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Name-Swahili Rai Batch - Pgdmim4Cm CARDIFF ID - st20215069 Subject - Operations Managemet Assignment Module Leader
Name-Swahili Rai Batch - Pgdmim4Cm CARDIFF ID - st20215069 Subject - Operations Managemet Assignment Module Leader
BATCH- PGDMIM4CM
MODULE LEADER-
PROF.SRIRAM RAMSHANKAR
TABLE OF CONTENTS
2. 10-18
3. 19
4. 20-21
5. 22-23
INTRODUCTION
Starbucks has adopted various operation strategies in their organisation that assist
worldwide operations using a generic approach that emphasises the uniqueness of its
goods.
(Lorenzo, 2018)
BUSINESS STRATEGY OF STARBUCKS: BROAD DIFFERENTIATION
• High Quality
Value Proportion • Uniqueness Of Products
(Merchant, 2014)
Business Operations:
(Chahal, 2020)
OPERATIONAL STRATEGIES USED BY STARBUCKS:
(Lintukangas, 2020)
(Yaqi, 2020)
STRUCTURAL ELEMENTS
possibilities.
(Tordecilla, 2020)
LAYOUT DESIGN
materials.
1. The breve-bar
building lobbies
3. The doppio
of the business
neighbourhood
(Paryani, n.d.)
LOCATION ➢ Starbucks outlets are strategically placed in high-
(Paryani, n.d.)
DECISION ON
CAPACITY
PLANNING
➢ Long-term: total capacity, such as store capacity
demand
(Paryani, n.d.)
MANAGERIAL ELEMENTS
PROCESS DESIGN
QUALITY AND PERFORMANCE
(Paryani, n.d.)
CAPACITY MANAGEMENT
CAPACITY MANAGEMENT:
(Yu-Lee, 2002)
IMPORTANCE OF CAPACITY MANAGEMENT IN AN ORGANISATION
➢ COGS (Cost of Goods Sold): The inventory utilised and the labour
expenses to create items are a significant component of COGS.
(Yu-Lee, 2002)
STARBUCKS’S CAPACITY DECISIONS
VOLUME
Starbucks' large product volume in general, and at the UK
VARIETY
The extensive selection of Starbucks coffee blends, cakes, and
prices are steady, it drops precipitously when prices rise. As a result, large
degrees of diversity boost customer expectation and make the product
range more adaptable.
VARIETY
Because the process is not accessible to the client, there is a
(IvyPanda, 2021)
IN-HOUSE SERVICE
➢ Expertise
➢ Quality considerations
➢ The type of demand
➢ Related costs
➢ The risks connected with outsourcing.
DAILY WORK SHIFT SCHELULING:
In capacity, delivery
The requirement to be speed, or client waiting The impossibility to
close to clients time, becomes a big store services
problem
(Brooks, 2012)
RECOMMENDATIONS
PURPOSE
(Tanner, 2021)
CRITICAL STEPS IN EACH PHASES OF DMAIC THAT AN
ORGANISATION MAY APPLY:
1. Define
2. Measure
4. Improve
5. Control
AIM: Reducing the time it takes for a consumer to get a product from the
moment they make their purchase.
a) Goals:
✓ Reduce waiting time
✓ Improve process efficiency
✓ Increase customer satisfaction
a) Key deliveries:
✓ Reduction in customer wait time
✓ Customers' expectations to be well outlined.
MISSION DECLARATION:
a) Application of DMAIC to
✓ Decrease client wait times by identifying causes, alternatives
to problem, and suggestions.
1. Define:
✓ Starbucks' product complexity makes queuing tedious and confusing.
✓ At Starbucks, there are around 87,000 to 168,000 drink permutations
available; nevertheless, from the perspective of a consumer and in real
life, having that many alternatives is neither good for business nor
pleasant for the customer.
✓ While the actual variety of product offers isn't very huge, the potential
for a customer to mix them adds significant additional complication
and lengthens service time.
The following picture depicts a few drink combinations and the different ways those combinations may be expressed by the client,
understood by the Barista, and communicated back to the customer by the Barista: long form, short form, and several additional.
combinations.
2. Measure:
✓ Examination of queuing system in Starbucks.
✓ The system has a significant number of customers.
✓ Starbucks' product combination complexity (Incidentally, making service time
more consistent is part of Starbucks' lean approach — to make service time
more predictable)
✓ All consumers are self-contained, which means that their decision to utilise the
system is unaffected by the actions of other users.
✓ Furthermore, the impact of a single consumer might be significant, especially if
the customer's purchase was made incorrectly and Starbucks had to correct
the order — this sort of rework adds an excessive load to the system.
3. Analyse:
✓ Modelling the Starbucks Queue: from the assumptions above.
✓ Customers arrive based on an M/M/1 distribution, or can be characterised by a
Poisson model, with heavy periods in the morning, around lunch, and perhaps
into supper time.
✓ M/M/1: Arrival at random, Service at random, and Only One Service Channel
(one cashier).
✓ Assume that an average Starbucks store receives 240 customers in a 10 hour
day (= 24 customers per hour) and that the time it takes to serve a client is 3
minutes (= 60 minutes per hour / 3 minutes between customers= 20
customers on average each hour). The average service time would be 60
minutes per hour divided by 24 clients per hour () = 2.5 minutes each service
required.
Po = 1 – Po = 1 – Po = 1 – Po = 1 – Po
The likelihood of encountering n customers in the system (where n is greater than
zero): Pn = (n) * Po
▪ λ = 20
▪ μ = 24
▪ Average server utilization (ρ) = λ / μ = 20 / 24 = 0.8333
▪ Expected average queue length = E(m) = Average number of customers in
the system (L)= ρ / (1 – ρ) = 0.8333 / 0.1667 = 5
▪ Expected average total time: E(v) = ρ / (λ (1 – ρ)) = 0.833 / (20*(1-0.833)) =
0.833 / (20*0.1667) = 0.833 / 3.334 = 0.25
▪ Expected average waiting time (Wq or E(w)) = E(v) – 1/μ = 0.25 – (1/24)
= 0.2083
▪ The probability of having zero customers in the system: Po = 1 – ρ = 1 –
0.833 = 0.1667 or 16.67%
▪ Expected average waiting time (Wq or E(w)) = E(v) – 1/μ = 0.25 – (1/24)
= 0.2083
▪ The probability of having zero customers in the system: Po = 1 – ρ = 1 – 0.833
= 0.1667 or 16.67%
4. Improve:
✓ Reduce the number of product combinations.
✓ Model each of those combinations' attributes in terms of time, material, information,
steps, and flow.
✓ Focus on the 80/20 – the most ordered combinations first.
✓ Identify the inherent bottlenecks, some understanding of the Theory of Constraints
will be useful.
✓ Service Starbucks' main controllable aspect is time, so focus on that while keeping the
customer experience in mind at all times.
5. Control:
✓ Starbucks must provide adequate training and execution for long-term
improvement. Starbucks follows a training procedure and assigns each
employee to a primary position, with acronyms and names allocated to each
role. For instance, have a look at their "slide" position (Bar 1 might slight to Bar
2 to cover a break, etc, Floater would take care of lobby spins - cleaning, etc).
✓ Make sure the working is efficient: The cashier rings. The cashier's assistant
packs pastries, prepares breakfast sandwiches, fills drip coffee orders, and so
forth. Another person will call down the line (accept orders for those who have
not yet arrived at the pay register, so that beverages and orders can be
combined).
✓ When this is operating well, a customer can receive their order while paying at
the cashier's.
✓ It will result to sustainable improvement of the service time problem and will
decrease the service time which will indeed increase the customer’s
satisfaction.
KEY OPERATIONAL PARAMETERS
Maintenance
Inventory Management
Starbucks maintains its physical assets with
specialised teams of people skilled in facility and Starbucks' inventory management is intertwined
equipment care, as well as third-party Impact. with the company's supply chain and multiple
facilities.
IMPECT OF THE METRIC IN BUSINESS PERFORMANCE
Flow Diagrams
The programme creates a timeline of events that might occur sequentially
or concurrently.
Purpose Application
✓ This is a simple quality tool ✓ Flow charts may be used in
that may be used to analyse any sector to depict
a series of occurrences. complicated processes in an
✓ The flow chart can be easy-to-understand manner.
utilised to comprehend a
complex process.
Histogram
Purpose Application
✓ A histogram is a visual ✓ A histogram can be used
representation of the to compare one object to
frequency of occurrences another. There should
of data along an interval. always be two variables.
One of the reasons cause and effect diagrams are often known as
fishbone diagrams is that the finished diagram resembles a fish's
skeleton, with the fish head to the right and the bones branching off
behind it to the left.
Purpose Application
✓ Typically used for root ✓ It immediately sorts ideas
cause analysis. into useful categories.
✓ Fishbone diagram is used to
✓ A fishbone diagram
detect the causes and effects of
combines the practice of various imperfections, failures, or
brainstorming with a type defects in the business.
of mind map template.
Checklist
Purpose Application
✓ The usage of a checklist can ✓ Compatibility Database
help to enhance efficiency by Validation Testing for
reducing errors. Security Performance
✓ Checklists also give a written Evaluation
record of what was done at
each stage of a project.
The Pareto chart (80-20 rule)
The Pareto chart, a hybrid of a bar and line graph, illustrates individual
values in decreasing order using bars, while the cumulative total is
represented by a line.
Purpose Application
✓ The Pareto chart's objective ✓ Allowing you to identify and
is to emphasise the relative focus your attention on the
significance of several factors that have the
aspects. greatest influence on a
specific area of a process or
system.
Diagram Scatter
Purpose Application
✓ The scatter diagram is the ✓ Scatter diagrams may be
most helpful of the seven used to define links between
quality tools for displaying quality faults and likely
the relationship between two reasons such as
variables, making it excellent environment, activity,
for quality assurance workers personnel, and other factors
attempting to establish as a quality control tool.
cause and effect linkages.
Shewhart Chart
Purpose Application
✓ Using a control chart may ✓ The goal of this quality
save your company time and improvement tool is to assist
money by anticipating quality assurance experts in
process performance, determining whether or not
especially in terms of what a process is stable and
your client or organisation predictable, allowing you to
expects from your end easily identify elements that
product may lead to variances or
faults.
Root cause analysis (RCA) is a method for finding the "root causes" of
issues or occurrences and developing a strategy for dealing with them.
As the fishbone diagram is highly graphic brainstorming tool that may
generate more root cause instances and quickly determine if the root
cause is discovered several times in the same or different causal tree.
It allows to observe all of the reasons at the same time and have excellent
visualisation for communicating concerns to stakeholders.
Steps to find the root cause of a problem using the Fishbone diagram: