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Unit 6 - Written Assignment

Success through managing quality, safety, customer service and cost

A Walkers case study

Name Withheld

Department of Business Administration, University of the People

BUS 5611 - Managing Projects and Programs

Dr. Alexius Emejom

May 20, 2024

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Success through managing quality, safety, customer service and cost: A Walkers case

study

Walkers, a subsidiary of PepsiCo, stands as the leading producer of crisps in the

United Kingdom. Originally, Walkers began as a prosperous butcher shop established by

Henry Walker. However, the conclusion of World War II resulted in a significant scarcity of

beef, leading to strict rationing and stores running out of stock as early as 10:00 am. To

bridge this gap caused by limited beef production, the company expanded its operations and

began producing potato crisps on a small scale.

In this particular examination, our initial focus is on Achieving Success by effectively

managing quality, safety, customer service, and cost, and identifying the indicators of

success. The organization utilizes a performance assessment tool known as the balanced

scorecard, which provides senior executives with a quick yet comprehensive overview of the

company's operations (Kaplan & Norton, 1992). The balanced scorecard evaluates objectives

and metrics from four distinct viewpoints: financial, customer, internal, and innovation and

learning perspectives. When utilizing the balanced scorecard, it is crucial to closely monitor

the inputs associated with each perspective, as outlined below.

Quality

Walkers is dedicated to delivering the highest caliber of potato crisps to their

customers by sourcing top-notch potatoes. Quaker, on the other hand, takes full responsibility

for quality by actively participating in every aspect of the potato supply chain, starting from

the farmers and extending all the way to the final stage of production. To ensure they acquire

the most suitable potatoes, they provide farmers with pre-selected seeds. They adhere to a

comprehensive approach to quality, where they exclusively procure potatoes with low water

content, and subsequently subject them to a meticulous process of washing, peeling, slicing,
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cooking, flavoring, packing, and loading (Walkers, 2019). Additionally, quality is

meticulously assessed at each stage of production to maintain consistency. Laboratory

technicians ensure consistency by randomly selecting samples and comparing them against a

previously approved gold standard. This practice is also extended to other brands to guarantee

that Walkers surpasses all competition.

Safety

When it comes to safety, there is no foolproof business strategy. However, businesses

must proactively identify hazards and risks and develop risk management plans to minimize

any negative impact on their operations. For instance, Walker's immediate concerns included

noisy machinery, hazardous components, and slippery surfaces caused by the use of oil.

Recognizing the potential risks to employees, Walker implemented measures to mitigate

these risks and established strict safety protocols. If any equipment posed a threat to an

employee, it was immediately removed from the production line, even if it meant potentially

losing business. This exemplifies the prioritization of safety and underscores the

responsibility that falls on each employee. Managers play a crucial role in assessing safety

threats at every stage of production and ensuring that workers adhere to the safety guidelines

outlined in the equipment manuals.

Customer Service

At Customer Service Walker, we prioritize providing excellent customer service to

both our internal and external customers. Our internal customers consist of our dedicated

staff, while our external customers include retailers and the end consumers of our products.

To guarantee a consistent supply to retail outlets, we have a remarkable track record of

delivering 98.5% of ordered items within a 24-hour timeframe. Additionally, our head office

in Berkshire regularly conducts surveys to assess customer satisfaction and consumer

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preferences, enabling us to identify the products that are most favored by our customers.

Lastly, all of our products have a minimum shelf life of 9 weeks, ensuring that they remain

fresh and of high quality.

Cost

In order to maintain profitability, businesses must effectively control costs while

maximizing production. Walkers successfully achieves this delicate balance by prioritizing

both production optimization and cost management. At Walkers, the management of

production and profits takes place at the plant level, allowing for a meticulous examination of

costs. Additionally, they meticulously scrutinize every aspect of the profit and loss analysis,

including factors such as production rejects. This attention to detail informs their decisions

regarding quality control measures to implement.

Key Goals and Measures

Cost

 Goals. The primary objective is to uphold the exceptional quality of potato crisps,

aligning with customer feedback gathered through surveys. As stated in the A Walker

case study (2019), Walkers places great importance on the excellence of its offerings

and recognizes that customers might opt for a different product if they are not

satisfied with Walkers' offerings.

 Direct Measure: Walkers prioritizes the monitoring of processes in order to achieve

substantial revenue and maintain their status as market leaders.

 Indirect Measure: To minimize costs, particularly in relation to waste, Walkers

implements quality policies and conducts step-by-step monitoring.

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Delivery

 Goal. Maintain a continuous inventory of fresh products across all our outlets, in line

with customer demand and consumption.

 Direct measure. efficiency, we strive to fulfill 98.5% of all specific orders within 24

hours of order confirmation.

 Indirect measure: Management at Walkers implements an indirect measure by

assigning a shelf life of 9 weeks to all their products. They carefully monitor buffer

stock and prioritize keeping products in order to effectively handle fluctuations in

sales and ensure timely delivery. (Walkers, 2019).

Quality

 Goal. Achieve cost-effective production without compromising on quality.

 Direct/Indirect measure. This is accomplished through the rigorous implementation of

stringent quality control measures, which help minimize costs associated with rejects

and wastage. By prioritizing exceptional customer service, the company aims to

eliminate any returns or unsold inventory (Walkers, 2019).

Ranking

In my evaluation of this particular case, my top priority would be the prioritization of

safety, as it is an integral aspect of any business. I have personally observed instances where

even minor accidents have resulted in the complete shutdown of a company. Therefore,

safety cannot be undervalued. Following safety, I would place quality control in second

position, as it directly affects both customer satisfaction and cost. Determining the ranking

between customer service and cost is a difficult decision, as these two factors are closely

intertwined. The desires and demands of customers directly influence production costs, which

subsequently impact the overall cost of the final product.

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Conclusion

In order for a plant to become a market leader, it is crucial to comprehend the art of

effectively and satisfactorily balancing the four parameters that have been discussed.

Word count:1,039
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References
Kaplan, R. & Norton, D. (1992). The Balanced Scorecard—Measures that Drive

Performance. Harvard Business Review. [Link]

scorecard-measures-that-drive-performance-2

Walkers. (2019, September 17). Success through managing quality, safety, customer service

and cost. Business Case Studies.

[Link]

walkers/case-studies/11/[Link]