THE PROJECT REPORT about OPERATION MANAGEMENT COMPANY THE COFFEE HOUSE

THE PROJECT REPORT About OPERATION MANAGEMENT COMPANY: THE COFFEE HOUSE ● Lecturer: Ph.D.. This report, our group wants to analyze the operation management of The Coffee house by using

THE PROJECT REPORT

About

OPERATION MANAGEMENT COMPANY: THE COFFEE HOUSE

● Lecturer: Ph.D Tran Cong Thanh

● Name group: Group 1

● Project name: The operation management of The Coffee house

Ha Noi, June 9, 2021

ASSIGNMENT EVALUATION

contribution

1

● Create powerpoint slide

● Make outline and brainstorm ideas All group members

2

● Executive summary

● What is the operation management

of the coffee house?

Vương Duy Việt

3

● Operation management objective Vũ Thành Trung

(Team leader) 100%

4

● Action management issues

● Conclusion

Nguyễn Ngọc Hương

Mai (Team member)

100%

5

● Inventory management Ngô Việt Trường

(Team member)

100%

Table of Contents

I Executive summary 4

II What is the operation management of the coffee house? 5

1 The input 5

2 The process 6

3 The output 8

III Operation management objective 8

1 Coffee quality 8

2 Time 9

IV Inventory management 9

1 Definition 9

2 Step for the coffee house to manage inventory 9

3 Recommendation 10

V Action management issues 10

1 Supply chain management of The Coffee House 10

2 Total quality management 11

3 Just in time (JIT) 13

4 Forecasting 15

VII Reference 17

APPENDIX 18 LINK POWERPOINT:

https://drive.google.com/drive/u/0/folders/1LLfHwHfPjKzh8qfcqMYhKWSnaYUgFz

va 19

I Executive summary

Operations management is a field of management concerned with the design and control of production processes and the redesign of business operations in the production of goods or services Related to the management of the entire production system is the process

of converting inputs (in the form of raw materials, labor and energy) into outputs (in the form

of goods and/or services), as an asset or providing a product or service Product manufacturing, quality control, and service creation This report, our group wants to analyze the operation management of The Coffee house by using the knowledge we have studied in the subject: Operations management

II What is the operation management of the coffee house?

● Analysis of The Coffee House Operations

There are three main steps of the sales management structure in the coffee house: input, process and output

1 The input

The input of the Coffee house includes customers and the ingredients for making drinks and food

The ingredients must be strictly controlled to choose high quality, providing the best beverage experience for customers In the coffee house, from the first stores, they have started

a partnership with Cau Dat Farm to grow coffee according to our own standards Through a strict roasting process under the hands of leading coffee experts in Vietnam, coffee beans with uniform quality, rich aroma and the inherent balanced taste of Cau Dat coffee beans will

be brought to all stores on The Coffee House system to serve the customers

The customer comes to the Coffee house to enjoy the drinks and food Moreover, this

is the place that they can connect to their friend, college or another relationship

2 The process

The process of serving drinks and food at The Coffee House includes making coffee for customers and customer’s care when they wait for their drinks

" Before - In - After "

Customers with a need to use store drinks will be welcomed by the employees, who are instructed to choose suitable beverages for the taste After receiving the customer's drink, the employee will have the duty to make the right drink the guest asks for and bring that drink

to the table to enjoy it If the customer has any other requirements, the staff at the store will come to service so that the guests' experience is always good

The employees will instruct customers to enter the cashier's counter to order the drinks, the cashier will guide the guests to choose the beverages according to the customer's needs, based on the menu placed immediately, and the small menu is placed on the menu table In addition to some exceptional cases at the store, when new beverages, seasonal drinks, combo, different promotions At the cashier's shop, will they need to ask whether they want to try that drink? Not only that, but the stores have snacks like salty cakes If combined with the guest's drinks, it adds to guests' meals

Payment will occur after the order is completed, at the Coffee house's payments including cash, online banking, card, momo Since the coffee house uses both mobile apps

on both IOS & Android platforms in which the customer's information will be stored and other offers membership, the cashier also needs to ask customers to help customers with the shopping The payment is complete; the employee will give his client the invoice and some table based on the ordinal number on the invoice and not forget to the customer who used his service

After ordering and paying, customers will be instructed to sit and wait for their drinks Customers will be served water and enjoy the music

In addition to the invoices that the cashier gave customers, there would be a copy of the employee bill that would keep sending the bartender From here, the bartender would sort the bill in order and start making things The implementation of the drink must comply with the formula and complete within a given time for each invoice, except when there are too many drinks at the time, the cashier will have to ask for a client's permission to produce later (from 10 to 15 minutes) After the bartender completes his part, he will send a drink for his staff to do the rest

From here on, the staff will finish the drink following what has been specified from the top of (with a hot drink such as coffee, chocolate, mathe coffee houses will be left with a long spoon and a paper pipe that is placed) side, which a paper pipe will accompany When

it has finished, the staff will arrange a drink again and put it on the tray simultaneously, arranging the proper invoices for that drink and ready to go

The staff will go to every corner to find suitable tables for the drinks and deliver them

to the guests When the delivery has been done, the employee won't forget to say, " enjoy your meal " to customers

From here, customers will use their drinks if any problems occur such as drinks, space, etc Customers can call their employees directly to help if they are uncomfortable, and the customer can still resubmit their experience at the store through an existing app After each app transaction appears a review table for the customer at several stars from 1 - 5, depending on the customer satisfaction level after making the evaluation table, it will directly

be sent to the store manager if there are a low number of issues or issues that have complained It's best to make customers experience when using the store at best

3 The output

After enjoying the service and quality of the coffee, customers will have the assessment of the products that determine their brand loyalty At The Coffee house, they have designed an app for the customers to respond to their feelings or not be satisfied about the products or staff Get feedback on the spot, if there is a problem, they will handle it immediately, avoiding a crisis For example, the writer once wrote a review through the app about the coffee cup with some powder on the bottom, less than 5 minutes later the manager came and asked for permission to make a new cup Moreover, when customers order online: for every 10,000 VND, they will get 1 point and 50 points corresponding to 500,000 VND, you will receive a drink of their choice Customers have voluntarily updated their information and they have more motivation to come to The Coffee House and get the promotion

III Operation management objective

1 Coffee quality

To achieve success today, the last seven years The Coffee House continuously pursued actual coffee value, "non-season." It's like a religion, in a belief and grit aspect Do the right thing; it may not see the short term immediately, but in the long run, you will surely reap the sweet because it is the right way to go

The coffee house recognizes that Vietnam ranks second in export but is raw coffee, used as raw materials for extracting components such as caffeine We also have high-quality coffee but no brand and hidden source That proves that Vietnam can grow good coffee but depends on buyers, world markets It’s time to build a reputation for high-quality Vietnamese coffee

The coffee house began the journey of self-producing, providing raw materials, and giving natural coffee to the customers From the farm at its land bridge: production according

to modern processes to improve the value of Robusta and arabica of Vietnam Conservation

of typical, yellow cat of local and imported varieties of coffee from Costa Rica Testing preparation methods from the world's famous coffee countries with future goals will bring Vietnamese coffee abroad with a new mentality

"From farm to cup" – “từ nông trại đến ly cà phê” is the whole process from the time the enterprise incubation, the harvest control, the preparation, and roasting in the counter

Behind the journey a drop of coffee was carried to the customer's hand, the collective effort

of many people To enjoy a cup of coffee usually only takes 30 minutes, but to take care of the coffee tree that yields fruit takes three years And it takes two more years to get the best quality coffee The coffee house silently incubates the first coffee trees from three years ago,

as soon as the dream of "THE COFFEE HOUSE" is hatching, and it will undoubtedly need more "three years" such as this exciting journey

2 Time

While quality is what customers focus on the most, preparing a drink will affect the customer's mood to enjoy the drink Customers do not require drinks to be served perfunctorily, but they do not want to wait too long for their drinks Beverages are required

to meet the expected 5 – 10 minute maximum wait time When managing such a professional and reputable brewing process, the baristas will not spend too much time making drinks and cause trouble to customers

IV Inventory management

1 Definition

Inventory management includes aspects such as controlling and overseeing purchases

— from suppliers as well as customers — maintaining the storage of stock, controlling the amount of product for sale, and order fulfillment

2 Step for the coffee house to manage inventory

● Step 1: Statistics of numbers

This is one of the key factors influencing the budget THE COFFEE HOUSE will take measures to limit fluctuations in the supply of food in its warehouse This is also the most likely stage of the loss THC used to get this job done

Make a list of:

Raw material: is a raw material that is sold or kept for production in the future, sent

for processing and bought on the way home: sugar ice, coffee beans, math coffee house, ice cream

Finished product: is the finished product after the product process.Such as :cakes,

bread, etc

● Step 2: Use the treatment system

If you want to manage in detail and accurately the import and export situation of raw

materials,

The coffee house uses the software The recipe declaration of the software products will take up a lot of time at the coffee house, Include the goods declaration, raw materials list, then set quantity for each item With a list of about 100 product it will take about an

afternoon to sell

You need to input raw materials every day in the software with the recipe available:

Net balance = Beginning Stock + Import - Export

● Step 3: Check inventory regularly to minimize errors

Warehouse management is not easy, there will be a lot of problems around import

and export you have no control, such as the employee forgot

Do not enter the receipt of goods into the software, the staff enter the warehouse wrong number, sales staff did not enter the software, sold the wrong product, the formula was much wrong This makes the data on the software skewed with reality and only inventory that you know

3 Recommendation

The solution for inventory management is that the company should apply the FIFO Method (First In First Out), this is an important principle in inventory management First –

in - First out means that the items you first entered need to be used first, which is especially necessary if you are selling perishable products Therefore, firms make sure that products are not left in stock too long Materials imported first will be processed first, material imported later will be processed later So the quality of the drink will be guaranteed

V Action management issues

1 Supply chain management of The Coffee House

First of all, The Coffee House has their own supplier which is Cau Dat farm There, they provide the finest and aromatic Arabica coffee beans in Vietnam The Coffee House also has producers which bring packages and cups Under the control of the management team, the quality of these products is guaranteed The beans after harvest will be roasted, grinded and stored in cold storage In every store, the manager of the store orders the use of term-type orders filled which include coffee beans, milk, takeaway cups, straws, etc, ordering volume = demand inventory –

Secondly, about the inventory file, everyday before work, the manager must check and calculate the inventory of raw materials Suppliers will deliver materials to each store Thirdly, it is about distribution planning, staff in the store receive and prepare orders to serve customers at the table The Coffee House also takes orders via the app, then the staff prepares, packs and ships the drink to the customer

Finally, about customer service, THE COFFEE HOUSE welcomes any questions, comments, feedback and looks forward to receiving your information Those comments help them strive to provide the best customer experience possible Customers can leave comments

on their fanpage or customers can review on the app THE COFFEEHOUSE and they will try

to reply to you as soon as possible

● Issues

There are a large number of issues in supply chain management but I will share some main issues which affected a lot The first one is cost pressure Labour costs continue to rise and a lack of local materials The cost of preserving raw materials is also high The product that comes to customers must be the freshest Secondly, there is a decline in the profit of stores Determining the areas that supply chains are impacted by controlling by local policies This led to disruptions and bottlenecks due to strict inspection on food safety

● Recommendation

Communication and collaboration between supply chain control teams, building business operations, purchasing, logistics, etc are essential to reducing individual work and risk throughout the chain They are taking advantage of the latest developments in automation

to increase productivity and reduce costs, improve storage capacity and consolidate manufacturing and distribution operations, and maximize service levels, system flexibility and operational resilience Firms should try to simplify and improve the supply chain to increase efficiency and profitability

2 Total quality management

The total quality management that the coffee house wants to focus on is the quality

of the Vietnamese coffee Customers experience the best cup of coffee

“People define good coffee as bitter and smooth For the past 5 years, our regular customers say that the coffee is as watery as tea I travel to many parts of the world, but I have found that they do not add additives like coffee in Vietnam, that brings me down