Question

Company: Dunkin Donuts

Please gather, interpret and analyze the current state of business operations to strategize methodology to achieve the three principles (eliminate waste, remove variability, and improve throughput) of lean. Please defend your answers on a tactical level by explaining how these recommendations (proposed methodology when applied conceptually) will balance cost and quality. Benefits? Disadvantages?

Answer 1

Dunkin Donuts is a leading QSR franchisor in US .Dunkin is a major brand and has wide network of Dunkin donuts which mainly serves coffee .Dunkins recently has shifted their business from food to beverages.Dunkin Donuts has strategized their business operations to achieve elimination of waste,removal of variability and to improve the output.

With the recent shift of Dunkins from coffee to beverage Dunkins mainly responded to their customers increasing consciousness and health.Dunkins by understanding that their customers mainly focuses on the quality ,cost timing Dunkins has trained their staffs to provide fast and convenient services to their customers.To eliminate waste Dunkin Donuts has decided to eliminate polystyrene cups by 2020.To eliminate the waste Dunkin Donuts mainly uses paper cups.Operating model of Dunkin Brands mainly focuses on franchisee training,supply chain management and marketing brand management and also provides the low cost quality services to their customers.The Dunkins transition towards beverages with increasing brewing content has increased the customer satisfaction ,revenue and profits.As the initial investments costs are generally paid by the franchisees ,Dunkin Donuts follows a capital light investment model which allows quick and flexible shift in the strategies adopted.

Overall Dunkins operating brand model was successful .Operating brand model of Dunkins allows efficient management of network of stores and ensures low cost ,quality and fast delivery of products .