Question

Katanya Lyon operates the “Lyon King” hamburger stand at her local weekend market. She sells only two types of burgers: the MegaMeat burger with the works, and the PowerVeg burgers. Katanya employs the following family members:

• Sister Tankaya prepares bread rolls (including toasting and buttering). She gets cranky a lot because the toaster often overheats and the rolls get burnt and have to be thrown away;

• Brother Donnie, who is in charge of grilling (either meat patties or veggie patties; as well as grilling onion and frying eggs). Donnie only grills meat patties and veggie patties in different batches; he will never allow both meat patties and veggie patties to sit on the grill at the same time. Donnie believes that “mixed-grilling” is disrespectful to all the vegetarians out there. In contrast with Tankaya, Donnie is very relaxed, even when the grill breaks down (which happens twice a month on average).

• Mother Bonnie, who performs cutting and assembling activities (cutting lettuce and tomatoes, putting together the patties, eggs and the salad ingredients);

• Katanya looks after cash receipts herself.

  Katanya has a simple operation with only three major pieces of equipment: two toasters and one (very expensive) BeefEater Barbeque SL4000 Unit. Three suppliers provide all the main ingredients: the local butcher “Butch-a-Way” provides the meat patties and eggs, a vegetable supplier “All-Vegged-Out” supplies the salad ingredients; and “We-Bake” bakery supplies the bread rolls.

  Further, Katanya believes in specialisation; each employee focuses only on his/her own process. In particular, Katanya does not trust Donnie with the money, and she would never contemplate getting involved in the grilling process herself. In addition to cutting and assembling, Bonnie (who is good at haggling) is also in charge of negotiating deals with the suppliers. By purchasing in bulk she often manages to get large discounts.

  Required: **Make sure that your answers are specific to the case!**

  (a) Identify examples of the following potential constraints in Katanya’s operation:

  • Demand/market constraint

  • Supply constraint

  • Material constraint

  • Capacity constraint

  • Logistical constraint

  • Managerial constraint

  • Behavioural constraint

    (b) Briefly explain how the concepts behind TOC can help Katanya to better manage time, cost and quality in her hamburger business.

Answer 1

Katanya Lyon operates the “Lyon King” hamburger stand at her local weekend market. She sells only

“Lyon King” sells two types of burgers in weekend market: the MegaMeat burger with the works, and the PowerVeg burgers. Katanya employs the following family members:

• Sister Tankaya prepares bread rolls (including toasting and buttering). She gets cranky a lot because the toaster often overheats and the rolls get burnt and have to be thrown away;

• Brother Donnie, who is in charge of grilling (either meat patties or veggie patties; as well as grilling onion and frying eggs). Donnie only grills meat patties and veggie patties in different batches; he will never allow both meat patties and veggie patties to sit on the grill at the same time. Donnie believes that “mixed-grilling” is disrespectful to all the vegetarians out there. In contrast with Tankaya, Donnie is very relaxed, even when the grill breaks down (which happens twice a month on average).

• Mother Bonnie, who performs cutting and assembling activities (cutting lettuce and tomatoes, putting together the patties, eggs and the salad ingredients);

• Katanya looks after cash receipts herself.

  Katanya has a simple operation with only three major pieces of equipment: two toasters and one (very expensive) BeefEater Barbeque SL4000 Unit. Three suppliers provide all the main ingredients: the local butcher “Butch-a-Way” provides the meat patties and eggs, a vegetable supplier “All-Vegged-Out” supplies the salad ingredients; and “We-Bake” bakery supplies the bread rolls.

  Further, Katanya believes in specialisation; each employee focuses only on his/her own process. In particular, Katanya does not trust Donnie with the money, and she would never contemplate getting involved in the grilling process herself. In addition to cutting and assembling, Bonnie (who is good at haggling) is also in charge of negotiating deals with the suppliers. By purchasing in bulk she often manages to get large discounts.

  Required: **Make sure that your answers are specific to the case!**

  Ans (a). Identify examples of the following potential constraints in Katanya’s operation:

  • Demand/market constraint - Why only over weekend. It could operate all the week through maximisng the profit.

  • Supply constraint - Dependency on only one set of supplier for raw-materials.

  • Material constraint - Meat patties and Veggie patties can be grilled in same batches this will reduce cost in long run.

  • Capacity constraint - People should be cross trained with one specialisation. Every one should be aware of all processes. The operation should process cnetric not people centric/dependent.

  • Logistical constraint - Organisation should plan to have a digitl cash register. Creating and environment of distrust affects personnel performance.

  • Managerial constraint - Katanya does not trust Donnie with the money. It is imperative to create an environment of trust through influencing and motivation.

  • Behavioural constraint - (i) Sister Tankaya gets cranky a lot because the toaster often overheats and the rolls get burnt and have to be thrown away. (ii) Donnie will never allow both meat patties and veggie patties to sit on the grill at the same time.

• And.(b) Katanya can implement 'Theory Of Constraint (TOC)'. It involves 5 steps process identfying the constraints, Optimizing the constraint, subordinate the Non-constraints, Eleveate the constraint (adding capacity) & lastly Returning to Step 1.