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

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

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

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

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

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

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

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.

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

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

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)

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

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

Questions???

References Apollo Group, Inc.: Kudler Fine Foods. (2007). Retrieved on June 23rd, 2009 from op/Business/Kudler/Internet/KudlerPort.htm Apollo Group, Inc.: Kudler Fine Foods. (2007). Retrieved on June 23rd, 2009 from op/Business/Kudler/Internet/KudlerPort.htm op/Business/Kudler/Internet/KudlerPort.htm op/Business/Kudler/Internet/KudlerPort.htm Melnyk and Swink,(2004). Value−Driven Operations Management: An Integrated Modular Approach, 2004 Melnyk and Swink,(2004). Value−Driven Operations Management: An Integrated Modular Approach, 2004