CREAMISTRY IMPROVEMENT PLAN

TABLE OF CONTENTS

Executive Summary pg.1 Define. pg. 2 Measure. pg. 3 Analyze.. pg. 4 Improve..pg. 5 Control .. pg. 6 Short Summary .. pg. 8 Appendix . pg. 9

EXECUTIVE SUMMARY
Executive Summary; the Executive Summary is not to exceed 1 page. 1.1.1.1.Purpose/Problem Statement 1.1.1.2.Critical tools / methods used in Analysis 1.1.1.3.Major results / findings (Conclusions & Recommendations bulleted or numbered list lifted from body text) 1.1.1. Improvement & Results: although the report will not be graded on the amount (magnitude) of money or time you save positive improvement is expected. That means a pilot study or simulation must be performed to estimate project performance. (5%) 1.1.2. Introduction 1.1.2.1.Purpose 1.1.2.2.Scope 1.1.2.3.Background, (this explains why this process and issue were selected)

Define Phase: Customer needs are stated and the processes and products or services to be improved are identified. Initiate project charter and plan. Define deliverables are listed below: 1.1.1. Problem Statement* Creamistry, a liquid nitrogen ice cream shop in Irvine, has had numerous complaints about wait time during peak hours. Some reviews have mentioned wait times exceeding an hour. Because Creamistry is one of the first establishments to provide liquid nitrogen ice cream in the West Coast, there is a high demand for the product which results in exceptionally heavy traffic. Although the wait times can be partially attributed to novelty, there are also numerous flaws in the production process. For example, the wide range of flavors and toppings available have caused indecision among newer customers. 1.1.2. Scope of Project (boundaries)* The scope of project is limited to the simple process of serving ice cream. The current process requires measurement of ingredients. Each flavor and base has a different freezing so specific amounts must be used in order to freeze effectively. Our team will attempt to expedite this step or eliminate it entirely. Implementation will not require a significant amount of resources or training. 1.1.3. Importance of Project* The importance of this project is to eliminate wait time. The wait time is a main cause as to why we are losing customers and it can discourage new customers from experiencing a new way of enjoying ice cream. When arriving around peak hours, the wait time can extend from 15 minutes to 60 minutes for a bowl of ice cream. From the various amounts of flavors to the significant amounts of toppings, it makes sense why each person has a hard time choosing their product result. It takes a significant amount of time for contemplation which leads to a delay in everyones order and process. The wait time is probably the only negative thing there is to say about Creamistry. It is discouraging when you happen to show up at a place, where the line is out the door. It is very disappointing when the line to order takes just as long to retrieve the item.

1.1.4. Goals of Project Our goal is to reduce customer wait time as much as possible. Creamistry loses plenty of customers throughout the day because people do not want to wait a majority of their time just to order than to wait another bulk amount of time to receive their product. The importance of this project is to work towards finding a more efficient way to be able to deliver the final project to the customer. And the goal of this project is to eliminate the delay from product to customer as soon as possible. Creamistry is working hard towards finding the most effective manner in providing the most delicious results there is. Ideally, we would like to bring down the average to a maximum of 10 minutes.

1.1.5. Key Process SIPOC

1.1.6. Customer Requirements (CTQs)

1.1.7. Cost of Poor Quality (COPQ) estimate

1.1.8. Stakeholder Analysis (Get in touch w/ Shaun. He can help you figure out what names to put)

1.1.9. Other related tools: Pareto, brainstorming, cross functional process mapping, affinity diagrams

Measure Phase: Measure Phase: Determines baseline and target performance of the process and defines input/output variables; validate the measurement systems. Measure deliverables are listed below:

1. Develop a baseline for improvement. This is done by collecting data that

indicates the what, when and where of the problem Because our initial problem was the length of customer wait time, we measured total wait time at daytime hours, night hours, and peak hours during the weekend. As expected, peak hours had much longer wait times due to customer traffic, but we discovered high variation within the production process that was unrelated to high demand. We timed the separate steps the employees performed: 1. 2. 3. 4. 5. 6. 7. 8. Taking orders Measuring the base Measuring the flavor Mixing Adding liquid nitrogen Scooping Adding toppings Serving

The variations in steps 1 and 7 are caused by customer indecision and require solutions that are beyond the process. Most of the time is spent on steps 2-6 and the variation is caused by incorrect measurements of the ingredients that are mixed together.

2.

Identify key input and output variables

The key inputs for the ice cream creation process are the ice cream base (premium, organic, or sorbet), various flavors, toppings, and liquid nitrogen. The ultimate output is liquid nitrogen ice cream.

3.

Create a robust description of the process and its workflow using a Value Stream Map or detailed flow chart allowing for waste analysis

1.1.4. Identify the primary and secondary metrics and target performance levels Our primary metric is a faster cycle time. Ideally, we would like to limit the total wait time to 25 minutes but more importantly we would like to minimize the variation in the process and reduce the amount of time it takes to produce the product. Our secondary metric would be improved customer satisfaction. Completed project charter 1.1.1 Typical tools: VSM (current state), X-Y Diagram, C-E Diagram, Pareto, MSA (gage R&R) and capability studies, FMEA, basic descriptive statistics and graphical tools such as box plots, histograms, trend charts, etc.

Determines baseline and target performance of the process and defines input/output variables; validate the measurement systems. Measure deliverables are listed below: 1.1.10. Develop a baseline for improvement. This is done by collecting data that indicates the what, when and where of the problem 1.1.11. Identify of key input and output variables 1.1.12. Create a robust description of the process and its workflow using a Value Stream Map or detailed flow chart allowing for waste analysis 1.1.13. An assessment of any measurement systems used to gather data for making decisions or to describe the performance of the process 1.1.14. Quantify current performance level (process sigma and capability where applicable) 1.1.15. Identify the primary and secondary metrics and target performance levels, such as: 1.1.15.1. 1.1.15.2. 1.1.15.3. 1.1.15.4. 1.1.15.5. Better: DPU, DPMO, RTY, Accuracy, etc. Faster: Cycle Time, Inventory turns Cheaper: COPQ Improved Customer Satisfaction Improved Regulatory Compliance

1.1.16. Completed project charter 1.1.17. Typical tools: VSM (current state), X-Y Diagram, C-E Diagram, Pareto, MSA (gage R&R) and capability studies, FMEA, basic descriptive statistics and graphical tools such as box plots, Control and run charts will be done tomorrow along with UCL,LCL,MCL implemented to test if process is fluent or if it needs improvement. Date is in next page

Dont forget to add measurement unit minutes near Chart title or data form title (Ting)

*= in minutes

Analyze Phase: The red mark is the things that we have to get it done 1) Analyze Phase: Use data to establish key process inputs that affect process outputs. a) Focused problem statement: the what, when, where, who and how of the problem (I will finish this part after I received Rick and Joses data, Edward) -What is the problem? Long wait time is the main problem we focused on in this project. The average wait time is about 40 mins during the peak hours. The biggest issue is when the employees make ice creams, it takes average about 20 minutes to make the ice cream during the peak hours. We found out the problem is because of lack of training. Part-time employees dont know what is the freezing time of every flavors. They are trying to figure out while making the ice cream. That is why it makes the process even slower and increase the wait time. As a result, customers complaint and are not satisfied with the wait time. -When? People tend to stop by in the evening especially on the weekend. The peak hours are from 7 to 9 p.m. People usually need to wait over 30 minutes during this period. However, it doesnt have

too many people during the weekday afternoon from 2-5 p.m. People can get their ice-cream within 10-15 mins depend on what customer order. -where? We found out that the making process is our problem. This part takes longest time to make, which it usually take about 20 minutes during the peak hours. -who? Employees are the companys biggest problem, especially part-time employees. It is because they lack training and experiences. Creamistry needs to schedule a training session to teach and train every employees so that they can better understand the process in order to reduce the wait time. -how?

b) Theory(s) on causes There are many reasons that cause wait time. As I just mentioned on the problem statement, one of the problems is lack of training. Creamistry opened a few months ago, so most of the employees are new and a lot of them are part-time employees. In addition, Creamistry offers 50 different flavors to customers and each flavors has its own freezing time. This makes it harder for new employees to control and handle the time. Lastly, each flavors has a variety of ingredients. Therefore, employees need to understand and know what exactly they need to put in order to go on to the next process. All of these causes increase the wait time. Thus, we need to solve all of the problems to reduce the wait time. c)Techniques used to identify root causes: Waste Analysis, is illustrated as a VSM or flow chart with bursts

Whys; note if combining with C-E diagrams be careful not to be redundant

From the cause and effect diagrams, the effect on Creamistry bases on four causes. First, employees are lacking of training and most of them are part time employees. These are the causes to make it inefficient. Since Chemistry is a new ice-cream shop, people are still training for better customer services and knowing the freezing point so that it could reduce the wait time. Second, equipments are other causes. Creamistry use very simple equipments. The main equipments are six blending machines and nitrogen tubes. However, the questions are is it enough during peak hours with more than 20-30 customers in line. The third one the ordering. The company offers 50 different flavors which make the process slower because customers need time to think what they want to order. Therefore, the ordering takes a lot of time so it increase the wait time. Last, space considers one of the causes. People are stuck in the cashier counter, and there are only two counters for people to order the ice-cream. When people stuck at the counters, it increases the wait time. C-E Diagrams; note if combining with 5 Whys be careful not to be redundant Scatter Plots

Hypothesis testing, ANOVA Benchmarking

By using benchmarking, we compare our processes with our top competitors in order to learn how well they perform and the business processes that explain why they are successful. We discovered that other liquid nitrogen ice cream shops provide fewer choices to customers. Also, they introduce new flavors every two weeks and remove old flavors from the menu. We did an observation and discovered that it works very well and it reduce wait time. Almost all the customers get their final products within 15 minutes. We could use this as our guide and the goal is to reduce wait time to satisfy our customers. 2)Analyze Deliverables: Report of root cause and/or waste analysis tools used ( -Freezing point List of key sources of waste or variation Identity of critical input variable to process employees Develop (via brainstorming, literature research or benchmarking) an exhaustive list of possible improvement ideas Training Improve Phase: (TING) 1.1.22. Improvemental Theory Employee Training According to our data, the production process causes the longest waiting time for customers. The high variation indicates a lack of consistency by employees that results from inadequate training. They dont really know how much nitrogen they should put into the machine and what flavors will take longer time to be freezed. They are learning by making customers ice cream, so this causes customers need to wait for a long time. Based on this reason, we decide to do employee training that can help employee know more about freezing points and make ice cream more expertly; and also can reduce customers waiting time. Ice Cream Advisor During the research, we noticed that ordering time is one of the reason why customer wait for a long time. It is because many customers dont know what to order and need to spend a extra time making their decision. Therefore, we suggest that Creamistry hire an Ice Cream Advisor, "The Creamist". He or she will be able to communicate with customers who wait in line, introduce the ordering process, and provide recommendations to new customer in order to reduce the ordering time. 1.1.23. Tests of theories (pilot studies) In order to test our theory, we had to implement the steps using the actual equipment in Creamistry. Fortunately, we have a member of our group who works for the company. Our group showed up at the location on a Wednesday morning (when business is slowest) and we convinced two employees to volunteer for our experiment. One employee followed the current procedure of making a small vanilla-flavored ice cream with a premium base and repeated this process seven times. With the other employee, we implemented our pre-measurement idea. The

second employee was able to produce the same product at a quicker rate. Although they managed to save only a few seconds, the time adds up during peak hours. Testing process of employee training 1. Pick one employee, called Employee A 2. Train him to better understand freezing point 3. Run tests for different flavors with pre-measured ingredients 4. Practicing to input nitrogen 5. Compare him to Employee B 6. Find out the result of testing

Testing process of Ice Cream Advisor 1. Pick one employee, Shaun, to become a Creamist 2. Provide information and recommendations to customers in line 3. Ask random customers filling out a feedback survey 1.1.24. Select best solution After doing tests of theories, we find out that employee training is the best solution for our project because 1.1.25. Improvement plan & implementation

Confirmations runs, hypothesis test Mean Time Standard Deviation 5.995 0.3284

Component Making period

Problem Objective: Does the time it takes the employees to make ice cream less or equal to 5.34 minutes during normal hours with n=14. H0: Mean making time: 1 < 5.34 H1: Mean making time: 1 > 5.34 1 = 5.995, s1 = 0.3248 n=14

t1 = (5.995 - 5.34) / ( 0.3284 / 14 ) = 0.665/0.0878=7.5740 df = 14 -1 = 13 an alpha = 0.05 t13, .05 = 1.771

Process maps

Corrective actions 1.1.26. Other related tools: PDSA, Lean Tools, ANOVA, Poka-Yoke, brainstorming, DOE, process modeling, NGT, PFMEA and VSM final state 1.1.27. Measures of results, compare to original process

Control Phase: When we embarked in this new project we had no idea what was causing such long delays at the new ice cream shop, Creamistry. Creamistry had a lot of work ahead to improve the process and keep its customers happy. After careful analysis and data gathering it became very clear to the team that the up to 1 hour wait to receive a customized ice cream was due to lack of training and a variation in freezing time in the multitude of ingredients being offered. The popular ice cream shop had only been in operations in the city of Irvine for a short time and the employees had not been properly trained. Customers were frequently perplexed with all the options they had and were often not prepared to order when they reached the front of the line. Frequently, the employees were playing a guessing game trying to figure out if their mixture was properly frozen or not. At times, the ice cream received was too soft or too hard because not enough or too much nitrogen had been applied. Training Plan: We have suggested to management that shift leaders be trained in the freezing process and the variation in ingredients. Shift leaders should thoroughly understand the process involved and be capable of teaching others the process. Training should take place during the first days of being hired and should be taken very seriously. It is also recommended that new hires receive formal training on the process and that they understand the variations in freezing points for the variety of ingredients. Your average person might not fully understand that different ingredients and toppings can greatly alter the freezing time of ice cream and helping new employees understand this can greatly improve the process. Employees who are already members of the Creamistry team and are not considered new should also be given formal training to implement the new process. Current employees should be thoroughly trained before any new employees so that they are also able to provide guidance to new employees once they arrive. Preparing the delicious treats at Creamistry is truly a science experiment where liquids and toppings are transformed into delicious ice cream desserts. Most people might think that it is easy to just put ingredients together and freeze them and you have a treat, but chemist and cooks know that there is an art to cooking that many do not understand. Helping employees understand the art of cooking will empower them to make authentically delicious treats in an acceptable time frame.

Different flavors and ingredients should be grouped in families to ease the process of remembering the freezing variation in each.

Documentation Plan: Training manuals Training manuals will be provided to employees during the formal new hire training. Manuals will be simple and easy to follow and will include a list of the freezing families that different ingredients are in. Most popular ice cream combinations will be included with instructions and freezing times. Responsibility for implementation Manager will be responsible for implementing the changing and training supervisors and employees. Responsibility for ongoing process Supervisors will be responsible for the ongoing process. They will be responsible for confirming that the employees understand the proper way to freeze the different ingredients and that they understand the process. Monitoring Plan: Simple Visual Controls Ice cream should be visually checked for texture consistency. The perfect ice cream is soft but not watery, and of course, nobody wants an ice cream that is hard as a rock. Employees and team leaders should be able to perform a simple visual test and know the consistency of the product. Check Lists

Check lists for Creamistry should be simple, easy to read, and not too time consuming.

If a shift leader or supervisor notices that employees do not understand the process in freezing, additional guidance should be provided. If the problems continue, employees should be be given a verbal warning. As this report has concluded inadequate training has caused severe wait times for customers and this is not good for business. Customers do not want to wait an hour for an ice cream dessert and the greatest variation in wait time is being caused due to lack of training in the part of management. It is critical to the business that employees understand how to most efficiently produce this delicious treat and the process should be taken very seriously. Creamistry should apply SHORT SUMMARY (Conclusion)
1.1.1. Improvement & Results: although the report will not be graded on the amount (magnitude) of money or time you save positive improvement is expected. That means a pilot study or simulation must be performed to estimate project performance. (5%)

APPENDIX