Java Lounge: Operations Management and Service Excellence Report

This report provides a comprehensive analysis of Java Lounge, a UK-based independent coffee shop, focusing on its operations management and service excellence. It examines the business overview, core products, employees, and customer environment. The report delves into Java Lounge's operations management, covering quality management, waste management using Muda, Mura, and Muri theory, and lean flow principles. It explores the five performance objectives: quality, service, dependability, flexibility, and cost. The study further investigates Java Lounge's supply chain, inventory control, production processes, and sales strategies. The report also includes a comparison with Starbucks' quality processes and concludes with key findings and recommendations. Appendices provide additional details on scheduling and other operational aspects, offering a detailed insight into Java Lounge's business practices.

Operations
Management & Service
Excellence
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TABLE OF CONTENTS
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................4
Business overview.......................................................................................................................4
Core Product- Coffee and Other Products or Services Offered...................................................5
Employees....................................................................................................................................6
Environment or Ambiance and Customers..................................................................................6
Operations management of Java Lounge.........................................................................................6
Quality Management....................................................................................................................7
Waste management theory and lean flow principles...................................................................7
Meaning of 5 performance objectives............................................................................................10
Quality.......................................................................................................................................10
Service.......................................................................................................................................11
Dependability.............................................................................................................................11
Flexibility...................................................................................................................................12
Cost............................................................................................................................................12
Supply chain of Java Lounge.........................................................................................................12
Storage of material.....................................................................................................................13
Inventory control........................................................................................................................14
Production process.....................................................................................................................14
Sales and after sales...................................................................................................................14
Similarities and Differences in Quality Processes of Java Lounge and Starbucks........................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18
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APPENDIX: 1................................................................................................................................20
APPENDIX: 2................................................................................................................................21
APPENDIX: 3................................................................................................................................22
Illustration Index
Illustration 1: Layout- Java Lounge Birmingham............................................................................5
Illustration 2: Java Lounge Mural..................................................................................................7
Illustration 3: Muda, Mura and Muri Theory ................................................................................10
Illustration 4: The 5S theory .........................................................................................................13
Illustration 5: Juran Approach- Total Quality management..........................................................14
Illustration 6: Theory of supply chain............................................................................................19
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INTRODUCTION
Business overview
In the present scenario, operations management and service excellence are very important
in growth and success of a business enterprise. Further, every organization whether small or
large are required to manage their operations in effective manner. Ineffective operations can
affect overall sales and profitability of businesses (Yuan, Chang and Tzeng, 2015). The present
report is based on Java Lounge which is UK based small independent coffee shop. It can be
stated that the competition among coffee shops in the country is getting more and more intense
with the passage of time. Java Lounge was founded by Akram Almulad with the objective of
providing the quality and innovative coffee to people in market. The small coffee shop is located
in 115 Alcester Rd, Birmingham, West Midlands B13 8DD. It can be stated that establishing the
shop in such a location was a risky and very bold move from Akram Almulad. The reason behind
this is that Java Lounge is located just opposite to Strabucks which is one of the leading coffee
chains in the world.
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Illustration 1: Layout- Java Lounge Birmingham
(Source:Java Lounge, 2014 )

Core Product- Coffee and Other Products or Services Offered
There are various kinds of products and services which are offered by Java lounge
Birmingham. Some products which captured my attention includes toasted mozzarella wrap
which was around £3.50, raspberry bakewell (£2.50). These are the two products which I have
personally tried during my visit in the shop. Hot chocolates, milkshakes, paninis and coffee such
as espresso are some other products which are being offered by the small coffee shop. It ranges
of coffee includes mocha to macchiato and the shop also offers different brews from iced to
Yemen. It can be also argued that all the products and services very quite high in quality in
comparison with the prices which Java lounge is charging (Jain and Shu, 2016).
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Illustration 2: Java Lounge Mural
(Source:Java Lounge, 2014 )

Employees
Java Lounge employee can be termed as highly productive and have adequate skills to
deliver quality product and services to all its customers. It can be also stated that effective
employee are the one which has helped Java Lounge to get competitive advantage over other
market players. The staff members are very helpful, friendly and always offer customers with
warm welcome.
Environment or Ambiance and Customers
It can be stated that the environment or ambiance at Java Lounge is outstanding. As soon
as customer enter the Lounge, they see different pictures regrading how it was established. The
environment gives a feeling of leisure and relaxation to its customers. On the other hand, Java
Lounge target market consists of people such as youngsters, businessman and working
professionals.
OPERATIONS MANAGEMENT OF JAVA LOUNGE
Operations management is one of the crucial and most significant aspects of businesses.
In simpler terms it can be defined as the management and administration of business practise in
order to develop the highest level of efficiency and productivity. Java Lounge operates from 7
am to 7 pm from Monday to Friday (Bogost, 2008). Furthermore, during Saturday timing of
coffee shop is from 9 am to 5 pm and on Sunday it operates between 10 am to 4 pm. It has been
analysed that Java Lounge import its coffee beans directly from its coffee plantation which is
carried out in Yemen. This also helps the brand in offering unique and very diverse taste of
coffee to all its customers (Carvalho, Paiva and Vieira, 20160.
It can be stated that Java Lounge carry out the task of blending those imported beans into
two different categories. The process of blending supports in developing coffee which has its
won texture and taste. At the time of carrying out its operations, Java Lounge tries to manage its
waste management system in most effective manner. The major competent of the shop's waste
management includes increasing recycling and promotion of cups which can be reused. It has
been analysed that while carrying out its operations, it ensures that less harm and negative impact
is made on environment (Nahmias, 2015). In its waste management system, the shops always
seeks for ways through which improve its packaging design and offer more reusable cups.
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Quality Management
1Research and Development, customer Service and Inventory Planning
Java Lounge carry out extensive research and development in order to provide its
customers with new products and services. In order to deliver customers with fast and accurate
services the brand has always takes care of quality of its products by checking it at regular
intervals. Along with this, it also focuses on working upon the feedback provided by customers.
2Development of the Products and Services
Java Lounge always tries to make sure that it deliver high quality products and services to
all its customers. There are different type of products such as Coffee and other products which
are being developed by the coffee shop. Before delivering products, chef taste the quality in
effective manner.
3Employees’ Management
It can be stated that Java Lounge has taken well care of all its employees. It focuses on
training and development programs of all its staff members. Other than this, it also encourages
their views and opinions for success of the coffee shop. Equal growth and development
opportunities are also provided to employees. Further they are being paid fair and adequately
against their work.
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Waste management theory and lean flow principles
The Muda, Mura and Muri theory is an important tool which is used to carry out the
process of waste management in organization. At the time of carrying out their operations, Java
Lounge is required to deal with and manage three type of waste which are Muda, Mura and
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Illustration 3: Muda, Mura and Muri Theory
(Source: Horvat, Antic and Jeremic, 2015)

Muri. The coffee shop is managing Mura (waste due to inconsistency in manufacturing
coffee)with the help of using just in time technique. Muda which can be termed as the activities
that are unproductive has been also removed by Java Lounge. On the other hand, waste such as
overburden of work (Muri) is eliminated by the coffee shop by using technique which is
standardization of work. At the time of carrying out its process, Java Lounge has well taken care
of three important things. The first thing among them is that people in coffee shop do not have
any kind of unreasonable burden. Further, it has also taken care of the fact that there is no uneven
load on all its machines and people. Along with this, it also removes waste from all its process.
1Production process
The coffee shop has developed effective process of production which makes sure that the
best products are being manufactured and minimum amount of waste is extracted. For this
purpose, the brand is using the latest machines to manufacture coffee and other products. On the
other side of this, Java Lounge is also making the best use of lean flow in various kind of
practises in its operations. It is used in order placing process and at the time when customer pays
their bill.
2Supply chain management
The process of supply chain management begins with decision of purchase where the
brand deals with its various suppliers to make purchase. At the time of dealing with all its
suppliers, the brand makes sure that purchases the best quality of products at convenient prices.
In order to avoid Mura, the coffee shop makes sure that all coffee beans and other products are
preserved in effective manner.
3Inventory management
In order to manage its inventory, Java Lounge has adopted for Just in time technique. It
can be also stated that the above mentioned technique helps the coffee shop to deal with issues
related to Mura in appropriate manner.
4Scheduling
On the basis of its sales, Java Lounge has schedule all its major factor such as operations,
raw materials, operations
Refer Appendix 1
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In order to assure quality in its products and services, Java Lounge has adopted Juran
Approach which is one of the most important tool of Total Quality management. Further, the
coffee shop assures quality with the help of three steps which are mentioned below as:
 Quality planing- It is a process in which the coffee shop creates awareness among its staff
members regarding goals and objectives made to improve quality. In this step, effective
training and development sessions are provided to employees so that they can make
changes to improve quality.
 Quality control- Effective ways are adopted by Java Lounge to examine overall quality of
its services and products. The staff members also check beans and taste of coffee three
times a day in order to ensure the fact that whether quality of coffee is up-to required
standards or not.
 Quality improvement- In this stage, the coffee shop seeks for the ways through which it
can gain perfection in delivering the best coffee in market. In addition to this, Java
Lounge also praise and reward its staff members for their efforts in improving quality.
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llustration 4: Juran Approach- Total Quality
management
(Source: Carvalho, Paiva and Vieira, 2016)

MEANING OF 5 PERFORMANCE OBJECTIVES
Quality
Every organization is required evaluate and measure its performance on the basis of five
performance objectives. This measurement helps businesses to become aware of the fact that in
which direction it is moving. The objectives are quality, speed, dependability, flexibility and
cost. Further, it can be stated that quality is the first and one of the most important objectives of
organization. In simpler terms quality can be defined as specification of particular product or
service (Alon and Lattemann, 2016). Quality can be termed as good when customers or people
consuming/using products and services do not have any kind of complain regarding the same.
High quality also results in lowering down overall cost of production, increasing rate of customer
satisfaction and loyalty. In terms of Java Lounge, it can be stated that it has maintained
appropriate level of quality in all its processes along with products and services (Giraud and
Poeppel, 2012). The shop is also able to generate more revenue because of displaying high
quality standards. At the time of carrying out its operations there are some mistakes which are
being made by the shop. In terms of Java Lounge, it can be stated that the speed of services is
appropriate. This means that the services which are being delivered by the shop are not too slow
or fast. People are not required to wait for long period to place their order and receive the same
(Nahmias, 2015). However, it can be argued that in order to provide quality services and
products Java Lounge, requires some time. Therefore, speed of responding to customers order,
need and demand of Java Lounge can be termed as satisfactory.
Service
Another performance objective which is important for the long term success of a business
organization is dependability. Further, it can be defined as the criteria which determines whether
customer are able to get products or services on time or not. At the time of carrying out their
operations every business enterprise is required to ensure that product are being delivered to
customers on time.
Dependability
Another performance objective which is important for the long term success of a business
organization is dependability. Further, it can be defined as the criteria which determines whether
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