Starbucks Coffee Company Project Proposal

1
Starbucks Coffee CompanyProject Proposal

• Prepared for
• Mohammad Kaddoura and Richard Storch
• Prepared by
• Teresa Addison, Erik Anderson,
• Jeremy Barnes, and Janice Ng

2
Overview

• Company Description
• Problem Definition
• Analysis
• Decision-Making
• Considerations
• Alternatives
• Integration of IE Skills
• Plan of Action

3
Company Description

• Mission Statement
• What they are all about
• First store opened in 1971 at Pike Place Market.

4
Problem Definition

• Service time variability at POS?
• Affects of service time variability at POS on
  queue?
• Correlation between peak hour sales and linear
  footage?
• Maximize sales?

5
Objectives Goals

• Determine the service time variability
• Determine affects of variability on queue
• Determine relation of queue sales
• Propose alternative solutions for each store.

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Constraints

• Store size
• Store layouts
• Number of servers or POS
• Number of queues
• Staffing requirements
• Data collection during peak hours on Wednesday,
  Thursday Friday from 7-10 a.m.

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Variable Identification
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Analysis

• Data Collection
• 2 urban, 2 suburban stores
• Wednesday, Thursday, Friday (7am-10am)
• Team of two people
• Example Data
• Arrival Time
• Customer Balks
• Service Time
• Payment Method

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Analysis Data Collection Table
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Analysis - Assumptions

• Skill level or partners is the same
• Partners are trained to take orders, and complete
  transactions in the same manner
• Customers cutting the queue dont affect the
  queue time
• Physical space available for the queue is limited
  to size of store
• Equipment used at each store and each POS is the
  same

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Analysis Data Analysis

• Analyze each store separately
• Find arrival and service time distributions
• Determine queue capacity from store size, and
  balking
• Simulate each store
• Verify Simulations
• Simulate each store using constant service time
• Compare Simulations

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Analysis Theoretical Analysis

• Two queues, two POS
• One queue, three POS
• One queue, two POS, modify queue capacity
• Compare to current model

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Decision Criterion

• POS utilization
• Average queue time
• Average queue length
• Sales Generated
• Queue capacity
• Amount of balking

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Considerations

• Environmental
• Social
• Legal
• Ethical
• Geopolitical

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Alternatives

• 1) One on One
• 2) Express Lane
• 3) Standardized Sale Protocol
• 4) Recharge Kiosk

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Integration of IE Skills

• Manufacturing Systems
• Operations Research
• Quality Engineering
• Human Factors

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Plan of Action

• Phase 2
• Finalize stores to collect data
• Analyze data
• Draw conclusions

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Conclusion

• Questions???
• For more information go to
• http//students.washington.edu/fropal/starbucks/