CASE ANALYSIS

Points for Consideration:

1) The case will be checked for plagiarism (using Turnitin) for the range <=10%.
2) The due date for case analysis submission is 24/04/2021.

In a matter of 40 years, Starbucks has gone from a stand-alone shop in Seattle to the
largest coffeehouse chain in the world. No matter where you live, chances are you can
find a nearby location full of coffee enthusiasts and enthusiasts alike. When entering a
Starbucks, customers experience a sophisticated atmosphere. The combination of
roasted beans, calming jazz music, and young professionals typing away on their
notebooks creates an all too familiar sense. Yet, Starbucks has not always been a
household name that teens and parents rejoice to. Like many other corporations,
Starbucks adopted Six Sigma strategies for improvement, rolling out new operations
throughout its locations.

Traditional Coffeehouses vs. Starbucks

When you think coffeehouse, you imagine a calm, relaxing environment. Maybe you
picture yourself enjoying a flavorful coffee while catching up on some emails. While this
image is standard for most coffeehouses, Starbucks is slowly beginning to differ. As the
corporation grows, its follower base forces it to adapts to the speed and accuracy that
customers now expect. Similar to fast-food restaurants, customers want their ideal coffee,
made fresh, within minutes. Starbucks saw this challenge to implement Lean Six Sigma
methodologies while staying true to its foundation.

Six Sigma Methods

For Starbucks, management wanted to join ordinary fast-food restaurants' speed, and
efficiency with the human element customers expect. However, when attempting to do
this, it's easy for one to override the other. Knowing this, the coffee giant created two
helpful changes; how customers order their coffees and their in-store experiences. First,
Starbucks provides new training techniques for employees, specifically the baristas.
While it's common for the cash register to ring up orders, baristas proactively take
customers' orders before paying. It decreases the wait time for receiving the coffee and
paying for it. Another way Starbucks speeds up the ordering process is via their mobile
app. You can preorder and pay for your drink to its specifications and pick it up when you
arrive at the store on their app. Ready-to-pick-up drinks are available at the counters and
are organized by name.

Remembering the Human Element

While these efficiencies have sped up the overall operations, Starbucks' management
keeps the human interactions well present at each store. When ordering your drink in the
store, management encourages baristas to talk with customers. Asking how your day is
going, if your order is your usual coffee, and other ways to make each transaction
personal. Through the app, Starbucks has rolled out its version of a loyalty program.
Unlike traditional stamp cards, the mobile app allows you to collect "stars," which you can
accumulate for free coffees. Additionally, meeting a certain number of transactions will
get you different levels of loyalty status. This is just another way Starbucks both
recognizes and rewards customers for shopping at their locations.

While Six Sigma was initially designed for manufacturing and production organizations,
service, hospitality, and numerous other industries have found ways to use the
methodology for their benefit. Starbucks is an excellent case study example of an
organization finding innovative ways to increase efficiency while retaining its individuality.

Data Analysis for Mobile Apps Ordering

Starbucks also analyzes the data continuously through the order received through mobile
apps. The Dubai office calculated the number of orders received through Mobile Apps for
verification. The data is collected in 5 stores for 10 days with the number of orders.

Days Order 1 Order 2 Order 3 Order 4 Order 5

1 1096 2101 1007 1298 2109
2 898 1005 1287 1345 2213
3 796 1254 1564 2178 3209
4 1123 3289 1209 2672 2676
5 3123 2107 3210 1076 2876
6 2100 2007 2209 1178 2098
7 2376 897 3105 2167 3001
8 1290 987 3200 2671 2224
9 1090 2348 2765 2987 987
10 1897 1209 1056 999 675

Case Analysis Questions:

Question 1 (CLO 1, 5 Marks)
Apply how Starbucks is implementing the DMAIC process to improve quality
management.

Question 2 (CLO 2, 5 Marks)

Construct the process chart (R and 𝑥̅ ) chart for the data given in the case and identify the
mobile app order variability.