JIT AND LEAN OPERATIONS

STARBUCKS
JUST IN TIME SYSTEM

 This system is practiced especially when it comes to serving coffee.

 Customers who prefer to customize their coffee by adding extra condiments such
as sugar, creamer and flavors can tick their preferences on the form and submit it
to the counter with their name on it. In less than 10 minutes, the desired cup of
coffee would be served to the respective customer.
 Customers can place their order or submit the order form at the first station and
move on to the third station to pay the bill. In the second station, the order’s
processed and sent to the third station where by there will be a server as well as a
cashier. While the cashier handles the bills, the server calls out the orders and
delivers it to the customers.
TOTAL QUALITY MANAGEMENT

 Produced a coffee manual that is available at all of its 16000 plus

outlets, guiding them on how to brew the coffee and make it in the
special “Starbucks Way”.
 Providing a “Third Home Environment”
INVENTORY MANAGEMENT

 Starbucks does its shipping and ordering in two ways. The first is for the retail of the
store using the P-system. This order is placed every seven days with a three day
lead time. The second order is done on a daily basis using EOQ. This order has a
two day lead time.
 On a corporate level, the Starbucks roasting plants/warehouses use a Q-system
and a P-system as well. Starbucks uses the Q-system for roasting their coffee. The
plants use P-system for all other products. These products are bottled for
Starbucks by the Pepsi Bottling Corporation and are shipped only on a monthly
basis to the plants.
HUMAN RESOURCE MANAGEMENT

 Every partner/barista hired for a retail job in Starbucks store

received at least 24 hrs training in the first 2-4 weeks.
 Every employee has to master the “Star Skills”

Starbucks is known to have the best management team and staffs

because Starbucks number one mission statement is “provide a great
work environment and treat each other with respect and dignity.”
LEAN MANUFACTURING PLAN

 Lean / Total Productive Maintenance (TPM) : This approach effectively reduce

inventories by increasing the machine effective operational run-time with
minimum down-time.
 JIT/ Work-cell Improvement Plan:“JIT” approaches are plan to streamlining the
one-piece of materials flow rate in production lines in a “work-cell’ production
concepts.
 Changeover/ Setup time Reduction: by implementing the JIT/ Lean work-cell
production concepts, the new production line had increased the effective
equipment utilization run-rate to as much as 90% and also reducing the inventory
space occupy by batch-processing WIP as much as 80%-90% as well.
LEAN MANUFACTURING PLAN

 Implementing Total Quality Control (TQC) or Kaizen event: Kaizen

event or blitz usually involved all employees and partners at the
production floor.
 Safety and Health Consideration: By creating a safe, neat or tidy
and production visible process, employees (partners) are happy to
work here and motivated to eliminate the wastes and un-safe act
at all time.
 OTHER INNOVATIVE AND STRATEGIC
APPROACHES

 These new corporate strategic approaches may involve the following key
improvement and lean initiatives as listed down below:
C.A.F.E. Ethical Practices
Lean Deliveries Strategic Actions: JIT and MRP
Strengthen Distribution Centre and Manufacturing Facilities