KALDI 4 - MULA A Kaizen Paper presented to the Faculty of College of Business and Accountancy Marketing Management National University In Partial Fulfillment of the Final Requirements for the course Operations Management and Total Quality Management Presented by: CABUNIAG, ANDREA F. DORINGO, JULIAN D. LLAMAS, JANNA LEE O. ZAFRA, MARY CLAIRE Presented to: MR. DAN JEWARD C. RUBIS, MBA Term 1 Academic Year 2023-2024 AN IMPROVEMENT PLAN PAPER FOR KALDI TABLE OF CONTENTS I. Introduction 1 a. History of KALDI b. The Impact of Impact of Inventories on Business Operations 7-8 II. Statement of Purpose III. Improvement Scope 10 - 11 IV. Plans of Action 12 - 17 V. Desired Outcomes 17 VI. Plan Viability 18 VII. Benefits VIII. Necessary Resources 21 IX. Conclusion 22 X. Preparations Made 23 - 29 XI. Works Cited/ Consulted 30 - 31 XII. Annex a. Evaluation Form for Unavailability of Products 9 19-20 32 AN IMPROVEMENT PLAN PAPER FOR KALDI I. INTRODUCTION KALDI Coffee and Pastries was started in February 2023. It is in front of the National University-Manila. This coffee shop was founded by 5 partners: Mark Versoza, Julian Ariz, Frenz Mendoza, Sharon Dolor, and EA Vetron. Based on one of the owners, Kaldi originated from a legendary Arab Ethiopian named Kaldi or Khalid who discovered the coffee plant. Kaldi offers different varieties of coffee, non-coffee, teas, pastries, and kinds of pasta. They also offer services like a movie room or conference room. But before they came up with selling coffee products, they started with milk teas in Bazaars, schools, and malls before they decided to have a physical store. Figure 1: KALDI Business Logo CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 1 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI EVALUATING THE ATMOSPHERE AND HYGIENE OF KALDI Figure 2: Cleanliness and Ambiance of KALDI Figure 2 shows the results from the survey about the ambiance and cleanliness of KALDI. 20% of respondents answered neutral, 40% rated KALDI 4 for its cleanliness and ambiance, and another 40% of the respondents answered 5 for its cleanliness and ambiance. CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 2 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI EVALUATING THE STAFF’S FRIENDLINESS, SERVICE QUALITY, SEATING AVAILABILITY, AND COMFORT Figure 3: Service and Comfort Assessment Figure 3 shows the ratings of respondents for the staff’s friendliness, service quality, seating availability, and comfort in KALDI. 3.3% of the respondents, rate KALDI 2 as the second lowest to the choices, 6.7% rate them 3 as neutral, 36.7% rate them 4, and the highest rating which is 5 gained 53.3% of the respondents. CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 3 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI CUSTOMERS WHO ENCOUNTERED A SITUATION WHERE THEIR DESIRED ORDER (COFFEE, PASTA, PASTRY) WAS NOT AVAILABLE AT KALDI As the café became known for its cozy and friendly place, and the sudden change in the number of customers they’ve been encountering after the school year started the frequency of the purchases changed and grew bigger. With this surge in customers, the supplies for some ingredients found themselves in a bit of a predicament. The demand shot up, and the supplies for some ingredients couldn't always keep up. There were days when they had temporarily out of some of their best-seller drinks due to the delay in deliveries. Figure 4: Customer Experience with Unavailable Products CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 4 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI Figure 4 shows the result of the gathered data conducted by the team, which shows the unavailability of some of the products that the respondents ordered in KALDI. 56.7% said they encountered a situation where their desired order (coffee, pasta, pastry) was unavailable at Kaldi and 43.3% said they did not experience it. The purpose of collecting this data is for the 4-mula to know the reasons behind the unavailability of customers desired food in KALDI. Before conducting the survey, the team ensured that the respondents on the survey were used to going to KALDI and had an experience ordering in KALDI. Based also on one of the owners of KALDI, they have an issue regarding their inventory. Based on the results of from gathered data in the survey, KALDI has a problem with its inventory, and it was also stated by one of their owners during an interview with the team that they have an issue regarding this problem. CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 5 0F 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI RESPONDENTS ANSWERS ON WHAT IS THEIR DESIRED ORDER IN KALDI THAT IS UNAVAILABLE Figure 5: Basis of the problem Figure 5 sets the basis of the problem. The team asked the respondents what is their desired order that was not available in KALDI. 36.7% of the respondents answered coffee/non-coffee, and 23.3% answered pastries. As an overall result, 60% of the respondents encountered a situation where their desired order (coffee, pasta, pastry) was not available at Kaldi, and the remaining 40% answered that they did not encounter a situation where their desired order (coffee, pasta, pastry) was not available at Kaldi. CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 6 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI Effective supply chain management is crucial in international operations, where complex networks of suppliers, distribution centers, and transportation modes span borders. The management of inventories becomes pivotal in ensuring the seamless flow of goods across these international boundaries and meeting the diverse demands of custom ers. Cultural and seasonal differences further add to the intricacies of international business. Enterprises operating globally often find themselves adapting their inventory strategies to accommodate variations in product demand driven by different cultures and climates. This may involve stocking seasonal or culturally relevant items to remain competitive. Additionally, global sourcing strategies, a common practice to reduce costs, necessitate efficient inventory management to maintain a steady supply of raw materials and components while preventing the burden of excessive holding costs. In essence, international inventory management is a multifaceted challenge that requires a delicate balance between supply chain optimization and cultural adaptation. (Atna fu & Balda, 2018) Team, C. C. (2022) shared that for every company that sells physical items, inventory is one of the crucial factors that can have a big influence on its financial status and entire business case. By keeping a suitable inventory, a firm may meet its commitments and justify the expectations of its customers. On the other hand, a low inventory level prevents it from producing its items in a timely manner, which eventually causes the fulfillment of orders to be delayed. Keeping more inventory on hand, however, slows down cash flow and exposes the business to losses from theft, damage, and the inability to store other items that may be used to make a profit, a situation known as opportunity cost. Consistent product availability encourages repeat business and contributes to a positive shopping experience. If the merchandise is taken off the shelves, a smaller number of people will enter your business. Having the correct number of items is crucial to preventing clients from defecting to your primary competitors. (Nexgen Marketing, 2022) CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 7 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI Low product availability has several negative consequences. Firstly, it can lead to stockouts, resulting from inadequate planning, underestimating demand, underordering, or having low safety stock levels. This can result in lost customers and the need to visit competitors. Secondly, it frustrates customers, leading to a poor shopping experience and potential loss of loyal customers. Third, it results in needless sales loss as your store's reputation suffers, and you're unable to meet customer needs. Inaccurate product forecasting can also lead to financial losses and dead stock, reducing your return on investment. Lastly, product availability has a significant impact on both retailers and suppliers. As a retailer low product availability can lead to lost sales and push customers to explore alternative brands. This affects the relationship between retailers and suppliers, potentially causing retailers to lose faith in unreliable suppliers and seek alternatives. A strained relationship can also harm a brand's placement in stores. This issue is equally detrimental for suppliers engaged in category management, emphasizing the critical importance of maintaining strong product availability for all parties involved in the supply chain. (DotActiv Team, 2023) CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 8 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI II. STATEMENT OF PURPOSE This paper focuses on enhancing Kaldi Cafe with the intention of improving its operational performance across various areas. As the demand for specialty coffee and pastries continues to rise, it is essential for Kaldi to adapt and innovate to meet the evolving needs and expectations of its customers while also addressing sustainability concerns. In this context, we outline our intentions to implement Kaizen principles to enhance the cafe's operations. The following are the core aims: • To determine the primary factors contributing to menu item unavailability. • To improve stock control and inventory management procedures. • To reduce customer dissatisfaction brought on by unavailable menu items. • To cultivate a culture of continuous improvement among Kaldi Cafe's staff. • To elevate the overall customer experience. • To implement Kaizen principles to improve operational efficiency. • To put methods, such as improved forecasting and inventory control, into action to reduce menu item unavailability. CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 9 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI III. IMPROVEMENT SCOPE This study will center on the effects and causes that create a hindrance in KALDI’S goals to provide quality service to its customers. This will be a way to provide opportunities to the company and look for ways to achieve, improve, and give solutions to the problem. Inefficient workforce scheduling results in a poor distribution of labor resources, overstaffing, or understaffing during crucial times. Due to inconsistent shifts, this can result in higher labor expenses and worse staff morale. In addition, a lack of inventory accountability makes it difficult for a business to efficiently track, manage, and reorder products, which could lead to stockouts, overstocking, and higher holding costs. Both problems can negatively impact a business's capacity to operate profitably. A lack of backup providers might make a company prone to supply chain disruptions. Without backup sources, unexpected events like supplier bankruptcy or natural calamities could stop output. Like how unclear inventory methods can cause inefficiencies, it can make it difficult to check stock levels effectively, which could lead to overstocking or stockouts, which have a negative influence on costs and customer satisfaction. Figure 6: Fishbone Diagram CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 10 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI After identifying the cause and effect of the problem by the team, they noticed that there is a need for improvements in certain areas of KALDIS operation. This paper will focus on the improvement of Methods and Materials. The figure above indicates that the following cause of the KALDI is inventory shortage, and the team discovered several factors influencing product availability at KALDI. After identifying the cause and effect of the problem, they noticed a need for improvements in some regions of KALDI's operation. This paper will discuss METHODS and MATERIALS for improving KALDI's operations. The first is the portion of materials demanded in KALDI activities, as the company cannot operate without its materials. When a company overlooks late delivery, there is a need for more supplies to create items, which causes an issue with client satisfaction. Next is the method. The lack of suppliers causes a halt on some parts of the source of profit; sticking with one supplier is one of the main reasons why there is an issue with product availability in the business. With backup plans or suppliers for the materials, the operation will eventually delay and hinder the gain in profit. Inaccurate inventory counts also trigger the unavailability of products in KALDI. The problem with monitoring the inventory of the KALDI causes shrinkage. KALDI's commitment to giving customers the best product and service will be an issue that can turn out poorly due to the product's under furnish availability. CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 11 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI IV. Plans of Action To solve the issue to improve KALDI’s problem. Here are the proposed strategies of the team to accomplish the goals. Figure 7: Implementation of Actions Stages or Actions / Activities Person/ s Phases 1. Research Timetable Responsible The first thing that KALDI and the Owners and researchers need to do is to find Researchers another supplier for the Week 1 - 2 raw materials. Research is the way to make it happen since KALDI’s customers preferred their original supplier which has a problem in delivering supplies to them. To solve this problem, they need to search for another supplier. 2. Assess After conducting research for the Owners and suppliers, Researchers KALDI must assess Week 3 whose supplier they will choose that also has the same taste as their current supplies that will satisfy their customer's taste buds. CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 12 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI 3. Study Following a comprehensive assessment of potential backup Owners and Week 4 Customers suppliers, this phase also includes gauging customer satisfaction. The analysis will consider factors like potential cost savings, the quality of the products, the supplier's ability to meet Kaldi's unique operational requirements, and the potential of the supplier to act as a reliable backup source. Along with the qualities of the supplier, it also considers feedback from customers as well as reactions to the cafe's offerings. 4. Observe This phase entails a rigorous Owners, evaluation to make sure that the Customers, and products from the backup supplier Researchers Week 5 are comparable to the quality and customer satisfaction levels of the main supplier. The aim of this phase is to make sure that, if the primary supplier encounters difficulties or disruptions, the backup provider will be able to effortlessly step in and sustain the supply chain. CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 13 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI 5. Adopt In this phase, concentrate on KALDI will integrating Owners Week 6 Owners and Researchers Week 7 Owners and Researchers Week 8 the products of the backup supplier into their supply chain in the hope of enhancing customer and maintaining satisfaction uninterrupted operations. It is a crucial step to ensure the supply chain in the face of potential disruptions with the main supplier. 6. Monitor Following the effective implementation of the plans, strict monitoring of all processes will become necessary. The purpose is to guarantee the long-term effectiveness of a new set of procedures for KALDI, identify the long-term business benefits, and fix any potential defects in the proposed process as soon as feasible. 7. Review This phase results from a successful process implementation for the decide business. KALDI between adopting must and improving the new method and returning to its previous operational standards. CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 14 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI • OLD vs. NEW PROCESS FLOW CHART This part of the paper includes the old and new KALDI flow charts that will be differentiated and analyzed. The team came up with a new flow chart to solve and minimize the unavailability of KALDI’s Products. START DELEGATION OF TASKS CHECKING OF INVENTORY NO INSUFFICIENT SUPPLIES? YES NOTIFY THE OWNER ORDERING TO SUPPLIER Is there a stock in suppliers? NO UNAVAILABLE STOCK OF SUPPLIES YES ORDERING TO SUPPLIER ORDER RECEIVED END Figure 8: Old Process Flowchart CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 15 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI The issue with the process shown above is Kaldi's significant reliance on a single source. In this instance, Kadi's inventory is completely sourced from one provider. Delays or stockouts at the major supplier, for example, have a direct impact on Kaldi's capacity to sustain product availability. It's because Kaldi is susceptible to problems with the supply chain due to its excessive reliance on one source. And this has the effect of reducing consumer satisfaction and losing income. The team believes that diversifying their supplier base is the best way to address this issue. This calls for Kaldi to find a backup source. This will minimize lost income due to product unavailability and ensure a more stable and resilient supply chain. START Figure 9: New Process Flowchart DELEGATION OF TASKS CHECKING OF INVENTORY NO INSUFFICIENT SUPPLIES? Yes NOTIFY THE OWNER NO ORDERING TO SUPPLIER IS THERE A STOCK IN SUPPLIERS? Yes UNAVAILABLE STOCK OF SUPPLIES ORDERING TO SUPPLIER CONTACT BACK- UP SUPPLIERS ORDER RECEIVED PLACE BACK-UP ORDER BACK-UP ORDER RECEIVED CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 END PAGE 16 OF 32 PROF. DAN JEWARD C. RUBIS, MBA ORDERING SAFETY STOCK AN IMPROVEMENT PLAN PAPER FOR KALDI This new process flowchart was developed for KALDI, aiming to make changes and improve to have the potential to reshape their business in the future. To fully understand the proposed new process flowchart, the team identified first the problem and what causes the problem that affects product unavailability and found out that the business could not manage the inventory well. Analyzing and observing their flowchart, the team added a few processes and that is to find a backup supplier whenever there is unavailability to their primary supplier. The proposed new process flowchart for KALDI aims to improve their business and reshape it in the future. To address the product unavailability problem, the team identified the main cause as poor inventory management. After analyzing the existing flowchart, the team added a process to find a backup supplier and to have a safety stock to prevent product unavailability whenever the primary supplier is out of stock. V. Desired Outcomes The suggestions proposed by the team aim to improve KALDI’s process to avoid the unavailability of its products. The first outcome that the team wants for KALDI is to increase their daily sales. It has a big impact on KALDI because they could reach more customers. Many customers come to KALDI, which means they can capture more market share. The second is to avoid leaving customers who want to order. This scenario can give a business a bad image and lead to a situation where customers will be frustrated and disappointed. Lastly, to maintain the satisfaction they provide to their customers, especially students who are looking for a cozy place to hang out after a long, tiring day of school. CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 17 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI VI. Plan Viability The paper on KAIZEN presented a plan of action to address the issue of understocking in inventory that can lead to customer dissatisfaction and loss of customers. The previous chapter suggested adding safety stock and finding new suppliers to prevent understocking. The old process relied on a single supplier and their staff for ordering ingredients without proper planning. The new process, however, will improve production and customer satisfaction by adding new processes such as safety stock and seeking backup suppliers that can serve as a safety net in case the main supplier does not have stock for their products. The new plan of action may take time and add management costs, but finding a new supplier can help with their stocks and meet the expectations of reliability and consistency. D. Saputra. (2023). A backup supplier is an additional source that you set in place to provide resources if your primary supplier is unable to satisfy your needs. In this case, your primary provider continues to be your major source of materials, while the backup supply functions as a backup plan to prevent interruptions. Adding safety stocks to their new process can balance production and help the business prepare for fluctuations in demand and supply, always ensuring reliability and helping the business cope with surges in customers. Kunz, B. (2022). Stockouts involve a wide range of negative consequences for small-business owners, including lost sales, lower customer satisfaction, higher operating expenses, and more. Having emergency supplies on hand can assist company owners in avoiding running out of supplies even when unforeseen occurrences occur. Providing the wants of the customer with excellent customer service can lead to customer satisfaction. Kunz also said that prioritizing client happiness is critical for small-business entrepreneurs. Having emergency supplies on hand helps keep pleased loyal consumers who know they have access to their trusted brands to locate what they need. Ensuring the customer with good products and good service, the KALDI can earn a high customer retention rate. If the café is a reliable and worry-free place, this will lead to customer satisfaction, loyalty, and positive word-of-mouth contributing to KALDI’s success in the long run. CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 18 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI VII. Benefits Internal Stakeholders Employees The suggested solution, which includes a backup supply, will considerably benefit employees. It is because, with a more stable and consistent supply chain, staff are unlikely to be concerned about disruptions while doing their duties. It will improve job satisfaction and efficiency. It will also relieve them of the stress of dealing with supply shortages, allowing them to focus on their main line of work. Management The recommended plan of action will also benefit management since it would result in greater control and contingency planning. The redesigned process flow with backup suppliers and safety stock will ensure Kaldi's smoother operations and will reduce the danger of frequent supply chain problems. Furthermore, it will improve the company's overall performance and reputation, allowing management to implement strategic goals more easily. Owner The implementation of the new process flow with backup suppliers will benefit the owners as well. Because the risks arising from supply shortages will be decreased with this modified flow. As a result, owners will have greater confidence in their company's stability and durability. They can better foresee their business's future and make educated decisions to remain competitive in the market. CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 19 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI External Stakeholders Customers Customers are certain to benefit from the revised process flow since it will increase product availability and delivery times, which is the primary focus of this study. This will result in improved customer satisfaction, which is likely to give rise to repeat purchases, resulting in business development and continuity. A pleasant customer experience can also attract prospective customers, which can contribute to the growth of the company. Suppliers The improved supply chain management will benefit suppliers. Suppliers ought to anticipate improved revenues and stronger ties with the company with more predictable orders and regular product demand. Improved supplier-company collaboration can result in mutual growth and success. Creditors The recommended solution may benefit creditors as well. The firm is better positioned to satisfy its financial commitments, including loan payments, with a more reliable and efficient supply chain. This enhanced dependability and profitability reassure creditors about the company's capacity to repay obligations on time, lowering their worries and risks. CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 20 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI VIII. Necessary Resources In this section of the paper, the team outlines the essential requirements for putting the plan into action. It is crucial to have a clear understanding of the factors that the team need to consider when executing this plan. The team primarily focuses on the time and materials required to bring the proposal to life. A. Material Back-up suppliers - This is needed by KALDI because they should not be dependent on only one supplier. It may cause unavailability of supplies if their main supplier runs out of stock and there is no other option but to wait for the restock. Back-up suppliers are essential for KALDI to have another option in terms of the need situation. Safety Stock - KALDI should always provide safety stock to avoid the unavailability of products. In case they cannot get stock from their suppliers, their safety stock will help them in situations where there is a huge number of customers. B. Time The suggested approach will necessitate an appropriate amount of time. The team allocated one to two weeks for our plans of action. This is crucial to allow Kaldi to find additional suppliers because there is no need to rush in searching for other suppliers as the sub-supplier should still maintain quality. CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 21 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI IX. Conclusion The purpose of this paper is to prevent the KALDI’s problem in connection to the result of the conducted survey by the team. In the interview with one of the owners, they said that they have a problem with the unavailability of products and one of the reasons we have seen in this problem is their dependency on only one supplier. After surveying the customers, the team observed that the highest result for the problem was the unavailability of KALDI’s product, which also matched the team's interview with one of the owners. By that, the team concluded that one of the most important things that KALDI needs to do is to have a backup supplier. The team will use the plans of action to put the suggested solutions into practice. The first step that the team and the owners need to do is to research. To find a sub-supplier in case the main supplier does not have stocks to deliver. Second, the owners must assess which supplier provides the best and almost the same taste as their main supplier stocks that will surely satisfy their customers. After doing it, they should study the potential of the chosen backup supplier by observing their qualities if they also satisfy the customers. After doing those, they must adopt the steps by integrating the products of the backup suppliers into KALDI’s supply chain. Next is to have strict monitoring of implemented actions to guarantee the long-term effectiveness of the procedures for KALDI. Lastly, KALDI must review the successful implementation process to decide either to adopt or to improve the new method and return to its previous operational standards. As a result, the team proposed a modification to KALDI’s old process. The team input a backup supplier and ordered safety stock in the new process flowchart to prevent the unavailability of products. In the old process, KALDI does not have a backup supplier. By doing these procedures, the team affirms that the customers will not leave KALDI dissatisfied and it will also help KALDI to increase their daily sales. CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 22 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI X. Preparations Made This section of the paper outlines the steps the team took to create the KAIZEN paper. Following the brainstorming, the team leader divided out the duties among the members of the group to begin work on the paper. The team surveyed KALDI to gather information to be a tool to use for the paper. Once every assignment has been completed, the team leader reviews it to make sure no changes need to be made and solicits feedback from other team members before submitting it. The team met in person at KALDI to talk about the remaining responsibilities for the designated chapters and to interview one of the owners. In the remaining chapters, the team had a group work at school doing the old process of KALDI. The team conferred with the advisor on the completed work to gain advice on what modifications or additions to make to the paper before finalizing it. CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 23 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 24 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 25 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 26 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI Figure 10: Designation of Task and Sharing of Insights Figure 11: Conducting Survey and Interview CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 27 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI Figure 12: Group Meeting at KALDI Figure 13: Groupings at school for Flow Chart CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 28 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI Figure 14: Consultation CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 29 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI XI. Works Cited/ Consulted • Atnafu, D., & Balda, A. (2018). The impact of inventory management practice on firms’ competitiveness and organizational performance: Empirical evidence from micro and small enterprises in Ethiopia. Cogent Business & Management https://www.tandfonline.com/doi/full/10.1080/23311975.2018.1503219 • DotActiv Team. (2023, July 10). HOW CONSISTENT PRODUCT AVAILABILITY IMPROVES CUSTOMER EXPERIENCES. DotActiv Team. Retrieved October 2, 2023, from • https://www.dotactiv.com/blog/consistent-productavailability#:~:text=It%20frustrates%20and%20angers%20your%20customers&text =Not%20having%20the%20right%20products,visit%20your%20direct%20competito r%20instead • Kunz, B. (2023, April 8). What Is Safety Stock? Business.org. https://www.business.org/finance/inventory-management/what-is-safety-stock/ • Nexgen Marketing. (2022, June 15). Reasons Why Consistent Product Availability Results in Better Shopper Experience. Nexgen. Retrieved October 2, 2023, from • https://www.nexgenus.com/company/blog/reasons-why-consistent-productavailability-results-in-better-shopper-experience • Saputra, D., Saputra, D., & Saputra, D. (2023, June 13). Maximize Resilience: How You Can Benefit from Backup Suppliers. SCM Guide - Where Supply Chain Management Is so Easy. https://scmguide.com/maximize-resilience-how-you-can-benefit-frombackupsuppliers/#:~:text=A%20backup%20supplier%20refers%20to%20a%2 0secondary%20source,serves%20as%20a%20contingency%20plan%20to%20 mitigate%20disruptions. • Team, C. C. (2022). How do inventory risks impact your business? Cin7 Core. https://dearsystems.com/how-do-inventory-risks-impact-yourbusiness/#:~:text=As%20mentioned%20earlier%2C%20having%20more,Losing%20 sales CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 30 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI • What Are the Factors Affecting the Inventory Management? (2021, June 30). Asset Infinity. https://www.assetinfinity.com/blog/factors-affecting-inventory-management CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 31 OF 32 PROF. DAN JEWARD C. RUBIS, MBA AN IMPROVEMENT PLAN PAPER FOR KALDI XII. Annex Figure 15: Evaluation Form for Unavailability of Products CABUNIAG, DORINGO, LLAMAS, ZAFRA FIN223 PAGE 32 OF 32 PROF. DAN JEWARD C. RUBIS, MBA