17 Jun EVALUATE THE PRODUCT USING THE FIVE-STEP PLAN THAT IS ASSOCIATED WITH THE KAIZEN PHILOSOPHY.
Course Project: Quality Analysis II I have Chosen Este Lauder Companies and have attached my draft and week three assignment
For the company and product or service that you selected for W3 Assignment 2, respond to the following in a 3- to 4-page Microsoft Word document: •Imagining yourself to be the customer, construct a House of Quality to provide the organization with your perspectives on what the important dimensions of quality are and how well the organization is currently meeting your needs. •Develop a SPC checklist for each dimension of the product that you believe would be subject to statistical control. •Evaluate the product using the five-step plan that is associated with the Kaizen philosophy. •Determine what elements of the production and delivery of the product or service would be subject to benchmarking and describe how you would identify those organizations to which comparisons could be made in a benchmarking process.
Support your responses with examples.
Cite any sources in APA format.
Submission Details
Name your document SU_BUS4101_W5_A2_LastName_FirstInitial.doc.
Submit your document to the W5 Assignment 2 Dropbox by Tuesday, September 6, 2016.
Assignment 2 Grading Criteria Maximum Points
Constructed a House of Quality. 80
Developed SPC checklists for each dimension of the product subject to statistical control. 40
Evaluated the product using the Kaizen five-step plan. 40
Determined what characteristics and activities would be subject to benchmarking and proposed organizations against which such benchmarking could be done. 40
Written components. 50
Total: 250
Introduction:
Este Lauder Companies is one of the premier manufacturers of skin care, makeup, fragrance and hair care products in the world and sells its products through limited distribution channels that complement the luxury image of their brands.
In order to keep up with their image and brand of being a luxury line of cosmetics, ELC has to embrace and commit to Total Quality Management processes and policies by continuing to improve through implementing and developing tools to help align their core values and mission .
• Developing committed and dedicated employees
• Tracking operational and HR issues in each channel of distribution
• Identifying the need for training .
• Organizing quality circles for managing the problems at each level .
• Developing quality and innovative culture within the core companies channels.
House of quality:
Though ELC has been striving to bring in the most luxurious cosmetic ingredients to the customers, I feel that there is a certain cosmetic product for which product testing has not been done very well.
This cosmetic has not been accepted by the customer despite good product development inputs. I believe that if this product is developed as the flagship brand, it will typically raise the brand as customers are looking for such an exclusive product from ELC.
The HOW looks at the product specification from the customer’s need and the WHAT will address this requirement of the customer from ELC.
SPC checklist:
Item and part no Yes/No Action required Person responsible
Cosmetic blush Yes Further product testing Quality controls manager
Cosmetic blush flavor Yes Refinement of the fragrance Product development expert team
Cosmetic Blush tones Yes Variation in touch and feel Expert cosmetic team
Cosmetic Blush packaging Yes Has to look and feel more luxurious Marketing and quality team
Evaluating the cosmetic blush using Kaizen 5S:
The cosmetic blush has to adhere to the Kaizen philosophy as ELC is going towards TQM. Kaizen refers to continual incremental improvement and a change in an organization’s performances both internal and external that is for good . Kaizen is a tool of quality which means that change is imperative and is permanent..People processes and products have to improve continually so that they can be the best . The philosophy is that good enough is never good enough. Goetsch and Davis state that the Kaizen value system of Kaizen is summarized as continual improvement of all things,at all level,all the time forever”(Goetsch & Davis,2015,pg349).
Kaizen for the Cosmetic blush product from the house of ELC would have to go through the rigorous standards prescribed and has to pass through the five stages as shown below
Sort: The cosmetic blush has to be weeded out of unwanted ingredients which are hampering the ultimate luxury product.
Set in order: There is a place and order in which the cosmetic Blush has been prepared .
Shine: the product has been well given the finishing touches and
Standardize: ELC has set high levels of product manufacturing operating procedures for the product.
Sustain: ELC has made guidelines for the product layout and manufacturing and is continually striving to improve it.
Benchmarking:
The cosmetic blush which will be launched in its new and improved version would be benchmarked against the world brands of cosmetic blush manufacturers and while ELC has its own innovative and creative processes for making this an exclusive one. The benchmarking process would be on set product manufacturing and on operating efficiency including the very important inventory and agile methodology being followed. The gestational period of the product would also be benchmarked.
There have been standards in cosmetic products set by Donna Karan International and Kohl’s corporation. ELC has to look at the measurement and evaluation of its operational experiences as a comparison opt these giants This will enable ELC to determine where and how improvements can be made ,how higher organizational performances can be achieved and use this input to improve new products especially the cosmetic blush which is said to be benchmarked against the competitors .
Conclusion:
As ELC goes TWQM compliant it is very important that SCP ,Kaizen and benchmarking are done Kaizen process improvement keeps questioning why improvements are necessary and so the 5 whys are an integral part of kaizen in those organizations where quality is an important metric .Every planned improvement needs to be tested by questioning ‘why?’ at five levels to ensure that its logic and value is clear. Process improvement is the direction of Kaizen involving people and tools.
References:
Goetsch, David L., Davis, S. (2015). Quality Management for Organizational Excellence: Introduction to Total Quality, 8th Edition. [VitalSource Bookshelf Online]. Retrieved from https://digitalbookshelf.southuniversity.edu/#/books/9781323461549/
Laraia, A., Moody, P. and Hall, R. (1999). The Kaizen Blitz: Accelerating Breakthroughs in Productivity and Performance. John Wiley New York.es.
Vasiljevi’c, D. (2011). Implementation of kaizen business philosophy: Program of business process continuous improvement. Ekonomski horizonti, 13(2), pp.25–43.
Quality Analysis of Este Lauder Companies
Karen L Campbell
BUS 4021
August 22, 2016, Date, Year
Instructor Craig Knight
South University Online
Executive Summary
I have selected the Este Lauder Companies due to interest in the products and their commitment to beauty products in the premium segment. In my research I was surprised to learn that due to acquisition over a period of many years makes ELC is one of the premier manufacturer of skin care ,makeup,fragrance and hair care in the world and sells its products through limited distribution channels that complement the luxury image of their brands.
The Este Lauder Companies was founded in 1946 by Mrs. Este Lauder. She started with four basic skin care products and over time has products that are sold in over 150 countries and the well-recognized brands include Aramis, Clinique,Prescriptives ,MAC,Aveda just to name a few.In 2014 the company recorded sales of $10.9 billion,with the highest geographical exposure coming from the America’s.(41.7%). They employ over 44,000 .
The vision statement of the company focuses mainly on providing quality products and services. Brand equity is one of their fundamental commitments “ Bringing the Best to Everyone We Touch” (estelauder.com ) . From ELC core brands to its newer brands ,it is one of premium luxury. ELC invest in an aggressive ,well-funded marketing for each brand and most would never know that theses brands are all Este Lauder. Este Lauder Companies also are on the forefront of technology and research and development of all products. They rely on over 400 leading chemists,biologists,and safety testing is paramount to their total quality management.
SWOT analysis of Este Lauder Companies .
Strengths :
ELC is providing the best products to its customers, skincare is their most profitable category and continues to use an integrated supply chain for managing the distribution issues in a productive way per a report from Business Insider (2012) . Brand equity continues to provide exposure to new customers through new product launches from Clinique,La Mer and Este Lauder products .The increase in operating income allows them to strengthen these lines with continuous innovation and expansion of the distribution channels(Kapferer et al,2016,pg.120).
Weaknesses:
Este Lauder Companies is not giving importance to vertical integration strategies . Because of the limited distribution channels it limits its reach to consumers. This is a competitive disadvantage. However affluent buyers of their product are less price -sensitive and unlikely to switch to lower priced products. Another weakness is the overpaid family members and executives. The culture of nepotism involved and political corporate culture can be seen as a major weakness. There is very little crossover from brands many people stay in positions for years and the opportunities are few for advancement(marketrealist.com).
Opportunities :
Since ELC is a pioneer in the beauty and cosmetic industry it has the opportunities to tap into the social media ,digital markets to drive consumers the many lines of products. It also has to stay in tune with the brick and mortar retailers and their consumer base. As mentioned in week 2 assignment I used Macy’s and their closing of 100 stores could adversely affect ESL sales. Macy’s is EL’s largest customer in the US it is 10 percent of Este lauders consolidated net revenue for the fiscal year 2014( marketrealist.com) . By expanding into other markets such as internationally in China, and India.Promotional campaigns can also attract new markets and consumers.
Threats:
The competition from other companies affects the operation of the company and digital marketing provides an option to international players Counterfeit products from the counterfeit internet market. The abundance of goods and the quality affect brand image. The other threat is from income disparity among the different channels and the employee’s rate of turnover.
Este Lauder Companies need to continue to embrace Total Quality Management processes and policies by continuing to improve through implementing and developing tools to help align their core values and mission .
• Developing committed and dedicated employees
• Tracking operational and HR issues in each channel of distribution
• Identifying the need for training (Yarosh,2016,pg.377).
• Organizing quality circles for managing the problems at each level .
• Developing quality and innovative culture within the core companies channels.
While analyzing Este Lauder’s many channels there is room for change within the culture for managing favoritism to relatives and family members existing in key role model positions. The element of leadership has to come from the commitment of all employees from the top to even all suppliers ,scientists and continue to provide quality beauty products to the consumer. The lack of improvement infrastructure also called factors that affect the overall performance of the company must always be innovating and continually changing through teamwork and collaboration organization. Internal customers have to involve Managers, Employees on the production lines and suppliers and all other stakeholders. The external customer is the most important and requires implementing change.
Recommended changes for potential strategic alliances between consumer and Este Lauder Companies.
In order for managing the competition and attracting new consumer markets Este Lauder has to give importance to strategic alliances. When entering into foreign new markets it has to identify the major players and focus on TQM process. By diversifying its distribution channels and modernizing its SAP -based technologies to integrate data,processes,and technologies that will standardize business processes. The also have to work on supply chain efficiency to utilize a network of third-party manufacturers on a global scale. By continually benchmarking the performance of its supply chain and then adjusting its network to footprint the changing needs for all channels. Este Lauder Companies need to continue their product categories through higher investment spending on innovation and philanthropy involvement of its human capital its people. While entering the foreign market the company has to identify the major players in the industry and focus on strategic alliances process. The company is already formed a strategic alliance with Donna Karan International and Kohl’s corporation. This is the right time for the company to identify other players in the market for increasing the market share. The company can also focus on Johnson and Johnson and Unilever company for forming strategic alliances.
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