Starbucks Gets Inspired by Japanese Lean Techniques
In an effort to cut costs and decrease the amount of time it takes to get a coffee drink, Starbucks is turning to the Japanese for inspiration. The company hire former Toyota Motor Corp. executive John Shook to advise on how to retrain the store's baristas in what is called lean techniques. Lean techniques are used by many American companies to increase efficiencies in manufacturing, distribution and sales.
Store procedures are being changed to make drink making quicker and more efficient. For example, instead of having employees go to the back many time a day to get more pastries, a rolling cart is set next to the case so that restocking is quicker. A team is going from Starbucks to Starbucks to time employees and find ways to streamline the process, which is different for each store because Starbucks stores have many different configurations.
The company began testing lean methods in Oregon last year. One of the first stores was managed by Tara Jordan, in Oregon City. "In my eyes, we couldn't get better," says Ms. Jordan. Her store boasts one of the fastest Starbucks drive-through windows in the country, according to the company, with an average time per order of 25 seconds.
To help her understand how work can be done more efficiently, Kim Landreth, a member of the lean team, brought a Mr. Potato Head to Ms. Jordan's store and sprinkled the ears, nose, lips and other accessories across several tables.
Using a stop watch, Ms. Landreth timed how long it took Ms. Jordan to assemble the toy and place it in its box. It took more than a minute. Ms. Landreth asked her to think about how she could complete the task faster. Moving items closer together shaved time, as did altering the order of assembly. Over two hours, Ms. Jordan amended the task. Her final time: about 16 seconds. "That really opened my eyes," she says.
The next project: observing the area where blended drinks, such as frappuccinos, are made. "I thought it was going to be the best station in my store," Ms. Jordan says. "What I saw was how much my partners were moving and reaching for things that were never in the same place. It took way too long to make one beverage," she says.
They moved all but the most commonly ordered syrup flavors and now store pitchers closer to where the drinks are made. After learning that topping the drinks with whipped cream and chocolate or caramel drizzle at the drink station was slowing down production, they moved those items closer to where drinks are handed to customers. The changes shaved eight seconds off the 45-second process. "Just to top the beverage with whipped cream and drizzle took six seconds," Ms. Jordan says.
In all, new methods have cut two seconds off the store's drive-through time -- to an average of 23 seconds.
Between September 2008 and June 2009, her store experienced a 10% increase in transactions. The company says that having food and drinks ready to go quickly can boost traffic because that keeps people from leaving stores.
Some employees are not happy about being timed with a stopwatch and complain they are being turned into robots. But customers seem to like anything that speeds up service. Some of the changes are better for employees: by not having to bend over to get coffee beans from under the counter many times a day, some back problems can be avoided. One thing's for sure: the days of visiting a laid-back, relaxed small coffee shop are pretty much over. It's go, go, go from here on out at your local Starbucks.
