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LO2. Explain quality management, and apply quality management techniques to improve operations in a given situation

LO3. Select appropriate facilities and processes to ensure efficient provision of goods and/or services

LO4.  Discuss performance management and determine appropriate operational performance measures and controls

LO5.  Understand capacity management, apply techniques relating to resource planning, and recommend appropriate actions in a given situation

LO6.  Apply an understanding of supply chain management, inventory management, and materials management to given situations

LO2. Explain quality management, and apply quality management techniques to improve operations in a given situation

The current report is been carried out with the intention to document and focus upon the organisation observed under field trip. It would include the information collected and facts learned about the two companies i.e. New Zealand courier and Pizza hut. Both the companies include effective supply chain operations which would be discussed in the report elaborately. The report would further evaluate the information like quality management, performance management, capacity management and supply chain management within the framework of both the companies specifically. The report would provide with the in-depth knowledge gained out of observations and learning from the field trips in New Zealand courier and Pizza hut effectively.

Quality management is an important aspect which displays the standards of any business making them influential among customers. There are 7 basic total quality management tools which could be used by the organisation to establish effective quality standards within their functionalities. Following are the tools:

  • Cause and effect or fishbone diagram: This tool mainly contributes in identifying the possible causes for any problem and sorts the ideas into usable categories.
  • Control charts:  This tool enables to study as how the business process changes over the time with the help of graphs (Ross, 2017, p.30-38).
  • Check sheets: It is a structured form to collect and evaluate the data used for different purposes.
  • Histogram: This is the most commonly used graphic representation used to show the  frequency distribution
  • Scatter diagram: This includes the pairs of graphs of numerical data where one variable is placed on each axis so that to study the relationships.
  • Stratification: This tool is used to separate the collected data from different sources so that to observe their patterns.
  • Pareto chart : This indicates the significant factors on the bar graph (Heldman, 2018, p.10-15)

In context to the New Zealand courier which is a leading courier company having wide logistics and supply chain operations all over the region. The company makes use of effective total quality management measures to ensure smooth flow of the operations and logistic activities. The organisation utilises the check sheets tools to avail relevant information of the business procedures. It even includes the standards of ISO9001 quality management within its framework (Chen, 2017, p.55-58).

Pizza hut is a renowned food chain which operates its functionalities across the world. The organisation had included total quality management standards into its supply chain by implementing stratified quality management tool which is also known as flow chart. The tool helps in classifying the relevant data collected through different sources and then observed on the basis of their patterns specifically (Davis et al, 2018, p.55-62).  

Product and service development in an organisation plays an important role in delivering effective value proposition among the customers. It enables the businesses to acquire higher number of customer loyalty and trust over the brands specifically.

Developing products and services requires effective planning and execution of the strategies so that to deliver the best outcome. The services provided by the New Zealand courier company are developed by acquiring innovative, passionate and friendly team which results in a focused service deliveries to the end customers. The company ensures to offer responsive and individualized services so that to provide the customers with enhanced satisfaction and loyalty with the company (Xuehua, 2018, p.42-46). It has been also seen that the company acquires freights professionals backing up the entire team focused towards the effective service deliveries. The services are also provided with a web platform allowing the customers to avail the services online as well. It enables the customers to instantly access the

The food chain mainly focuses upon the customer centric approach to develop its products and services effectively. The products and services in pizza hut are developed by keeping the customer preferences and choices in minds so that to serve them with best satisfactions. Recently the brand had launched its new product range of different varieties. It even provides with the services like Pizza hut app, online ordering, call and SMS order as well so that to expand the approaches towards the customer segment. It has been also observed that the products and services are also developed by acquiring feedbacks from the customers through questionnaire and focus groups (Kim, 2017, p. 45-53).

LO3. Select appropriate facilities and processes to ensure efficient provision of goods and/or services

It basically involves the customers into the design of new products and development of the business. Pizza hut includes intense focus upon both the products and services so that to engage maximum customers with the brand and sustain profitability within the market. The customers are highly prioritised in the company which also provides the business with distinct brand image and value among the customers. Moreover, the company also ensures that high quality food items are been used for the products so that to maintain higher quality standards in the business.

The Facility layout is been considered to be an important component in any of the business operations. It helps in maximising the efficiencies of the production process and meet the requirements of the employees as well. The layout designs are mainly intended towards the assurance of smooth flow of work, resources and information through a system.

The courier company acquires the facility layout design which enables their employees to work with ease and more efficiency. It had been identified that the company ensures to facilitate the employees with better working environment and layout so that to keep them motivated towards their work.  The facility layout of New Zealand Courier Company includes a 3,250m2 storage area and package sorting area, 800m2 of office and amenities and a 925m2 drive through canopy which provides with wide area of conduct the operational activities effectively.  It has been even observed out of the field trip that the building of the company had been designed with the purpose to accommodate business growth with moveable walls which enhances the sorting space by 330m2 specifically (Franceschetti, Jabali and Laporte, 2017, p.413-433).

In addition to this, the office components of the facility had also underwent a complex design phase so that to incorporate all of the operational requirements of the clients. The layout design facilitates the employees with efficient workplace which motivates them to work with their best efforts. It is very important to provide the employees with healthy work environment and surrounding to achieve the set objectives. The flexible design layout also enhances the productivity of the business when required.

The facility layout of Pizza hut lies under the fast food restaurants where the customers are served with the food with either takeaway packages or self services kiosks or counters. It has been identified that the management of Pizza hut had considered many important factors while designing the layout such as colour design, lighting design, ventilation design, exterior space, material selection and the layout design of entire restaurant. The Pizza hut stores are found to be well designed to develop decorum of restaurant having sufficient space to sit and stand for the customers. The stores are designed with the attractive lighting and sitting spaces to attract the customers and make them delight. The innovative and unique design ideas makes the pizza hut outlets achieve different identity out of its competitors (Almanza et al, 2017, p. 321-335).

The location for the stores is decided upon the market segmentation and scopes for the business. It also includes franchisees with more innovative and efficient restaurants by bringing enhancements such as LED lightings, sustainable packaging, efficient kitchen equipments and even waste management approaches. The layouts highly attract the customers and contribute in the enhancement of the sales eventually.

LO4. Discuss performance management and determine appropriate operational performance measures and controls

The organization is using project management methods and operations for managing the supply chain activities more professional and efficient manner.

                                                            

                                                                                              Figure 1: WBS

The manager of courier organization is following the structure for maintaining the supply chain functions as per the culture (Floricel and Piperca, 2016, p. 124-138). This kind of approach is helping to maintain the effectiveness in the working and operations.

Schedule:

Table 1: Scheduling of task

Task Name

Duration

Start

Finish

Predecessors

      Inventory

2 hrs

Thu 18-10-18

Thu 18-10-18

      Warehouse

1 hr

Thu 18-10-18

Thu 18-10-18

3

      Transportation

4 hrs

Thu 18-10-18

Thu 18-10-18

4

      Risk

1 hr

Thu 18-10-18

Thu 18-10-18

5

      Human resource

1 hr

Fri 19-10-18

Fri 19-10-18

6

      Market demand

2 hrs

Fri 19-10-18

Fri 19-10-18

3

      Customer needs

2 hrs

Fri 19-10-18

Fri 19-10-18

9

      Competitor policies

1 hr

Fri 19-10-18

Fri 19-10-18

10

      Internal capacity

1 hr

Fri 19-10-18

Fri 19-10-18

11

      Online ordering

8 hrs

Fri 19-10-18

Mon 22-10-18

9

      Tracking of goods

8 hrs

Mon 22-10-18

Tue 23-10-18

14

      Timing of delivery

8 hrs

Tue 23-10-18

Wed 24-10-18

15

      Safety of goods

2 hrs

Wed 24-10-18

Thu 25-10-18

16

      Customer feedback

8 hrs

Thu 25-10-18

Fri 26-10-18

17

      Analysis of satisfaction

8 hrs

Fri 26-10-18

Mon 29-10-18

19

      Implementation of changes

8 hrs

Mon 29-10-18

Tue 30-10-18

20

The every task manager or head of the department is following the scheduled time for each operation that helping to maintain the inventory and delivery of the products and services on time.

Gantt chart:

                                 

                                                                                        Figure 2: Gantt chart

The Gantt chart is offering information about interrelation with each operation and allocation of time to meet the objectives of supply chain in courier services.    

Network diagram:  

                                     

                                                                                         Figure 3: Network diagram

The network diagram of supply chain operation of courier organization is helping to understand the flow of the operations and effectiveness of the major activities for maintaining the sustainable approach.  

                                            

                                                                                                Figure 4: WBS

The Pizza hut manager is following the structure for maintaining the flow of the operation and proper consideration of resources as well as objectives of the customers (Midler, Killen, and Kock, 2016, p. 21). The structure is offering information about processing of order and final delivery to customers.   

Scheduling:

Table 2: Scheduling of task

Task Name

Duration

Start

Finish

Predecessors

      Online order

10 mins

Thu 18-10-18

Thu 18-10-18

      Off-line order

10 mins

Thu 18-10-18

Thu 18-10-18

3

      Analysis of specification

15 mins

Thu 18-10-18

Thu 18-10-18

4

      Customer needs

10 mins

Thu 18-10-18

Thu 18-10-18

5

      Checking of raw material

10 mins

Thu 18-10-18

Thu 18-10-18

6

      contact with supplier

5 mins

Thu 18-10-18

Thu 18-10-18

8

      Quality assurance

10 mins

Thu 18-10-18

Thu 18-10-18

9

      Utilization

5 mins

Thu 18-10-18

Thu 18-10-18

10

      Development of products

20 mins

Thu 18-10-18

Thu 18-10-18

11

      Distribution

20 mins

Thu 18-10-18

Thu 18-10-18

13

      Analysis of human resources

10 mins

Thu 18-10-18

Thu 18-10-18

14

      Consideration of timing

5 mins

Thu 18-10-18

Thu 18-10-18

15

      Customer objective

5 mins

Thu 18-10-18

Thu 18-10-18

16

      Collection of feedback

10 mins

Thu 18-10-18

Thu 18-10-18

17

      Analysis

15 mins

Thu 18-10-18

Thu 18-10-18

19

      Changes

20 mins

Thu 18-10-18

Thu 18-10-18

20

Proper consideration of scheduled tasks for maintaining the operational effectiveness in supply chain management is helping Pizza hut in preparation and delivery of quality products to customers in proposed time (Mir, and Pinnington, 2014, p. 202-217).   

Gantt chart:

                                            

                                                                                                Figure 5: Gantt chart

Gantt chart is providing information about starting and finishing time of each task that followed by Pizza hut in managing supply chain operation. The proper consideration of these functions is helping to meet the specification and objectives of organization.  

Network diagram:

                            

                                                                                            Figure 6: Network diagram

The network diagram is providing information about the functional approach of organization is development and delivery of the goods and services to customer by following the suture of operation.

Performance management and operational objective are considered to have a direct relationship which enables the business to achieve the desired growth.  The set operational objectives are the short term goals which lead the businesses towards the strategic or long term goals effectively. It contributes in identifying the performances of financial, human and physical resources intending to achieve the long term goals effectively.

New Zealand courier acquires huge number of employees working for different operational objectives. The basic objective of the courier company is to serve the customers with best services and ensure an effective supply chain into the functionalities. The performances of human resources are measured with the help of 360 degree feedback tool which involves the managers and peer members to evaluate the performances of each other. The physical resources mainly include storage, building, vehicles, equipments, etc. within the business. The New Zealand Courier Company ensures that the storage and building area is used optimally for the business operations so that to enhance the efficiencies of the business (Szczepanik et al, 2017, p.38-44). The company makes use of effective software to maintain the database and financial resources of the operational activities.

LO5. Understand capacity management, apply techniques relating to resource planning, and recommend appropriate actions in a given situation

Performance management in Pizza hut contributes in measuring the efficiencies of the operational activities and the result out of the same. The resources such as financial, human and physical resources are been managed by making use of different techniques of performance management so that to ensue effective outcome from the same. The performances of human resources are measured by setting milestones and regular review of the performances towards the set objectives. The milestones help in comparing the performances and avail better results out of it. The financial resources in pizza hut are been managed by using database software tools which evaluates the financial performance of the business and provide with the idea of success or failures eventually (Duman et al, 2017, p.410-422).  The food chain even acquires financial analysts that provides with the fund management and investments effectively. These measures highly contribute in acquiring idea about the performances of financial resources over the business. The physical resources are evaluated on the basis of customer feedbacks stating the change requirements in the designs or other layout.

Feedbacks in service or logistic organisation play an important role in managing the operations and meeting the set goals effectively. The supply chain company includes complete feedback software with real time reporting, in-depth evaluation and instant notification. The deliveries of products and services are concluded with feedback forms stating the reviews of customers focusing specific criteria like time, quality and employee behaviour during the deliveries (Yu and Wu, 2017, p.773-778). It has been learned that New Zealand Courier Company also conducts periodic web surveys so that to avail in-depth ideas about their performances and bring required changes.

The management of Pizza hut had developed an effective web system which includes the website and online ordering system allowing the customers to experience new services over online platform. The feedback systems include questionnaire at both the physical and online portal of the restaurant which makes the customers provide with their reviews towards the products and services. The company focuses upon the feedbacks and reply to the customers with utter satisfactions. It is been ensured that each and every query is been resolved as soon as possible. In addition to this, the restaurant also has tablet kiosks, android applications, instant alert via SMS and emails and customised survey for controlling the feedbacks (Karmeni, de la Villarmois and Beldi,  2018, p.68-72).

Performance management provides the business with an idea about the effectiveness of their strategies and objectives moving towards either success or failure. The performance in New Zealand courier is measured on the basis of customer satisfactions with the products and services delivery. The company mainly measures the costs and standard times in its performances so that to bring required enhancements into it. The net profits of the business is been compared each year so that to extract the differences and bring improvement in the same through effective financial planning. Additionally, it is ensured that the logistics activities are timely completed and serve the customers with higher delights.

The restaurant chain however focuses upon the productivity enhancements out of the performance measurements. The authorities set specific milestones and targets to be achieved so that to measure the productivity levels effectively. Pizza hut provides the employees with higher job satisfaction and growth opportunities which directly contribute in enhancing their productivity with the business (Wingrove and Urban,  2017, p.1-8).

LO6. Apply an understanding of supply chain management, inventory management, and materials management to given situations

In order to enhance the performances, New Zealand courier highly focuses upon the human resources as they are the key aspects that contribute in the achievement of the set operational objectives of the business. The employees of the company are given specific training sessions and knowledge to engage them with the business. The human resources are also provided with adequate promotions, appraisals and recognitions so that to motivate them to bring improvements in their performances more dedicatedly. With the enhancement in the employee performances, the organisation would be able to acquire improvement in the overall business performance as well (Hugos, 2018, p. 15-19).

With the purpose to improve the business performances, the management of Pizza hut focuses upon the products and services along with the human resources. The product innovation and development is highly emphasised in the restaurants. It is been ensured that high quality products are served with enhanced customer satisfactions. The employees are trained and motivated to serve the customers with their needs effectively and ensure positive feedbacks out of the same.

LO5. Capacity management and techniques related to resource planning 

Capacity management is mainly the approach of decreasing and increasing the business capacities to meet the demands. It includes the planning, forecasting, monitoring and the performance evaluations.

The capacity management in this company is used with the casual labour estimating the actual demands and the present availability. The capacity management in New Zealand couriers is been initiated with the concerns over the future requirements of the employees to meet the demands of the customers. The company ensures forecasting and planning of human resources prior to any shortages (Chung,  Ko and Ko,  2018, p.254-261).

In order to manage the capacity in the restaurant, the management of Pizza hut utilises a smart kitchen display which facilitated the customers to attain the real time status of their orders and manage traffic effectively. The capacity in terms of product design is been managed by conducting tests and inspections within the stores.  It even includes product scheduling which keeps track over a well balanced flow of products and services.

The organisation makes use of master production schedule in production planning activities which includes the plans of specific products which could be prioritised. The plan is highly useful in the material and capacity requirement. It contributes in assessing the labour, material and equipment requirements within the organisational framework. New Zealand courier makes use of the Johnson’s rule for scheduling its services and planning for the same (Xiong et al, 2017, p.1-1). It facilitates the company is scheduling the operations or tasks with shortest time at the work centre.

It has been observed that Pizza hut makes use of material requirement planning method for the production planning. This method specifically calculates the materials and the components required for manufacturing end products. However, it could be stated that the company could also apply master production scheduling method which facilitates the businesses in avoiding shortages, high expenditures, inefficient allocation of the resources and last minute scheduling with the food chain (Bouznif et al, 2018, p.173-195).  

The organization is considering the buying decisions on the basis of the internal capacity of delivering the goods and services to the customers. The buying decisions of the organization are majorly about transportation, technical, and safety of the goods and services. For example, the New Zealand courier service management is analyzing the demand of the target market and making decisions according to maintain the supply chain functions. For courier organization, it is essential to maintain the supply chain operation and have vehicles and equipment that could support in the inventory and delivery of the products and services (Christopher, 2016, p. 11). Moreover, the buying decisions are taken by the top management of New Zealand courier according to particular area and response of the customers for delivery of the goods and services.

The courier service organization is taking the support of different vendors for managing the supply chain functions in across the country. The many vendor strategies are helping the organization to maintain the flow of services and offering of the goods and services to the long-distance customers. The proper consideration of vendor requirements, the courier management is asking for new vendors to join the New Zealand courier and contribute in the well-structured supply chain operations of the organization (Wang et al., 2016, p. 98-110). The strategy of having many vendors for managing the courier services is helping the organization to expand the business and meet the customer satisfaction as they are delivering the goods and services on time and long distance areas of the country.

In courier services, the distribution of goods and services plays a critical role. The strong distribution network is required for managing the supply chain functions. The courier organization is using the online tracking option for analyzing the effectiveness and timely delivery of goods and services (Carbonara and Pellegrino, 2017, p. 354-379). Additionally, the organization is keeping the record of each delivery that helps to identify the issues and make the changes in the approach. The distribution of courier services organization is strong and having the positive impact on the business sustainability.

Pizza Hut is having one of the finest supply chain functions that supporting organization to maintain the higher position in the fast food industry globally. For the particular areas of New Zealand, the organization is making the supply chain and inventory decisions as per the market trends and demand of the services at the particular time frame. To make the decision, the organization is analyzing past sales and demand of the products and services and managing the resources accordingly (Melnyk, Narasimhan, and DeCampos, 2014, p. 37). The proper planning and consideration of demand for the products and services are helping the organization to make the decisions and meet the business objectives. For example, the top management of Pizza Hut is involving the data of various stores in the country for making the decisions for implementing changes in the supply.

The vendors of raw material are having significant contribution in the business process of Pizza Hut. The top management of the organization is evaluating vendor services by evaluating the prices and quality of the material. The management is high concern about the quality of the food products and making the three-step evaluation of vendors for buying their products and services (Ross, 2016, p. 14). This kind of approach is helping for maintaining the functional approach in a structured manner and meets the satisfaction level of customers.

Distribution of products and services is having a vital impact on sales and brand value of Pizza Hut. The effective distribution strategy like a contract with local transporters and logistics agencies are helping the organization to improve the sales in New Zealand. The streamline distribution of the products and services is helping the organization to offer products on time and maintain the values to meet the satisfaction level of the customers (Hugos, 2018, p. 19). This kind of supply chain approach and distribution strategy is helping to maintain the sustainability of Pizza Hut.

Conclusion 

The above report concludes with the fact that both the companies i.e. Pizza hut and New Zealand couriers make use of efficient strategies in different segments of operations. It has been found that. Performance management had played important role in identifying the effectiveness of the efforts made towards the achievements of set objectives and reach towards the success. The organisations include specific measures towards the performance management, quality control, product development, capacity management and supply chain management within the business. Moreover, it has been identified that efficient execution of the strategies contributes in the business growth to the great extent.

References 

Almanza, B., Ma, J., Ghiselli, R., Lee, J.E., Behnke, C., Sydnor, S., Park, H. and Kim, J., 2017. Do the physical facilities in restaurants match older Americans’ preferences?. Journal of Foodservice Business Research, 20(3), pp.321-335.

Bouznif, M.M., AlMudbel, J., Almarshed, S. and Ajmi, I.M.B., 2018. A Case Study About Accelerating Expansion of Restaurants Industry in Saudi Arabia. Business Management and Strategy, 9(1), pp.173-195.

Carbonara, N. and Pellegrino, R., 2017. How do supply chain risk management flexibility-driven strategies perform in mitigating supply disruption risks?. International Journal of Integrated Supply Management, 11(4), pp.354-379.

Chen, G., 2017. Lean Supply Chain Management in SMEs: A Case Study of a New Zealand Company (Doctoral dissertation, University of Otago).

Christopher, M., 2016. Logistics & supply chain management. Pearson UK.   

Chung, K.H., Ko, S.Y. and Ko, C.S., 2018, August. Collaborative and Sustainable Network Design in Courier Services. In IFIP International Conference on Advances in Production Management Systems (pp. 254-261). Springer, Cham.

Davis, B., Lockwood, A., Alcott, P. and Pantelidis, I.S., 2018. Food and beverage management. Routledge.

Duman, G.M., Tozanli, O., Kongar, E. and Gupta, S.M., 2017. A holistic approach for performance evaluation using quantitative and qualitative data: A food industry case study. Expert Systems with Applications, 81, pp.410-422.

Floricel, S. and Piperca, S., 2016. Project management between will and representation. Project Management Journal, 47(3), pp.124-138.

Franceschetti, A., Jabali, O. and Laporte, G., 2017. Continuous approximation models in freight distribution management. TOP, 25(3), pp.413-433.

Heldman, K., 2018. PMP: project management professional exam study guide. John Wiley & Sons.

Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.

Karmeni, K., de la Villarmois, O. and Beldi, A., 2018. Impact of control on innovation: the case of franchising. Management Decision.

Kim, P.J., eBay Korea Co Ltd, 2017. Product order service system in the electronic commerce using smart phone and method thereof. U.S. Patent 9,830,639.

Melnyk, S.A., Narasimhan, R. and DeCampos, H.A., 2014. Supply chain design: issues, challenges, frameworks and solutions.

Midler, C., Killen, C.P. and Kock, A., 2016. Project and innovation management: bridging contemporary trends in theory and practice.

Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking project management performance and project success. International journal of project management, 32(2), pp.202-217.                          

Ross, D.F., 2016. Introduction to e-supply chain management: engaging technology to build market-winning business partnerships. CRC Press.

Ross, J.E., 2017. Total quality management: Text, cases, and readings. Routledge.

Szczepanik, T., Skowron-Grabowska, B., Nowakowska-Grunt, J. and Brzozowska, A., 2017. The Application of Computer Systems Used in Logistics Centres by Courier Companies. Management (18544223), 12(2).

Wang, G., Gunasekaran, A., Ngai, E.W. and Papadopoulos, T., 2016. Big data analytics in logistics and supply chain management: Certain investigations for research and applications. International Journal of Production Economics, 176, pp.98-110.

Wingrove, C.A. and Urban, B., 2017. Franchised fast food brands: An empirical study of factors influencing growth. Acta Commercii, 17(1), pp.1-8.

Xiong, Y., Huang, S., Wu, M., She, J. and Jiang, K., 2017. A Johnson's-Rule-Based Genetic Algorithm for Two-Stage-Task Scheduling Problem in Data-Centers of Cloud Computing. IEEE Transactions on Cloud Computing, (1), pp.1-1.

Xuehua, J., 2018. Evaluation of Express Service Quality on Campus. American Journal of Engineering and Technology Management, 3(3), pp.42-46.

Yu, B. and Wu, S., 2017, November. A branch model simulation for express logistics service system evaluation under online shopping. In Systems and Informatics (ICSAI), 2017 4th International Conference on (pp. 773-778). IEEE.

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