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OPERATIONS PROJECT : g roup six

OPERATIONS PROJECT : g roup six. Mainline Squeeze. PART ONE : STRATEGY. OUR MISSION IS…. “ to provide high quality, cold-pressed healthy juices to the mainline ”. THE JUICING CRAZE:. G lobal juices industry worth $84 BN (2010)

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OPERATIONS PROJECT : g roup six

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  1. OPERATIONS PROJECT: group six Mainline Squeeze

  2. PART ONE: STRATEGY

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

  4. THE JUICING CRAZE: • 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 20-30 looking for portable, and nutritious snacks or meal replacements • Benefits:Vegetable consumption, glowing skin, weight loss

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

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

  7. TARGET MARKET: • Women ages 18-35 • 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

  8. ORDER WINNERS & COMPETITIVE PRIORITIES:

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

  10. QUALITY STRATEGY: TQM

  11. 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: • Established Quality Control & Reputation • Constant Access to Seasonal & Exotic Fruits • Economies of Scale • Customer Support • 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: • Perpetual System will be difficult to implement without ruining the customer experience • Periodic checks can be paired with additional Input Inspections • APerpetual System will be unnecessary because we do not expect industry driven demand spikes

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

  17. INPUT DEMAND FORECASTING: survey weights survey weights density proxy recipes 526 Orders/ Week Input demand in lbs.

  18. FINAL DEMAND INPUTS:

  19. MENU: Cold Pressed Juices 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 12 oz. $5 16 oz. $6 20 oz. $7 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 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:

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