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Starbucks Wait Time Analysis

      Brandon R. Theiss
        Mathew Brown
Motivation
• Reliability is defined as:
   – the probability of a product performing its intended
     function under stated conditions for a defined period
     of time.
• This definition unfortunately too narrowly defines the
  term in the context of a tangible product.
• Services represent 76.8% of the overall Gross Domestic
  Product of the United States or 11.9 Trillion dollars.
• A more applicable definition is therefore
   – The ability of process to perform its intended function
     under customer specified conditions for a customer
     defined period of time.
Objective
• To study the reliability of the Starbucks
  beverage delivery system to provide a
  beverage to a customer prior to reaching
  their critical wait time.
About Starbucks
• Founded 1971, in Seattle’s Pike Place Market.
  Original name of company was Starbucks
  Coffee, Tea and Spices, later changed to
  Starbucks Coffee Company.
• In United States:
   – 50 states, plus the District of Columbia
   – 6,075 Company-operated stores
   – 4,082 Licensed stores
• Outside US
  – 2,326 Company Stores
  – 3,890 Licensed stores
Representative Stores
• Two of the 6,075 company operated
  stores were selected by geographical
  convenience
  – Marlboro NJ
  – New Brunswick NJ
About Marlboro NJ




Marlboro is a Township in Monmouth County, New Jersey. It has
a population of 40,191 with a median household income of
$101,322
About New Brunswick




New Brunswick is a city in Middlesex County, New Jersey. It has
a population of 55,181 with a median household income of
$36,080
Measurement System
Measurement Procedure
1. Click Start on 1 of 10 timers in the
   Custom Application
2. Enter Identifying characteristic in textbox
3. Click Stop when the customer receives
   their beverage or leaves the store. Data
   is automatically recorded with times
   measured in milliseconds
4. Click Reset for the next customer
Marlboro NJ Location
Marlboro Wait Time Data
Does the Data Follow a Weibull
         Distribution?
                                      Hi st ogr am of Ti me
                                              Weibull
                 25                                                       Shape    2.007
                                                                          Scale   216106
                                                                          N           94

                 20


                 15
    Fr equency




                 10


                 5



                 0
                      0   100000   200000      300000   400000   500000
                                            Time
Does the Data Follow a Gamma
         Distribution?
                                     Hi st ogr am of Ti me
                                            Gamma
                25                                                        Shape   3.977
                                                                          Scale   47936
                                                                          N          94

                20



                15
   Fr equency




                10



                5



                0
                     0   100000   200000      300000    400000   500000
                                           Time
Can the arrivals
 of customers
be Modeled as
  a Poisson
   Process?

Goodness-of-Fit Test for Poisson Distribution
Data column: Marlboro
Poisson mean for Marlboro = 5.22222
                              Poisson                Contribution
Marlboro Observed Probability Expected                  to Chi-Sq
<=3                  7       0.235206      4.23371        1.80748
4                    2       0.167197      3.00954        0.33865
5                    3       0.174628      3.14330        0.00653
6                    1       0.151991      2.73583        1.10135
7                    1       0.113390      2.04102        0.53097
>=8                  4       0.157589      2.83660        0.47716
  N N* DF      Chi-Sq P-Value
18   0   4 4.26215           0.372
Formal Test for the Data Being
    Normally Distributed
                                         Pr obabi l i t y Pl ot f or Ti me
                                                  Normal - 95% CI
               99.9
                                                                                               Goodness of Fit Test

                99
                                                                                               AD = 2.887
                                                                                               P-Value < 0.005
                95
                90
                80
                70
    Per cent




                60
                50
                40
                30
                20
                10
                 5

                 1


                0.1
                   -200000 -100000   0   100000   200000   300000   400000   500000   600000
                                                  Time
Formal Test for the Data Being
    Gamma Distributed
                        Pr obabi l i t y Pl ot f or Ti me
                               Gamma - 95% CI
               99.9
                                                                      Goodness of Fit Test
                99
                95                                                    AD = 0.699
                90                                                    P-Value = 0.075
                80
                70
                60
                50
                40
    Per cent




                30
                20

                10
                 5


                 1




                0.1
                10000       100000                          1000000
                             Time
Formal Test for the Data Being
    Weibull Distributed
                              Pr obabi l i t y Pl ot f or Ti me
                                     Weibull - 95% CI
               99.9
                 99                                                         Goodness of Fit Test

                90
                                                                            AD = 1.509
                80
                70                                                          P-Value < 0.010
                60
                50
                40
                30
                20
    Per cent




                10

                 5
                 3
                 2

                 1




                0.1
                      10000               100000                  1000000
                                   Time
Mean Time To Beverage and
  “Reliability” at Marlboro

 Biased                 Unbiased
 190652.872424565 ms    190652.916039948 ms
 3.17754787374275 min   3.1775486006658 min




  Biased                Unbiased
  0.8727                0.8754
Is the Process Capable Based
    Upon a Gamma Model?
                                        Pr ocess Capabi l i t y of Ti me
                                  Calculations Based on Gamma Distribution Model

                             LB                           USL
          Process Data                                                                O v erall Capability
    LB             0                                                                    Pp           *
    Target         *                                                                    PPL          *
    USL            300000                                                               PPU       0.29
    Sample Mean 190653                                                                  Ppk       0.29
    Sample N       94
                                                                                   Exp. O v erall Performance
    Shape          3.97724
                                                                                   PPM < LB                *
    Scale          47936
                                                                                   PPM > USL 127306.05
    O bserv ed Performance                                                         PPM Total       127306.05
    PPM < LB          0.00
    PPM > USL 95744.68
    PPM Total     95744.68




                             0        100000 200000     300000   400000 500000
Is the Process Capable Based
    Upon a Weibull Model?
                                        Pr ocess Capabi l i t y of Ti me
                                  Calculations Based on Weibull Distribution Model

                             LB                            USL
          Process Data                                                                  O v erall Capability
    LB             0                                                                      Pp           *
    Target         *                                                                      PPL          *
    USL            300000                                                                 PPU       0.32
    Sample Mean 190653                                                                    Ppk       0.32
    Sample N       94
                                                                                     Exp. O v erall Performance
    Shape          2.00713
                                                                                     PPM < LB                *
    Scale          216106
                                                                                     PPM > USL 144910.81
    O bserv ed Performance                                                           PPM Total       144910.81
    PPM < LB          0.00
    PPM > USL 95744.68
    PPM Total     95744.68




                             0        100000 200000      300000   400000 500000
Is the Beverage Delivery
                                                         Process in Control?
                                                           I -MR Char t of Mar l bor o                                                                                                   I -MR Char t of Mar l bor o
                                                                                                                                                                              Using Box-Cox Transformation With Lambda = 0.50
                               600000
                                                                                                            1
                                                                                                           1 1 1                                               800
                                                             1 1                                                                                                                                                                    1
                               450000                                                                                                                                                                                              1 1 1
I n d i v i d u a l V a lu e




                                                                                                                            UCL= 407256                                                                                                             UCL= 679.6




                                                                                                                                          I ndiv idual Value
                                                                                                                                                               600
                               300000
                                                                                                                            _
                                                                                                                                                                                                                                                    _
                                                                                                                            X= 190653                                                                                                               X= 422.7
                               150000                                                                                                                          400


                                    0
                                                                                                                            LCL= -25950                        200
                                                                                                                                                                                                                                                    LCL= 165.8
                                        1   10   19   28           37        46             55   64   73   82          91
                                                                        O b se r v a t io n                                                                          1   10   19    28         37      46           55   64   73   82          91
                                                                                                                                                                                                    Observ at ion

                                                                                                                   1
                                                              11                                                                                                                          11                                               1
                               400000                                                                                                                          450
M o v in g Ra n g e




                               300000
                                                                                                                                                                                                                                                    UCL= 315.6




                                                                                                                                          Mov ing Range
                                                                                                                            UCL= 266097                        300

                               200000

                                                                                                                            __                                 150                                                                                  __
                               100000
                                                                                                                            MR= 81443                                                                                                               MR= 96.6

                                    0                                                                                       LCL= 0                              0                                                                                   LCL= 0
                                        1   10   19   28           37        46             55   64   73   82          91                                            1   10   19    28         37      46           55   64   73   82          91
                                                                        O b se r v a t io n                                                                                                         Observ at ion
New Brunswick NJ Location
New Brunswick Wait Time Data
Does the Data Follow a Weibull
         Distribution?
                                        Hi st ogr am of Ti me
                                              Weibull
                 40                                                               Shape    1.994
                                                                                  Scale   273830
                                                                                  N          198


                 30
    Fr equency




                 20




                 10




                 0
                      0   100000   200000   300000   400000     500000   600000
                                             Time
Does the Data Follow a Gamma
         Distribution?
                                       Hi st ogr am of Ti me
                                              Gamma
                40                                                           Shape   3.080
                                                                             Scale   78771
                                                                             N         198


                30
   Fr equency




                20




                10




                0
                     0   100000   200000   300000 400000   500000   600000
                                              Time
Can the arrivals
 of customers
be Modeled as
  a Poisson
   Process?


Goodness-of-Fit Test for Poisson Distribution
Data column: New Brunswick
Poisson mean for New Brunswick = 9.9
New                            Poisson                Contribution
Brunswick Observed Probability Expected                  to Chi-Sq
<=6                   4       0.136574      2.73148       0.589107
7 - 8                 3       0.207617      4.15235       0.319795
9 - 10                5       0.251357      5.02715       0.000147
11 - 12               4       0.205390      4.10780       0.002829
>=13                  4       0.199062      3.98123       0.000088
 N N* DF         Chi-Sq P-Value
20    0  3 0.911967           0.823
Formal Test for the Data Being
    Normally Distributed
                                          Pr obabi l i t y Pl ot f or Ti me
                                                  Normal - 95% CI
              99.9
                                                                                         Goodness of Fit Test
               99
                                                                                         AD = 1.680
               95                                                                        P-Value < 0.005
               90
               80
               70
   Per cent




               60
               50
               40
               30
               20
               10
                5

                1

               0.1

                     00      00   0       00     00     00     00     00     00     00
                  000     000           00     00     00     00     00     00     00
                -2      -1            10     20     30     40     50     60     70
                                                  Time
Formal Test for the Data Being
    Gamma Distributed
                             Pr obabi l i t y Pl ot f or Ti me
                                    Gamma - 95% CI
              99.9
                                                                           Goodness of Fit Test
               99
               95                                                          AD = 0.911
               90                                                          P-Value = 0.023
               80
               70
               60
               50
               40
               30
   Per cent




               20

               10
                5


                1




               0.1
                     10000        100000                         1000000
                                   Time
Formal Test for the Data Being
    Weibull Distributed
                              Pr obabi l i t y Pl ot f or Ti me
                                     Weibull - 95% CI
               99.9
                 99                                                         Goodness of Fit Test

                90
                                                                            AD = 0.441
                80
                70                                                          P-Value > 0.250
                60
                50
                40
                30
                20
    Per cent




                10

                 5
                 3
                 2

                 1




                0.1
                      10000             100000                    1000000
                                     Time
Why Might the Data Not Follow
        a Gamma?
Poisson    Gamma                       ?
                                               Gamma * ? =?




                                  Make Drink
           Wait in Line
                                   Process
Arrival                                        Deliver
To Store                  Order                Drink
                          Drink



                    What We Measured
Is the Process Capable Based
    Upon a Weibull Model?
                                    Pr ocess Capabi l i t y of Ti me
                              Calculations Based on Weibull Distribution Model

                              LB                    USL
         Process Data                                                               O v erall Capability
   LB             0                                                                   Pp           *
   Target         *                                                                   PPL          *
   USL            300000                                                              PPU       0.15
   Sample Mean 242647                                                                 Ppk       0.15
   Sample N       198
                                                                                 Exp. O v erall Performance
   Shape          1.99408
                                                                                 PPM < LB                *
   Scale          273830
                                                                                 PPM > USL 301307.05
    O bserv ed Performance                                                       PPM Total       301307.05
   PPM < LB            0.00
   PPM > USL 303030.30
   PPM Total     303030.30




                              0    100000 200000 300000 400000 500000 600000
Is the Process Capable Based
    Upon a Gamma Model?
                                   Pr ocess Capabi l i t y of Ti me
                             Calculations Based on Gamma Distribution Model

                             LB                    USL
        Process Data                                                                   O v erall Capability
  LB             0                                                                       Pp           *
  Target         *                                                                       PPL          *
  USL            300000                                                                  PPU       0.13
  Sample Mean 242647                                                                     Ppk       0.13
  Sample N       198
                                                                                    Exp. O v erall Performance
  Shape          3.0804
                                                                                    PPM < LB                *
  Scale          78771.2
                                                                                    PPM > USL 283036.30
   O bserv ed Performance                                                           PPM Total       283036.30
  PPM < LB            0.00
  PPM > USL 303030.30
  PPM Total     303030.30




                             0    100000   200000 300000   400000 500000   600000
Mean Time To Beverage and
“Reliability” at New Brunswick


  Biased           Unbiased
  242688.9419 ms   242371.0724 ms
  4.0448 mins      4.0395 mins




  Biased           Unbiased
  0.6987           0.6993
Is the Beverage Delivery
                                                    Process in Control?

                                                      I -MR Char t of New Br unsw i ck                                                                                                      I -MR Char t of New Br unsw i ck
                                                                            1     1
                                                                                                                                                                                      Using Box-Cox Transformation With Lambda = 0.50
                               600000                                           11
                                                                                                        1                                                                                                      1     1
                                                                                                             1          1                                      800                                                 11                         1
                                                                                                                            UCL= 485623                                                                                                                       UCL= 733.1
I n d iv i d u a l V a l u e




                               450000




                                                                                                                                          I ndiv idual Value
                                                                                                                                                               600
                               300000                                                                                       _                                                                                                                                 _
                                                                                                                            X= 242647                                                                                                                         X= 473.9
                                                                                                                                                               400
                               150000


                                    0                                                                                       LCL= -330                          200                                                                                            LCL= 214.7
                                                                                                                                                                         1        1   1 1                                     1                    1
                                                                                                                                                                                                                          1       1
                                        1   21   41     61     81           101           121   141   161         181                                                1

                                                                    O b se r v a t io n                                                                              1       21       41     61      81        101            121     141   161         181
                                                                                                                                                                                                          Observ at ion

                                                                                                             1
                               480000                                        1 11
                                                                               1                            1                                                  600
                                                                              1                             1                                                                                                                                       1
                                                                                                                                                                                                                                                   1
                               360000                                                                       1 1
M o v in g Ra n g e




                                                                                                                                                                                                                   1                               1
                                                                                                                                                                                                                11 1      1                       1




                                                                                                                                          Mov ing Range
                                                                                                                            UCL= 298497                        400                                               1
                               240000                                                                                                                                                                                                                         UCL= 318.4


                                                                                                                            __                                 200
                               120000                                                                                                                                                                                                                         __
                                                                                                                            MR= 91359
                                                                                                                                                                                                                                                              MR= 97.4

                                    0                                                                                       LCL= 0                              0                                                                                             LCL= 0
                                        1   21   41     61     81           101           121   141   161         181                                                1       21       41     61      81        101            121     141   161         181
                                                                    O b se r v a t io n                                                                                                                   Observ at ion
Marlboro   New Brunswick
Starbucks Wait Time Analysis

COMBINED
Combined Wait Time Data
Is there a difference between
Marlboro and New Brunswick?
                              Hi st ogr am of Mar l bor o, New Br unsw i ck
                                                Gamma
                 40                                                               Variable
                                                                                  Marlboro
                                                                                  New Brunswick

                                                                              Shape Scale    N
                 30                                                            3.977 47936 94
                                                                               3.080 78771 198
    Fr equency




                 20




                 10




                 0
                      0   100000 200000 300000 400000 500000 600000
                                          Dat a
Is there a difference between
Marlboro and New Brunswick?
  Kruskal-Wallis Test: Wait Times versus Location


  Kruskal-Wallis Test on C2


  Subscripts          N    Median   Ave Rank           Z
  Marlboro           94    173350      121.6    -3.47
  New Brunswick     198    216245      158.3        3.47
  Overall           292                146.5


  H = 12.04    DF = 1     P = 0.001
  H = 12.04    DF = 1     P = 0.001   (adjusted for
  ties)
Does the Data Follow a Weibull
         Distribution?
                                      Hi st ogr am of Combi ned
                                                Weibull
                 35                                                             Shape    1.954
                                                                                Scale   255391
                                                                                N          292
                 30

                 25
    Fr equency




                 20

                 15

                 10

                 5

                 0
                      0   100000   200000    300000  400000   500000   600000
                                            Combined
Does the Data Follow a Gamma
         Distribution?
                                      Hi st ogr am of Combi ned
                                               Gamma
                 35                                                             Shape   3.201
                                                                                Scale   70580
                                                                                N         292
                 30

                 25
    Fr equency




                 20

                 15

                 10

                 5

                 0
                      0   100000   200000    300000  400000   500000   600000
                                            Combined
Are the Arrival Rates the Same?

                                 Hi st ogr am of Mar l bor o, New Br unsw i ck
                                                            2    4   6   8   10   12   14   16
                                  Marlboro                            New Brunswick
                 9

                 8

                 7

                 6
    Fr equency




                 5

                 4

                 3

                 2

                 1

                 0
                     2   4   6     8   10    12   14   16
Are the Arrival Rates the Same?
  Kruskal-Wallis Test: Arrivals versus Location


  Kruskal-Wallis Test on Arrivals


  Location            N   Median    Ave Rank          Z
  Marlboro          18     4.500         12.4     -3.76
  New Brunswick     20    10.000         25.9      3.76
  Overall           38                   19.5


  H = 14.11    DF = 1     P = 0.000
  H = 14.26    DF = 1     P = 0.000    (adjusted for
  ties)
Can the arrivals
 of customers
be Modeled as
  a Poisson
   Process?
Goodness-of-Fit Test for Poisson Distribution

Data column: Combined

Poisson mean for Combined = 7.68421
                        Poisson                 Contribution
Combined Observed Probability Expected             to Chi-Sq
<=4             10     0.119196   4.52945            6.60719
5                3     0.102708   3.90291            0.20888
6                4     0.131538   4.99846            0.19945
7                2     0.144396   5.48703            2.21602
8                4     0.138696   5.27044            0.30624
9                3     0.118419   4.49991            0.49995
10               3     0.090995   3.45782            0.06062
11               1     0.063566   2.41551            0.82950
>=12             8     0.090486   3.43846            6.05144
  N N* DF    Chi-Sq P-Value
38   0   7 16.9793     0.018
Why Might the data set of Combined
  Arrivals Not Represent a Poisson
              Process?

• Not a large enough data set of stores
• Not constant arrival rate
  – Different demand for Beverages at different
    stores at different times
• Other factors are influencing the
  independence of events
  – Traffic lights
Formal Test for the Data Being
    Normally Distributed
                                       Pr obabi l i t y Pl ot f or Combi ned
                                                  Normal - 95% CI
               99.9
                                                                                         Goodness of Fit Test
                99
                                                                                         AD = 4.293
                95                                                                       P-Value < 0.005
                90
                80
                70
    Per cent




                60
                50
                40
                30
                20
                10
                 5

                 1

                0.1

                     00      00   0       00     00     00     00     00     00     00
                  000     000           00     00     00     00     00     00     00
                -2      -1            10     20     30     40     50     60     70
                                               Combined
Formal Test for the Data Being
    Gamma Distributed
                         Pr obabi l i t y Pl ot f or Combi ned
                                   Gamma - 95% CI
               99.9
                                                                           Goodness of Fit Test
                99
                95                                                         AD = 0.594
                90                                                         P-Value = 0.141
                80
                70
                60
                50
                40
                30
    Per cent




                20

                10
                 5



                 1




                0.1
                 10000           100000                          1000000
                                Combined
Formal Test for the Data Being
    Weibull Distributed
                              Pr obabi l i t y Pl ot f or Combi ned
                                        Weibull - 95% CI
               99.9
                 99                                                             Goodness of Fit Test

                90
                                                                                AD = 0.959
                80
                70                                                              P-Value = 0.016
                60
                50
                40
                30
                20
    Per cent




                10

                 5
                 3
                 2

                 1




                0.1
                      10000              100000                       1000000
                                    Combined
Mean Time To Beverage and
       “Reliability”

 Biased           Unbiased
 225908.8493 ms   226153.1587 ms
 3.7651 mins      3.7692 mins




  Biased          Unbiased
  0.7629          0.7617
Is the Process Capable Based
    Upon a Gamma Model?
                                     Pr ocess Capabi l i t y of Combi ned
                                  Calculations Based on Gamma Distribution Model

                              LB                      USL
          Process Data                                                                O v erall Capability
    LB             0                                                                    Pp           *
    Target         *                                                                    PPL          *
    USL            300000                                                               PPU       0.16
    Sample Mean 225909                                                                  Ppk       0.16
    Sample N       292
                                                                                   Exp. O v erall Performance
    Shape          3.20075
                                                                                   PPM < LB                *
    Scale          70580
                                                                                   PPM > USL 237100.41
    O bserv ed Performance                                                         PPM Total       237100.41
    PPM < LB           0.00
    PPM > USL 236301.37
    PPM Total    236301.37




                              0      100000 200000 300000 400000 500000 600000
Is the Process Capable Based
    Upon a Weibull Model?
                                      Pr ocess Capabi l i t y of Combi ned
                                   Calculations Based on Weibull Distribution Model

                              LB                        USL
          Process Data                                                                     O v erall Capability
    LB             0                                                                         Pp           *
    Target         *                                                                         PPL          *
    USL            300000                                                                    PPU       0.19
    Sample Mean 225909                                                                       Ppk       0.19
    Sample N       292
                                                                                        Exp. O v erall Performance
    Shape          1.95393
                                                                                        PPM < LB                *
    Scale          255391
                                                                                        PPM > USL 254194.23
    O bserv ed Performance                                                              PPM Total       254194.23
    PPM < LB           0.00
    PPM > USL 236301.37
    PPM Total    236301.37




                              0        100000 200000 300000 400000 500000      600000
Is the Process Capable Based
    Upon a Weibull Model?




   The corresponds to a Sigma level of 4. The Goal is 6!
Is the Process Capable Based
    Upon a Gamma Model?




   The corresponds to a Sigma level of 2. The Goal is 6!
Conclusions
• The amount of time a customer waits at a Starbucks is
  dependent on which location they visit.
• Regardless of location, Starbucks is incapable of reliably
  delivering a beverage in less than 5 minutes
• There is evidence to suggest that the arrivals follow a
  Poisson distribution which is supported by the literature
• There is evidence to suggest that the wait times follow a
  gamma distribution which the literature would suggest
?
 Brandon R. Theiss
btheiss@rutgers.edu

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15th QMOD conference on Quality and Service Sciences 9/07/2012

  • 1. Starbucks Wait Time Analysis Brandon R. Theiss Mathew Brown
  • 2. Motivation • Reliability is defined as: – the probability of a product performing its intended function under stated conditions for a defined period of time. • This definition unfortunately too narrowly defines the term in the context of a tangible product. • Services represent 76.8% of the overall Gross Domestic Product of the United States or 11.9 Trillion dollars. • A more applicable definition is therefore – The ability of process to perform its intended function under customer specified conditions for a customer defined period of time.
  • 3. Objective • To study the reliability of the Starbucks beverage delivery system to provide a beverage to a customer prior to reaching their critical wait time.
  • 4. About Starbucks • Founded 1971, in Seattle’s Pike Place Market. Original name of company was Starbucks Coffee, Tea and Spices, later changed to Starbucks Coffee Company. • In United States: – 50 states, plus the District of Columbia – 6,075 Company-operated stores – 4,082 Licensed stores • Outside US – 2,326 Company Stores – 3,890 Licensed stores
  • 5. Representative Stores • Two of the 6,075 company operated stores were selected by geographical convenience – Marlboro NJ – New Brunswick NJ
  • 6. About Marlboro NJ Marlboro is a Township in Monmouth County, New Jersey. It has a population of 40,191 with a median household income of $101,322
  • 7. About New Brunswick New Brunswick is a city in Middlesex County, New Jersey. It has a population of 55,181 with a median household income of $36,080
  • 9. Measurement Procedure 1. Click Start on 1 of 10 timers in the Custom Application 2. Enter Identifying characteristic in textbox 3. Click Stop when the customer receives their beverage or leaves the store. Data is automatically recorded with times measured in milliseconds 4. Click Reset for the next customer
  • 12. Does the Data Follow a Weibull Distribution? Hi st ogr am of Ti me Weibull 25 Shape 2.007 Scale 216106 N 94 20 15 Fr equency 10 5 0 0 100000 200000 300000 400000 500000 Time
  • 13. Does the Data Follow a Gamma Distribution? Hi st ogr am of Ti me Gamma 25 Shape 3.977 Scale 47936 N 94 20 15 Fr equency 10 5 0 0 100000 200000 300000 400000 500000 Time
  • 14. Can the arrivals of customers be Modeled as a Poisson Process? Goodness-of-Fit Test for Poisson Distribution Data column: Marlboro Poisson mean for Marlboro = 5.22222 Poisson Contribution Marlboro Observed Probability Expected to Chi-Sq <=3 7 0.235206 4.23371 1.80748 4 2 0.167197 3.00954 0.33865 5 3 0.174628 3.14330 0.00653 6 1 0.151991 2.73583 1.10135 7 1 0.113390 2.04102 0.53097 >=8 4 0.157589 2.83660 0.47716 N N* DF Chi-Sq P-Value 18 0 4 4.26215 0.372
  • 15. Formal Test for the Data Being Normally Distributed Pr obabi l i t y Pl ot f or Ti me Normal - 95% CI 99.9 Goodness of Fit Test 99 AD = 2.887 P-Value < 0.005 95 90 80 70 Per cent 60 50 40 30 20 10 5 1 0.1 -200000 -100000 0 100000 200000 300000 400000 500000 600000 Time
  • 16. Formal Test for the Data Being Gamma Distributed Pr obabi l i t y Pl ot f or Ti me Gamma - 95% CI 99.9 Goodness of Fit Test 99 95 AD = 0.699 90 P-Value = 0.075 80 70 60 50 40 Per cent 30 20 10 5 1 0.1 10000 100000 1000000 Time
  • 17. Formal Test for the Data Being Weibull Distributed Pr obabi l i t y Pl ot f or Ti me Weibull - 95% CI 99.9 99 Goodness of Fit Test 90 AD = 1.509 80 70 P-Value < 0.010 60 50 40 30 20 Per cent 10 5 3 2 1 0.1 10000 100000 1000000 Time
  • 18. Mean Time To Beverage and “Reliability” at Marlboro Biased Unbiased 190652.872424565 ms 190652.916039948 ms 3.17754787374275 min 3.1775486006658 min Biased Unbiased 0.8727 0.8754
  • 19. Is the Process Capable Based Upon a Gamma Model? Pr ocess Capabi l i t y of Ti me Calculations Based on Gamma Distribution Model LB USL Process Data O v erall Capability LB 0 Pp * Target * PPL * USL 300000 PPU 0.29 Sample Mean 190653 Ppk 0.29 Sample N 94 Exp. O v erall Performance Shape 3.97724 PPM < LB * Scale 47936 PPM > USL 127306.05 O bserv ed Performance PPM Total 127306.05 PPM < LB 0.00 PPM > USL 95744.68 PPM Total 95744.68 0 100000 200000 300000 400000 500000
  • 20. Is the Process Capable Based Upon a Weibull Model? Pr ocess Capabi l i t y of Ti me Calculations Based on Weibull Distribution Model LB USL Process Data O v erall Capability LB 0 Pp * Target * PPL * USL 300000 PPU 0.32 Sample Mean 190653 Ppk 0.32 Sample N 94 Exp. O v erall Performance Shape 2.00713 PPM < LB * Scale 216106 PPM > USL 144910.81 O bserv ed Performance PPM Total 144910.81 PPM < LB 0.00 PPM > USL 95744.68 PPM Total 95744.68 0 100000 200000 300000 400000 500000
  • 21. Is the Beverage Delivery Process in Control? I -MR Char t of Mar l bor o I -MR Char t of Mar l bor o Using Box-Cox Transformation With Lambda = 0.50 600000 1 1 1 1 800 1 1 1 450000 1 1 1 I n d i v i d u a l V a lu e UCL= 407256 UCL= 679.6 I ndiv idual Value 600 300000 _ _ X= 190653 X= 422.7 150000 400 0 LCL= -25950 200 LCL= 165.8 1 10 19 28 37 46 55 64 73 82 91 O b se r v a t io n 1 10 19 28 37 46 55 64 73 82 91 Observ at ion 1 11 11 1 400000 450 M o v in g Ra n g e 300000 UCL= 315.6 Mov ing Range UCL= 266097 300 200000 __ 150 __ 100000 MR= 81443 MR= 96.6 0 LCL= 0 0 LCL= 0 1 10 19 28 37 46 55 64 73 82 91 1 10 19 28 37 46 55 64 73 82 91 O b se r v a t io n Observ at ion
  • 22. New Brunswick NJ Location
  • 23. New Brunswick Wait Time Data
  • 24. Does the Data Follow a Weibull Distribution? Hi st ogr am of Ti me Weibull 40 Shape 1.994 Scale 273830 N 198 30 Fr equency 20 10 0 0 100000 200000 300000 400000 500000 600000 Time
  • 25. Does the Data Follow a Gamma Distribution? Hi st ogr am of Ti me Gamma 40 Shape 3.080 Scale 78771 N 198 30 Fr equency 20 10 0 0 100000 200000 300000 400000 500000 600000 Time
  • 26. Can the arrivals of customers be Modeled as a Poisson Process? Goodness-of-Fit Test for Poisson Distribution Data column: New Brunswick Poisson mean for New Brunswick = 9.9 New Poisson Contribution Brunswick Observed Probability Expected to Chi-Sq <=6 4 0.136574 2.73148 0.589107 7 - 8 3 0.207617 4.15235 0.319795 9 - 10 5 0.251357 5.02715 0.000147 11 - 12 4 0.205390 4.10780 0.002829 >=13 4 0.199062 3.98123 0.000088 N N* DF Chi-Sq P-Value 20 0 3 0.911967 0.823
  • 27. Formal Test for the Data Being Normally Distributed Pr obabi l i t y Pl ot f or Ti me Normal - 95% CI 99.9 Goodness of Fit Test 99 AD = 1.680 95 P-Value < 0.005 90 80 70 Per cent 60 50 40 30 20 10 5 1 0.1 00 00 0 00 00 00 00 00 00 00 000 000 00 00 00 00 00 00 00 -2 -1 10 20 30 40 50 60 70 Time
  • 28. Formal Test for the Data Being Gamma Distributed Pr obabi l i t y Pl ot f or Ti me Gamma - 95% CI 99.9 Goodness of Fit Test 99 95 AD = 0.911 90 P-Value = 0.023 80 70 60 50 40 30 Per cent 20 10 5 1 0.1 10000 100000 1000000 Time
  • 29. Formal Test for the Data Being Weibull Distributed Pr obabi l i t y Pl ot f or Ti me Weibull - 95% CI 99.9 99 Goodness of Fit Test 90 AD = 0.441 80 70 P-Value > 0.250 60 50 40 30 20 Per cent 10 5 3 2 1 0.1 10000 100000 1000000 Time
  • 30. Why Might the Data Not Follow a Gamma? Poisson Gamma ? Gamma * ? =? Make Drink Wait in Line Process Arrival Deliver To Store Order Drink Drink What We Measured
  • 31. Is the Process Capable Based Upon a Weibull Model? Pr ocess Capabi l i t y of Ti me Calculations Based on Weibull Distribution Model LB USL Process Data O v erall Capability LB 0 Pp * Target * PPL * USL 300000 PPU 0.15 Sample Mean 242647 Ppk 0.15 Sample N 198 Exp. O v erall Performance Shape 1.99408 PPM < LB * Scale 273830 PPM > USL 301307.05 O bserv ed Performance PPM Total 301307.05 PPM < LB 0.00 PPM > USL 303030.30 PPM Total 303030.30 0 100000 200000 300000 400000 500000 600000
  • 32. Is the Process Capable Based Upon a Gamma Model? Pr ocess Capabi l i t y of Ti me Calculations Based on Gamma Distribution Model LB USL Process Data O v erall Capability LB 0 Pp * Target * PPL * USL 300000 PPU 0.13 Sample Mean 242647 Ppk 0.13 Sample N 198 Exp. O v erall Performance Shape 3.0804 PPM < LB * Scale 78771.2 PPM > USL 283036.30 O bserv ed Performance PPM Total 283036.30 PPM < LB 0.00 PPM > USL 303030.30 PPM Total 303030.30 0 100000 200000 300000 400000 500000 600000
  • 33. Mean Time To Beverage and “Reliability” at New Brunswick Biased Unbiased 242688.9419 ms 242371.0724 ms 4.0448 mins 4.0395 mins Biased Unbiased 0.6987 0.6993
  • 34. Is the Beverage Delivery Process in Control? I -MR Char t of New Br unsw i ck I -MR Char t of New Br unsw i ck 1 1 Using Box-Cox Transformation With Lambda = 0.50 600000 11 1 1 1 1 1 800 11 1 UCL= 485623 UCL= 733.1 I n d iv i d u a l V a l u e 450000 I ndiv idual Value 600 300000 _ _ X= 242647 X= 473.9 400 150000 0 LCL= -330 200 LCL= 214.7 1 1 1 1 1 1 1 1 1 21 41 61 81 101 121 141 161 181 1 O b se r v a t io n 1 21 41 61 81 101 121 141 161 181 Observ at ion 1 480000 1 11 1 1 600 1 1 1 1 360000 1 1 M o v in g Ra n g e 1 1 11 1 1 1 Mov ing Range UCL= 298497 400 1 240000 UCL= 318.4 __ 200 120000 __ MR= 91359 MR= 97.4 0 LCL= 0 0 LCL= 0 1 21 41 61 81 101 121 141 161 181 1 21 41 61 81 101 121 141 161 181 O b se r v a t io n Observ at ion
  • 35. Marlboro New Brunswick Starbucks Wait Time Analysis COMBINED
  • 37. Is there a difference between Marlboro and New Brunswick? Hi st ogr am of Mar l bor o, New Br unsw i ck Gamma 40 Variable Marlboro New Brunswick Shape Scale N 30 3.977 47936 94 3.080 78771 198 Fr equency 20 10 0 0 100000 200000 300000 400000 500000 600000 Dat a
  • 38. Is there a difference between Marlboro and New Brunswick? Kruskal-Wallis Test: Wait Times versus Location Kruskal-Wallis Test on C2 Subscripts N Median Ave Rank Z Marlboro 94 173350 121.6 -3.47 New Brunswick 198 216245 158.3 3.47 Overall 292 146.5 H = 12.04 DF = 1 P = 0.001 H = 12.04 DF = 1 P = 0.001 (adjusted for ties)
  • 39. Does the Data Follow a Weibull Distribution? Hi st ogr am of Combi ned Weibull 35 Shape 1.954 Scale 255391 N 292 30 25 Fr equency 20 15 10 5 0 0 100000 200000 300000 400000 500000 600000 Combined
  • 40. Does the Data Follow a Gamma Distribution? Hi st ogr am of Combi ned Gamma 35 Shape 3.201 Scale 70580 N 292 30 25 Fr equency 20 15 10 5 0 0 100000 200000 300000 400000 500000 600000 Combined
  • 41. Are the Arrival Rates the Same? Hi st ogr am of Mar l bor o, New Br unsw i ck 2 4 6 8 10 12 14 16 Marlboro New Brunswick 9 8 7 6 Fr equency 5 4 3 2 1 0 2 4 6 8 10 12 14 16
  • 42. Are the Arrival Rates the Same? Kruskal-Wallis Test: Arrivals versus Location Kruskal-Wallis Test on Arrivals Location N Median Ave Rank Z Marlboro 18 4.500 12.4 -3.76 New Brunswick 20 10.000 25.9 3.76 Overall 38 19.5 H = 14.11 DF = 1 P = 0.000 H = 14.26 DF = 1 P = 0.000 (adjusted for ties)
  • 43. Can the arrivals of customers be Modeled as a Poisson Process? Goodness-of-Fit Test for Poisson Distribution Data column: Combined Poisson mean for Combined = 7.68421 Poisson Contribution Combined Observed Probability Expected to Chi-Sq <=4 10 0.119196 4.52945 6.60719 5 3 0.102708 3.90291 0.20888 6 4 0.131538 4.99846 0.19945 7 2 0.144396 5.48703 2.21602 8 4 0.138696 5.27044 0.30624 9 3 0.118419 4.49991 0.49995 10 3 0.090995 3.45782 0.06062 11 1 0.063566 2.41551 0.82950 >=12 8 0.090486 3.43846 6.05144 N N* DF Chi-Sq P-Value 38 0 7 16.9793 0.018
  • 44. Why Might the data set of Combined Arrivals Not Represent a Poisson Process? • Not a large enough data set of stores • Not constant arrival rate – Different demand for Beverages at different stores at different times • Other factors are influencing the independence of events – Traffic lights
  • 45. Formal Test for the Data Being Normally Distributed Pr obabi l i t y Pl ot f or Combi ned Normal - 95% CI 99.9 Goodness of Fit Test 99 AD = 4.293 95 P-Value < 0.005 90 80 70 Per cent 60 50 40 30 20 10 5 1 0.1 00 00 0 00 00 00 00 00 00 00 000 000 00 00 00 00 00 00 00 -2 -1 10 20 30 40 50 60 70 Combined
  • 46. Formal Test for the Data Being Gamma Distributed Pr obabi l i t y Pl ot f or Combi ned Gamma - 95% CI 99.9 Goodness of Fit Test 99 95 AD = 0.594 90 P-Value = 0.141 80 70 60 50 40 30 Per cent 20 10 5 1 0.1 10000 100000 1000000 Combined
  • 47. Formal Test for the Data Being Weibull Distributed Pr obabi l i t y Pl ot f or Combi ned Weibull - 95% CI 99.9 99 Goodness of Fit Test 90 AD = 0.959 80 70 P-Value = 0.016 60 50 40 30 20 Per cent 10 5 3 2 1 0.1 10000 100000 1000000 Combined
  • 48. Mean Time To Beverage and “Reliability” Biased Unbiased 225908.8493 ms 226153.1587 ms 3.7651 mins 3.7692 mins Biased Unbiased 0.7629 0.7617
  • 49. Is the Process Capable Based Upon a Gamma Model? Pr ocess Capabi l i t y of Combi ned Calculations Based on Gamma Distribution Model LB USL Process Data O v erall Capability LB 0 Pp * Target * PPL * USL 300000 PPU 0.16 Sample Mean 225909 Ppk 0.16 Sample N 292 Exp. O v erall Performance Shape 3.20075 PPM < LB * Scale 70580 PPM > USL 237100.41 O bserv ed Performance PPM Total 237100.41 PPM < LB 0.00 PPM > USL 236301.37 PPM Total 236301.37 0 100000 200000 300000 400000 500000 600000
  • 50. Is the Process Capable Based Upon a Weibull Model? Pr ocess Capabi l i t y of Combi ned Calculations Based on Weibull Distribution Model LB USL Process Data O v erall Capability LB 0 Pp * Target * PPL * USL 300000 PPU 0.19 Sample Mean 225909 Ppk 0.19 Sample N 292 Exp. O v erall Performance Shape 1.95393 PPM < LB * Scale 255391 PPM > USL 254194.23 O bserv ed Performance PPM Total 254194.23 PPM < LB 0.00 PPM > USL 236301.37 PPM Total 236301.37 0 100000 200000 300000 400000 500000 600000
  • 51. Is the Process Capable Based Upon a Weibull Model? The corresponds to a Sigma level of 4. The Goal is 6!
  • 52. Is the Process Capable Based Upon a Gamma Model? The corresponds to a Sigma level of 2. The Goal is 6!
  • 53. Conclusions • The amount of time a customer waits at a Starbucks is dependent on which location they visit. • Regardless of location, Starbucks is incapable of reliably delivering a beverage in less than 5 minutes • There is evidence to suggest that the arrivals follow a Poisson distribution which is supported by the literature • There is evidence to suggest that the wait times follow a gamma distribution which the literature would suggest
  • 54. ? Brandon R. Theiss btheiss@rutgers.edu