Congratulations to Sanjeev Gupta and Henry Camp!
Co-winners of Eli’s Riddle Number 8!
You have both won your choice of $250.00 off of registration costs for the 2015 TOCICO International Conference in South Africa or, $100.00 off of the registration costs for the 2016 TOCICO International Conference.
The two winning submissions are below the Riddle and Eli’s analysis.
The rest of the submitted answers follow thereafter.
Does Rebecca need TOC for her ‘Double Pleasure’ chain?
A riddle by Eli Schragenheim
Interviewing Rebecca proved itself to be a special treat. She is a special figure in New York and her innovative business moves get a lot of publicity and attention. I used my credentials as a known columnist in The Management Magazine to get the interview. Several years ago I was exposed to TOC and since then I use the knowledge to guide me in my interviews. Rebecca’s case looks to me to be a difficult case from the TOC point of view as it seems there is nothing in TOC that could enhance her business.
So, here is a question for you: Do you see how TOC can improve a business like "Double Pleasure”?
Here are the series of Q&A between Rebecca and me (Eli).
E: You started from a bakery and within three years grew to five bakeries in New York. Then you started your coffee house chain called ‘Double Pleasure’. What made you go into the coffee house business?
R: Is this the way you look at Double Pleasure? Is it just a coffee house? While we definitely serve coffee this is the least important item. People come to us for our wide selection of specialty bakery items, and have the choice of buy and go, buy and sit down for a while or sit down for as long as you wish. The latter seating is quite different than the casual one; it is quiet and private and operates with full service, which is also more expensive. I have observed that the same customer sometimes has no time to spare, but still purchases an amazing muffin and coffee to go, and at another times sits down in our private seating area with a friend for several hours. So, we have the appropriate space and service for all needs. And, our bakeries are the common element and the key for our success.
E: You have come up with a very interesting concept: a dedicated exquisite space for seating, another space of free seating in the style of Starbucks and, of course, the whole display of your bakery items, which is quite big. The problem is that competitors imitate your style quite easily.
R: Imitation is just an imitation. Customers are aware of it. It does have a slight impact on our business, but our customers know where they get the real value. We are the only chain that sells its own bakery products, none of the "competitors” have their own bakeries that are served throughout the whole chain.
E: It is hard not to notice that your sales, and certainly your profit, are going down in the last four years. Aren’t you worried about it?
R: Not really, I think this is expected and sales in New York (NY) are going to stabilize this year. Our growth has been very dramatic and there are people who do not fully realize our special value – so, they go to the competition and we get the higher level of customers who know and appreciate the real value. We run now 34 branches here in NY City. I would like to add another four, whom I think will be very profitable.
E: Can you put your finger on what limits Double Pleasure from doing better?
R: I don’t think we are limited by anything. We are popular and we deliver according to fantastic customer satisfaction. We are going to open three branches in Chicago in two months. I’m negotiating on buying a large bakery in Chicago, until then we’ll fly the products from our NY bakeries twice a day to provide our NY taste to Chicago. Isn’t it nice?
E: You must be limited by something! I notice that the queues at the cashiers are sometimes very long. Sometimes all the tables at the full-service sections are taken.
R: These are good signs, aren’t they?
E: Do you have any serious undesired effects that you would like to solve?
R: Of course, the most serious one is the difficulty in finding truly good employees with the right approach to service. The heavy traffic sometimes complicates the timely arrivals of our vehicles with the fresh products. But, why are you are so interested in the negative aspects? See how happy our customers are?
E: I hear the number of customer complaints has been growing in the last two years.
R: We still have a very low number of complaints relative to other businesses I know. I spend a lot of time going over the complaints and find out the reasons. Can you really do more?
So, what can TOC contribute to Rebecca?
Analysis by Eli Schragenheim
Does Rebecca need TOC for her ‘Double Pleasure’ chain?
The reason I wrote this riddle is to highlight the criticality of analyzing the current strategy and ask the question whether it is still effective.
In the past TOC looked mainly to the low hanging fruits, meaning not challenging the current flow of value provided by the organization, but to focus on improving the flow itself. The term “constraint” and the five focusing steps were essential for fast improvements. Then the TP was developed and the notion of the “core problem”, which led to the flawed assumption that blocks progress. Most of the time the core problem (based on our own UDEs) points to a flaw in the way value is delivered. As the classic CRT analysis did not consider the UDEs of the potential clients, and did not consider our own special capabilities, the possibility of vastly improving the value to the clients was not identified.
Goldratt changed it when he created the concepts of Viable Vision and decisive-competitive-edge (DCE). He also spoke about a plus-plus-change versus a minus-minus-change.
The decline of the market demand should have led Rebecca to review the status of her own strategy and the effectiveness of her DCE in the market.
Sanjeev Gupta, one of the great exponents of TOC, touches exactly on the main point:
“The real issue, I suspect, is that Rebecca’s organization does not have a clear mental model for their business. The columnist thinks it is a coffee house. Rebecca thinks it is a bakery with options to “sit and eat” or takeaway.”
I do understand Rebecca wishing to complement her DCE, great bakeries, with coffee and various seating options. The question is whether this is the most effective way to capitalize on the DCE? For instance, she could easily expand the business by selling her bakeries in specialty kiosks and even in supermarkets (with special stands).
Instead, Rebecca was looking for another DCE, which is quite different than the first. Her idea was coffee houses with three types of service to fit several different market segments.
The appeal of most DCEs goes down with time mainly because competitors find a way to answer the specific need. The advantage of providing different levels of service in the same place can be imitated and even the superior taste of bakeries can be challenged. So, what is left is the impact of the combined DCE - great bakeries plus three types of service. Certainly there are clients for whom the combination answers a need. What is left is to assess whether those clients constitute big enough market, taking into account that some clients would enter just because the coffee house is close.
When the attraction of a DCE starts to fade, market demand goes down, but usually not very fast, unless a competitor with a powerful DCE for the same market segment pops up. This is a situation where many businesses find themselves in: profitability is not what it used to be but the business is still alive or just “somewhat alive”.
What should be the strategy of Rebecca be at the point in time where the impact of the combined DCE is going down? Should she come up with a new DCE? Should she simply expand to Chicago and other cities and if so should she still use the combination of both DCEs? Should Rebecca continue with her double DCE, or concentrate on one?
I don’t want to go into answering questions I don’t have enough intuition to do justice for them. If Rebecca would like to get a TOC advice it’d be to take those questions seriously and actively look for good answers.
The overall service level in Rebecca’s chain of coffee houses can be improved, but I claim that it is not obvious that this should be Rebecca’s focus - unless Rebecca bases her next DCE on very quick and high quality service also ensuring enough space at all times, which is the strategy suggested by Henry Camp. Most other answers to improve the service did not target to treat it as the main new value to potential customers but more as a minus-minus kind of improvement. Fixing the flaws in the current service, without re-thinking the overall strategy, could be done by the branch managers. Rebecca should be focused on building the S&T for the next 3-5 years.
Both Sanjeev Gupta and Henry Camp have focused on the strategy part with strong views, quite different from each other, on what Rebecca should do. Both are known in TOC for quite long and both are active executives, a fact I find especially relevant and interesting. Coming up with a strong and well-planned strategy could make a true leap forward. Both get my vote.
Sanjeev Gupta Co-Winner
It is immaterial whether TOC solutions apply to Rebecca’s business or not (even though I am sure that variants of DBR and Replenishment would be useful in her business). The real issue, I suspect, is that Rebecca’s organization does not have a clear mental model for their business. The columnist thinks it is a coffee house. Rebecca thinks it is a bakery with options to “sit and eat” or takeaway. At the same time, if it’s a bakery, why is she investing in coffee houses and why is it called Double Pleasure? It might be that her customers and marketeers are not clear either.
If it’s a bakery, I would focus on building up the bakery sales, treat coffee houses as just one of the (many) retail channels, and build up other retail channels that are not owned by the company. The primary use of coffee houses would be as a marketing tool (to create brand awareness and affinity); and a secondary use could be as a “regional distribution center”. Everything else would be pretty standard (focus on high density areas; create an effective replenishment and sourcing system; dominate New York before branching out to Chicago; and then maybe go national as a CPG rather than just staying as a freshly baked item.
P.S. Use TOC techniques like its logistical solutions and throughput accounting if you like, or use alternative solutions if that is what you prefer. More important is to come up with the right two or three metrics. At a strategic level, it would be total sales growth and sales per bakery - operational metrics would change over time.
Henry Camp Co-Winner
From what you've provided, I see an analogous business model to RRR but rather than focusing on speed, the decisive competitive edge is personal satisfaction for the customers.
Her differentiator is the high-experience high-price lounge, in which people find value seeking future personal benefits. People like to be coddled when they plan and think ahead.
There is plenty of competition for a fast cup of coffee. There are plenty of tasty things to eat at Starbucks, Caribou Coffee, Seattle's Best, etc. Even if Rebecca's baked goods are well known to be the best, those fast-moving New Yorkers and Chicagolanders, will snatch and dash from the shop in their path rather than detouring to hers as a destination.
But, the blend of coffee shop and private club is something different. Most New Yorkers and Chicagolanders do not but aspire to belong to an exclusive enclave. She offers one for between one or two orders of magnitude less. This is a significant market. This is her version of Rapid, where the price is unimportant. The customers are what is important to themselves. I think they will invest in themselves to a great degree.
What stands in their way? Anytime they are not allowed to feel special.
- Waiting in a line to pay
- Not finding room in the slow-paced lounge
- Slow service
- Expand the lounges
- Simplify payment, ordering and feedback (a Double Pleasure app?)
- Add staff to provide top service, even if it means paying a little more
- Create a top notch training program for staff
- Raise lounge prices, if necessary to produce enough T
- Religiously, look for trouble and signs of constraints in customer feedback
- Religiously, measure the amount of time and when each day the higher priced lounge is full in each store
- Use the snatch and dash trade to provide T to cover OE and advertise the private lounge
- Put Chicago and new stores on hold until NY same store T is increasing
- Prove enhanced lounge concept on a small scale and then, convert old stores to the new model
Where to start? Double Pleasure (DP), doesn't recognize how much skill they have and, most importantly, how much luck they are relying on. Rebecca sounds like she is a natural and brilliant, but now she needs to understand where her natural skills / intuition worked, why they worked, where / why they didn't, and how to replicate. Otherwise, she is probably going into the ultimate firefighter cloud. Frankly, she needs a method ... a philosophy ... to create a mechanism to run this business, instead of relying on luck and intuition. Make a system.
First, she has done a great job trimming NBR's for a potential set of customers. The problem, is 1 - she doesn't have a method to repeat this process, 2 - doesn't know the lever points of her customer. Here we show her how to build an S&T based on a core conflict of her target constituencies. BTW: it is possible that she can design different solutions for different constituencies (i.e. could the cloud for urban stores be a bit different from suburban? could the cloud of sores in the business district be different from the regular urban stores? Could the cloud be different in the AM (fast healthy breakfast) versus in the PM (prepared meals to go or a place of quiet solitude ). The structure of the S&T logic could really help her open up growth.
Second, let's look internally. She has a Pareto sequence of operational limiters. Assuming that the market constraint(s) is addressed above, she really needs to clean up her act in the stores. She doesn't understand that long queues may be jeopardizing the AM cloud. We can show her the way. The complaint box could be easily used to show a CRT of the stores (maybe leading to the cloud for #1). Including in this would be to help her understand how managed buffers can reduce variation. As an example, once she understands that the timing of the vegetable delivery impacts her market offer and introduces variation into her operational delivery system, we would help her understand how to build a mechanism that reduces the impact of that variation. Who knows if she does not understand big batches and is causing the delivery problem by placing regular, big orders based on forecast and does not have a pull system based on consumption? My goodness could we help there.
Third, an entity in the S&T should address the "right employees" but most importantly should create a system that good employees can operate in with the result of performing as the "right" employee. Put the burden on the designed operational system, not on picking perfect employees. In addition, the TP is wonderfully designed to address employee issues from a "managing human relations" perspective.
Fourth, she wants to grow, let's assume she knows nothing about TIOE and CCPM. She needs to ensure that every store selected will have a positive T and uses CCPM to get the stores running incredibly quickly, faster than competitors.
Frankly, she can use each application of TOC, plus an overall understanding of the TOC systemic concept, causality, and building a mechanism.
Rebecca is negotiating to buy a large bakery in Chicago, despite the fact that she has sufficient capacity to serve her current retail demand in both NY and Chicago with her NY bakeries, albeit with some extra air freight costs to get her baked goods to Chicago. She is about to invest in elevating baked goods production when it is not needed – presumably her rationale is to reduce shipping costs. TOC would question the assumption that her best return on limited capital would be gained by adding production capacity when she is not production constrained. She will have even more excess production capacity by having bakeries in both regions and sales will not increase as a result of adding this capacity. She should check very carefully whether airfreight costs would exceed the investment and ongoing costs of maintaining a second production facility. She may also be giving up a unique selling proposition of selling fresh baked goods directly from New York twice a day. There is a history of NY pizza not tasting the same without NY water – her baked goods might not be replicable in Chicago. These risks should be weighed before expansion, particularly as she does not seem to have a good handle on the causes of her dropping sales and profitability.
Her undesirable effects seem to relate to the unintended consequences of success – customers don’t like long lines. Employee problems could be a function of dealing with impatient customers. The “right approach to service” is not having your customers wait in long lines. It is not the fault of employees that process improvement has not been done at point of sale -- a bottleneck in taking peoples’ money should not be allowed to exist. Saying it is a good thing that there are lines is to ignore the potentially lost revenue from those who don’t have the time or patience to wait – reminiscent of TOC experience with the blind spots in retail where discounts on low runners and being sold out on high runners is wrongly perceived as positive.
TOC would help her focus on the low hanging fruit of increasing the rate of taking peoples’ money at the cash register, thereby reducing customer dissatisfaction. She is already using price differentials for the full service and take-out options – she could innovate this further to charge more at peak times, or charge by the amount of sitting time to get the most throughput for her limited seating space. She could run A/B tests at various stores to test her assumptions on pricing with respect to revenues, supply and demand, and customer satisfaction. As she makes these improvements, TOC principles would also have her keep an eye on the market constraint to make sure it does not break and move to production. With a capacity monitoring process she could invest in new stores up until she must divert revenues to increasing production capacity, keeping in mind that capacity takes time to build.
J C Kalra
The goal of Rebecca is "greater and greater happiness of the customers". Customer’s complaints, though limited in number, are still complaints and an indication that some customers are unhappy - something against the goal of Rebecca. She is spending a lot of time in analyzing these complaints. It is however, not clear what action is required.
It seems from the answer to the previous question that one constraint she is finding is "truly good employees with the right approach to service". May be a conflict diagram (evaporating cloud) can be applied to come to a solution.
If the profit margin of the long-term seating is higher, that "inventory" seems to be the constraint. Competing with Starbuck's in casual coffee seems to be a "tie" at best - if Rebecca wants to grow, she should work on emphasizing her unique value in the market, which is the relaxed atmosphere. I would suggest she shrink her casual seating, optimizing the purchasing of coffee and muffins "to go," and go all-in on the quiet, private conversation enabling seating. That will emphasize her unique value proposition. Delivery of fresh baking can be optimized (but it is a non-constraint for now) and staff recruitment and training is always a requirement in food services. But Rebecca should elevate the constraint, which is long-term seating.
First on Rebecca to realize that each business constraints creeps and swells while you think you run a business profitable and prosperous.
Secondly, it should be aware that competitors in a state of constant work to compete and gain more market gains. Optimism and confidence of success does not help much here. She should be aware that the main objective and goal here is the profitability.
Third, it has to work hard to detect the main constraint to her commercial work, rather than not to mention some of them interesting without interest such as saying that the traffic sometimes cause a delay in the arrival of fresh baked goods for the stores or to the lack of quality trained staff for the excellent service. TOC replenishment time is useful here.
Fourthly, the long queues and crowded tables is not a good sign in any case, what if Rebecca has worked to reduce the waiting time? Are customers who prefer to sit and have a coffee and baked goods in shop compare to external requests are more?
The process of ongoing improvement is of general use and to continuously identify issues and make improvements. For the specific problems stated above: Current reality tree maybe used to identify root cause of complains, Using complains as UDEs DBR could be used to manage variability in transportation processes and preventing delays due to traffic. Prerequisite tree as implementation plan for opening of the new branches
I think Double Pleasure has done a great job building a competitive edge and capitalizing on it. However, success is risky because you still need to sustain these two elements, as defined in the S&T templates.
The rise in customer complaints, the long queues, the full occupation of the tables at the full service section, and clients going to the competition are signals that protective capacity has run out, and they are giving way to competitors to steal some business.
This is where TOC can help by establishing mechanisms and procedures to identify when capacity must be increased or demand has to be dealt with in order to avoid market dissatisfaction. Rebecca is clearly ignoring the fact that they are not delivering full value to customers. Rebecca says that there are customers that are in a hurry and just want to buy and go, and others want to stay longer, so they have the appropriate space and service for all needs. This is not true and TOC could help her to really deliver value. Finding good employees and ensuring timely arrivals pales in comparison to ensuring appropriate space and service to clients.
In conclusion TOC can help Double Pleasure to avoid the common pitfalls of being very successful and not being prepared for it.
I suspect the constraint is between her ears as well as her market
The goods Rebecca sells are perishable, she could benefit from yet even higher inventory turns (while simultaneously improving the taste/quality of the bakery items). Why do the bakery items have to come from New York anyways, or even the same bakery in New York? Isn't there a bakery that would be available to bake the shops goods for a price, on demand at the same quality level? This could reduce the lead time, too. Deliveries of two or three times a day would reduce the chances of outages/shortages and maybe mitigate the difficult arrival of raw material to her shop without the bother of holding excessive, perishable inventory. Rebecca should forget about trying to accurately forecast at the shop level and focus on reducing her dependency on such a forecast.
Rebecca has "started" to assess the reasons why her customers come to her in the first place. She realized that some of them may come in socially while others may be traveling all day for work and used the shop as an ad hoc office in a pinch. She could continue to segment her customers and provide them with what the wider groups of people might want. She could provide day-care for children, some grocery stores do it!
If she would like mores sales she could extend the hours of operation of her shop, if they are not already 24 hours a day. If she could promise guaranteed seating to her customers and little or no wait time during peak hours. This would be very difficult to do but worth a premium and most likely increase the number of people that would go out for lunch in the first place.
Most important, if Rebecca were to eliminate stocks-outs and come to the realization of how much it costs her to not have popular items available and fresh she could increase sales dramatically. Sometimes the "space" in her shop is stocked- out as well since the full service sections are taken. Maybe a section of the shop could be quickly modified to expand the full service section when it nears its capacity. Also, if the cashier’s utilization starts to approach 90% the queue will grow quite quickly. If the average wait time for the shop goes down(through all hours of operation) customers will realized it and count on it being that way, to a customer...in their internal rationalization process, it could improve sales.
If Rebecca want to improve the morale and performance of her employees she could start by simply telling her management not to look upon them as "not wanting to work in the first place" and go to great lengths to get them to their full potential. The humanistic approach of treating humans as having something significant to offer is unusual in a coffee shop. Other than just fulfilling a portfolio of laborious tasks from now until infinity is DE-motivating. Everyone wants to grow! Rebecca should lay-off shoving the newest deals of the week down the throats of the customer and avoid having the employee hassle bother. A gentle suggestion is all the employees need to do. Rebecca could become very aware of how she measures the effectiveness of her employees, useless indicators which have low correlation to individual effort will further reduce an employees' morale.
The customers' complaints should be taken seriously, they are indeed trying to tell Rebecca something. If she loses a customer, it is unknown if the shop can get them to come back. Different complaints can be symptoms of a generic condition and understanding the gap between what the customer expected and what service level the shop provided will take actual work. Why else could the imitators easily take some of her business?
This exercise was fun for me and I hope I have not wasted the time of the person reading this response!!! :) Please feel free to criticize me too.
PROBLEM: decreasing sales
CRT: Boosted branches lead difficulties in cashier queues, availability of fresh goods, and availability of exquisite space. In addition to these competitors are imitating the concept. Hence customers are upset and have an option means sales are decreasing.
ROOT CAUSE: Fast growing of branches
In order to increase sales we need to reach more customers -> increase no of branches
In order to increase sales we need to improve service -> decrease no of branches
CONSTRAINT : service capacity
Increase prices for exquisite seating (better utilization of constraint, increase T).
Increase no of cashier machines and staff them according to peak hours (exploiting the constraint, increase T).
Increase daily frequency of replenishment to branches as per availability (exploiting the constraint, increase T).
Stop launching any more branches (for the sake of stability).
Review customer complaints, after noticing a decrease in complaints first fully staff the branch and launch one at a time (growth)
SUMMARY : Stop today to grow tomorrow.
Staff is the bottle neck due to the full service area catering to such a wide selection of products and customer scenarios, impacting the queues for cashier and tables. I think TOC would ensure a more succinct offering of products to each customer scenario which would free up some cycles for staff reducing internal frustration and customer complaints. It would also simplify the supply chain requirements and dependency on deliveries.
The use of cause and effect to understand and connect the complaints could very helpful to bring some light on the weakness of thinking that having their own bakeries is a decisive competitive advantage. Especially if they can collect the complaints from what she called not so good employees.
There are 2 View Points of TOC:
VP1) The space limitation of Shop,
VP2) Supply of bakery to Chicago from NY City.
TOC Solution for VP1: Simulation of Total Throughput of a shop limited by its space.
1)Investigate and define each Throughput of 3 types of customers; T1(buy and go), T2(sit down for a while), T3(sit down for long time)
2)Divide the shop space into 3 areas; A1(display and cashier), A2(free seating), A3(dedicated exquisite seating).
3) Adjust A1, A2 and A3 and see T=T1+T2+T3.
4) Find out the best allocation of each area which maximizes the T.
TOC Solution for VP2: Put off buying (or opening) a Chicago Bakery until enough more branches in Chicago are ready to open.
The current three Chicago branches are supplied by NY City in the following way:
1)All items are supplied in half-finished goods. They are finished at each shop.
2) Transport twice a day just the quantity sold in the morning/afternoon. ___________________________________________________________________________________________
Do you see how TOC can improve a business like "Double Pleasure”?
TOC focuses on throughput. Here the first assumption is that TOC can help any system/organization to improve its throughput. It means it can improve the business both its revenue and profitability. TOC focuses on removing the constraints that limit an organization’s performance from achieving its full potential. Toc focuses on putting an organization in an ever improving path.
• The bakery items of Double Pleasure are unique, fresh and testy. It has advantage over its competitors in these aspects.
• One of the strategies of opening Double Pleasure Coffee Chain is to increase the no of customers and sell more bakery items.
• Sales are going down? When they are expanding into many outlets and they have increase in no of customers in over all the ASSUMPTION is that the sales/outlet for some outlets are decreasing
• Profitability is decreasing? Not sure of the cost/OE components
Category of customers
• have the choice of buy and go (quick order and quick supply)
• buy and sit down for a while
• buy and sit down for as long as they wish
What they have achieved:
• business moves has got a lot of publicity and attention
• Expanded from a bakery to 35 outlets of Double pleasure coffee chains selling bakery items
• Another 4 outlets are in pipeline to be opened
• Planned to open three branch/outlets in Chicago
• queues at the cashiers are sometimes very long
• though the customers appreciate the bakery items BUT number of customer complaints has been growing in the last two years
• difficulty in finding truly good employees with the right approach to service
• The heavy traffic sometimes complicates the timely arrivals of our vehicles with the fresh products
• Sometimes all the tables at the full-service sections are taken
So, what can TOC contribute to Rebecca?
Analysis and Solution:
When a company competes based on the product quality advantage and expands very fast one of the problem that come up is service quality that include response time, employee attitude/service towards customers, increase in waiting time, continuous availability of fresh items etc. The other problem is increase in operational expenses at a faster rate than the sales growth.
The question is how TOC can help Double Pleasure?
Using TOC we can take a holistic approach and design solution with an objective of fixing the root problem that would solve/ fix the UDEs/symptoms. Also Focus on that with the existing infrastructure/Resources, how to increase the sales i.e. sales revenue/customer, unfold the hidden capacity to handle more customers and utilize the capacity to generate more revenue.
The solution components for increase in service quality
• Improve in response time in service to the customers that reduces the waiting time and improve turnaround time of customer
• Using TOC solutions introduce quick service counters for buy and go customers
• Learning and Development to improve the employee attitude and quality of service
• Increase in frequency of supply and availability of fresh bakery items as per the consumption/demands in the respective outlets to increase the sales revenue among buy and sit down for a while and buy and sit down for as long as they wish customers
• Analyze the customer complaints and find out the root problem as a continuous process
• Standardize the service quality through policy, process, procedures and SLAs and roll out in each outlet and continuously improve on the service quality
Double Pleasure's differentiation is the fresh baked goods so: With only 3 branches in Chicago do not spend the capital on a large bakery in Chicago. Instead bust the global constraint by investing in several strategically located satellite bakeries in New York and continue air shipping to the three new Chicago branches. This will alleviate the negative effect of waiting on baked goods at the locations. Next elevate the internal constraint which is the long lines. Simply have an order taker walk the line and write orders down on paper to be handed in at the register and or have kits devised (a number 3 equals such and such) to increase throughput. Last make the "quite big" display case smaller by only showing new or daily special products. This would give more room for seating. TOC to the rescue..!
Jose Carlos Valdez Nunez
Rebecca has some constraints. Time and team to operate her chain. With more sites will be more difficult to control and maintain the standard of the service offered. After the constraints are identified TOC will help her in how to explore the time she has and the way that she could accelerate the setup for the team she needs for her operation. One method could be the franchising concept for example.