Achieving

Breakthrough
Operations
Some ideas to generate competitive
advantage through best in class
operations

Philip Moscoso

What Operations Management is about

The goal of Operations Management is

to deliver efficiently a winning
value proposition to our customers
Contribute to competitive advantage

STRATEGY Make happen

OPERATIONS
VALUE
PROPOSITION

Customer

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The essence of Operations Excellence

• Differentiated Value Prop

Company Customer
• Efficiency (“Doing more
Value with less”
Value
• Continuous improvement

OM Excellence

Value reinforcement, break trade-off: WIN-WIN is possible!!

(eg. through process improvement, technology, etc.)
Philip Moscoso

VV framework: 4 steps to develop your

value map……

1 2 3 4

TARGET VALUE OPERATING DELIVERY

MARKET CONCEPT STRATEGY SYSTEM
WHERE,
WHO? WHAT? HOW?
WHEN…?

Clients
Employees

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Ways to think about a business…

1. How much do we make? P&L statement

2. How much we own? Balance sheet

3. What do we sell? Product catalog

4. Who we serve? Client list

5. Who are we? Organizational Chart

6. What do we do and how do we do it? Process Model

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Philip Moscoso

Benihana of Tokyo
Philip Moscoso

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Benihana’s operating system

Management

Sequence of Activities Profitability Levers

• Direct margin/ client
Bar Hibachi • Rotation
• Other costs
Proportion è Times

Resources

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Philip Moscoso

The Benihana machinery

1. Competitive Advantage (profitability):

Loyalty through a differentiated offering and
first class delivery model (volume)

Business Vision (Offering)

Business Model

Business Strategy
2. Fit (design)

Operations Strategy
3. Optimization
(delivery)
Operations System

Operations Competitive Advantage

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 Process synchronization: Times

1st Restaurant Bar Hibachi Simplified Model

•Only 1 table waiting •Eating time = 60 min.

12 min. of
•1 X 12 min. •Capacity = 5 tables / 60 min waiting
•Table availability (Ø)= every 12 min.

2nd Restaurant

•2 tables waiting •Eating time = 60 min. 12 min. of

•2 X 6 min. •Capacity = 10 mesas waiting
•Table availability (Ø)= every 6 min.

3rd Restaurant

•6 tables waiting •Eating time = 60 min. 24 min. of

•6 X 4 min. •Capacity = 15 mesas waiting
•Table availability (Ø)= every 4 min.

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Philip Moscoso

Cost analysis summary

•Personnel: 10-12% vs. 30-35%

- Fewer employees (also management)
- Asiatic chefs: loyal to the firm
- Tips as source of income
- High productivity: lots, two tables, etc.
•Food: 30-35% vs. 38-48%
- Very limited variety: easy to plan, reduced waste, buying volume, less stock, etc.
•Beverages: 20% vs. 25-30%
- High margins: drinks with exotic names, but common ingredients (eg. Sake)
•Rent: 5-7% vs. 5-9%
- Very optimized space (only 22% no productive area)
- High traffic locations
•Advertising: 8-10% vs. 0.75-2%
- Overcome initial concerns about JPN food
- Growing company, but should ensure focus of spend

Philip Moscoso

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 Key takeaways: Benihana

•Operations (HOW) can be a key source of competitive

advantage (additional to WHAT we sell)
•Four key levers we can manage:
-Processes: e.g. customer POV (corridor); product mix, value
adding, etc.
-Capacity: e.g. metrics, synchronization, variability, tables, etc.
-Flows: e.g. lots, time control, stocks, etc.
-People and organization: e.g. incentives, motivation,
specialization, training, etc.

•Squaring the circle is possible (less costs and higher

satisfaction of clients and employees): align WHO,
WHAT and HOW!

Philip Moscoso

Thanks very much

and
wish you all the best!!
•Email: pmoscoso@iese.edu
•Tel. 91 211 30 00

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Philip Moscoso