Final – lean six sigma topic lss application improves the process of making milk tea

Why choose the topic The topic of applying Lean Six Sigma method to the milk tea preparation process is not only a strategic choice but also a comprehensive approach to optimize performa

NGUYEN TAT THANH UNIVERSITY

NTT INSTITUTE OF INTERNATIONAL EDUCATION



FINAL – LEAN SIX SIGMA TOPIC: LSS APPLICATION IMPROVES THE PROCESS OF

MAKING MILK TEA

Table of Contents

CHAPTER 1: OVERVIEW OF THE RESEARCH TOPIC 3

1 W HY CHOOSE THE TOPIC 3

2 R ESEARCH OBJECTIVES 4

3 S UBJECTS , SCOPE OF RESEARCH 4

CHAPTER 2: THEORETICAL FOUNDATIONS 5

1 W HAT IS S IX MA ? 5

2 B ENEFITS OF LSS FOR BUSINESSES 5

CHAPTER 3: LSS APPLICATION IMPROVES THE PROCESS OF MAKING MILK TEA 7

1 I DENTIFY THE PROBLEM 7

2 D EFINE 8

A PROBLEM CONTEXT 8

B IMPROVEMENT GOALS 8

3 M EASURE 9

4 A NALYZE 12

5 I MPROVE 14

A DETERMINE THE PLAN 14

B OPTION SELECTION 14

6 C ONTROL 16

Chapter 1: Overview of the research topic

1 Why choose the topic

The topic of applying Lean Six Sigma method to the milk tea preparation process is not only a strategic choice but also a comprehensive approach to optimize performance and product quality The reason for choosing this topic is because it brings many important benefits to the beverage industry, especially in the context of high competition and increasing requirements for quality

One of the top advantages of applying Lean Six Sigma is its ability to enhance production efficiency By eliminating waste and reducing waiting time, the milk tea brewing process can

be optimized to achieve uniformity and high performance, thereby reducing service time and enhancing customer experience

In addition, the application of Six Sigma also places emphasis on quality control, reducing fluctuations in the production process This poses an important advantage in the milk tea industry, ensuring that each product reaches high quality standards, enhancing customer trust

Not only helps with process optimization and quality control, Lean Six Sigma also aims to reduce costs and waste Eliminating unnecessary activities not only saves materials, but also minimizes labor costs and enhances resource efficiency

In the context of the beverage industry, the ability to respond quickly to the market is important Applying Lean Six Sigma not only makes the process flexible, but also creates the ability to quickly adapt to new trends and requirements, keeping businesses resilient to market fluctuations

Finally, improving product quality and reducing wait times has a direct impact on customer satisfaction This not only retains existing customers but also attracts new ones, enhancing

2 Research objectives

Learn, research and analyze the milk tea preparation process Apply Lean six sigma to the milk tea preparation process and deliver it to customers Thereby improving the process and reducing the completion time of the product

3 Subjects, scope of research

The subjects of research here are factors that are relevant and influence the process of making milk tea

Scope of research: At AA milk tea shop, focus on the milk tea preparation process

Research methodology

Study materials: Textbooks, articles related to the production process

Use the DMAIC improvement process with 5 steps: Define, Measure, Analyze, Improve and

Chapter 2: Theoretical Foundations

1 What is Six sigma?

Bob Galvin, CEO of Motorola, the father of the 6sigma methodology, put the concept of this method succinctly as follows: "6 Sigma is A scientific method that focuses on doing it appropriately and effectively The techniques and principles of quality management have been acknowledged Summing up the factors that affect work results, 6 Sigma focuses on how to perform work that is not (or almost not) faulty or defective." Quality Association The United States (AQC) defines: "6 Sigma is a flexible and comprehensive system for implementation, maintaining sustain and maximize business success 6 Sigma is a system conducted by a thorough understanding of customer needs, using rationale bases, figures, statistical analysis and emphasis on management, improvement and redesign of economic processes joint The goal is to eliminate inconsistencies, waste, and defects that challenge the heart loyalty of customers

The Six Sigma method offers a high level of quality in order to do its best to achieve it perfection in products or services sold by a company, organization or enterprise It is a data-driven and highly disciplined approach that aims to eliminate defects This method will quantitatively describe the processes how is working Simply put, a fault is anything outside the customer's specifications

Six Sigma is used statistical methods to count the number of errors that arise in a process Then figure out how to fix it, bringing it as close as possible to "error-free" good The goal of Six Sigma is to have only 3.4 bugs per million errors, perfect to 99,99966%

2 Benefits of LSS for businesses

Improving customer satisfaction is an important goal for every organization, as this satisfaction plays a decisive role in customer loyalty and, therefore, shapes organizational success According to the latest reports, adopting the Six Sigma method offers significant returns, with

an ROI 40% higher than businesses that do not use this method Some businesses don't realize

addressing important issues in how customers perceive a product or service Six Sigma training for key personnel also plays an important role in overcoming process difficulties and restoring customer confidence in quality and service

Another benefit of Six Sigma is reduced project lifecycle time When a business adopts Six Sigma, a multidisciplinary team is formed to identify factors that can negatively affect the project and lead to exceeding the set time

A powerful application of Six Sigma is to reduce operating costs By focusing on improving processes and reducing errors to less than 3.4 defects per million opportunities, businesses can reduce costs associated with repairing defective products, while increasing operating revenue

by up to 50%

In addition, Six Sigma helps employees manage their time more effectively, create a positive work environment, and support performance estimation and complete work adequately Employees trained under Six Sigma can apply these principles to review and improve their daily performance

Finally, Six Sigma is not only a process improvement methodology but also aids in enterprise-level strategic planning Six Sigma helps focus on areas that need improvement to achieve core business strategy This helps the organization become an excellent competitor and maintain its

Chapter 3: LSS application improves the process of making milk tea

1 Identify the problem

Object of study: Milk tea preparation process

Total Staff: 3 employees

AA Milk Tea Shop is a small shop in District 7, Ho Chi Minh Cit The problem the store has here is that the store productivity has not met the number of customers at peak hours, and this leads to customers having to wait a long time to receive their orders And ultimately leads to a decrease in customer satisfaction

FIGURE 1 The process of making milk tea

At the milk tea shop there are a total of 8 steps in a milk tea preparation process:

The first step, the cashier receives the order from the customer and then the bartender will receive the order from the cashier to know what kind of drink to prepare for the customer, print

a stamp containing the information From there, the employee gets information about the product size, type of product and this employee will choose a glass according to the regulations

on that type of milk tea and then affix a stamp to the glass to distinguish

Next, the employee will go to the refrigerator and pick up the prepared milk tea and return to

take orders

print stamp

and stick on

glass

get milk tea

from frigde

Pour milk into the glass

add sugar water

packaging

into a measured cup and put it in a glass with milk tea then stir well Next, the staff will go to the ice bucket and add ice to the glass, and they will return to the counter to add the toppings required by the order and finally after adding it fully, will close the lid and deliver it to the customer

2 Define

a Problem context

AA Milk Tea Shop specializes in milk tea production with 3 employees To increase productivity, the store started to improve the brewing process to reduce customer waiting time

to avoid customers leaving because of waiting too long and increase customer satisfaction The store has only 3 employees including 1 cashier and two bartenders Therefore, if there are too many orders at the same time, it will increase the waiting time of customers who come later and make it difficult to be dissatisfied

Therefore, the store measures the average time of each stage in the dispensing process to identify the cause and find quick fixes to avoid causing a decrease in customer satisfaction

b Improvement goals

Increase the productivity of the dispensing process to be able to meet the number of visitors during peak hours

Reduce brewing time, speed up customer service

Can be achieved by process optimization

-Cashier:

provide the

order

-Tool

supplier:

provide

dispensing

tools

-Raw

material

supplier

-Drink

information

-Dispensing

utensils

-Milk tea

-Sugar

water

-Topping

-Ice

Milk tea for customers

People come to the store to buy milk tea Take orders

print stamp and stick them on glasses

get milk tea

pour milk tea into the glasses

add sugar water

add ice

add topping

Packaging

well as the supplier of raw materials and tools affecting the preparation process Input here helps identify what is needed for preparation, while the process describes the steps, helping to identify important steps, deciding the factors that affect the quality of the final product and process performance The output is the finished milk tea product and can be brought to the customer, and the customer is the end consumer here

3 Measure

AA milk tea shop operates from 10am to 10pm, operating time is 12h To improve the average time it takes to prepare a glass of milk tea, it is necessary to collect data on the time of each stage in the process

In this preparation process, the cashier will be responsible for stages 1, 2, 3 of the process, then the milk tea barista will receive the stamped cup that the cashier gives, then start the preparation and finishing work of the product and packaging to give to the customer Charts help better understand the transparency and shipping process of each stage by describing each specific step Building charts helps detect possible risk points, monitor each stage of the process

Figure 3 Swimlane

This process clearly outlines the responsibilities and roles of employees in the process, in addition to helping to measure how long each step in the process takes to complete, thereby identifying gaps that cause delays in the process If any errors occur during this dispensing process, the chart will determine where the error occurred Help estimate the material flow of

Take

oder

stamps

and

stick

them

on

glasses

Get milk tea

Pour milk tea into a glass

Add sugar water Add ice Add topping Packaging

Total average time

Average

Table 2 Average time

This data table is the result of randomly measuring the average time of each stage of the milk tea preparation process Here the result is 199 seconds for a glass of milk tea, so the production capacity here is about 18 cups of milk tea for 1 hour, 1 glass will take about 3 minutes and 20 seconds

After collecting the data, proceed to draw the Value stream mapping

time from order receipt to completion and waiting time at processes is 38 seconds)

4 Analyze

The value stream map shows some key insights into the milk tea brewing process While the receipt of orders and the preparation stages all create direct value, the stamping stage falls into the category of not increasing value because it only helps to identify the product In addition, constantly moving between locations such as having to move twice from the refrigerator to get milk tea and return it to the same place creates a period of valueless time, and the same goes for closing and opening topping jars Another problem is that the total transition time between steps

in the process takes up a total of 38 seconds, which indicates reduced productivity Therefore, from the collected data, a fishbone diagram will be drawn to find out the root cause of problems

in the process to improve to increase productivity

5why

Why can't the store meet the needs of customers?

Because the number of milk tea production capacity is not high

Why is the milk tea production capacity not high?

Because the waiting time between stages takes a long time

Why does the transfer take so long?

Because the process does not match the layout in the space of the dispensing area

Why is it inappropriate?

Because employees have to move quite a lot between areas during the brewing process Why do employees move so much?

Because after the stages, the staff has to mix, the staff has to take time to put the items back as

The fishbone diagram of the dispensing process gave four main factors affecting the quality of work First, the problem of staff insufficient number of employees during peak hours, which leads to not enough people working during peak hours, and the fact that employees do not remember all the milk tea recipes clearly leads to repeated review of the recipe over and over again, increasing the time that is not valuable Not only puts pressure on employees, but also affects the accuracy and evenness of the product, contributing to an increase in the duration of the process

The second is the working environment, tight working space and the unreasonable arrangement

of areas in the preparation process that make moving and interacting between areas take a long time As a result, employees get tired quickly from having to move a lot through each area, and fatigue slows down the brewing process which increases time and reduces productivity

The third is about Process, the issue related to the process is the ability to switch between stages of preparation The current process does not match the arrangement of the dispensing

topping jar manually takes a long time if there is an order that requires many types of toppings,

in addition to spending time closing the lid after use The lack of tools it causes repeated rinsing that leads to waiting to resume the process creating a period of time that does not create value

To improve the situation, it is necessary to review and adjust the number of employees, optimize the working environment, adjust the dispensing process and ensure adequate and easy access to dispensing tools This will help optimize product performance and quality, as well as increase customer experience

5 Improve

a Determine the plan

For the current process, manual work accounts for most of the milk tea preparation process, so

to improve, the store will convert some manual steps to using machinery and mixing supplies to replace the staff, in addition, in some areas of the brewing space will combine

Propose:

 Replace the topping jars with stainless steel trays located in the milk tea cabinet

 Combine the cup and stamp area into the cashier area, the milk tea preparation area and topping will be combined, the packaging area will be combined with the receiving area

 Change the position of the refrigerator that will be to the right of the dispensing counter

so that the distance becomes closer

b Option selection

After implementing the above 3 options, and measuring 50 times of the improved process, the results in table 3 are obtained

Get an

application

Print stamps

and stick them

on glasses

Get milk tea

Pour milk tea into a glass

Add sugar Add ice Add topping Packaging

Total average time Average

Table 3 Average time

After improving and measuring again, we get the result that the time to prepare 1 cup of milk