Internal Processes Of A Company Contributing To Its Success

Internal Processes Of A Company Contribute To The Companys Overall Ef

Internal processes of a company contribute to the company's overall effectiveness. Identifying ways to improve internal processes helps build a highly efficient organization. Root causes need to be identified. Methods to identify root causes may require substantial analysis or be apparent based on a major problem within the organization. For example, review the assigned article, "Inside Chipotle's Contamination Crisis: Smugness and Happy Talk about Sustainability Aren’t Working Anymore," from Bloomberg Businessweek.

Research several other sources regarding Chipotle's food contamination crisis. Create a flowchart of the original supply chain and how Chipotle supplies each of the restaurant chains. Provide your own commentary. Create another flowchart that suggests a new way to supply the restaurant chains. Review another restaurant chain that does not currently have a major public problem but would benefit from evaluating its manufacturing process to improve competitiveness.

Specifically, provide recommendations on how to improve the company's current supply chain. Create a flowchart to illustrate your recommendations. Provide a summary of how you came to your recommendations. Include any formal strategies and informal thought processes used to reach your conclusions. Provide rationale for either using or not using Six Sigma methodology, ISO quality benchmarking, lean supply chain processes, or TQM.

Submit all three flowcharts and commentary for each flowchart in a single document. Provide three to five resources to support your response. While APA format is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines.

Paper For Above instruction

Introduction

The internal processes of a company are fundamental to its overall effectiveness, impacting efficiency, quality, and customer satisfaction. In the context of Chipotle’s recent food contamination crisis, analyzing and improving internal processes, particularly supply chains, becomes critically important. This paper explores the original supply chain of Chipotle, proposes optimized alternatives, and applies critical evaluation to another restaurant chain. Additionally, it discusses the strategic considerations behind the suggested improvements, including the relevance of methodologies like Six Sigma, ISO standards, lean processes, or Total Quality Management (TQM).

Original Supply Chain of Chipotle

The initial supply chain of Chipotle involves sourcing ingredients from multiple suppliers, often through distributors, who deliver fresh produce, meats, and other raw materials directly to individual outlets or regional hubs before they reach the restaurants. Typically, the process includes farm producers or suppliers providing ingredients to distributors; distributors then deliver to regional distribution centers; and finally, restaurants receive supplies from these centers. This multi-tiered approach ensures fresh ingredients but also creates complexities that increase risks of contamination, delays, or quality lapses.

Flowcharts for understanding this process reveal that multiple intermediaries can introduce vulnerabilities, such as inconsistent quality control or delays in delivery. The original supply chain, therefore, presented risk points that could have contributed to the contamination issues, especially when oversight and hygiene standards declined or communication gaps emerged among stakeholders.

Commentary on the Original Supply Chain

My evaluation indicates that fragmented supply chain control contributed significantly to the contamination outbreaks. Each layer of suppliers and distributors represented potential points for deviations from safety protocols. The complexity of managing numerous suppliers and logistics partners likely hampered rapid response during crises. Thus, enhancing transparency, integrating more rigorous supplier audits, and streamlining logistics could improve safety and efficiency.

Proposed Alternative Supply Chain

A redesigned supply chain emphasizes vertical integration and tighter quality control. For example, directly partnering with select farms or establishing centralized processing facilities would minimize intermediate steps, reducing contamination risk and improving traceability. The flowchart illustrates a simplified process: farms directly deliver to Chipotle-owned processing centers, which then supply individual outlets. This model enhances oversight, quality assurance, and responsiveness.

Recommendations and Rationale

To bolster the supply chain, I recommend implementing integrated quality management systems, adopting lean logistics to reduce waste and delivery times, and utilizing real-time tracking technology for inventory and compliance monitoring. These measures will foster agility and ensure food safety standards are met consistently.

The rationale behind these recommendations stems from the need to minimize risk points identified in the original chain. Additionally, adopting lean principles helps eliminate inefficiencies, while real-time tracking enhances visibility and accountability.

Regarding strategic methodologies, I advocate for the integration of TQM and lean supply chain practices. TQM fosters an organizational culture prioritizing continuous improvement and quality, essential in food safety management. Lean processes reduce waste and enhance responsiveness, which is vital during supply disruptions or contamination issues.

The application of Six Sigma could be beneficial in statistically analyzing data related to process variations and defect reduction, particularly in critical control points. However, given the urgency of food safety concerns, lean and TQM approaches may provide more immediate and culturally integrated solutions. ISO standards, especially ISO 22000 related to food safety, can serve as benchmarks to ensure compliance across the supply chain.

Application to Another Restaurant Chain

Consider Domino’s Pizza, which maintains a generally positive public image concerning food safety and has ongoing opportunities for process improvements. By evaluating its manufacturing and delivery processes through flowcharts, Domino’s can identify inefficiencies or risk points, such as packaging, delivery times, or ingredient handling, and implement targeted improvements aligned with lean and TQM principles. For instance, optimizing ingredient storage and delivery schedules would enhance freshness and reduce waste, fostering better customer satisfaction and competitive advantage.

Conclusion

In conclusion, analyzing and redesigning supply chains through strategic methodologies like lean processes, TQM, and data-driven tools like Six Sigma can significantly improve a company's effectiveness and safety standards. For Chipotle, a streamlined, vertically integrated supply chain coupled with rigorous quality systems can address contamination issues. For other chains like Domino’s, process improvements offer opportunities for efficiency gains and risk mitigation. Strategic evaluation and continuous improvement remain essential for maintaining competitiveness and ensuring public trust in the food service industry.

References

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  • Hughes, D., & Sharp, J. (2015). Quality Management for Organizational Excellence: Introduction to ISO 9001:2015. CRC Press.
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  • Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
  • Sroufe, R., & Curkovic, S. (2016). Integrating Sustainability into Supply Chain Management. Journal of Business Logistics, 37(2), 50-60.
  • Spector, J. (2019). ISO 22000 Food Safety Management Standard. Quality progress, 52(3), 44-50.
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  • Womack, J. P., & Jones, D. T. (2003). Lean Thinking: Banish Waste and Create Wealth in Your Corporation. Free Press.
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