Economics of Manufacturing
Transcript of 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
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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
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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
Objective 2 is achievedWorkspace is improved.
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
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77 Waste - Motion
Objective 2 is achievedWorkspace is improved.
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
Fig. 2: Current workspace layout
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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.
Fig. 4: Current workspace layout
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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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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.
Organize teambuilding activities.
Set standards for customers making the
purchase:
a) Service
b) Drinks ordering
c) Drinks collection
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
c) Drinks collection
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.
No customer service standard.
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.
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 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