Process Improvement Kudler Fine Foods

1777 words - 7 pages

Kudler Fine Foods is synonymous with quality at its finest. The stores unique offerings of everything from bake goods to cookery have created a loyal customer base. Kathy Kudler is committed to ensuring satisfaction and has assigned a process improvement team to address the possibility of improving upon some of the existing processes. This paper will provide a description of the process targeted for improvement. Analysis will involve an As-is flow chart for illustration of the process as well as give an description of why analyzing a process can be useful in improving quality. The work will mention quality tools recommended for the purpose of collection and presentation of data for this type of process. An analysis of process variability will also be conducted based on the teams understanding of the process and data collection. Lastly, the paper will present improvement strategies for the selected process, which includes how the improved inventory strategy is linked to the strategic goals of the organization.Targeted Process- InventoryThe pilot process improvement team has decided to improve the inventory process Kudler Fine Foods currently employs. The concern with the inventory is maintaining freshness of all perishable products, reducing the time all products remain in inventory, and maintaining a zero stock-out policy (Apollo Group, Inc., 2005). The customer's needs are given top priority, which requires store managers to maintain adequate levels of inventory on all items. The issue occurs when the adequate levels become excessive levels. When this occurs, too much money is tied up in the inventory, which requires more working capital to maintain.The alternative to excessive stock with the current system is too little stock on-hand. This would create a situation where stock-outs may be common. The owner of the business, Kathy Kudler, has expressed to her managers stock-out are to be kept at a minimal and should be avoided as much as possible. In retail, 60% of customers will not return to a store if the store is out of stock the first time for an item they are looking for (M. Stevenson, personal communication, April 25, 2007). This is not a risk worth taking for a business trying to build a strong customer base in a competitive market and is why the inventory process was chosen by the group to improve upon.As-Is Flow ChartCreating a continual improvement process within an organization requires continual analysis and adjustments. By looking at the process thoroughly allows an organization to view how the process is working and what needs improvement. Customer needs, specifications, and customer demands are continually changing so the need for a continuous improvement plan and analysis is important for Kudler Fine Foods. In addition, analyzing a procedure allows for measuring rudiments to be implemented. If the measuring elements are positioned within the right locations of the process, the doubt of the process can be exposed. For this reason,...

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