A Project On The Service Time Variation Repaired)

A
PROJECT ON
THE
SERVICE TIME
VARIATION IN
CAFÉ COFFEE
DAY
A project on the service time variation
Contents
1. Certificate from faculty guide Page 2
2. Certificate from corporate guide Page 3
3. Declaration Page 4
4. Acknowledgement Page 5
5. Executive summary Page 6-8
6. Introduction Page 9-15
7. Review of literature Page 16-18
8. Project body Page 19-22
9. Research methodology Page 23-26
10. Analysis Page 27-34
11. Recommendation and conclusion Page 35-39
12. Bibliography Page 40
Page 1
CERTIFICATE FROM THE faculty GUIDE
This is to certify that work entitled Project title “A project on the service time variation in Café coffee day” is
done by the student name Sushant under my guidance and supervision for the partial fulfillment of degree of
PGPM, Institute of public enterprise.
To the best of my knowledge and belief the thesis:
 Embodies the work of the candidate himself.

 Has duly been completed.
 Fulfills the requirements of the rules and regulations relating to the summer internship of the institute.
 Is up-to the standard both in respect to contents and language for being referred to the examiner.
Signature of the Faculty Guide
Name of faculty guide
Prof. K. Ramesh
Date
Page 2
CERTIFICATE FROM THE corporate GUIDE
This is to certify that work entitled Project title “A project on the service time variation in Café coffee day” is
done by the student name Sushant under my guidance and supervision for the partial fulfillment of degree of
PGPM, Institute of public enterprise.
To the best of my knowledge and belief the thesis:
 Embodies the work of the candidate himself.

 Has duly been completed.
 Fulfills the requirements of the rules and regulations relating to the summer internship of the institute.
 Is up-to the standard both in respect to contents and language for being referred to the examiner.
Signature of the Corporate Guide
Name of corporate guide
Mr. SHEETAL PATIL
Date
Page 3
DECLARATION
I Sushant, a student of Institute of public enterprise, do here by declare that the project report
“A project on service time variation at Café coffee day” is the product of my own knowledge and
effort. No part of this report has been submitted to anyone at time before. It is presented for the
partial fulfillment of PGPM 2009-11.
SUSHANT
Date:
ACKNOWLEDGEMENT
I acknowledge my indebtness to our Director Prof. R.K Mishra for providing
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the opportunity to work on this topic. I would like to thank my company guide
Mr.Sheetal patil (Regional manager, Café coffee day, A.P region), for giving
me the opportunity to work in their esteemed organization, and helping me to
complete the project in a successful manner.
I am obliged to my Faculty guide Prof. K Ramesh for providing time, effort
and most of all his patience in helping me for preparing this project report. I
am also thankful to all the faculty members of our college for their kind
cooperation with me to write this report.
I feel immense pleasure to express my deep sense of gratitude to Mr. Sheetal
patil(Regional manager, Café coffee day), as an external guide whose expert
guidance and deep knowledge helped me to complete my project in this short
span of time. I am also thankful to all the staff members of Café coffee day,
Begumpet, Hyderabad. Who extended their hands and cooperation directly or
indirectly for successful completion of the training programme.
Last but not least I am thankful to my family members and friends for
providing me moral support to do this project successfully.
DATE SUSHANT
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EXECUTIVE SUMMARY
We often hear that everyone talks about the weather but no one is
prepared to do anything about it. Until recently the same was true about
Indian business and quality. However, after the opening of Indian
markets for international companies and stiff competition, the stress on
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the quality control and total quality management (TQM) has gained
attention.
In addition, the rapidly growing circle of applications of TQM has
expanded from manufacturing industries to service industries such as
retail, healthcare etc.
In retail sector, the quality of service provided to customers is as equally
important as the quality of product especially in food and beverage
retailing, the service becomes an inherent and important part of the
product offered.
In the F & B retailing, it is the experience that is sold and not the
commodity alone. To gain and retain the customers it is very important
that a retailer should provide a quality experience. This quality
experience depends on the quality product and quality service extended
to the customers.
The project objective is to identify the variations in serving time for
orders, and to check that the process is in control or out of control.
The unit of test is Café coffee day outlet, Begumpet, Hyderabad.
The project report contains six chapters.
The report begins with the introduction part which gives a brief idea
regarding the coffee café segment, about the company, outlet where the
project has been done etc. in addition to above it also contains the
objectives and limitations of preparing this management thesis.
The second chapter deals with the review of literature which has a
collection of one article on the service quality management. It elaborates
well on the concept of service quality and fine points involving service
quality management.
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The third chapter deals with the project body. It explains the service
procedure and time involved in the process of service.
It also details the complexities involved in the process.
The fourth chapter deals with research methodology adapted in

preparing the report. It covers sampling procedure, type of data used and
the collection method in a descriptive way.
The fifth chapter is the data analysis through different quality

management techniques as X bar charts, R charts, fishbone diagram and
Pareto charts of data collected from sampling.
The sixth chapter deals with the conclusion and recommendation part
which is very much important after analysis is made. It covers an in-
depth study of the analysis part of the thesis.
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A project on the service time

variation
Page 9
COMPANY AND SECTOR
Café coffee day is basically a retail coffee shop chain. It has got more than 920 outlets in India
and abroad. In India, CCD is the pioneer in this sector and has enjoyed the benefit of first mover
in the market. But eventually this sector has seen steady rise in competition. The competition
consists of companies from India as well as abroad. Some of the multinational companies that
are main competitors are Barista, Café mocha, Costa coffee etc.
The Coffee Café Industry
The Coffee Café industry is currently one of the biggest and fastest growing
sectors in business. The industry consists of a mix of individual cafés, hotel cafés and retail café
chains.
Individual Cafés
The main bulk of revenue is earned by small, individual cafés, run mostly by
families and friends. It is a relatively unorganized sector. There are millions of such cafés
around the world, and they provide customers with a homely, casual experience. The bulk of
these cafés are mainly in Europe, where every little town or village has local cafés, where people
gather together for a conversation over coffee, or just to be alone with their thoughts.
These cafés have been the birthplace and sanctuary for various creative minds, revolutionaries
and thinkers of our time. The most recent example is the author J.K. Rowling, who has written
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most of the Harry Potter series of books, sitting at her local café. These cafés set themselves
apart from retail chain cafés and hotel cafés because they provide customers with a homely,
classic appeal, which cannot be emulated.
Hotel Cafés:
Ever since the popularization of coffee, hotels all over the world started opening24-hour coffee
shops where visitors to the hotel could walk in for a cup of coffee and some food at any time.
These coffeehouses are extremely important, because they provide international visitors to the
hotel with a universal drink- coffee. Any customer can walk into any major hotel in the world,
and enter the coffeehouse, and know what to expect. These cafés are not really major players in
the coffee café industry, but rather provide supplementary services to the hotel industry.
Retail Café Chains:
The last, and the most organized sector in the coffee café industry, is the retail café chain. Off
late, these chains have become extremely popular and are growing at an ever-increasing pace.
These retail chains have work with an organized structure of man, material and money. The
work on developing a recognized brand consistent to all their outlets, which customers can
easily relate to, wherever they go. They provide customers with a standardized level of service
and quality at each of their outlets.
CAFE COFFEE DAY
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ABOUT CAFÉ COFFEE DAY
Café Coffee Day is a chain of coffee shops in India having its headquarters in Chikkamagaluru,
Karnataka.[2] A division of Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), it is
commonly known as Coffee Day or CCD. It opened its first cafe in 1996 on Brigade Road in
Bangalore, and today has the largest cafe retail chain in India – with 937 cafes in 135 cities [3].
Large number of coffee day cafes are located in Bangalore. The cafe chain has had much
success riding, and to some extent creating, the cafe culture wave that swept across metropolitan
India following strong economic growth resulting in an increase in youth spending power. It has
even tied up with WorldSpace and Microsense to enable its cafes with satellite radio and Wi-Fi,
respectively. Its first Wi-Fi cafe was opened on Lavelle Road, Bangalore.
Café Coffee Day sources coffee from 5,000 acres (2,023 ha) of coffee estates, the second largest
in Asia, that is owned by a sister concern and from 11,000 small growers. It is one of India’s
leading coffee exporters, with clients across the USA, Middle East, Europe and Japan.
With its roots in Chikmagalur, the home to some of the best Indian coffees, Coffee Day has its
business spanning the entire value chain of coffee consumption in India. Its different divisions
include: Coffee Day Fresh 'n' Ground (which owns 450 coffee bean and powder retail outlets),
Coffee Day Square (high level coffee bar. one in bangalore.). Coffee Day Xpress (which owns
730 Coffee Day kiosks), Coffee Day Takeaway (which owns 9000 vending machines), Coffee
Day Exports and Coffee Day Perfect (FMCG Packaged Coffee) division. It is entering the
European market by opening two Cafés in Austria as well, making forays into Pakistan and
Germany to set up cafes abroad. The strategy CCD has adapted is to place a cafe in every
possible location where some business can be generated. So in Bangalore, in the main shopping
district, there are six outlets in a 2 km (1 mi) radius and over 140 cafes in Bangalore alone.
Another model which CCD has adapted is to be present in educational institutions and corporate
campuses either in the form of detailed cafes or its economical model of CCD express.
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These innovative strategies have ensured that the competition is at bay and ensured CCD's
dominance in the Indian market though many of its outlets are incurring losses.
Cafe Coffee Day competitors include but are not limited to
 Barista
 Cafe Mocha
 Costa Coffee
 The Coffee Bean & Tea Leaf
CAFÉ COFFEE DAY IN THE PAST 12 YEARS:
1996
1st café
2001
14 cafés in 6 cities
2008
607 cafés across 98cities, and in
2010
917 cafés across India and abroad
POSITIONING
Café Coffee Day, at its inception in 1996 was the vanguard of a café culture in India. At a time
when the country was growing well economically and young India enjoyed higher spending
power, CCD as it is popularly known, started to set up the first retail chain of coffee bars. It
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broke new ground in 1999 when the entire market grew phenomenally with the entry of new
players.
From the beginning, it positioned itself as being a coffee bar and has maintained that positioning
for a long time now. For a consumer, CCD represents a “fun place” where one can go with a
whole bunch of friends at any time of the day and have a good time, over coffee.
In 2002, Café Coffee Day underwent a rebranding exercise through a change in its logo. The
earlier logo was a simple red square with a white streak running across, and ‘Coffee Day’
written at the bottom. At this stage, CCD was still perceived as a South Indian coffee joint
similar to the Coffee House in Kolkata, a place where intellectuals meet and spend their time
discussing issues. CCD saw a latent market in youngsters, who were increasingly looking for a
place to spend time with friends and have fun. It then created an umbrella mother brand, Coffee
Day and four sub brands to represent the various activities. The logo then incorporated red,
white and green colors, a larger font and emphasis on the word ‘Café’. According to the
company, red signifies leadership and passion and the white swirl stands for purity of purpose
and the feel of coffee. The new color green endorsed the long heritage of CCD in growing
coffee.
Café Coffee Day is known to experiment with different café formats. They have been:
· Music cafés
· Books cafés
· Highway cafés
· Lounge cafés
· Garden cafés
· Cyber cafés
The most recent addition has been lounge cafes. These cater to a more niche segment than the
general consumer segment of CCD. The age group of 20-29 would be more able to afford a
lounge setting than the group of 15-19.
Objective
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1. To study the service procedure followed in the outlets in café coffee day.
2. Complications involved in the process.
3. To check for the variations (random and assignable) in the operations.
4. To know the part of process where the variation is occurring and the cause.
5. To recommend the changes that can improve the operations and reduce the variation in
service, if any.
Limitations
1. The study is restricted to one outlet and due to different formats of outlets cannot be
generalized.
2. Very big orders were left to make the data collection more random.
3. Data was collected only for 20 days, thus sample size was not adequate for analysis on
each item in the menu.
4. Only 50 orders were taken per day.
Unit of test
The test unit is café coffee day outlet at Begumpet. Some of the details of the outlet are:
The outlet is located at a prime location having advantage of situated in a complex with several
big offices. It also has got a theatre opposite to it.
The average monthly target approximately ranges between Rs.17,000 – 20,000 on an average.
The café consists of 55 cover. The staff consists of one assistant manager and five team
members.
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Literature review
Improving the quality of customer service
Customers perception of the quality of the service provided by the retailers depends upon the
level of satisfaction they experience in the process of shopping (oliver,1981). If customers
experience higher levels of service then expected overtime, then they will perceive the retailer as
offering a high quality of service. If the level of service is lower than expected overtime, the
retailer will be perceived as offering a lower service quality (bell et al.,1999).
Servqual – a model for improving service quality
The servqual model has been widely applied as a means to measure service quality
(Parasuraman,et al.,1985). In this model, the ‘service gap’ – that is, the difference between the
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level of service quality which customers expect and the level they experience- is the result of
four main criteria.
These are:
1. The gap between what customers expect and what managers think they expect- the
knowledge gap.
2. The gap between what managers think customers expect and the standards of the service
they specify- the standards gap.
3. The gap between standards of service set by managers and standards service delivered –
the delivery gap.
4. The gap between the standards of service delivered and those communicated to the
customers(which create the customers’ initial expectations of the level of service which
they will experience) – the communication gap
The size of the service gap- between perceived and experienced quality of service – affects the
level of satisfaction experienced by customers of a retail organization.
According o this model, retailers can improve their service quality – and hence improve the
level of customer satisfaction, by closing or reducing the four gaps. This theory has been
criticized, not least because it:
 oversimplifies the relationship between customer and service provider;
 Does not allow for the relationship between customer and service provider which is an
integral part of the service experience.
However, SERQUAL is a useful model for retail practitioners because it provides an easy to
use framework for improving their customer service and overall service quality.
Closing the knowledge gap
Retail managers very often overlook this potential gap because the measure of meeting
customer needs lies directly in successful sales figures. The fluctuation in the sales figure is
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affected by the changing expectations of the customers. These are affected by a range of
factors, including:
 The customers’ experience of the retailer over time- even if service quality is
meticulously maintained over time, customers will become used to the level of service
quality on offer. It will become the norm. The route to customer satisfaction is to raise the
experience of shopping above the expectation of the experience of shopping, to maintain
a state of customer delight (Piercy, 1997) with the retail offering.
 Their perception of the level of product and service quality offered by the retailer relative
to those of competing organizations. Service quality is very frequently used by retailers
as a means of differentiating their retail offer from those of their competitors.
Closing the standards gap
To close the standards gap, therefore, there has to be a commitment from the senior management
team towards service quality. Only then will the human, financial and material resources be
made available for the development of a formal quality system. The quality system should
establish the formal processes for setting service quality objectives, and should establish the
roles of staff within the processes.
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Operations procedure:
The operation at the café coffee day outlet can be divided into two parts:
1. In the service area

2. Inside the counter/ preparation of the ordered items
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The procedure is explained in the following chart:
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customer is received
attended
order is taken
KOT is placed at the counter
KOT is generated through billingThis project is concerned

system
with the time involved in
this portion of process.
order preparation
ready to serve dish is placed at pick- up counter
order is picked up and

served
clearance of the table and bill payment
In this project, the objective is to find the variation in the service time involved in the process
and we have considered the service time as the time starting from the order taken to the step
order is served. Quality means conformance to requirements and meeting the expectations of the
customers is central essence of TQM (total quality management). Variation (difference between
two serving times) is referred as the enemy of quality.
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The objective of this project is to check for the variability in the service time of an outlet,
measuring the variation and analyze the data to provide inputs for informed decision making.
Stepwise details for better understanding of the process:
ORDER TAKING & PLACING KOT
1. Order taken: at this point the time is noted down. This step consists of activities taking
the order, and generation of KOT from billing system (kitchen order ticket).
2. Once the order is taken it is placed on the counter for barking, the barker barks the order
and the members involved in the preparation acknowledge it.
3. The items on the menu are broadly divided into three : a) food section b) cold section
c) hot section (see illustration).
ORDER PREPARATION
1. On receiving the order all the sections start preparation for the items concerned to their
section.
2. SOP’s: there are sop’s given for all the items and the procedures are well defined.
3. There are time limits mentioned for all the steps in the preparation.
PICKING UP AND SERVING THE ORDER
Once the order is ready it is placed on the counter to be picked up by the team members in the
service area. The efficiency of the team members is an important factor in this step.
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Methodology:
Methodology is defined as
1. "The analysis of the principles of methods, rules, and postulates employed by a

discipline" or
2. "The development of methods, to be applied within a discipline."
3. "A particular procedure or set of procedures.”
Methodology refers to more than a simple set of methods; rather it refers to the rationale and the
philosophical assumptions that underlie a particular study.
The study was conducted in café coffee day, Begumpet outlet. It is a premium outlet with
students, upper middle class and office employees as its main customers. The data was collected
for 20 days of sample size 50 per day.
Data collection
Measurement instrument: KOT’s with order taken time mentioned on it and order serving time
recorded once order is served.
Method:
a) Collection of KOT’s and recording the time interval in service.

b) Recording of time interval involved in service by third person to remove the effect of
project work/observation .
Sources of data
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Primary data: the data was collected by personally being there and recording and also by KOT
time.
Secondary data: it was collected through various sources mentioned in the bibliography.
Sampling
Sample size: total sample size is 50 orders per day for 22 days.
Sample procedure: random sampling
Sample area: café coffee day outlet, Begumpet, Hyderabad
Survey methodology
The process involved in the project is broadly explained below:
Phase 1: collection of data

a) The time interval involved was collected directly from the observation at the café.
Phase 2: standardization of the data is done by using the tools like pie charts, tables etc.
Phase 3: analysis of data
Analysis of data is done by making
a) X bar chart,
b) R bar chart,
c) Pareto chart and
d) Fishbone diagram.
Phase 4: INTERPRETATION
The key findings and recommendation would be provided at the end of the project in the form of
a presentation and a report containing following elements:
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a) Changes to improve the service time variation/ get more precise and near to the standard
time.
b) A detailed report of the project will be submitted to the organization at the completion of
the project. The conclusions of the project can be utilized to enhance the overall service
quality by reducing variation in the service time.
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STATISTICAL PROCESS CONTROL
X bar charts
The essence of statistical process control is to identify a parameter that is easy to

measure and whose value is important for the quality of process output, plot it in
such a way that we can recognize non random variations, and decide when to make
adjustments to a process. These plots are known generically as control charts. X
bar charts are the control charts for process means. The control limits in X bar
charts place bounds on the amount of variability we are willing to tolerate in our
sample means. In X bar charts we have
a) A center line X bar-bar or X grand mean

b) An upper control limit (UCL) line, with value = grand mean + 3σ
c) A lower control limit (LCL) line, with value = grand mean - 3σ
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The data containing the serving time on 22 days:
mean of
Date sale total time sample mean means range R-
5/10/201
0 15490 325 6.5 7.52 7 8.5
5/11/201
0 12854 264 5.28 7
5/12/201
0 13230 287 5.74 8
5/13/201
0 14767 309 6.01 9
5/14/201
0 16691 328 6.56 8
5/15/201
0 25558 550 11 11
5/16/201
0 16772 315 6.3 6
5/17/201
0 16645 346 6.92 10
5/18/201
0 21150 600 12 9
5/19/201
0 12574 347 6.94 8
5/20/201
0 13292 390 7.8 7
5/21/201
0 17572 376 7.52 9
5/22/201
0 20588 540 10.8 10
5/23/201
0 16516 348 6.98 12
5/24/201
0 13277 267 5.34 7
5/25/201
0 12145 288 5.76 6
5/26/201
0 18396 385 7.7 10
5/27/201
0 14160 327 6.54 6
5/28/201
0 16058 370 7.4 8
5/29/201
0 18435 396 7.92 10
5/30/201
0 21112 546 10.8 10
5/31/201
0 16534 386 7.72 9
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8290 165.53 187
This data was gathered in the form of initial time and finish time for each order
for 50 orders randomly every day for 22 days and then, the time interval was
derived for each order and mean for each day order intervals were found.
As we don’t know the mean and standard deviation, we found grand mean and
the control limits for the X bar chart from the following:
Grand mean for several samples of same size
X bar/bar = Σ x /n*k = Σ x bar/ k
Where
 X bar/ bar = grand mean
 Σ x = sum of all the observation
 Σ x bar = sum of sample means
 n = number of observations in each sample
 k = number of samples taken
Grand mean = Σ x bar / k
= 165.53/22 = 7.52 (all the values from the above data)
Control limits for the X bar chart
Upper control limit (UCL) = grand X + A2 Rbar = 7.52 + 0.153 (8.5) = 8.8205
(Value of A2 from appendix)
Lower control limits (LCL) = grand X – A2 Rbar = 7.52 – 0.153(8.5) = 6.219
The following is the X bar chart of the service time at Café coffee day.
As we plot the CL, UCL and LCL and the daily values of the X bar, a quick glance at the chart
shows us that on the dates 15/05/10, 18/05/10, 22/05/10 and 30/05/10 the average serving time
jumps above the UCL(upper control limit).
To check whether the cause for this variation is assignable or random, close investigation shows
that there is some relation between sales on that particular day and the delay in service.
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The following is the comparative chart:
total sample
date sale time mean Sale mean of means
5/10/2010 15490 325 6.5 15490 7.52
5/11/2010 12854 264 5.28 12854
5/12/2010 13230 287 5.74 13230
5/13/2010 14767 309 6.01 14767
5/14/2010 16691 328 6.56 16691
5/15/2010 25558 550 11 25558
5/16/2010 16772 315 6.3 16772
5/17/2010 16645 346 6.92 16645
5/18/2010 21150 600 12 21150
5/19/2010 12574 347 6.94 12574
5/20/2010 13292 390 7.8 13292
5/21/2010 17572 376 7.52 17572
5/22/2010 20588 540 10.8 20558
5/23/2010 16516 348 6.98 16516
5/24/2010 13277 267 5.34 13277
5/25/2010 12145 288 5.76 12145
5/26/2010 18396 385 7.7 18396
5/27/2010 14160 327 6.54 14160
5/28/2010 16058 370 7.4 16058
5/29/2010 18435 396 7.92 18435
5/30/2010 21112 546 10.8 21112
5/31/2010 16534 386 7.72 16534
8290 165.53
Now we can see clearly that whenever the sale is more it is affecting the service time and the
order is served late. Now we will try this same by excluding the outliers or the values above the
UCL.
Leaving the outliers
Grand mean = 6.718
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R bar = 8.17
A2 = 0.153
LCL = 5.468
UCL = 7.968
The following X bar chart shows that after removing the outliers the process is well under
control.
X bar chart after removing the outliers
R bar chart
(Control chart for process variability)
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The control limits in the x bar charts place bounds on the amount of variability we are willing to
tolerate in our sample means. In R charts, we plot the values of the sample ranges for each of the
samples. The center line for R charts is placed at R bar.
UCL (upper control limit) = R bar (D4) where D4 = 1+3 d3/d2 = 12.535
LCL (lower control limit) = R bar (D3) where D3 = 1 – d3/d2 = 3.758

(Values of R bar and n are taken from the data given above.)
The values of D4 and D3 can be taken from appendix of any operation research book.
The following is the R bar chart for the process variability
As we can see that the variability in the service time is in-control, still if we observe keenly we
find that the variability may be unacceptable if compared to the competitors (that is not a part of
this study.)
TOTAL QUALITY MANAGEMENT
Statistical process control is very useful for the continuous processes for example, mass
production facilities. However, in a retail outlet the operation is very uncertain and the process is
not as fixed as mass production facilities. This brings TQM (total quality management) into
picture. It also matches the uncertain nature of the business with the continuous improvement
approach.
TQM is a set of approaches that enable the managers of complex systems to match the firm’s
products to customer’s expectations. Here in this project we will use TQM concepts to see the
main causes to delay in the service and the approaches to improve the situation
FISHBONE DIAGRAM
(Identifying and grouping causes)
The TQM approach to any business starts with the realization that all errors, defects, and
problems have causes and there is only finite numbers of these. The fishbone diagram takes an
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unstructured list of factors that contribute to delayed service and organizes that list in two major
ways. First, it gathers the factors into logical groups. And then, within the groups, it indicates
how the various factors feed into one another in cause and effect relationship.
The following is a fishbone diagram
FISHBONE DIAGRAM
CUSTOMERS inside counter operations equipment
Sudden breakdown
low awareness less skilled team members

Scheduled maintenance preventive maintenance
no time constraints for order prep.
Low efficiency
No audit or checking for service time
Less number of team members

Less no.
Old technology
Less skilled TM skills
Recruitment
Less no of TM process training
Wrong order commitment
no serving time check provision

Bonus
Service area operations team members
Compensation
In TQM, we distinguish between vital few and trivial many. So that, we can solve the vital
problem first, and then the next vital one, it is a continuous process of improvement.
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To identify the vital problems, we use Pareto chart. A Pareto chart is a bar graph showing
groups of error causes arranged by their frequencies of occurrences. These charts are named
after Vilfredo Pareto, an Italian economist.
PARETO CHART
80
70
60
50
40
30
20
10
Column2
0
S S S S S
ION ION ENT ER B ER
T T M
RA RA PM ST
O EM
PE PE QUI U M
C
R
O
A
O E
E AM
E E T
UNT AR
E
CO VI
C
R
SE
As from the Pareto chart, the data shows that 60% of delay can be attributed to inside the
counter preparation, 20% to service area ops and rest are not significant now. Thus in the TQM
parlance, as we say slay the dragon first, we can concentrate on the inside counter part of the
operation first.
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Conclusion and recommendation
This research was conducted at the café coffee day outlet, Begumpet, Hyderabad. As we
did chart for statistical process control and used concepts of TQM. We got many
interesting insights.
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X bar chart
From X bar chart we saw clearly that on the days when sale was average and more than
other days (I would not say it high for a café with seating of 55covers and 6 TM and 1
AM ), the average serving time was outside the UCL. It is an assignable cause for
variation and can be rectified. The recommendations are for the two vital causes that are
identified by the Pareto chart and fishbone diagram.
The recommendation for reducing the service time variation

1. Introduction of service time sheets for customers: these sheets will be given to
every customer at the moment the order is taken. These sheets will show the time
that a standard order should take and based on the statistical calculations on an
average the standard deviation that may happen; it will also show minimum time
and max time an order should take. We can make this format interesting by
inserting concepts like before time, well in time, average etc. (a sample sheet is
with presentation.)
2. Introduction of service time record in the billing system itself: here in coffee day
when an order comes to the counter it gets fed into the system, now if we can
introduce a automated barking system in the three sections (cold, hot, food) by the
means of LED boards to display the orders it will make the recording of service
time possible. Once the order is prepared and placed at the counter the button on
the board is to be pressed to receive the new order from the system. At the same
time we can also introduce software that will give the summary of performance at
the end of the day at the café level, regional and head office level. This kind of a
control system will certainly improve the service time.
R bar chart
From R bar chart we see that the process variation is well under control but here also it
has to be compared with the competitors in the same segment (doesn’t come under the
project) to realize the difference or we can also set target for lower variation to improve
the quality more and to improve the preciseness.
Page 38
Future developments
For further improvement in the service we can utilize the findings of the fish bone
diagram and the R bar chart. We can identify the next vital problem once the first
one is completed. From R bar chart the process variations can be identified and a
better
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Page 40
The list of the books and the websites referred are:
1. statistics for management, Richard l Levin, D.S Rubin

2. principles of retailing, J fernie
3. www.scribd.com
4. www.cafecoffeeday.com
5. www.google.com
Page 41

A Project On The Service Time Variation Repaired)

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CERTIFICATE FROM THE faculty GUIDE

To the best of my knowledge and belief the thesis:

 Embodies the work of the candidate himself.

Signature of the Faculty Guide

Name of faculty guide

CERTIFICATE FROM THE corporate GUIDE

To the best of my knowledge and belief the thesis:

 Embodies the work of the candidate himself.

Signature of the Corporate Guide

Name of corporate guide

Mr. SHEETAL PATIL

The fourth chapter deals with research methodology adapted in

The fifth chapter is the data analysis through different quality

A project on the service time

COMPANY AND SECTOR

The Coffee Café Industry

Retail Café Chains:

CAFE COFFEE DAY

ABOUT CAFÉ COFFEE DAY

Cafe Coffee Day competitors include but are not limited to

CAFÉ COFFEE DAY IN THE PAST 12 YEARS:

Improving the quality of customer service

Servqual – a model for improving service quality

Closing the knowledge gap

Closing the standards gap

1. In the service area

The procedure is explained in the following chart:

KOT is placed at the counter

KOT is generated through billingThis project is concerned

ready to serve dish is placed at pick- up counter

order is picked up and

clearance of the table and bill payment

Stepwise details for better understanding of the process:

ORDER TAKING & PLACING KOT

PICKING UP AND SERVING THE ORDER

1. "The analysis of the principles of methods, rules, and postulates employed by a

a) Collection of KOT’s and recording the time interval in service.

Sample procedure: random sampling

Sample area: café coffee day outlet, Begumpet, Hyderabad

The process involved in the project is broadly explained below:

Phase 1: collection of data

Phase 3: analysis of data

Analysis of data is done by making

STATISTICAL PROCESS CONTROL

The essence of statistical process control is to identify a parameter that is easy to

a) A center line X bar-bar or X grand mean

The data containing the serving time on 22 days:

8290 165.53 187

Grand mean for several samples of same size

X bar/bar = Σ x /n*k = Σ x bar/ k

Grand mean = Σ x bar / k

= 165.53/22 = 7.52 (all the values from the above data)

Control limits for the X bar chart

Lower control limits (LCL) = grand X – A2 Rbar = 7.52 – 0.153(8.5) = 6.219

The following is the comparative chart:

Leaving the outliers

Grand mean = 6.718

X bar chart after removing the outliers

(Control chart for process variability)

LCL (lower control limit) = R bar (D3) where D3 = 1 – d3/d2 = 3.758

The following is the R bar chart for the process variability