Coffee Studio Operations Analysis

This assignment delves into the operational aspects of a hypothetical coffee studio. It requires an in-depth analysis of the studio's processes, encompassing coffee preparation, inventory management, and customer interaction. The assignment further examines the studio's supply chain network, tracing the journey of coffee beans from origin to final product. Lastly, it explores the crucial role of customer service in shaping the overall experience at the coffee studio.

Operations management and
service excellence
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TABLE OF CONTENTS
Introduction and overview...............................................................................................................5
Analysis of operational challenges................................................................................................10
Operational system.........................................................................................................................12
Interpretations................................................................................................................................14
Performance objectives..................................................................................................................14
SUPPLY CHAIN MANAGEMENT.............................................................................................16
Define supply chain and supply networks................................................................................16
Supply chain management of Curators coffee studio................................................................19
Quality processes...........................................................................................................................20
Define quality and quality process.............................................................................................20
Conclusion.....................................................................................................................................22
References......................................................................................................................................23
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ILLUSTRATION INDEX
Illustration 1: Company overview...................................................................................................1
Illustration 2: Location map ............................................................................................................5
Illustration 3: Menu of coffee studio...............................................................................................6
Illustration 4: Types of coffee and teas separation..........................................................................6
Illustration 5: Batch processing of coffee........................................................................................6
Illustration 6: Processing of coffee..................................................................................................6
Illustration 7: Curators coffee studio floor layout............................................................................7
Illustration 8: Internal layout of coffee studio.................................................................................7
Illustration 9: Operation system used in coffee studio.....................................................................9
Illustration 10: Process of making coffee......................................................................................12
Illustration 11: Supply chain of Coffee studio...............................................................................18
Illustration 12: Supply chain network............................................................................................18
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INTRODUCTION AND OVERVIEW
Curators coffee is a special coffee house that was created by a small group of
Antipodeans who are totally devoted to great tasting coffee (Nijssen and Schepers 2016).
Curators coffee studio opens its doors in the city of London which is known as one of popular
tourists destination in the United kingdom. It serves different variety of coffees, teas and freshly
prepared food from in-house kitchen and wide range of leading local raw material supplies.
The curator's coffee studio is a small scale enterprise that is why it focus on few peoples with
highly skill and qualification to cater the needs of all the customers. The main specialty of this
cafe is to serve world best beverages and gain more customer satisfaction. The venue is
appropriate for the company in order to attract more tourists and local residents. The price of all
the products is reasonable so that all age groups can afford it. The complete list of all the items
served here are the following such as coffee and other beverages 2-10 pounds, sandwiches and
other snacks 5-15 pounds, event space booking costs around 150-200 pounds per occasion and
the price may inflect according to the different needs of the client (Gustafsson and Högström
2016). The venue outsources some baked food items from the local bakery as well as preparing
the food on the spot in front of the customers. The transparency in the operational activities in
preparing food in front of customers shows that the business is using good quality resources
while maintaining high level of hygiene. The cafe opens for 7.30a.m to 5.30 pm in order to
facilitates several customers and closed on national bank holidays. The menu of the cafe is
designed after taking tastes and preferences of the customers and different expectations of the
external environment. The process of making coffee is using traditional methods that reflect the
traditions of their ancestors. It follows functional layout of the cafe studio and batch processing
in preparing foods and purchasing raw materials. It also give more focus on re-designing the
business activities so that firm will be able to achieve its desired goals and the objectives within
the reasonable time frame.
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Illustration 1: Company overview
(Source: Christopher, 2012)
The company give more importance to the following key parameters such as Variety,
Volume, variation and visibility.
Availability - The studio provides different variety of coffees that may includes Nude expresso,
Brazilian coffee, Mexican variety coffee, Joe's kid, Expresso, Cappuchino, Doppio. The motive
of firm behind providing wide options is that it helps to attract huge audience towards the
business by providing wide variety of options in order to gain competitive advantage over its
competitors.
Base of customer- Coffee shop has large base of client and consumers by serving variety quality
and quantity of products or services to its customers (Dyckhoff and Lackes 2013). The rationale
behind providing good quality product is maintaining long lasting relationship with the
customers.
Demand fluctuation - The firm time to time change their menu and add different variety in the
menu in order to grab the attention of the customer.
Marketing - It has to promote their coffee products in the eyes of customers to force them to
come and taste the various variety of the company.
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Illustration 2: Location map
The Curator's coffee studio is specially designed coffee house located in the heart of
United kingdom the city of London. It is existed in Cullum street of London to attract more
customers especially youngster and all other age-groups. It is a business of serving special
varieties of coffees, teas and fresh food prepared at the food outlet. The business size of this
studio is small scale which is weakness of this studio to cater the needs of the large base of
customers at a time. To reduce this weakness it provides home delivery to customers in order to
hide their weakness and convert it into additional service. As it is small scale enterprise it has
few staff members which is as efficient as in large scale business. The staff is few but they are
highly skilled in making food and serving the needs of large number of customers.
OPENING HOURS
 Mon-Fri 7:30am-5.30pm
 Closed on bank holidays
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Illustration 3: Menu of coffee studio
The operations of the coffee shop is correctly analyzed the overall efficiency of the coffee shop
by applying 4V analysis model are the following:
Variety- The coffee shop provides different variety of all the products such as different kinds of
coffee, teas, all freshly prepared foods such as salads, sandwiches, burgers, pies and all bakery
items.
Volume- The current size of the business will not affect the volume of the products provided by
the enterprise. It serves wide range and options in snacks, teas, coffees, other beverages,
confectionery items with vanilla, strawberry and other flavors. It provides high volume low cost
products to attract higher audience.
Visibility- The transparent operations process attract customers to purchase products just for
trying coffee in studio.
Variation- It provides different variety of products with some twist or some flavor of their own to
make it unique products or services.
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Illustration 4: Types of coffee and teas separation
Illustration 5: Batch processing of coffee
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Illustration 6: Processing of coffee
Process Analysis
The curators coffee studio followed Batch processing as the resources that are to be transformed
and purchased in batches. The cakes and other confectionery items are baked on site to serve
fresh food. The order of the food is according to the batches as prepared by the shop owner.
Illustration 7: Curators coffee studio floor layout
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Illustration 8: Internal layout of coffee studio
This coffee studio uses functional layout of its shop to facilitates large number of customers. The
counter is placed in center to cater the needs of large number of customers. The table and chairs
are all around the corner walls which is convenient for customers who are planning to dine-in or
take away. The transparent glass in the shop is placed to show all the internal processing of the
food to show that all food is prepared with proper hygiene.
ANALYSIS OF OPERATIONAL CHALLENGES
All operational decisions taken by the owner will depends on several factors such as
number of staff, available resources, technology used in food top generate better output. This
model is in-house developed project which is designed by the owner of curators coffee studio
(Christopher 2012). The rationale behind preparing in-house operational management structure
to achieve its main aim that is to grab the attention of several customers. Its main target is to
become the popular coffee studio in the London by serving good quality of services and wide
range options to the customers.
Creativity- Curator's coffee studio gives more emphasizes on premium design for its goods and
services. The creativity and innovation of the cafes and coffee shop play an important role in
influencing most of the customers. The premium quality is linked with the company's broad
differentiation generic strategy along with its premium pricing strategy. The premium pricing
strategy refers to premium quality of products in affordable price. It includes use of different
techniques and technology in order to cater the needs of its customers. The main focus of the
firm is to gain more customer satisfaction by serving wide variety of products to the consumers
(Aladwan and Forrester 2016). The availability of different options helps to maintain long lasting
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relationships with the customers. Enterprise can choose various ways to design their products
and different kinds of services which includes standardization, mass customization, delayed
differentiation, modular design and robust design. Determining different methods to choose is an
integral part of deciding the target market of the firm in order to achieve success.
Quality- Different variety of coffee served here are of top quality and doesn't have any loopholes
in terms of its quality. The firm follows different quality obligations that is imposed by the
external legal environment. Quality management ensures that an enterprise runs consistently
throughout the year by serving different taste and preferences of a customer. It consists of main
components such as quality planning, quality assurance, quality control and quality
improvement. It majorly focused not only on products and services but also on several means
and ways to achieve them. The international standard for quality management which is
commonly known as ISO adopts a number of several management principles and procedures.
These principles can be used by the management in improving quality of products such as
improving the tastes of coffees, teas, snacks and baked items. These items play a significant role
in attracting the interest of youngsters (Auh 2016). These food will caught the interest of
youngsters especially kids by providing different variety of foods such as chocolate cakes,
muffins, doughnuts, cupcakes. The main focus of the company is not restricted to deserts and
sweets but also extends to provide sandwiches, burgers, salads, french fries, risotto and many
more variety of food. According to the quality point of view, these junk foods such as burgers,
sandwiches are prepared in less oil and use of olive oil in preparation to promote the healthy life.
Customer- Curators coffee studio gives more priority to to the customers by reducing their
waiting tolerance by improving the internal service areas. The business aims to provide welcome
and comfortable feeling when customer enter the cafe. The complete surrounding and internal
environment of the cafe should be designed properly in order to attract them by the creativity and
innovation of the studio (Bowersox and Cooper 2008). It is one of toughest challenge faced by
the business in order to serve a cup of coffee to the customers to gain large base of satisfied
customers in initial stages. The customers are willing to pay more for the quality of the product
which motivates the personnel of the firm to serve high quality services to different consumers. It
also enhance the experience of both the parties business as well as buyer through personal
interaction between them. Products and services bridges the gap between purchaser and the
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owner by creating strong bond among them. It helps to build loyal and regular customers to the
business. Buyers are the basic pillars of the organizational success building. Trustworthiness play
important role in forecasting the success and failure of the firm in the competitive market where
competition exists at every point of time.
Illustration 9: Operation system used in coffee studio
OPERATIONAL SYSTEM
This process has three elements such as inputs, transformation process and outputs. In the
process of operation management, inputs are capital, equipment, materials, labor, facilities, time,
experience, knowledge, suppliers etc. The roastery is one of the traditional method used in
making coffee.
There are different types of operations that can be used by the curators coffee studio in their
daily routine activities. One of the process used by curators coffee studio is batch production
process, manufacturing of the products is limited in volume but it conducts in regular intervals.
Production duration of such type of goods are shorter and machines for this are flexible in nature.
The curators coffee studio are focusing on following processes are the following:
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Recycling wastes- They recycles the wastes raw materials in somewhere in the whole process
and promote social interest. This interactive practices will attract more customers.
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14Illustration 10: Process of making coffee

INTERPRETATIONS
The above process shows the overall process of making a perfect coffee by following
different steps. The quality of coffee has enhanced by following through all these steps. The
curators coffee is known for its special teas and coffees which is from different countries. The
most famous countries in terms of best coffee is Brazil. The waiters take the order of people who
choose option to dine-in the shop and all those who want to take way the stuff with them needs
to make their own order at the counter. The coffee is prepared by the waiters and not the
customers.
PERFORMANCE OBJECTIVES
The significant impact of specific performance objectives on the business functioning of curators
coffee studio teach different ways and means to the firm to secure, utilizes and positions different
resources of the business (Calvo-Mora and Roldán 2016). These five performance goals and
objectives that organization should evaluate their internal performance of operational
management systems. An organization defines its corporate strategy and then determines certain
operational performance goals which is required by the business in order to achieve its desired
future outcomes. The enterprise then configures its operating environment to fulfill one or more
of the five stipulated targets such as quality, speed, dependability, flexibility and costs are the
following:
Quality- As per the business expert and author of business performance measurement which is a
unifying theory and integrating practice. Quality is regarded as an instrument which provides
different variety of excellence and areas of specialization. The quality is depends upon the
intended performance of the product and services in the external market. The desirability of the
product's unique and new features and availability of a product plays a significant role in shifting
the demand of large number of buyers (Chen and Dimou2015). The expectation of the customer
from the firm includes high quality product along with complying all the ethics, Providing
comfortable environment. The company uses high quality raw materials of coffee and other
stuffs to be served to the customers. The quality of all their products are enhanced by applying
different methods like roasting, mixing, boiling, filtering and grounding.
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Speed- Speed objectives refers to the rate at which a company can generate large amount sales
and revenue quotes. It states that doing things fast as soon as possible in order to reduce the
operational time in preparing food and plating of that food. The firm can improve its
performance by eliminating unnecessary steps involved in the cooking process in order to
increase the food preparation on time. By providing food and other services to the consumers on
time will help to increase the image of the firm in the eyes of the buyers (Christopher 2015). The
purchaser demands various things from the business which play a vital role in deciding the image
of the company. The image may be positive as well as negative depends on the strengths of the
company which helps to transform its weaknesses into strengths. Customers expects the
relatively fast service on goods and quick respond to all the needs and queries of the buyers. The
speed of the coffee studio is to be measured in terms of responding to their customers as fast as
possible while they making an order. organization has believed that the quick response to the
service users order is increase the chances of revisiting of them which is good for the business.
For example, employees quickly response to collect the orders of customers from their table and
meet it within the minimum time than it reduce the cost of preparation.
Dependability- It refers to catering the needs and wants of different customers by accomplishing
their tastes and preferences by providing products or services. A company also measures
dependability by the ability of a product's functioning. The unique quality of a product is its
design which involves unique combination of different raw materials used in order to provide
tasty and delicious food with no involvement of artificial supplements. These supplements refers
to use of any raw material which can affect the lives of any person (Christopher 2012). The
decoration used in the food should be edible so that it doesn't poses serious threat for other
people. The chef needs to prepare food as per requirements of the customers such as stable food
for diabetic patient, less salty food for high blood pressure patient. Some time, the late delivery
of the coffee to consumer table can be increase his or her irritation. On internal basis,
dependability can affect the cost of operation because the delay in meet the user’s needs decrease
the probability of returning of the consumers towards the coffee shop.
Flexibility- This consists of flexibility of different products and services so that it can be mould
as per the client requirements. In this dynamic world every company needs to be very flexible in
its business operations in order to quickly respond all the changes takes place in the business
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context. The customer search of different qualities in the cafe such as responding good to all
their demands, quickly resolving all their queries and keep minimum level of queries by
providing good range of satisfactory services. The curators coffee studio doesn't have specific
outlined strategy to cope with different changes that may occur at the workplace. It includes
product flexibility, mix flexibility, volume flexibility and delivery flexibility has made the
operation of organization has more effective and meet the customer’s needs. With the help of
this, the new coffee drinks have developed and made the operation more flexible.
Cost- It is the final step of operational performance objectives which includes the variation in
unit cost due to the changes in the volume. The common aspect which every customer looks for
is the cost of different products (ElMaraghy 2013). The menu of curators coffee studio should be
attractive and designed after taking each and every considerations used in the daily routine
business. The cost includes direct material cost, direct labor cost and direct overhead cost. The
fixed cost involves rent of the shop, maintenance of the shop, utility bills and cost of interiors of
the cafe. Variable expenses include purchase of inventory that is purchase of cutleries, raw
materials and food supplies, equipment to prepare food, salary and wages of different personnel
who work at the workplace. The basic need of the consumers from the institution is to get high
quality products in affordable pricing and competitive pricing which every company use in order
to beat the competition in the market. Coffee Shop has used different machines and equipment to
reduce the preparation time of coffee. Although, it has offered wide range of products to its
customers but they have in lower volume which raised the cost of the coffee per unit.
SUPPLY CHAIN MANAGEMENT
Define supply chain and supply networks
A supply chain is a system of different persons such as organizations, people, activities,
information and various kinds of resources involved in transporting goods or services from one
place to the another place (Fitzsimmons and Fitzsimmons 2013). Supply chain activities involve
the transformation of natural resources, raw materials and components into a finished products
which is delivered at door step of customers. It is also known as logistics strategy which
company can adopt in order to take better decision in moving quality oriented services to its
consumers. It comprises of the planning and management of all activities involved in sourcing
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and procurement, conversion and logistics management activities. A typical supply chain begins
with the ecological, biological and political regulation of natural resources.
Supply chain network is an evolution of the basic supply chain and gain importance due
to rapid technological advancement in the competitive environment. Businesses are often part of
a larger network of organizations which requires the application of supply chain management
structure in its business (Gustafsson and Högström 2016). A supply chain network can be
strategically designed in such a way as to reduce the cost of the supply chain. Various industry
experts suggests that 80% of supply chain costs are determined by location of facilities and the
flow of movement of product. It is referred to as network modeling due to a fact that
mathematics model can be created for optimum utilization of resources. It involves creating a
network that incorporates all the facilities, means of production, products and transportation
equipment owned by the organization. Due to excessive serious threats and competition in the
industry challenges the ability of an organization. The external forces lean an organization to
modify their basic supply chain by investing in the tools and resources in order to develop an
improved supply chain network. The improved supply chain network design takes into account
taxation regulations, new entrants into the existing industries and availability of resources which
results in more complex network designs (Hollenbeck and Hotel 2008). A new requirement of
company has arisen in the form improved form of supply chain network that is reverse supply
chain network design. This form greatly affect the end-of life goods which includes all the goods
with short span of time that is perishable nature goods.
Curators Coffee Shop is one of the growing small business firm in the area of coffee and to
convert coco beans in a field to a steaming cup of delicious coffee, an effective supply chain
plays an important role. The aim of the organization is supply best coffee drink to its customers
at lower prices with good quality and taste. In supply chain of Quarter Horse, coco beans and
milks come from different suppliers. The raw materials send to roasting, manufacturing and
packaging. Firm has own six roasting centers coco beans have prepared.
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19
Illustration 11: Supply chain of Coffee studio
Illustration 12: Supply chain network

Supply chain management of Curators coffee studio
Supply chain management is a big responsibility on business in order to manage its
resources and ensure its transportation from one place to the another place. It is essential for
business to critically evaluate the demands of their customers by proper administration and
management of its internal resources. There are two types of supply chain a firm can adopt in
order to minimize its problems are the following:
In-sourcing supply chain- It refers to that type of system which includes engagement of internal
personnel and employees in order to fulfill a certain business function. The potential of
employees are analyzed by the owners and the efficiency and effectiveness of employees are
used by business in a well defined manner (Jacobs and Chase 2010.). This type of structure is
very effective for business in order to reduce its costs. It also helps in achieving common goals
and objectives of the business. Following are the advantages of using this type of procedure in its
business are:
 Employees becomes medium in order to achieve success as it understand all thye needs
and demands of the business.
 It is very effective for adopting long term business projects.
Out-sourcing- In today's modern world the trend of out-sourcing is common among several
businesses (Movahedi and Miri-Lavassani 2016). It refers to approaching third party for
accomplishing all its business tasks. Company adopt this type of technique due to several reasons
such as gaining lot of exposure from outside the business, area of specialization, expert
knowledge, ample of business opportunities. This method also possess some of the advantages
which includes various reasons:
Self managed team- It allows management to handle complex tasks of a specialized company. It
helps management in order to remove difficult situations at the workplace by proper
management of human resources in a group or team. It ensures proper team management by
taking care all the needs and expectation of all team members.
Cost benefit- It gives access to specialized skill sets of resources and processes that in sourcing
simply cannot match with significant costs. It is one of the cheaper option that allows an
organization to devote more resources to less number of projects.
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Curators Coffee Shop tries to make balance between supply chain demands and sustainable
corporate practices. At the time of buying the coffee from the suppliers, company has considered
ethical practices such as responsible coffee purchasing practices, provide farmed support
centeres, organize farmer loan programs, forest conservation etc. In addition to this, organization
has also set some social responsibilities standard for the suppliers with the intention of improving
business practices. If there is any kind of issue occur while working with the suppliers than
Quarter Horse Coffee Shop stop doing business within them until the problem is not resolve.
QUALITY PROCESSES
Define quality and quality process
From a business perspective, quality has a pragmatic interpretation as the non-inferiority
or superiority of something (Nijsse and Schepers 2016 ). It states that quality is a perceptual,
conditional and subjective attribute which may be understood differently by various persons.
Consumers may focus on the specification quality of products or services.
The primary aim behind designing of several quality management systems is to gain higher level
of customer satisfaction. The quality management process involves various steps which helps to
evaluate the requirement of business to apply quality procedures at the workplace are the
following:
Identification of goals- this step involves inspection of overall business environment in order to
find out the basic aim of the organization (Singh 2016). Employees need to know mission,vision,
values of the company.
Identify Critical success factors- These factors can be well designed production process, great
product, technical support, customer support, monetary security and employee satisfaction.
Identify internal and external customers- This step involves close monitoring of internal and
external business environment in order to determined the prospective customers from both the
sectors.
Customer feedback- customers are integral part of every business and their feedback also
matters a lot for business in order to improve their services.
Implement continuous improvements- It play a significant role in ensuring permanent growth
by executing continuous improvement in order to achieve desired future outcomes.
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Select quality management software- Business process automation is a software which can be
used in order to automate all the business process to avoid any loopholes in the system. There are
various kinds of software available in the market which help a business in order to resolve all its
problems at one shot. The rationale behind designing these kinds of software is to promote the
interest of business.
Corrective action- It is the final step of quality management process which involves one of the
important function of management that is controlling (Torfing and Triantafillou 2016). It refers
to comparing the actual process with the standard and budgeted process and find out the gaps.
These gaps can be filled by the management by taking appropriate and corrective actions to
improve the business situations.
Quality and quality management doesn't have proper definition to explain the exact aim of
providing quality to the business. Quality revolves around the concept of meeting or exceeding
customer expectation applied to different products or services. There wide range of quality
processes that can be used by the business as per the different requirements of the company.
Different quality processes are Total quality management, Six sigma which is commonly used by
the business. Following are the comparison of quality management technique of curator's coffee
studio with another firm which is NISA are:
Basis Curators coffee studio NISA
Quality The main aim of quality management
technique is on the product
efficiency.
The company gives more focus on
delivering high quality products or
services.
TQM The efficient technique of TQM help
firm in order give more focus on the
quality of beverages served by the
company to its customers.
NISA is primary small grocery shop
which deals in FMCG products or
services (Zarefsky 2014). Its main aim
is to provide wide range of services
from its competitors. The application of
TQM is less in the retail firm
Availability The focus of the company is not
confined to the quality of products
but also on providing varied
categories of products or services.
The primary goal of retail company
only on arrangement of wide range of
options and different kinds of products
or services.
Technology It play a significant role in
determining the success of the
organization success (Zhang and Jin
The introduction of new technology in
the market can affect the functioning of
the business. The positive and negative
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2016). Due to the introduction of
digitization the company use it as a
advantage rather than taking as a
challenge.
implications on the smooth functioning
of the firm is totally depends on the
point of view of the firm how it taking
as positive or in a negative way.
Quarter Horse Coffee Shop, organization has mainly focused on quality coffee beans. At the time
of sourcing of the material from the farmers, firm has set some quality gateways. On the basis of
this, the entire quality checking process has done. For this, Quarter Horse Coffee Shop has
preferred to purchase coffee beans from those farmers use sustainable and appropriate process of
been farming. On the contrary Steam Yard is one of the small Coffee Shop of UK which is one
of the major competitor of Quarter Horse. Steam Yard Coffee shop has followed check sheets for
quality process where the inspection procedure has conducted by company in order to determine
the quality issues in the raw materials.
CONCLUSION
It can be conclude from the above study that company needs to adopt different
operational management techniques in its daily routine business in order to achieve desired
outputs. The curators coffee studio aims to provide a unique , home-like feeling to their cafe. The
basic aim of this cafe is to gain customer satisfaction by providing good quality products or
services. The curators coffee studio also avail the benefit of prime location in London which help
s to attract ,ore customers towards the business. The Different techniques followed by firm help
them to gain more exposure and lot of opportunities. The above report focuses on Batch
processing operations system in the business and designed all its activities in order to give more
emphasizes on the quality of the product.
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