Pizza Hut Business Process Model: Analysis and Implementation

This report provides a detailed analysis of Pizza Hut's business process model, focusing on various aspects such as customer service delivery, enterprise architecture, and potential future changes. The study examines the service blueprint approach applied at Pizza Hut, encompassing activities from raw material procurement to order delivery. It explores both online and physical ordering processes, including the flow of activities, diagrams illustrating the sales and ordering processes, and the integration of IT systems. The report also includes a business process implementation plan, outlining resource requirements, organizational hierarchy, employee needs, and required information system resources. It further delves into business rules and process dependencies, providing a comprehensive understanding of Pizza Hut's operational model. The report emphasizes the importance of business process models in enhancing work efficiency, strengthening best practices, and achieving a competitive advantage.

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Name of student
Name of instructor
Name of institution
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Date

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Executive summary
Business process modeling plays an important role in the analysis of a firm's needs in
the activities of customer satisfaction. The business process models explain various aspects
such as:
1. The customer service delivery process.
2. The enterprise architecture.
3. The possible future changes.
4. The automation of processes.
This paper focusses on the service blueprint approach applied at a Pizza Hut ("Home -
Pizza Hut", 2019). The activities involve the purchase of raw materials from the farmers,
preparation of pizza orders, placing of orders by customers and collection of orders by
customers. The paper also explains the future changes expected at Pizza hut's business
process model. The reason for selecting Pizza Hut is the existence of a clear and well-
executed business process model. Additionally, the management and employees were willing
to offer assistance during interviews and observations.
The report will further focus on various aspects such as,
1. The specific activities involved in the business model
2. A diagram indicating the flow of activities
3. Integration of the plan to the Information technology systems

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Table of Contents
Executive summary....................................................................................................................2
1.1 Introduction..........................................................................................................................4
1.1.2 Purpose of a business process model.............................................................................5
1.1.3 Business process model workflow................................................................................5
1.1.4 Importance of business process model..........................................................................6
1.2 Processes..............................................................................................................................6
1.3 Customers visiting the shop physically................................................................................6
1.4 Customer ordering online.....................................................................................................7
1.5 Activities..............................................................................................................................7
TASK 1......................................................................................................................................9
1.6 Ordering and sales diagram..................................................................................................9
1.7 Explanation of the ordering and sales diagram................................................................9
1.8 Simple illustration of the flow of activities....................................................................10
1.7 Explanation of sales and ordering diagram........................................................................10
TASK 2....................................................................................................................................11
2.0 Business process model diagram.......................................................................................11
2.1 Simple illustration of the flow of activities........................................................................12
2.1 Explanation of business process model..........................................................................12
2.2 Explanation of the flow of activities..............................................................................13
2.3 Definition of concepts....................................................................................................14
TASK 3....................................................................................................................................15
3.1 Business process implementation plan...............................................................................15
3.2 Resource requirements.......................................................................................................15
3.2.1 Hierarchy of organization............................................................................................15
3.2.2 Employee requirement.................................................................................................16
3.3 Required information system resources.............................................................................17
3.3.1 Online ordering business model..................................................................................17
3.3.2 List of required information system resources............................................................17
3.3.3 Physical customer order business model.....................................................................18
3.3.4 List of required information system resources............................................................18
3.4 Business rules.....................................................................................................................18
3.5 Business process dependency............................................................................................19
4.0 References..........................................................................................................................20

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1.1 Introduction
Managers running businesses that offer services such as Pizza Hut put much emphasis
on the design of services due to the major impact on delivery costs, customer satisfaction and
customer loyalty (Zablah, 2012). Pizza Hut uses service process visualization tools to analyze
various service delivery aspects ("Home - Pizza Hut", 2019). The management has a great
understanding of the creation of adequate business process models that assist in increasing
competitive service delivery in the market. The management understands that developing a
proper service model goes a long way to beat the competition in the market (Xiong, 2013).
The report focussed on Pizza Hut due to management’s willingness to assist with needed
information in interviews and site visits. Additionally, Pizza Hut was suitable since the
business has a branch close to the school, which made constant site visits affordable.
The report identifies various activities involved in the business models such as,
1. Ordering raw materials
2. Preparing customer orders
3. Placing of orders through online applications and physically at the shops
4. Collection and delivery of orders.
The report includes diagrams showing the flow of activities from ordering raw materials
to the delivery of products to the customers (Robertson, 2012). The diagrams indicate a
smooth flow of activities to ensure customer satisfaction. The business models play the role
of service blueprints, which the employees follow during service delivery (Powell, 2014).
Likewise, the customers also adhere to the blueprint while making orders to prevent
confusion and dissatisfaction during service delivery (Andreasen, 2012). The report
highlights a clear business model, which customers can follow without problems.

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1.1.2 Purpose of a business process model
Business process model refers to a graphical outlay of business processes or flows of
work. The process model is developed through various graphical methods such as flow-chart,
work break-down structures and data flow representations (Maharaj, 2011). The purpose of
the business process models include,
1. Ensuring work efficiency
2. Improving operations
3. Assisting in evaluating activities
4. Helps in developing new processes
1.1.3 Business process model workflow
Business process model workflow is the method, which activities follow each other at
an enterprise from the beginning to the end (Kumar, 2015). The workflow identifies how the
tasks follow each consequently in an orderly manner according to importance. The activities
arranged in a model workflow complement each other in terms of use (Faulkner, 2013). For
example, the output of a preceding process in the input of a subsequent process.
The report focusses on Pizza Hut which deals with the sale of Pizza to customers who visit
the store physically or order online. Pizza Hut realizes the need for a streamlined flow of activities
from the point of ordering raw materials to deliver products to customers ("Home - Pizza Hut",
2019). Therefore, Pizza Hut has made strategic alliances with suppliers to ensure timely supply of
raw materials. The Kitchen department receives raw materials and starts preparing customer orders.
The mode of Pizza delivery depends on the method used by customers to place orders, which includes
online and physical order at the store ("Home - Pizza Hut", 2019). The online orders require more
work since the Pizza is delivered to customers place of choice. On the other hand, customers who
order physically collect the order at the counter once ready. Pizza Hut has set up the business process
to include both front-office and back-office staff. The front office staff includes the cashier who

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collects payment from customers and process receipts. The back-office staff includes kitchen staff
who prepare pizza according to customer specifications.
1.1.4 Importance of business process model
1. Improving work efficiency - business process models improve the execution of
processes. The process models improve process works leading to improved efficiency,
production and margins (Essawy, 2012).
2. Strengthens best practice – the business process ensures that members of the
workforce have a deep understanding of expectations and work towards the
achievement (Gillingham, 2012).
3. The agility of procedures – business processes assist in developing a culture of
innovation due to the ability to understand procedures at a higher level that allows the
introduction of possible tweaks (Essawy, 2012).
4. Transparency of activities – the workforce and customers have a complete
understanding of the activities done at the business (Gillingham, 2012).
5. Competitive advantage – a properly designed business process model that is followed
to the letter enables a business to compete favorably in the market (Essawy, 2012).
1.2 Processes
The business process model is designed to accommodate two methods of placing
orders by the customers. The processes cater to both customers who visit the shop physically
or place orders through online platforms.
1.3 Customers visiting the shop physically
The business model begins when the customer visits the nearest store and is
welcomed at the entrance. The customer goes to the cashier's point and places an order after,
which payment is made and a receipt is issued to the client indicating the order specifications
and number. The customer receives a timer that indicates the amount of time that the order

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will take. An attendant helps the customer to locate an empty chair to sit on before the order
is processed.
On the other hand, the cashier forwards the order with all specifications to the kitchen
staff. The kitchen staff checks the order against the available ingredients to ensure that
customer order is fulfilled to satisfaction. In the case of shortages or lack of some ingredients,
the kitchen staff puts in an order request with the supply chain and procurement department.
Additionally, an attendant is asked to inform the customer that the order will take longer than
expected.
1.4 Customer ordering online
A customer orders online through Pizza Hut's website or other authorized third-party
applications. The customer keys in the specifications of the order on the online platform,
which automatically calculates the price. The online system automatically informs the kitchen
department about the order and relays the waiting time to the customer. The customer checks
out by paying for the order through online methods where a digital receipt is offered. The
customer then receives a call from a phone operator who collects details about the favorable
point of delivery. The phone operator relays details about the order and the delivery location
to a rider. The rider must deliver the order within the shortest time possible to prevent
customer delays.
1.5 Activities
Pizza Hut uses the service blueprint approach, which focusses more on the customer
view than the organization view to deliver services to customers (Siegel, 2015). The service
blueprint highlights the various activities, procedures, and documents involved when
customers place orders (Newbert, 2014).
The activities involved in the ordering and delivery of pizza to customers include.

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 Supply chain activities - at this stage, Pizza Hut purchases the necessary ingredients to
prepare pizza in the kitchen. The shop has set up various strategies with suppliers to
ensure a smooth flow of ingredients to the shop. The various procedures include the
installment of a computerized system that informs suppliers of shortages so that
delivery can be made in time.
 Preparation activities - the stage involves sorting and preparing the ingredients to
cook pizza.
 Customer induced activities – the kitchen staff prepare the pizza according to
customer order specifications.
 Employee activities- receive orders from customers and forward to the kitchen for
preparation.
 Customer activities – place and order by traveling to the shop or through online
platforms. The customers also pick the orders after processing.

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TASK 1
1.6 Ordering and sales diagram
1.7 Explanation of the ordering and sales diagram
The ordering and sales process involves four departments including, customer service,
sales, finance and warehousing. The various departments act together to tenure that the
customer receives products in the conditions specified in the purchase order. The first stage is
the customer service where the client places an order. The customer service department
inspects the customer credit ratings to confirm ability to pay. The customer service
department inspects customer credit with the help of the finance department.
The finance gives feedback to the sales department on whether the customer has a
good customer rating or not. In the case of a bad credit rating, the customer is denied
purchase while customers with good ratings can buy the goods.
After approval, the sales department checks the availability of products with the
warehouse department and offers a note requesting release of products. The warehouse
department confirms the existence of the ordered products and the process to release the

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goods is initiated. The release of products involves communicating with the customer to
know the place of delivery. The final stage involves the warehouse department delivering
products to the customer.
1.8 Simple illustration of the flow of activities
Marketing department Finance department Warehouse department
1.7 Explanation of sales and ordering diagram
1. Customer order Customers place orders for good with the marketing
department specifies the quality and quantity.
2. Approval of credit The marketing department approves customer payment
methods and passes the information to the finance department
3. Receipt processing The finance department processes a receipt for goods
collection from the warehouse.
4. Purchase confirmation The warehouse department checks the receipt and authorises
release of goods.
5. Release of goods The warehouse releases the goods to the customer
6. Sales invoice The finance department gives a sales invoice to accompany
products during dispatch.
7. Goods dispatch note The notice has details of destination address, product
2. Approval of
credit
3. Receipt
processing 4. Purchase
confirmation
5. Release of
goods
6. Sales
invoice
1. Customer
order
8. Delivery
to customer
7. Goods
dispatch note

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definition and customer personal details.
8. Delivery to customer The customer receives products delivered by the business
truck driver.
TASK 2
2.0 Business process model diagram

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Physical
evidence
Customer
actions
Front office
Backstage
Support
processes
(customer
induced)
Support
process
(customer
independent
)
Managemen
t processes
2.1 Simple illustration of the flow of activities
2.1 Explanation of business process model
 The management process involves the purchase of ingredients and supply of kitchen
staff. Suppliers deliver ingredients at Pizza Hut's premise in the required quantity,
quality an time to prevent shortages. Pizza hut and the suppliers have set up a
Website Restaurant
sign
Cashier’s
desk
Collect
pizza
Pay
pizza
Cash
collection
Place order
online
Order
processing
Assemble
pizza
Pizza
cooking
Pizza
delivery
Purchase of
ingredients
Preparation
of
ingredients
Supply of
kitchen staff
Heating of
oven