Starbucks Tests "Lean" Operations In Some Stores
Starbucks Gossip: Starbucks tests “lean” operations in Ohio and
Kentucky stores
We’ve known for some time that Starbucks has been trying to figure
out how to use Lean principles in their stores. If you click on the
“Starbucks” tag at the bottom of the post, you can see some of the
archives.
This recent post from the Starbucks Gossip blog discusses some
details of the pilot program “Lean” operations in Ohio and
Kentucky.
What does this entail?
Basically, the
backlines of stores are being completely re-arranged and the
processes for labor deployment plus customer drink crafting are
being re-engineered to:
- Increase
efficiency/speed of service- Maximize lower
labor levels- Save the company
money/resources- Follow the
“Shared Planet” platform (environmentally
friendly)- Prevent
workplace injuries
Sounds OK — changing the layout, engineering the process,
increasing efficiency and reducing labor costs, improving worker
safety, saving money, and being “green” could all fit into the Lean
concept of management… eliminating waste and serving the customer
needs. What about the “respect for people” principle? Is this being
“pushed” by corporate in Seattle or is this an effort that engages
all Starbucks associates in “kaizen” (continuous improvement)?
They are actually having everyone read John Shook, which is an
encouraging sign:
SMs under the
guidance of their DMs and RD are executing the transformations,
plus they all are required to purchase and read the book “Managing
to Learn: Using the A3 Management Process to Solve Problems, Gain
Agreement, Mentor, and Lead” by John Shook to know theories
of:
- Continuous
Improvement- Everything in
Place/A Place for Everything organization- Repeatable
Routines
So it sounds like standardized work and a good effort at 5S at
Starbucks. Has anyone seen evidence of this?
As usual on the Starbucks Gossip blog, the comments are where
the real information is.
One employee has a cynical view:
Customers come
into Starbucks,at least they did, to experience something that
could only happen without LEAN - friendly banter with a barista,
sampling coffee or a pastry, etc.LEAN is best
suited to assembly lines and factories. Not so for managing human
interaction which is never a “repeatable routine”.
Ah, we hear
the same thing in hospitals, that Lean is not suited for caring
hospital environments. But, in hospitals, eliminating waste and
engaging the staff in kaizen can often free up time to be spent on
patient care instead of running around searching for supplies and
equipment. Don’t you think the same could be true at Starbucks,
that staff members who are spending less time with waste could
actually be friendlier to customers?
There’s
nothing about Lean principles that says you have to change the
nature of your customer relations. If the customer really does
value a nice friendly encounter with the barista, then Lean can be
a way to free up time to allow that to happen.
Another
employee sees the potential for Lean:
i totally see
ways the store can be lean. they way the store is set up is not
lean we have to go back and forth for mocha lids etc… weh ave no
communication on how much prep to make so most gets thrown out. our
store has 2 people everynight so you can’t get much leaner than
that. we have way to much old crap sitting aroung in the
back.
Too much back
and forth? Poor communication and planning? Junk cluttering up the
space? Sounds like a classic opportunity for Lean methods and
management.
This comment talks about a standardized work method for
rotating and brewing coffee according to a routine. I assume the
goals are fresh coffee for customers (quality) with minimal
wastage?
This comment provides some interesting corporate
perspective:
Lean is a word, not an acronym…no need for all caps.The lean thing has been cooking for a year + and
there are some good ideas. Everyone should be aware that there was
little interest in it from senior managers prior to the $500
million cost savings promise to Wall Street. Now it’s the “answer”
and largely a smokescreen for the continued fast food izing of our
stores. Where we need lean is in our supply chain and back of
house…the stores actually do a good job serving customers when
they are allowed to have enough people
working.
This comment
provides even more detail about the work study and continuous
improvement methods. “Can there be a better way?” Isn’t that the
key question with Lean?
This comment talks about the standardized work for a bar-back
type role to help with flow and rink making.
None of it
sounds really too off base. I guess the magic is in how effectively
this is “rolled out” to the staff and how much input they get into
the process. Rolled out or rolled over?
GTMbestpractices.org commented:
Great post. Hopefully the cynics will be convinced. With a
successful 'lean' initiative and their new 'economical' coffees,
Starbucks will be able to weather the recession.
