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1. The business and setting up manufacturing ​

Back to the case study · Next: 2. Items and recipes

1.1 How a central kitchen works ​

A cloud kitchen brand does not cook everything in every outlet. The slow, skilled and risky work is done once, in one central kitchen, and the outlets finish the dish in minutes when an order comes in:

Done in the central kitchen (the night shift)Done in the outlet (to order)
Deboning chicken, peeling and chopping onionsGrilling the marinated tikka
Slow-cooking the onion-tomato base for 90 minutesFinishing a gravy with the protein
Cooking makhani gravy and biryani masalaCooking the biryani rice with the base
Marinating chicken and paneer for 12 hoursRolling and cooking rotis from the dough balls
Blast-chilling everything to 5 C, filling, sealing, labellingPacking for the delivery rider

So the central kitchen is a factory: it buys raw food, turns it into semi-finished food in steps, packs it, checks it, and ships it chilled to the outlets every morning. Every pack has a lot number and a use-by date. That is exactly what OSERP's manufacturing module is for.

1.2 Spice Republic Kitchens Pvt Ltd ​

BusinessNorth Indian delivery brand: tikkas, curries, biryani and rotis
Central kitchenPeenya, Bengaluru: one night shift from 10 pm, dispatch from 6 am
Outlets100 delivery kitchens across Bengaluru, Mysuru and nearby towns
People500
SuppliersPoultry farm, vegetable market trader, dairy, spice and grocery wholesaler, food container maker
PlannerKavya Menon, the production planner, who runs OSERP day to day

The 500 people, by department:

DepartmentPeopleRoles
Central kitchen113Executive chef, production manager, planner, 4 shift leads, 30 commis, 14 butchers, 20 cooks, 10 on marination, 14 packers, 8 on the dough line, 10 stewards
Quality64 food safety officers, 2 lab technicians
Stores10Stores manager and 9 store keepers
Logistics25Logistics manager, 18 reefer van drivers, 6 loaders
Outlets336100 outlet managers, 100 line cooks, 136 kitchen helpers
Head office10CEO, finance controller, accountants, HR, purchasing, 2 area managers

Every one of them is in People & Payroll, with their department, designation and employment type. Production does not need them one by one: what it needs is how many hours each station has and what an hour costs, which is the next step.

1.3 Start from the Central kitchen pack ​

Manufacturing > Industry setup offers starter packs for common trades. Kavya chose Central kitchen and cloud kitchens:

The Central kitchen pack: work centres, good practice and quality templates

The pack adds, only where missing:

  • Five work centres, the stations of a commissary kitchen, each with its hours, parallel units and efficiency.
  • Planning defaults for a business that cooks every day: a 14-day horizon, a nightly planning run at 2 am, and forecasts spread by day (a kitchen does not cook a month's demand on the 1st).
  • Two quality templates: Cooked and chilled for what the kitchen makes, and Meat, dairy and produce (incoming) for what it receives.
  • Good practice notes, shown at the bottom.

Nothing that already exists is changed, so a pack can be applied to a company that is already running.

1.4 Work centres and what an hour costs ​

Manufacturing > Work Centres shows the stations. Kavya added a sixth for the dough line, and set what each hour costs: the wages of the crew at that station plus gas and power.

Work centres with their capacity a day and cost per hour

CodeStationHours a day x stationsEfficiencyCapacity a dayCost per hour (INR)
PREPPrep (cutting, washing, deboning)16 h x 485%54.4 h200
MARINATEMarination16 h x 290%28.8 h180
KETTLECooking kettles16 h x 485%54.4 h350
CHILLBlast chillers20 h x 295%38 h120
PORTIONPortioning and packing16 h x 385%40.8 h200
DOUGHDough line (kneader and divider)12 h x 190%10.8 h250

Capacity a day = hours x stations x efficiency. It is what planning and the scheduling board fill. Cost per hour is what turns booked time into cost: when a cook books 90 minutes on a kettle, INR 525 goes onto that batch.

Why the hourly cost matters

Without it, a pack of makhani gravy costs only its tomatoes, butter and cream, and the kitchen looks more profitable than it is. With it, labour, gas and power are inside every pack's cost, and the gap between planned and actual time becomes visible.

1.5 Stores and the 100 outlets ​

Inventory > Warehouses holds every place stock can be:

The stores: two in the central kitchen, then the 100 outlets

StoreWhat it holds
CK-RM Central kitchen storesRaw food, packaging, and semi-finished food (bases, bulk gravy, marinade, boneless chicken)
CK-FG Dispatch cold roomFinished packs ready for the vans
QC-HOLD Quality holdAnything waiting for a quality decision. Made on first use; nothing in it can be issued, sold or sent
OUT-001 to OUT-100One store per outlet

Making every outlet a store is what makes the rest possible: each outlet's stock is known, the morning dispatch is a stock transfer, and a lot can be traced to the outlets that received it.

1.6 The cockpit ​

Manufacturing > Cockpit is Kavya's first screen every morning:

The manufacturing cockpit

Every figure opens the screen where it is dealt with:

FigureWhat it tells her
Open ordersProduction orders not yet closed
Late ordersOrders past their due date
Work in progressValue of food issued to production and not yet turned into packs
Done, not closedFinished orders waiting for their cost to be settled
Lots in inspectionPacks and deliveries waiting in QC-HOLD
Lines behind todayRate lines (the dough line) behind their daily rate
Material planWhen planning last ran, and how many items are short

Below them: late orders, repetitive lines behind, and OEE for the last seven days, worst station first.

Next: 2. Items and recipes

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