PROJECT REPORT

ON

SUBWAY OPERATIONS

PRESENTED TO:-

ANUSHA SREERAM

PRESENTED BY:-

DEBAMALYA MOHANTY

AFZAL USMANI

SHASHI KAUSHAL

SHUBHAM SINGH

NARESH MALOO

SONAM ANAND

ACKNOWLEDGEMENT

We take this opportunity to express our profound gratitude and deep regards to our

guide, Professor Anusha Sreeram, IBS-Hyderabad, for her exemplary guidance,

monitoring and constant encouragement throughout the course. The knowledge

and guidance given by her time to time shall carry us a long way in the journey of

life on which we are about to embark.

We also take this opportunity to express a deep sense of gratitude to our Company

Mentor Mr. ArjunRao, Store Manager, Subway, for his cordial support, valuable

information and guidance, which helped us in completing this task through various

stages.

Debamalaya Mohanty

Afzal Usmani

Shashi Kaushal

Shubham Singh

Naresh Maloo

Sonam Anand

INTRODUCTION

The SUBWAY system is committed to providing a variety of great tasting,

nutritious food choices while reducing our environmental footprint and creating a

positive influence in the communities we serve around the world.

Development of SUBWAY in India

Operating from its main office located in Milford, Connecticut, the quick service

restaurant chain has five regional centers to support its expanding international

operations. The Asian centre has been growing at a rapid pace and India as a

country occupies a pivotal spot on this expansion map. Subway Systems India Pvt

Ltd opened its very first restaurant in 2001 in New Delhi and has swiftly grown its

operations to 403 operating restaurants in 68 cities across India.

Although it is a global brand with a menu that is relatively the same around the

world, Subway restaurant takes great pride in honoring and respecting local

traditions and food preferences and has earned a reputation for offering a healthier

alternative to traditionally fatty and greasy fast food.

Subway restaurant in India serve no beef or pork products and have an expanded

selection of vegetarian choices. Popular sandwiches, both local and international

favorites, include Veggie Patty, Paneer Tikka, Aloo Patty, Roasted Chicken,

Chicken Teriyaki, Turkey, and Tuna.

MENU

Favourites Toasties

Tuna Chesse Toastie

Chicken Ham Pepperoni Toastie

Roasted Chicken

Chicken Teriyaki Breakfast

Cheese and Egg

Traditional Western Egg & Cheese

Italian B.M.T. Chicken Ham & Egg

Subway Club ™

Turkey Salads

Turkey & Chicken Ham Veggie Delite

Roasted Chicken

Other Favourite Subs Tuna

Chicken Tikka Turkey

Chicken Seekh

Chicken Tandoori Desserts

Rich Chocolate Truffle

Vegetarian Subs

Veggie Delite ™ Cookies

Veggie Patty Oatmeal

Paneer Tikka Single Chocolate

Veg. Shammi Double Chocolate

Aloo Patty

Corn & Peas Beverages

Cold Coffee

97% Fat Free Subs Iced Tea

Chicken Teriyaki Diet Coke

Chicken Ham Snapple

Roasted Chicken Packaged Cold Drinking Water

Turkey Coca Cola

Subway Club Sprite

Chicken Tikka Fanta

Turkey & Chicken Ham

Veggie Delite ™

Veg. Shammi

Waiting line analysis is the mathematical study of waiting lines, or queues. In

waiting line analysis a model is constructed so that queue lengths and waiting

times can be predicted. Waiting line analysis is generally considered a branch

of operations research because the results are often used when making business

decisions about the resources needed to provide service.

Utilization is the proportion of the system's resources which is used by the traffic

which arrives at it. It should be strictly less than one for the system to function

well. It is usually represented by the symbol . If then the queue will

continue to grow as time goes on. In the simplest case of an M/M/1

queue (Poisson arrivals and a single Poisson server) then it is given by the mean

arrival rate over the mean service rate, that is,

where is the mean arrival rate and is the mean service rate. In general, a lower

utilization corresponds to less queuing for customers but means that the system is

more idle, which may be considered inefficient.

Line structure: The waiting line is of a multichannel, single phase structure.

During peak hours subway’s waiting line structure takes the form of

Multichannel, multi phase

Number of lines: In subway, there are multiple lines in the veg counter and

single line in non-veg counter.

On weekdays 1 customer arrives every 6 minutes and it takes 5 minutes to

serve a customer.

On weekdays in peak hours (i.e., 1 pm to 3 pm and 7 pm to 10 pm)

customers arrive at the rate of 20 per hour and they are served at the rate of

15 per hour.

On weekends 28 customers arrive every hour and served at the rate of 30

per hour

Weekdays Peak hours

on week days

Weekends

Arrival

rate,(λ)

10 20 28

Service

rate,(μ)

12 25 30

Average

utilisation of

teller( λ/ μ)

0.833 0.80 0.933

Average

number in

the waiting

line

4.17 3.2 13.07

Average

customers in

the system

5 4 14

Average

waiting time

in line

0.417 0.16 0.467

Average

waiting time

in the system

0.50 0.20 0.50

Made To Order (MTO)

Start production when customer orders.

Advantage:- No finished goods inventory.

Disadvantage:- Intermittent production.

Key performance measures.

Time.

Orders completed on time(or late).

Quality measures.

Choice of 22 Made-to-order variety.

Each sandwich is customized just the way our customer want it.

Gourmet bread baked daily. The aroma of baking bread is a great sales

enhancement.

Select Sauces. Special sauces, that make great sandwiches taste even better.

Variety of toppings.

Customer

Production

Customer

Order

Product

PROCESS ANALYSIS

A process can be defined as "a logical series of related transactions that converts input to

results or output" The process we are considering is a "business process," which can be

defined as "a chain of logical connected, repetitive activities that utilizes the

organization's resources to refine an object for the purpose of achieving specified and

measurable results or products for internal or external customers."

Process analysis is an approach that helps managers improves the performance of their

business activities. It can be a milestone in continuous improvement

Ordering a sandwich from Subway can be more complicated than the average person

would think. There are certain steps that need to be looked at to get that perfect sub.

Step 1:- Make decisions regarding which type of burger you want to eat before you

approach the counter

Step 2:- Choose the type of bread you want to have when you eat the burger. As

subway offers you with 6 different variants of breads

Italian

Hearty Italian

Honey oat

Oregano

Multi grain

Parmesan

After you have selected the bread you want to have you are ready to move to the next

step

Step 3:- Here you have to choose the size of the burger which you want to eat

You have basically two choices i.e. whether 6 inches or the other which subway calls as

footlong burger which is nearly 12 inches

Step 4:- Here you have the option to select the extras if you want to have any in order to

make your burger more delicious like extra meat, cheese strips or strips of crispy bacon

to add more flavor.

Step 5:- After you have done this , you have the option to make your burger more

customized with the veggies of your choice like

Lettuce

Tomatoes

Cucumber

Pickles

Pepper

Olives

Jalapenos

Red onions

Thus you can change your burger from classic to exotic to meet your taste.

Step 6:- When it comes to ingredients sauces also play an important role so here you can

choose the type of sauce you want from the below options

Sweet onion

Honey mustard

Mayonnaise

South west

Adding these sauces thus takes your burger to taste more delicious

Step 7:- Last step may not sometimes be the least. Thus here you can opt for favorite

combination of subs, side and drinks which you want to have

For ex:- lipton ice tea, colddrinks etc..

Also the different types of special burgers at Rs 95/- which they offer on each day is

different like

Monday chicken seekh

Tuesday paneer tikka

Wednesday roasted chicken

Thursday aloo patty

Friday tuna

Saturday corn and peas

Sunday chicken ham

=

= + + =

BUFFERING:- It refers to the storage area b/w stages where the output of one

stage is placed prior to being used in the downstream stage. It allows the stages to

run independently

The buffers here in subway are

1. Bread – kept in stock for one week

2. Onion, tomatoes, cucumber- 50 kg

3. Olives, jalapenos- according to the requirements

4. Sauces

BOTTLENECK:- A resource that limits the production of the final product.

Here in case of subway the bottleneck are the sauces because they are provided by

the single vendor XYZ (name not disclosed ) in the entire country and if this

vendor doesn’t supply the sauces all the subway outlets will get closed.

MAKE TO ORDER:- Subway follows Make to order policy,i.e. only after the

order is received the burger is prepared accordingly whether it is a customized one

or a regular one from the offerings.

INDULGE VALUE HEALTH SUBWAY

FLOWCHART OF THE ENTIRE PROCESS

NO

YES

ENTER SUBWAY

REACH THE COUNTER

CHOOSE

SIZE

CHOOSE

SAUCE

CHOOSE

VEGGIES

CHOOSE

EXTRAS

CHOOSE

BREAD

CHOOSE

DRINKS

PAYOUT AT THE COUNTER

CHOOSE

NON

VEGGIE

CHOOSE

SPECIAL

ORDER

Scope of project

Inventory Management at SUBWAY

With inventory we refer to items that contribute to or become part of firm’s output.

Inventory analysis helps the firm to answer some basic and the most important

questions:

(1) When items should be ordered?

(2) How large the order should be?

Some of the Inventories involved in the Subway are as follows:

6 variants of breads, 10-15 varieties of vegetables, 4 types of sauces, fish, chicken,

paneer, ketchup sachets, tissue papers etc.

Purposes of inventory management:

1. To meet variation in product demand: They always have to maintain a

certain level of inventory so that they do not fall short of any of the raw

material needed to make subs. They first analyze the demand of the

particular products and then decide upon the materials required to make

them and order accordingly.

2. To reduce the cost: They also have to manage their inventory so as to reduce

the cost incurred in ordering, storing them. Some of the inventories get

easily deteriorated so they have to be ordered in less quantity even if they

get discount on big quantities. Here in Subway most of the inventories are

perishable so they need to be more precise while ordering

3. To provide a safeguard for variation in raw material delivery time: From

ordering till delivery of the raw material there is certain time gap called lead

time in technical language, should also be looked upon. Suppose if the lead

time is 2 days then inventories have to be ordered 2 days before they get

exhausted so that at any point of time we are not short of raw materials.

Reorder point: the point at which we issue an order for another Q units. Suppose

if the demand is 4000 units and our daily usage is of 10 units. Our order size is of

100 units and lead time is 2 days. Initially we will order 100 units and after that

every time the inventory reduces to 20 we will place an order for another 100 units.

This point where we place an order again is called reorder point.

Lead time for vegetables= 3 days

Lead time for breads= 2 days

Lead time for sauces= 5 days

Generally Subway places order for vegetables on every Friday and receives the

order by Monday.

They need around 100-110 k.g. of Tomatoes every week, which means around 15

k.g daily requirement of tomatoes is there. So they need to reorder tomatoes

whenever they are left with only 40-45 k.g. of Tomato. At this point they again

place an order for 100 k.g. of Tomato.

Reorder point= average daily demand * lead time

= 15 * 3

= 45 k.g.

Similar is the case with other vegetables also. Like for Cucumber, weekly

requirement is 60-70 k.g. i.e. 10 k.g. each day. So reorder point is= 10 * 3 = 30 k.g.

Red Onion’s weekly requirement is 60-70 k.g. reorder point= 10 * 3= 30 k.g.

Breads, they order after every 2 days. They have to be ordered so frequently

because we cannot have much stock of breads as breads needed to be fresh.

Sauces, as discussed above are the bottleneck in the process. They are ordered

twice in a month.

Inventories like tissue papers are secondary inventories they are ordered in lump

sum.

Hence all the inventories should be managed such beside meeting the demand

there is minimum wastage and minimum cost of incurring those inventories.