Assessment 1 Process Improvement Plan for Wild Dog Coffee

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1 Assessment 1: Process Improvement Plan for Wild Dog Coffee Christine Pritchett MBA-FPX5016 Operations Mgmt for Leaders Capella University Randell Orner June 13, 2023

2 Wild Dog Coffee - Procedures for Making an Espresso Current Performance status Although the method used by Wild Dog Coffee to make espresso drinks is efficient, there remains room for improvement. The newest site can outperform others in its early phases by improving the current procedure. The facility must have a whole crew during peak hours to reduce production time. This entails assuring the presence of three to four people who are solely responsible for preparing beverages, as well as maybe more baristas to assist at busy locations like the counter or drive-thru. More staff will allow workers to concentrate on specific orders, giving each client the attention they need and speeding up the process. Wild Dog Coffee follows a traditional coffee house approach in its preparation process, similar to many others. However, for the new location to succeed, it is crucial to have a well- defined, comprehensible, and flawlessly executed process. The ultimate goal of this process is to deliver accurately prepared orders to each customer in a manner that makes them feel exceptionally valued. The procedure emphasizes repeatedly and in different ways that order accuracy is paramount for achieving success. Rework and delays in the complete delivery process can result from a single faulty delivery (Krajewski et al., 2019) Process 1. Welcome the client as they enter the Wild Dog location. 2. Once the client reaches the order placement point, greet them again: "Welcome to Wild Dog Coffee! My name is [insert name]. I hope you are doing great. What beverage can I get for you?" 3. After the customer orders their beverage, the staff member should suggest an upsell by recommending extra things like cookies or a wrap. 4. Based on the beverage size requested, the barista should use the appropriate size of hot beverage cup from the range available at Wild Dog Coffee, which varies from 8 to 20 fluid ounces. 5. Attach a printed order label to the cup to guarantee order correctness. 6. The preparation barista should carefully go over each item before initialing the label after printing and attaching it. This will ensure that suitable sweeteners, creams, or syrups have been added to that particular order. 7. The barista must add one drawn shot of espresso for every 4 ounces of the requested beverage after choosing the right cup size and adding the necessary sweeteners, creams, or syrups. For example:  For an 8-ounce espresso, use two pulled espresso shots.  For a 16-ounce espresso beverage, use four pulled espresso shots.

3 Furthermore, it is essential to incorporate a specific amount of filtered hot water into the espresso beverages immediately after filling the customer's cup with pulled espresso shots. The quantity of filtered hot water added should be based on the size of the requested espresso beverage.  An 8-ounce cup receives 4 ounces of filtered hot water.  A 12-ounce cup receives 6 ounces of filtered hot water.  A 16-ounce cup receives 8 ounces of filtered hot water.  A 20-ounce cup receives 10 ounces of filtered hot water. After adding the filtered hot water, the requested sweeteners, creamer, syrups, and whipped toppings should be added to the beverage until it reaches the designated FILL Line. Before serving the beverage to the customer, securely place a lid on the cup to prevent spills. Review the order with the client again by double-checking the information on the label. The finished order can then be delivered to the customer along with a polite thank you note Process Flowchart The visual representation depicting the sequence of steps in the process is referred to as a "Flowchart." This diagram provides a comprehensive overview of the approach to client interaction, encompassing the entire ordering process, including potential client inquiries and details regarding the baristas' upselling techniques. In the beverage sector, upselling is a widespread practice that enables businesses to boost their revenue at the time of sale. This flowchart aims to complement the Standard Operating Procedure (SOP) and establish a consistent standard for the organization's client services procedures across all locations, not just the newest store.

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4 Documentation Measuring the Value of an Espresso? Given the rising popularity of espresso-based drinks, it is realistic to anticipate that prices will keep rising. Currently, the average price of an espresso-based beverage is $3.45. This data reveals that $3.50 was Wild Dog Coffee's target price for an espresso cup. The pricing and sales volumes of Wild Dog Coffee's current locations will be contrasted with those of the new business in order to gauge its success. Periodic evaluations will ensure that the organization is operating at the new location in a way that benefits both customers and the company. The employees will be evaluated as part of this procedure. The personnel in the new site will be examined as part of this evaluation process and modified as necessary to maintain consistency in the organization's overall success rate. Several essential measures will be used to gauge the success rate of both the new and current locations.

5 The number of repeat customers we receive will be the first statistic used to assess the effectiveness of the new procedure. The company may assess how well the process is operating by counting the number of repeat customers and observing the rise and fall. If the flow of consumers becomes stagnant, it also enables the company to modify the process to increase that number. High survey results indicate that the procedure is going well. The company must do a root cause study if the proportion of repeat customers is declining. The staff can require more training; the procedure might be damaged and require readjustment with the organization's goals. Customer feedback should be considered as an additional metric for evaluating success. It provides valuable insights into the true sentiments of customers. By encouraging customers to leave reviews on the business's website and social media platforms, their opinions can be captured. These reviews can cover various aspects, such as the quality of service, promptness, and overall satisfaction, usually accompanied by a rating. Additionally, customers may be able to provide suggestions for process improvements or new products/services they would like to see. Customer feedback offers a unique perspective and allows the organization to understand areas that may not be apparent from an internal viewpoint. It provides valuable insights that help improve operations and enhance the overall customer experience (McCarthy, 2018) Time to Deliver to the Client, or Tact time, will be the third indicator to assess the process's performance. Depending on the type or flavor of the ordered beverage, Wild Dog Coffee Company takes different amounts of time to prepare and serve it. An analysis of 50 beverage orders found that the average delivery time for an espresso beverage is approximately 2.47 minutes, with the longest recorded delivery time reaching about 3.43 minutes. The metric will be set at 3 minutes to provide a baseline for success. The new procedure is intended to shorten the time customers wait for their beverages. A process will always have some degree of variation. Because the overall objective of the process is to decrease client wait times, which boosts client satisfaction. The first two metrics will rate the client's overall condition, while the third measure will evaluate the process's success rate in execution. It will take all three metrics working together to assess the overall success of the preparation process (Krajewski et al., 2019) Purpose of the espresso beverage This technique aims to provide a Standard Operating technique (SOP) for preparing espresso-based coffee beverages at Wild Dog Coffee Company. SOPs serve as guidelines that describe, monitor and control routine activities, ensuring consistency and measurability in operations. Operations must maintain consistency by following and executing SOP directions, in the same manner every time. Implementing a standardized process provides control over the actions taken to deliver a product. For the company, a standardized process guarantees quality assurance, preserving a constant flavor and quality for the beverages served to customers across the organization. Written SOPs also hold the baristas accountable, as they serve as a documented procedure, preventing them from deviating and delivering subpar coffee.

6 What is the Wild Dog Coffee Company preparation procedure intended to do? At Wild Dog Coffee Company, adopting an SOP strives to guarantee the accuracy and consistency of the preparation of espresso beverages while also preventing any omissions or mistakes. By establishing an SOP, the organization can minimize the likelihood of errors and instill confidence in employees regarding the accuracy of their work. This demonstrates management's support for the employees and their dedication to providing them with the necessary resources to succeed in their job responsibilities (Anderson, 2017). Adopting an SOP not only serves as a safeguard for the organization and its employees, preventing the delivery of inferior quality beverages, but it also prioritizes the protection of customers. By holding both the company and baristas accountable to a documented standard, the SOP acts as a measure to uphold quality and ensure that customer expectations are met (Anderson, 2017) Process change improvement analysis The business must acquire enough data for educated decision-making to create a successful process that meets its intended goals. Organizations use a statistical instrument called a process capability index to evaluate a process's capabilities. There is a crucial value for this index that must not be surpassed. The process cannot achieve the required outcome if the estimated index is lower than this threshold. Upper level = 3 Lower level = 2 S.D = 0.59 Cpk= Min 3-2.47/3(0.59) , 2.47-2/3(0.59) Cpk= (0.2993, 0.2654) Cpk = 0.2823 Cp = 0.2654

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7 Is Beverage Process Centered? The procedure is not centered when looking at the data the calculation produced. The finding that Cp and Cpk have different values leads to this conclusion. These two numbers should be pretty similar for a process to be deemed "centered," denoting that the sample's standard deviation equals the sigma value. We can examine the delivery times' mean, 2.47, to test this more straightforwardly and see that it is not precisely centered between two and three. By performing this kind of study, one can gain a thorough statistical grasp of the procedure, which provides valuable information for the organization's decision-making process. Will the Wild Dog Coffee Company process meet 3-Sigma? If Cpk < 1.0, a process is performing below the 3-Sigma level. Based on the criteria established by seniors at Wild Dog Coffee Company, which includes an Upper Limit of three minutes, a Lower Limit of two minutes, and SD of 0.59, the CPI is 0.265. This indicates that the process cannot achieve the desired three-sigma level of performance. The primary challenge with the current process is the inconsistency in delivery times. This is evident from the significant variation observed among the 50 recorded delivery times, ranging from the most extended duration of 3.43 minutes to the shortest duration of 1.55. To reach 3-sigma status, the Wild Dog Coffee process would need more consistent delivery times. Improving consistency would affect the standard deviation calculation, leading to a CPI closer to one (1). In order to achieve 3-Sigma with mentioned data, S.D ought to be around 0.156 Is the process in statistical control? A valuable tool for determining whether a business is meeting consumer expectations is the statistical control process. Control charts are a straightforward but helpful tool for monitoring and visualizing process data. The UCL represents the longest delivery time, and the LCL represents the shortest. The center line shows the average delivery time. We can establish whether the process is under statistical control by charting all the data points. Because they are inherent to a process, frequent variations that happen in it are seen as natural (McCarthy, 2018). Organizational leaders can pinpoint areas for development with the help of this chart, which provides a visual depiction of the variances in delivery timeframes.

8 Analysis of the Wild Dog Coffee Cause-and-effect Diagram Cause and effect analysis, also known as a fishbone diagram or Ishikawa diagram, is a valuable tool for identifying and addressing the root causes of a problem (ASQ, 2018). By visually mapping out the potential causes and their corresponding effects, this technique helps generate ideas for improvements and enhances customer service. The cause and effect diagram depicted below focuses on four key areas: management, machine, material, and workforce. The diagram identifies the shortcomings and their resulting effects by examining these areas. This brainstorming process helps highlight the potential consequences of deficiencies in each of the four areas. Let us start by examining the aspect of the workforce. Insufficient staffing in specific areas can result in gaps within the process. When employees are not assigned to specific tasks, these tasks may not be completed promptly, leading to delays in delivery or, in more severe cases, incorrect deliveries that require additional work to rectify. Another crucial aspect related to the workforce is the significance of training. Inadequate or insufficient training can result in delays caused by errors in beverage preparation or improper operation of machinery, leading to system malfunctions and subsequent delays. These issues can ultimately result in product imperfections. If a product is presented to a customer incorrectly, it may be returned, necessitating additional work and further impacting other customers waiting for their beverages to be delivered. In this instance, management significantly affects the variety seen in the process. Espresso beverage delivery times should be prioritized by management; otherwise, staff may

9 develop a lax attitude toward their work. Furthermore, the process is further hampered, and the ability of the workers and the store to achieve business standards are undermined if any member of the management team present during peak times or when there is a staffing shortfall does not step in to help. Another potential barrier in the production process is the workstation layout. Delays and variances are unavoidable if the workspace is disorganized, lacks a regular flow, or forces workers to constantly move in and out of each other's way. It is imperative to change the workspace's workflow in order to handle this. Businesses like McDonald's, where accuracy and efficiency are crucial, provide a shining example of correct workflow management. By prioritizing shorter delivery times, actively participating in operations, and reorganizing the flow of the workspace, management has the potential to improve the time required for each beverage significantly, enhancing overall efficiency (McCarthy, 2018) Improving the material/ingredient preparation process can significantly speed up the overall process. By allocating time to pre-measure condiments or set up pre-prepared classic espresso beverages in different sizes, valuable time can be saved. This can be done during slower periods to anticipate and prepare for busy periods. Doing so minimizes delays when employees need to open additional milk cartons or sugar packets. Lengthy delays can occur when they pause to measure coffee and separate filters. Preparing these elements for the morning rush can reduce the time required for each beverage and ensure that customers do not have to wait too long for their first cup of coffee. It also ensures adequate carafes, spoons, and other necessary dishes. Having the correct number of these items readily available prevents delays caused by shortages. The time it takes to pause and clean these things increases the total time it takes to prepare each beverage. The process's final potential variance source is the machinery used. Given its crucial function, several potential problems could occur, and any downtime could cause delays. However, using machinery instead of labor-intensive human methods for grinding and boiling water typically results in a quicker process. With just a few button clicks, modern, high-tech equipment may be set to do all required measurements. Although these devices could cost more, they significantly shorten production times. Additionally, the staff may use the equipment with the proper training to improve quality and productivity, resulting in higher profit margins.

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10 Recommendations The business might take many steps to meet client expectations and guarantee their satisfaction in order to do this. By putting these steps in place, the business will gain customers' trust when they spend their money there and inspire them to tell their friends and family about it, expanding its client base. The ultimate goal is to create a positive customer experience, which begins with the crucial first step of offering a warm and friendly greeting as soon as customers enter the premises. This initial interaction sets the tone for the entire interaction. When customers feel welcomed and at ease, they are more likely to relax and thoroughly enjoy their overall experience at the coffee shop. Customers wait an average of 2.47 minutes, occasionally even longer, due to the current procedure. The clients are not happy with this long wait time. Therefore, Wild Dog Coffee Company's new location must concentrate on cutting beverage manufacturing times while improving uniformity in quality. This requires many crucial steps to be completed. First and foremost, giving the employees modern, properly maintained equipment and adequate training in cleaning and maintenance techniques is crucial. Second, ensuring a sufficient supply of prepared components and creating a production process will allow other baristas to do as needed, increasing production speed. In this process, management is crucial. They must ensure that goods are ordered or made available as soon as possible, be proactive in helping the staff when necessary, and promote

11 quicker and better delivery. Every team member should also receive thorough training to ensure they are familiar with every stage of the procedure. Most importantly, management must pay attention to what customers are saying. Customers' feedback will show whether the method meets their beverage quality and delivery time needs. Wild Dog Coffee Company can only gauge the procedure's effectiveness at the new site by assessing client happiness. Once the system is mastered, it may be applied to all currently operating stores, ensuring consistent practices across the board.

12 References Anderson, C. (2017). What is a standard operating procedure (SOP)? Retrieved from https://www.bizmanualz.com/savetime-writing-procedures/what-are-policies-and- procedures-sop.html Krajewski, L. J., Malhotra, M. K., & Pitzman, L. P. (2019). Operations management: Processes and supply chains (12th ed.). New York, NY: Pearson. McCarthy, N. (2018). The Price Of A Cup Of Coffee Worldwide Retrieved from https://www.statista.com/chart/14087/the-price-of-a-cup-of-coffee-worldwide/

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