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School

Dallas County Community College *

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Course

MANAGERIAL

Subject

Economics

Date

Nov 24, 2024

Type

png

Pages

1

Uploaded by CorporalHyenaMaster642

Report
When a target came down from corporate to save $25 million in a year by elimi- nating waste the goal seemed daunting, but after observation at the gemba, opportuni- ties were abundant. With the help of consultants, corporate developed “A Better Way” standards for common high-frequency activities in the stores (brewing coffee, making other bever- ages, preparing Frappuccinom, loading the pastry case, etc.). In formulating the sys- tem, corporate made a number of discoveries. For example, the lead time for espresso drinks was faster if two beverages were prepared in parallel, with the machine pro- cessing one while the barista prepared the other. Astonishingly, it was discovered that there was no standard system for making urns of brewed coffee. Another big problem was running out of brewed coffee from large urns, leaving customers waiting. The existing process called for the four urns to be assigned to a particular coffee type: two for medium roast, one for bold, and one for decaf. An obnoxious buzzer went off every 30 minutes when a timer expired and it was time to make the next batch. It took 7 minutes to make the batch, and so there was a mini- mum of 7 minutes until that type of coffee would become available again (1 minute changeover and 6 minutes brewing). So roughly 25 percent of the time—by design of the recommended SOP—bold and decaf coffee weren’t available for customers, and that’s if everything went as planned. And there was no clear role responsible for mak- ing the coffee, and it often was delayed further, waiting for someone to get freed up. With the Better Way, the coffee in urns was now brewed in an 8-minute cadence. Just as a specific type of coffee (e.g., bold) was expiring, that same type of coffee was fin- ishing the brewing process and thus becoming available (see Figure 5.5). A floater, who previously supported mainly the barista and cashier, now was expected to pre- pare coffee every 8 minutes and fit in the other tasks in between. As it turned out, this also improved the quality of the coffee and reduced wasted labor. Previous Process: ¢ Coffee unavailable Prep : ¢ Coffee quality lower 1 min Coi"fezej1 available ¢ Extra labor for batch grinding min Coffee available Coffee brewing unavailable for 7 minutes Just as one batch of a particular coffee type expires, a new batch of the same type Brewed coffee ' / P = becomes available repeatable routine 1. Reset single timer 2. Drain “twin” server at sink 3. Grind coffee 4. Clean brew basket and server 5. Load brew basket & Brew coffee [HIITHEm ' ' 2 sminuies [ ||| INEESSEITEELELL Figure 5.5 Better Way for brewed coffee —prior condition compared with new stan- dardized work. Source:Starbucks. As sensible as these ideas seemed, they did not always work as planned at the store level. For example, there was not always staffing for a floater, and what hap- pened when the floater was busy with support work that he or she could not just drop? Fortunately, the corporate team had learned the value of flexibility and local adapta- [0 IR 10l 5 (76 [0 W1 TORYA S To B [ BT TR {0 (D 4 V1 TS B There was no way any corporate team can come up with one best way for all stores—or even one store. Instead each leader was asked to select and adopt a “seed store” and try out the Better Way for themselves. Then, with the:> store team, use the problem solving skills they were trained in to tailor i routine to that specific store’s situation (layout of equipment and custon flow, beverage demand and mix, etc.).
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