Operations Are Composed Of Many Different Processes To Fulfi ✓ Solved

Operations Are Composed Of Many Different Processes To Fulfill

Operations are composed of many different processes to fulfill customer needs and requirements. The value chain is a higher-level view of those processes from a customer view. In order to meet customer requirements like quality and cycle time, organizations need to identify the value chain, subprocesses and measures needed to meet the customer needs. Consider a process from an organization you are familiar with. In words, complete the following:

  • Identify the steps in the high-level value chain required to fulfill the customer requirements from beginning to end.
  • From the high-level value chain steps, identify the operational subprocesses.
  • Identify those metrics that the organization should monitor at both the value chain level and subprocess level.
  • Based upon the process you described above, if an organization needs to improve a process within the value chain, how would you analyze the process and metrics to know that the process is not working?
  • Explain what steps the organization could take based upon your analysis for value chain improvement.

Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.

Paper For Above Instructions

The value chain is a concept introduced by Michael Porter, and it describes the full range of activities that businesses engage in to bring a product or service from conception to delivery. In this discussion, I will analyze the high-level value chain of a familiar organization, Starbucks, to fulfill customer requirements.

High-Level Value Chain Steps

Starbucks’ high-level value chain operates through several steps to ensure they meet customer needs effectively:

  1. Sourcing of Raw Materials: Starbucks sources high-quality coffee beans from sustainable farms worldwide, ensuring ethical sourcing and premium quality.
  2. Production: The coffee is roasted and ground to meet a high standard of quality before being shipped to retail locations.
  3. Distribution: Products are distributed to stores efficiently to maintain freshness and readiness for customer service.
  4. Marketing and Promotions: Starbucks invests in strong marketing strategies, including loyalty programs, seasonal promotions, and digital marketing.
  5. Customer Experience: This includes providing a unique in-store atmosphere, training baristas to ensure product quality, and offering excellent customer service.
  6. Feedback and Improvement: Collecting customer feedback through various channels for continuous improvement.

Operational Subprocesses

Breaking it down further, the subprocesses involved in each high-level value chain step can be identified:

  • Sourcing Subprocess: Supplier relationships management, quality assurance of raw materials.
  • Production Subprocess: Roasting, grinding, and packaging coffee.
  • Distribution Subprocess: Inventory management, logistics planning, and transportation.
  • Marketing Subprocess: Campaign planning, market research, and advertising.
  • Customer Experience Subprocess: Staff training, store layout design, and service protocol development.
  • Feedback Subprocess: Surveys, customer service interaction analysis, and adaptation of offerings based on customer preferences.

Metrics for Monitoring

To ensure operational efficiency, Starbucks must monitor specific metrics at both the value chain and subprocess level:

  • Value Chain Level Metrics:
    • Customer satisfaction scores.
    • Sales growth rates.
    • Market share analysis.
    • Brand loyalty measurements.
  • Subprocess Level Metrics:
    • Supplier delivery times.
    • Production efficiency ratios.
    • Inventory turnover rates.
    • Customer service response times.

Process Evaluation and Improvement

If Starbucks needs to improve its coffee sourcing process within the value chain, an evaluation might include assessing supplier performance data, quality indices of raw materials, and customer feedback on product quality. Metrics can show trends in supply issues or quality inconsistencies that highlight inefficiencies or weaknesses in the current sourcing strategies.

To analyze whether a process is not working, one could utilize the PDCA (Plan-Do-Check-Act) cycle. This method helps identify problems, implement changes, and review the effectiveness of those changes. If sourcing issues impact product quality, using metrics like supplier delivery times and quality indices could reveal shortcomings prompting action.

Steps for Value Chain Improvement

Based on the analysis of sourcing inefficiencies, several steps could be implemented for value chain improvement:

  1. Enhance Supplier Evaluation: Establish more stringent criteria for suppliers to ensure high-quality sourcing.
  2. Expand Supplier Base: Diversifying suppliers can reduce dependency and risk.
  3. Implement Technology: Use data analytics for real-time supplier performance tracking and decision making.
  4. Strengthen Relationships: Foster closer relationships with existing suppliers to improve delivery reliability and quality assurance.

Conclusion

In conclusion, Starbucks’ value chain incorporates multiple steps to fulfill customer needs, from sourcing high-quality materials to providing an exceptional customer experience. By identifying operational subprocesses and relevant metrics, organizations can evaluate and improve their operations. Starbucks can continue enhancing its value chain by analyzing metrics and implementing improvements in response to identified issues.

References

  1. Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
  2. Harvard Business Review. (2019). How targeted ads and dynamic pricing can perpetuate bias. Miller, A. P., & Hosanagar, K.
  3. Shrestha, S. (2017). Service failure and service recovery.
  4. Starbucks Corporation. (2021). Our Global Sourcing Standards. Retrieved from https://www.starbucks.com/responsibility/sourcing
  5. McKinsey & Company. (2020). The Productivity Imperative for a Post-Pandemic Economy.
  6. Jiang, Y., & Muthusamy, S. (2021). Supply Chain Sustainability: A Comprehensive Review of the Literature. Supply Chain Management: An International Journal.
  7. Data Governance Institute. (2017). Data Quality Metrics: A Practical Approach.
  8. Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business School Press.
  9. Ferguson, R. (2020). Exploring Consumer Loyalty in Relationship to the Service Experience. Journal of Marketing Theory and Practice.
  10. Walters, D. (2018). Strategic Supply Chain Management: Principles and Practice. Kogan Page.

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