KFC Kentucky Fried Chicken Total Quality Management of

KFC Kentucky Fried Chicken Total Quality Management of one of the largest fast food suppliers By: Lucas Avant Shane Holbrook Ryan Johnson Craig Layne

History of KFC • KFC was founded by Harland Sanders in North Corbin, Kentucky in 1930. • The famous chicken was first sold in a gas station by the now known as Colonel Sanders. The Gas station was called the Sanders Court & Cafe. • The Colonel started the first KFC franchise in Salt Lake City, Utah in 1952.

History of the KFC Franchise • KFC After being bought by many different companies is now known as part of the YUM! Brands Family. • YUM! Brands which is based in Louisville Kentucky, is one of the largest world wide fast food companies. • Along with KFC, YUM! Brands consist of also owning Pizza Hut, Taco Bell, Wingstreet, Long John Silver’s, and A&W Restaurants.

KFC’s Awards • For 2010 The Readers digest gave KFC the, Trusted Brand- Gold Award. This award is voted by the consumers for family restaurant Category. It really says something to have your customers say good things about your company. • The Readers Digest has also awarded KFC as the, Reader’s Digest Most Trusted Brand. • KFC has also won the Putra Brand Award in 2010 by the Putra Brand Awards Association of Accredited. • KFC also won the Effie Award in 2009 for there outstanding worldwide marketing approach.

KFC’s Goals for Improvement • KFC is always looking for ways to improve the quality to the customer. • KFC even has there own division of workers called CHAMPS who make sure that the same quality of chicken is followed around the world. C - Cleanliness H - Hospitality A - Accuracy M - Maintenance P - Product Quality S - Speed of Service • KFC is always improving on the Quality of there Total Quality Management process.

TQM In KFC • After contacting KFC it was ascertained that TQM in regards to KFC is a combination of: Benchmarking Employee Involvement Continuous Improvement

Benchmarking Employee Involvement Historic information is used as a benchmark in which a customer can determine the project values. Wherein a top-down style management is abandoned for a employee oriented approach in which suggestions based on improvements come from anywhere and are highly focused on employee suggestions. Continuous Improvement To improve consistently and approach in a kaizen fashion, KFC constantly desires to improve its quality.

TQM Techniques Used Six Sigma Just-in-Time Hazard Analysis Critical Control Point (HACCP) ISO 9001

TQM Techniques Used Six Sigma – Used by KFC in order to eliminate defects in every point in the organization. Just-in-Time – Used by KFC for deliverables, in other words the food order will follow a JIT model in which they run out just as a new batch of food arrives. (Eliminates mass storage needs). Hazard Analysis Critical Control Point – A management system in regards to food safety which involves identification, evaluation and control of hazards in regards to food safety. Applied from raw materials to served food.

TQM Techniques Used ISO 9001 – A standard of quality management used by millions of companies, where focus is highly dependent on customer focus, motivation and implication of top management, the process approach and continual improvement. Basically KFC uses this to provide quality products which brings business benefits

Problem Solving Tools • It’s critical for restaurants to use problem solving tools to keep sells high. • It’s also used for finding problems for example; bad sells or poor food quality. • Problem Solving Tools that KFC uses are: • • Gantt Charts Run Charts Pareto Charts Quality Function Deployment

Gantt Charts • KFC uses Gantt Charts to plan and track progress. • Gantt Charts are easily adjusted to reflect actual progress. • Gantt Charts helps KFC track progress of workers and their productivity rate. • Also shows improvements in the need addressed areas. • Tracks how long the average customer is waiting on food. • Gives KFC managers progress reports in all areas of the restaurant.

Run Charts • Run charts are a line graph of data plotted over time. • This is a great tool at making adjustment to the food menu. • Collecting data over time, you • A good indicator that something can find trends or patterns in the could be a problem in sales or process. food quality. • A Run Chart will help KFC visualize sales patterns in their restaurant. • It is also used by KFC for employee production.

Pareto Charts • KFC can eliminate the 80% of the • KFC can easily determine how problem from the 20% of the much of a problem, or which issues. problems, are causing the most of the issues. • Pareto chart can be used in a survey type statistical approach, where the customers are asked what they liked or didn't. • KFC can actually use the other problem solving tools to help aid pareto charts and have a ratio: 20% of the defects are causing 80% of the problem.

Quality Function Deployment • Quality Function Deployment is a great tool used to help with sells. • The key to a successful (QFD) is customer opinion and demand. • Foods that are purchased often gives KFC the information they need to make adjustments to their food menu. • If sells are good and customers give good feedback, they will keep. • KFC utilizes the customer opinion in making the quality foods that we eat today. • If sells are bad and customers give bad feedback, they will no longer have on the menu.

Failure Modes & Effects Analysis • KFC procedures for analyzing a system for failure modes and classifying each mode as to its severity and effect on the system; root causes of failures are investigated, prioritized, and eliminated. • Failure modes can be classified as food testing and the specification that have to be met by the FDA and also by the quality of foods that KFC uses. • KFC uses analysis on testing food

Customer Satisfaction Reaching out to local KFC restaurants as well as the parent company Yum! Brands was unsuccessful for obtaining SPC data. We turned to publically available data to begin analyzing a group of KFC locations around Morehead, KY. The KFCs evaluated were: • 200 Stone St, Morehead, KY 40351 • 344 C W Stevens Boulevard, Grayson, KY 41143 • 1 Carol Rd, Winchester, KY 40391 • 851 Eastern Bypass, Richmond, KY 40475 • 9309 US-60, Ashland, KY 41102 Utilizing review data, we were able to develop the following charts.

Customer Satisfaction Analyzing customer reviews for KFC locations in the Morehead, KY area the following Pareto chart was created from the reasons given for negative reviews Customer Review Pareto 16 120, 00% 14 100, 00% 12 80, 00% 10 8 60, 00% 6 40, 00% 4 20, 00% 2 0 0, 00% Poor Customer Service Slow Service Quality of food Occurances Cleanliness Cumulative % Order Incorrect Out of product

Systematic Diagram Utilizing a systematic diagram we can begin to analyze ways to improve customer reviews. Minimize reasons for customer service interactions Evaluation Action Item Prepare food fresh Improve food quality Improve preparation practices Change suppliers Improve training Develop a better training program Upgrade holding equipment Better monitor consistent quality Implement a TQM program Have an amount of product pre-cooked and ready Minimize complaints due to poor customer service Reduce wait times Improve monitoring of busy times Implement a TQM program Always over-staff Symbols: Focus on improved customer service Uncertain Practical Impractical Remove those with poor people skills from positions with customer interaction Move those employees to behind the scenes roles Hire better staff Improve training on customer service Cross train employees to work both front and back office Develop a better training program

Fishbone Diagram Utilizing a fishbone diagram we can begin to analyze ways to improve customer wait times. Slow food prep Items complicated to make Staff not properly trained to prep food Staff not properly trained slow the line Staff take too long meeting customer needs Slow staff Busy times Rush of customers creating wait times Complex menu Too many items on menu create slow decisions for customers Not enough product prepped in advance Many menu items slow the prep process Creates wait times for an alternative Aging equipment Poor inventory Out of product Improper maintenance Equipment failure Customer wait times

SPC Recommendations • Develop and communicate TQM tools for each location: During our research, local KFC restaurant employees were not aware of SPC or TQM programs in place • Create incentives for employees to meet TQM goals: Introducing an incentive program will encourage employees to understand contribute to meeting TQM goals. Focus on customer satisfaction: • The customer is one of the key areas in any industry. Understanding customer satisfaction will help develop the right TQM programs for the organization