Question

Assignment 5: Process Control In the following service industries, use Y-F(X) approach to set an improvement plan for these industries. Determine for every X whether it is a controllable variable (C) or non- controllable variable (NC) Fast-Food Restaurants Insurance Companie:s

Answer 1

For an improvement plan, the end result can be kept as Profitability. Thus, Y = Profitability, which is dependent on a certain other variables either directly or indirectly. Further these variables can be controlled by the management or not be controlled. We shall now answer the list for Fast Food Restaurants

The first set of process control is competitive edge

Controlled Variables are:

1) Unique Selling Point - What do we serve that competition doe snot

2) Location - Where are we located in respect to the competition

Uncontrolled Variables are:

1) Competition Entry - How many other competing restaurants are there

The second set of process control is Product & Pricing

Control Variables are:

1) Menu Width - Is the product offering attractive enough to a large audience

2) Pricing - Is the product offering priced to offer a high value to the customer

Uncontrolled Variables are:

1) Macro Economic Factors - Pricing of raw materials and labour can cause an impact on profitability