MBA FPX 5016 Assessment 1 Process Improvement Plan

MBA FPX 5016 Assessment 1 Process Improvement Plan

Student Name

Capella University

MBA-FPX5016 Operations Management for Leaders

Prof. Name:

Date

Procedures for Making an Espresso at Wild Dog Coffee

Current Performance Status of the Beverage Preparation Process

The current process for preparing espresso at Wild Dog Coffee is generally effective, though there is potential for enhancement. Improving the existing procedures could elevate the performance of the company’s newest location beyond that of its predecessors. Typically, the staff consists of a small number of baristas who handle both drive-thru and dining room orders. To reduce production times, it is crucial to have a full team during peak hours. This would entail maintaining three to four baristas on duty to manage beverage preparation and assist with busy areas such as the counter or drive-thru. Additional staff would enable baristas to focus on individual orders, improving both the quality and speed of service.

Explanation of Wild Dog’s Classic Espresso Procedure

Wild Dog’s espresso preparation follows a traditional coffee house method. For the new location to excel, it is essential that the process be documented, understood, and executed flawlessly. The goal is to deliver a correctly prepared order to the customer in a manner that makes them feel valued. Accuracy in order preparation is critical, as even a single mistake can lead to rework and delays.

Process for Espresso Preparation

1. Greet the client upon entering the Wild Dog location.
2. Re-greet the client at the order placement point with: “Welcome to Wild Dog Coffee; my name is [name]; How are you? What beverage would you like today?”
3. After the client completes their order, offer additional items for upselling, such as cookies or wraps.
4. Once the order is placed, the barista should select the appropriate hot beverage cup size based on the size of the requested beverage. Wild Dog’s hot beverage cups range from eight (8) to twenty (20) liquid ounces.
5. Affix a printed order label to the cup to ensure order accuracy.
6. After affixing the label, the barista must check off each item and initial the label to verify that the correct sweeteners, creams, or syrups have been added.
7. For each 4oz of ordered beverage, add one (1) pulled shot of espresso. Examples:
   • An eight (8) ounce espresso requires two (2) shots.
   • A sixteen (16) ounce espresso requires four (4) shots.
8. After adding the espresso shots, fill the client’s cup with a measured amount of filtered hot water, as follows:
   • Eight (8) ounce cup: Four (4) ounces of filtered hot water.
   • Twelve (12) ounce cup: Six (6) ounces of filtered hot water.
   • Sixteen (16) ounce cup: Eight (8) ounces of filtered hot water.
   • Twenty (20) ounce cup: Ten (10) ounces of filtered hot water.
9. Add requested sweeteners, creamers, syrups, and/or whipped toppings until the beverage reaches the fill line.
10. Place a lid on the beverage before reviewing it with the customer.
11. Re-check the label and the order with the client.
12. Hand over the completed order with a thank you note: “Thank you for choosing Wild Dog Coffee Company.”

Espresso Preparation Process Flowchart

The flowchart, shown in FIG. 1, illustrates the process from the client’s entrance into the establishment, through order placement, to the delivery of the beverage. It details client interaction from initial contact to service farewell and includes upselling strategies. This diagram should be used alongside the Standard Operating Procedure (SOP) to ensure consistent service across all locations, not just the new store.

Measuring the Value of an Espresso

In 2018, the average price of an espresso in New York was approximately $3.12 (McCarthy, 2018). Given the growing popularity of espresso-based drinks, prices are expected to rise. The current average price is $3.45 (e-importz.com, n.d.), so Wild Dog Coffee should aim to set their target price around $3.50. Success at the new location will be assessed by comparing pricing and volumes to those at existing locations. Regular analyses will ensure the new location meets customer and organizational expectations. Metrics to measure success include the number of return clients, customer feedback, and delivery time. A successful process will have a delivery time under 3.5 minutes, improving customer satisfaction.

Purpose of the Espresso Beverage Preparation Procedure

The procedure serves as a Standard Operating Procedure (SOP) for preparing espresso beverages at Wild Dog Coffee. SOPs provide a consistent method for routine tasks, allowing for operational control and quality assurance. By following a standardized process, Wild Dog Coffee ensures that the taste and quality of beverages remain consistent across locations. SOPs also hold baristas accountable for maintaining quality standards.

Intended Purpose of the Wild Dog Coffee Company Preparation Procedure

The SOP aims to prevent omissions and inaccuracies in the espresso preparation process. It provides employees with a clear guide to ensure precision and consistency. The SOP demonstrates management’s support for staff and its commitment to maintaining high standards. It protects both the organization and customers by enforcing a documented standard.

Process Change Improvement Analysis

To develop an effective process, Wild Dog Coffee has recorded and analyzed 50 beverage delivery times. The process capability index is used to determine whether the process meets goals. If the index falls below a critical value, the process is deemed incapable. The calculation for Wild Dog Coffee is shown in FIG. 2.

Is the Beverage Process Centered?

The process appears not to be centered, as indicated by the discrepancy between the Cp and Cpk values. For a process to be centered, these values should be nearly equal. The mean delivery time of 2.47 minutes suggests the process is not perfectly centered between the upper and lower limits.

Will the Wild Dog Coffee Company Process Meet 3-Sigma?

A process with a Cp value below 1.0 does not meet 3-Sigma standards (Krajewski et al., 2019). The current process has a Capability Process Index (CPI) of 0.265, indicating it does not achieve 3-Sigma. The primary issue is inconsistency in delivery times. Achieving 3-Sigma would require improved consistency and a reduced standard deviation.

Is the Process in Statistical Control?

Statistical control helps determine if the process meets customer expectations (Krajewski et al., 2019). Control charts, as shown in FIG. 3, plot delivery times to monitor process performance. Data points within the upper and lower control limits indicate statistical control. Reducing variation and improving consistency will help achieve a 3-Sigma process.

Analysis of the Wild Dog Coffee Cause-and-Effect Diagram

A cause-and-effect analysis identifies potential causes of problems (ASQ, 2018). FIG. 4 outlines factors in four areas: Management, Machine, Material, and Manpower. Variations in these areas can affect process efficiency. Issues such as insufficient manpower, lack of training, poor management, inefficient workstation layout, and inadequate materials or machinery can lead to delays and inconsistencies.

Recommendations to Improve Client Service and Beverage Quality

To enhance service and quality, Wild Dog Coffee should focus on several key areas. Providing a genuine and friendly greeting sets a positive tone. Staying updated with technology trends and ensuring an efficient workspace layout are crucial. Reducing production times and improving consistency can be achieved by maintaining up-to-date machines, proper staff training, and efficient supply management. Management should support staff, ensure proper training, and respond to client feedback to continuously improve the process. Implementing these improvements will enhance customer satisfaction and operational efficiency.

References

Anderson, C. (n.d.). What is a standard operating procedure (SOP)? Retrieved from https://www.bizmanualz.com/savetime-writing-procedures/what-are-policies-and-procedures-sop.html

ASQ. (n.d.). Data collection and analysis tools. Retrieved from http://asq.org/learn-about-quality/data-collectionanalysis-tools/overview/overview.html

ASQ. (2018). Fishbone (Ishikawa) Diagram. Retrieved from https://asq.org/quality-resources/fishbone

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, June 1). The Price Of A Cup Of Coffee Worldwide. Retrieved from https://www.statista.com/chart/14087/the-price-of-a-cup-of-coffee-worldwide/

MBA FPX 5016 Assessment 1 Process Improvement Plan

e-importz.com. (n.d.). Coffee Statistics 2019. Retrieved from http://www.e-importz.com/coffee-statistics.php

Sixsigmastudyguide.com. (2019). Process Capability (Cp & Cpk) | Six Sigma Study Guide. Retrieved from https://sixsigmastudyguide.com/process-capability-cp-cpk/

Appendix

Wild Dog’s Classic Espresso Beverage Preparation Procedure

1. Greet the client upon entrance to the Wild Dog location.
2. The client should be greeted again at the order placement point with, “Welcome to Wild Dog Coffee; my name is ——; How are you? What beverage would you like today?”
3. After the client completes their beverage order, the employee should offer an upsell to include other items such as cookies or a wrap.
4. Upon order submission, the barista uses the appropriate hot beverage cup size based on the size of the beverage requested. “Wild Dog: hot beverage cups range from eight (8) to twenty (20) liquid ounces.”
5. A printed order label is affixed to the cup to aid in the accuracy of the order.
6. Once the label is printed and affixed, the preparing barista must check off each item and initial the label to ensure the correct sweeteners, creams, or syrups have been added to the cup for that order.
7. After selecting the proper size cup and adding the correct sweeteners, creams, or syrups, one (1) pulled shot of espresso must be added to the cup for every four (4) ounces of the ordered beverage. Example(s):
   • If an eight (8) ounce espresso is ordered, two (2) pulled espresso shots are utilized.
   • For a sixteen (16) ounce espresso beverage, four (4) pulled espresso shots are utilized.
8. Immediately after adding the pulled shots of espresso to the client’s cup, a measured amount of filtered hot water is to be added. Filtered hot water measurements are as follows:
   • An eight (8) ounce cup receives four (4) ounces of filtered hot water.
   • A twelve (12) ounce cup receives six (6) ounces of filtered hot water.
   • A sixteen (16) ounce cup receives eight (8) ounces of filtered hot water.
   • A twenty (20) ounce cup receives ten (10) ounces of filtered hot water.
9. Requested sweeteners, creamers, syrups, and/or whipped toppings will be added after the filtered hot water until the beverage reaches the fill line.
10. A containment lid should be placed on the beverage prior to reviewing it with the customer.
11. The order will be reviewed with the client by re-checking the label again.
12. The completed order can now be passed to the client with a “Thank you for choosing Wild Dog Coffee.”