Six Sigma Case Study Ppt

Six Sigma Case Study: Starbucks

July 10th, 2017

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 with coffee enthusiasts and aficionados, 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 attended our Lean Six Sigma training program, rolling out new operations throughout their locations. Here’s what the coffee giant did to become the success story it’s known for today!

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 common for most coffeehouses, Starbucks is slowly beginning to differ. As the corporation grows, it’s 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 as a way to implement Lean Six Sigma methodologies while staying true to its foundation.

Lean Six Sigma Methods

For Starbucks, management wanted to join the speed and efficiency of common fast-food restaurants 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 they pay. This decrease the wait time for receiving the coffee and paying for it. Another way Starbucks speeds up the ordering process is via their mobile app. On their app, you can preorder and pay for your drink to its specifications and pick it up when you arrive at the store. Ready to pick up drinks are available at the bar and organized by name.

Remembering the Human Element

While these efficiencies have sped up the overall operations, Starbucks’ management is keen to keep the human interactions well present at each store. When ordering your drink in 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 own 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 Lean Six Sigma was originally 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 their individuality.

Six Sigma projects can bring benefits including increased organizational efficiency, improved customer satisfaction, reduced costs, increased revenues, and more.

The Certified Six Sigma Black Belt Handbook reports that many Six Sigma Black Belts “manage four projects per year for a total of $500,000–$5,000,000 in contributions to the company’s bottom line.” A 2012 study of 28 organizations showed that “effective implementation of Six Sigma led to … an average return of more than $2 in direct savings for every dollar invested.”

The following case studies provide a closer look at results organizations have achieved using Six Sigma. Click here to browse other Six Sigma case studies; you can also find more examples of success in quality by visiting the ASQ Knowledge Center.

Supply Chain Techniques Applied to Six Sigma Saves SeaDek Marine Products $250,000– August 2016
SeaDek used supply chain techniques and Six Sigma to reduce major inventory stockouts in 2015. Inventory control tools were applied using DMAIC methodology. The company went from 14 major stockouts in 2014 to one stockout in 2015, resulting in a materials cost savings of more than $250,000 and improving on-time delivery from 44 percent the previous year to 95 percent in 2015.

YMCA Upgrades Day Camps Using Six Sigma – January 2016
When a senior leader at the YMCA of the USA introduced Six Sigma to the youth development department, a new method for managing and tracking projects was ushered into the organization. Upon completing a Green Belt-level training course, a YMCA project team used Six Sigma tools to improve the culture of the organization’s summer day camp. As staff became more comfortable using Six Sigma, project work became more organized and data-driven, and the project team exceeded its first-year goals. 

Achieving Customer Specifications through Process Improvement Using Six Sigma (PDF) – April 2015
The NutriSoil Company in Portugal, a small and medium-sized enterprise (SME), sells fertilizer in bags. The company has had problems with its filling process due to excess weight of the bags. Results show that by implementing Six Sigma combined with the 5S program, NutriSoil achieved an improvement in its Cpk index for this process, which increased consumer satisfaction and a highly significant cost savings. This resulted in increased competitiveness.

Driving Business Impact for Key Customers (PDF) – February 2015
This article discusses how lean and Six Sigma approaches were used for process improvement by CMITS, a business group within Genpact, a business consulting firm. CMITS focuses on information technology (IT) and IT-managed projects. All of 2012 was spent building lean and Six Sigma within CMITS and introducing Six Sigma tools for process improvement.

Let It Flow(PDF) – February 2015
Thomas Jefferson University Hospitals in Philadelphia has a large volume of inpatient and outpatient surgical volume flowing through its many operating rooms. The operating room is a setting abundant with opportunities for improvement. System inefficiencies can lead to sub-optimization of operating room use, thereby decreasing revenue generation. In 2010, the department underwent a strategic plan overview to identify opportunities to streamline and improve operational processes.

Mega Pack Line Blow-Up: DMAIC Roadmap Leads Boston Scientific Heredia to Reengineer Packaging Lines – December 2014
Corporate rates of improvement at Boston Scientific represent a yearly challenge and opportunity to improve and exceed different operation indicators such as service and efficiency, safety, quality, and cost within the company. A DMAIC roadmap provides a standardized and recognized set of tools to be used as methodology during part of the project implementation, based on a lean manufacturing point of view. Core team members and product builders within the Amplatz Super Stiff™ Guidewires area worked together to improve efficiency, increase safety, and save money using a DMAIC roadmap.

Rock Solid: Combining lean, Six Sigma and theory of constraints creates a process improvement powerhouse – December 2014
The 6TOC improvement method employs elements of Six Sigma, lean and the theory of constraints (TOC) to zero in on process bottlenecks and eliminate waste and variation. A 10-step implementation plan based on Eliyahu Goldratt’s chain project management process and Joseph M. Juran’s management principles can help any industry implement 6TOC.

Six Sigma Optimization of Mystery Shopping – September 2014
Mystery shopping (MS) can be a very valuable exercise for studying and evaluating service delivery performance within the banking industry. Using Six Sigma tools and hypothetical data, this case study tests the approach and results to gauge poor service from excellent service delivery. The MS approach is highly applicable as a balanced scorecard parameter to measure delivery within service centers.

Do you have Six Sigma results to share? Let ASQ publish your success story.

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