PROJECT REPORT

(Quality Management)

A Study on the Continuous Improvement

Process (Kaizen) of Starbucks.

Submitted By –

Submitted To –  Vidhi Tyagi.

 Priya Bhattacharya.
 Prof. Ashwani Kumar.  Palash Rastogi.
 Neha Sharma.
 Navneet Chauhan.
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Table of Contents

Acknowledgement……………………………………………… 2

Introduction/Background of Study……………………… 3

Objective of Our Study………………………………………… 4

Introduction to Starbucks……………………………………. 5

How Kaizen can help Starbucks………………………...… 6

Key Learning……………………………………………………..… 8

References…………………………………………………….……. 8
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ACKNOWLEDGEMENT

We would like to express our sincere gratitude to our Quality Management

Professor, Dr. Ashwani Kumar for giving us the opportunity to understand the
various methods used in the continuous quality improvement process along with
other related knowledge.

We are highly benefitted by this project and we have gained a lot of knowledge
about various implications of theoretical concepts currently used in the Industry.

We consider this opportunity as a big milestone in our career development. We will

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strive to apply obtained knowledge in the best possible way in order to attain our
career objectives. ’

 Vidhi Tyagi.
 Priya Bhattacharya.
 Palash Rastogi.
 Neha Sharma.
 Navneet Chauhan.
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INTRODUCTION/BACKGROUND OF STUDY

Kaizen is an approach to creating continuous improvement based on the idea that small, ongoing
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positive changes can reap major improvements. Kaizen is a compound of two Japanese words
that together translate as "good change" or "improvement," but Kaizen has come to mean
"continuous improvement" through its association with lean methodology. It is based on‘’

cooperation and commitment and stands in contrast to approaches that use radical changes or
top-down edicts to achieve transformation. Kaizen is core to lean manufacturing, or The Toyota
Way. It was developed in the manufacturing sector to lower defects, eliminate waste, boost
productivity, encourage worker purpose and accountability, and promote innovation. ’’

 ‘’ As a broad concept that carries interpretations, it has been adopted in many other
industries including healthcare. It can be applied to any area of business, and even to
personal life.
 Kaizen can use a number of approaches and tools, such as value stream mapping, which
documents, analyzes and improves information or material flows required to produce a
product or service, and Total Quality Management, a management framework that enlists
workers at all levels to focus on quality improvements. ’’

 Regardless of methodology in an organizational setting, the successful use of Kaizen

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rests on gaining support for the approach across the organization. ’’

10 principles of Kaizen
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Kaizen requires enabling the right mindset throughout the company, 10 principles that address
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the Kaizen mindset are as follows:””

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 “Let go of assumptions.”
 “Be proactive about solving problems.”
 “Let go of perfectionism and take an attitude of iterative, adaptive change.”
 “Look for solutions as you find mistakes.”
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 “Create an environment in which everyone feels empowered to contribute.”

 Don't accept the obvious issue; instead, ask "why" five times to get to the root cause.”
‘’

 “Gather information and opinions from multiple people.”

 “Use creativity to find low-cost, small improvements.

Benefits of KAIZEN –

With its focus on gradual improvement, Kaizen can create a gentler approach to change in
contrast to big efforts that may be abandoned due to their tendency to provoke change resistance
and abandonment.”

 Kaizen encourages scrutiny of processes so that mistakes and waste can be reduced.”
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 Inspection needs are lessened, because errors are reduced..

 Employee morale grows, because it engenders a sense of value and purposefulness.”’
 Teamwork increases as employees think beyond the specific issues of their department.”’
 Client focus increases as customer requirements awareness is raised.’’
 Systems are in place to ensure improvements are encouraged both short and long term.”’

OBJECTIVE OF OUR STUDY

To study the continous improvement process of Starbucks and how Starbucks can achieved

quality improvement by using Kaizen.

INTRODUCTION TO STARBUCKS
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Starbucks, a single coffee bean store of US transformed itself to a 30,000 café

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international coffee powerhouse in just 47 years. Starbucks was founded in 1971 in Seattle
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by three college students Jerry Baldwin, Zev Siegl and Gordon Bowker who were inspired
by the coffee roasting entrepreneur Alfred Preet . Starbucks product portfolio is comprises
of coffee , coffee verismo , Tea , Salad , Starbuck Verismo , coffee collectibles like mugs
and t- shirts and almost everything that Starbucks manufactures. Starbucks offers more
87000 combination of drinks and not only famous for its coffee but also for its aroma and
music which play in stores. Under the supervision of its current chairman Howard Schultz,
company opened 3000 stores in just 6 years after he joined the company. However due to
the change in the consumer preference Starbucks is facing the decline in its sale and
planning to shut its 150 underperforming stores across the globe. Recently Starbucks came
in the partnership with Uber Eats for its new strategy i.e. Home Delivery in London. ’

Initiatives taken by Starbucks to improve its customer experience –

 Work has been shifted to after hours and some tasks are now automated.
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 Use of “third place” concept.

 Installation of disposal boxes for complaints and other suggestions in America.
 Home delivery.
 Round table in the stores so that customer might not feel alone.

HOW KAIZEN CAN HELP STARBUCKS

How Kaizen can help Starbucks –

 Get Employees involved - Starbuck has urged its employees to provide their
valuable points for the improvement on the daily basis. Employees need to be
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continually engaged in C.O.P.I. – Continuous Operational Performance

Improvement – to improve the Company’s products, services and business
operations at all levels. ’’

 Gather a list of problem - The major problems which Starbucks is facing are of
change in customer preference and boost traffic in stores. Also, the heavy use of the
company’s online and mobile ordering have generated problems by driving away
some less loyal customers.

 Encourage solutions, then choose the problem - Some solutions which Starbucks
used to increase the traffic and customer preference is reducing the time of delivery,
pre order service and third place concept.
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 Test the solution - Starbucks had seen “strong demand, including repeat business
throughout the day and positive feedback from customers” following a test of its
delivery service in Miami last year.

 Regularly measure and analyze the results – London will be the first European city
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to trial Starbucks Delivers. The pilot scheme will involve a small number of
company-operated stores in the capital, with the potential of rolling the option out to
licensees. ’’
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 If successful, adopt the solution – Starbucks builds on key learnings from past
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delivery pilots and by integrating their ordering technology directly with UberEats,
they have unlocked the ability to bring Starbucks to customers for those times when
they’re not able to come to them. ’’

 Repeat on ongoing basis – Starbucks is planning to bring delivery to branches in

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Boston, Chicago, Los Angeles, New York and Washington D.C. this spring. Globally,
the group already operates Starbucks Delivers in 2,000 stores across 30 cities in
China, as well as branches in Tokyo. ‘’

The company also has delivery initiatives in India, Hong Kong, Singapore, Indonesia,
Vietnam, Mexico, Colombia and Chile. ’’

KEY LEARNINGS

 Kaizen has been used by Starbucks as urged employees for their valuable feedbacks also ,
serves all the orders in just 5 minutes and it has reduced the waiting time also by
introducing the feature of pre order.
 About the company and delivery process.

 How kaizen is an effective tool for continuous improvement process.

REFRENCES

 https://www.businessinsider.in/Starbucks-still-hasnt-solved-a-growing-

problem/articleshow/69050024.cms
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 https://www.cnbc.com/2019/01/07/starbucks-cafes-coffee-business.html ’

 https://www.forbes.com/sites/greatspeculations/2016/09/19/lets-look-at-starbucks-

growth-strategy/#4c1334cf3d71

 https://en.wikipedia.org/wiki/Starbucks

 https://www.businessinsider.in/Starbucks-still-needs-to-fix-its-biggest-

problem/articleshow/62657760.cms

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