Operation Management and Service Excellence at Ozone Coffee Roasters

This report provides a comprehensive analysis of Ozone Coffee Roasters, a London-based cafe, focusing on its operation management and service excellence. The study begins with an overview of the organization, including its history, location, capacity, operating hours, and service offerings. It then delves into the key operation management processes, such as order taking, stock control, human resource management, and the preparation process within the kitchen. The report applies the 4Vs of operation management – volume, variation, and variety – to assess the cafe's operational efficiency. It also includes a critical discussion of five performance objectives: quality, speed, dependability, flexibility, and cost. Furthermore, the report examines the organization's supply chain and identifies areas for improvement, offering justified recommendations to enhance operational effectiveness and customer satisfaction. The report provides a detailed understanding of Ozone Coffee Roasters' operational strategies and their impact on service delivery and business performance.

Running head: OPERATION MANAGEMENT AND SERVICE EXCELLENCE
Operation Management and Service Excellence
Ozone Coffee Roasters
Student’s name:
Name of the University:
Author’s note:

1OPERATION MANAGEMENT AND SERVICE EXCELLENCE
Table of Contents
1. Introduction and overview of the organisation Ozone Coffee Roasters......................................2
2. Key Operation Management process of Ozone Coffee Roasters................................................6
Order taking:....................................................................................................................................6
Stock control:...............................................................................................................................7
Professional service process in Ozone Coffee Roasters..............................................................7
Managing human resources:........................................................................................................8
Preparation process in kitchen.....................................................................................................8
4V’s of Operation management process:.....................................................................................9
Waste Management:..................................................................................................................12
3. Critical discussion of 5 performance objectives applying to Ozone Coffee Roasters...............13
i) Quality:...................................................................................................................................13
ii) Speed:....................................................................................................................................13
iii) Dependability:......................................................................................................................14
iv) Flexibility.............................................................................................................................15
v) Cost:.......................................................................................................................................15
4. Critical discussion the supply chain of the organisation Ozone Coffee Roasters.....................16
5. Identification of needs of improvement and recommending to the operation and justifying
rationale.........................................................................................................................................18
Reference List................................................................................................................................22
Appendix........................................................................................................................................24

2OPERATION MANAGEMENT AND SERVICE EXCELLENCE

3OPERATION MANAGEMENT AND SERVICE EXCELLENCE
1. Introduction and overview of the organisation Ozone Coffee Roasters
This study sheds light on highlighting the operation management process and service
excellence of a London-based cafe, Ozone Coffee Roasters. This cafe was established in the year
1998 with just three passionate founders in New Zealand. The management of this cafe demands
that Ozone Coffee Roasters connects the coffee lovers to coffee farmers.
Location and Capacity:
In the UK, Ozone Coffee Roasters started its venture in the UK in the year 2010 with 11
employees. Ozone Coffee Roasters has its cafe at 11 Leonard Street, London, EC2A 4AQ
(Ozonecoffee.co.uk 2017). Ozone Coffee Roasters is a coffee bar and eatery and it is one of the
well-known cafes for London people.
Figure 1: Location of Ozone Coffee Roasters in Leonard Street in London
(Source: Ozonecoffee.co.uk 2017)
This cafe offers thirty seats and sitting arrangement includes chairs and sofas. The whole
cafe and the lounge are centralised air-conditioned. Mainly professionals and young students
visit this cafe. Young professionals and tourists mainly visit the cafe for breakfast and lunch. In
addition, young students come occasionally for brunch. There are many local residents who
come to this cafe for sipping hot coffee and snacks.

4OPERATION MANAGEMENT AND SERVICE EXCELLENCE
Considering the competitors, in Leonard Street, apart from Ozone Coffee Roasters,
Renzo is one such cafe and offers various types of coffee and snacks preparation. The ambience
of Renzo is nice and Renzo is cheaper than Ozone Coffee Roasters. The Book Club is another
cafe on Leonard Street and it offers coffee, snacks, burgers and alcoholic beverages too. The
Book Club is famous for cultural events and its cosy ambience. This cafe opens at 10 am and it
closes at midnight. Kaffeine is another famous cafe in London and it is near Great Titchfield. It
is mainly a coffee shop that offers hot coffee, cold coffee, espresso coffee and snacks to the
customers (Smith et al. 2014).
Figure 2: Seating area in Ozone Coffee Roasters
(Source: Ozonecoffee.co.uk 2017)
Operation hours:
Monday to Friday (7 am -10 pm) (Kitchen closes at 9 am)
Saturday to Sunday (8.30am -5.30pm) (Kitchen closes at 4.30pm)
Service and products:
Ozone Coffee Roasters offers breakfast, lunch, sweets, brunch and various types of
coffees and snacks to the customers. Ozone Coffee Roasters offers espresso coffee, cold coffee,
chocolaty coffee. There are various types of names that they have given their blended coffees,
Empire, Hodson, Brothers, Decaf, Urrutia and much more. Ozone Coffee Roasters provides

5OPERATION MANAGEMENT AND SERVICE EXCELLENCE
flavour in coffee as nougat, malt, caramel, orange, apricot and milk chocolate. Apart from
chocolate, snacks like baked stuff, sandwiches, cheesecakes, bagels and doughnuts are also
available in the cafe.
Most importantly, both males and females work as a staff and they have uniform during
working hours. During the visit, there were 10 staffs altogether who served the customers and
were responsible for making snacks and coffee for the customers. Moreover, they informed that
during the weekend, all 10 staffs are available, whereas, on weekdays, 8 staffs come on roaster
basis. At a time, 5 staffs work on a shift basis and the staffs have a rotational shift.
Figure 3: Allocated work member and organogram of Ozone Coffee Roasters
(Source: Self-developed)
The layout of the Cafe:
The layout of the cafe is simple. The whole cafe is decorated with expensive wooden
furniture and tiles. The counter has easy access to the customers. The chairs and sofas are soft
and eye-soothing coloured. Customers can sit either soft sofas or on ergonomic chairs. In case,
the occupancy of the cafe gets full, there is a lounge outside the main area where the customers
can wait. The snacks and coffee types are displayed well to show the customers of their
offerings. The cafe is a rectangular shape and all the four corners have seating areas and the

6OPERATION MANAGEMENT AND SERVICE EXCELLENCE
counter is in the left direction. Staffs play soft music inside the cafe and there is a parking lot
outside the cafe. Ozone Coffee Roasters got 4 stars from Food Hygiene Standards and the food
and coffee preparation techniques are transparent in this cafe (Ozonecoffee.co.uk 2017). There
are various types of snacks preparation machines and staffs use technologies in preparing coffees
and snacks. The average waiting time for the coffees and snacks is 5 minutes. The menu card lies
on the table and customers have to go to the counter in order to give their orders. The staffs
collect the money and take the orders. After that, the snacks and coffees are served to the
customers.
Figure 4: Layout of Ozone Coffee Roasters
(Source: Self-developed)

7OPERATION MANAGEMENT AND SERVICE EXCELLENCE
Figure 5: Ambience of Ozone Coffee Roasters
(Source: Ozonecoffee.co.uk 2017)
2. Key Operation Management process of Ozone Coffee Roasters
Operation management enables the management to identify the customers and do the
day-to-day work within the cafe. As stated by Khanna (2015), operation management defines the
organisation's management of resources in order to create and provide services and products. In
Ozone Coffee Roasters, it is a small organisation and one staff has to play several tasks. Within
the organisation, transformed resources are materials, information and customers and
transforming resources are facilities and staffs. These can be called input resources. Process and
capacity efficiency is a success factor for a cafe as a cafe has to meet the fluctuation in demand
(Jacobs and Chase 2013).
Order taking:
In Ozone Coffee Roasters, when customers visit the cafe, staffs welcome the guests and
take the guests to the seating area. After that, the staffs go to the table to take the order. The
staffs provide the menu card and ask the guests about their orders. When the guests ask any
information, the staffs answer all with a smile. Staffs must ask the customers about the order in
the first approach (Heizer 2016). During the peak time, it is observed a queue in the billing

8OPERATION MANAGEMENT AND SERVICE EXCELLENCE
section and staffs can adjust the queue. Sometimes, staffs have to explain different portion sizes
to the guests and assist with the menu section and tell the guests about the time it may consume
to prepare. During the interview, the staffs affirmed that some of the customer's order for takes
away.
Stock control:
Stock in a cafe can be perishable and non-perishable; however, perishable items are
butter, cheese, yoghurts, milk and ice cream and non-perishable items are fruit cups, coffee
beans. Ozone Coffee Roasters order the coffee beans in every 7 days and raw material
management has been done on the responsibility of the staff. In inventory management, Ozone
Coffee Roasters follows the manual monitoring and automation. Firms always want to minimise
the stock out and the staffs should check the supply of raw materials and coffee beans (Osborne
et al. 2013). The staffs need to delegate the responsibility to control the inventory.
Professional service process in Ozone Coffee Roasters
Figure 6: Professional service process
(Source: Self-developed)

9OPERATION MANAGEMENT AND SERVICE EXCELLENCE
Managing human resources:
The job design and managing human resource are the important aspect in a cafe. The
organisation culture of Ozone Coffee Roasters is to customer-first attitude. Human resource
operations include the job analysis, employee relationship and administrative services
(Krajewski et al. 2013). In decision-area of operational management, manager of the cafe sets
the week-off roasters for the employees to set the shifting hours and week-offs.
Preparation process in kitchen
Ozone Coffee Roasters has a small kitchen with all possible equipment; however, most of
the snacks and coffee are made in front of the customers to increase the transparency of the
process. During the lean hours in the morning, most of the preparation is done to smooth out the
preparation process in evening hours. Staffs in the kitchen can keep the preparation for the
position between bulk storage and cooking equipment to ensure the right flow of the pattern
(Koh et al. 2016). Different things keep segregated, i.e. snacks, flour, chicken, cakes, baking
ingredients.
Figure 7: Kitchen of Ozone Coffee Roasters
(Source:Ozonecoffee.co.uk 2017)

10OPERATION MANAGEMENT AND SERVICE EXCELLENCE
Figure 8: Layout of kitchen
(Source: Self-developed)
4V’s of Operation management process:
Volume:
In cafe sector, the volume of the operation is the key to the business and the staffs have to
repeat their works daily (Osborne et al. 2013). The procedure and standards become same as
combining their work. While talking with the management, I came to know that Ozone Coffee
Roasters hire those employees who have specific knowledge in cafe and operation process of the
cafe. Ozone Coffee Roasters provides low-cost food items and they try to increase the volume of
production with lower labour. During the visit, I saw each staff was working hard and they do
various types of work. The staffs can handle 20 customers at a time. The high volume of snacks
and large coffee cups with low cost can increase the sales.
Day of the week Customers Booked
(per-hour)
Walk-ins (per hour) Total
Monday 4 43 47
Tuesday 5 45 50
Wednesday 7 50 57

11OPERATION MANAGEMENT AND SERVICE EXCELLENCE
Thursday 3 34 37
Friday 12 67 79
Saturday 14 80 94
Sunday 19 96 105
Total (average total customers per-hour) 469
Table 1: Recorded approximately footfall of customers in Ozone Coffee Roasters
(Source: Self-developed)
Variation:
The cost of operation per unit cost can be kept low as the demand is relatively stable
(Baird 2014).The firms have to keep in touch with the customers' demands and calculation of
peak hours. Moreover, time-wise, the fluctuations of demands get vary. The staffs of Ozone
Coffee Roasters maintained that during evening and morning when the customers' footfalls are
high. Ozone Coffee Roasters updates with the demand of the customers and they have included
new coffee preparation like chocolate coffee and cold coffee. In addition, the staffs are given the
training to increase customer satisfaction process. Management of Ozone Coffee Roasters asks
the customers to put their remarks. Ozone Coffee Roasters need to operate the business in a way
that they should provide the customers with their demands. During the interview, one of the
staffs of Ozone Coffee Roasters commented that this cafe provides regular variation in season
basis. In the winter season, demand becomes high in Saturdays and Sundays. During the winter
season, Ozone Coffee Roasters surprises the customers with a variety of food items like chicken
based snacks, different flavoured coffee and pudding in various styles. Variation of food items
can also be followed through trends as trends are downward and upward movement in demand
(Campbell et al. 2016). In Ozone Coffee Roasters, when management sees growth or decline in
the selling of food items, they bring new variation.
Variety:
The services offered by the cafe must be available for wide varieties (Goetsch and Davis
2014).Ozone Coffee roasters provide a variety of coffee and snacks to the customers. The
variation in items can increase sale and increase the customers' footfall as well. This cafe offers