Quality Improvement Implementation Plan: Kudler Fine Foods

1. Quality Improvement Implementation Plan: Kudler Fine Foods Team D: Anita Keeler-Brown, Bryan Pettis, Ashley Weninger, and Alison Vesper MGT/449 Bruce Stephens 07/20/2009

2. Overview • About Kudler Fine Foods • Steps of Quality Management Process and Improvement Plan • Identifying and Controlling Variation • Quality Tools for Identifying and Monitoring Variability • Why (chosen TQM Model)? • Recommendation for Plan Implementation

3. About Kudler Fine Foods • Mission - provide customers with unparalleled experiences by supplying them with the highest quality merchandise, knowledgeable staff, and superior customer service. • Vision – “Kudler Fine Foods will be the premiere gourmet grocery store for those savvy shoppers who are searching for the finest meats, produce, cheeses, and wine.” (Apollo Group Inc., 2007) Originated in 1998 by Kathy Kudler Three stores located in California

4. Steps of Quality Management Process and Improvement Plan • Use TQM tools to collect data about what is or is not working • Identify issues needing change • Develop solution ideas • Evaluate solution choices

5. Steps continued… • Decide on solutions • Build a plan for implementation • Implement that plan • Monitor process for necessary adjustments

6. Process Variation at Kudler Fine Foods • The current delivery process causes waste due to travel time from distribution point to store shelves. • Delivery times vary • Products sit too long at staging point • Too long in transit • Products must often be stored until employees can sort them • Delays cause spoilage – waste and loss

7. Controlling Variation Causes Options Must speed up delivery! Pick up items – unreasonable option Hire a new delivery service that guarantees delivery times Next day delivery – moderately expensive Same day delivery - very expensive Air delivery – most expensive • Problems at distribution point • Problems at staging point • Electronic systems • Equipment failure • Human factors

8. Why Control Variation? Knowing when to expect deliveries: allows management to schedule employees appropriately to accept and sort products. reduces spoilage and makes items available to customers in a shorter amount of time. Because variation causes reduction of quality, lower quality makes for unsatisfied customers, and that leads to waste and loss for the company.

9. Quality Tools for Identifying and Monitoring Variability • Check Lists Show • Profit/loss • Availability of food items • Item sales performance • Monitoring of pick-up and delivery/receipt of products • Track spoilage and damaged product info • Pareto Charts Show • How each store is performing • Visual presentation of delivery dates, times, and product condition • Tracks company information as a whole and by individual stores

10. Just in Time(JIT) • Increases Value • Reduced storage time • Extends shelf life • Increases availability to customers • Eliminates Waste • Reduces spoilage • Reduces handling of products – causing damage • Reduces Costs • Builds customer confidence

11. Why JIT? Improving the supply chain is important in lean systems because many quality problems are created at the supplier and not within a firm’s own transformation process. (Melnyk and Swink: ValueDriven Operations Management: An Integrated Modular Approach, 2004)

12. Recommendation for Plan Implementation • Hire a new, faster, more reliable delivery service as soon as possible • Get all employees involved in quality management objectives – ask for feedback and ideas • Schedule employees according to delivery schedule to reduce product storage times • Monitor delivery process closely and make adjustments as necessary

13. Summary • Steps of Quality Management Process and Improvement Plan • Identifying and Controlling Variation • Quality Tools for Identifying and Monitoring Variability • Why (chosen TQM Model)? • Recommendation for Plan Implementation

14. Questions???