Ops 571 week 5 six sigma yellow belt training ii

Patricia Lozano, Jenna Kussart, Raymond Howard, Kris Kim

OPS 571

February 13, 2019

Dr. Laron Doucet

Dr. Robert Caldwell

Six Sigma Yellow Belt Training II

1

Define

Measure

Analyze- Why is this defect present?

Improve- Implement a change

Control- Establish standards to maintain and validate

DMAIC

The DMAIC Process is used to evaluate and improve business models throughout the world. We previously discussed the Define and Measuring processes and this presentation will focus on the Analyze, Improve, and Control phases of DMAIC.

2

MOST LIKELY CAUSES OF DEFECTS

(LONG CUSTOMER WAIT TIME AND LIMITED HEALTHIER MENU)

Main Causes

- They Don’t Make it Until You Order it. “Your Food Is Fresh”

- Popularity

- Company Policy for Short Menu

Analyze Phase of Six Sigma DMAIC

In-N-Out orders take longer to be served with limited healthier menu than other similar fast food chain businesses. The main reasons are simple. In-N-Out Burger doesn’t make the food until customer orders it to keep “Your Food Is Fresh”. In-N-Out Burger becoming more popular with a relatively limited number of In-N-Out locations would be another factor. Also, the company’s policy for keeping their menu for short for years will be the main cause for their limited healthier menu choice for health conscious customers.

3

WHY LONG WAIT (DEFECTS) IS GENERATED?

They Don’t Make it Until You Order it.

(Key Variables)

- Food Prep (Vegetable) 1 Hr Prior

- Grill the Burger Meat Upon Order

Popularity

(Key Variables)

- More Customers Means More Waiting Time

- Relatively Limited Number of In-N-Out Locations

Analyze Phase of Six Sigma DMAIC

Why long wait at In-N-Out Burger is generated and what are the key variables most likely to create process variation?

First, In-N-Out Burger doesn’t make the food until customer orders it. All the lettuce was leafed that day, the tomatoes and onions were sliced around an hour before, and the burger didn’t hit the grill until you asked for it. As the most of general public know, the food at In-N-Out isn’t sitting around - they don’t make it until customer orders it.

Second, In-N-Out Burger’s Popularity. As In-N-Out become a traveler’s destination or a hangout place for large or small groups, more customers mean more time to wait for their foods are freshly cooked and served. Combine that with the relatively limited number of In-N-Out locations, and you’ve got a recipe for longer-than-the-other-guy wait times.

4

IDENTIFY NECESSARY/UNNCESSARY PROCESS STEPS

Necessary Process Steps

- Quality Driven Fresh Food Prep

- Advance Ordering System

Unnecessary Process Steps

- One Standard Layout for Kitchen

- One Centralized Grill Station

Analyze Phase of Six Sigma DMAIC

What are the necessary process steps and unnecessary process steps for a long customer wait time?

As In-N-Out Burger values the quality of burger as the primary concern, fresh food prep and cooking are the necessary process steps that need to be maintained. That makes the In-N-Out Burger is much different than other hamburger chains that serve their food pre-cooked, packaged, and frozen in a facility that might be hundreds of miles away, then trucked in and reheated when customers order. Currently, In-N-Out Burger only offers limited in an advance order for a party meal but not for normal order. They have an app, but just need to enable online ordering from it.

For the unnecessary process steps, In-N-Out Burger has a company policy that their kitchen has one standard layout for food preparation stations and one centralized grill station. With operating one centralized grill station, the cooks are grilling beef patties and baking buns with various type of order which works fine during non-peak hours. However, during the peak hours, their productivity is suffered and takes a longer time to prepare on various type of orders. These will cause a longer customer wait time.

5

Improvements must be made while adhering to fresh policies

Unnecessary policy is limiting each store to one grill station

- Implement use of multiple grill stations at identified locations

- Allow local store managers flexibility regarding when to utilize

additional stations

Improve Phase of Six Sigma DMAIC

The idea that the food is fresh made to order is non-negotiable. This is the single most important aspect of In-n-Out’s uniqueness.

Policies which do not suit the needs of individual stores are not effective because they assume that all locations experience the same variables and/or customer loads.

Implementing the use of additional grill stations at a select number of stores will allow for assessment of the process and data gathering. The risk to spending above the profit is

minimized when the process improvement efforts are introduced on smaller scales.

6

Key Variables

- Errors in processing orders

- Available floor space and or/layout

Effects on Critical to Quality (QTC) Characteristics

- Increased errors would be counterproductive and lead to

even longer wait times

- Store layout limitations could hinder wait time improvements

Improve Phase of Six Sigma DMAIC

- The key variables are those aspects of the improvement phase that could vary as a result of the improvement process and cause improvement efforts to be less effective.

One of the key aspects of the customer experience at In-n-Out is the simple menu and subsequent low number of order errors. While introducing additional grill stations would not change the menu, it would bring in to play the opportunity for increased processing errors. This is a key concern.

Customer wait times are indeed a QTC characteristic. Errors could lead to the opposite of the desired outcome in some cases and cause wait times to actually increase.

The addition of additional grill stations is dependent on space availability. This means that this particular variable is key to determining whether or not a particular store could be a candidate for these additions.

7

The problem

Unhealthy burger and fries (Davies & Taylor, 2014).

Causes

High cholesterol amount (standard amount per day not more than 300 milligrams)

Spoiling (stored not more than 3 days)

Acceptable range of Variable Change

Cholesterol should be more than 300 mg less than 3 per week

Spoiling should occur once a week.

System for measuring Variable Deviations

A register of customer complains about excess cholesterol or spoiled burgers and fries (Slack, Brandon-Jones & Johnston, 2017)

IDENTIFY THE MAXIMUM ACCEPTANCE RANGES OF THE KEY VARIABLES AND A SYSTEM FOR MEASURING DEVIATIONS OF THE VARIABLES

Unhealthiness is one of the issues with having a burger and fries place to eat such as In-and-Out. Most of them are associated with high amounts of cholesterol and spoiling before consumption (Davies & Taylor, 2014). According to health standards, Davies and Taylor (2014) say humans should consume only up to 300 milligrams per day and should not consumer burgers or fries that have stayed for more than 3 days after their preparation. As such, suppliers are supposed to put all these standards in mind for their smooth running. However, since they will still occur in one way or the other, they should not seek to eradicate them as a strategy to improve the quality of their products, but to reduce the unhealthy cases occurrences to the most minimum level. In our context, we must make sure that the cases of excess cholesterol do not happen more than three times in a week. On the other hand, one must restrict spoiled burger and fries’ cases to less than 2 times in a week. To measure this variable, we will use a special register program, where we will record all cholesterol and spoiling cases on a weekly basis. We will then use the data to develop a graph of quality performance from which we will be able to monitor the organization.

8

New burger and fries storage facilities

Less cholesterol ingredients and raw materials

High competent cooks

MODIFY THE PROCESS TO STAY WITHIN AN ACCEPTABLE RANGE

It is dangerous to exceed the maximum set standards. As such, there must be a way of ensuring that the quality performance remains within the acceptable range. For our case, we will consider reducing the amount of cholesterol from burger by using ingredients that have less cholesterol. We will also introduce a new storage system and technology to deal with the spoiling problem besides hiring highly competent cooks.

9

Free Range Chickens

Better nutrition

Lower cholesterol

No antibiotics or hormones

Monitoring & Controlling the Improvements

Identify trigger point & define new process standards

Designing a visual control system

Takt board analysis

Maintaining The Improvement

Free Range Chickens – With the modo “Always Fresh. Never Frozen” we must provide the best chickens out there. Free range chickens would be ideal to honor hour mission statement. Free range chickens are not treated with hormones or antibiotics. Outdoor access reduces the stress level and aggression behaviors towards one another, and you see this in caged chickens. Free range chickens are also lower in cholesterol than cages chickens,

Monitoring & Controlling the Improvements – After the process improvement is underway, we would need to define a new process standard and build measures and triggers that will alert you to take action if a particular variable is underperforming, in our case, chicken. The trigger points will allow us to keep track by warning us when key metrics are not where they should be. Visual control systems are designed to help you immediately identify a step in the process flow. It will identify if there is a given task that is not being met or if there is a reoccurring problem somewhere in the process.

Takt Board – This will help in keeping track of the of the process time. How long does it take for a burger, and how long does it take for chicken? How much longer are our customer waiting? The takt process will help to optimize the process time with the right resources, staff and speed to match our demands.

10

Key Variables For Maximum Acceptance Under Modified Process

Personal Training

On-The-Go Adjustments

Documentation

Tools In Place

Personal Training – Every time a new system is updated to improve or add a process, it is important to retrain the team members so that everyone is on board with the new metrics for success. There also needs to be a consistency of updates so that new team members are trained with the most recent process protocols.

On-The-Go Adjustments – No process improvement happens perfectly the first time, or second time as your project is underway. We all need the right tools and the insights to help make adjustments. The process control will allow for us to make adjustments while keeping an eye on new metrics for success, ensuring we never deviate from our goal even when we have to alter a step.

Documentation – Process monitoring tools are critical for documenting your process steps and performance metrics in case of a compliance audit or report to senior management. With regular, solid data the process the improvements in a process will be much stronger.

11

CONCLUSION

12

REFERENCES

Ceros Originals (2017), The Legendary Allure of In-N-Out Burger, Retrieved from

https://www.ceros.com/originals/in-n-out-legend/

Davies, S., & Taylor, K. (2014). Naked Kitchen Veggie Burger Book: Delicious Plant-Based Burgers, Fries, Sides, and More. Lanham: Lyons Press.

F. Robert Jacobs; Richard Chase (2018), Operations and Supply Chain Management, 14th Edition,

McGraw-Hill Irwin

In-N-Out, Chick-fil-A & Panera Bread recommended most by own customers (2016), Marzilli, T. Retrieved from

http://www.brandindex.com/article/n-out-chick-fil-panera-bread-recommended-most-own-customers

In-N-Out Shuts All Of Its Texas Locations Due to Bad Burger Buns (2018), Rodriguez, M. Retrieved from

http://fortune.com/2018/06/12/in-n-out-bad-buns-texas/

J. DeLayne Stroud, Retrieved from https://www.isixsigma.com/methodology/voc-customer-focus/defining-ctq-

outputs-key-step-design-process/

Process Performance Metrics — Business Analyst Learnings, Retrieved from

https://businessanalystlearnings.com/ ba -techniques/2017/.../process-performance-metrics

Sic ways In-N-Out Burger is excelling in business (2017), by Kathy Williams Beydler, Retrieved from

https://www.beckersasc.com/asc-turnarounds-ideas-to-improve-performance/six-ways-in-n-out-burger-is-excelling-in-business-and-five-applications-for-healthcare-today.html

Slack, N., Brandon-Jones, A., & Johnston, R. (2017). Operations management. Cape Town: Pearson.