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Dunkin Donuts Presentation

Lean-6 Sigma Approach

Zechariah Abraham

on 16 January 2013

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Transcript of Dunkin Donuts Presentation

$19M 2011 December 2012 Work Sampling Proposed Method 1 Improves Work Flow Faster Times Layout Changes Harvard Business Review How to lower the cost of enterprise sales? Zechariah Abraham
Sunny Rathor
Nang Quach
Alicia Gaston
Prince Mingle Present Sorting Equipment Redesign Present Method DMAIC Application Assumptions: Combinations of Orders Beverages: 6 workers available at any given time
All workers are competent and equal
3 people in line to be busy
Workers are cross trained 8 Difficulties with Work Sampling Profits per year Operations What to do? Background Set in Order Tools 5S Implementation Difficulties Dunkin Donuts is a multinational corporation

Rutgers Dining Services runs LSC Dunkin Donuts

Bain Capitol is an equity holder Lean-Six Sigma Techniques
Work Design Principles Continuous Improvement Change the we flow by changing the workspace way How Dunkin Donuts Dunkin Donuts Employees
Management Thank You Present MOST Analysis Don't forget to call your Mom! Coffee Learning Curve/Diminishing Returns 676 $45M $29M Diff 77 $16M Speed Increase 10% T H N A K Y O U P R E Z I Douwe Egberts C60 Why What How Dunkin Profits Year 1 Year 2 Year 3 Increasing Perpetual Dunkin Founded in 1948

10083 locations World Wide

Planned Expansion to 15000 locations by 2020

Franchisee reported sales exceeded $6 billion Dunkin A Lean-Six Sigma Study Donuts Cut back on order completion time. Influx of customers at specific peak times

Line is easily backed up

Employees often have idle time

Inefficient use of current layout

Cluttered work space Hot Beverage Prepared Beverage Total Possible Combinations: Average Process Time

6 Workers Moving

Small Workspace In general - Register: A1M1X10A1G1M1P1G1X10A1P1 = 290 TMU = 10.44 sec

Coffee (w/Pot) - Support/Floater : A1G1P0I1A1G1P6M1I1P1G1P3A10P1 = 290 TMU = 10.44 sec

Prepared Beverage- Support/Floater
:A6G1P0I1M1X6M1A1I1M1A1I1M1G1P3A10P1 = 380 TMU = 13.68 sec

Donut - Support/Floater : A6G1M1P0A1G1P1M1A6P1 = 190 TMU = 6.84 se

Coffee (w/push button) - Support/Floater : A1G1P0I1M1X6M1G1P3A10P1 = 260 TMU = 9.36 sec

Prepared Beverage- Support/Floater : A1G1P0I1M1X6M1A1I1M1A1I1M1G1P3A10P1 = 330 TMU = 11.88 sec

Donut - Support/Floater : A1G1M1P0A1G1P1M1A6P1 = 140 TMU = 5.04 sec Proposed MOST Analysis Problems Observed Objective Employ Work Design Principles and Lean - 6 Sigma Methods to Improve the Current Method of Order Completion ` Goals Improve work environment Reduce customer wait time Food: Donut Hot Sandwich 1.08 sec faster 10.44 sec 9.36 sec Traditional Coffee Pot 10% improvement What why Why What How Problems Encountered Scheduling Conflicts
Unable to be behind the counter
Unable to film or take photos
Must be busy to collect data
Learning Curve
Plateaus (prevents kaizen) Sustain Lessons Learned Real Life Applications
Working with Management Queue Model ORDER START Remove Extra Supplies Utilizes primitive order processing methods Does not account for influx Organize Supplies by Area Poor Queue Layout Inefficient Workspace Layout Does not utilize modern technology Shine Zone-Style Configuration Ergonomic Configuration Morning Afternoon Standardization Pre-order System Preorder Implementation into the Dunkin Donuts App

iOS, Android and Windows 8 Implementation steady state phase Douwe Egberts C60 Coffee Machine - $400 a monthCommercial TV Screen - $800Layout Redesign- $15000-$25000 Cost Analysis
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