Introduction
Kudler Fine Foods has several important issues in terms of its operations management.
Kudler Fine Foods has made the decision to start contracting with local growers of organic
produce. This will affect Kudler Fine Foods in many ways. This paper will identify those
business processes at Kudler Fine Foods that could be affected by the change. It will also
touch on Kudler Fine Foods supply chain and describe the quality control tools and
performance standards that Kudler Fine Foods would need to put in place to ensure the
effectiveness of its operations.
Business Processes
A process is any part of an organization that takes inputs and converts them into outputs
that, it is anticipated, are of superior value to the organization than the original inputs
(Chase, Jacobs, Aquilano, pg 154, 2005). Understanding how Kudler Fine Foods processes
work is vital to their business (Chase, Jacobs, Aquilano, 2005). There are many factors
management needs to consider when setting up a process (Chase, Jacobs, Aquilano, 2005).
Some of the processes related to this new change are purchasing, quality control and
standards, inventory management and operations systems.
Quality Control and Quality Standards
One important aspect of operations and logistics is purchasing. Although there is no
purchasing department in any of the Kudler Fine Foods stores, standard purchasing
procedures are in place. Each of the three departments from each store determine
requirements for the items sold and their department sells and places purchase orders
directly with suppliers using a purchase order form that is standard between the three
stores. The Department Managers responsibility is to then obtain the best price, quality and
delivery possible. Since quality can be defined as consistently producing what the
customers wants while reducing errors while the customer is awaiting delivery, there needs
to be a Quality Control Unit at Kudler Fine Foods to test the orders and ensure that
purchases go as defect free as they possibly can. There needs to be a quality control
benchmark in place so that the correct protocol will be followed. Six Sigma would be a
good fit for Kudler Fine Foods as a quality and performance initiative measure (Chase,
Jacobs, Aquilano,2005).
Operations Management Systems
Advertising is done in local newspapers for Kathy Kudler and offered in all three stores at
the same time. Kathy confers with her store managers and ensures that the proper
inventory levels are on hand and transfers merchandise from one store to the next if
necessary. Excess inventory is always a concern since it represents company monies being
