Operations Management Report On Teys Australia: Quality Function Deployment And House Of Quality Framework

Background of Teys Australia

The purpose of this report is explain different aspects of operations management in the business. An Australian food manufacturing organization Teys is taken in the given scenario. The chosen product is meat for the business.

The scope of the project is to evaluate the importance of operation management process in the business. The report defined the house of quality framework and quality function deployment of the food manufacturing company Teys.

Whole operations management report on the company Teys is completed by the date 20 Sep. 18.

There is no specific work left to complete.

The purpose of this report is to enlighten the reader about the company Teys Australia and its functioning in the target market. The report evaluates a review of the literature on quality management of the company. Quality function deployment is the process with which the organization analyse the customer needs and wants and satisfy them by converting it into the targeted design (Ching, et. al., 2015). The below-mentioned report further evaluates house of quality of the selected product of the company Teys along with process strategy of the company as well. The latter part of the report evaluates the review on process and layout strategies of operation management. Teys is a meat processing company headquartered in Queensland, Australia. The company was originated in the year 1946 by four Teys brothers. In the year 2014, Teys became Australia’s second largest meat processor and exporter with export operations in 40 countries. Meat as the major product is being analysed in the report. Currently, the company is working in a 50/50 partnership between Teys Family and Cargill Company. The company is further expanding its scope of business in different parts of Asia as well (Teys 2018). The company is adequately serving the customers quality products with effective production and marketing services as well. Further, more details about the report are discussed below:

Being present in a highly competitive beef industry, it is very important for the organization to provide good quality products to the customers according to their expectations. Four of these Teys brothers were involved in wholesaling and retailing meat in South East Queensland. Further, by focusing on client satisfaction and on-time delivery of products, the company increased sales and became the second largest meat producer and exporter in Australia. It is a family owned business that now works with 50 % partnership of Cargill Company. Cargill is an international producer and marketer of food, financial, industrial and agricultural products and services. This company helps the customers through collaboration and innovation practices and by sharing the information globally in the target market.

Quality Management in Teys Australia

Further, it should be noted that it is important for an organization to present in the food industry to manage the quality of food in order to attain customer satisfaction in the target market. In response to which, the company initiated many quality management tools and techniques to wisely manage the quality of food in the products that they serve. Teys Australia initiated the food security programs to keep an eye on the product manufactured by them in the market. Under the food safety program, the company considered various factors such as goods manufacturing practices, critical control point etc. With the help of these practices, the company adequately received success in the target market. Apart from this, the company also initiated the PDCA (Plan, Do, Check, Action) cycle with the help of which they adequately achieved the quality standards in the market. Initially, the management of Teys developed the plan on the basis of which they performed the task. After implementing the activities, the management checked the implemented work with the planned one and if they find any deviation in it then they use all the quality control tools and initiate corrective actions against it as well.

According to Boljevic (2007), quality management refers to an integral part of the enterprise management system under which there are qualitative management and flow of products and services. According to the author, managing quality refers to the process of adopting for which the products quality consists of. It basically refers to the process of managing activities that helps the business in managing the quality and manufacturing products to attain good results in the market. Quality management is the duty of the managers that are present at all levels of management; however, it is led by only the top level management of the company (Carvalho, Paiva, and Vieira 2016). Further, below mentioned are some of the stages that an organization initiated in order to attain the quality of the product. These stages are mentioned below:

1. Expected quality: this is the type of quality on the basis of which all the quality management functions work in an organization. As this quality is desired by the user in the society.
2. Prescribed quality: It talks about the specifications that should be established in order to derive the actual functions of the product.
3. Designed or defined quality: Under this stage, the products are realized with the descriptive and procedural specifications. The projected quality is the result of prescribed as well as defined quality.
4. Achieved quality: After all such steps, the product is actually made and the specifications are measured. The achieved quality can be noted as the result of projected quality along with the quality of realization (Lam, and Lai 2015).
5. Quality managed during the lifetime of the product.
6. Quality observed by the user.

It should be noted that in an ideal situation, the perceived quality is the equal to the expected quality, however; various influencers that affect the interest of the customer in the target market disturb this ideal situation. Further, the concept of total quality management focus on establishing the participation of all the employees of the company in managing the quality of the product and initiating long-term success based on the satisfaction level of the customers (Shrivastava 2016). Further, the concept of total quality management brings two new changes in the environment that are, the establishment of the continuous process of improvement and employing all the people and by satisfying every user of the organization and not only the buyers (Desai, Kartikeyan, and Panchal 2016). Further, it should also be noted that it is important for the organization to initiate the activities of TQM in the business so as to manage good customers relation in the environment. The process of TQM integrates various systems and focus on the satisfaction of all the stakeholders of the company. Satisfaction of the customer is the most important aspect for an organization as it helps the business to grow and succeed in the target market (Chavoshi, and Shahin 2017). Lastly, it should be noted that there are specifically eight principles of total quality management, these are those principles that help the business to derive success in the competitive environment. These principles are mentioned below:

• Customer Focus
• Leadership Driven
• Involvement of People
• Process of Approach
• System approach to management
• Continual Improvement
• Factual approach to decision making
• Mutually beneficial supplier relationship

Total Quality Management

These are all the principles on the basis of which the process of total quality management works. These principles all together help the company to attain customer satisfaction by improving the quality of the product (Abdullah, et. al., 2017).

The process Quality Function Deployment talks about the process of analysing what will satisfy the needs of customers and converting those needs in the targeted design. The HoQ is a tool explains a relationship between the desires of the customers and product capabilities as well. Further, in order to conduct the process of HoQ, the company needs to analyse the demand of the customers and give ranking to the preference of the customers towards the products (Hoang 2017). These features of the company are discussed below:

Customer needs	Importance ratings
Neatness/ Hygiene	7
Complimentary goods	5
Attractive Container	5
Taste	9
Reasonable cost	8
Nutritional value	7
Superior quantity	7

The above-mentioned table shows that the taste of the food product is the most important feature that the customers demand from a food manufacturing company in the environment. If the taste of the product would be better then it will subsequently increase the demand of the product as well. Further, the price of the product is the second most important aspect highly rated by the customers. The above table shows the desires and their importance rating according to the customers (Ross 2017).

At this stage, the managers of the company need to show the demands and needs of the customers into Teys Meat Company. The meat product should provide various distinctive features to the customers. The desires that will satisfy the customers to the maximum level are discussed below:

• Producing good quality, hygienic, tasty meat
• Providing optimum quantity to the customers
• Reasonable Value (Chang 2016)
• Full of nutrition
• Nice and attractive packaging
• Fresh and hot delivery

Looking at the increase in the concentration of people towards quality as well as the quantity of meat, it is considered that Teys should offer meat products that are good in taste and provide nutritional value at reasonable value as well (Mitreva, et. al., 2016).

Under this stage, the meat provider company Teys has to develop a relationship matrix between their hows. There might instances in which the hows relate to each other. There is always a relationship of the company with the hows of the product present in the market. For instance, in the given product meat, the taste and quality of meat have a high intensity of relationship with the company whereas additional offers and gift vouchers has a low intensity of relationship with the company (Djekic, et. al., 2014). The below-mentioned diagram explains the relationship between a firm’s hows.

This step of the house of quality diagram is considered as most difficult and longest as well. After developing the relationship matrix between the customers wants and how’s, the company determines the importance ratings for the meat product offering as well (Oakland 2014).

Principles of Total Quality Management

The importance ratings for the meat product offered of Teys are discussed below:

Attributes		Importance Ratings
· Appearance	3*1	3
· Tasty, quality and hygienic	6*6+3*3	45
· Income friendly	6*4+3*2	30
· Attractive packaging	5*1+3*2	11
· Superior quantity	3*1+3*3	12
· Fresh and hot delivery	1*6+3*2	12

After the determination of importance rating, the management of Teys will compare the features of the product with the competing brands. For this analysis, Sanderson Farms and Savencia Fromage & Dairy are taken as an example to depict the position of Teys in the market. In this step, Teys need to compare the meat manufactured from their organization with that of the competitors. In this aspect, the companies will be rated as good (G), poor (P) and fair (F) (Aung, and Chang 2014).

		Sanderson Farms	Savencia Fromage & Dairy
Good Taste	6	G	F
Low Price	5	P	P
Good Texture	1	G	G
Nutrition	4	F	F
Fresh and hot delivery	2	G	G
Appearance	3	G	F

The last step in the process of house of quality is the determination of technical attributes and checking of performance with response to the market products. The quality overall is improved with the help of physical, chemical and technological products. So, the meat should properly check using appropriate tools that specify the adequate level of fat, protein and vitamins present in it. Use of technology in the internal process to will enhance the taste of the product and will provide adequate quantity to the customers as well (ReVelle 2016).

From the above-mentioned house of the quality model of the company Teys, it can be seen that the product focused strategy will properly suit the activities of the company. The process strategy in operation management constitutes of four types of strategies that process focus, repetitive focus, mass customization and product focused. The product focus strategy aims to produce the high volume of the products and less variety of processes. This type of strategy is also called continuous strategy under which the management of Teys will keep on producing products with less differentiation just to increase the production and sales of the product (Sivasamy, et. al., 2016). Under this type of strategy, Teys need to initially invest a greater amount and then earn the reward as facility utilization. The company adequately make use of available resources and convert them to create products for the company. This process of the company will aim to adequately satisfy the requirements of the customers by meeting the demand as well. As the customers off the company very particular about taste, so this type of strategy will initiate the effective organization of the process to initiate high volume and low variety. This process will initiate low production cost with highly specialized labour as well (Sarkar 2017).

As discussed above, there are four different type of process strategies in the process of operations management. The initial strategy that is processed focus determines the ways in which a company can produce goods and services without facing any constraint. The objective of this type of strategy is to increase the expectation of customers and produce a long-term effect on the company as well. Further, the repetitive strategy is organized by the assembly lines, it is more structured than process strategy but less than the product. The product strategy is already discussed above, so lastly mass customization refers to the process of using technology and imagination to rapidly mass produce products (Borges Lopes, Freitas, and Sousa 2015).

Quality Function Deployment

Further, there are four basic layout types that are the process, product, hybrid and fixed position. Process layout is the grouped resources that are based on similar processor functions. Further, the product layout strategy is used in systems where the product has been manufactured or assembled in large quantities. In this type of strategy, the machine and auxiliary services are located according to the processing sequence. Further, in a fixed location layout, the product is kept at the fixed position and the material components are brought and arranged around it (Mitreva, et. al., 2016). After this process, assembly and fabrication are done. Lastly, the cellular layout strategy makes use of the just in time strategy under which the company manufacture product as quickly as possible with wide similarity as well.

For the purpose of production, Teys should make use of a cellular layout process in the business. The goal of this type of layout strategy is to move as quickly as possible and produce a wide range of similar products in the market and produce little waste as well. The process of cellular manufacturing involves different cells that would be composed of different machines to accomplish specified tasks as well. The cells under this type of layout are arranged in the shape of U. Further, it should be noted that in order to implement the cellular manufacturing process, there are a number of steps that are to be performed (Shahin, and Rezaei 2018). Initially, the company needs to make groups on the basis of similarities and then they need to initiate a systematic analysis of each of the group and create a production flow analysis for the manufacturing families. This type of analysis can be time-consuming for the company, however, it is very important to create a cell and every cell needs families of parts. Clustering of machines and parts is recognized as one of the best production flow analysis method. In this process, the parts are grouped on the basis of modified ranking order clustering, Rank Order Clustering and similarity coefficient (Kurata, et. al., 2017).

Thus, it should be recommended to the company Teys that they are working stupendously in the market of food production. However, there is still scope for the company to grow and earn maximum in the target market. The company should make use of the above-mentioned house of quality design and the process and layout process to succeed in the market. The HoQ process will help the company succeed in the market by increasing the satisfaction level of the customers and developing a systematic way to manufacture meat as well.  

House of Quality Framework

Conclusion

Thus, the above-mentioned events evaluate the facts about the company Teys that is currently working in the industry of food production. The product selected for the above-mentioned analysis is meat. The report defines the house of the quality method that the company should make use of HoQ in order to satisfy the desires of the customers in the market.  The HoQ is a systematic framework that will help the company to identify the current demand present in the market and create a relationship with the firm’s objective as well. The house of quality framework creates an effective operation management system in the company. Further, the process and layout strategies also help the company to initiate actions that can successfully help them to succeed in the target market.

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