Fundamentals of Supply Chain Management
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Analysis of
Domino’s Supply chain
Using QFD Methodology
Presented By,
Shishir Kunjal Prabhu
Nirmalkumar PatelFundamentals of Supply Chain Management
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Executive summary:
Domino’s Pizza as considered the most reputed and preferred pizza globally, hence, requires the
urgent recognition for its advanced supply chain management. This research is based on the clear
and most essential need of effective supply chain management to keep the continuous and most
successful outflow of its most favorite pizza delivery. After the detailed research, you can go through
the maximum useful factors that help in the continuous outflow of the product along with the
complete customer satisfaction.Fundamentals of Supply Chain Management
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Table of content:
Introduction................................................................................................................................4
Supply chain management.........................................................................................................4
Issues in supply chain management...........................................................................................4
Design requirement to rectify the problems..............................................................................7
Fuzz theory.................................................................................................................................7
QFD model..................................................................................................................................8
Connection among HOWs and WHATs applying QFD methodology..........................................8
Relative importance and Absolute importance of HOWs..........................................................8
Theoretical implications.............................................................................................................9
Discussion and applications.......................................................................................................10
Conclusion..................................................................................................................................10
QFD Calculations…………………………………………………………………………………………………………………….11
References................................................................................................................................. 13Fundamentals of Supply Chain Management
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Introduction
Domino’s Pizza venture limited in Australia is considered as the vast pizza network as well as the
widest pizza authorization network globally. The sales, shops and the chain of Domino’s pizza are
very large in Australia. As per the increasing demand for this product, they have grown to be setting
around 2000 stores globally in various nations. Their chief headquarter is located in Queensland,
Australia. In the Domino’s pizza of Australia, it was stated that it is most preferred and prevailing
pizza firm in 2005. Earlier in the 1983, the first pizza store was introduced in the Queensland along
with the home delivery service for the customers.
Domino’s has the very interesting background that earlier in the 1960, in the USA, James Monaghan
and Tom Monaghan purchase the DomiNick’s pizza shop and replace it with the name of Domino’s
and paving a path for its success since their purchase (Gray, 2013). Currently, the firm comprises
almost 26000 executives in it. They offer a vast range of pizzas to their customers such as prawn
pizza, pizza chef, cheese pizza, pizza mogul, chicken pizza, and traditional pizzas along with these
customers can get various flavors wafers and soft drinks. Despite of all these, there is also availability
of Caked Churros, Mini Dutch pancakes, and Fudge Brownies. Customers can get these in the form of
the desserts. Ordering the pizza has become more convenient for the customers by their internet
service by which they can get home delivery of their ordered pizza.
Supply chain management
Supply chain management is the administration regarding the processing of products and services,
comprises the storage and transportation of raw substance, of continuous processing stock, as well
as of completed products through the spot of the starting of utilization (Christopher, 2016).
Issues in supply chain management
The chief issue that arise very frequently in Australia is the delivery issue. Customers every now and
then asking for their pizza that, “why my pizza has not been delivered yet as per the expected time?”
Hence, the firm has introduced an online tracking program by which every customer can track their
pizza location and be aware of the delivery time of their pizza. Such tracking program is the segment
of the supply network that assists to maintain varied interaction along with every customer. As the
conclusion, the lucidity between the firm and the customer has appeared to be enlarged. By the help
of Domino’s Pizza function, it is convenient for the customer to provide their valuable feedback to
the firm directly that is quite effective for the firm to advance their services (Zhao & Balagué, 2015).
The retailers, wholesalers, and producer can carry their trades more variedly as well as the
interaction appears to be rising really quickly because of the application of technology and in this
way the network appears to be tougher. Rather the firm has been integrating fresh technologies on
the prevailing ones lacking of implementing the fresh refined technologies (Hartley, 2015).Fundamentals of Supply Chain Management
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Inventory issues
Stock regulation methods in 2002 of Domino’s have been federal as well as the functions were
openly linked to headquarter. Every allocation channels were regulating by the program (Rao &
Oumlil, 2015). The sourcing and strategies of the supply network have been regulated through the
technologies. Rather because of the stock centralization, many issues have been arising for
functioning the stocks appropriately and it was distressing the interaction along with the clients. For
regulating the stocks, the Enterprise Resource Planning (ERP) have also been engaged, and currently
there are integration of fresh aspects to the structure like the forecasting and replenishment
programmed software.
Risk administration
In the development of any trade, risk management is considered as the most crucial aspect (Lam,
2014). The effective allocation network is proficient to forecast the normal disasters like rainy
season, earthquake, etc. as well as prior to the forecasting, the stock administration must be well
cleared. Rather sometimes it can be observed that the actual time program cannot forecast the
normal disasters as well as the firm has to experience many issues such as sufficient inventory were
not present in the provisions and the firm that are not capable to carry home delivery. Such events
can influence the firm really adversely. Such allocators might get ruined as well as the allocation
network can get hampered.
Sustaining the safety and the quality
Currently, people have appeared to become quite fitness freak as well as they also know regarding
the negative effects of the fast foods (Webster et al., 2014). Hence, Domino’s must keep the class of
the goods and for should also be concerned regarding safety of the goods. Therefore, the firm
requires to concern regarding the underdone substances that have been delivered through the
allocators. Rather the underdone substance might not be of perfect class then the output appears to
be also fruitful. By the digital sources, the government have been practising to enlarge the
consciousness between the customers regarding the safety and health. While it is also considered
that the pizza is also a fast food rather the firm is practise to execute the publicity regarding the
pizza of less to integrate the large volume of customers of every segment.
Administrating the Allocators
The allocation network administrators must contain appropriate information regarding the
allocators. The total count of allocator might be resolute appropriately through the administrators.
The productivity of the firm will surely get affected adversely if the connection among the allocators
and manufacturers are not kept favorably. In a way, the inventory will surely get affected and no
stock of such goods will be available to fulfil the needs of the customers.
Design requirement to rectify the problems
At this stage, the quantitative measures 3, 4 and 5 have been performed with the strong objective of
shaping the weights of the planning and the weight of the sustainability needed. At this stage, anFundamentals of Supply Chain Management
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individual case firm is been chosen to collect quantitative information about the significance for the
sustainability needed as well as the equivalent planning. We choose individual case due to the QFD
proposals appear to be quite difficult by integrating more cases. From the seven cases firms, the
chosen firm hold up each sustainability needs as well as the planning discovered in the sector
research (phase 1). It can also appear to be the largest pizza manufacturing firm in Australia and is
the reputed name in Pizza policy creating arena in Australia. For avoiding the partiality in decision
creating, there is the engagement of three decision makers (Lee and Kim 2000), which are
production manager, merchandising manager, and the supply chain manager. Fuzzy-QFD measure
has been applied for drawing out the information required to complete steps 3, 4 and 5.
Fuzzy theory
In 1965, Zadeh primarily originated the fuzzy set approach for dealing with the problems regarding
the inappropriate defined issues that were observed a particular standard of ambiguity and doubt.
The first benefit of implementing fuzzy understanding is the exchange of indefinite biased
judgement to accurate purpose terms, like the connection among the sustainability needs as well as
the unoriginal plans for backing the needs.
Connection among HOWs and WHATs applying QFD methodology
As concerning to the earlier studies as well as for recognizing the imprecision in different evaluations
Fuzzy-QFD tactics has been approaches in this case study to resolve the intention sustainability
needs of the stakeholders and purchasers (WHATs in QFD terminology), the plans to determine the
sustainability needs (HOWs in QFD terminology) as well as the connection among the WHATs and
HOWs.
Relative importance and Absolute importance of HOWs
In such QFD stages 6, 7 and 8 are carried out with the expectation to ultimately searching the finest
plans (HOWs) through non-linear changing issues. In step 6, it can be seen that the connections
between HOWs by communicating with the DMs in the case firm of the segment atmosphere. In
step 7 it can be observed that what is primarily attained is the fuzzy triplet of prices of applying
every plans in case of optimistic, pessimistic and most probably worth by communicating along with
the DMs. In the measure 8, we progressed that the changed structure for searching the fines plansFundamentals of Supply Chain Management
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(HOWs) to carry out the sustainability needs (WHATs) by increasing the accumulative BCR in the
accounts limitation.
Theoretical implications
Theoretical implications in this case study depend on the four features:
(i) Depending on dynamic excellence and stakeholder theory, view of this case study is
helpful in offering the structure of allocation network sustainability according to the less
price nation sourcing that is special involvement in allocation network sustainability
study;
(ii) it defines that fuzzy QFD proposals can be applied competitively to fulfil the needs of
allocation network sustainability of the stakeholders according to the less price nation
originating;
(iii) for drawing out different sustainability needs, it is possible to prioritize them hence
imparting knowledge to the administration for what is optimal and easy to apply; and
(iv) it can also be feasible for developing the complementariness in planning for allowing the
administration to attain them as well as apply various forms of planning alternatively in
the restrictions.Fundamentals of Supply Chain Management
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Discussion and applications
Reliable according to the encouragement regarding this case study, ten sustainability needs (WHATs)
have also been observed (Table 6) that is also reliable along with the earlier research. Equivalent to
the ten sustainability needs, nine of them are (HOWs) observed through the research of the case
firm. Such planning can also be optimized and prioritized in the limited financial stock restrained by
application of Fuzzy QFD tactics. The Fuzzy QFD tactics have been split into three stages. The
conclusion in the earlier parts depicts results in the three QFD stages. Hence, currently the reflection
of the results can be shown to depict the application of the outcomes.
For developing the allocation network administration, Domino’s have set-up a fresh tracking
program, hence, the customers can easily know that where their pizza is at present time and to get
the exact delivery time (Taylor, 2015). The tracker is being executed by the five measures, which are
making the order, making of food, payment of cost, wrapping of the good as well as the course path
of the shipment. The tracker software also depicts the delivery boy name.
While this tracker program helps Domino’s in depicting their allocation network really variedly for
the customers. The other firms may not wish to depict their allocation network as well as stock
administration for the customers. Hence, the customers of Domino’s seem to be completely pleased
through such clearness. In 2016, Domino’s has attained the benefit of $92 million and with the time,
it has developed to almost 43.6% as compared to the earlier years. As stated by the Domino’s, that
they will expand their business in New Zealand and Australia by setting-up huge number of stores in
the upcoming 10 years. Domino’s is likely to expand their trade as according to the actual time
allocation network administration system.
Conclusion
Allocation network administration is the difficult activity regarding any trade (Stadtler, 2015).
Domino’s has been inheriting the effective allocation administration structure and thus it is
connected with the actual time structure. Rather there are also prevailing problems in it, therefore
the stock has not been so much expanded as well as the trade functions of Domino’s is influenced.
The firm requires a tough and finely managed actual time structure to administer and expand the
stock impulsively. The complete functions of Domino’s like the advertising plans, quality and safety
of the goods, as well as the risk administration are connected along with the actual time structure.
Therefore, the actual time structure of the firm must be finely augmented. The firm frequently offers
new and fine class products. The firm has always try to maintain the varied interaction with their
every customer, the fresh tracking structure appears to be very effective for maintain the clearness.
It is quite efficient for developing the customer contentment. Domino’s provides different form of
pizzas for the customer, for making them integrate towards them conveniently.Fundamentals of Supply Chain Management
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Calculation of QFD
Table 1: The stepwise research process adopted in our study
QFD
Phase 1
Step 1 Identify the Dominos Supply Chain Issues (WHATs).
Step 2 Identify Strategies (HOWs) to overcome the Dominos Issues
QFD
Phase 2
Step 3 Determine the relative importance ratings (weights) of WHATs by using
the Fuzzy set theory.
Step 4 Determine the relationships between WHATs and HOWs using QFD
methodology
Step 5 Determine the absolute importance and relative importance of HOWs
weighted by the weights of the Dominos Issues (WHATs) found in step 3.
QFD
Phase 3
Step 6
Find the correlation between the strategies (HOWs)
Table 2: Participants Description
Participant Position Type of the company Company size Age of the
(no of employees) company
D1 Staff 1 Pizza Chain
Less than
100 20-25 years
D2 Staff 2 Pizza Chain 100 20-25 years
D3 Staff 3 Pizza Chain 100 5-10 years
D4 Staff 4 Pizza Chain Less than 100 20-25 years
D5 Staff 5 Pizza Chain Less than 100 20-25 years
D6 Staff 6 Pizza Chain
Less than
100 20-25 years
D7 Staff 7 Pizza Chain Less than 100 20-25 yearsFundamentals of Supply Chain Management
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Table 3 Dominos Issues (DI) Companies
1 2 3 4 5 6 7
DI1 Customer Satisfaction y y y y y
DI2 Delivery lead times y y y y y
DI3 Pizza Quality y y y y y y
DI4 Inventory Management y y y y y y y
DI5 Risk Management y y y y
DI6 Environment and health hazard ingredient in product y y y y y y y
DI7 Labor Management y y y y y
DI8
Improper Sales
F Forecast y y y y y
DI9
Competitive
A advantage y y y y y y y
DI10 Cost/competitive price y y y y y y y
Strategies (ST)
Employ more Customer Service Reps, Reduce customer wait times y y y y y
(ST1)
Employ More Delivery Drivers/ Hire vehicles, Reduce instore
process times
y y y y
(ST2)
Provide Staff training/ Oven maintainance/Ensure Dough Quality
y y y y y
(ST3)
Forecast sales/Ensure Inventory/Avoid food variances
y y y y y y
(ST4)
Supplier evaluation, training and development (ST5) y y y y
Staff Training Programs/ Hire efficient staff/ Motivation/
Incentives
y y y y y
(ST6)
Aggregate previous sales reports/ Analyse occasional
sales(ST7) y y y y y
Understanding competitors strategy/Improve quality/ Increase
product options for customers to choose from(ST8) y y y
Avoid variances/ cost strategies/ Pricing startegies (ST9) y y y y y yFundamentals of Supply Chain Management
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Table 4 & 5: Fuzzy importance ratings of Dominos Issues(WHATs) / Defuzzified and aggregate
importance ratings of Dominos Issues (WHATs)
Dominos Supply chain Issues (WHATs) DM1 DM2 DM3
DI1 Customer Satisfaction VH VH H
DI2 Delivery Lead time H VH H
DI3 Pizza Quality VH VH H
DI4 Inventory Management VH VH VH
DI5 Risk Management H H VH
DI6 Environment and health hazard ingredient in product VH VH VH
DI7 Labor management H VH H
DI8 Improper Sales forecast VH VH VH
DI9 Competitive advantage VH VH H
DI10 Cost competitiveness H H VH
WHATs xα xβ xϒ
DI1 Customer Satisfaction 7.33 8.33 9.33
DI2 Delivery Lead time 6.67 7.67 8.67
DI3 Pizza Quality 7.33 8.33 9.33
DI4 Inventory Management 8 9 10
DI5 Risk Management 6.67 7.67 8.67
DI6 Environment and health hazard ingredient in product 8 9 10
DI7 Labor Management 6.67 7.67 8.67
DI8 Improper Sales forecast 8 9 10
DI9 Competitive advantage 7.33 8.33 9.33
DI10 Cost competitiveness 6.67 7.67 8.67Fundamentals of Supply Chain Management
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Table 6: Correlation between the Domino’s Issues and strategies (WHATs & HOWs)
ST1 ST2 ST3 ST4 ST5 ST6 ST7 ST8 ST9
DI1 H H VH M M H H H VH M M H L L M VL VL L VL L L VL VL L VL VL L
DI2 H VH VH M M H M M H M M H L L M VL VL L VL VL L VL VL L VL VL L
DI3 M M H M H H H VH VH M M H M M H L L M H H VH L L M VL VL L
DI4 H VH VH H H VH H VH VH H H VH M H H VL VL L VL VL L VL VL L VL VL L
DI5 M H H M M H M H H L M M L L M VL VL L VL VL L VL VL L VL VL L
DI6 L L M L M M M H H M M H M H H H VH VH M H H M M H VL VL L
DI7 VL L L M M H M M H H H VH M M H VL L L M M H M H H H VH VH
DI8 M M H L L M VL L L VL VL L M M H H VH VH H VH VH H VH VH L VL VL
DI9 M H H VL L L VL VL L VL VL L L L M VL VL L M H H M H H L VL VL
DI10 VL VL L L M M VL VL L VL VL L L L M L L M H VH VH M H H L L M
QFD Model:
Legends:
= Strong
= Medium
∆ = Weak
HOWs
DI1- 10
AI of HOWs
Figure 3: QFD ModelFundamentals of Supply Chain Management
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