Engineers Look at a Business Practice Notes 1. What is the DMAIC process 2. What do the following represent Define Muesure Analyze Improve Continew 3. How does the DMAIC process apply to Dixon Plastics Homework: Complete the Heirloom Jewels Case Study using the DMAIC process. (See the Holden's Restaurant Case Study as a model) 05/24/2017 IE 220 -Fall 2017 11 1 HOLDEN'S RESTAURANT Holden's Restaurant had been popular for years. Generations of families enjoyed meals at Holden's. Many people in the community had also worked there. But today, Holden's has a problem. The past success has become a distant memory. Few people the go to Holden's now. Only 76 customers on average are coming to the facility, while in past 188 customers came to the facility each day. The average bill was $10.50 per customer with 51% profit. Suzanne Holden, granddaughter of the founder, is going to try to revive her family's business. She has begun to interview Holden staff and former customers to see what the problem is. “I'll tell you why I stopped going," said Andy Davis. “The service was terrible. I'm always on the go, and I don't have time to wait for a meal. " "Yes, time was a problem," said Roberta Pastor, a Holden's waitress. "We took too long. Our equipment was terrible, and we never had enough wait staff. And I'll tell you something else. When you're only paid minimum wage and you don't get many tips, it makes it difficult to live." I was always running. We had to take the order all the way into the kitchen. We had to assemble the salads in one place. We had to pour the drinks in another place. I was worn out when I finished work. “I stopped going there because of the smell," replied Jean Morellil. "In the morning you had the retirees sitting in there for over three hours smoking cigarettes. It was disgusting Cigarette smoke combined with grease from breakfast left a nasty odor for lunch customers. Assistant Manager Scott Johnson said, "We didn't run the restaurant very well. We insisted on balancing the tables among our wait staff, but this meant that we wouldn't let our customers sit in their favorite location. People feel like they own this place, and they want to sit at their own table. And another thing - we changed our prices too often. Every time a price would change on something we bought, we'd change the price of everything. People got tired of the constant price increases. Gretchen Moody, the restaurant's long-time cook, was very angry. "For years your grandfather and your mother let me buy my own food. But then when your mother got ill, the hot shot manager you hired started buying garbage. He wouldn't let me buy anything, and he wouldn't listen to me. The food tasted terrible. Suzanne had a lot of information, but she wasn't sure where to begin. 05/24/2017 IE 220-Fall 2017 10 HEIRLOOM JEWELS, INC Heirloom Jewels is a manufacturer of high-quality, unique jewelry pieces. The work and their productivity. is performed by artisans who can earn up to $12 per hour depending upon their skill Heirloom Jewels has recently been faced with problems meeting its orders. Demand for rare jewelry pieces has grown as the baby-boom generation has reached 50 years of age. Heirloom cannot seem to get enough employees to meet its demands. Entry wages are above average, and working conditions are ideal. The work is very intricate and not something that everyone can do. New employees frequently quit after only a few days of being on the job. Work is performed at work benched with good lighting. Employees are expected to make an entire jewelry piece. This is so they develop pride in their artisanship. New employees are given an opportunity to work on high-value items from day one since they can earn a bonus for the value of the work they produce. Since Heirloom prides itself on hand-crafted jewelry, it makes very sparing use of tooling. Even the jewelry clasps, pins, and safety chains are handmade. The quality control inspection area is a major bottleneck in the plant. Inspectors very carefully review each piece and note any flaws. When flaws are found, the inspectors repair these themselves. The most common problems are metal cavities, artisanship, and loose-fitting gems. Often the jewelry will spend as much time in poor quality control as in production. Part of the delay in production is due to the security given to the materials used in making the jewelry (gold, silver, gems). Employees are issued the materials needed with each order. Gold and silver are issued in thin wire lengths which are melted at the work bench by the employee and then poured into molds. Any mispouring can result in cavities in the jewelry piece, which must then be remelted. Employees must ask for more metal wire by filling out an inventory control loss form. Excessive requests for additional metal can result in termination. 05/24/2017 IE 220-Fall 2017 12 Memorandum To: Suzanne Holden From: Jack Byrd, Jr. Subject: Turnaround Strategy Date: 1/21/8 I have reviewed the operations of the restaurant using the DMAIC process shown in Attachment A. These perspectives are probably not new to you. The challenge you face is how to get customers back in to the restaurant. I suggest the following. 1. Start now by making the restaurant smoke free. While you may lose some customers, you will gain more customers who don't want to eat in a smoke filled environment. The County Health Department is expected to pass a no smoking ordinance soon so a no smoking policy will not hurt you. 2. Begin a buy-one-get-one free promotion. This will generate new customers. This will also reintroduce the restaurant to people in the area. The extra cost should be minimal since you have extra food going to waste. 3. Give your wait staff tokens to give to their friends. When these friends come to eat your wait staff will receive a bonus of $1 per token. This will increase the money made by your wait staff and give them a reason to stay with you. . 4. Let your cook design a new menu with “comfort foods” that are inexpensive to prepare and appealing to customers. This menu will be in contrast to the standard menus of most chain restaurants. Reducing the amount of fried foods on the menu should also reduce the order of grease. 5. Redesign the layout of the food preparation area so that wait staff can be more efficient and take less time to prepare a meal. Establish a standard of one wait staff for 10 tables once you build back your customer volume. 05/24/2017 IE 220 -Fall 2017