Recommendations

Recommendation 1: Reduce waste

1a. Train every employee the proper ways to make juices, smoothies and coffee beverages. Many employees at Bohemian Raspberry make drinks differently, which results in overproduction. The amount of leftover varies between employees, but the remainder of the drink is either consumed by employees or thrown out completely. Overproduction is the largest form of waste at Bohemian Raspberry. If employees are trained to put in the exact right amount of ingredients each time they make a drink, it will eliminate overproduction and significantly reduce waste costs.

1b. Adopt a pull system with toppings. Of the 50 toppings Bohemian Raspberry offers, eight of them are sliced fruit that is laid out at the start of every work day. This approach closely represents a push method; that is, fruit and candy toppings are exposed before customers demand them. The fruit that is cut and not eaten typically is thrown away because it rots. If Bohemian Raspberry adopts a pull system with the displayed toppings, this would guarantee that customers receive the freshest toppings for their frozen yogurt and there is no overproduction of displayed toppings.

Solution: 1a. Train every employee the proper way to make each drink. While adopting a pull system would ensure top-quality freshness in the fruit toppings, it would eventually lead to other forms of waste, such as waiting and motion. For example, if a customer wants fruit on their yogurt, employees would have to take the fruit out of the refrigerators; grab gloves, a knife, and a cutting board; cut the fruit; and place it on the customer’s yogurt. This could lead to melted yogurt on hot days and dissatisfied customers. In this sense, a push method for the fruit toppings is necessary. Moreover, overproduction waste primarily comes from inconsistent and incorrect production methods from employees. Ideally, if every employee is trained the same way, there will be less overproduction and waste from drinks.

Recommendation 2: Adjust workforce scheduling strategies.

2a. Adopt a level strategy. Bohemian Raspberry’s current scheduling method resembles a level strategy; that is, the store has a workforce of 20 members, there are no layoffs, and new employees are hired at the beginning of the planning period. Employees are assigned hours based on availability. Although the planning period is not fixed, it typically begins on the first day of spring each year. The part-time workers at Bohemian Raspberry do not have earned vacation days, yet many leave for college during the fall and spring. A level strategy would allow the owner to maintain a constant workforce and utilize employee overtime and undertime based on fluctuating periods of demand.

2b. Adopt a chase strategy. A chase strategy would allow Bohemian Raspberry to hire and lay off workers to match the predicted demand. Peak demand periods are the spring and summer months. In the fall and winter months, a 20-member workforce is not needed. Employees are underutilized, and payroll expenses do not match the value added by the workforce. If Bohemian Raspberry adopts a chase strategy, the owner can lay off workers during low-demand periods and hire new employees during the spring and summer.

Solution: 2b. Adopt a chase strategy. Bohemian Raspberry does not need a 20-member staff throughout an entire business year because demand for frozen yogurt is not constant. A one-time hiring process in a level strategy leads to underutilization of the workforce during low-demand periods. Furthermore, the store does not currently use overtime hours for its part-time workers, therefore eliminating the costs of overtime. A chase strategy allows the store hire necessary workers during peak-demand periods and lay off unneeded workers when demand is low, which will ultimately reduce payroll costs.