economics of manufacturing

7/29/2019 Economics of Manufacturing

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TAKING ON THE BUBBLE TEA !

Prepared by :- Karen

- Keyon

- Ling Yin

- Hui Xin

- Xanthe

TEAM DIVERSIFY


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Introduction

Objectives

1. Reduce congestionat counter

2. Improve workspacelayout

PurposeTo increase the overall

efficiency of the bubble teabusiness situated in the

newly opened food court inNTU


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C

ON

T

R

OL

Visual Control

Objective 1 is achievedReduce customerbuying decision time thus reducing congestion

Main menu: Showcases only 5 drinks Prices not stated

Side menu: Size is only 1/3 that of main menu

yet it lists the entire drinks selection

Problems: Main menu provides 5 variety of drinks The side menu is small and only

customer who are in front of thecounter can see the list entire list ofdrink available.

Those customers behind could not seethe side menu and will spend timedeciding when they are at the counter

Suggestions:

Main Menu List more variety of drinks,including their corresponding prices.

Side Menu Place another side menu

Main menu Side menu


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C

ON

T

R

OL

Visual Control

Objective 1 is achievedCongestion at counter

is reduced

Digital counter display cannot be seen from far

Problem: Customers have to remain near to the counter whilewaiting for the collection of their orders

Suggestion: Install another digital counter display, as seen in the

image above Print an estimated waiting time on the cue slip

Bubble Tea Store

Suggestion : Install additionaldigital counter display at thispillar to increase visibility ofdigital counter display .

Digital

CounterDisplay


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5STo Set In Order - Orderliness

Most ingredients, including thosestored in the fridge, are labeled foreasy referencing

Objective 2 is achievedWorkspace is improved.

Some ingredients are placed far backin the store: Delays production of the bubble

tea since items are not readilyavailable

Suggestion: Arrange the ingredients for easy

accessibility Store small but sufficient

proportions of ingredients into themini fridges below the maincounter


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5SShine - Cleanliness Regular cleaning of used mixersand utensils

Counters are wiped frequently


Used receipts placed in the productionarea:

Presence of these used receiptscompromises the overall tidiness of thestoreSharp needle used to fasten thereceipts could be a potential workplace

hazard that may hurt the workers.

Needle

Suggestion: Place used receipts in a box at the cashier

instead


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Employees adhered to the standard procedures ofmaking the bubble tea Poor layout prevents a smooth work flow: Production of bubble tea involves a 5-step sequencethat the employees adhere toAll ingredients are scattered over different segmentsof the store.( See Fig. 1)

Shitsuke Sustain

5SSeiketsu - Standardization

5S

Suggestion: All necessary ingredients could be placed on a

single workbench for easy accessibility

Good sustainability in the cleanliness andquality of food produced

Objective 2 is achieved

Workspace is improved.

2 4

3

1

Fig. 1: Current workspace layout

5


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77 Waste - Motion


Some ingredients are placed far backin the frozen food corner: leads to unnecessary walking (See

Fig.2 ) during preparation ofbeverages

Suggestion: Arrange ingredients for easy reach

Ingredients can be moved to minifridge located much nearer to theactual workbench

wastes



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77 Waste - Waiting

Objectives 1 & 2 are achievedCongestion at counter is improved.

Workspace is improved.

Ingredients are not readily availablewhen needed

Poor store layout leads tounnecessary motion. (See Fig. 4 )

Poor visibility of digital counter display

No proper queue space

wastes

Suggestion: Modify the store layout to facilitate proper work

flow Cue slips should indicate estimated waiting

time so customers will not crowd around thestore thereby minimizing congestion problems.



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Key ThoughtsKey Observation Key Thoughts & Proposed Action

Main menu

Displays only 5 drinks

Drinks prices absent

Side menu

1/3 the size of the main menu

Lists complete selection of drinks

Main menu

Should provide entire list of drinks available

Side menu

Include another side menu

These will accelerate consumers buying decision-making process &simultaneously minimize congestion issues.

Limited visibility of the digitalcounter display leads tocongested queues.

Install another digital counter display

Include the estimated waiting time on the cue slips.

Congestion problems addressed as customers need not stand nearthe store till their order is ready for collection.

Cleanliness and tidiness of storewere well maintained, reflectinggood business ethics

However, used receipts werefastened with sharp needle &placed at work bench,compromising stores tidiness and

staff safety

Workers are constantly producing high quality andconsistent work, indicating effective management by thesupervisors.

Used receipts should be placed in a box at the cashierinstead

Tidiness of store is enhanced and work hazard is eliminated for the

safety of all workers


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Key ThoughtsKey Observation Key Thoughts & Proposed Action

Poor workspace layout that

leads to unnecessary motion.

Ingredients are usually out of

reach impeding smooth work

flow

Many ingredients are placed

at the back of the store.

1. Take small portions of the ingredients and store

them in the mini fridge located right next toactual work bench.

2. Modify the store layout:

By moving the entire production to the back

storage area helps to facilitate movement.

This will help create a smoother work flow and

increase production efficiency.

This rearrangement may involve high costs but an

improved workspace layout will substantially reduce

production and customer waiting time which in turn

increase revenue earned ultimately.

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5

4

3

2

1 6

5

4

3 2

1

Before After


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THE END

Special Thanks To:

Professor Michael Tay

The NEW WORLD @ NTU

III Causal Analysis:


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Problem Solving Theme:

I.Background / Problem Statement:

On average, customers have to wait for about 7-10minutes before their drink is served.

The production process is not orderly refine, thus, resulting in ergonomics issues.

There is no proper queue line for customers, making it difficult for customers to differentiate the

order and collection line.

Potential customers may be deterred from ordering upon seeing the long queue.

II. Target/Goal:

To reduce the waiting time of the customers to 3 minutes per drink.

III. Causal Analysis:

Man Machine

Method Material

Insufficient knowledge

to operate the

machine.

Inexperienc

e workers.

Employees are too task-oriented;

they do not cross over the

boundary, upon completion of

their job.

No customer service standard.

There is

only one

sealer.

Inappropriate layout.

Inappropriate

storage of

ingredients.

Congestion at the

waiting area.

Long

W

aiting

time

IV. C ountermeasures

Problem(s) Countermeasures

Inexperience workers. Send the employees for training.

Insufficient knowledge to operate the

machine.

Employees are too task-oriented; they

do not cross over the boundary, upon

completion of their job.

Organize teambuilding activities.

No customer service standard. Set standards for customers making the purchase:

a) Service

b) Drinks ordering

c) Drinks collection

There is only one sealer. Introduce additional sealers to promote efficiency.Congestion at the waiting area. Introduce Order here and Collection point signage at the counter to reduce

confusion.

Install an additional digital counter display in the middle of the foodcourt to

increase the visibility of queue number.

Include an estimated waiting time o n the queue slip.

Inappropriate layout. Shift the production line to the back of the store to increase productivity

efficiency.

Inappropriate storage of ingredients. Store the ingredients in clearly labelled containers.

V. Action Plan

Countermeasures When (week) Who

1 2 3 4 5 6

Send the employees for training.


Set standards for customers making the

purchase:

a) Service

b) Drinks ordering


Introduce additional sealers to promote

efficiency.

Introduce Order here and Collection

point signage at the counter to reduce

confusion.

Install an additional digital counter display

in the middle of the foodcourt to increase

the visibility of queue number.

Include an estimated waiting time on the

queue slip.

Shift the production line to the back of the

store to increase productivity efficiency.

Store the ingredients in clearly labelled

containers.

What is the

new waiting

time?

Under 3mins : Target met

More than 3mins : Target

not met Review action plan andconsider other approach.

Retain plan.Follow Up


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V. Action Plan

CountermeasuresWhen (week)

Who1 2 3 4 5

Send the employees for training. Employees

Organize teambuilding activities. Manager

Set standards for customers making the purchase:

a) Service

b) Drinks ordering


Employees and

manager

Introduce additional sealers to promote efficiency. Manager

Introduce Order here and Collection point signage

at the counter to reduce confusion.

Install an additional digital counter display in the

middle of the foodcourt to increase the visibility of

queue number.

Include an estimated waiting time o n the queue slip.

External contractor

and manager

Shift the production line to the back of the store to

increase productivity efficiency.

Employees and

Manager

Store the ingredients in clearly labelled containers. Employees

I. Background / Problem Statement:

On average, customers have to wait for about 7-10minutes before their drink is

served.

The production process is not orderly refine, thus, resulting in ergonomics

issues.

There is no proper queue line for customers, making it difficult for customers to

differentiate the order and collection line.

Potential customers may be deterred from ordering upon seeing the long

queue.

II. Target/Goal:To reduce the waiting time of the customers to 3 minutes per drink.

III. Causal Analysis:

Man Machine

Method Material

Insufficient knowledge

to operate the

machine.

Inexperience

workers.

Employees are too task-oriented;

they do not cross over the

boundary, upon completion of

their job.


There is

only one

sealer.

Inappropriate layout.

Inappropriate

storage of

ingredients.

Congestion at the

waiting area.

Long

Waiting

time

IV. CountermeasuresProblem(s) Countermeasures

Inexperience workers.

Send the employees for training.Insufficient knowledge to operate the

machine.

Employees are too task-oriented; they

do not cross over the boundary,

upon completion of their job.



Set standards for customers making the purchase:

a) Service

b) Drinks ordering


There is only one sealer. Introduce additional sealers to promote efficiency.

Congestion at the waiting area.

Introduce Order here and Collection point signage at the counter to reduce

confusion.

Install an additional digital counter display in the middle of the foodcourt to

increase the visibility of queue number.

Include an estimated waiting time on the queue slip.

Inappropriate layout.Shift the production line to the back of the store to increase productivity

efficiency.

Inappropriate storage of ingredients. Store the ingredients in clearly labelled containers.

What is the

new waiting

time?

Under 3mins : Target met

More than 3mins : Target

not met Review action plan andconsider other approach.

Retain plan.Follow Up

Problem Solving Theme:

To reduce the waiting time of the customers

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