Operations Management Processes Analysis: Canvas Cafe

This report provides a comprehensive analysis of The Canvas Cafe, a small social organization operating as a cafe, located near Liverpool Street station in London. The report begins with an introduction and overview of the cafe, detailing its operations, products, and competitive landscape. It then analyzes the operational management processes, highlighting challenges related to volume, variety, variation, and visibility, and suggests potential improvements. The report critically discusses the five performance objectives (quality, speed, dependability, flexibility, and cost) and evaluates the cafe's performance against each objective, providing recommendations for improvement. Furthermore, the report examines the cafe's supply chain, evaluating its effectiveness and offering insights for optimization. Finally, it defines the similarities and differences between The Canvas Cafe and Starbucks, providing a comparative analysis of their business models. The report concludes with a summary of findings and recommendations to enhance the cafe's operational efficiency and customer satisfaction.

Operations
Management and
Service Excellence

TABLE OF CONTENTS
1. Introduction and overview of The Canvas Cafe:....................................................................3
2. Analyze the ways of operations management processes that support the Canvas cafe:.........4
3.Critically discuss the 5 Performance Objectives to the Canvas cafe and what improvements
need:.............................................................................................................................................6
4.Explain the supply chain of organization and critically evaluate it..........................................8
5. Define similarities and differences between the Starbucks and Canvas Cafe......................10
CONCLUSION .............................................................................................................................12
REFRENCES ................................................................................................................................15
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1. Introduction and overview of The Canvas Cafe:
Introduction and overview:
The Canvas Cafe is a small social organization which manufactures freshly baked
products; hosts event operates its business as a cafe. The canvas cafe is situated in 0.5 miles
north of Liverpool street station, by the touristic street brick lane in London. This cafe is started
by Ruth Rogers( The Canvas cafe & creative venue, 2016). She is a former actress who after
successful campaign with her charity body gossip. After this campaign she decided to open the
cafe by keeping in her mind that they focusing on making London happier through making a
innovative area. In that venue, customer shares their felling by writing on cafe’s walls and also
enjoys their home made goods. The cafe has been started since October 2014 and operated by
only 6 people. In the canvas cafe they operate baking, hosting events and barista activities.
The canvas cafe is special because of the customers are able to write on store walls and
express their thoughts and feeling. The Cafe sells product like cakes and sandwiches which are
of £3-5, range of coffee and beverages are £2-4 and the event bookings range is £60-150 per
occasion. They give special rates to its customer for charities. The store operate timing is
Tuesday to Friday 9am to 9pm, Saturday to Sunday 10 to 8 pm and it is closed on Monday. The
store outsources some baked goods from other local bakeries and also prepares on the spot
orders of cakes and other goods. The key competitors of mentioned store are Cafe at Second
Home, The Truman Brewery food market, Doppio, Joe's Kid, Nude Espresso, DF Mexico.
Accordingly cafe layout in This store has 2 floors the upper floor is used as a cafe and
the bottom was used as cafe and also used in events time. The both floor are transformed during
its events and occasion. The store has a garden which is used as a cafe area and additional space
is also utilized at the time of events. The map of location and layout of canvas cafe are:
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4

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customers were served during visit is shown on below diagram:
The capacity of canvas cafe is during rush time they served approx 100 customers and in other
day they served 50 to 60 customers per day. The busy time for canvas cafe in a day is between
14:00-16:00, the busy day in week is Saturday and in year the busy month for mentioned cafe is
October.
2. Analyze the ways of operations management processes that support the Canvas cafe:
Operation management process supports the organization in many ways. Operation
management process transforms inputs i.e. labor, capital, land, building, material and
information into outputs i.e. products and services which adds value to the customers. The
canvas cafe must try to enhance quality of their operational process to meet customer preferences
and needs. Controlling of operational process and its cost makes it difficult for the competitors to
produce goods of the same quality as per the original product(Brown, Bessant, and Lamming,
2013. ). This controlling helps the organization to achieve goods of high quality. The operational
process support to canvas cafe ,if they provides training to employee and keeping qualified
workers and mangers in organization. The environment of work place is user friendly for the
customer that will help the user in effective function, further it support the operation process of
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management(Campbell, Jardine and McGlynn, 2016). The store adopted new technologies and
control system in its work place and integrating them. These all are ways for effective
operational management process.
It has been evaluated that The Canvas Cafe store has faced many operation challenges
which are given below:
Volume: The canvas store is a low volume and low staffed for operation process. The
store provides to customer short order which depending on customer demand and have
comparatively low repetition of products. Hence, because of low repetition it increases
production cost of store. The other challenges faced by store are low amount of staff. Due to this
reason, the staff performing own job but more job also. The result of this issue the staff being
highly skilled which reduce the repetition of work. Though the staffs are expected to perform
number of task the large majority of responsibilities fall on the owner. The owner is also
involved in day to day activity. The high production cost the store cornering itself in with a
increasing amount of cost with market forced limits to sales price. The other coffee shops which
are the competitor of canvas store also offer their customer more unique and personal
atmosphere.
Variety: The other operational challenge of canvas store is its variety. The canvas store as
compare to its size they offer high variety. They offer customer 7 types of brunches and 8 types
of lunches including daily specials. The cafe offers also 9 types of coffees with teas and so on.
The menu of canvas cafe changes according to season, however due to the size of the store, it is
fairly flexible to tailor goods according to the customer needs(Evans and Lindsay, 2013. ). The
events which cafe holds have no standardization in place, its change week by week and with the
upcoming events they updated on websites their events. Due to this, the cafe is unable to output
the advantage of 'economic scale', as most of the products are purchase locally in small batches
from local bakeries and it depends on the frequent basis.
Variation: In Canvas cafe the demand variation are accordingly seasonal. In this cafe
during January the cafe suffers a shortage of customers due to closes for Christmas period. The
figure of customers in Canvas cafe is shown on already in above diagram in introduction. The
perception foe people to go to into coffee shops has changed time to time. In Canvas cafe the
variation demand increases towards the weekend when events are held in the cafe. Though this
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poses a larger threat of restaurant and pubs competing at the market area(Christopher, 2016). No
important changes in the staffing have been known meaning an increase in stock and becoming
understaffed. This result in a lack of utilization of resources at time.
Visibility: Hence The '4Vs' model purposes that customer will have a relatively they not
like to waiting for receive their needs. The business wants to provide to customer a welcome and
home-like culture and when customer enter in cafe, each item handled with care. According
present people perception they pay more for the quality of the goods. It is very difficult for the
Canvas cafe to achieve high resource productivity which outcome is high cost operation. To
enhance their efficiency the manager ensure that the human resource of business are completely
customer oriented.
Furthermore, According layout of Canvas cafe there is little visibility for extra space
down stairs, which outcome is that the customer not wanting the enter supposing the cafe is at
full capacity.
3.Critically discuss the 5 Performance Objectives to the Canvas cafe and what improvements
need:
The performance objectives of Canvas cafe:
There are five main performance objectives of cafe i.e Quality, Speed, Dependability,
Flexibility and Cost. The ways in which the Canvas secures, utilize their resources will have
important impact on the level to which they successfully follow specific performance objectives.
 Quality: it is a objective of performance of organization which Referred as a doing
things right. The business provides products which are fits for customer purposes and
produced according customer specification(Hill and Hill, 2012. ). The customer
expectation for Canvas cafe is that they provide high quality, ethically sources products,
provide high quality product and services and provide comfortable environment.
Performance against objective: The Canvas cafe ethically locally sourced and home
made produce. The atmosphere of cafe is friendly and welcoming. The cafe provides high quality
products to their customer as customer needs. The cafe is wiling to source transformed products
and input resources to meet customer needs. This is identified that Canvas in the customer
satisfactions rate for quality of food is 78% are in satisfied category and in quality of services
68% are satisfied. The cafe has received negative feedback that environment is not comfortable
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in venue. This negative feedback which outcome is its reduced satisfaction of customer. Hence
the Canvas cafe make strategies for improve their environment which satisfied employee. Speed: it is a refereed as a doing things fast which also a objective of performance of
venue(Mahadevan, 2015. ). The minimize time between the placing of order and
receiving the product. The customer main expectations of speed services is that the fast
service on products and fast respond of queries and orders.
Performance against objectives: The delivery services of Canvas is sluggish because
sometimes customer will wait for their orders. Occasionally coffee that are not up to the standard
of barista's expectations are thrown out which outcome is that the cost per unit in increased,
increasing overall cost and increasing wait times. This is indicated in the online feedback of
canvas cafe is that the delivery service is dreadful service(Google, 2015.), Where 32% are
neutral and dissatisfied with services. Hence the improvement of delivery time is also important
for canvas cafe which is reduce through making some strategies. Dependability: it is referred as providing product and services to customer when they are
needed. It includes service according to customer expectations i.e stock available for
orders, open as advertised, keep customer in queues to a minimum and provide products
in according customer needs(Oakland, 2014).
Performance against objectives: The canvas meets this objective they provide products
and services to customer in the time scale quoted in mostly time. The stock always available in
cafe which fulfill the customer demand. Sometimes the food and coffee takes time to deliver
according customer needs. The cafe not make any specific strategies to resolve this problem.
This is especially important during morning peak hours when so much rush in cafe and all
customer wants their orders, but cafe provide try most that the goods are received on time. Hence
the delivery to customer in peak hours they need to improve through make specific strategies.
 Flexibility: Customer expectations in flexibility is that they respond to demand in
capacity, quick to respond to queries and keep queries minimum(Dahlgaard And et. al.,
2013. ).
Performance against objective: the staff of cafe occasionally find it difficult to adjust to
change in needs of customer. The canvas cafe does not have any specific strategies to cope with
an increase or decrease in demand meaning that the staff are left cafe because of overworked or
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not doing something productive. The outcome of this result is increase stock which increase the
cost per unit. The flexibility of workforce is also improve in canvas cafe.
 Cost: Cost is a referred as a price of product that the cost is fixed accordingly quality of
product(McIvor, 2013. ). The cost expectation from customer to canvas cafe is that high
quality, high price and competitive pricing.
Performance against objective: The Canvas cafe is ordered stock twice per week which
provide sufficient resources, there is a limited opportunity to source from lower alternatives. In
the finding of survey shows that most of the customer of Canvas believe that the the cafe provide
products in reasonable prices. The cost of the goods is limited unproportioned to the selling
price, which may increase according to the competition.
4.Explain the supply chain of organization and critically evaluate it.
Supply chain is a network between the organization and its consumers. It also includes
production and distribution of a product with the channel of distributions from one process to
another (Chandes and Paché, 2010). Canvas Cafe supply chain describes the steps by which product is produced and given to
the ultimate consumer. Canvas Cafe is dealing in Baked food, events and operating in
cafe products and It provides various types of coffee like green coffee, black coffee etc
(Foropon and McLachlin, 2013).
 Sourcing and outsourcing: Product outsourcing began as cost cutting measure, but
Canvas Cafe creates real sustained value for far strategic ends. Organization sourcing
practice performed with the operational infrastructure. While in outsourcing includes the
practice used by the different companies to reduce cost by transferring portion of work to
the other organization. Outsourcing is effective cost saving strategy when it is used
properly by canvas cafe. The supply chain management is all about delivering right product to right people at the
right time and at the right price (Fredriksson and Persson, 2011). In real life, it is difficult
to carry out this thing but with in a systematic manner and with the proper planning it can
be effectively executed. In Canvas cafe, professionals are help to the company in supply
chain management in the organization. Following steps can be considered in supply chain
management of Canvas Cafe:
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