Saturday, April 24, 2010

Project Management


Dunkin Donuts is famous for its coffee and donuts. In recent years however, their menu has become much more diverse, adding items such as flatbreads and sandwiches. Most customers see these new items and think very little about how they got to be there. In reality, the project of developing a new item requires much work. For example, the flatbread items were launched in 2008. Approximately one year prior to the items being placed on the menu, the planning began. First, the executives of the franchise came up with the idea. With the help of Stan Frankenthaler and his culinary team at its headquarters, a recipe was developed. All branches of the company, including the marketing, financial, culinary and operational teams discussed any and all potential or probable issues involved in the execution of the new item rollout. The major objectives of the meeting were to first decide how feasible of an idea selling flatbread sandwiches could be. The team then had to set a budget, finalize a recipe that would keep food costs low, develop a marketing campaign, assign a project team and manager, and brainstorm any other aspects of the planning of the project.

The second step was to develop a schedule. The rollout date was set based on the projected time needed to do all tasks involved. Some questions asked by the project manager were..…How long will it take us to find inexpensive food suppliers who will provide us with the necessary ingredients? How long will it take to train the workers in the factories to correctly and efficiently make the new flatbreads? When should we send communication to each franchise and start training them on proper prepping and preparing procedures? When should we launch our advertising campaign? These and many other questions had to be answered before a rollout date could be set.

Prioritizing each task was just as important as deciding on the start and stop time of each task. This is when Gantt charts came into play. Without the use of this chart, staying on schedule would be quite difficult. To supplement this chart, a network method was utilized. Identifying slack was vital to the project manager in the event the team became behind schedule and needed it to be tweaked. Control is another vital aspect of the activities and decisions. The project manager is responsible for monitoring the actual time, cost and performance of each task. Comparing the planned to actual figures not only aids in recognizing and fixing mistakes, but it provides necessary information in designing more effective projects in the future. For example, after the initial flatbreads were introduced, the franchise realized that using egg whites instead of regular eggs would be a more profitable recipe. Doing so would segment not only to the traditional purchaser, but also to the more health conscious consumer. Transitioning to this new sandwich required the installation of a new, but less complex project.

Below is an article describing the introduction of one of its flatbreads.

Dunkin' Donuts Flatbread Sandwiches

Due to its complexity, the use of software to facilitate project planning and scheduling is utilized by Dunkin Donuts. Hyperion planning, an Oracle software system, is one of the tools used by the franchise to plan and budget its activities. Microsoft Project is also utilized in the main office, while Microsoft Word and Excel are widely used in each franchise restaurant to plan and schedule smaller projects.

Below is a link to an article describing Dunkin’ Donut’s use of Hyperion.

Dunkin' Donuts Software

Launching a product for Dunkin Donuts requires much planning and advertising. Training employees on how to prep, hold, serve and suggest new items is one of the most important tasks involved in project planning and scheduling. As soon as Dunkin Donuts contracts a food supplier for a product they should provide training material in each location and immediately begin training the employees. Therefore, early start time for this task must be earlier in the project and continue throughout its control. Dunkin Donuts usually provides samples of each new item before its launching. Handing out free samples to its customers will not only increase repeat business, but will provide more hands on training for the employees. In addition, customer feedback on quality of the food will allow for the company to modify the recipe, if need be, before it goes live. Because no slack is allowed when it comes to the rollout date, prioritizing training and food quality will allow for slack in other areas. In today’s world people are becoming more and more health conscious. In the beginning stages of a large project like a modification of a menu, it is important that ample time be allowed to research healthy options for these this growing customer segment.

Even small, everyday projects, such as opening and closing duties go through the phases planning, scheduling and control. Many tasks must be started and completed at specific times in order to open and close the restaurant on schedule. Often times, employees have difficulties adhering to the guidelines set by the franchisees. Managers would be wise to use Gantt charts for these tasks. It would greatly help employees in knowing when to begin each task and how long it should take to do each one. Managers should audit the employees by making charts that compare projected to actual projects and use these to improve the employees’ productivity and counsel those who continuously fall behind schedule. It is also important for the project manager to see first hand the results of his or her work. Visiting restaurants after a project is finished will allow the manager to see what worked and what didn’t, and will provide vital information for the success of future projects.

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