Real Life Process: Efficiency versus Corporate Goals

(Adopted from Operations and Supply Chain Management by Robert Jacobs and Chase)

Consider the following process improvement idea at a local coffee shop.

The process improvement idea is to improve the efficiency with which the coffee shop provides value to their customers by reducing the wait time, reducing the length of the line, and delivering the coffee faster.

The Problem: Why is it that regular coffee drinkers wait in the same line as drinkers of a double latte cinnamon Frappuccino, which takes much longer to prepare?

Idea:Give the regular coffee drinkers their own line. Simple, yet brilliant.

So, armed with good intentions, the consultant approached the coffee shop owner and explained the idea of having two-line, one for regular coffee drinkers and the other for exotic drinks.

The coffee shop owner agreed that it was indeed his goal to make more money at the shop. Further, he explained that the constant needs to understand that it is during this pause provided while waiting in line and prior to pouring coffee that patrons peer into the pastry case, and decide they want a coffee and a pastry! The consultant was amazed at the coffee shop owners' perfect logic and very effective process. It was, in fact, a beautiful thing. The consultant learned that always being fast did not always maximize profit.

The most efficient process does not always attain your business goals. It is imperative that the process and goal be aligned also. Also, learn to appreciate the process that is in place and the businesspeople that designed it. The people that designed the current problem may have known what they were doing. It is essential for you to study all aspects of the process before proposing changes that may make no sense.

Questions-

1. What suggestions will you provide as an operational manager?

2. Do you think that the coffee shop owner was right in his/her approach?