Professional Documents
Culture Documents
Final Draft - Process Control
Final Draft - Process Control
I currently work in the American coffee housing and roaster reserves corporation Starbucks, based in
Seattle, Washington, DC. In the United States, I work. The world's largest chain of coffee shops,
Starbucks, is regarded as the pioneer of the second wave of coffee culture in the United States (Richey
& Ponte, 2021). Currently, there are +25,000 stores spread across five continents. Starbucks has been
successful in attracting customers who become more and more dependent on coffee by taking
advantage of the possibility of a growing customer base. Starbucks increased by 102 percent in the ten
years between 2006 and 2016 by more than doubling the number of stores, from 12,000 to 25,000. (In,
2013). In order to fulfil customer orders, Starbucks offers a variety of services. The telecom service is
one of the most crucial services that businesses and customers rely on. Even though it has been
offering this service for a long time, there are still a lot of issues that result in purchases being
cancelled or, occasionally, paybacks. The kind of issues that have been reported with these services
will be described later, but the process flow diagram below illustrates how it operates. This flowchart
explains how Starbucks' telecom services operate and under what conditions orders are typically
C Request of service
usto Notify customer
Providing
customer
informatio
n
Cm
u se t o m e r S
e rr v i c e
R
epresentative
No
No
No Yes
The flowchart also demonstrates how Starbucks' telecom services operate and what obstacles, such as
a lack of resources, incorrect addresses, and service availability issues, lead to order cancellations and
delays. Coverage interruptions, invoice and billing disputes, changes in service plans and tracking,
and maintaining active and unused phone lines are some other issues that are frequent in any firm. It
Telecommunications tools give customers more alternatives for reserving reservations and finding
menus, enhancing their dining experiences. Smartphones and Wi-Fi are quickly replacing more well
established technologies like fax machines and payment systems in the hosting environment (Kumar,
2004). Some difficulties regarding the lack of services and resources were also covered in this flow
chart. Management must alert customers earlier to the availability of services and maintain sufficient
inventory before working hours in order to resolve such problems. Additionally, it is essential to
exclusively target people in geographical areas where delivery is feasible. Additionally, it is essential
to update information on all platforms used to contact clients about bookings, orders, and services.
Near field, technologies can potentially aid in resolving these problems. The various marketplaces use
a technology called near field communication. A smart card or mobile device transmits a small
transaction using this extremely brief radio signal to a recipient within centimeters. Customers using
smartphones with Near-Field technology can make payments even more quickly and for smaller
amounts than they do with debit cards. If the technology is developed, fast food restaurants, coffee
shops, and sandwich shops in the United States can swiftly accept it as a new form of payment. The
Slow service is another reason for these issues, especially in places that provide a variety of uniquely
crafted coffee combinations. Once more, the answer is a powerful POS (Point of Sales) system
designed for food industry applications, which fulfils the promise of speed (and may preferable be set
up particularly to coffee shops). The best POS systems also guarantee that customer information is not
in danger of being handled without the use of traffic models for forecasting staffing needs, price
adjustment, reports with actionable information, simple tip conciliation, and integration with other
solutions, including accounting software. The limitations of the traditional retail industry were
overcome by the use of numerous Internet technologies, such as cloud computing, and significant
progress was made in this direction. However, the current cloud-based retail POS systems have an
unwavering problem: they are unable to deliver ongoing services if the Internet connections are
As a result, there are plans for the future to introduce new technologies into the company and solicit
candid client feedback in order to improve the quality of services. Additionally, a root cause study of
these issues is required, and the customer service crew should be trained with these causes in mind.
Process Evaluation
Managers must ensure that their staff is trained on the new procedures because the implementation of such
legislation will directly affect the factory's production processes. As a result, you must do everything in your
power to identify and eliminate any significant sources of waste for them.
When they invested in a new roasting facility, administrators understood that production planning was
essential. The project manager provided complete lean manufacturing training to the factory personnel and
even provided them with a notebook to record any potential waste. After further discussion, they identified 95
potential waste sites, which were included into the production planning techniques. One industry where waste
had a great potential was packaging. As a result, the coffee lost its freshness over time. After redesigning and
standardising the package in accordance with lean production practises, it only took 15 minutes to finish after
roasting.
Starbucks aimed to boost its output. The processor's value stream also contained an excessive amount of trash,
which led to high inventory levels. As a result, management was compelled to locate a second location to keep
finished goods. To investigate less expensive alternatives to building a new warehouse, Manex Consulting was
retained. To maximise profit, management teams should identify both internal and external factors that could
affect their companies' performance. A variety of analytical tools can be used to do internal analysis of a firm.
It was shown that Mane's specialised approach contributed to increased warehouse throughput. To support the
new production and warehousing tactics, it was decided to modify JIT, a lean tool. Using value stream
mapping (VSM) to identify high-impact opportunities, carrying out a make-to-order simulation, improving the
line setup/changeover using a Kaizen event, and creating key performance indicators (KPIs) to sustain and
quantify improvement were all crucial parts of the project.
Throughput was increased, setup/changeover times were dramatically cut, a new scheduling system was
implemented, a second warehouse was not required, and all of this was done while still maintaining customer
satisfaction. The organisation was able to accomplish its objectives because of an enhanced flow and
competent members of the production team. The advantages listed below were also added:
Changeover time reduction of 91% (44 to four minutes), which annually led to 80,000 more minutes
available for production, equivalent to additional capacity of $2.6 million per year
A 40% increase in total yearly capacity due to the new scheduling system ($40 million to $56 million,
which includes the $2.6 million above)
Reduction in overtime dollars of about $450,000 and other labor savings at about $350,000 per year
Estimated $1 million annual savings from eliminating the need for an additional warehouse
Enhanced material and information flow, resulting in better inventory management and reduced paperwork
Evaluation of control chart and process metrics
Executive summary
Starbucks has worked to achieve a high level of competitive advantage and has honed a number of abilities
aimed at increasing customer satisfaction. The control chart associated with this report shows how many
applicants there were, which eventually translated into waiting time. The average number of customers who
had to wait out of the nine. The top and lower control limits were neither attained nor exceeded based on the
standard deviation. Since nine consumers were questioned, the capability standards were balanced. The control
chart reveals that, on average, few customers waited for a long time. Clients typically have to wait. Reducing
waiting times was the aim. There ought to have been many interviews conducted throughout the Starbucks era.
The firm expects to cut down on time that will be proficient, qualified, and help sustain a low turnover and
retention rate. We have stringent requirements for waiting times since we are aware that unforeseen events can
occur in regular life. To ensure that the business operates without hiccups, we expect our managers to go
beyond in order to manage clients who will be beneficial to their department. Keeping this in mind, it is
advisable to keep a large number of personnel on hand for emergencies. This particular group provides care to
those who require it constantly. It is not an easy job dealing with mental illness, drugs, and alcohol. In order to
effectively serve the participants, it is necessary to understand how successful professional hiring is. Therefore,
a few queries still exist. Are capability standards met? Are the lower control levels unstable? How would you
know what is being measured? Lastly, one may question what is wrong with the company as a whole. To start
let us discuss about the company. The business is a center for diagnostic rehabilitation. Its main goal is to help
participants change their lifestyles in a way that would enable them to reintegrate into society without the
effects of drugs and alcohol. Along with knowing that they have a support system, they may turn to if
necessary. The issue is that few persons are qualified to carry out the necessary work. The wage rate is another
problem. People believe that given the nature of the labor being done, they should be paid more. People are
unaware of the factors that are taken into account while designing a job and determining a fair and suitable
compensation.
Since the company's inception, market and customer innovation methods have been well developed. The
company's innovativeness is meant to give it the ability to cater to the demands of many market sectors.
Because of these features, Starbucks is a favorite among many customers. The firm's strengths have been
strengthened by the skills. It is crucial for Starbucks to identify its dangers and weaknesses and make the
necessary modifications if it hopes to survive in the future. The business should also take advantage of the
chances present in the surrounding commercial environment.
Recommendation
To further enhance operations, Starbucks has suggested the following: As a result, a wider variety of client
profiles will find the product more appealing. Starbucks customers have been discovered to be well-traveled
connoisseurs who are digitally perceptive, culturally literate, and arts-inclined. Because Starbucks has chosen a
global, mass-marketing strategy, it must take into account and accommodate a variety of characteristics. After
noon, offer a wider variety of roasted coffees; Housekeeping should be improved during busy times. To draw
customers who would otherwise avoid them, produce lighter roast varieties. As a result, Starbucks' coffee has a
"bitter taste." There should be more options for healthy pastries or light meals.
The early Starbucks, according to an analysis, placed a higher focus on product quality and service reliability
than on cost cutting. Starbucks paid a premium price for premium gourmet coffee beans in order to guarantee
that quality and dependability. Starbucks has established a global presence, but is still growing in the United
States. Due to the terrible economy, customers are spending less on extras, which causes rival coffee shops to
offer their gourmet coffee drinks for less money. Market share, productivity, and profitability all need to
increase today. Howard Schultz has made three operational changes in the recent months: According to a press
release, an old-style machine that is low and allows the customer to observe the coffee drink being
manufactured will replace the espresso machines. The baristas ground fresh coffee beans before brewing to
provide the business coffee aroma. Finally yet importantly, Starbucks can keep looking for ways to enhance
the administration of its operations while preserving the caliber of its goods and services.
References
Hu, B., Xie, H., Ma, Y., Wang, J., & Zhang, L.-J. (2018). A robust retail POS system based on block
Richey, L. A., & Ponte, S. (2021). Brand Aid and coffee value chain development
interventions: Is Starbucks working aid out of business? World Development, 143, 105193.
Want, R. (2011). Near field communication. IEEE Pervasive Computing, 10(3), 4–7.
Cha, A. 2012, European financial crisis has ripple effect on US businesses. Web.
Ghani, K., Nayan, S., Ghazali, S., Shafie, L. & Nayan, S. 2010, ‘Critical internal and external factor that affect
firm’s strategic planning’, International Research Journal of Finance and Economics, vol. 3 no 51, pp. 50-57.
Gilligan, C. & Hird, M. 2008, International marketing: strategy and management, Taylor and Francis, New
York.
Grundy, T. 2006, ‘Rethinking and re-inventing Michael Porter’s five forces model’, Strategic Change, vol. 15
no. 5, pp. 213-229.
Kotter, J. & Schlesinger, L. 2008, ‘Choosing strategies for change’, Harvard Business Review, vol. 2, pp. 130-
150.
Larson, R. 2009, Marketing strategy and alliances; analysis of Starbucks Corporation, Liberty University,
New York.
Miller, C. 2009, Will the hardcore Starbucks customer pay more? The chain plans find out. Web.
Srinvasan, L. 2005, Strategic management, the Indian context, PHI Learning PVT, London.
Theodore, S. 2002, Expanding the coffee experience; Starbucks keeps sales brewing with new products,
innovation and global expansion, Beverage Industry, vol. 1, issue 3, pp. 57-62.