ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 26: Principles of Operations management

Submission date 4th December, 2023 Date Received 1st submission 4th December, 2023

Re-submission Date 16th December, 2023 Date Received 2nd submission 16th December, 2023

Student Name Le Trung Thuan Student ID BS00007

Class BA05201 Assessor name Ms. Tran Thi Huyen Tran

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

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Table of Contents
Introduction...................................................................................................................................................4
I. Define and evaluate a range of approaches to continuous quality improvement................................5
1. Poka-yoke ..................................................................................................................................................5
2. Taguchi.......................................................................................................................................................6
3. Six sigma.....................................................................................................................................................7
II. Prepare a continuous improvement plan for Popeyes..........................................................................9
1. Organizational system and support.............................................................................................................9
2. CQI mission..............................................................................................................................................10
3. Goal and objective....................................................................................................................................11
4. Grantee monitoring and assessment of progress.......................................................................................12
III. Discuss the role and importance of SRA for an organisation..........................................................14
Conclusion...................................................................................................................................................17
Reference.....................................................................................................................................................19
Introduction

In a highly competitive climate where customer demands are always increasing and technological
advancements are transforming the landscape, organizations rely on basic ideas like continuous quality
improvement, or CQI. collection of domains. It is insufficient to only offer a high-quality item or service;
success demands a persistent dedication to identifying and eliminating waste as well as an effort to
anticipate and address unforeseen issues. Popeyes consistently strives for quality to maintain a devoted
customer base and expand into new regions. To do this, a dedication to continuous quality improvement
(CQI), a methodical procedure for identifying, evaluating, and resolving issues for enhancement inside the
company, is necessary. It will examine some of the CQI methods that Popeyes may use in its operations
and how this could affect the brand's performance. I will also go over the concept of SRA (Strategic Risk
Assessment), emphasizing how crucial it is to recognize and reduce risks that might affect CQI projects.
I. Define and evaluate a range of approaches to continuous quality improvement.

Define CQI

CQI stands for Continuous Quality Improvement, which means continuous quality improvement. CQI is a
quality management approach that focuses on continuously improving the quality of products, services,
and processes. CQI is based on the principle that quality is a process rather than a state. This means that
quality can always be improved, even if the current product, service, or process is meeting requirements.
(Brian O'Donnell, 2023).

There are 3 ways to approach CQI: Poka-yoke, Taguchi and Six-sigma

1. Poka-yoke
The Japanese phrase for this process is "mistake-proofing," or poka-yoke. The Toyota Production System
is the source of this lean tool. When poka-yoke works, a method must be designed to either completely
prevent mistakes or make them obvious so they can be quickly corrected. Poka-yoke is also referred to as
a restriction that shapes behavior or a forcing function. It is a process-applied defensive design. (Steven
Calhoun, 2021).

Advantages

Poka-yoke error protection systems aim to stop errors from happening in a process or, at the very least, to
make it possible to identify and stop them at the source. The procedure transfers the reduction of errors or
quality flaws to the customer or other processes in the process. Time and money can be saved by doing
this. As some issues are avoided or readily obvious, spend less time training employees. Remove a lot of
the quality control and inspection processes. Since it is impossible to make a mistake, there is no need to
confirm that everything has been done correctly. Simplify the procedure for the employees; if certain
mistakes are avoided, they won't have as much anxiety. Error-proofing can take many forms, from visual
indicators that assist staff to making issues apparent and traceable to, eventually, eliminating process
errors. See below for further information on these stages as well as poka-yoke's history. (theleansuite,
2023).

Disadvantage

Poka-yoke may have disadvantages as well, much like any other improvement technique. Immediate
resistance to change from staff members or decision-makers is one of the key problems. It can be difficult
to defend the expense of implementing new procedures and the time needed to see results. If the
techniques used are improper or ineffectual, this may get worse. However, these difficulties are
manageable if staff members receive good training and are encouraged to participate in choosing the most
appropriate techniques and strategies. (Alecia Bland, 2022).

2. Taguchi loss function

According to the Taguchi Loss Function, which was put forth by Japanese quality expert Genichi Taguchi,
there is a monetary loss to society when a desired target value or specification is not met. The approach is
predicated on the idea that higher product quality corresponds with reduced variety. Given that there is
typically no distinction between a product that complies with specifications and one that does not,
Taguchi's contribution consists in taking the client's viewpoint into account. When contrasting a product
close to the specification limitations with one that meets the goal standard, the quality gap is larger. In
comparison, the Traditional Perspective holds that losses happen only when a product goes over the
specified bounds. The Taguchi Loss Function argues that quality degradation occurs when a product
moves away from the desired specification even when it is between the limits. (whatissixsigma, n.d).

Advantage

Unlike traditional quality measures that focus on meeting specifications, the Taguchi loss function
considers any deviation from the target value as a loss. This approach encourages continuous
improvement and minimizes variability, even within acceptable tolerance ranges. By assigning a
numerical value to the loss incurred due to deviation, the Taguchi loss function allows for objective and
measurable evaluation of quality. This facilitates cost-benefit analysis and optimization decisions, making
it easier to justify investments in quality improvement initiatives. The Taguchi loss function readily
translates into a quadratic loss equation, making it easier to apply optimization techniques such as design
of experiments (DOE) to identify the optimal setting of process parameters. This reduces the time and
resources needed to achieve desired quality outcomes. The Taguchi loss function promotes the
development of robust designs that are insensitive to environmental variations and noise factors. This
leads to more consistent product performance and reduces the risk of defects and rework, ultimately
leading to cost savings. By incorporating the loss function into the design process, engineers can consider
the impact of design decisions on manufacturing costs and product quality. This holistic approach
optimizes the entire product lifecycle, resulting in products that are both high-quality and cost-effective.
The Taguchi loss function provides a common language for communication between engineers, managers,
and other stakeholders. This facilitates collaboration and understanding of quality goals, leading to better
decision-making and improved overall quality management. The Taguchi loss function encourages a
continuous improvement mindset. By constantly measuring and analyzing losses, organizations can
identify areas for improvement and implement corrective actions to gradually reduce variability and
achieve higher levels of quality. (Ted Hessing, n.d).

Disadvantage

The loss function assigns a linear or quadratic loss to any deviation from the target value, regardless of the
specific context. This can overemphasize the importance of achieving the target and neglect other quality
characteristics that may be equally important. Difficulty in estimating loss function parameters:
Accurately estimating the loss function parameters, especially the loss coefficient, can be challenging.
Arbitrary values or subjective estimations can lead to inaccurate conclusions and ineffective optimization.
Limited applicability to certain situations: The Taguchi loss function is primarily effective for optimizing
single response variables. It may not be suitable for situations involving multiple quality characteristics or
complex interactions between variables. Potential for neglecting outlier data: The quadratic loss function
penalizes large deviations more severely than small deviations. This can lead to neglecting outlier data,
which may provide valuable information for identifying potential problems and improving quality. Lack
of consideration for non-monotonic loss functions: The Taguchi loss function assumes a monotonically
increasing or decreasing loss with respect to the deviation from the target. This may not capture the actual
relationship in some situations where the loss function may exhibit non-monotonic behavior. Potential for
neglecting measurement accuracy: The Taguchi loss function focuses on minimizing deviations from the
target value, but it may not consider the accuracy of the measurement system. This can lead to misleading
conclusions if the measurement system itself is not reliable. Overemphasis on optimization at the expense
of understanding: The focus on optimization using the loss function can sometimes overshadow the need
for understanding the underlying physical and engineering principles that govern the process. This can
lead to suboptimal solutions or difficulties in troubleshooting problems. Potential for misuse and
manipulation: The Taguchi method and its associated tools can be misused for manipulation or
justification of decisions without proper understanding and analysis. This can lead to poor decision-
making and negative consequences. (Libretexts, 2022).
3. Six sigma

The term "Six Sigma" refers to a group of methods and instruments for management that are intended to
improve the effectiveness and efficiency of business processes. It offers statistical methods for defect
elimination, error cause identification, and error probability reduction. As a result, Six Sigma fosters a
culture of ongoing process improvement, empowering companies to provide their clients with superior
goods and services. In 1986, Motorola, Inc. created it. Six Sigma can be used to create a management
system for locating and fixing mistakes in any process, regardless of the industry. It offers strategies to
raise the standard of operations and business structure's efficiency, which raises the company's
profitability. (CFI team, n.d).

Advantage

Six Sigma has a track record of enhancing and guaranteeing the quality of a company's output through
small, gradual changes to its goods and services. It can also be applied to improve customer satisfaction
and supply chain operations. The advantages of Six Sigma extend beyond straightforward problem-
solving and take into account the whole production process—from raw materials to the final product—
rather than just the final result. Six Sigma is a proactive process that finds possible issues and makes
suggestions before the business suffers any kind of loss. Six Sigma may be applied across a company's
many divisions, immediately affecting revenue and cutting expenses. Importantly, the Six Sigma standard
for producing products is a reliable recommendation for B2B clients. (Fraser Sherman, 2019).

Disadvantage

Six Sigma creates a lot of empirical data by thoroughly examining corporate processes minute by minute,
which results in laborious and intricate procedures. Adopting its protocols can also raise total expenses
because, at its core, it is a quality improvement process. When a business adopts Six Sigma, issues might
occasionally occur because the organization only pays attention to the policies that are supported by Six
Sigma and ignores its unique mission statement or policies. It might stifle fresh concepts that encourage
innovation and creativity in small enterprises, which necessitates taking some calculated risks. To teach
their staff, businesses must locate accredited Six Sigma institutions or use internal training without official
accreditation. Either way, small businesses cannot afford to embrace Six Sigma due to its hefty cost.
Employees at even huge companies need extensive training to fully understand the system. (Nicholas
Muhoro, 2019).
II. Prepare a continuous improvement plan for Popeyes.

Popeyes is a Louisiana-style fast food chain, famous for its spicy fried chicken, and side dishes. Popeyes
was founded in 1972 in New Orleans, Louisiana, United States. Currently, Popeyes has more than 3,000
stores in more than 25 countries around the world. Popeyes is always committed to providing customers
with the best culinary experiences. To achieve this goal, Popeyes will develop a continuous quality
improvement (CQI) plan. Popeyes' CQI plan will yield positive results. Popeyes' product and service
quality has improved significantly, contributing to increased customer satisfaction.

1. Organizational system and support

Table 1: CQI Team roles and responsibilities

CQI team member Name Roles

Day to day supervisor Ms. B Is the person who closely

follows the change processes of
the plan

Trainer Ms. H Is the person who will guide

and retrain employees to suit
the new plan of the business

Customer feedback Ms. C Is the person who will collect

customer feedback about the
restaurant

Data analyst Mr. T Is the person who collects data

from customers and create a
statistical table.

Table 2: Challenges and Solutions in Implementing CQI

 Challenge(s) Possible Solution

Difficulty in determining the root cause of the Popeyes needs to conduct surveys and interview
problem employees to collect information and data. From
there, analyze and determine the root cause of the
problem accurately.

Difficulty in changing employee behavior A professional, comfortable working environment

will help employees feel happy, comfortable, and
motivated to work better. Popeyes needs to improve
facilities, equipment, remuneration, and employee
benefits.

2. CQI mission

Mission: Enhance customer satisfaction and the dining experience at Popeyes through improved
employee service attitudes.

Table 3: Rationale for Improvement Focus

Evidence of Need for Improvement

Explain how you chose the topics for improvement The store manager went to collect feedback from
(did you gather information from baseline data, customers and found several negative feedback
self-assessment, surveys, ow other formal methods about the staff's poor service attitude.
to identify gaps in services

Did you include consumer input to identify areas Yes, the store manager will include consumer input
that need improvement, and if so, how ? to identify areas for improvement.

Consumer input is a valuable source of information

that can help me determine what customers want
and need. The store manager will collect consumer
 input from various sources, such as:

Surveys: store managers and staff will conduct

surveys online or by phone to gather customer
feedback on various aspects of their experience at
Popeyes.

Online reviews: store managers and employees will

read Popeye's online reviews to see what customers
are saying about the restaurant.

Interviews: store managers and staff will conduct

one-on-one interviews with customers to gather
more detailed information about their experiences.

3. Goal and objective

Table 4: CQI Project Implementation and Evaluation Plan

Enhance customer satisfaction and the dining experience at Popeyes through improved employee
service attitudes.

Objectives Change(s) to Methods/tools Measure Data Data Review

be tested colllection and
Interpretation

Increase When the The team will To know Collect data by Report the
customer customer use process and customer surveying results
satisfaction finishes eating, outcome satisfaction customers in collected in
with the service the store measures used with the service stores or Excel and then
attitude of manager will to track attitude of customer share them in
Popeyes approach and progress. employees, comments on the common
employees ask: "Do you Popeyes will social networks chat group.
from 50% to have any check customer
 80% from complaints reviews on a Analyze data
December 2023 about the scale of 1 to 5 by comparing
to July 2024, store's attitude from extremely previous results
when eating or or service?" dissatisfied to with recently
taking out at And how extremely obtained results
Popeyes stores. would you rate satisfied. The with graphs
on a 5-point way to showing more
scale?” calculate or less up or
customer down changes.
satisfaction
percentage is as
follows,
satisfaction
percentage =
total number of
customers who
rated 4 to 5
stars divided by
the total
number of
customer
reviews to get
the percentage.

4. Grantee monitoring and assessment of progress

Table 5: Communication plan

Methods Frequency Target Audience

All staff meeting Monthly All employees

 Work group meeting Weekly All employees

Evaluate CQI results Quarterly The group is responsible for the

CQI part

Table 6: Summary of implementation results and lessons learned

Topic SMART AIM Successes Lessons Learned

Enhance customer Increase customer Customer satisfaction This success is thanks to

satisfaction and the satisfaction with the with staff service the team's meticulous
dining experience at service attitude of attitude has increased by and thorough
Popeyes through Popeyes employees up to 16% after more implementation of the
improved employee from 50% to 80% from than 3 months, plan.
service attitudes. December 2023 to July surpassing the initial
Viewing customer
2024, when eating or goal that the whole team
reviews is also very
taking out at Popeyes came up with.
important for Popeyes
stores. By retraining
because without reading
employees.
those reviews, Popeyes
will not know what it is
doing wrong or missing.
III. the role and importance of SRA for an organisation.

The process of determining and controlling the particular risks that have an impact on an organization's
capacity to meet its main goals is known as strategic risk assessment. The corporation's goals and
objectives may be harmed or undermined by strategic risks, which may have an impact on shareholder
value and the company's overall viability. Whether for corporate risk assessment or organization risk
assessment, the process of creating risk management systems is the same, even though the specific risks
differ based on the goals and structure of the company. (Adam Wire, 2022).

Role of SRA

The role of strategic risk analysis is diverse and plays an important part in the overall strategic
management process. Below are some of the key roles and contributions of strategic risk analysis in an
organization

Identify risks

Strategic risk analysis helps identify a variety of risks, both internal (e.g. operational, financial,
compliance) and external (e.g. market changes, geopolitical events), can affect the achievement of
organizational goals. It allows the identification of potential risks that may not be immediately apparent
but may appear in the future due to changes in the business environment.

Risk reduction

Once risks are identified and assessed, strategic risk analysis plays an important role in developing
effective risk mitigation strategies. This involves proactive planning to minimize the impact or likelihood
of risks occurring, or respond effectively if they do occur. It helps develop contingency plans to ensure the
organization is ready to respond quickly and effectively to unexpected events.

Monitor and update

Strategic risk analysis is an ongoing process that involves continuous monitoring of the business
environment and internal factors. This ensures that the organization remains aware of the changing risk
landscape. It enables organizations to adapt their risk management strategies and approaches to respond to
evolving risks and uncertainties. Organizations have a responsibility to communicate effectively with
stakeholders, including shareholders, customers, employees and regulators. Strategic risk analysis helps
understand and address stakeholder concerns and expectations related to risk.

Compliance and governance

Strategic risk analysis plays a role in ensuring that the organization complies with relevant laws,
regulations and industry standards. It contributes to the development of effective governance structures
and practices to oversee risk management activities and ensure accountability. (Adam Wire, 2022).

Importance of SRA

Promotes informed decision-making

By providing a clear understanding of potential risks and their associated impacts, strategic risk analysis
empowers leaders to make informed decisions about their organization's strategies, investments, and
operations. This can help avoid costly mistakes and ensure resources are allocated efficiently to achieve
desired outcomes.

Encourages proactive risk management

Strategic risk analysis encourages organizations to shift from a reactive to a proactive approach to risk
management. By identifying potential risks before they materialize, organizations can take proactive
measures to address them and minimize their impact. This proactive approach helps organizations avoid
surprises and ensures they are well-prepared for unforeseen events.

Fosters communication and collaboration

Strategic risk analysis requires collaboration and communication across different departments and
functions within an organization. By sharing information about potential risks and mitigation strategies,
organizations can ensure everyone is aware of potential threats and can work together to address them
effectively. This collaboration improves overall risk management and promotes a culture of risk
awareness within the organization.

Increases stakeholder confidence

By demonstrating that the organization actively manages its risks, strategic risk analysis helps build trust
and confidence among stakeholders, including investors, customers, and employees. This can be crucial in
attracting and retaining talent, securing funding, and maintaining strong relationships with key
stakeholders.

Supports continuous improvement

Regularly reviewing and updating strategic risk assessments allows organizations to learn from past
experiences and improve their risk management practices over time. This continuous improvement helps
ensure that the organization remains adaptable and resilient in the face of evolving risks and challenges.
(Adam Wire, 2022).
Apply SRA to assess the risks of Popeyes

The table evaluates potential risks and measures to overcome for Popeyes restaurants, highlighting the
importance of risk assessment in minimizing losses and achieving business goals.
Categories Risk Risk Risk impact Risk rating Control measure
decription probability

Internal Staff do not Highly likely Moderate Med/high Develop a set of rules
risk master the and standards on service
rules and attitudes that are clear,
standards of specific, and easy to
service understand. Train
attitude employees on this set of
rules and standards
systematically and
regularly.

Product Possible Major Med/High Popeyes needs to have

quality is strict quality control
sometimes processes, including
damaged inspection of incoming
raw materials, production
processes and finished
products. At the same
time, Popeyes also needs
to train employees on the
importance of product
quality and how to ensure
product quality.

External Changing Likely Severe High Popeyes needs to

risk customer regularly research the
tastes market and grasp the
changing trends of
customer tastes to make
appropriate adjustments.
Popeyes needs to
diversify its products and
services to meet the
increasing needs of
customers.

Competition Highly likely Severe High Popeyes needs to focus

from other on branding and
Conclusion

Popeyes will be focusing on strategic risk assessment (SRA) and continuous quality improvement (CQI)
to propel growth. SRA assists in anticipating and reducing risks, whereas CQI helps in the optimization of
operational procedures. By focusing on inefficiencies, risk avoidance, and customer happiness, Popeyes
may create a quality paradise by implementing these principles. These resources enable the business to
grow stronger, more customer-loving, and more efficient while withstanding competition.
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