Tuesday, October 19, 2010

QUALITY CONTROL




Starbucks use an attribute control system, which is the measurement based on the quality characteristic on a discrete scale meaning the item is good or defective. This is where percentages are used for the amount of defects. To calculate they take a sample of units at random from a process at specified intervals and the results are plotted on the p control chart. To calculate the center line and control limits of the p chart they take a large number of samples and the percent defected is calculated for all samples to give a true average.

Continuous Improvement is said to be undertaken if the process capability is not adequate to meet present or future needs. Articles from both the Wall Street Journal and CBS News confirm that Starbucks implements continuous improvement however we could not find information of the specific diagrams used.



Lean systems have the objective if eliminating waste defined as non-value-adding activities. Six sigma on the other hand are aimed at reducing defects as seen by the customer. Recently many companies have started combining Lean and Six Sigma practices and Starbucks is one of them. In a Wall Street Journal article Starbucks is described as utilizing a combination of lean and six sigma is practiced. According to a branch manager at one of the locations “It does not make any sense to waste people’s time, energy and resources in doing unnecessary things at the workplace.” Examples of this includes placing equipment and ingredients where they are needed, using one expresso machine and washing pitchers after every use.

Recommendations
The aforementioned articles discussed how Starbucks has high quality control but also highlighted a negative impact due to that which was poor time management. The baristas were responsible for conducting the quality checks such as heating milk for each individual order, rinsing pitchers after each use and stocking ingredients. Though this increased quality, customers were becoming disgruntled as they had to incur long lines and longer wait times. Our group recommends that Starbucks should find a way to maintain its quality control methods but improve its time management. One such way is by having another employee be responsible for the quality checks so baristas could focus on coffee production which should reduce the actual order time and higher customer satisfactiom.

Monday, October 11, 2010

Service Process Design



SERVICE-PRODUCT BUNDLE
The three elements of the service bundle are explicit service, implicit service, and facilitating goods. In the case of Starbucks the explicit service is accuracy and receiving relatively quick assistance. The implicit service refers to how the customers feel about the environment the way workers treat them and how the surroundings add to a pleasant experience. The facilitating goods are the foods and beverages consumed that should be made to how the customers asked for it. This is what should be followed before a good is delivered to appeal to customers and have them return.

SERVICE MATRIX
On the Customer wants and needs in the service package Starbucks uses Standard with options; using moderately repeatable sequence. Customer has some decision making power. This is evident as though customers have the ability to customize their coffee specifically for them, the choices they have are standardized; somewhat mass customization. On the operations service process design Starbucks uses a limited number of process pathways. Line flows, low work complexity. As explained in the process selection section, Starbucks uses a line flow process. All coffee is made in a sequential order; following the same format repeatedly. Hence Starbucks falls into the Co-routed services section of the matrix as it offers a moderate number of choices to customers using moderately standardized processes.

CUSTOMER CONTACT
Starbucks interacts with customers in two ways.  The first way is at the Point of Sale (POS).  The interaction with the customer begins with a greeting, followed by taking the drink/food orders, money exchange, and a farewell.  Pleasant conversation is encouraged, especially with the regular customers.  This builds the idea of the third home: Starbucks's phrase for its ambiance meaning that a person has their house, their work, and their Starbucks to make them feel comfortable.  The second interaction is taken place over the phone or by email concerning questions, comments, or complaints that they might have.  During the the first set of interactions the customer has a high level of involvement.  The customer has all the choices in how they would like their drink made.  Also, the entire interaction take place face-to-face making the interaction more personal for the customer.  There is no self-service or technology used in these interactions.  The second interaction, has medium involvement with the customer and has no face time. 
 
Starbucks supports its partners in several ways.  The support starts with it supervisor team.  These partners are trained with deployment maps.  These maps tell the supervisor where every person should be placed on the floor at any given time based on the number of people on the floor.  Also, the maps tell what each person is responsible for while they are working.  This helps eliminate confusion, as well as control the possible variability that the customers can create with their orders.  The baristas are also trained with various different acronyms that tell the barista how to handle many situations they may run into, as well as easy ways to remember information about different products. 
 
SERVICE RECOVERY
If a situation does arise, Starbucks has several different ways to rectify the situation.  The first way is with their guarantee.  This guarantee is that a customers drink should be made right every time.  If not let your barista know and they will be happy to remake it for you.  This is also called, within company, a right now recovery. This allows the barista to remake the drink to any specifications that were missed in the previous attempt.  If the right now recovery is not enough to fix the situation, the barista can give the customer a recovery certificate.  This is a coupon that allows the customer to recieve any drink of their choosing for free.  Finally Starbucks also has the store managers as well as the district managers leave their business card in the store.  This allows the customer to have direct communication with the management if any situations become out of hand.