1 OPERATIONS PROJECT : group six Mainline Squeeze.

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Presentation transcript:

1 OPERATIONS PROJECT : group six Mainline Squeeze

PART ONE : STRATEGY

“ to provide high quality, cold- pressed healthy juices to the mainline ” OUR MISSION IS…

 Global juices industry worth $84 BN (2010)  The green juice market accounted for $3.4 billion of the $258 billion US market for nonalcoholic beverages (2012)  Individuals ages looking for portable, and nutritious snacks or meal replacements  Benefits: Vegetable consumption, glowing skin, weight loss THE JUICING CRAZE: 4

Competitors  Evolution Fresh (Starbucks)  Odwalla  Naked Juices  Raw Bar  Whole Foods  The New Leaf Café ENVIROMENTAL SCANNING: 5

 Customizable juicing experience  High end in store experience  Farm fresh fruits and vegetables  Friendly and knowledgeable employees  Never frozen  Made to order CORE COMPETENCIES: 6

 Women ages  Health conscious  Willing to pay for freshness, quality, and friendly service  Quick and convenient  Looking for a healthy snack or meal replacement  Cleansing or weight loss TARGET MARKET: 7

ORDER WINNERS & COMPETITIVE PRIORITIES: 8

9  Continuous Stock Maintenance  Efficient Ordering Process  Customer Involvement: High  Resource Flexibility: Moderate  Capital Intensity: Low for Brick & Mortar LEAN OPERATIONS:

10 QUALITY STRATEGY: TQM

PART TWO : IMPLEMENTATION

12 QUALITY CONTROL :  Input Control Systems: – Choice of Supplier – Input Inspections  Product/Service Control Systems: – Employee Training – Customer Surveys/Mystery Shopping – Variable Control Charts: x-bar and r charts

13 SUPPLIER DECISION PROCESS:  5 Reasons for a large one-stop-shop supplier: 1.Established Quality Control & Reputation 2.Constant Access to Seasonal & Exotic Fruits 3.Economies of Scale 4.Customer Support 5.Allows us to Focus on our Other Operations

14 SUPPLIER :  $44 BN in sales and 425k customers  A diverse selection of ingredients and ancillary supplies  Various auxiliary customer services

15 INVENTORY MANGEMENT SYSTEM :  Rationale for Periodic System: 1.Perpetual System will be difficult to implement without ruining the customer experience 2.Periodic checks can be paired with additional Input Inspections 3.A Perpetual System will be unnecessary because we do not expect industry driven demand spikes

16 DEMAND FORECASTING: New Leaf Café and Raw Bar Employee Estimates New Company Factor  Comparable Method; Lack True Comparables  Asked the question: “What do you expect a self- standing juice bar on the Mainline to pull in?”

17 INPUT DEMAND FORECASTING: STEP 1: Convert Order/Week to fluid ounces to account for different cup sizes Step 2: Convert Order/Week in Fluid Ounces to pounds Step 3: Forecast demand for each proprietary drink Step 4: Estimate each ingredient's breakdown as % Mass of Final Product for each proprietary drink 526 Orders/ Week Input demand in lbs. survey weights density proxyrecipes

18 FINAL DEMAND INPUTS:

19 MENU: 12 oz. $516 oz. $6 20 oz. $7 Cold Pressed Juices Cleanse cucumber, celery, kale, apple, lemon Detox kale, cucumber, beets, lemon Immune Boost kale, celery, carrots, lime Burn spinach, celery, beet, apple Jump Start apple, mango, carrot, spinach, lemon Hydration spinach, celery, cucumber, mango, lemon, lime Customize Your Juice Choose your favorite 4 ingredients from our selection of fresh fruits and vegetables including*: Apple, beet, carrot, celery, cucumber Kale, lemon, lime, mango, spinach *Each additional ingredient $1 Add: Agave nectar, cayenne pepper, cinnamon, or mint Aloe shot, E3 Live $3 Wheat Grass $3 Protein, Hemp, Whey $1

20 FIXED COSTS:

21 OPERATING COSTS:

22 QUESTIONS: