The Operations of Krispy Kreme - Paper Example

2021-07-26 11:17:08
7 pages
1729 words
University/College: 
Sewanee University of the South
Type of paper: 
Report
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Krispy Kreme is a doughnut and coffeehouse company chain headquartered in Winston-Salem, North Carolina. This company has undergone through several challenging times, and in the recent years, it has recorded significant growth. Currently, the company runs a total of 1,004 locations in 24 countries all over the world. Some of the very famous products that this company offer includes baked goods, soft drinks, hot beverages, sandwiches, frozen beverages as well as iced beverages. Currently, the company is looking at new possibilities of new offerings and changes which might include selling doughnuts through new attractive means as well as coming up with appealing food and beverages. This report attempts to establish the position of Krispy Kreme in relation to the application of ISO 9001:2015 guidelines. The report also tries to identify the areas or departmental objectives that are yet to be implemented to meet ISO 9001 guidelines.

Current Quality Management Processes

The operations of Krispy Kreme include activities in both the local market and international services. In 2005, the company resolved to reduce some of its outlets in the domestic market. This was in a view to eliminating unprofitable stores to minimize bankruptcy. The company is run by a CEO and is supported by managers who run the various departments in the business. In all of its operation, the company is keen to stick to the requirements set by the Food and Drug Administration. In the international front, the company has several branches which are headed by managers. The company has entered into partnerships with other organizations in their respective countries as a way of increasing the profit ratio of the company through more substantial sales. The brands of these business have several unique elements that have enabled it to create a unique bond with customers. The doughnuts are made from secret recipes which have been in use since 1937 giving the brands a unique taste which customers have loved.

As a way of ensuring customer satisfaction, the company employs the services of quality managers, specialized doughnut makers, product specialists, as well as shift supervisors. Ideally, the presence of all these personnel links the production process which according to Zhang and Bartol (2010) synthesizes the theory of leadership thus creating an empowering environment and allowing for creativity in the production process. To ensure that all the employees are performing at optimum levels, the company offers training to its personnel. However, considering some of the reviews given by former employees, several changes can still be implemented to improve the performance of the company.

According to Zu (2009), one of the elements of Quality Management is infrastructure QM which includes management support plans, customer relationship, supplier relationship, and workforce management. In the facet of leadership, it is imperative to have a unified direction which comes from strong leadership practices consequently ensuring that everyone in the organization understands what the organization is seeking to achieve. Following Glassdoor (2017) reviews, it is noticeable that there are some areas which the company had failed to implement to meet the standards as set in ISO 9001. For example, one of the companys former employee of 8 years, had noted that the companys top managers did not show respect for the work done by some of the junior employees. If they didnt like you, then you wont stay at the company. Another employee also noted that upper management had shown little management knowledge and skills to run the operation of the business.

Evaluation of Company Quality Policy

According to Slack, Lewis, and Bates (2004), quality is consistently conforming to customers expectations. One QM policy which Krispy Kreme Company uses is the Reflex policy. Ideally, this strategy has become a core part of Krispy Kreme business approach which continuously allows for the development of new systems that enables the company to deal with future challenges as well as continuing to deliver high customer services that will essentially introduce the Krispy Kreme brands to new and exciting markets.

According to ISO (2015), there are seven principles which build ISO 9001. On its part, Krispy Kreme meets some of these laws through its QM policy. For instance, the policy meets the pillar of customer satisfaction, engagement of people, leadership, and improvement. However, the policy fails to incorporate other important pillars of process approach. This is because it fails to give an understanding of the activities of the process and the functions of the system. The policy also fails to meet the standards of ISO 9001:2015 in terms of providing a relationship management strategy. Lastly, the policy fails to mention the role of evidence-based decision making in the business process.

The Ideal QM policy which will fit the business operations of Krispy Kreme is: To provide a collectively-developed and innovative, top-notch quality brands that always meet and where possible exceed our business objectives and customer needs, based on the following precepts: leadership, accurate process approach guided by evidence-based decisions. This policy is appropriate for the company in its aspiration to qualifying for ISO 9001:2015 certification. This is because it allows the incorporation of all the principles of ISO 9001: 2015 in the business operation from the early stages to the point of collecting feedback from the consumers that will guide the improvement of the companys brands and services.

Department Quality Objectives

There are diverse business activities, which have in turn demanded the establishment of departments. To achieve the overall objective, every department has formed its strategic departmental quality objectives. For instance, the Quality Management team seeks to ensure that every stakeholder can participate in making the business a success as part of its Total Quality Management (TQM). Process managers attempt to ensure that the input, transformation process and the output are all carried out as they are vital elements in determining the success of the company.

These objectives are smart in regard to meeting the goals of the company as well as maintaining the set standards of ISO 9001:2015. The Quality Management aims to involve everyone in making sure that the business becomes a success. This is in line with ISO 9001 pillar of Engagement of People. Primarily, this principle appreciates the fact that every stakeholder has different skills and knowledge, which could be used to attain the success of the company. For example, the company puts in place various incentives and suggestions from their staff members. The main aim is to give customers that magic moment. On the other hand, process managers seek to ensure that the input, transformation process and the output are handled in a manner that will guarantee success to the business. This departmental objective aligns with ISO 9001 policy which advocates for an understanding of the business activities since these activities all link together and function as a system. It is, therefore, necessary to ensure that the system is consistent thus giving predictable results relating to the quality of the brands developed by Krispy Kreme Company.

As established, each of these objectives is only limited to one facet of ISO 9001. Regarding this, it is crucial to devise SMART quality objectives for these departments. The Quality Management Team can have their departmental aim as Committed to providing quality brands as well as timely deliveries that delights the customers, comply with ISO 9001:2015 guidelines and continually improve the effectiveness of Quality Management System through regular reviews at the required levels. On the other hand, Process Managers can adopt the departmental goal of Ensuring that the department is committed to making effective use of the provided resources for the benefit of the company following the precepts of improvement, leadership, thoroughly researched strategies and stakeholder engagement.

Redesigning the Process

Initially one of the quality related processes implemented by Krispy Kreme was the strategy of having a well-laid out a quality plan which ensured that the products offered by the company met the demands of the business. To further make their outlets more attractive to the customers, the operators ensured that there was sufficient space where customers would sit quietly and enjoy their food. However, this does not fully satisfy the needs of the consumers. As mentioned by Slack, Lewis, and Bates (2004), quality is not only about how the process is conducted. It is also about consumer satisfaction. Therefore to satisfy the consumer and meeting the set standards of ISO 9001: 2015, the appropriate policy for consumer satisfaction. The new policy states that the business operations will be planned in a way that allows quality delivery in terms of quality delivery as well as customer satisfaction.

There are several ways that can be used by a company to implement Quality Management System. The new steps that can be used to ensure QMS will take the shape of the following procedures:

Definition of the objectives

Setting of standards

Ensuring that every stakeholder is involved

Identify the organizations key processes

Incorporate consumer idea in the production process.

-666750361949Customer

00Customer

New Process Management Map

3276600266700039766872462212001133475180975024193501762125033623251695450327659910096500038004751219200Management Responsibility Process

00Management Responsibility Process

1733550781050Resource Management Process (RPM)

00Resource Management Process (RPM)

 

-381006667537147566675

-666750209550Product/Services Realization Process (P/SRP)

00Product/Services Realization Process (P/SRP)

Management system resource needs

11334751523992

02

 

4 3

22955258959850010668001448435Feedback

00Feedback

-5524501400809Customer

0Customer

1800225210185Measurement, Analysis &Improvement

0Measurement, Analysis &Improvement

 

11334751530351

01

 

142875172720Management system Performance Data

Legend

-152400857251

001

 

-1524005524502

2

-Resources

-Product/Services Process Data

3- Continual Improvement

4- Policies & Directives

The new business process is bound to ensure customer satisfaction. This is because this method intends ensure that every stakeholder to the business makes a decision that will touch on the company. By involving the stakeholders, this process ensures that every individual is supportive of the business objectives. This process also provides that the critical processes in the business are identified thus allowing for adequate allocation of resources for those operations which carry a lot of significance to the company. Ideally, the adoption of this new business strategy will make way for the incorporation of evidence-based decision making founded on factual data obtained from the market.

Implementation of Audits

According to Downe, Grace, Martin, and Nutley (2010), performance auditing and inspection of tools used in a business process are becoming critical features in contemporary management. This is because it gives the organization the capacity to assess and determine the level of performance of the company using Key Performance Indicators (KPIs).

Krispy Kreme has several departments which should all work in tandem to make the business a success. The audit process should, therefore, be laid out to assess the performance of the company in terms of meeting the set standards of ISO 9001:2015. The overview of the audit process can follow the following overview.

Preparation of details of for each audit process

Executio...

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