We have conducted the research in our first semester of MBA in Mohammad Ali JInnah University Islamabad (MAJU). La Montana will be one of the finest Restaurant in Pakistan. La montana is to Complete new Building Project. The capacity of guests will be 1200 3000 feet above see level in Margala Hill Station Pir Sohawa !

1. Operation Management – Term Project

2. Objectives:
1. Introduction / Structure,
2. Capacity Preferences,
3. Location Preferences,
4. Productivity Measures,
5. Product / Process Selection,
6. Differentiation Strategy,
7. Environmental effects,
8. Recent Projects,
9. Future Outlook,
10. Recommendations.

3. 1. Introduction:
 La Montana is offering grand natural visit of
Margalla Hills and Panoramic View of
Capital City.
 Just 10 Km drive way from heart of
Islamabad, Very Adventurous and lovely
track up to PIRSOHAWA.
 La Montana Now offering party events,
meetings and wedding arrangements.
 Open balconies, Halls for all activities and
Large parking area.

4.  La Montana has added taste to the natural greatness, Making the
Hill top most attractive for tourists and People seeking stunning
natural beauty and mouth watering taste at one Place.

5. Organizational Structure
“Functional”:
General
Manager
Food &
Operations
Beverage
Manager
Manager
HR manager Accountant Security Store Kitchen Supervisor
Cash Floor
Chefs
Personnel Manager
Cooks Stewards
Dish
washers

6. 2. Capacity Preferences:
 La Montana is increasing their Capacity with
Preference of bringing more guests into the
business to achieve competitive advantage.

7. Current Capacity
 The current capacity of La Montana restaurant is
about 800 customers at area of max 15000 Square
feet. There are three halls in la Montana:
 1 - Sapphire Hall,
 2 - Sapphire Patio Hall,
 3 - Emeral Deck Hall.

8. Sapphire Hall
 Sapphire Hall Capacity 300 guests and Area is 5000
square feet.

9. Sapphire Patio
Hall
 Sapphire Patio Hall Capacity is 250
guests and Area is 5000 Square feet

10. Emeral Deck
Hall
 Emeral Deck capacity 250 guests and
Area is 5000 Square feet.

11. 3. Location Preferences:
 Pir-Sohawa is Islamabad‟s highest tourist Spot according to
Wikipedia:
 http://en.wikipedia.org/wiki/Pir_Sohawa
 PIR-SOHAWA is ranked at 6th number in Pakistan by TRIP
ADVISIOR.Com
 http://www.tripadvisor.com/Attraction_Review-g293960-
d2435190-Reviews-Pir_Sohawa-Islamabad.html

12. 3. Location Preferences:
 La Montana is located at 3000 feet above sea level and it is attracting
Customer due to its cool and unique climate.
 Pir-Sohawa is the most famous and romantic place to visit for newly
married couples and Students.

13. 3. Location Preferences
 They have started a new project in December
2011 to exploit this unique location.
 The main objective is to increase current capacity
to 1200 guests, to avoid loosing business and gain
higher market share.

14. 4. PRODUCTIVITY MEASURES
La Montana is offering a list of over 250 meals (Products).
They are serving about 200 customers daily.
This number is increasing in week ends to 285 average.

15. 4. PRODUCTIVITY MEASURES
In order to calculate productivity, we need to
explore Output/Input.
Sale Customer Customer / Day
Jan 4,256,789.00 7026 234.2005210
Feb 5,255,678.00 6925 230.8333333
Mar 5,087,231.00 9125 304.1666667
Apr 5,183,250.64 8425 280.8333333
May 6,276,458.92 8756 291.8666667
Jun 5,448,987.00 9125 304.1666667

16. 4. PRODUCTIVITY
MEASURES:
S.No
1
Particulars
Salaries
January
2,000,000.00
February
2,000,000.00
March
2,000,000.00
April
2,000,000.00
May
2,000,000.00
2 Daily & Misc Salaries 3,600.00 3,600.00 3,600.00 3,600.00 3,600.00
3 Staff Entertainment 27,000.00 30,000.00 33,000.00 36,000.00 39,000.00
4 Rent 70,000.00 70,000.00 70,000.00 70,000.00 70,000.00
5 Depreciation 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00
6 Printing & Stationary 18,000.00 19,000.00 20,000.00 21,000.00 22,000.00
7 Medicines 1,500.00 1,000.00 500.00 - 500.00
8 Bank Charges - 1,500.00 - - 300.00
9 Frieghrt Charges 8,000.00 400.00 900.00 3,000.00 400.00
10 Packing Meterial 500.00 3,000.00 2,000.00 - -
11 Consumables 80,000.00 50,000.00 30,000.00 25,000.00 50,000.00
12 Misc Exp 10,000.00 5,000.00 3,000.00 8,000.00 6,000.00
13 Travelling 7,000.00 - 3,000.00 - -
14 Repair & Maintinance 60,000.00 72,000.00 35,000.00 4,000.00 51,000.00
15 Conveyance 300.00 500.00 700.00 1,500.00 200.00
16 Postage 500.00 - - - -
17 Bad Debts - - - - -
18 Telephone 10,000.00 12,000.00 11,000.00 13,000.00 15,000.00
19 Vehicle Running 150,000.00 130,000.00 130,000.00 150,000.00 110,000.00
20 Elec, Water & Gas 170,000.00 160,000.00 120,000.00 130,000.00 200,000.00
21 Staff Food 60,000.00 70,000.00 80,000.00 50,000.00 60,000.00
Total 2,726,400.00 2,678,000.00 2,592,700.00 2,565,100.00 2,678,000.00

17. 4. PRODUCTIVITY
MEASURES
PKR 7,000,000.00
PKR 6,000,000.00
PKR 5,000,000.00
PKR 4,000,000.00
Sale(output)
PKR 3,000,000.00 Production Cost(input)
PKR 2,000,000.00
PKR 1,000,000.00
PKR -
Jan-12 Feb-12 Mar-12 Apr-12 May-12

18. 4. PRODUCTIVITY MEASURES
In case of La Montana, and according to
our available data, we will calculate ratio of
sales/operating expenses “Profitability”.
Average month sales: Rs 5,183,250.
Average month expenses: Rs 2,902,900.
April = 5,183,250 / 2,565,100 = 2.02 = 202 %

19. 5. Product & Process Selection
Preferences:
 The product selection is mainly based on
Customer expectations and seeking
competitive advantage over Monal
restaurant as well.
 As Restaurant industry offers different food
products is directly affected by the strength
of the kitchen staff and Capacity. The
product is selected carefully by the chiefs
and stewards.

20. 5.1 Product Selection
Preferences:
 - Product is selected according to the
availability of the raw material as well.
 - For example Sea food is available in Karachi
and Islamabad, La Montana keep tracking the
given prices by the suppliers at specific time.
 - The availability of raw materials in the store
and inventory is analyzed before selecting the
product.

21. 5.2 Process Selection &
Preferences
 It starts with the arrival of the guests where they are
welcomed in professional manner by the two Guest relation
officers and guiding them to their reserved tables.
 Often is encouraged to visit different places in the
restaurants with little briefing about the natural beauty of
the Islamabad from 3000 feet above sea level.

22. Process Selection &
Preferences
 Then the Floor manager comes to the table
and is introduced by the guest relation
office, the floor manager monitored by the
floor supervisor who then gives the menu
and take order from the guests.

23. Process Selection &
Preferences
 The order is moved to the main Counter
where he is given the Kitchen Order Token
(KOT), which is the authority for Kitchen to
prepare food and deliver on time.

24. Process Selection &
Preferences
 The KOT consist of different receipts for every BAR in
the Kitchen, As shown for Pakistani Bar separate
token, Tandori Bar & Bar (drinks) tokens.
 Tokens are issued separately to help smoothing and
speeding the operations.

25. Process Selection &
Preferences
 The normal time, from order taking to serving food, is 20 to
25 minutes.
 The guest‟s feedback and complaints are highly appreciated
in La Montana where they are given short questionnaires for
improving their services.

26. 6. Differentiation Strategy:
 La Montana has recently opened its corporate
banquet and conference Sapphire hall offering
300 guests capacity with high regulation
multimedia projectors along with Wi-Fi and sound
system available for different national and
multinational companies where they can enjoy
comfortably their business meetings.

27. 6. Differentiation Strategy:
 La Montana offers 60 different items Silver
buffet service to all customers especially for
wedding and dinning programs.

28. 6. Differentiation Strategy:
 The staff is highly trained and Hospitable .
 Operations classes are conducted at the end of every
month inviting different high profile hospitality
professionals to ensure the operations are carried out at
international standards levels.

29. 7. Effects on Environment
 The restaurant annually consumes roughly 500,000 kilowatt hours
of electricity, 20,000 thermos of natural gas and 800,000 gallons of
water.
 Using the latest EPA carbon equivalents, that amounts to 490 tons
of carbon dioxide produced per year per restaurant, PG&E
estimates.
 Restaurants produce far more garbage on a daily basis than most
other retail businesses.
 Typical restaurant generates 100,000 pounds of garbage per
location per year, as the Green Restaurant Association
estimates.

30. 7. Effects on Environment
 La Montana has signed a contract with sub contractor who is
taking the trash of the restaurant on daily bases.
 La Montana has discouraged the use of plastic bags but giving
take away food in paper packing to reduce the negative impact
of the plastic bags on our environment.

31. 
8. have started the new project of increasing the capacity in
They
Recent Projects:
December 2011.The main objective is to ensure La Montana has
capacity to serve more guests in the future.
 The New Project is expected to be completed by 14th August
later in the year. This New hall will be able to accommodate
400 more guests covering Area of 9000 Square feet.

32. 9. Future Outlook of La Montana
 La Montana has planned to build Kids Park with Parking
area of the restaurant Where Kids can enjoy their time
and have fun with other kids of different families.
 The Park will offer different play pin games with 3D
animations to enjoy themselves in a perfect environment.

33. 10.
Recommendations:
 - Dress code should strictly be implemented and violator should
be fined and given official warning letter from HR office.
 - The process selection is complicated and time consuming
especially with business customers.

34. 10.
Recommendations:
 - The floor supervisor should always be standing at doors on
the available dices to welcome new guests throughout the
working hours.

35. 10.
Recommendations:
 - There should be separate order taker machine in Kitchen in every
Bar to help in smoothing operations at the La Montana which can
increase productivity through using higher capacity.
 - Order should be send from main counter to respective
„Department‟ of the kitchen immediately.

36. 10.
Recommendations:
 - Safety measures should be improved to avoid negative incidents.
 - The Kitchen hygienic environment should be improved to keep highest
standards for guests health as primary task.