Beleza Natural Supply Chain

Beleza Natural Supply Chain

Introduction (Excerpt) It was early Monday morning, before any employees had arrived at the main Beleza Natural institute.i The Brazilian company’s four founders—CEO Leila Velez; her sister-in-law, Heloísa Assis; Heloísa’s brother, Rogério Assis; and Heloísa’s husband, Jair Conde—were meeting to discuss their business improvement and growth plans, which would be presented to potential investors at the Entrepreneurship and Competitiveness in Latin America (ECLA) programii at Columbia Business School. Beleza Natural was growing at a rapid pace. Its institutes were overbooked on most weekends, which created a lively atmosphere—but also a sense of a missed market opportunity (see Exhibit 1).

For the operational improvement plan, which needed to be implemented over the coming eight months, they were brainstorming a host of measures, including changing store layouts, cross-training, hiring more staff, and raising prices. And even though they had nine months to submit a growth plan, they were also already exploring which other countries would be good fits with the Beleza Natural model, as they considered a global expansion.

History of Beleza Natural
Beleza Natural was a Brazilian chain of beauty institutes, which specialized in products and services for Afro-Brazilian women with kinky, curly, and wavy hair. The company also had its own factory in Rio de Janeiro, where its research and development team worked to improve Beleza Natural’s current products and create new ones. All the products used at the institutes were made at the factory. The company also produced shampoos, conditioners, and hair creams to sell to clients as maintenance kits for home use. Beleza Natural products were sold exclusively at the institutes…………………………………………….
Beleza Natural Case Instructions

• Read the Beleza Natural case and reflect upon the process and the main issue involved in this case.
• What are the key elements of Beleza’s business strategy?
• Identify how the current process is structured, i.e. whether it follows a continuous, flow shop, job shop, cellular production, or project structure ?
• Identify how the current process is aligned with or supports company’s business strategy
• Conduct a complete process analysis for this case. Your process analysis must include:

– A complete process chart for the entire operation.

– Activity times of each process step.

– Number of workers working on each process step.

– Capacity of each process step in terms of number of customers served per hour.

– Overall capacity of the entire operation in terms of number of customers served in the facility.

– Identify the process step that serves a “bottleneck” for the entire operation, i.e. the step that has the lowest capacity.

– How would you break the above identified bottleneck?

– Take Saturday as a sample day. Calculate the flow rates and utilization level of each process step.

• What measures would you suggest to increase Beleza Natural’s operational efficiency?
• How do these improvement measures impact Beleza’s financial performance.
• How would you prioritize the improvement suggestions and in which order would you recommend implementation?
• Compile all the tasks above mentioned

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