Beleza natural team report PDF

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BELEZA NATURAL M2 Case Study Team Report Angela Przybysz Arelene Motley Ashley VanderHall

SUNY Empire Operations Management

1.

What are the key elements of Beleza Natural's business strategy?

2.

How does Beleza Natural structure its processes to support their business strategy? How are their operations different than a classic hair salon?

Beleza Natural is a Brazilian cluster of beauty institutes that specializes in products and services for women with curly and wavy hair. They are considering global expansion of their business. Founded in 1993, the owners aspired to establish a company that offered services at lower prices than traditional hair salons charged. In doing so, this would enable less affluent women to have access to professional hair care (Besbes et al, 2011).” Beleza Natural’s main product is the super-relaxante treatment. “Beleza Natural’s objective is to increase clients’ selfesteem by using the treatment to bring out the full beauty of their hair (Besbes et al, 2011)”. Beleza Naturals created a staff development center to maximize efficiency and uniformity of service to the institute (Besbes et al, 2011).” This is where employees received their training. In addition, the company had its own factory in Rio de Janeiro where the research and development teams worked to improve Beleza Natural’s current products and create new ones (Besbes et al, 2011). Six days a week Beleza is open until 8:00 pm whereas traditional salons are only open until 6:00pm the latest Monday to Thursday. Upon entrance to Beleza, customers take a number and proceed to the front desk. The clients that were there for super-relaxante treatment would have to be evaluated by a trained hairdresser to determine if this treatment was right for them. Founder Leila Velez describes the structure of Beleza Natural as being similar to an assembly line such as that of McDonald’s. Each stage of the assembly has a professional that

will provide the service. About seventy percent of the employees are former clients. In a traditional salon, you may have one person washing hair or your hairdresser will wash and style your hair. The traditional salons are much smaller and have less employees which is why Beleza Natural is able to tend to ten times as many customers as the traditional salon. In 2011, Beleza Natural had over 1,000 employees, more than 60,000 customers per month, and 11 beauty institutes—10 in Rio de Janeiro and one in Salvador de Bahia (Besbes et al, 2011). Traditional salons will provide you with any service you request, no matter what the condition of your hair is. Beleza Natural has processes in place specifically for when customers come in with damaged hair.

3. Provide a detailed flow chart for the process.

On excel ***

4. Consider the Madureira Institute. Ignoring the evaluation step for new customers, provide the following analysis (see the Excel Spreadsheet Supplement): a. The capacity of each of the following steps: Reception, Division, Super Relaxing, Hydration, Hairstyle; b. Identify the bottleneck and the process capacity; c. The utilization of each step for Mon-Thu, Friday, and Saturday separately, and average utilization per week.

The capacity of each step consists of the below whereas Reception is the most productive and the super relaxing process the least productive in terms of capacity:

Activity time [min] # workers Capacity [cust/hr]

Receptio n

Divisio n

2 2 60

12.5 8 38.4

Super Relaxin g 40 18 27

Hydratio n

Hairstyl e

8 4 30

14 9 39

Reception is the most viable as it can service the most customer in the least amount of time. While hairstyle runs second in servicing the next highest quantity of customers. Analyzing the supplemental excel spreadsheet results for Beleza Natural process timelines, it is evident that the bottleneck of the entire process lies with the super relaxing step. This step has an activity time of 40 minutes and take 18 employees to complete it. This averages a servicing timeline of 27 customers per hour. In addition, of the 41 employees required to complete the 5 steps, the super relaxing process makes up 43% of total workers involved in all steps. The super relaxing stage poses a huge issue for Beleza Natural as it is limiting the capacity of the entire process. This causes stalls or delays in other Beleza Natural process steps and can result in pressure from customers and low employee morale. Pressure from customers could be due to complaints from other customers who are waiting to get to the next step or customers who feel that the entire process is taking longer than required. In addition, pressure could arise from employees who are involved in the super relaxing steps as it is also time consuming for them to perform their task on multiple customers during the super relaxing step. The Utilization rate is the percentage of time a person spends performing work equaling the percentage of total working hours. In this regard, it is apparent that the super relaxing stage is consuming 100% the time spent by the Beleza staff on performing this step on Saturday’s and

Friday’s, while it is consuming 90% Monday - Friday. This is a blatant sign that Beleza Natural needs to work to maximize the productive time of their employees, especially during the super relaxing step. Again, reception is showing as the most productive step with the least amount of utilization time on all days, even though the week.

Reception

Division

Super Relaxin g

Hydratio n

Hairstyl e

Demand rate [Saturday] Flow rate [cust/hr] Utilization

42.75 27 45%

70%

100%

90%

70%

Demand rate [Friday] Flow rate [cust/hr] Utilization

33 27 45%

70%

100%

90%

70%

Demand rate [monthu] Flow rate [cust/hr] Utilization

24 24 41%

64%

90%

81%

63%

94%

84%

66%

Flow rate per week Average utilization per week

1820

Avg Labor util

78.6%

42%

66%...