Quality Improvement Quality Improvement Implementation Plan: Implementation Plan:

Kudler Fine FoodsKudler Fine FoodsTeam D: Anita Keeler-Brown, Bryan Pettis,Team D: Anita Keeler-Brown, Bryan Pettis,

Ashley Weninger, and Alison VesperAshley Weninger, and Alison VesperMGT/449MGT/449

Bruce StephensBruce Stephens07/20/200907/20/2009

OverviewOverview

About Kudler Fine FoodsAbout Kudler Fine Foods

Steps of Quality Management Process and Steps of Quality Management Process and Improvement PlanImprovement Plan

Identifying and Controlling VariationIdentifying and Controlling Variation

Quality Tools for Identifying and Monitoring Quality Tools for Identifying and Monitoring VariabilityVariability

Why (chosen TQM Model)?Why (chosen TQM Model)?

Recommendation for Plan ImplementationRecommendation for Plan Implementation

About About Kudler Kudler Fine Fine

FoodsFoods

Mission - provide Mission - provide customers with customers with unparalleled experiences unparalleled experiences by supplying them with by supplying them with the highest quality the highest quality merchandise, merchandise, knowledgeable staff, and knowledgeable staff, and superior customer superior customer service. service.

Vision – “Kudler Fine Vision – “Kudler Fine Foods will be the Foods will be the premiere gourmet premiere gourmet grocery store for those grocery store for those savvy shoppers who are savvy shoppers who are searching for the finest searching for the finest meats, produce, cheeses, meats, produce, cheeses, and wine.” and wine.” (Apollo Group Inc., 2007)(Apollo Group Inc., 2007)

Originated in 1998 Originated in 1998 by Kathy Kudlerby Kathy Kudler

Three stores Three stores located in Californialocated in California

Steps of Quality Steps of Quality Management Process and Management Process and

Improvement PlanImprovement Plan Use TQM tools to collect data about what is or Use TQM tools to collect data about what is or

is not workingis not working

Identify issues needing changeIdentify issues needing change

Develop solution ideasDevelop solution ideas

Evaluate solution choicesEvaluate solution choices

Steps continued…Steps continued…

Decide on solutionsDecide on solutions

Build a plan for implementationBuild a plan for implementation

Implement that planImplement that plan

Monitor process for necessary adjustmentsMonitor process for necessary adjustments

Process Variation at Process Variation at Kudler Fine FoodsKudler Fine Foods

The current delivery process causes waste The current delivery process causes waste due to travel time from distribution point to due to travel time from distribution point to store shelves.store shelves.

Delivery times varyDelivery times vary

Products sit too long at staging pointProducts sit too long at staging point

Too long in transitToo long in transit

Products must often be stored until Products must often be stored until employees can sort thememployees can sort them

Delays cause spoilage – waste and lossDelays cause spoilage – waste and loss

Controlling VariationControlling Variation

CausesCauses

Problems at distribution Problems at distribution pointpoint

Problems at staging Problems at staging pointpoint

Electronic systemsElectronic systems

Equipment failureEquipment failure

Human factorsHuman factors

OptionsOptions

Must speed up delivery!Must speed up delivery!

Pick up items – Pick up items – unreasonable optionunreasonable option

Hire a new delivery Hire a new delivery service that guarantees service that guarantees delivery timesdelivery times Next day delivery – Next day delivery –

moderately expensivemoderately expensive Same day delivery - very Same day delivery - very

expensiveexpensive Air delivery – most Air delivery – most

expensiveexpensive

Why Why Control Control

Variation?Variation?

Knowing when to Knowing when to expect deliveries:expect deliveries:

allows allows management to management to schedule schedule employees employees appropriately to appropriately to accept and sort accept and sort products.products.

reduces spoilage reduces spoilage and makes items and makes items available to available to customers in a customers in a shorter amount of shorter amount of time.time.

Because variation Because variation causes reduction causes reduction of quality, lower of quality, lower quality makes for quality makes for

unsatisfied unsatisfied customers, and customers, and

that leads to that leads to waste and loss for waste and loss for

the company.the company.

Quality Tools for Identifying Quality Tools for Identifying and Monitoring Variabilityand Monitoring Variability

Check Lists ShowCheck Lists Show Profit/loss Profit/loss Availability of food Availability of food

itemsitems Item sales performanceItem sales performance Monitoring of pick-up Monitoring of pick-up

and delivery/receipt of and delivery/receipt of productsproducts

Track spoilage and Track spoilage and damaged product infodamaged product info

Pareto Charts ShowPareto Charts Show How each store is How each store is

performingperforming Visual presentation Visual presentation

of delivery dates, of delivery dates, times, and product times, and product conditioncondition

Tracks company Tracks company information as a information as a whole and by whole and by individual storesindividual stores

Just in Just in TimeTime(JIT)(JIT)

Increases ValueIncreases Value Reduced storage timeReduced storage time Extends shelf lifeExtends shelf life Increases availability to Increases availability to

customerscustomers

Eliminates WasteEliminates Waste Reduces spoilageReduces spoilage Reduces handling of Reduces handling of

products – causing products – causing damagedamage

Reduces CostsReduces Costs Builds customer Builds customer

confidenceconfidence

Why JIT?Why JIT?

Improving the supply chain is Improving the supply chain is important in lean systems important in lean systems

because many quality problems because many quality problems are created at the supplier and are created at the supplier and

not within a firm’s own not within a firm’s own transformation process. transformation process.

(Melnyk and Swink: ValueDriven Operations Management: An Integrated Modular Approach, (Melnyk and Swink: ValueDriven Operations Management: An Integrated Modular Approach, 2004)2004)

Recommendation for Recommendation for Plan ImplementationPlan Implementation

Hire a new, faster, more reliable delivery Hire a new, faster, more reliable delivery service as soon as possibleservice as soon as possible

Get all employees involved in quality Get all employees involved in quality management objectives – ask for feedback management objectives – ask for feedback and ideasand ideas

Schedule employees according to delivery Schedule employees according to delivery schedule to reduce product storage timesschedule to reduce product storage times

Monitor delivery process closely and make Monitor delivery process closely and make adjustments as necessaryadjustments as necessary

SummarySummary

Steps of Quality Management Process and Steps of Quality Management Process and Improvement PlanImprovement Plan

Identifying and Controlling VariationIdentifying and Controlling Variation

Quality Tools for Identifying and Monitoring Quality Tools for Identifying and Monitoring VariabilityVariability

Why (chosen TQM Model)?Why (chosen TQM Model)?

Recommendation for Plan ImplementationRecommendation for Plan Implementation

Questions???Questions???