Essay on Simulation of Starbucks

13) Refer to the table. What is the average number of customers in the queue plus the number being served?

Topic: An examination into the rise and fall of Starbucks Coffee Company and its relationship to certain microeconomic principles.

Shuzworld aims to keep customer satisfaction at its highest. A customer approach that focuses on making the customer happy is of upmost importance. One way to achieve this is to ensure that customer wait time is kept to a minimum. Specific questions have been posed for concern; how many customers will be in the system; how many customers on average will be in line; and what the probability is of one being in line or being served? The company is looking at staffing each

Mario’s Pizzeria, a family-owned establishment is known for authentic taste, fresh ingredients, brick oven baked pizza, is an example of common modern phenomena. The pizzeria has been in business since 1950 and brings with it a reputation in its home in Palm Springs, California, for its quality and uniqueness. Mario wishes to pass the business down through his family, however a new set of streamlined processes are required to remain competitive while still providing that family owned ambience that is one of their hallmarks. Customers are dissatisfied with the wait time and it necessary to evaluate the customer population, customer que wait times, the servicing system, and develop a priority rule for

1. In the beginning, how was Starbucks different from other coffee options for coffee drinkers in the United States? What activities and assets did Starbucks leverage to differentiate itself from competitors?

If the staff working in that coffee house are unable to provide a coffee according to the order provided by the customer, then that business model is a complete failure. In another scenario if the staff served the customer with some coffee which is not desired or ordered by him/her then that business process is a complete failure.

How can the Starbucks operations be consistent with so many variations? My observation will evaluate the Starbucks' processing time. The objective problem statement is "It takes too long to get a flavored cup of Latte from Starbucks."

Imaging if there was no more coffee in this world, how would you feel? Nowadays, coffee becomes an important part of people’s life. People who often work overtime, they drink coffee because caffeine can make you awake; people who have to wake up early in the morning, they drink coffee because instead of making breakfast, coffee is more convenient; people drink coffee during the free time, because it also tastes good.

The current average utilization rate of the call centre is 30.48% (see appendix XXX). The average arrival rate, rate at which the patients call, is lower than the average service rate, rate at which the patients are serviced. However, both the arrival time and the service time contain moderate variability (see appendix XXX), negatively impacting the flow time during peak hours. There are two arrival rate variability issues: variability amongst the different days the calls are received and variability amongst the hours the calls are received. The problem is bigger than Laura anticipated. As per the ‘Appendix 5’ of the case, the average daily abandoned calls are 338 and not 35. This does not include the patients receiving a busy signal, therefore becoming lost throughputs. Thus given the low utilization rate it is clear that the problem the call centre faces is in managing variability and not capacity.

Starbucks faces a difficult and controversial management challenge. The company’s most recent market research has revealed unexpected findings implicating that Starbuck is not always meeting customer’s expectations in the area of customer satisfaction. The purpose of this memo is to analyze and provide recommendation on whether or not the company should go forth with a $40 million investment in additional labor in the stores. This $40 million investment is necessary in order to bring service time down to a three-minute interval and ultimately increase customer satisfaction. A marketing strategy and corresponding recommendation will be provided for your approval.

For our Gemba project, we decided to analyze the order fulfillment procedure for Cup of Joe, a coffee shop located in the Lennox Town Center. In order to capture the establishment’s peak hours of business, we primarily visited during the hours of 9:00am-12:00pm. We focused our attention on orders for baked goods, coffee, and espresso drinks, as these products are the shop’s main source of revenue and reputation. On several separate mornings we were able to observe an average of 125 orders over three hours (a takt time of 1.44 minutes). In the evening, there were often less than a dozen orders every hour. Since every order is slightly different, we have described the average order and the steps in the process that are consistent in almost every situation. We have identified multiple areas for improvement, which are referenced in the sections entitled analysis and recommendations.

Please answer all the following questions as they relate to the case. Please utilize as much outside resources as you deem necessary to reinforce your answers—especially the last question. Remember that this case is over 10 years old and Starbucks has changed since then.

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

3.   The travel time is 1 hour.  While this is considered part of the service time it actually means that the customer will be waiting during the first hour of the service time.  Thus, travel time must be added to the time spent in line as predicted model in order to determine the total customer waiting time.

Unpleasant waiting experience might accompany with customers go through the whole service process, which could lower the overall evaluation of service quality easily. Not only the queuing experience, a number of studies also investigated that queuing time in a service organization significantly influences consumer satisfaction. In general, increasing in waiting time is associated with decreasing in customer satisfaction (Katz, M.Larson & C.Larson, 1991). The graph (Dube, Renaghan & Miller, 1994) below shows the effect of waiting time on customer satisfaction in restaurant industry, and suggests that most consumers do not satisfied if the waiting time is longer than 8 minutes. In addition, another study (Jones & Dent, 1994) examined that 70% of respondents considered waiting time as a major