annotated-MBA-FPX5016_Tralisha_Johnson_20Assessment_201_20Attempt_201.docx

1 Process Improvement Plan Tralisha Johnson December 27, 2023

2 2 Table of Contents Introduction .................................................................................................................................................... 3 Procedure Documenting Current Process ....................................................................................................... 3 Ordering Procedures ...................................................................................................................... 3 Preparing the Latte ........................................................................................................................ 4 Metrics ........................................................................................................................................................... 4 Metrics 1 – Customer Satisfaction ................................................................................................. 4 Metrics 2 – Order Accuracy ........................................................................................................... 5 Metrics 3 – Order Delivery Time ................................................................................................... 5 Procedure ........................................................................................................................................................ 6 Preparation Process ....................................................................................................................... 6 Preparing the Latte ........................................................................................................................ 7 Purpose of the Procedure .............................................................................................................................. 7 Is the process centered? ................................................................................................................. 7 Is the process capable of 3-sigma? ................................................................................................ 7 Is the process in statistical control? .............................................................................................. 8 Analyze the cause and effect of process variances ...................................................................................... 8 Methods ........................................................................................................................................... 9 Manpower ....................................................................................................................................... 9 Measurements ................................................................................................................................. 9 Machine ............................................................................................................................................ 9 Materials ....................................................................................................................................... 10 Recommendations ........................................................................................................................................ 10 References ..................................................................................................................................................... 11

4 4 Preparing the latte: Flowchart 2 Metrics Performance metrics are defined as “information and project-specific data used to characterize and assess an organization’s quality, capabilities, and skills,” according to (SELECTING PERFORMANCE MEASURES & METRICS, 2023). Wild Dog Coffee Company’s goal for the new location is to create a beverage with great customer experience including the perfect latte in a timely manner. Process metrics measures the overall performance and success of the documented process. The following three metrics will be used to determine how well the process is performing for Wild Dog Coffee Company are customer loyalty, order accuracy, and order delivery time. Metrics 1 - Customer Satisfaction According to (Team, 2023), “customer satisfaction is an assessment of how happy customers are with a company’s products and services”. During the ordering process, Wild Dog Coffee Company requires the barista to ask for the customer’s name and phone number. The barista gives change and hands the receipt to the customer asking them to do a one-question survey by clicking the link that was sent to their cell phone number given. This survey is about the promptness and courtesy of the customers’ experience. 1. “How satisfied are you with the quality and speed of service given? ￿ / ☹ The customer has a smiley face option for satisfaction and a sad face for dissatisfied. The next stage of the customer satisfaction survey includes a bar code on the cup. Customers have the option to scan the bar code to complete a one question survey on satisfaction of quality of their order. This bar code will prompt the customer to enter their first and last name, an email address and then answer the one question survey. 1. “How satisfied were you with the quality of the items you order?” The rating will be from 1 to 5, 1 being not satisfied and 5 being extremely satisfied. 2. Are you a returning customer? Yes / No Start Barista checks porta filter handle to ensure it is clean and dry; a wet basket will affect extraction Grind and dose the ground coffee in porta filter Insert porta filter handle into the group head to start brewing espresso Open the group head and take the porta filter out and gently tap the porta filter on the tamp mat to distribute ground coffee evenly to remove air pockets Grab the appropriately sized cup and warm it by rinsing it with hot water so the glass will not shatter Brew Espresso Latte Steam the milk in a separate cup Pour steamed milk over espresso Barista calls customer's name and drink type at hand out counter - hands customer drink a gives a departing greeting asking them to scan the bar code on the cup to complete a two question survey on satisfaction of quality of order

5 5 Metrics 2 – Order Accuracy Upper management should read the customer surveys as this helps to benchmark the efforts to improve customer satisfaction. Knowing how the customers feel will help create a strategy for improvement. Upper management should also respond to customer feedback. Name and email addresses are provided when customer scans the bar code found on the cup. Upper management can respond to random surveys, focusing on the ones that do not meet the extremely satisfied standard, but also responding to some that do just to acknowledge that their feedback is appreciated. No one likes to leave a restaurant only to find out that something is missing or was not done correctly. Order accuracy plays a key role in customer loyalty and satisfaction. If a business consistently sends out incorrect orders, this will become costly. It affects food cost, waste, time, and affects the way customers view the company name. When upper management reviews the surveys turned in, they can get a total of orders and compare the list of surveys that answered yes with the surveys answered no on the question of “Was your order prepared correctly?” They can also look at the items that were returned for remakes. According to (Increase Order Accuracy and Boost Customer Loyalty, 2021), “If your order accuracy rate is between 95% - 98%, you’re on par with competitors”. Wild Dog Coffee Company’s aim is to be 98% or higher. Metrics 3 - Order Delivery Time Upper management tracked the order to delivery time for 50 beverages made at the main location. Order delivery time is the time between when the order is submitted and the time the beverage is handed to the customer. Upper management tracked the order to delivery time for 50 beverages made at the main location. Order delivery time is the time between when the order is submitted and the time the beverage is handed to the customer. Wild Dog Coffee Company’s goal for order delivery time is between 2 and 3 minutes. Figures 1 and 2 and 3 show that the mean delivery time was 2.468, median delivery time was 2.405, the minimum delivery time was 1.55 and maximum delivery time was 3.43. Figure 1 Bev # Min Bev #2 Min2 Bev #3 Min3 Bev #4 Min4 Bev #5 Min5 Bev 1 3.42 Bev 11 2.32 Bev 21 2.26 Bev 31 2.73 Bev 41 1.74 Bev 2 1.67 Bev 12 2.94 Bev 22 3.00 Bev 32 2.80 Bev 42 2.04 Bev 3 1.98 Bev 13 3.24 Bev 23 2.45 Bev 33 3.08 Bev 43 1.85 Bev 4 1.66 Bev 14 3.23 Bev 24 3.43 Bev 34 1.60 Bev 44 1.69 Bev 5 1.64 Bev 15 3.38 Bev 25 3.15 Bev 35 3.19 Bev 45 2.66 Bev 6 2.06 Bev 16 2.10 Bev 26 2.02 Bev 36 2.25 Bev 46 3.23 Bev 7 2.46 Bev 17 2.71 Bev 27 3.07 Bev 37 2.32 Bev 47 3.16 Bev 8 2.36 Bev 18 1.75 Bev 28 2.74 Bev 38 3.00 Bev 48 1.78 Bev 9 1.82 Bev 19 2.52 Bev 29 3.01 Bev 39 1.96 Bev 49 2.14 Bev 10 2.95 Bev 20 3.13 Bev 30 1.55 Bev 40 1.84 Bev 50 2.32

7 7 Preparing the latte: 1. Start 2. Barista checks porta filter handle to ensure it is clean and dry; a wet basket will affect extraction 3. Grind and dose the ground coffee in porta filter 4. Insert porta filter handle into the group head to start brewing espresso 5. Open the group head and take the porta filter out and gently tap the porta filter on the tamp mat to distribute ground coffee evenly to remove air pockets 6. Grab the appropriately sized cup and warm it by rinsing it with hot water so the glass will not shatter 7. Brew the Espresso Latte 8. Steam the milk in a separate cup 9. Pour steamed milk over espresso 10. Barista calls customer's name and drink type at hand out counter - hands customer drink a give a departing greeting asking them to scan the bar code on the cup to complete a two-question survey on satisfaction of quality of order and customer loyalty Picture 1 Purpose (of the procedure) The goal of this paper is to assess and document the current steps of making Wild Dog Coffee Company’s famous latte beverage. Wild Dog Coffee Company is opening a second location, and the company wants to concentrate efforts on refining the steps for preparing its latte. It gives a clear layout of all steps necessary to make an espresso that is the same quality for any location. Centered Process Wild Dog Coffee Company’s espresso process steps are put into place to ensure an effective and efficient way to reduce customer wait time. Consistency is the key when taking and delivering beverages to the customer. Data was collected on how long it takes to make 50 beverages. The two measurements used to show how consistent the baristas are with an average performance are Cp and Cpk. The Cpk is .2642 and standard deviation is .5903, so it is not centered. Three Sigma According to (What is Three Sigma?, 2023), “Three Sigma is the third Sigma level, which indicates that there can only be a margin of error up to three standard deviations from the mean”. 99.7 % of all outcomes would fall within this range of accuracy. As you can see in Figure 4, the Lower spec = 2.468-

8 8 2/3*0.5903 = .2642. Upper spec = .3004. The process capability index is less than 1, therefore it is not capable at 3-Sigma. Figure 4 Statistical Process Control According to (WHAT IS STATISTICAL PROCESS CONTROL?, 2023), “Statistical process control is defined as the use of statistical techniques to control a process or production method.” These tools can help to monitor process behavior, discover issues in internal systems, and find solutions for production issues. Data from 50 beverage preparation events were collected using the order processing system. Each individual order was time-stamped when it was placed and again when the beverage was handed to the customer. The senior barista thinks the beverage delivery times should range between 2 and 3 minutes. The mean is at 2.47 minutes which falls withing the goal. From this control chart, Figure 5, we can see that the process is controlled. Figure 5 Possible Sources of Variance According to (Yanez, 2023), a “cause-and-effect diagram is a visual tool used to logically organize possible causes for a specific problem or effect by graphically displaying them in increasing detail, suggesting casual relationships among theories. A cause-and-effect diagram examines why something happened or might happen by organizing potential causes into smaller categories. It can also show relationships between contributing factors. There are six categories that variances can be placed into when Column1 Column2 Upper 3 minutes Lower 2 minutes Lower Spec 2.468-2/3*0.5903 Upper Spec 3.00-2.468/3*0.5903

10 10 or potential malfunctions. Report any pos system issues and upper management should notice if there are not enough machines. Materials are raw materials, components and consumables used to satisfy production and service delivery. Employees should ensure that materials are not mislabeled, are stored properly, and are not expired. Employees should not if there are any issues with products when they come from the supplier. Make sure that the quality of products being delivered is correct, such as coffee beans (not opened) milk (not expired) etc. Recommendations Wild Dog Coffee Company wants to ensure the new location will focus on customer satisfaction, customer loyalty and speedy order delivery time. Wild Dog Coffee Company wants to ensure that customers are receiving the best espresso beverages in a timely manner. The senior baristas from Wild Dog Coffee Company’s original location should be the ones to train the new employees for the new location . The company currently does not have a centered process; however, the current average delivery time is 2.47 minutes which is within the 2-3 minutes the senior barista feels is adequate. This means the variance is not large. This analyzes defined methods that will help Wild Dog Coffee Company to standardize the espresso making process and ensure the quality and consistency will remain the same in both locations and in any future locations.

11 11 References Allen, L. (2023, July 17). Coffee Statistics: Consumption, Preferences, & Spending . Retrieved from driveresearch: https://www.driveresearch.com/market-research-company- blog/coffee-survey/#:~:text=1.,of%20people%20drink%20coffee%20sometimes. Increase Order Accuracy and Boost Customer Loyalty . (2021, April 16). Retrieved from OptimoRoute: https://optimoroute.com/order- accuracy/#:~:text=If%20your%20order%20accuracy%20rate%20is%20between%2095% 25-98%25%2C,an%20order%20accuracy%20rate%20of%2098%25%20or%20higher. Juran. (2018, May 1). The Ultimate Guide to Cause and Effect Diagrams . Retrieved from Juran: https://www.juran.com/blog/the-ultimate-guide-to-cause-and-effect-diagrams/ SELECTING PERFORMANCE MEASURES & METRICS . (2023). Retrieved from ASQ: https://asq.org/quality-resources/metrics/selecting-metrics-tutorial Six Sigma Solutions: Meaningful Metrics . (2023). Retrieved from ASQ: https://asq.org/quality- progress/articles/six-sigma-solutions-meaningful- metrics?id=38fc3745995344eb8df646ad9aa7991f Team, I. E. (2023, June 6). Why is customer satisfaction important? 7 common benefits . Retrieved from Indeed: https://uk.indeed.com/career-advice/career-development/why- customer-satisfaction-important The Role Of Fishbone Diagram In Analyzing Cause And Effect . (n.d.). Retrieved from Citoolkit: https://citoolkit.com/articles/fishbone-diagram/ WHAT IS A FLOWCHART? (2023). Retrieved from ASQ: https://asq.org/quality- resources/flowchart What is a Standard Operating Procedure (SOP)? (n.d.). Retrieved from Bizmanualz: https://www.bizmanualz.com/save-time-writing-procedures/what-are-policies-and- procedures-sop.html WHAT IS STATISTICAL PROCESS CONTROL? (2023). Retrieved from ASQ: https://asq.org/quality-resources/statistical-process-control Yanez, K. (2023, February 21). The Ultimate Guide to Improve Employee Experience . Retrieved from Invagate: https://blog.invgate.com/employee-experience