Week 1: Introduction & Overview

Map the coffee-shop process

A process is the work that turns inputs into outputs. Classify each part of a customer-service process.

Where does each item belong?

Choose one category in every row.

Item	Input	Work	Output
Coffee beans and milk	Input: coffee beans and milk	Work: coffee beans and milk	Output: coffee beans and milk
Baristas and equipment	Input: baristas and equipment	Work: baristas and equipment	Output: baristas and equipment
Customer entering	Input: customer entering	Work: customer entering	Output: customer entering
Take order and prepare drink	Input: take order and prepare drink	Work: take order and prepare drink	Output: take order and prepare drink
Prepared coffee drink	Input: prepared coffee drink	Work: prepared coffee drink	Output: prepared coffee drink
Served customer	Input: served customer	Work: served customer	Output: served customer

The customer-service view

Inputs Customer, ingredients, people, equipment
Work Take the order and prepare the drink
Outputs Prepared drink and served customer

What this figure shows: a broad customer-service process runs from the entering customer and other resources to a prepared drink and a served customer. For a preparation-method decision, use a narrower process that begins with the ingredients and ends with the drink.

Compare productivity—not only output

Compare two one-hour candle-production cases using the same worker rate and machine.

Worker rate: 20 candles per worker-hour
Labor cost: $10 per worker-hour
Machine cost: $20 per hour

Labor productivity: output ÷ worker-hours
Multifactor productivity here: output ÷ (labor cost + machine cost)

Move from two workers to four

Predict what happens before seeing the calculations.

Hourly output

Labor productivity

Multifactor productivity

Explain one prediction: what changes in the numerator or denominator?

What changes—and what does not

Hourly output: 2 workers40 candles/hour; 4 workers80 candles/hour
Labor productivity: 2 workers20 candles/worker-hour; 4 workers20 candles/worker-hour
Multifactor productivity: 2 workers1 candle/dollar; 4 workers4/3 candles/dollar ≈ 1.33 candles/dollar

What this figure shows: doubling the workforce doubles hourly output and raises the specified multifactor productivity, while labor productivity remains 20 candles/worker-hour. Compare bars only within a row because the rows use different units and scales.

Show every calculation

Hourly output: 2 workers × 20 candles/worker-hour = 40 candles/hour4 workers × 20 candles/worker-hour = 80 candles/hour
Labor productivity: 40 candles/hour ÷ 2 worker-hours/hour = 20 candles/worker-hour80 candles/hour ÷ 4 worker-hours/hour = 20 candles/worker-hour
Multifactor productivity: 40 candles/hour ÷ (2 worker-hours/hour × $10/worker-hour + $20/hour) = 1 candle/dollar80 candles/hour ÷ (4 worker-hours/hour × $10/worker-hour + $20/hour) = 4/3 candles/dollar ≈ 1.33 candles/dollar

The multifactor measure includes labor and machine cost only.

Managerial limit: this comparison does not justify scheduling four workers. First check demand, machine capacity, quality, and any other relevant costs; then recalculate if the values change.

Judge performance from two angles

Effective means the stated objective is achieved. Efficient means resources are used economically.

Two questions, four possibilities

	Resources used economically	Resources not used economically
Objective achieved	Effective and efficient	This shopEffective but inefficient
Objective not achieved	Ineffective but efficient	Ineffective and inefficient

What this figure shows: the shop achieves its quality objective but uses a more costly resource than needed, so it is effective but inefficient.

Optional: audit a real operating change

Read how Starbucks changed the sequence of making a drink. Treat the company account as a source to examine, not as proof of the result.

What changed, what outcome is claimed, and what would you measure before accepting the claim?

Separate change, claim, evidence, and unknown

Change: Pull espresso before steaming milk, together with revised roles and digital support.
Claim: Save time without sacrificing quality; increase throughput and shorten waits.
Evidence: Descriptions of in-store trials and participant accounts, but no numerical baseline or comparison.
Still needed: A defined outcome measure, comparison, time period, and quality safeguard.

Apply it

Choose one process you used today. Write Input → Work → Output, then name the objective that matters.