flexible because it is a high volume restaurant and each person is capable of helping out wherever they see fit at all times. Servers must be knowledgeable in alleviating issues with customers, answering the phones, taking reservations, using the computer systems, informative about alcoholic beverages, and regular administrative work. While automation is usually present in larger companies, Piero’s primarily integrates it by using the POS system called Positouch. Positouch is one of the most sophisticated items in the restaurant and is extremely beneficial for time efficiencies. Having computer systems to enter orders into and finalize payments, is also extremely cost effective. Tickets are sent directly to the intended kitchen segments and checks are balanced within seconds. If Piero’s did not have Positouch, there would be a significant amount errors and time wasted handwriting orders and adding up totals on a calculator.