Production
The production department produces the products; any activities associated with production are wealth creation. A simple example of wealth creation would be the production of a chocolate bar. The difference between all of the costs of the production and the price of the finished chocolate represents the wealth that has been created. The contribution of all those involved in its development have added value to this process and helped to create that wealth.
In production there has to be an input, which is transformed to an output. The transformation is taken through by processes, these add value to the output such as materials and Labour so that the finished product can meet customer needs. The output could either be a service or a product (in Cadbury’s case). The business will need to have a system to ensure that the production process and the product itself are of constant high quality production. For example Cadbury reduces the amount of food wasted:
The example of Curly Wurly
An example of this is, while Cadbury was producing Curly Wurly (the chocolate bar). A great amount of waste was created. When the chocolate Curly Wurly was cut to size there were little pieces of chocolate that were cut off and thrown away (waste). A member of staff (floor manager) that was cleaning the waste of the product (the little left over of Curly Wurly that were cut off), went to the production department and told them that these little pieces of chocolate that are wasted could be used as another brand of chocolate. This chocolate (waste of Curly Wurly) was then further known as Squiggles.
Primary, secondary and tertiary production,
- help to add a bit more value to something the customers benefits from
- improves the welfare of our society
- Provides us with the standard of living to which we have become accustomed.
For example:
- Primary production, is the earliest stage in the production and is concerned with extracting raw materials e.g. Cocoa
- Secondary production is the second part of production process. It involves process that transforms raw materials from the primary stage into finished product.
- Tertiary production is the productivity activity of the service sector of the economy.
The production department in Cadbury is concerned with the following issues:
- Costs of production
- The condition of the means of production (machinery, etc.)
- Keeping production going
- Health and safety
- Keeping employees motivated
- Keeping up to date with technology
- Satisfying the requirements of customers
- Maximising the use of plant
- Minimising the waste of materials
When Cadbury produces a chocolate it produces it in a Flow Production, which is a continuos process of parts passing on from one stage to another until completion. Units of production are worked on in each operation and then passed straight on to the next work stage. In order to make the production line work smoothly, Cadbury insures each operation must be of equal length and there should no movements or leakages from the line. E.g. hold ups to work in process. Because there is a continual demand for chocolate this process (flow production) is successful.
This is diagram shows a flow of production:
Stage 1 stage 2 stage 3
Machine A’s machine B’s Machine C’s/people
Before production takes place, a brief is done, to find out what to produce? Then it is backed up by primary and secondary research. Then Marketing department basically takes place, “what product should be produced, for what price, where to locate it, “place” and how to promote it”, (Read Marketing). This will help Cadbury to achieve their objective to give satisfaction to customers through selling them a certain product for certain price, will also help them operate in a wide range of markets and Help Cadbury to be noticed through Promotion.
The system that Cadbury produces its products is
(Refer to page 26 and onwards for more specific production.)
Human resources
Human resource is concerned with the whole range of activities to do with looking after the people that work within an organisation and those with whom the organisation comes into contact. In Cadbury, staff members are one of a business’s most expensive and valuable assets. Human resource department plans the manpower needs of the business, recruits not just the people who work but for their qualifications, talent and well motivated; it is also responsible for Health and safety, training of staff and making staff record. Cadbury would use human resources because it is a very big organisation. Human resources would help them meet their objective of developing staff skills. By giving staff subsidised training, staff for Cadbury will be able to improve their skill like gain a degree (mature student) Cadbury does this all and employees the right people for a smooth running of the organisation.
Administration
Cadbury does not really have a main administration department. Each department has its own administration. Each department is responsible for its inputs of information, processing information and out put of information; does its own filing, photocopying, correspondence, mail and telephone calls.
Marketing
The charted institute of marketing defines marketing as:
“The management process responsible for identifying anticipating and satisfying customer requirements profitably.”
The marketing department is responsible for,
- Carrying out MARKET RESEARCH
- Developing the right MARKET MIX
Businesses (Cadbury) carrying out market research to identify customers needs. This can be done by,
- Primary research: asking customers ( new research)
- Secondary research: using existing information
The marketing department is also responsible for developing the businesses,
Marketing Mix. This means that they must get the right:
- PRODUCTS-what features does the product have that make it suitable for the target market? Cadbury adds its logo to the package, and adds a certain quality to the chocolate that the other competitors don’t (recipe) sometimes, this brings satisfaction to the customers.
- PRICE- should the products be priced higher or lower than those of competitors? In local areas, most corner shops sell Cadbury chocolate at the same price as competitor e.g. Cadbury whole nut costs 35 pence, while a Mars bar and Galaxy bar cost 35 pence as well.
- PLACE- where will customers want to buy the products? Cadbury sells its products to shops (business) that deal with beverages and confectionery e.g. corners shops, super stores (Iceland, Sainsbury, Kwick Save, Tesco, Asda, Safeway), petrol station etc. these business are usually visited by customers on a daily bases.
- PROMOTION- where should the products be advertised, to suit the needs of the business’s target market? Cadbury advertises its products on television, Internet, billposter, in beverages and confectionery business by hanging posters.
This would help Cadbury to achieve ones of its objectives, which is “to be the Number one product in a given market”. By achieving this objective it would lead them to achieve the other objective, such as “maximising profit etc. (refer to objective on page 4).
Research and development
The research and development department is the department that researches new products and develops the old products. To remain successful, business must constantly work to create new and better products and processes.
Research-this involves carrying out investigation to come up with new idea, e.g. by carrying out brainstorming, examining competitors products or carrying out research in laboratory.
Development- this involves turning the findings of the research into useful products or processes.
If Cadbury had a mishap with a chocolate, the research and development department would try to correct the mishap. The research and development department must work closely with the marketing and production departments in particular this is because marketing and production are the beginning and end of producing a product.
As you can see from the table above this is the life cycle of the product while being produced.
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The input would be from the Marketing department.
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The process would be from the production department
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The output would be the product or waste
Therefore because there is a mishap from the output, this has to be due to a fault in the input (The marketing department) or the process (the production department)
Management Style
Cadbury who initiate a quality improvement process must incorporate several basic principles into their management style:
- A firm commitment to and support for quality
- A concern for the satisfaction of staff and users of health services
- A focus on problem solving to improve quality
- Respect for staff and their abilities
- A willingness to collect and use data to determine the nature and size of problems and to improve processes
Cadbury has more than one management style. This is so it has the best management. This is in terms of efficiency, training, and knowledge and to focus more on the loyalty of the workers in Cadbury. Cadbury has three management styles, which are:
Autocratic: is the decision-making, made by an individual or a group, without the help or advice of other members of staff.
Democratic management: This is when all members of staff work together as a team. They listen to each other’s inputs of ideas and suggestions. Then as a team they reach a decision. This management style is good for Cadbury because it motivates workers; with having power and decision making and through this it allows them to be involved in the business. For example refer to the Curly Wurly (Refer to the production section, page 8).
Consultative management: This is when all the ideas are received and then analysed. If ideas are found to be achievable and successful by the senior group, then it is taken forward. Since Cadbury is a flat structure, mangers working find that they can consult the level or layers of the organisation before making the decision. However power is still centralised by senior groups, who are at the top of the tall hierarchy (structure). (Refer to Curly Wurly example; Decision was given by a floor manager to senior group, the idea was analysed, they found it efficient and successful so the idea was taken forward).
Paternalistic management: It treats all its employees as a family. It makes them feel that they belong to a big family. It provides it employees; with their needs e.g. free health care, sport activities, and social club. In order for Cadbury to make its employees as part of the business (family) it advises them to have a share of the company.
Cadbury uses all these management style in order to achieve the best of its business (workers, Equipment). Autocratic is used in Cadbury by the managing director (refer to the organisational structure). It uses democratic to motivate the workers to perform good quality work. Through motivating the staff members (workers), this makes them feel valued and part of the organisation. Members of staff work willingly.
Cadburys Management by objectives
Management by objectives is a process of management that emphasises the role of leadership and communications in the organisation and control of the business. It is a method of managing managers rather than the workforce at large. This is how Cadbury is managed.
There are three basic elements in Management that Cadbury uses by objectives:
- The identification of agreed goals by a manager an a subordinate
- The definition of the subordinate’s responsibilities in terms of agreed results
- The use of agreed goals and responsibilities to control the progress of the business
Advantages of Cadburys Management by objectives
- People work better when they have a clear understanding of what they are expected to achieve and how their activities will contribute to the overall objectives of the business.
- The process of deciding on objectives and responsibilities improves communication between manager and subordinate. By improving feedback it helps with future decision making.
- It improves training by making managers aware of their own needs and the training needs of subordinates.
- It provides opportunities for growth and development.
- By setting identifiable, short-term targets it increase an individual’s sense of achievement and provides opportunities for recognition
Disadvantages of Cadburys Management by objectives
- The assessment of objectives can appear judgmental and threatening if senior management lack the necessary interpersonal communication skills.
- When unrealistic objectives are set the resulting failures can be demotivating
- Management of all levels must be convinced of the value of the exercise otherwise it will become a meaningless routine
In Cadburys case, members of staff are the building blocks of organisations (Cadbury). They can be organised into working groups and given structures to operate within, but unless they have the motivation to work within those structures they will, either consciously or unconsciously, adapt to their own needs. It has been pointed out that business exists for, by and because of people (staff members). A person is more complex than the most sophisticated techniques and technology employed in the business world. Therefore Cadbury has to insure that its members of staff are motivated to work to their maximum ability, have a clear understanding of what they are expected to achieve and how their activities will contribute to the overall objectives of the business (refer to advantages of Cadbury management by objectives). Cadburys management style helps it to achieve its basic principles into their management style (refer to management style)
Culture
Cadbury is a mixture of Cultures such as:
Role culture is doing a job that is very important to the organisation, it is having power over a group (refer to the organisational structure which indicates that Cadbury has role culture because it has many management directors that have power over many groups). This job is an internal job of the organisation it is controlled by having procedures and rules that member of staff should not break or they will lose their position in the organisation. Relating this to Cadbury, marketing directors, who are in charge of market research for new product such as a chocolate, this information (research) has to be confidential.
Power culture is a business being dominated by an individual. The Management director dominates Cadbury, (refer to the organisational structure)
Task culture focus on getting the job done. Groups or teams within this cultural are not fixed but are made up of individuals brought together to achieve a specific task. Cadburys production department has a task culture. It works as a team to package the chocolate. Packaging the chocolates is done as a team. A member of the production team packages the chocolate in foiled rapping, and then the chocolate is passed by machinery to another member of the production team who packages the foil chocolate in boxes. These boxes are then stacked in many counties on a machine. These stacks are the rapped with cellophane, so boxes don’t fall off. Finally these stacks are taken by another member of the production team using machinery to the storage.
Person culture places the emphasis on the individual rather than the organisation and its objectives. For example if any member of staff has any suggestions for improvement, their suggestions are taken to account and if successful they will be used (refer to the Curly Wurly example on page 8).
Cadbury’s Culture arises from the traditions, beliefs and values of the Quaker family. This is how Cadbury adopted the paternalistic management. It includes religious beliefs, attitudes towards alcohol, the food we eat and the importance we attach to family life. The Quaker‘s cultural values are very strong and can impose important constraints on the business activity. For example, Cadbury finds, it would be unwise to try to sell products that are seen to insult religions or people, and it would be foolish to try to make people adopt working practices that are disapproved of by the cultural grouping (Quaker). The reason why Cadbury is successful is because it makes best use of its opportunities, which therefore allows decision making understood.
Organisational structure
This is Cadbury’s brief organisational structure.
The layers of Line Managers and the layer Clerical Support assistants are broken on further there are more. There is just not enough space. This structure is hierarchical.
This is a diagram of the downward flow of communication in line organisation.
Organisational structure
Cadburys type of organisational structure is between hierarchical and flat structure.
Flat structure does not have many layers, which means information is sent quickly; with less complication or misunderstanding; therefore it produces the correct result. Due to having a Flat structure communication is easier {clear information, understanding} between each layer, therefore when decisions are made, they will be specific to advice/order instructions.
Hierarchical structure is based on distinct chain of commands from Managing director to Clerical Support assistants (according to Cadbury). Decisions are made at the top and pass down. Such organisational are usually based on clearly defined procedures and roles.
Cadbury organisation is based on more democratic. Decisions are made as a result of a consultation process involving various members of the organisation (Cadbury). Ideas would be discussed and thought through collectively.
Within Cadbury organisation we can find a Democratic structure, Because Cadbury tends to be found in situation were it is felt to be important for all members of the organisation to understand what they are doing, were decisions require individual initiative, and where member of staff need to work as a team
How management style, Culture and Organisational structure interrelate
Management style, culture and organisational structure interrelate together in Cadbury because they all work together to help the business to achieve its objectives; in order to lead a successful business.
Cadbury has strategies for the organisation, continually to motivate members of staff to support this process, and market change within the organisation.
Management style, culture and organisational structure interrelate together in Cadbury because they all work together to:
Develop Strategies: Cadbury’s good management involves long-term or sometimes strategic planning. Without members of staff (employees) at Cadbury having a clear idea of Cadburys goals, employees don't know where the Cadbury is going, or the best means to achieve the goals. An institution needs to define where it's going (the vision), why it's going there (the mission), and how to get there (the strategies). It will then be easier to use this process to work cohesively towards organisational goals. Tools in this section for helping you develop a coherent strategy for your organisation include the affinity technique, force field analysis, SWOT analysis, and strategic analysis. Due to this employees at Cadbury would feel they are part of the organisation.
Marketing Change: Quality improvement is about continued readiness to make changes towards improvement. However, every change of attitude or practice implies advantages and disadvantages. For people to accept a change, the advantages always have to be greater than the disadvantages. To promote the idea of change, you need to market its advantages. Tools in this section that will help you market change include developing a marketing plan, stakeholder analysis, and negotiation techniques. An example of making changes towards improvement, is when Cadbury creates a new chocolate bar; for instance the chocolate bar, Fuse. It was the highest selling chocolate in the year 1996. People accepted the chocolate because it was different, which means that Cadbury filled a gap in the market. It also reached the consumer via promotion strategies. Every promotion had a meaning, for example the bill board promotion for fuse used a motto that was confusing. That’s what Cadbury were trying to do confuse the consumers, so that they repeatingly, think of the motto to try understand it and what this is doing is reminding the consumers of the chocolate Fuse.
Motivating People: Motivating people to perform to the best of their capabilities and in the best interests of the organisation are a huge task. Important elements that Cadbury uses in motivating their includes leadership, clear organisational and individual goals, rewards based on performance of staff, and participatory supervision. Cadbury helps to motivate their staff also by including developing a supervision visit plan, effective meeting management, and techniques for solving conflicts.
Ict and Communication
Communication- involves sending a message between a “sender” and a “receiver”.
The communication channel is the route by which a message is sent between the sender and the receiver. The communication channel can involve a range of communication media. A communication medium is the written, oral or technological method used to communicate a message. For example a manager wishes to notify an employees of a pay rise:
Types of communication:
Communication can be
- Internal or external
- Formal or informal
- Downward, upwards or horizontal
- Ristricted or open
The type of communication that Cadbury uses are e-mail,fax,telephone, mobile communication(text messges),laser,vidoe confrencing (allows the business to have virtual meetings), confrence calls,file trasfer,
Website internet
Intranet (internal communication)
The advantages of Ict upon communication internal and external communication at Cadbury are:
- Fast (compared to other methods such as writing a letter)
- Can be more accurate (easier to correct errors)
- Allows people to use the information quickly and efficient
- Can get access to a wide range of information easily
- Easy and cheap to store information
- Can access information where ever you are in the world (and can communicate with people where ever they are)
- Often cheap to access
- Quality of information can be better
Disadvantages:
- Messages can be misunderstood
- Can take time to clarify misunderstanding
- Chance that messages can be sent to the wrong people
- People can be unfamiliar with the system
- Employees may need training (costly)
- Employees may feel de-motivated/ stressed by new technology
- Messages can be held up due to technical problems
- Lack of visual communication can hinder the quality of communication
- Employees can suffer from information over load
Ways to avoid some of these disadvantages are by
- Training staff
- Use face to face communication (maybe through the performance management system)
- Make sure employees feel they can get to see their manager
- Have technical support
- Help employees, by satisfying their social needs e.g. through social club
- Make sure employees are only given training that will be useful.
ICT affected Cadbury’s workplace international as a company because it has made communication much simpler and easier; Jobs that took a lot of time, effort and money are a lot simpler now with technology, like the Internet.
Cadbury uses ict as a mean of external communication, when it wants to cummunicate between the organistion and the outside world. Cadbury has a public image and this conveys a message which affects everyone who has dealings with it e.g. cutomers, shareholders, suppliers, compitetors, government, communities, international agencies, enviromental groups. Cadbury being able to provide a positive image through external communication creates a better external environment. Successful manipulation of public relations convinces others that Cadbury is worth dealing with ,buying its products (and might provide it with a considerable strategic and competitive advantage). Cadbury has open information for example it has a website that gives members of the public formal (none sensetivte ) information about the business.
On Cadbury’s website you are able to find information on cadbur. The information are set out in topics then isues for example one topic is Cadbury today it has market information,information it has for schools and third party links which give you more information that you might need. It also has topics such as cadbury’s learning Zone , this is where you learn about cadbury and now more aboout its history, your able to contact them asking them any questions relating with cadbury.
Cadbury uses ict as a mean of internal communication, when it wants to communicate between members of the organistaion. The reason why cadbury uses internal communication is to transfer information or intiate some action. Cadbury uses a software package called Lotus smart suite internally, this software package is like a personal organiser that allows the majority of staff to book in all important dates and information. Using this lotus program makes arrangement of meeting simpler and easier, to see if other members of staff are free. Cadbury as an internal business can uses this program to find out any information worldwide, for example if a member of staff that works for Cadbury in Britain wants to find information about another member of staff that works for Cadbury somewhere else in the world, they can.
In cadbury internal communication may flow:
Downward- from higher to lower levels. Say for example the managing director wanted to speak to Clerical support assistance to change the style of work.
Upwards- from lower to higher levels. E.g. Clerical support assistance gives suggestions to senior manger. (Refer to the incident of the Curly Wurly and squiggles).
Horizontal-between people and department ate the same level
Multi directionally- in all directions (quality circle).
They also use internal communication so that they can communicate restricted information that is sensitive to Cadbury (the business) for example regarding a new chocolate bar that Cadbury is creating. This is so that member of the public and competitors are restricted to the informal information.
The production process
Production involves converting inputs in outputs using a production system. This is a table showing how Cadbury uses the production system.
In detail this is what Cadbury does to produce chocolates.
When the sacks of beans reach the chocolate factories, they are sampled to confirm their quality. They are then removed from the sacks and stored in large silos under carefully controlled conditions of temperature and humidity.
The inside of a chocolate factories such as Cadbury, they are quite an extraordinary sight. The beans are moved and processed using very large industrial machines.
The first step in processing is cleaning. The beans are brushed, vacuumed and filtered to remove all extraneous materials. Some types of beans are roasted first and then cracked open to extract the cocoa particles (commonly called nibs). Others are cracked open first and then roasted. The roasting continues until the water content is reduced to less than three percent.
The nibs are then ground. The grinding process produces enough heat to cause the fatty portion of the nibs to liquefy. The liquid part is called cocoa butter; the dry part is cocoa powder. Actually, during this part of the process, the powder is coated by the butter to form a pasty mixture called chocolate liquor. The word "liquor" is just chocolate manufacturers' jargon; there is no alcohol at all in this liquor. This mixture is then pumped through heated pipes to heated holding tanks before it is further processed.
The next step is to separate the powder from the butter. This is done in huge heated hydraulic presses. By controlling the temperature, hydraulic pressure and duration of the process, the desired amount of fat is squeezed out. The remaining cocoa (still containing some fat) is extracted in the form of hard round disks about two inches thick and resembling the wheels of a railroad train.
The liquid cocoa butter is filtered to purify it and is then allowed to cool into yellowish blocks. Some of it will be blended back into the chocolate later to achieve the desired texture and taste.
The solid chocolate is then ground up and treated with an alkali to neutralise the acidity. The processed chocolate is then again ground up, this time into a finer powder.
At this point, various ingredients are added, depending on the type of chocolate desired. These include:
Unsweetened or baking chocolate made from the chocolate liquor that is allowed to cool.
Increasing amounts of sugar are added depending on whether the end product is to be extra-bittersweet, bittersweet or semisweet. Some cocoa butter is also added back into the chocolate at this stage, depending on the flavour and texture desired. Small amounts of vanilla are added to enhance flavour.
These different types of chocolate can be made into milk chocolate by adding varying amounts of milk solids or powder.
White chocolate is produced by adding milk solids or powder to the pure cocoa butter.
Lecithin (an extract from soybeans) is usually added in very small quantities to make the chocolate uniform and pliable.
Sometimes finely ground roasted hazelnuts and/or almonds are added to produce a form of chocolate called gianduia.
The next step is conching. This is a stirring and kneading process performed with large mechanical devices in large vats - up to several feet in diameter. Depending on the outcome desired, this process might go on for several hours or as many as five days. Obviously, the longer it goes on, the more expensive the process. As you might expect, the less expensive products are more likely to have a shorter conching period. At appropriate times in the process, additional cocoa butter may be added to the mix to control the texture, the melting temperature and the taste of the chocolate. One of the main effects of the kneading action is to reduce the size of the crystals embedded in the chocolate. Short conching period’s result in chocolate with crystals which, although small, are still noticeable if you pay attention to the feel of the chocolate on your tongue. The longer the conching, the less likely you are to notice that slightly rough feel. The finest chocolates feel totally smooth on the tongue.
When the conching is completed, the molten chocolate is cooled down slowly to prevent re-crystallisation. Sometimes the chocolate’s temperature is elevated for a short period of time and then cooled further to minimise the reformation of crystals. This process is called tempering. Finally, the chocolate is poured into large moulds and cooled until it becomes solid. The most carefully conched and tempered chocolates with the highest cocoa butter content are usually selected to be used as the coverings (referred to in the industry as couverture) for high quality chocolate candies.
Depending on how the chocolate is to be used, further processing is performed in a variety of ways.
This is a diagram to illustrate main process in Cadbury s chain of production. The diagram illustrates pictures of the production with an explanation describing it.
The raw materials are transported to the mixers. By means of a computerised weighing installation the different recipes are composed. The main raw materials are sugar, cocoa powder and cocoa butter, cream. After a specified mixing time the dough is transported to the extruding department.
Extruding the chocolate
When the dough leaves the mixers, it is transported to the extruding department. A whole battery of extruders alters the dough to long strings of chocolate. The chocolate has to be cooled down
Into the cooling tunnel
After the extrusion of the chocolate dough, there are two things that need to be, cooling the strings of chocolate and breaking them into little pieces.
In the cooling tunnel the product is cooled down. During the transportation of the cooled strings, the strings are broken into smaller pieces. The chocolate is still rather dim. It needs to become shiny and attractive, which is done during the glazing of the.
The chocolate is then packaged
Expedition
When the product is packed, it is time to distribute the products to the place where at the time our clients want them to be. Transportation and warehousing of a natural product like chocolate are done under specified conditions. These conditions can be found on the level of this site concerning the different ranges of products.
These are requirements that Cadbury use:
1. Temperature
The most ideal temperature to store and transport is between 18ºC and 22ºC.
2. Handling
Although the packaging is designed for regular transport, careful handling must be used to prevent the occurrence of damage.
3. Humidity
The ideal humidity to store and transport is less than 65%. Do not store in areas with a high humidity. In any case try to prevent direct contact of water with the cardboard packaging and our products. Do not expose to wet environments.
4. Sunlight
Over-exposure of chocolate products to sunlight is fatal for the quality. Do not expose cartons to direct sunlight.
5. Storage conditions
Dust
Though the cartons are sealed, exposure to dust and other contaminates is possible. This is why Cadbury try to avoid storage of any cartons in dusty conditions.
Cadbury adds value to chocolate products, in three procedures:
- Producing a physical change
- Creating a service
- Meeting the requirements of customers
After each procedure the value of the output product increases than what the inputs where. So every step that is taken to produce the chocolate (product) adds value to it from its original value.
Producing a psychical change
In order to produce a psychical change, there four components (that Cadbury) take in account:
Land: which is the place or site where Cadbury will operate the business
(Finance, Production, Human resources, Marketing, Administration and Research and Development)
Labour: are the members of staff (human actions either by hand or brain)
which help to operate the business as an overall
Capital: is the machinery, tools, equipment, buildings, transport.
Enterprise: is the risk taking Enthusiasm, motivation, and commitment of
introducing the chocolate (product) in the market. It’s the innovation, provided by the entrepreneur (manager).
Refer to the diagram that illustrates main process in Cadbury, page 27-29 every step there adds value to the chocolate (product).
Creating a service
Value is added by creating a service. What I mean by this is that the service and effort put in production, the precision and expense of capital and the amount training needed for Cadbury staff to produce these efforts add value.
Meeting the requirements of customers
The features of the chocolate (product) that are important to customers and satisfy them are:
- The product identity which is the Cadbury
- Quality Product performance and reliability- produces good quality chocolate
- aesthetic- the appearance of the chocolate (product)
- Price- the chocolate price is within the price ranges of competitors and sometimes its cheaper for example the Cadbury dairy milk is 30 pence in normal retail stores while galaxy the chocolate bar is 35 pence
Quality
Quality refers to features of a product that allow it to meet customers expectations. A product is often refereed to as a good quality if it is “fit for purpose”.
To ensure good quality, Cadbury requires:
- Quality raw materials
- Quality production process
- Quality design
Through these stages Cadbury adds value.
Cadbury uses many processes to achieve quality. It uses quality assurance, control and total quality management to make sure that its quality standards are met. All of these quality processes tie in together.
Quality assurance places great emphasis upon the seller to deliver goods of appropriate quality, so that the receiving organisation is saved the time and trouble resulting from defects.
Quality control is inspecting or testing the quality of the product at various points in the manufacture of a product or delivery of service.
Total quality management is a method of establishing production faults through a philosophy of continuos improvements in every process of planing, production and service.
In order for Cadbury to achieve quality assurance, it must achieve:
- Product perfection, It does this by taking samples from various batches of chocolate and analyses them, to find out if they meet quality standards. If they do not, the whole batch is brought back and not sold, it is further on analysed, in order to find the fault.
- Process quality, it does these by regularly checking that all the production processes (machines) are working efficiently.
In this stage Cadbury uses quality control by inspecting or testing the quality of the product at various points in the manufacture of a product or delivery of service.
- Human resource quality, Cadbury insures that it trains all of its staff to be aware of quality issues and to work towards quality improvements, (to give any suggestions for improvement, e.g. Curly Wurly example)
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Consumer satisfaction, Cadbury does this by get results from primary and secondary research. Before releasing a new chocolate to the market, Cadbury further on analyses its chocolate by getting numerical members of the public to set a process called testing, which is putting these members of the public in a room to eat the new chocolate. Then specialists analyse the members of the public’s reaction to the chocolate and also the members of the public fill in a form, analysing the chocolate. Then these information’s gathered are apart to sum a result, if the new chocolate will satisfy the consumers.
Cadbury using quality assurance and control covers the total management quality. Total, as involving everyone (members of staff) and all activities in Cadbury. Quality, as in meeting customers requirements. Management, as in quality is always managed continuously.
Every step that Cadbury takes for quality adds value top the product. If Cadbury never used any of these quality processes faults in the product will occur and will give the compan
Benchmarking involves Cadbury to carry out research to discover the best methods of production and adopting them.
There are five main steps involved in the benchmarking process:
- Identify the aspect of the production that are most important
- Choose a business that is really good at it
- Carry out research in to their practices
- Work out how their practices can be used in Cadbury
- Implement them
Cadbury manages to improve quality by benchmarking. Cadburys benchmarked walkers for the packaging. Cadbury used to package there chocolate in two layers, foil then paper. Now they package it in air tight foil packing. This is an advantage because it keeps the chocolate fresh, protects it dust and it keeps the flavour for a longer period of time. Plus using only one layer it is more money efficient and it means they are environmentally friendly because they don’t use paper for packaging only cardboard boxes which the use to transport the products to customers (stores).
Quality circle is a group of employees who met together regularly to identify quality problems and come up with solutions.
Quality circle is workers who are involved in carrying day to day jobs. In Cadburys case, in chocolate manufacturing, employees working on the production line could be members of a quality circle
What I would suggest the key to improving quality in Cadbury is to improve processes that define, produce and support products.
All people work in processes.
People
- Get processes "in control"
- Work with other employees and managers to identify process problems and eliminate them
Managers and/or Supervisors Work on Processes
- Provide training and tool resources
- Measure and review process performance (metrics)
- Improve process performance with the help of those who use the process
The effects that that’s these strategies will have on processes must be managed and improved! This involves:
- Defining the process
- Measuring process performance (metrics)
- Reviewing process performance
- Identifying process shortcomings
- Analysing process problems
- Making a process change
- Measuring the effects of the process change
- Communicating both ways between supervisor and user
TQM Compared to ISO 9001
ISO 9000 is a Quality System Management Standard. TQM is a philosophy of perpetual improvement. The ISO Quality Standard sets in place a system to deploy policy and verifiable objectives. An ISO implementation is a basis for a Total Quality Management implementation. Where there is an ISO system, about 75 percent of the steps are in place for TQM. The requirements for TQM can be considered ISO plus. Another aspect relating to the ISO Standard is that the proposed changes for the next revision (1999) will contain customer satisfaction and measurement requirements. In short, implementing TQM is being proactive concerning quality rather than reactive.
