Management and Starbucks
Analysis the operations management of Starbucks
Operations management concentrates on managing process. All operations focus on the process of input, transformation and output. Operations management will concern about the cost of ingredients, labor requirements, and customer satisfaction. (Heizer, J, p, 39). So all the operators need to concentrate on some main objects of operations management such as capacity, quality, variability, and queuing. They should treat the task of balancing the supply with demand as their primary work. This essay will introduce the idea of how the operations are performed in Starbucks and how the relation between supply and demand is influenced. In the first section it will clarify the capacity and demand management. Regarding the second section it will point out the method in Starbucks to balance the supply and demand in quality aspect. Quality is the soul of a company,said Schurz in 2003. And the author can not agreed any more about this. For the final section it will discuss about the strategies which made by Starbucks to eliminate the problems occurred in queuing.
Capacity management used to be called “demand management” (Crandall and Markland, 1996) or “managing capacity and demand” (Fitzsimmons and Fitzsimmons, 2004). Capacity management attempts to ensure the service runs well and satisfy the visitors’ requirements(Klassen and Rohleder, 2002). In terms of MRP, namely the material requirement planning, MRP is a manufacturing project as well as practical technology. It begins with defining products based on forecasting of market demands and customers' order. Following this, a plan based on the producing progress of products, products' material form and stock situation is formed. With the help of computer to calculate the needed amount and time, it then can clarify the manufacture progress and order schedule (Ptak, 2011). Starbucks uses an algorithm named thousand dollar consumption algorithm to calculate the safety
Operations management concentrates on managing process. All operations focus on the process of input, transformation and output. Operations management will concern about the cost of ingredients, labor requirements, and customer satisfaction. (Heizer, J, p, 39). So all the operators need to concentrate on some main objects of operations management such as capacity, quality, variability, and queuing. They should treat the task of balancing the supply with demand as their primary work. This essay will introduce the idea of how the operations are performed in Starbucks and how the relation between supply and demand is influenced. In the first section it will clarify the capacity and demand management. Regarding the second section it will point out the method in Starbucks to balance the supply and demand in quality aspect. Quality is the soul of a company,said Schurz in 2003. And the author can not agreed any more about this. For the final section it will discuss about the strategies which made by Starbucks to eliminate the problems occurred in queuing.
Capacity management used to be called “demand management” (Crandall and Markland, 1996) or “managing capacity and demand” (Fitzsimmons and Fitzsimmons, 2004). Capacity management attempts to ensure the service runs well and satisfy the visitors’ requirements(Klassen and Rohleder, 2002). In terms of MRP, namely the material requirement planning, MRP is a manufacturing project as well as practical technology. It begins with defining products based on forecasting of market demands and customers' order. Following this, a plan based on the producing progress of products, products' material form and stock situation is formed. With the help of computer to calculate the needed amount and time, it then can clarify the manufacture progress and order schedule (Ptak, 2011). Starbucks uses an algorithm named thousand dollar consumption algorithm to calculate the safety