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Course Instructor:
Dr. Maher Bakri
Prepared By:
Zeina Saleh
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“Enterprise Resource Planning (ERP)
Systems used for Kentucky Fried Chicken”
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Dedications
I would like to dedicate this project to the course instructor Dr. Maher Bakri. And I
would like to thank him for guiding me through every step of it. It is he who
helped me develop the skills and knowledge necessary for completing this
project.
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Abstract……………………………………………………………………………..…………………………………….4
General Information……………………………………………………………………………………..……………...5
Kentucky Fried Chicken’s Famous Story……………………………………………………………..……………6
Basis for Success……………………………………………….…………………………….…..………..…………..8
The Colonel’s Promise and Vision…………………………..…………………………..……………………
The C.H.A.M.P.S. Program.....................................................................................................................
Corporate Overview…………………………………………………………………………………………..………...9
Facts and Figures………………………………………….……………….…………..………….……………
Type of Restaurant / Outlet……………………………………………...……………………………………..
Franchise Model……………………………………..…….……………………………………..….………….
Organizational Structure……………………………………………………..………………………….…….…………
Head Office Departments……………………………………………………………………..………………………10
Enterprise Resource Planning System (ERP).................................................................................................12
ERP Key Functions………………………………………………………………………...……………………
ERP Software Applications Include…………………………………………………….……………………..
Objectives for Implementing an ERP System…………………………………..……….………………...13
Advantages of an ERP System………………………………………………………………………………...
ERP Systems Centralize Data……………………………………………………………………………….14
Disadvantages of an ERP System…………………………………………………….……………………….
KFC Before Implementing an ERP System………………………………………………………………………….15
KFC’s Implementation of an ERP System………………………………………………..……………………
JD Edwards EnterpriseOne 8.10 benefits the company…………………………………….………………..
Conclusion and Recommendation………………………………………………………………..……………………..
Key features of JD Edwards EnterpriseOne 9.0 include…………………………………………………………..16
References………………………………………………………………………………………………………………….17
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Abstract
KFC is a major quick serving restaurant (QSR) serving over 12 million customers on a
daily basis through its 21,400 restaurants in 109 countries. This report investigates the
Enterprise Resource Planning (ERP) system being implemented at Kentucky Fried
Chicken, the reasons for its implementation; the benefits obtained from it my and my
personal recommendations to enhance it. The report also gives an introduction about
KFC, its establishment and its history.
General Information
KFC Corporation, also known as Kentucky Fried Chicken is the world's most popular chicken
restaurant chain. KFC primarily sells chicken pieces, chicken sandwiches, chicken pot pies, crispy
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chicken strips, wraps and salads. KFC is part of Yum! Brands, Inc., the world's largest restaurant
company in terms of system restaurants, with more than 36,000 locations around the world.
Harvey R. Brownlea, COO
James O'Reilly, VP for Marketing
Pete Harman was building a successful burger business in Utah when a white-haired, goateed
acquaintance from Kentucky showed up unexpectedly and offered to cook a fried chicken dinner.
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Colonel Harland Sanders had a business proposition. He was certain that one helping of his
specialty chicken, coated with a blend of 11 herbs and spices, would persuade Mr. Harman to add
chicken to his menu.
Mr. Harman was hooked after a few bites. Soon, his restaurant was promoting the dish, called
Kentucky Fried Chicken.
The chicken became an instant hit in that August of 1952 as customers lined up outside the
Salt Lake City eatery to take home dinners by the bucketful. For $3.50, they got 14 pieces of chicken,
mashed potatoes, rolls and gravy.
From humble beginnings, Kentucky Fried Chicken became a fast-food staple and its originator
one of the world's most recognizable faces.
Fifty years later, the chain built on Mr. Sanders' salesmanship and home-style cooking boasts
nearly 12,000 restaurants worldwide generating sales of nearly $10 billion a year.
For Mr. Sanders, success was a long time coming. He drifted from job to job, including stints
as a railroad fireman, insurance salesman, steamboat ferry operator, tire salesman and service station
operator. He perfected his chicken and the cooking technique in the late 1930s while serving hungry
customers who stopped at his service station — now a historic landmark in Corbin, Ky. The title
“colonel” was an honorific bestowed on Mr. Sanders by a Kentucky governor.
He decided to take his chicken from a handful of local restaurants to a national stage at the
age of 62, a time when most people are thinking of retiring.
He crisscrossed the country by car, his cookware and herbs and spices in the back, to whip up
batches of chicken for restaurateurs and their employees. The demonstrations sealed many handshake
deals in which restaurant operators agreed to pay Mr. Sanders a nickel for each chicken sold.
By 1964, Mr. Sanders had signed up more than 600 franchised outlets when he sold the
company for $2 million to a group headed by Jack Massey and Mr. Brown, who later became governor
of Kentucky.
Kentucky Fried Chicken took flight under Mr. Brown and his partners. By 1971, when they sold
the company for $285 million to Heublein Inc., it had more than 3,500 franchised and company-owned
restaurants.
Mr. Brown attributed the company's success to its emphasis on take-home dinners that
resembled the kind mother made, a revolutionary concept in the restaurant industry.
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The company also capitalized on Mr. Sanders' popularity. The colonel always looked the part
of the Southern gentleman, wearing his trademark white suit and black string tie while pitching chicken
or dishing out homespun wisdom on television shows.
Mr. Sanders stayed on as company spokesman, promoting the chicken in folksy television
commercials, until his death in 1980 at the age of 90.
KFC changed hands a few more times. It became a subsidiary of R.J. Reynolds Industries —
later RJR Nabisco — when Heublein sold it in 1982. PepsiCo acquired KFC from RJR Nabisco in 1986
for about $840 million.
In 1997, PepsiCo's three fast-food restaurant chains — KFC, Taco Bell and Pizza Hut — spun
off to form Tricon Global Restaurants Inc. This year, Louisville-based Tricon changed its name to Yum!
Brands Inc.
Is owed much to the vision, energy, and heart of its founder and corporate icon, Colonel
Sanders. Colonel Sanders developed the special cooking process and created the blend of 11 secret
herbs and spices known to the world today as Original Recipe Kentucky Fried Chicken. The Colonel’s
Promise and vision which states the following:
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To Serve Our Valued Customers
Hot, Great Tasting Meals
Great Value for Your Money
Quickly and Accurately
In a Clean, Comfortable Environment
In a Friendly, Courteous Manner
Today, the company continues to maintain rigorous quality control programs to ensure that its
customers around the world enjoy the highest possible quality restaurant services and food
products. KFC employees are trained to deliver this promise to each and every customer that is served.
Corporate Overview
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Type of Restaurant
Its locations can be found operating as free-standing units and kiosks in high-traffic areas. Many KFC
locations are co-located with one or more of Yum Restaurants including Long John Silver's, Taco
Bell, Pizza Hut, or A&W Restaurants. Many of these locations behave like a single restaurant, offering a
single menu with food items from both restaurants.
Franchise Model
More than 20% of the restaurants are company-operated; the remaining 80% are either franchised or
licensed. Franchisees are required to meet certain operating standards as part of their franchise
agreement.
Chief Executive Officer: The CEO has control over departments and employees.
Regional Manager: Monitors and Controls the Area Manager.
Area Manager: The Area Manager drives excellence in day-to-day operations of all company
owned restaurants in the market; trains, coaches, supports managers; plans and sets goals;
focuses on in-store problem solving/process improvement; sets standards; recognizes and
motivates Restaurant Managers, Assistant Managers and Restaurant Teams.
Restaurant General Manager: The Restaurant General Manager is accountable for creating
and running an energetic and valuable work environment, which is committed to serving the
best chicken at the fastest speed and with a smile. The Restaurant General Manager reports
directly to an Area Manager and is accountable for successfully implementing and maintaining
all company policies and procedures in relation to operations, customer service, cash handling,
marketing, purchasing, human resources, health & safety, administration, training and
development.
Assistant Manager: The Assistant Manager is responsible for assisting
the Restaurant General Manager in creating an energetic and valuable
work environment. Assistant Managers are
also responsible for ensuring all company
policies and procedures are followed in
relation to operations, customer service,
cash handling, marketing, purchasing, human resources, health & safety,
administration, training and development
Trainee Manager: Trainee Manager is responsible for assisting the Restaurant
General Manager and Assistant Manager in creating an energetic and valuable
work environment.
Trainee Managers help with day-to-day running of the restaurant, and need to
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ensure that all operations, customer service, cash handling, marketing, purchasing, human
resources, administration and training & development policies are followed.
Customer Service Team Members: Are responsible for working the service areas and ensuring
quality product, service and cleanliness is delivered to all customers at top speed and with a
smile!
Food Service Team Members: Are responsible for putting the crunch in the coating and the
zing in the Zinger…the cook’s main task is to prepare and cook the irresistible KFC products!
The cook must also maintain the cleanliness of the cooking area as well as the quality of
product and speed of preparation.
Business Development
The Development team finds, builds and maintains KFC Restaurants. The Team is set up in four
key areas; network planning, acquisition, store design & construction and estate management. The
team works closely with the Finance team to ensure that the new restaurant is not only optimizing
the customer experience but also driving industry leading returns for the shareholders. They are
also responsible for ensuring KFC’s high standards of convenience, comfort and safety are
maintained in all KFC restaurants and facilities through an extensive annual refurbishment
program.
Finance
Meaningful and insightful analysis of their performance is central to ensuring their continued
business success. In the first instance this requires accurate and timely accounting. Whether it be
paying the suppliers, billing the franchisees, managing cash and asset purchases or paying
salaries for the employees, each member of the Financial Control team is dedicated to ensure all
business transactions are accurately and efficiently recorded. This provides a robust platform for
the Business Control and Commercial teams to analyze results and partner with key stakeholders
to set and drive the strategic direction of the business.
Human Resources
The people’s culture is key to KFC’s success and finding the right people who will thrive in the job
they do is paramount. Their HR Practices are second to none and they thrive on giving employees
the opportunity to grow and develop within the business. Their vision is “To Build a World Class
Organization”, which will be achieved through: Managing Talent, Building People Capability,
Creating Engagement and Driving Organization Effectiveness.
Information Technology
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The IT team at KFC select, develop, implement and maintain professional technology
solutions that support, and enable, the strategic goals of the business. The team supports
restaurants throughout the area with a robust and standard framework of applications and
infrastructure. The team has a passion for the provision of world class solutions and support, from
the in-store technology that enables their stores to sell great chicken, to the timely, relevant and
accurate reporting to the management team that enable clear decisions to be made.
Marketing
The driving force behind the KFC Marketing team is a shared passion to deliver a constant pipeline
of irresistible tasting meals. The process starts with defining consumer needs and exploring new
ways to deliver consumer led innovation. The Marketing team work cross functionally with Product
Excellence and Operations to develop and implement new ideas and with Finance to measure their
contribution to the business. The Marketing team is also the heart of communication, both within
the business and most importantly to the consumers. The multi million pound Marketing budget is
divided between media buying and advertising production to ensure a year round calendar of new
news to drive consumers back to KFC Restaurants again and again.
Operations
The Operations team is the hub of the company, running KFC stores and delivering to the
customers fantastic quality food and outstanding levels of service. The function covers the
leadership, management and evaluation of all the stores and above store support staff. Operations
works alongside all KFC functions to ensure that their restaurants look good, their teams are
motivated and well trained and all of their delicious products are hot and fresh giving all their
customers a reason to return. They partner all other functions to ensure that standards are set and
maintained. Operations is a people business. They recruit, train and coach their teams. They take
pride in providing great career development opportunities for their teams, enabling people who
have joined them for their first job at the age of 16 to progress to become Restaurant General
Managers and Area Managers.
Franchise Operations
The Operational support for the KFC Franchisees is a key focus for their business. They have a
dedicated team working with their Franchise partners on delivering exceptional excellence.
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ERP is a software that consists of multiple applications such as customer relationship management
(CRM) software; inventory control software; accounting applications; sales software; order-tracking
tools; invoicing software; project-management and payroll programs, among others. By
consolidating all these tasks into one over-arching software suite, businesses can dramatically cut
training and maintenance costs, ensure all data is consistent and up-to-date, and reduce software
expenses. It integrates information across the company and eliminates complex links between
computer systems.
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unidentified means are monitored and warned. Therefore the entire business operation can be
safeguarded.
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Improves supply-demand linkage with remote locations and branches in different countries.
Provides a unified customer database usable by all applications.
Improves international operations by supporting a variety of tax structures, invoicing schemes,
multiple currencies, multiple period accounting and languages.
Improves information access and management throughout the enterprise.
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KFC’s Implementation of an ERP System
This Enterprise Resource Planning (ERP) system assists with managing finance, assets, people,
projects, suppliers and the fulfillment and manufacturing processes.
JD Edwards EnterpriseOne 8.10 offers both the foundation and operational components, including:
Financial Management
Technical Foundation
Inventory Management
Asset Management (Equipment, vehicles)
Forecasting
Workforce Management
Time and Expense Management
Procurement
JD Edwards EnterpriseOne 9.0 includes enhancements for financial management, supply chain
management and human resource management. The latest release also includes industry-specific
capabilities for engineering and construction, food and beverage, commercial real estate, industrial
manufacturing and professional services.
The new Web-based system enables quicker generation of inventory, sales and revenue reports –
going from 1 hour to 20 minutes. This helps the KFC management to make more accurate and
quicker decisions in response to demand changes.
The system also enables centralized data repository, XML-based integration, and smooth
integration with other applications. Also leverages JD Edwards EnterpriseOne XML Publisher to
print and distribute formatted documents, results in savings on third-party software licensing costs.
The system supports the company to automate inter-company invoicing and business workflows
between the US Head Office and the rest of the company owned outlets, helping to ensure
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consistency and enhancing operational efficiency. It potentially saves 20 to 30 additional
headcount to process these routine transactions.
References
www.kfc.com
www.yum.com
http://www.oracle.com/us/corporate/press/017527_EN
http://www.gtslb.com/solutions/jdedwards.htm
http://it.toolbox.com/home/search/?r=jd+edwards
http://www.sap.com/index.epx
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