University of phoenix
Operations Management Paper
19th, Oct, 2009
Kudler Fine Foods is making a decision that will change the way its operations are
This decision is consists of initializing contract negotiations with local growers of organic
produce. Operational changes have to be implemented in order for the company to satisfy its
customers. All of the business processes at Kudler Fine Foods will be affected along with the
supply chain. A revision of quality control tools is needed in order for the company to have
affective operations policies. This move will affect different areas of the company’s business,
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This can give Kudler a chance to introduce their new product
and service to gain more customer loyalty. Customer loyalty is what drives a business to
be successful, when customers are satisfied they return because of the product and
service. In order for this to be applied the necessary and best projects that fit the organization
focus and strategic alignment that has forced the organizational change. Once corporate and
business strategies have been agreed upon, and long-term objectives set, the strategic
management process moves into a critical new phase, translating strategic thought into
organizational action (Chase, Jacobs, Aquilano, 2006).
The company will need to identify how inventory will be affected, if one type of product will
be purchased over another. Eventually, the consumers' purchases will forecast the answer of
supply for the stores. The term process is defined as, "any set of activities performed by an
organization that takes inputs and transforms them into outputs ideally of greater value to the
organization then the original inputs" (Chase, Jacobs, and Aquilano, 2006).
With the introduction of the organic produce, managers will need to forecast differently from
the previous orders of chemically treated products.
Organic produce tends to be more expensive then the chemically treated produce and has
less of a shelf life, so the Department managers will need to maintain a balance of inventory
control, budgeting and consumer request/orders that do not lead to loss of profits for the
Department managers must obtain the best pricing and quality. They must also obtain the
best delivery method. Once the merchandise is received into the store, department managers
verify orders on an order-received form. The form is then sent to Kudler’s accounting
department for the invoices to be paid. By adding organic foods to its order forms, Kudler is
doing nothing more than adding another step in the purchasing process. Organic foods
cannot be ordered from the same suppliers, so an additional order must be placed.
Making slight adjustments to the supply chain hierarchy would improve quality and reliability
to the company. It would dramatically improve the effectiveness of procurement functions,
and ultimately achieve higher levels of performance through supply chain mastery.
The main objective for Kudler Fine Foods should be the continuous emphasis on the
improvement of the production sequence. Total quality management (TQM) is based on the
belief that all of an organizations activities need to be focused on improving its product
(Gomez-Mejia, Balkin, 2002). When the total TQM involves the company as whole, products
can be manufactured and delivered quicker and more efficient.
The team can compare and predict which products will be beneficial and which products will
not be sold at the Kudler stores, thus guaranteeing customer satisfaction. By comparing