OPS 360

1. Menchie’s
Brianna Broadwater, Brendon Wilsey,
Jared Laird, and Margarette Bou

2. Brief History
• First store in Valley Village, Los Angeles, California in May 2007
• Started franchising in 2008
• Mission Statement “we make you smile”
• Delivers mission through employing the 3-P principle: People, Place, and Product
• 518 locations around the world

3. Current Operations Strategy
Three Phase System
Up to two channels
Self-Service:
Phase 1: Customers take cup, choose flavors
Phase 2: Customers add fruits or candy
Phase 3: Customers pay
Phase 1
Phase2
Phase 3

4. Customer
(Group)
Time In Time Out Wait Time
(seconds)
# of Phases # of Server # of Fro-Yo Service Time
(minutes)
1 5:06 PM 5:11 PM 0 3 1 5 5
2 5:20 PM 5:26 PM 0 3 1 2 6
3 5:25 PM 5:28 PM 0 3 1 1 3
4 5:26 PM 5:30 PM 0 3 1 1 4
5 5:27 PM 5:31 PM 10 3 1 1 4
6 5:31 PM 5:34 PM 0 3 1 2 3
7 5:32 PM 5:37 PM 0 3 1 2 5
8 5:34 PM 5:36 PM 0 3 1 1 2
9 5:37 PM 5:39 PM 0 3 1 1 2
10 5:37 PM 5:42 PM 0 3 1 1 5
28 6:21 PM 6:26 PM 0 3 1 1 5
29 6:22 PM 6:28 PM 0 3 1 1 6
30 6:24 PM 6:29 PM 0 3 1 1 5
AVERAGE 7.33333 1.566667 4.8

5. Advantages and Disadvantages of Current Practice
ADVANTAGES
• Simple and Efficient
• Employee labor
• Cost structure (Weight)
• Self-Service, customer customization
• Whatever combination they want.
• However much they want.
• System able to Handle Traffic
• Average wait in line during peak hours:
7.3 seconds.
DISADVANTAGES
• Customers make decision in system
• Customers spend on average 4.8m in
system
• Clustering and subsequent
bottlenecking
• Majority of time spent choosing flavors
• random clustering
• No clear exposure to Menchies’
other products
• Menchie’s other products not visible or
in the system. (Cakes)

6. To help alleviate bottleneck:
1. Make signs clearer
2. Add “New Flavor” sign to call attention
Insert other products into system:
1. Cake sign above the flavors
Possible Improvement of Current Practice

7. Current Practices for
Quality Management Control
Strawberries
• Ordered in 2-3 cases
• High demand
• 1 case= 4 packages, 32 oz
• 1 package makes 2 batches
• Avg. demand = 3 batches/day
Bananas
• Ordered in single cases
• Low demand
• SS = as low as 2 bananas
• LT = 1 day
• perishable

8. Quality Management Control
Strawberries Bananas
# cases an order 3 1
number of packages a case 4 (32 oz) 6 (1/2 lb)
# batches per package 2 1
# batches used per day 1-5 depending on demand 1-2 depending on demand
Costs 6.43 per package .59 a lb
25.72 per case 3.54 a case
3.22 per batch .30 a batch
Last Order date 2/20/2016
max inventory 4 cases 2 cases
Lead Time 1 day 1 day
last time? fridge 1-3d cut 5-7d whole 5-7 in fridge
counter 1 day cut , 1-3 day whole 5 hours sliced
freezer 6-8m whole 3-4m cut 2-5 months in freezer

9. Quality Management Control

10. Advantages and Disadvantages for
Quality Management Control
ADVANTAGES
• keeping up with demand
• small lead time
• reduces risk of a stockout
• small safety stock
• reduces risk of a stockout
DISADVANTAGES
• perishable
• bad fruit = wasted expense

11. Possible Improvements of
Current Practices for Fruit Quality
1. Ordering less fruit for delivery, increasing the number of deliveries
• High level quality for Menchie’s patrons
• Set a new delivery schedule
2. Move bananas storage from from fridge to freezer
• Cut back cost of wasted bananas
• $47*518 locations = $24,346 savings a year from Bananas
• Reducing food waste footprint

12. Overall, Menchie’s is very efficient
• Simple System
Operations System:
• Can be more efficient
• Save time & Maximize Merchandising
Quality Management Control:
• Save money on Fruits
• $47*518 locations = $24,346 savings a year from Bananas
Summary

13. Questions?