Quality Improvement Implementation Presentation2

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Quality Improvement Implementation Presentation2

  1. 1. Quality Improvement Implementation Presentation - Purchasing KUDLER FINE FOODS
  2. 2. Team A Presenters <ul><li>Neil Sinay – Introduction and setup </li></ul><ul><li>Danny Dyer – Steps for purchasing process improvement </li></ul><ul><li>Matt Ellis – Variation identification and control </li></ul><ul><li>Marc Kirkland – Inventory Management </li></ul><ul><li>Erik Calderon – Total Quality Management Model </li></ul>
  3. 3. Kudler’s Purchasing Improvement Plan <ul><li>Preparation </li></ul><ul><li>Commitment to Quality </li></ul><ul><li>Customer Service </li></ul><ul><li>Special Customer Needs </li></ul><ul><li>Training </li></ul><ul><li>Execution </li></ul><ul><li>Continual Improvement </li></ul>
  4. 4. Kudler’s Purchasing Plan Implementation <ul><li>Planning </li></ul><ul><li>Four Steps </li></ul><ul><li>Plan-Do-Check-Adjust </li></ul><ul><li>Identify Projects </li></ul><ul><li>Establish Team Composition </li></ul><ul><li>Provide Team Training </li></ul><ul><li>Execution </li></ul><ul><li>Plan is Being Carried Out </li></ul><ul><li>Working Together </li></ul><ul><li>Same Goal </li></ul><ul><li>Quality </li></ul><ul><li>Customer Satisfaction </li></ul>
  5. 5. Kudler Fine Foods Purchasing Variation <ul><li>Kudler purchasing operations rely on employee empowerment and Jell-O structuring </li></ul><ul><li>Each department manager from each store may requisition an order at any time from any supplier </li></ul><ul><li>Translates into 9 potential individual orders at once </li></ul>
  6. 6. Effects of Purchasing Variation <ul><li>Cost </li></ul><ul><ul><ul><li>FIFO, LIFO accounting </li></ul></ul></ul><ul><ul><ul><li>Bulk purchase offers, breakpoints </li></ul></ul></ul><ul><li>Measurement, benchmarking </li></ul><ul><ul><ul><li>No comps with previous years, no forecasting </li></ul></ul></ul><ul><li>Stock suitability </li></ul><ul><ul><ul><li>Seasonal fluctuations are uncontrolled </li></ul></ul></ul><ul><li>Quality of product(s) </li></ul><ul><ul><ul><li>Food freshness may be compromised </li></ul></ul></ul>
  7. 7. Purchasing Stabilization S : Define and document SOP’s, process requirements. Make it repeatable, Controllable, predictable D : Conform to defined standards C : Verify standards yield stability A : Were the observed effects of standards stable? Yes = make standards permanent No = change specs, repeat D O A CT S TANDARDIZE C HECK
  8. 8. Kudler’s Inventory Management <ul><li>Considerations </li></ul><ul><li>Average Sales Weekly (ASW) </li></ul><ul><ul><li>Rate of Sale </li></ul></ul><ul><li>Spike Sale </li></ul><ul><li>Seasonality </li></ul><ul><ul><li>Sales of last year </li></ul></ul>
  9. 9. Kudler’s Inventory Management <ul><li>Creates SOQ’s </li></ul><ul><ul><li>Considers ASW, spikes, and seasonality </li></ul></ul><ul><li>Central Buying </li></ul><ul><li>Managers merchandising properly for sell through </li></ul>
  10. 10. TQM Model for Process/Organizational Improvement <ul><li>Kudler must maintain high levels of quality </li></ul><ul><li>Kudler will implement a quality improvement program. </li></ul><ul><li>Model to be use will be JIT (Just In Time) </li></ul>
  11. 11. JIT Benefits <ul><li>Will reduce inventory levels. </li></ul><ul><li>Profits and return on investment will improve. </li></ul><ul><li>Reduce variability. </li></ul><ul><li>Product quality will improve </li></ul><ul><li>Delivery lead time will be reduce. </li></ul><ul><li>Other cost will be reduce </li></ul>
  12. 12. JIT compared to traditional inventory
  13. 13. QUESTIONS?

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