buiness process management and erp system -assignment 3

BUSA 379- Assignment 1

1. Identify the value chain for a local coffee shop.

A coffee shop’s value chain is the whole channel from sourcing the coffee in coffee farms to the time it gets delivered to the customer in a coffee cup. An average coffee shop has a simpler value chain compared to a big coffee chain such as Starbucks. The coffee shop value chain is comprised of four phases; cultivation, processing, roasting, and consumption. The average small coffee shop do not have farms and processing facilities.

The value chain starts at the inbound logistics, where the coffee gets bought from wholesalers and processors and then transitioned to the roasting stage. The coffee shop selects the best coffee beans, which it roasts to the finest quality to add value. Part of the roasted beans is packaged for sale, while others are used to brew coffee for sale to patrons.

The consumption level is composed of the service, infrastructure, and marketing components. The coffee shop typically markets its products through word of mouth and other formal marketing channels, enabling customers to come to the coffee shop. The coffee shop has the infrastructure in place such as barristers, bakers and waiters who presents the finished product to the customer.

There are no outbound logistics for this coffee shop.

2. Identify sub-level processes for the coffee shop. (At least 15) (10)

Each of the processes in the value chain have sub-processes

In-bound logistics- Roasting of beans

· Packaging of roasted beans for sale

· Labelling the bags

· Storage of coffee bags

Operations: - The coffee shop brews coffee for customers at this stage. The value added to the roasted coffee is described by the following sub-processes

· Setting up ordering system for each table

· Barista executing the order

· Payment system

· Waiter taking the customer’s order

· Hiring of baristas and waiters

· Training of staff

· Purchasing the right coffee shop technology

· Proper disposal of generated waste

· Processing payroll

Procurement

· Sourcing for the beans

· Transportation of raw beans to the store

· Storage of raw beans ready for roasting

Marketing and Sales – Marketing activities such as advertisements

3. Assuming that the baristas are new and untrained, evaluate the priority of the above identified sub-processes using a PICK chart. You can draw it using hand or use any software/tool of your choice. (Suggestions - draw.io) (30)

Payoff

Low

High

Implement · Barista and waiter training · Advertisement of services · Deploying the right technology, e.g. a POS system	Challenge · Processing own coffee for sale · Disposal of waste · In-bound logistics for raw coffee beans to the store
· Roasting and packing for sale in coffee shop Possible · Setting up ordering system tablets for each table	· Farming own coffee to make gourmet and single origin Kill ·

Difficulty

Hard

Easy

4. Develop the value chain (20) and one level-2 BPMN diagram in Signavio. (30).

(In the attachments)