Scenario: Wild Dog Coffee Company, a locally owned company with a single coffee shop location, serves a wide selection of espresso products, small breakfast and lunch menu items, and a limited evening menu. The company is planning to expand the business by adding an additional location. While different menu items may be tested at the new location, the espresso beverage preparation process will remain exactly the same way as it is in the current location. The company wants to ensure that the espresso beverage preparation process is documented and refined before the move.
Your business partners’ backgrounds are in marketing and sales. As one of three owners of Wild Dog Coffee Company whose background is primarily in operations, while they are working on the external aspects of the business that will bring customers in, you are focused on making the internal customer-facing processes as efficient as possible. Prepare an analysis and recommendations that will help manage a core process improvement for the successful opening of a second location.
Include the following in the process improvement plan:
• Analyze the steps for a selected process.
o Develop a flowchart showing the process’ steps. You may include as many steps as are relevant for the scenario.
o Show the steps for preparing an espresso beverage [for example, latté, cappuccino]; there are two steps that must be included: [1] order is submitted and [2] beverage is handed to the customer. Hint: You may want to visit a local coffee shop to observe the beverage preparation process.
• Write a procedure documenting the selected process. At a minimum, the procedure must document the following for the process:
o Metrics. Identify at least two metrics that will be useful in determining how well the new process is performing. Be sure to identify the target value of the metric and how you will measure it.
o For Wild Dog Coffee Company, it could be how well the beverage preparation process is performing. A third metric is already identified for you: order delivery time. [This is the time between when the order is submitted and the time the beverage is handed to the customer.]
o Procedure. This section describes each step of the process.
o For Wild Dog Coffee Company, your procedure should be titled, “Espresso Beverage Preparation Process.” Be sure to include order submittal and handing the beverage to the customer as part of the procedure.
o Purpose [of the procedure]. This section describes what the procedure is intended to do.
• Analyze data for process changes for a selected process. Respond to the following questions for your selected process:
o Is the process centered? Provide the results of your calculations and the rationale for your decision by thinking about the process capability.
o Is the process capable at 3-sigma? Provide the results of your calculations and the rationale for your decision by thinking about the process capability index.
o Is the process in statistical control? Provide the appropriate numbers and the rationale for your decision using a control chart for individuals.
o For Wild Dog Coffee Company, analyze the order delivery time data for beverage services in the Beverage Service Times document linked in the Resources. This data is for 50 beverage preparation events and was collected using their order processing system. Each individual order gets a time-stamp when it is placed and again when the beverage is handed to the customer. The senior barista thinks the beverage delivery times should range between 2 and 3 minutes. The known process standard deviation, which has been calculated on an ongoing basis, is 0.5903 minutes.
• Analyze the cause and effect of process variances.
o Brainstorm possible sources of variation to create a cause-and-effect diagram to help analyze potential sources of variation in the espresso beverage preparation process at Wild Dog Coffee Company or for your selected business’ process. Your diagram must include at least four of the “6 Ms” [that is, management, manpower, method, measurement, machine, materials].
• Recommend quality and customer service improvements for a selected process.
o Detail the results of your analysis for Wild Dog Coffee Company or your selected business’ process to substantiate your recommendations.
• Analyze how operations management theories and models effect the development and delivery of products or services to the marketplace.
o Analyze the steps for a selected process.
• Use logistics and supply chain management tools to manage the distribution of products and services.
o Write a procedure documenting a selected process.
• Use data to evaluate the effect of operations management decisions on organizational goals.
o Analyze data for process changes for a selected process.
o Analyze the cause and effect of process variances.
• Evaluate the effectiveness of operations management strategies to achieve quality and customer service goals.
• Recommend quality and customer service improvements for a selected process.
Include title, reference, and appendix pages.
Use a process improvement plan template of your choice.
