This task is a study on organizational examination by determining problems and alternatives for a particular company as a subject matter. The company chosen because of this project is Kentucky Fried Rooster Corporation. In this particular assignment, the present author is required to perform research on the business. The writer will examine and indentify each one of the problems and solutions of the business matching to two theoretical models provided in the course materials or readings. Besides that, in the written assignment, the present author will first quickly explain the objective of this project and determined the elements, factors and issues that link to this research. After the brief explanation, the present author will assess and interpret the entire review on Kentucky Fried Rooster Corporation. Lastly, the present author will draw a conclusion because of this task regarding on Kentucky Fried Rooster Corporation.
Kentucky Fried Hen guidelines the roost when it come to serving chicken. One of many world's largest junk food chains, the company possesses and franchises more than 16, 200 shops in about 100 countries, more than 5, 100 locations are in the United States. The restaurants provide colonel's trademark fried rooster in both original formula and further crispy varieties along with chicken sandwiches, chicken container pies, crispy rooster strips, mashed potatoes plus gravy and potato wedges. Its locations are available operating as free-standing devices and kiosk in high - traffic areas. Kentucky Fried Fowl Corporation grew rapidly which in turn became a open public company in March 17, 1966, and listed in the brand new York Stock Exchange on January 16, 1969. Kentucky Fried Rooster becomes a subsidiary of RJ Reynolds Companies, Inc. now RJR Nabisco, Inc. Kentucky Fried Poultry was bought in October, 1986 from RJR Nabisco Inc. by Pepsi Co Inc. , for approximately $ 840 million dollars.
In January 1997, PepsiCo, Inc. announced the spin-off of quick service restaurants - KFC, Taco Bell and Pizza Hut - into an unbiased restaurant company, Tricon Global Restaurants Inc. IN-MAY 2002, the company announced the acceptance of the shareholders to improve corporate name to Yum! Brands Inc. The business, which had by A&W All American Food Restaurants, Kentucky Fried Rooster, Long John Silvers, Pizza Hut and Taco Bell restaurants, is the world's most significant restaurant company in the group of system products with a complete of 32, 500 in over 100 countries and territories.
Kentucky Fried Fowl possesses various kinds restaurant: the commonest being a dine - in restaurant with a person seating area that has a condiment pub and a drive - through - windows (DTW) for drive through customers.
The competitiveness of the fast - service restaurant industry in the United States impose pressure on these institutions that to simply contain its current consumer basic, an easy food wall socket must offer constant, high quality service. Furthermore, productivity, causing lower costs and higher success.
In past due 1970s, Kentucky Fried Chicken breast became an early on adopter of an excellent management program after discovering the value of taking care of service quality. (http://biz. yahoo. com/ic/56/56325. html, 2010)
Kentucky Fried Chicken's Quality Management Program
Controlling quality in a production company revolves around understanding consumer goals in conditions of products or services and what the establishment need to do to meet those anticipations. Total Quality encompasses culture, frame of mind and organization of the establishment that intends to provide and persists to provide, its customers with goods and services that fulfill their needs. The culture needs quality in all facets of the company operations, desiring to execute perfection and intolerance of flaws. Hence, customer - driven quality, top management management and commitment, worker participation, constant improvement, fast action based on facts and a Total Quality Management culture.
Managing quality operating business includes the intangibility of service results and the existence and participation of customers in the creation of service. The way something process is carried out and service end result will be the two important points of service customers. As a result, quality management in services emphasize on both these factors. For instance, Kentucky Fried Chicken's management requires to regulate not only the flavor, temp and fried chicken's, but also the courtesy and the swiftness of service it gives to its patrons.
Kentucky Fried Chicken's quality management recognizes this basic difference through the use of two complementary programs for quantifying volume :
The quality service and sanitation (QSC) program for judging the quality of service results from the potential of any patron.
The operations facility review (OFR) program for estimating an establishment's process implementation performance against Kentucky fried Chicken's process requirements.
The outcome of the two quality dimension programs are edited in " Today's Kentucky Fried Fowl restaurant quality period record " a quarterly report for senior management at Kentucky Fried Hen.
Kentucky Fried Poultry often uses customer - and market - focused surveys to manage its service quality to be able to comprehend customer's expectations also to access the company's performance against its challengers. The outcome of these research are also edited in the quarterly quality article.
In order to achieve its goal, Kentucky Fried Chicken breast hires a specialist interviewing service to research consumers on the impressions of product and service quality. A consulting company is also occasionally hired to identify important service qualities and uses the understanding of consumer expectations in creating and continually upgrading its quality analysis schemes.
Kentucky Fried Hen monitor customer issues via complaint cards available at all Kentucky Fried Fowl stores and also through letters and phone calls from consumers. Kentucky Fried Poultry also record the quantity and the types of claims different restaurants get.
Kentucky Fried Poultry uses market tracker research to evaluate its performance on important customer service attributes namely, velocity of service, mispacks, courtesy, product quality and value for money spent compared to that of its contests ( such as McDonald's and Wendy's )
Kentucky Fried Chicken's quality management program also stresses constant improvement of processes, staff empowerment and training of personnel to make use of quality management tools and methods. Its quarterly quality report performs an important part in Kentucky fried Chicken's quality management program. Providing data on customer expected needs and Kentucky Fried Chicken's performance permit management to consider swift and immediate action.
Quality, Service, Cleanliness (QSC) Program
Kentucky Fried Chicken breast carried out the QSC program in 1977 and it was designed to assess and evaluate quality at each Kentucky Fried Chicken breast outlet, company owned or franchised, from the customer's view - point. " Unknown Shoppers " unbiased individuals contracted by Kentucky Fried Fowl, assess the quality, service and cleanliness of each outlet. Mystery shoppers carry out a QSC analysis of each restaurant twice per month. They are really well trained to utilize the typical QSC form so that they perform their task within an objective, accurate and and regular manner. To reflect the ever before - changing customer targets, Kentucky Fried Chicken breast often revises and posts the proper execution, however, outlet general managers utilize a shortened version of the same form " QSC alert form ", out daily home - evaluations of their restaurants. Through this methods, managers are able to take immediate improvement activities, such as instructing and supporting employees to carry out their jobs effectively. It also assists professionals to infuse an awareness of patrons expectations among restaurant personnel.
Operation Center Review
Consumers anticipate consistent and high quality products and services in all Kentucky Fried Poultry outlets. Therefore, operational quality is of paramount importance to Kentucky Fried Chicken's success. The aim of the operations service review (OFR) is to aid Kentucky Fried Fowl to attain national reliability, high operating expectations and performance in all its outlets through the utilization of a standardized analysis program. The OFR analysis program steps a restaurant's performance against Kentucky Fried Chicken's Procedure standards.
The OFR program is very similar to the QSC program except that the OFR evaluators are Kentucky Fried Rooster staff. The OFR evaluators are firmly trained by Kentucky Fried Poultry to ensure that they carry out all assessment in an objective, appropriate and consistent way. Restaurant general managers must complete OFR evaluations for his or her own outlets at least once a week. Operating training programs for restaurant staff and preserving facilities, equipment and premises pursuing Kentucky Fried Chicken's operating specifications is essential of professionals.
Drive - Through - Windowpane Test
In the fourth one fourth of 1989, Kentucky Fried Rooster outlets in Texas and Oklahoma claims suffered a decrease in its financial and working performance in comparison to that of other divisions. The profit percentage lowered from 16% to 8%. Kentucky Fried Chicken's performance key customer features, as disclosed by the QSR, OFR, and market tracker surveys, was also hurting. Kentucky Fried Rooster was being placed in the bottom one half of the quick - service restaurant industry in terms of :
Speed of service.
Value for money spent.
From historical sales data, 50% of Kentucky Fried Chicken's total sales amount was derived from the drive - through - home window (DTW) operation. Slow-moving service was considered a significant critical problem for DTW, since speed of service is obviously the most critical aspect of service quality for an instant - service wall plug. The division was also facing competition from new double drive through hamburger functions such as McDonald.
In contrast with the two times drive - through or other major fast service restaurants that used drive - through as a large part of their business, Kentucky Fried Poultry possessed no marketable competitive benefits introduction of services was immensaly damaged by the gradual service, hence, hampering product advancement activity.
Therefore, a remedy was had a need to overcome the issues of slow-moving service, when, as a matter of fact Kentucky Fried Chicken's DTW operation had been fine - tuned over many years and reducing service time was almost impossible. However Chuck Reynolds, then local manager, sought a way to further reduce service time by doing a test at a few restaurants.
Improving The DTW Processes
In the conference whereby the Pareto graph was developed, the team also brainstormed to generate ideas for minimizing hang up time. From the fundamentals of quality management, the DTW employees were the best resources of specific improvement ideas as well as for putting into action them in specific restaurants. Blocker logs were introduced to track record the overlying causes of delays.
Total quality management was vigorously used. The team systematically examined the reasons recorded in the blocker thighs every fourteen days. Pareto charts and fishbone diagrams to personal information the most frequent and important blockers were used by the team. DTW products were challenged and urged to general alternatives for getting rid of the rate of recurrence of important blockers. A fishbone graph was developed to identity three key factors behind slow service issues with headsets, out - of - product condition and poor equipment tiers. Teamwork is evidently manifested when restaurant clubs and DTW employees got together to build up and implement plants for resolving problems in each one of the four restaurants.
After 10 a few months the four restaurants achieved the major goal of 60 secs home windows hangs time. The following are some of the major changes they made to operational types of procedures and facilities grouped under the lessons discovered in the test :
They rationalized process movement and improved equipment layout to get rid of wasted motion and also to reduce service time.
They changed the merchandise mix and features.
Many small process improvements in the end added up to a large improvement.
They used headsets to make customer focus and convert serial activities into paroled ones.
Given the patron's participation in the service process the client should get clear instructions on what he or she is supposed to do.
The restaurants used the timer as an area point for motivating associates. The DTW timer was the most crucial tool in increasing the quickness of service.
they created an atmosphere conductive to problem fixing, established simple procedures so that employees could suggest advancements, and immediately acted on suggestions.
Rigorous training and motivating products through specific or team incentives were secrets to process improvement.
The restaurants made process improvement a means of like for managers.
The team continue to keep an attention a competition.
The Results
The impossible goal of service time of 60 moments was achieved. Business grew significantly after customers experienced the faster service and labor output showed substantial improvement with evident implications for cost performance. Subsequently, the profit margin increased from about eight percent before the test to about nine percent following the test. The QSC and OFR ratings for the test retailers were raised and their performance on the main element customer attributes demonstrated dramatic improvement. As expected, the swiftness of service category confirmed remarkable improvement.
In comparability to the rest of the district, the four test restaurants significantly improved their efficiency during 1991 as compared to 1990 :
They increased customer trades by 29. 5 percent in the total annual DTW customer deals while that of the district the division lowered by three percent and one percent respectively.
They higher sales development by 17. 5 percent while the sales for the district and the department decreased by 0. 5 percent and one percent respectively.
They improved productivity by 12. 3 percent
Kentucky Fried Chicken breast has replicated the functional changes executed in the test at other restaurants and an identical persisting improvement in speed of service and labor productivity sometimes appears. The better performance has resulted from the product quality management program or even more specifically from various functional improvements. Actually, with further operational made since the test, Kentucky Fried Chicken's new record for the common hang time is about 30 moments. (http://www. yumasun. com/news/students-43929-progress-high. html, 2010)
Conclusion
In overview, Kentucky Fried Hen recovery on the rigorousness of the OFR and QSC programs to keep on assessing the grade of both service techniques and end result. These tools are further useful to better the primary processes for attaining improved efficiency. Kentucky Fried Poultry strives to improve its detailed technical specs as the needs of the marketplace evolve and industry routines change. Its experience with the DTW acceleration - of - service test the ideas of process emphasis and constant improvement through empowering its employees will be the foundations of the ongoing quality management program at Kentucky Fried Poultry.
Hence, Kentucky Fried Fowl (KFC) Corporation, runs on the sophisticated program to manage the quality of service it includes to its customers. In the last 1 / 4 of 1989, the south central department of Kentucky Fried Poultry launched a test program in four Oklahoma City restaurants to improve the swiftness of service at its drive - through -window operation. It had been a huge success and the restaurant cut service time by more than half while increasing labor productivity. In addition they successfully outperformed other restaurants in the market of profits, sales growth, and increase in customer transactions. The improved procedures in the test shops have served as benchmarks for other Kentucky Fried Poultry restaurants focusing on for continuous process improvement, while the diminished service time now will serve as the revised specs in Kentucky Fried Chicken breast quality restaurants and management program.
