project of operation management

COURSE : EPPM 3014 ---OPERATION MANAGEMENT

LECTUER : PN. SHAZLINDA

PROJECT : ANALYSIS OF OPERATION MANAGEMENT OF STARBUCKS
With human resource in operation management ; supply chain management and designing services

MEMBERS OF GROUP :

GENGTIANRAN A126500

LIWEI A126501

A126494 songnan

A126528 yangshuo

A126496 chenglixing

A126487 wanglin

CHAPTER 1 . DEFINATION AND INTRODUCTION




1.1 Definations
operation management: the design ,operation , and improvement of productive system.




Operation : a function or system that transforms inputs into outputs of greater values.




Supply chain management (SCM) : requires managing the flow of information through the supply chain in order to attain the level of synchronization that will make it more responsive to customer needs while lowering costs.




Human resource management (HRM) : is the strategic and coherent approach to the management of an organization's most valued assets — the people working there who individually and collectively contribute to the achievement of the objectives of the business.




Service Design is the activity of planning and organizing people, infrastructure, communication and material components of a service, in order to improve its quality, the interaction between service provider and customers and the customer's experience.




1.2 Introductions of Starbucks

The world’s top specialty coffee retailer, Starbucks has more than 16,000 coffee shops in 44 countries. Starbucks owns more than 8,500 of its shops, mostly in the US. The company also owns the Seattle’s Best Coffee and Torrefazione Italia coffee brands. In addition, Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products. Starbucks coffeehouses have become a beacon for coffee lovers everywhere. Why do they insist on Starbucks? Because they know they can count on genuine service, an inviting atmosphere and a superb cup of expertly roasted and richly brewed coffee every time.

Starbucks-wide diversity strategy focuses on four areas: partners, customers, suppliers and communities.

• Partners (our employees) - Starbucks seek out and engage partners who are as diverse as the communities we serve. Focusing on partner development by educating and engaging our partners.
• Customers - Starbucks extend the Starbucks Experience to all customers, recognizing and responding to their unique preferences and needs. Ensuring an exceptional customer experience by connecting with our customers in a culturally relevant way.
• Communities - Starbucks support and invest in local neighborhoods and global communities through strategic partnerships and economic development opportunities that deepen our ties with the communities we serve.
• Suppliers - Starbucks are a trusted and welcoming company for suppliers through our supplier diversity program that works to increase our pipeline of minority and women owned suppliers.

Starbucks is dedicated to creating a workplace that values and respects people from diverse backgrounds, and enables its employees to do their best work. We honor the unique combination of talents, experiences and perspectives of each partner, making Starbucks success possible.




Starbucks Mission
Mission statement : to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.




Starbucks Organizational functional structure ( figure 1.1)
Figure 1.1

So according to the structure of Starbucks , the operation management should focus on the human resource in operation management ; supply chain management and designing services . Because the coffee service industry have their unique particularity which is different from other eating service fields . these three important operation management are supposed to the basic analysis. And next chapter will make the detail analysis on the issues of operation management items .


CHAPTER 2 . OPERATION MANAGEMENT COVER THE STARBUCKS





2.1 Starbucks' Supply Chain management




2.1.1 Issues of supply chain: Starbucks' team looks to reduce risk through training, surveillance and supply chain programs - and to keep up with rapid growth When he describes the security function's goals at Starbucks Coffee Co., Francis D'Addario shares a 13-syllable mantra: Protect people. Secure assets. Enable mission.

Those six words inform everything the Starbucks security team does, from keeping coffee buyers safe on trips to Indonesia and Ethiopia, to helping coffee baristas understand what to do if there's an attempted robbery, to monitoring coffee shipments from farm to roasting plant to corner store.

D'Addario, vice president at Starbucks, and members of his security team—Elizabeth King, vice president, information management services; Sean Dettloff, manager, partner and asset protection; and Rick Gipson, director, U.S. partner and asset protection—gave an overview of the company's asset protection strategies to about 200 attendees at the CSO Perspectives conference here.

Among the points the Starbucks team made:
• Their challenges increase because the $7.8 billion company with 13,000 stores in 40 countries is growing so fast, about 20 percent annually, opening up on average six new retail outlets daily. D'Addario said Starbucks security focuses on identifying risk and investing in risk mitigation measures that show return on investments; authenticating partners, trusted agents and goods providers; building a global view of operations that reports exceptions. The company also seeks continuous improvements in people, process and technology "in a culturally relevant way."
• The security team has built what it calls "Enterprise Security Platform," a central security facility that "converges enterprise and physical security," by monitoring critical facilities, retail stores, as well as monitoring conditions around the globe.
• Container security is a key part of supply chain management. Starbucks uses video monitoring of loading facilities, to capture images of loading and sealing containers with "container security devices" a magnetic device that tracks the closing of the container doors, its opening, and temperature and humidity along its journey. The device also is capable of uploading data from third party logistics providers. And it detects tampering. (Starbucks rejected using RFID or GPS devices as not worth the cost, Dettloff said.)
• A cross-functional governance council sets company policies for the company. Starbucks has built an electronic policy library to help employees know what to do and how to do it.
• Security provides in-store training to employees to help them understand how to handle risky situations, from customers who turn violent to criminal activity. Design elements also provide for lighting and clear visibility into stores. Future enhancements call for furniture designed to help consumers protect their handbags and laptops, Gipson said.

2.1.2 Supply Chain Management summary : Starbucks has established a comprehensive sustainable supply chain strategy through cooperation with Conservation International and other partners. In fiscal 2004, Starbucks introduced the Coffee and Farmer Equity (C.A.F.E.) Practices criteria. While these criteria primarily focus on issues of social and economic responsibility, they do include guidelines for coffee farmers to conserve water and energy use. In 2007, Starbucks introduced a new scorecard for C.A.F.E. Practices and launched an online reporting system for verification organizations to submit reports. Starbucks works with Scientific Certification Systems (SCS) to oversee the verification system.

Starbucks has also begun to engage its supply chain on climate change mitigation issues. In 2007, the company reached out to 387 of its largest suppliers in the US encouraging them to purchase renewable energy certificates (RECs) through the company’s preferred rate contract. While only 11 suppliers took advantage of the opportunity, it is an innovative model for large purchasers of renewable energy to multiply the effects of their commitment along the supply chain and grow overall demand for renewables
.
In terms of packaging, in 2006, Starbucks introduced hot beverage paper cups containing 10 percent post-consumer fiber in its US and Canada stores. Th ese cups reduce the wood needed as a raw material as well as the energy used to produce them. In fiscal 2007, Starbucks also began a lifecycle assessment of polylactid (PLA) plastic resin, an alternative material made from corn that the company is considering using in cold beverage cups. The figure 2.1 show the supply chain system of Starbucks .
Figure 2.1 supply chain system of starbucks

2.2 Human Resources Management at Starbucks :
2.2.1 Issues of HR management at Starbucks
:
1. To study the human resource management policies of a large service-oriented retail company
2. To appreciate the value of motivated and committed employees in service-based industries
3.To understand the relationship between positive human resource management policies and work culture and employee motivation
4. To analyze the importance of employee retention vis-à-vis rising human resource costs
5.To examine the human resource challenges faced by the company as it embarked on its expansion plans



2.2.2 Management strategy of human resource in Starbucks:


Starbucks realized early on that motivated and committed human resources were the key to the success of a retail business. Therefore the company took great care in selecting the right kind of people and made an effort to retain them. Consequently, the company's human resource policies reflected its commitment to its employees.

Starbucks relied on its baristas and other frontline staff to a great extent in creating the 'Starbucks Experience' which differentiated it from competitors. Therefore the company paid considerable attention to the kind of people it recruited. Starbucks' recruitment motto was "To have the right people hiring the right people."

Starbucks hired people for qualities like adaptability, dependability and the ability to work in a team. The company often stated the qualities that it looked for in employees upfront in its job postings, which allowed prospective employees to self-select themselves to a certain extent.

Having selected the right kind of people, Starbucks invested in training them in the skills they would require to perform their jobs efficiently. Starbucks was one of the few retail companies to invest considerably in employee training and provide comprehensive training to all classes of employees, including part-timers.

2.3 Service designing of Starbucks :

The figure 2.2 show The Starbucks service design process

2.3.1 The Starbucks service design process

The mainline process begins in position where concepts are developed, presented and approved, Agreed concepts continue to designing phases of the process, which detailed implementation of the design is carried out, final approvals are obtained and prepress work commences.

• Theme selection

Design at Starbucks begins with a strategic planning process to select key concepts, themes and palettes for the coming year. Stores carry seasonal themes and the Global Creative team works with the store design team and other top-level stakeholders to decide on these themes, taking input from the trends group and
customer insights.

Each theme requires a full suite of materials. Once the theme has been established, individual design projects follow the design process. Project managers work with the design customer to prepare a brief for the project and to agree budgets and schedules.

• Concept development

The design process itself begins with a creative community, a meeting in which members of the Global Creative department brainstorm ideas and generate concept ideas. After the initial concept meetings, a single designer, paired with a copywriter or other specialist , typically takes design projects forward. Together, they develop a concept for the project which is reviewed and approved internally—measured against the five word filter before being presented, reviewed and approved or rejected by the customer. Once concept approval is underway, the designer works to generate a first draft of the project. This again is reviewed internally and for any potential legal, or customer sensitivity issues. The first layout is then delivered to the client for approval. Once approved, more costly aspects of the process—specific photo shoots, for example,
which are completed and the designers produce the final product for evaluation.

• Approval

Once all required stakeholders have approved the production—ready concept, it enters the manufacturing or print process.

• Delivery

The importance of internal communication and the acceptance of designs is acknowledged during the production phase too. Shop floor representatives are involved in final product reviews and part of the design process is the production of photographic instructions to help store management to install and arrange new items correctly once delivered.

• Evaluation

Front line staff and customer feedback are central to the design evaluation process at Starbucks.

Starbucks has worked hard to develop effective mechanisms to link the development of the brand directly to the customer experience. One aspect of this approach is a concentration on internal communication with the thousands of individual baristas who are the brand’s direct connection to its customer base.

Customer feedback is provided directly through a consumer insights group that talks to customers and directs their feedback to the business. A sophisticated feedback mechanism from the stores also ensures that all customer feedback is collected and acted upon.

• Supposed Case of Service Design

Starbucks in America has a large number of fans who love the products and services at Starbucks, and can be seen many customers rest and dining at Starbucks every day. It could be supposed that the customers arrive randomly to enjoy the products and service at an average rate of 9 per hour. This arrival process is approximated by a Poisson distribution. Customers spend an average of five minutes either transmitting or receiving items. The time spent using the machine is distributed according to a negative exponential distribution. Employees line up in single file to use the machine, and they obtain access to it on a first-come, first-served basis. There is no defined limit to the number who can line up to use the machine.

CHAPTER 3 CONCLUSION

After the analysis from the chapter 2 , the three main operation managements provide the structure of Starbucks coffee industry service .

Consumer concern around climate change gives the company an opportunity to engage its customers regarding their ability to mitigate GHG emissions through their daily choices. While this does not create opportunities for new products or services, Starbucks believes that it can have a large impact through marketing messages to consumers, as well as through protecting global coffee-growing communities from climate change impacts.

Employees can get supports a Transportation Options Program at the company headquarters in Seattle, Washington to use public transportation and alternatives such as biking and carpooling. In fiscal 2007, approximately 37 percent of employees participated in the program. Starbucks also contracts with Zipcar , a car-sharing network that provides vehicles for employees.







TASKS :

CHAPTER 1 AND 2 ( SUPPLY CHAIN AND HUMAN RESOURCE) MADE BY GENGTIANRAN a126500

CHAPTER 2(DESIGNING SERVICE ) AND CHAPTER 3 MADE BY LIWEI a126501

OTHER PARASITES DIDI NOTHING.
















REFERENCE :
NASDAQ –SBUX RESTAURANTS in “Corporate Governance and Climate Change: Consumer and Technology Companies”of “Starbucks corporation” summary . score 52.
Allwin & Professor Paul A. Argenti in “Tuck School of Business”of “Starbucks Coffee Company” no. 1-0023




http:// www.starbucks.com
“Strategy $ competition”




http://www.slideshare.net/luisenrique.espinosa/design-at-starbucks
“Design at Starbucks”




http://www.designcouncil.org.uk/Case-studies/Starbucks/The-Starbucks-design-process/ ‘The Starbucks design process”




http://www.csoonline.com/article/221299/starbucks-supply-chain-a-global-view-on-a-global-brew ” Starbucks' Supply Chain: A Global View on a Global Brew”




http://www.icmrindia.org/casestudies/catalogue/Human%20Resource%20and%20Organization%20Behavior/HROB068.htm “Starbucks' Human Resource Management Policies and the Growth Challenge”