Modeling and Simulation_Optimization Research
- 1. Starbucks Optimization Research ISE 421 Modeling & Simulation BRANJOELANNAH: Brian Doyle, Danielle Goldinsky, Daniel Happe, Hannah Marollo, Joel Schwartz BRANJOELANNAH 112/07/2016
- 2. Agenda • Introduction • Background • Current System • Methodology & Data Collection • Analysis • Original Model • Alternatives • Recommendation • Conclusion BRANJOELANNAH 212/07/2016
- 3. Introduction • Analyzed the Starbucks in the Marketplace • Time study performed over 4 day period • 6 hours total • Assume that days are 12 hours long • Main test statistics: • Utilization of servers • Throughput of customers BRANJOELANNAH 312/07/2016
- 4. Background • Starbucks is in a highly populated building (Marketplace in the Union) • Long lines at peak times • Roughly 10 minutes before a class begins • Two cash registers • First in, first out service • Various process flows: • Only food • Only drink • Both food and drink • Initial bottleneck is the time at register BRANJOELANNAH 412/07/2016
- 6. BRANJOELANNAH 612/07/2016 Current System (after customer orders)
- 7. Methodology • Metrics • Arrival time to queue • Time of payment at register • Time when customer receives product • Departure time • Why These Metrics? • Determine the bottlenecks in the system • Determine the distributions BRANJOELANNAH 712/07/2016
- 8. Data Collection • Stationed at a table near Starbucks • Followed each customer through the system to record timing • Determined three possible entities the customer could purchase: • Only food (5%) • Only drink (85%) • Both food and drink (10%) BRANJOELANNAH 812/07/2016
- 9. Analysis • Raw Data Breakdown • Histograms and bin sizes were developed • Minitab 17® Distribution Identification Tool • Inter-arrival time follows Weibull Distribution • Order time follows a Gamma Distribution • Service time follows a Normal distribution • Departure time follows a Weibull Distribution BRANJOELANNAH 912/07/2016
- 10. Original Simio Model • 4 Servers • 2 baristas • 2 cashiers • 2 registers • Line to register wraps around the ovular station • Utilization of servers = 98% • Throughput of customers = 696 BRANJOELANNAH 1012/07/2016
- 12. 3D Simulation of Original Model BRANJOELANNAH 1212/07/2016 **3D SIMULATION REMOVED TO REDUCE STORAGE SIZE OF SUBMISSION FOR TURNITIN**
- 14. Alternative 1 System Modification: Add one Barista Total Customers Processed 703 customers Average Input Buffer at Registers 67.5 customers Average Cashier Utilization 99% BRANJOELANNAH 1412/07/2016
- 15. Alternative 2 System Modification: Add one Register and one Cashier Total Customers Processed 720 customers Average Input Buffer at Registers 4.85 customers Average Cashier Utilization 89.66% Input Buffer at Drink Service Station 113 Average Barista Utilization 99% BRANJOELANNAH 1512/07/2016
- 16. Alternative 3 System Modification: Add one Barista, one Register, and one Cashier Total Customers Processed 835 customers Average Input Buffer at Registers 3.37 customers Average Cashier Utilization 85.46% Input Buffer at Drink Service Station 1.38 Average Barista Utilization 83.66% BRANJOELANNAH 1612/07/2016
- 17. Qualitative Analysis Alternative 1 Alternative 2 Alternative 3 • 1% increase in throughput of customers • Long wait time to place order • Short wait time to receive order • 3% increase in throughput of customers • Short wait time to place order • Long wait time to receive order • 20% increase in throughput of customers • Short wait time to place order • Short wait time to receive order BRANJOELANNAH 1712/07/2016
- 18. Quantitative Analysis • Cost of Hiring an Employee • Base Salary Cost • Training Costs • Benefits (e.g. medical, dental, etc.) • Retirement Plan • Cost of Structural Enhancements • Additional register space • Complete redesign • Total Estimated Cost • New Starbucks Employee to cost $45,000 BRANJOELANNAH 1812/07/2016
- 19. Recommendation • Alternative 3 • Increase both the baristas and check-out staff by one, each • Increase the number of registers by one • Yield: • Utilization of servers = 85% • Throughput of customers = 835 • 20% increase BRANJOELANNAH 1912/07/2016
- 21. 3D Simulation of 3rd Alternative BRANJOELANNAH 2112/07/2016 **3D SIMULATION REMOVED TO REDUCE STORAGE SIZE OF SUBMISSION FOR TURNITIN**
- 22. Conclusion • Analyzed the Starbucks in the Binghamton University Marketplace • Current model • 98% utilization of servers • Throughput of 696 customers in 12 hours • Suggested model • Increase number of baristas • Increase register/cashier • 85% utilization of servers • Throughput of 835 customers in 12 hours BRANJOELANNAH 2212/07/2016
- 23. Future Research • Consider relocating station to a larger, more accessible area • Update registers/software to increase speed of order taking • Designate a place for the line so that it doesn’t interfere with passersby • Increase number of Starbucks and place them in different areas of campus BRANJOELANNAH 2312/07/2016
- 24. References •"Governor Cuomo Signs $15 Minimum Wage Plan and 12 Week Paid Family Leave Policy into Law." New York State. Accessed December 05, 2016. https://www.governor.ny.gov/news/governor-cuomo- signs-15-minimum-wage-plan-and-12-week-paid-family-leave-policy-law. •Hadzima, Joseph G., Jr. "How Much Does An Employee Cost." How Much Does An Employee Cost. Accessed December 05, 2016. http://web.mit.edu/e-club/hadzima/how-much-does-an-employee- cost.html. •Hesse, Jason. "The True Cost Of Hiring An Employee? Much More Than Their Salary." Forbes. October 30, 2013. Accessed December 05, 2016. http://www.forbes.com/sites/jasonhesse/2014/10/30/here- is-the-true-cost-of-hiring-an-employee/2/. •Mueller, Annie. "The Cost Of Hiring A New Employee." Investopedia. July 25, 2011. Accessed December 05, 2016. http://www.investopedia.com/financial-edge/0711/the-cost-of-hiring-a-new- employee.aspx. BRANJOELANNAH 2412/07/2016
- 25. Thank you! Questions? 12/07/2016 BRANJOELANNAH 25
Editor's Notes
- #21: New cashier new barista Entities still follow same paths