The Role of Operations Management and Managing Quality in Starbucks - Case Study Example

Strategic quality management Student’s name BTEC ID Number Name of the Center Table of Contents Table of Contents 2 Introduction 3 Task 1: The role of operations management in an organization 4 LO 1.1 the importance of effective operations management in achieving organizational objectives 4 LO 1.2 the success of existing operations management processes in meeting strategic management objectives 5 Task 2: The importance of managing quality in an organization 6 LO 2.1 Importance ofeffective quality management in achieving organizational objectives 6 LO 2.2 Evaluation of the success of existingquality management processes 6 Task 3: Be able to plan a strategic quality change in an organization 8 LO 3.1 Strategic quality change to improve organizational performance 8 LO 3.2 Definition of resources, tools and systems 8 LO 3.3 Implications of planned strategic quality change 9 LO 3.4 Systems to monitor the implementation of a strategic quality change 9 Task 4: Implementation of strategic quality change 11 LO 4.1 implement a strategic quality change in an organization 11 LO 4.2 A quality culture in an organization for continuous monitoring and development 11 LO 4.3 monitoring the implementation of a strategic quality change 12 Task 5: Evaluation of the outcomes of a strategic quality change 13 LO 5.1 Evaluation of the outcomes of a strategic quality change 13 LO 5.2 Recommended areas for improvement 13 Bibliography 14 Strategic Quality Management Introduction The profitability of an organization is highly based on the processes of strategic quality change and management as well as process management (Beckford 2003).This paper uses the case of Starbucks so as to highlight the importance of effective operations management and strategic quality change and management in achieving organizational objectives. Starbucks Company operates a monopolistic competitive market structure whereby they have been able to control their inflated prices and still remain at the top despite stiff competition. This is attributable to the fact that the company values quality more than anything else. Starbucks uses its logo, quality as well as various trademarks so as to differentiate its coffee from that of competitors (Flight 2007). Major coffee shops that give competition to Starbucks include Dunkin’ Donuts, McDonald’s, and Panera Bread. Task 1: The role of operations management in an organization LO 1.1 the importance of effective operations management in achieving organizational objectives Operations management is very crucial in an organization when it works properly and performs its duties in a manner that will enhance the organization’s productivity. Operations management is closely related to the overall management process and its functions helps in improving the efficiency of production within the organization. Effective operations management is essential for Starbucks and achieving its objectives. If operations in the organization are not executed properly, chances are that the organization’s profitability will be affected both in the short run and long run. Thus, for Starbucks to achieve its objectives, operations management should be as effective as possible. The company’s top management should be well equipped with expertise in operations management in all the various departments such as finance, marketing, human resource etc. Operations management is related to the production of goods and services and deals with the inputs as well as the outputs that are very crucial for effective operations management. In this case, input comprises of the management of the available resources within the organization such as raw materials, and employees whereas outputs refers to the distribution of goods and services to the customers. Other functions of operations management include: quality management, management control, facilities management, inventory control and management, finance function, and research and development function (Beckford 2003). An effective coordination of these operational functions in the organization helps improve control and quality management, ultimately resulting to increased productivity. Starbucks helps in proving how these operational functions helps in an organization in achieving strategic objectives. Starbucks, formerly known as the Starbucks Corporation is among the world’s largest coffee companies, based in America and operates in more than 20,000 locations across the world. Starbucks’ mission has always been and will be about quality and this is a major expansion strategy that has continued to push out much of its competition. Starbucks has always been passionate about total quality management and ensuring that they ethically source the fines coffee beans and roasts them with great care with the intention of improving the people’s lives, who are the main assets and grow them. LO 1.2 the success of existing operations management processes in meeting strategic management objectives Operations management at Starbucks has helped the company improve its market share and make it less attractive for new entrants in the market. Continues efforts in improving the quality of products as well as customer service are the major reasons why Starbucks has experienced a massive growth in the industry despite the current economic crises. Also, continued investment in research and development has also made the company a success. Other factors that have contributed to the operations management growth of Starbucks include: internal auditing (benchmarking) and reengineering which are key for the company’s leadership in the industry. Internal auditing has been effective for the company and helps in identifying any flaws and weaknesses in the various departments and operations within the organization (Rowden, 2001). Every organization should understand that quality management is imperative and essential in operations management. Company like the Starbucks always focuses on quality and the needs of the customer. The company’s policies and values are based on the importance of maintaining the standards of quality of products and services and this has helped the company in maintaining a competitive advantage within an industry that has other multinational companies such as Dunkin’ Donuts, McDonald’s, and Panera Bread. Task 2: The importance of managing quality in an organization LO 2.1 Importance ofeffective quality management in achieving organizational objectives Effective quality management is very crucial or an organization such as the Starbucks as it helps in achieving organizational objectives in one way or another. Effective quality management plays various roles in the organization which include quality assurance, satisfaction of customers, risk reduction, augmentation in the process of production, improvement in the performance ad works of employees, achievement of strategic objectives, setting standards in line with international quality management standards, maximization of profits, capitalization as well as higher market prices, and the establishment of customer loyalty. Essentially, quality management systems at Starbucks are very helpful in achieving its main organizational objectives which are based on improving quality in all processes (Brue 2005).  Starbucks is a very strong brand that has created its reputation in the public mainly due to the quality of products and services offered. In 2005, it was voted the fastest growing brand in a Business Week Survey. Also, it has many subsidiaries, hence diversification of business. It has very strong relationship with its suppliers (Parnell 2006). LO 2.2 Evaluation of the success of existingquality management processes Various factors can be considered when evaluating the success of the current quality management processes in meeting the company’s strategic management objectives. Such factors include: techniques on evaluation of processes of quality management, evaluation of the quality of culture, efficiency of process criteria, and evaluation of management principles that can sustain success. The process of evaluation of quality management processes involves several steps. The first step is to evaluate the processes in terms of efficiency and expenses involved. This means that the company has to check on the efficiency and expenses of the organization and ensure that they are at optimal. After this, the organization can evaluate the culture of quality within the organization. This can be done through conducting interviews and surveys where the organization can collect data from employees and then analyze its culture on whether people are satisfied with its processes. The third step in evaluating the quality of management processes is evaluating whether the processes are effective for sustained success. The last step involves auditing all the management processes and this is based on the standards of quality such as ISO (Beckford 2003). Task 3: Be able to plan a strategic quality change in an organization LO 3.1 Strategic quality change to improve organizational performance Strategic quality change in an organization such as the Starbucks is based on the motive of improving its current performance. The main steps involved in planning a strategic quality change for improving the organization include: Categorizing the preliminary position-in this step, we look at the current situation in the organization and analyze it in terms of strategic quality of the organization. Measuring and monitoring of the progress- the progress should be checked from time to time to ensure that the progress in quality management is on the right way. Direction check so as to ensure that the plans are in the right direction. In this step, a proper check and evaluation of the procedures involved in quality change improvisation is done for a successful strategic quality change at the end. Try harder so as to attain the desired goals and objectives-the last step is to ensure that the present situation is weighed against the desired situation and check whether the results are in line with what was planned. LO 3.2 Definition of resources, tools and systems Here, the process of strategic quality change can be divided into three major categories which are resources, tools and systems (Stevenson & Sum 2002). Resources For Starbucks to achieve strategic quality change, various resources need to be defined. Major resources include those related to finance and human resource. The financial resource is the very first resource required by any organization when it comes to strategic quality change. Resources are defined on the basis of procuring and utilizing them so as to ensure financial soundness within all processes, hence allow strategic quality change. Resources related to human resource is also very critical for strategic quality change. The human resource is related to human power. Which is needed whenever a change is desired in the organization. Without the employee’s support in the organization, strategic quality change may not be possible. Tools Tools majorly involve the total quality management (TQM) and value manufacturing. TQM relates to quality perspectives while value manufacturing is connected to value engineering, aspects which are related and based upon one another. System Customer satisfaction is the main focus when it comes to the system. The system is based upon whether the organization has effective and efficient resources and tools that can lead to customer satisfaction and loyalty, an aspect of strategic quality change. LO 3.3 Implications of planned strategic quality change The above described procedure for the strategic quality change is examined in three major parts: Quality control-this is the first step in evaluating the implications of the planned strategic change in the organization. If the quality is good, then the organization can try and keep it so as to get maximum success and win the loyalty of customers. Value manufacturing-the quality change is only appropriate in terms of value manufacturing. Change that does not bring about value should be avoided. Operations management- the plan is appropriate in enhancing quality control as well as value manufacturing. This means that operations management integrates these two aspects together. LO 3.4 Systems to monitor the implementation of a strategic quality change Various systems can be designed so as to monitor the process of implementation of strategic quality change at Starbucks. These systems are the product design, process, layout and network designs. In product design, strategic change for the product is measures in terms of its features such as quality and durability. In process design, the transformation of the raw materials into products should be optimal for quality products to be designed. In layout design, a project’s location is measured. The infrastructure in terms of demographics, political conditions as well as geography should be as effective as possible. Network design refers to how processes and products ate assimilated for a successful strategic quality change in the organization (Rowden, 2001; Stevenson & Sum 2002). Task 4: Implementation of strategic quality change LO 4.1 implement a strategic quality change in an organization The implementation of strategic quality change in organization like the Starbucks is based upon various factors such as resource planning, training of staff, action planning and the monitoring and evaluation procedures and criteria (Stevenson & Sum 2002). The process of implementation can be categorized into four major steps as described below: Being aware of the business processes Analysis of the business processes Doing a comparison of business performance Evaluation of the business process so as to close the performance gap By following these steps, the implementation of strategic quality change can be done in an effective manner. The first step basically involves awareness on the presented business process so as to help understand the organization’s present situation. After this, the business process can be analyzed so as to determine its strengths and weaknesses. The third step involves comparing the present situation with the past so as to determine the rate of progress. In this step, anything that is not in line with the process is smoothened. The last step involves implementation of the ladder for tee performance gap to be given its way. After fulfilling the gap, the organization can now be termed as getting maximum satisfaction from the strategic quality change (Rowden, 2001). LO 4.2 A quality culture in an organization for continuous monitoring and development Various quality cultures can be inserted in the plan so as to ensure its continuity and these are: vision, mission, values as well as strategy. The company’s mission must focus on the present situation. Mission is related to the process of fulfilling the goals and objectives of the organization in the most effective manner. Vision is based on the perspectives of the future. The organization should come up with a way to reach the position it wants to be in terms of quality change process. Goals are related to process of acquiring the organizational objectives. The organization should come up with feasible goals that will ensure that strategic quality change is effectively implemented. Strategy refers to the way the objectives are achieved. The company’s mission and vision are achieved through various effective strategies (Brue 2005).  LO 4.3 monitoring the implementation of a strategic quality change In the implementation of strategic quality change, the factors that should be monitored are the: awareness of the business processes, analysis of the business processes, doing a comparison of business performance and evaluation of the business process so as to close the performance gap. All these should be effectively and efficiently monitored so as to ensure that the process of strategic quality change gives the organization maximum success (Stevenson & Sum 2002). Task 5: Evaluation of the outcomes of a strategic quality change LO 5.1 Evaluation of the outcomes of a strategic quality change The main goal of strategic quality change in an organization like the Starbucks is to improve in quality in all processes, products and activities as well as get maximum customer satisfaction. The whole process is based on efficiency and effectiveness. For example, quality change should ensure that various wastes in the organization are abolished and that the flaws identifies through the process of auditing are corrected permanently. Also, quality change should bring about a proper utilization of the available resources so as to create a culture of effectiveness in quality structure as well as the cost structure of the organization. Ideally, the system of quality change is based on maintaining or increasing competitive advantage within the industry and at the same time satisfy the customers. Certain outcomes are brought about by the process of quality change. For example, sustaining customers requires the organization to continuously evaluate the process of quality change and be able to come up with strategies that can increase the loyalty of customer (Rowden, 2001). LO 5.2 Recommended areas for improvement The recommended areas that need improvement so as to align with the objectives of the organization include the mission, vision, organizational strategy, improvement in the process of communication, strategic goals, and the process of monitoring performance within the organization. The process of quality changes brings out the basis under which the current systems can be improved, why a change is needed, how it business processes can be improved, and through what ways can they be improved. The company’s mission, vision, strategy, goals and objectives need to be changed or improved from time to time so as to ensure that they align well with the change needed. Also, the way the organization measures performance can be improved so as to avoid unnecessary flaws and also help get the best of the employees and other resources available for use by the organization. Also, internal and external surroundings of the organization need to be improved so as to get the maximum from the strategic quality change. Other areas that need improvement are: resources, tools, systems, tools, product design, layout, process design as well as network design, which have all been discussed in the paper. Bibliography Antony, J, 2004, Some pros and cons of six sigma: an academic perspective, The TQM Magazine, Vol. 16, No. 4, pp. 303-306. Beckford, J 2003, Quality: a critical introduction. Routledge, Abingdon-on-Thames. Brue, G, 2005, Six Sigma for Managers: 24 Lessons to Understand and Apply Six Sigma Principles in Any Organization. McGraw Hill Professional, New York. Flight, G, 2007, "Grinding out Success Next to Starbucks." Available from www.cnn.money.com. On 15 Mar. 2007. José Tarí, J 2005, Components of successful total quality management. The TQM magazine, Vol. 17, No. 2, pp. 82-194. Parnell, J, 2006, Strategic Management. 2nd ed. Cincinnati: Atomic Dog. Rowden, RW, 2001, The learning organization and strategic change. SAM Advanced Management Journal, Vol. 66, No. 3, pp.11. Stevenson, WJ & Sum, CC 2002, Operations management (Vol. 8). New York, NY: McGraw-Hill/Irwin. Read More