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Running Head: PROCESS IMPROVEMENT PLAN 1

PROCESS IMPROVEMENT PLAN 9

Process Improvement Plan

[Student Name]

[Institution]

Wild Dog Coffee Company

Introduction

This report is for a wild dog coffee company. The company has a single coffee shop location and serves a wide selection of espresso products, small breakfast and lunch menu items, and a limited evening menu. By adding a site, the organization can expand its presence in the market, (Krajewski, et.al., 2019). While the new location may test different menu items, the process of preparing the espresso beverage will remain the same. Before moving, the company wants to ensure that the process of preparing an espresso beverage is documented and refined. About six M's management is planned.

Documentation process of new opening

For running a small coffee shop or meal shop it is necessary to have the best cooks in the world. There is also a need for a lawyer for the documentation process and there is a need for understanding business trends. First of all, there is a need for a license from the licensing agency. Licenses that are required are permits and tax authority licenses and business licenses. There are strong rules and regulations regarding drug administration and food authority. It essential to comply with industry regulations to assure the customers that the products are safe for consumption. The kitchen must be assessed and approved by food quality inspectors and it should meet all the requirements set by food inspections authority. The new shop should have a license to allow it to undertake operations legally, (Krajewski, et.al., 2019). The first step is to obtain a federal tax ID number. A social security number is necessary for sole proprietorships. However, that requirement does not apply because the business will operate as a partnership.

Espresso Beverage Preparation Process.

The company hopes to retain its espresso beverage in its new location. However, there must be a change implemented to make this process more effective in the new location. The dynamics of operations are not necessarily the same in different locations. As such, it is important to develop a new preparation process for the espresso beverage. The new process should be guided based on consumer preferences in the new location.

The first step in the preparation process will involve the acquisition of all necessary equipment and products. The products needed to process the Espresso beverage should be sourced weekly. Sales data from the current shop location can be used to develop a production budget for the new location. The second step in this process will involve pre-processing the espresso beverage.

The company is focused on serving the beverage within the shortest time possible after an order has been made. The barrister should be able to deliver the requested beverage within a period not exceeding two minutes, (Baskerville, 2012). Pre-processing the products will reduce the time taken to deliver the orders. Customers will place their orders at the product-request counters or through company staff stationed at the shop. Once an order has been received, the customer will be given a receipt after they make a payment. The pre-processed Espresso product will be refined to make the final beverage product in the shortest time. The Espresso will be packed in disposable cans with name tags on them for customers who prefer carrying their drinks away from the shop. A standard coffee mug will be used to serve customers who prefer taking their drinks within the shop. The company must the necessary management skills for this process to be effective.

Six M’s of management

Manpower

For the new shop location selling beverages and other products, sales and cooking manpower is required. Also, a management that can manage all work and all work is also required. This is the following manpower required for the new shop.

Counter staff: At the same owner can't manage all work and employees and counting. There will be a need for counting staff.

Bakers having different skills: Bakers are the heart of the bakery. For running a bakery product shop there is a need for approval from food safety authority. Bakers should have fast and delicious cooking skills. They should be aware of hygienic conditions.

Kitchen helper: Dishwasher, for flour swiping and for refilling kitchen helper is required. Sometimes bakers are busy in baking due to large customer arrival and kitchen helper will help them for overcoming burden.

Staff having specialized skills: The key point of success in the market is uniqueness and differentiation. For competing in the market special and unique skills are necessary. A talented bakery product decorator, a bread maker and a chef having good skills of pastry making.

Machines

These are the following machines required for opening new bakery locations.

a) Oven: Basic equipment needed for bakery is oven.

b) 2) Mixers and blenders: Mixers and blenders are a necessary part of the bakery.

c) 3) Slicer: It is used for cutting bread into pieces.

d) Pan racks: For baking, pan racks are required.

e) Refrigerators: These are needed for storage.

1) Case: Case is used for displaying.

Methods

There are many techniques and methods of making one thing. In the bakery also different methods are used for example creaming method, rubbing method, hot milk and blinked cake method. Also, there are many techniques of baking for example sieve, fold, and sperate egg method. Uniqueness is the key element in business for success, (Baskerville, 2012). There should be different management techniques for making this bakery unique in quality. Effect planning will minimize risks.

Materials: Material is that is necessary for bakery and coffee shop are sugar cream flour and dry fruits for decoration.

Money: Money is needed for every startup. Investment depends upon how many products you are going to start up.

Process Evaluation Metrics

It is essential to analyze and evaluate the process change to verify its effectiveness in improving operations at the new location. Efficiency in production is the first process metric to be analyzed. This metric will evaluate the ration of output to input; the number of resources used in the process compared to the amount of product delivered. The desired efficiency ratio for outputs and inputs is 5:1. This ratio meant that the company expects to make 5 deliveries of espresso coffee from each set of inputs put into the espresso coffee-maker.

Turn-around time is another metric that will be used to evaluate the effectiveness of the process. This metric will indicate the maximum and minimum time taken to process a customer's order and deliver the espresso as requested. The company desires to have a turn-around of 1-minute minimum and 2 minutes maximum. This time is enough for an experienced barrister to process the espresso coffee as per the customer's desire, (Baskerville, 2012). Cost-effectiveness is the last metric that will be used to evaluate the process. The company hopes to keep its production costs as low as possible in the new location. To do so, the company will adopt the ABC costing approach to account for each production process singularly.

Variances in the Process

A variance or variation simply refers to an imperfection in the operations undertaken. The best way to analyze the variations in operations is to utilize a cause-effects diagram. In this case, the various variations noted may be arising from the difference in location and a change in management. However, only the fish-bone diagram can indicate the causes and effects of service variations, (Krajewski, et.al., 2019). Some of the common sources of variations in operations include machinery used, materials used for production, the production techniques or methodology, manpower, management. For instance, the type of management skills in the current shop may not necessarily be the same management skills at the new shop location. The question that should be asked concerning these variations is Why? Below is a diagrammatic representation of the cause and effects that are likely to affect operation at the new location.

Figure 1 Fishbone diagram for the process

Things needed to understand before startup

· Business development is a process of availing new trends, new opportunities, new strategies, and new marketing techniques. Sales, new lines and new revenue growth are also related to business development. There is no single definition. Business development is also defined as

· "Business development is the creation of long-term values for the organization from costumers, markets and relationships"

· Business development is all about the creation of opportunities.

· Business development is directly related to economic values. The generation of profit and revenues are directly related to the value of the organization. Economic value is not only a type of value in business. Brand value is a great deal for value creation of creation. The generation of brand value is not directly related to increasing revenue for it also depends upon quality. For best development organization needs an increase in the utility of products and services. Detection and availing of opportunity create value.

· Customer Relationships: If the organization does not have communication and relationships with customers that the organization can't create good value in the market.

· Market: What you are selling creates organization value in the market. Sale product or service should have a unique quality which differentiates it from its rivals.

· Strategy: Strategic thinking is the best way of approaching the customer.

· Build path: Try to approach everything which helps an organization to pursue opportunity.

· Buy path: Buy path means to buy needed sources from other companies.

· Partner path: In partnership find opportunity for company together

· Partnership: Partnership is a very common path for business development. Good Partnership means the creation of long-term values.

· Distribution Partnership: Both partners split financial and brand partnerships. At the same time, you need to boost your brand and create unique products and services.

· Relationship Management: For business development good relations are necessary.

· Tactical Actions: Before making partnership search for companies who can become good partners. Cold calls are the most challenging way to approach. Warm calls mean you already have connections with a person.

· Get a meeting: Get an introduction. Get meetings to know your audience. Consider your motivation. Closing a deal is the most tactical action.

Analysis of industry

There are five competitive forces in an industry. These forces are

1. Competition within industry

2. Chances of new entrances in an industry

3. Barging power of supplier

4. Barging power of consumer

5. The threat of there will be some substitute for the product.

Competition within industry

There is competition within the industry. The main purpose of the industry is attracting customers. Every industry wants to grasp more customers so that the industry can sell more products and can get more profit. Customers should be satisfied and ready to buy a product. There should be a purpose for all products; adding value in the life of the customer. Organizational culture is directly to leadership. Leadership is a way of guideline and motivation for all organizations. Leadership behavior directly affects the performance of the organization.

Chances of new entrances in an industry

There are a lot of chances of new entrance in an industry. First of all, take the patent rights of your ideas about products. Anyone can copy your idea but after taking patent rights your idea will become secured and it will be named to you. Otherwise capital of your business startup should be high so that anyone cannot approach it easily. Leadership is a way of motivation. The best leader is a problem solver. He develops the best relationship among company employees. In this supervisor make agreed and he/she will become agreed to the point of view of the employees. For making supervisors agree there should be creative thinking. There is a difference between important and urgent. Urgent things need attention. But urgent is not in a sense of importance. Employees focus on urgent by understanding what is important, (Baskerville, 2012). There that are nor important neither urgent are ignored. For example, important and urgent tasks are tax deadlines, phone calls from clients and crises on work.

Barging power of supplier: Bargaining can reduce the availability of the product. They can raise the price of products and can lower the quality of the product. Suppliers are of different types.

Manufacturers: Those who manufacture a product. They also distribute products to whole sellers and distributors.

Distributors and whole sellers: They sell products to local distributors.

Importers and exporters: They purchase products from countries and then sell.

Barging power of customer: Customers can exert pressure on the quality of the product. He/she can demand better quality at a low price.

These are the things that make an organization attractive

1. Size of the industry in which the organization operates

2. Growth of an industry

3. Features of product that industry is providing

4. Barriers for new entrance

5. Strategies of organizations

Making a feasible workplace where representatives or employees feel drew in, faithful and fulfilled ought to be the objective of each association. All things considered, if individuals despise their working environment, they will be inefficient, best case scenario and maybe even quit, taking their abilities and information with them - leaving you with the significant expense of discovering substitutions

In the expectation or hope of improving commitment and efficiency through ability arrangement and improvement, numerous discussions have been had, introductions and classes conveyed and strict and advanced ink spilled. All through this talk, the terms authoritative culture and hierarchical atmosphere get tossed around a great deal, frequently conversely. In any case, they're not something very similar, and the thing that matters is significant and plays a role in culture.

Fig 1.1: Flow chart

Mixing

Makeup

Proofing

Bar baking

Cooling

Storage

Re-Baking

According to stakeholder theory organizational management and constitute accounts for different constitute that as an impact on employees, local communities and suppliers. Stakeholder is your way of life as an organization and it is very important. It describes your qualities and the basic norms that have emerged naturally after some time.

Some of the common values that are included in this are the following:

· Quality

· Innovation

· Competitiveness

· Stability

some traditional banks e.g. are by the need of an organized and well-structured environment as the financial business is intensely controlled by well-established law. Banking is actually an old industry, which proposes the way of life has made some long memories to create and is immovably hidden. It pursues that you'd most likely discover a culture where individuals are required to pursue legitimate channels and concede to the levels of leadership — where being excessively "entrepreneurial" in your techniques and practices (i.e.by making it to up as you go) would be disapproved of and where staff individuals present a quiet, gracious face to the client in order to pass on trust and dependability.

Then again, a tech fire up is probably going to be more collaborated and unstructured. Troublesome clash and thoughts may be welcome. Everybody from the organization president to some new interns may communicate casually and coolly. It plays an important role in organization culture it also organizes different training programs. The generation of profit and revenues are directly related to the value of the organization, (Ospina, 2017). Economic value is not only a type of value in business. Brand value is a great deal for value creation of creation. The generation of brand value is not directly related to increasing revenue for it also depends upon quality. For best development organization needs an increase in the utility of products and services. Detection and availing of opportunity create value. A person should go for quick methods in the case of the extra workload. Sometimes due to workload work cannot be completed. In this, a supervisor made agreed and he/she will become agreed to point a view of the employees. The generation of brand value is not directly related to increasing revenue for it also depends upon quality. For best development organization needs an increase in the utility of products and services. Detection and availing of opportunity create value.

Recommendations

The first recommendation concerns the management of the coffee shop established in a new location. Some staff members including a section of the management team should set up shop at the new location, (Ospina, 2017). This will only be necessary until the business is operating optimally. By so doing, the company is assured of a smooth start-up at the new location. A second recommendation concerns the machinery and equipment for the new shop location. All the necessary machines and equipment should be purchased newly rather than transfer some from the current shop location. A new shop requires new machines and equipment.

References

Baskerville, P. (2012, December 20). What’s the Secret to A Successful Coffee Shop? Forbes. Retrieved from https://www.forbes.com/sites/quora/2012/12/20/whats-the-secret-to-a-successful-coffee-shop/#150a151313c3

Berardinelli, C. (n.d.). THE COMPLETE GUIDE TO UNDERSTANDING CONTROL CHARTS. ISIXSIGM. Retrieved from https://www.isixsigma.com/tools-templates/control-charts/a-guide-to-control-charts/

Ospina, A. (2017, June 22). How to Reduce Your Coffee Shop-Line & Increase Profits. Perfect Daily Grind. Retrieved from https://www.perfectdailygrind.com/2017/06/reduce-coffee-shop-line-increase-profits/

Krajewski, L. J., Malhotra, M. K., & Pitzman, L. P. (2019). Operations management: Processes and supply chains (12th ed.). New York, NY: Pearson.