How Business Performance Relies on Effective Policy Making at Kraft Foods - Case Study Example

Introduction

Performance-centric organizations such as Kraft Foods depend on efficiency to ensure high levels of productivity. As an organization located in Northfield Illinois, Kraft Foods has been grappling with distinctive inefficiencies that require changes to ensure productivity. Through the implementation of the diverse changes, the organization is bound to catapult its level of performance. Therefore, to comprehend the distinctive inefficiencies, the Ohno Circle process is a plausible tool for any organization. Therefore, this paper will implement the Ohno Circle process towards development of new strategies for Kraft Foods to improve its performance.

Describe and Chart the Process

First and foremost, Taiichi Ohno is accredited for the improvement of the Toyota operational aspects through the implementation of the Ohno Circle method. As such, the circle method entailed the simple process towards making improvements in the organization (Collins 29). The individual would draw a circle on the floor, stand in it and observe the work being done in the Toyota Factory. Through the approach, Ohno would observe and jot down what was creating value, make a situational analysis of what was causing the value growth and hence result in lasting improvements in the operational facets of the organization.

The Ohno Circle process is a highly effective approach towards understanding the operations of a given organization. From the analysis of Kraft Foods, it is a successful company in the production of snacks and other eateries. Through the implementation of the Ohno Circle process, devised by Taiichi Ohno, the understanding of the operational dynamics of the Kraft Foods Inc. is bound to prevail (Collins 29). As a high-performance organization, the clear-cut comprehension of the organizational mandate is imperative for the implementation of the diverse changes or recommendations towards sustainable operations. Therefore, the Ohno Circle process should entail the following approaches:

The most fundamental role of a manager is the sustenance of continuity especially in the improvement of the system of work. As such, the improvement of the operational environment is to ensure that the workers can work more effectively and even efficiently. As such, from the analysis of Kraft Foods, the focus on efficiency and effectiveness is important in the production process. Admittedly, the production of higher quality and even greater value for the potential customers in regards to the snacks is important. As a manager, on the surface, it is fundamental to evaluate how the company operates, eliminate the wastes in various ways, ask the evident employees who are close to the work environment on how to improve their input and even the evaluation of journals is advisable. Nonetheless, from the analysis of the Ohno Circle process, the most effective and least expensive approach towards improvement is the use of a simplistic method of observation and noticing any aspects of concern at Kraft Foods Inc.

Therefore as the management, I form a small team of individuals who are charged with the role of determining how to fix the distinctive problems at Kraft foods. As a production line that is mechanized, it was designed towards the reduction of stock-outs and reduction of the excess parts inventory, especially in the production process. The use of overhead conveyer belt, scanners and switches are used towards sending raw materials and even replenishing the parts of the production process. The use of the right work stations in the production process is imperative. In the instance that the tote is emptied, it is placed on a return conveyor, and the use of technology forms the most imperative approach towards the running of the different mechanics. The use of scanners is important towards successful outcomes in the production process. Admittedly, the inventory is decremented for the different production stations that had been in many instances assigned the given torte number. Therefore, in the analysis of the operational mandate, focusing on interviews coupled with storing of the production layout is important towards understanding the distinctive inefficiencies. The thirty minutes a day operative focus is advisable towards comprehending the operational dynamics of the organization.

Findings

Kraft foods, from the analysis of the production process, are mechanized. The evident prospect of mechanization entails a daunting environment especially for the management in regards to analysis and evaluation of the wastages evident. However, through the analysis, observation and investigation of the production process, the following findings were evident:

Slack Process in Raw Material Handling

The process of handing raw materials is inefficient at Kraft foods. From the analysis of the organizational operational mandate, it was evident that since the commencement of operations in the morning, the different materials are received in a slow manner. The different suppliers arrive at 7 am and the process of offloading the raw materials and emptying them to the different containers for the production process to prevail takes more than an hour. As such, the communication between the supervisors and the equipment handlers in the offloading process is ineffective with the notions of conflicts evident in the business. Furthermore, there are no well-laid output structures towards sustenance of a more efficient process in ensuring that each raw material is emptied into the right container.

Packaging Process Does Not Implement Effective Quality Management

Quality management in the packaging process is imperative for successful outcomes. Admittedly, through quality management, defective boxes and packs are bound to be seen in a fast and effective manner. Therefore, from the analysis of the company, the evident packaging process requires the implementation of changes in their performance prospect. The packaging process has no quality management structure put in place. The ineffective quality management structure is evident from the manual process of evaluation of the packages by the human resources. An evaluation of one package is enough to give a green light for the continuation of the packaging process at Kraft Foods.

Wastages in Water Use

The use of water is important for successful processing at Kraft Foods. However, from the analysis of the company, there prevails an inefficient use of water evident from the huge sums dumped into the local river. Accordingly, the water usage by the organization is attributed to the different snacks produced. However, with the advent of inefficient piping and management system, much of the water goes to waste.

Recommendations

Encompassing a sustainability approach towards successful business operations is important, admittedly, the sustainability approach, in reference to Bhasin (119) entails the implementation of a more performance centric policy statement. The performance of the business depends on the different approaches used for successful outcomes. Therefore, from the analysis of Kraft Foods, the main recommendations should entail:

Automation of the Quality Management Process

The packaging process of the different products at Kraft Foods should be efficient. As an organization that is construed towards ensuring cost efficiencies and performance success, it is important that it implement a plausible quality management process. Among the evident solutions entail the focus on automation of the quality management process. In the highly technological manufacturing sector, the development of sensors that evaluate the credibility or quality of the different plastic and paper packages has been evident. From the analysis of …there are sensors that are implemented in the packaging process are efficient since they can detect any defects in the various packages at Kraft Foods. Therefore, the focus on automation of the packaging quality management process should depend on the management willingness to financially invest.

Setting of Performance Targets

Performance targets are effective in ensuring performance among the employees is at a higher mandate. Admittedly, from the analysis of Kraft Foods, the starting process of the production activity is inefficient. From the receipt of the raw materials to the commencement of the processing cycle, there prevails inefficiency, especially among the employees. Therefore, to necessitate a more comprehensive and performance centric approach it is advisable that the management implements various targets for the employees (Bhasin 119). The setting up of targets should be based on a reward mechanism. A reward structure should ensure that the employees perform with the knowledge that their efforts will be reward by the top management. However, it is equally important that the management comprehends that there are other approaches to improvement of performance in materials handling. As a key example, in the contractual agreement with the different suppliers, Kraft Foods should set up a standard time for the delivery of the perishable commodities. Through setting up standard or fixed time, the company will ensure that their suppliers are aware of the financial consequences in the instance that they do not conform to the set standards in the contract. Furthermore, through the target setting process, the employees will be aware of the management requirements in their day to day operations (Collins 29). Also, the supervisors should be involved in the decision-making. The supervisors from the observation of their work environment are not motivated in undertaking their different responsibilities. Slack in motivation is an issue of concern that requires the holistic approach of the management. Through management resolve g to involve the supervisors in making the most fundamental decisions, they will feel like they form a fundamental part of the organization.

Recycling Water

Sustainability is important for both an organization and the environment in which it operates. From the examination of Kraft Foods, it is reliant on water in their operations. However, the inefficiencies in their water management form facts of concern for both its internal and external operations. Hence, to sustain a more plausible operational outcome, it is advisable that the management implements changes in their water management approach. A plausible approach is to implement a recycling approach. Through the recycling approach, the organization will re-use its water, reduce the water expenses and reduce its environmental impact emanating from the waste water.

Improvement Ideas

An analysis of Kraft Foods reveals various issues or facets of concern that require changes. Apart from wastages of water, there prevail inefficiencies in their material handling and human resource management. Therefore, through the above recommendations, it is imperative that the management implements viable changes in the operational mandate. Additional improvement ideas should entail:

Encompassing an open communication environment,

Researching on the industry trends especially in mechanization and automation of activities, and

Focusing on social responsibility through reduction on environmental impact

Conclusion

Business performance relies on effective policy making. Through policy formulation and implementation, an increase in profitability and productivity prevails. Therefore, from the analysis of Kraft Foods, it is evident that there prevail performance issues that require in-depth changes. However, through the implementation of the diverse strategies, as a result of the Ohno Circle initiative, proper managerial changes will prevail.