The principles that Cadbury have for TQM are:
- Making sure that the customers demands are met
- Listening to customers complaints
- Using market research to find out what the customers want
- Making continuous improvements to the chocolate that’s produced.
The method that Cadbury use to monitor the production process is by having supervisors watching the chocolate that’s produced, moulded into shape, and packaged so that any mistakes can be spotted easily, this is to avoid having customers complaining about the chocolate, avoid wastage and that the reputation of Cadbury does not go down.
It is vital that the supervisors do their job properly and efficiently so that the chocolate that Cadbury product will not have any faults and be to the highest possible standard that customer’s expect.
Productivity and efficiency
The productivity and efficiency of the production process depends on the amount of inputs and outputs, for example:
1) if Cadbury had 1,000 workers working for them and the amount of chocolate bars produced (output) totalled up to 1,000, then the output per person would be 1.
This is not acceptable because the output per person rate could be higher due to there being 1,000 people working and only producing 1 chocolate bar each.
2) If Cadbury had 100 workers and the amount of chocolate bars produced were 2,000, the output per person would be 20.
This is good because there is less output and more outputs.
3) If Cadbury had 200 workers and the amount of chocolate bars being produced was 100 then the output rate per person would be about 0.5.
This is not acceptable at all because there are more inputs than outputs.
From the above examples the most efficient for Cadburys and every business is the one when there are less outputs and more inputs being produced.
This is what Cadbury’s do; have fewer inputs than outputs (but enough to produce a good quality product-raw materials, land, buildings) but still ensure that the inputs are of a good quality, and aim to achieve higher outputs (the branded chocolate). This is efficient because Cadbury staff are working to their fullest potential and also gaining outputs to their highest potential. This enables Cadbury to be successful as a business and profits are also made for Cadbury.
Overall having fewer inputs than outputs makes Cadbury successful, however the reason that Cadbury have fewer inputs is due to the staff working for Cadbury being experienced, work to their full potential, the staff’s wages and the new technology that Cadbury have to make chocolate. Those factors would encourage the staff to produce more goods for Cadbury so that the number of products produced is higher than the number of inputs.
The other two examples are not efficient for Cadburys or any business because not everybody in the business would be working to their fullest potential and therefore not producing enough goods to ensure that the business stays up and running making profits.
