Restaurant Business Summary - Free Essay Example

Sample details Pages: 4 Words: 1286 Downloads: 2 Date added: 2017/06/26 Category Business Essay Type Narrative essay Did you like this example? Introduction Restaurant business  is by far one of the most favorable and most popular competition in business sector and the newly opened restaurant also more and more in recent. Their location should be strategic and service quality need to be improve in order to attract customers as well. There are five major dimensions to measure service quality such as reliability, responsiveness, assurance, empathy and tangible. Most of them use Medical nurse and automotive repair services method to measure the relationship between service quality and customer satisfaction which is developed by Parasuraman, Zeithaml, and Berry. Customersà ¢Ã¢â€š ¬Ã¢â€ž ¢ satisfaction can affect an organization career development, for example, if most of the customers are not satisfied with the restaurant about their customer service, types of food, hygienic conditions and so on, these all will affect their organization operation. We have a principle says that à ¢Ã¢â€š ¬Ã…“customers is a kingà ¢Ã¢â€š ¬Ã‚ , so employees need to take some proper or needed actions to make the customers satisfied because customers is the leading role for all business organization and the results can be different which is due to different characteristics of customers such as age, income and knowledge. Besides that, some research find out that customer satisfaction can directly affect their loyalty whereas some research testify that satisfaction does not affect loyalty as several customers will switch to another products which offer better things when they need similar products in their life . Summary Measure of Superiority (MSS) is the difference between service quality performance and customer expectation. The score can be either positive or negative depends on satisfaction level of expectation by customer. The table illustrates the expectation and performance on each quality of services dimensions which provides customers satisfaction. The result show that customer satisfa ction has been achieved when the sum of performance score 19.1 is bigger than expectation score 18.99, MMS score is positive. The gap score of responsiveness 0.03, assurance 0.05, empathy 0.15, and tangible 0.07 is positive, that means performance score is greater than expectation score while reliability represent a negative gap score (-0.19), this dimension causes customer dissatisfaction. Measure of Service Adequacy (MSA) score is acquired by subtracting minimum expectation from customers from service performance in restaurant business and if the performance is greater than customer expectation then the score will become positive. With the MSA being positive and the minimum expectation score met, this five dimensions of service quality had reflects that customers satisfaction has been fulfilled. Besides that, we found that all of the attributes of each dimensions are greater than the minimum expectation from customers especially is à ¢Ã¢â€š ¬Ã…“promptness of the employees se rve their customersà ¢Ã¢â€š ¬Ã‚  (Diah Yulisetiarini, 2014, P6)in reliability acquired highest score while à ¢Ã¢â€š ¬Ã…“easiness in purchase transaction processà ¢Ã¢â€š ¬Ã‚  and à ¢Ã¢â€š ¬Ã…“ customers feel easy to communicate with employeesà ¢Ã¢â€š ¬Ã‚  attributes gets 0.33 the lowest marks compared to other attributes. Measure of Service Adequacy (MSA) score is acquired by subtracting minimum expectation from customers from service performance in restaurant business and the score will become positive when the performance is greater than customer expectation. This five dimensions of service quality had reflects that customers satisfaction has been fulfilled because all has met the minimum expectation score and MSA is positive. We found that all of the attributes of each dimensions are greater than the minimum expectation from customers especially is à ¢Ã¢â€š ¬Ã…“promptness of the employees serve their customersà ¢Ã¢â€š ¬Ã‚  in reliability acquired highest score while à ¢Ã¢â€š ¬Ã…“easiness in purchase transaction processà ¢Ã¢â€š ¬Ã‚  and à ¢Ã¢â€š ¬Ã…“ customers feel easy to communicate with employeesà ¢Ã¢â€š ¬Ã‚  attributes gets 0.33 the lowest marks compared to other attributes. With comparing the anticipated performance and observed performance, the area of accepted service is demonstrated by Zone of Tolerance. The maximum expectation subtracts minimum expectation of the customers is to get the score of Zone of Tolerance. à ¢Ã¢â€š ¬Ã…“Promptness of the employees to serve the customersà ¢Ã¢â€š ¬Ã¢â€ž ¢Ãƒ ¢Ã¢â€š ¬Ã¢â€ž ¢ attribute is the greatest zone whereas assurance dimension which related to à ¢Ã¢â€š ¬Ã…“customers feel safe when they are in the restaurantà ¢Ã¢â€š ¬Ã‚  attributes is the thinnest zone of tolerance. Cartesius diagram use to measure the restaurant performance and the customer expectations. This diagram consists of four quadrants A, B, C, and D which is separated by X-axis and Y-axis. The mean score of the overall attributes of restaurant performance represented by X-axis whereas the mean score of the overall attributes of customer expectation represented by Y-axis. Moreover, the mean scores are calculated from the list of satisfaction attributes for X-axis and Y-axis is 3.80 and 3.82. Quadrant A is located above the mean score of X-axis and before the mean score of Y-axis. Quadrant A is a quadrant that dissatisfaction among customers, due to the restaurant management has less attention on customers. In this cause, the service performance of the restaurant should be improved. Next is quadrant B, it located above the mean score of X-axis and after the mean score of Y-axis. In this quadrant, the performance of the restaurant management is good. The restaurant has conducted well customersà ¢Ã¢â€š ¬Ã¢â€ž ¢ perceive attribute and those attributes have satisfied customers. Furthermore, quadrant C is located below the mean score of X-axis and before the mean score of Y-axis. The rest aurant management service attributes is low priority and less important. So, in this quadrant do not need further attention. Besides that, quadrant D is located below the mean score of X-axis and after the mean score of Y-axis. Even though, the restaurant management has well delivered the service, but the customers do not considered important attributes. The restaurant manager should expand more on other important attributes to improve the performance of the restaurant. Critique There are several critiques we can get from the article. First, a look at the introduction tells us that it is too long. Some points are emphasized too much and repetition occurs here and there. This problem causes unnecessary portion to constitute a large part of the introduction and as a result, the introduction becomes lengthy. Second, some tables did not explain clearly the parts they have. For example, table 7 only stated the mean score of expectation (Y) and the mean score of performance (X) i n the vertical columns without explaining their function in a clear way. Misunderstandings may occur if the readers of the article only scan through the article. Third, the article contains parts that are repetitive. The usages of some words are repeated many times throughout the whole article making it seems to overstress some points. The elaboration for the point also contains sentences that are unnecessary due to it repeating the same thing as the previous sentences. Fourth, the diagram used in the article which is Cartesius Diagram, is very confusing to the readers. The overall data for the whole research is squeezed and put on display in the diagram. The too-large data is too much for a single diagram to explain. In our opinion, the data should be separate into different diagrams to allow better understanding. The whole article does not only consist of negative points. The positive point, which is the fifth point, will be about the part called abstract. The abstract of this article is very good as it is simple and clear, not to mention that it is straight to the point making it easier for the readers to understand the general view of the article. Last but not least, the whole article of this research serves as a very good extension of knowledge in conducting business in the future. Applying the formulas and knowledge gained from this article will be very useful in trying to set up a successful business. Conclusion As a conclusion, restaurant businesses try to put more effort in order to maximum customer satisfaction to attract more customers and increase their business in their restaurant. There are some weakness shows in the critique part. By this way, they can observe and try to do it best for their restaurant. Don’t waste time! Our writers will create an original "Restaurant Business Summary" essay for you Create order

Of Mice And Men Character Development - 1435 Words

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Policy Implications Of Porter’s Diamond Theory

Question: Discuss about the Policy Implications of Porters Diamond Theory. Answer: The Porter Diamond was a model designed by Michael Porter, a popular scholar on economic competition and corporate strategy. It was developed for understanding the economic condition of the competitive advantage of the nations (Riasi, 2015). The model comprised of four determinants and two outside forces. All these factors could be implied on the medical tourism industry of Thailand. Medical tourism in Thailand has been a relatively new emerging concept facing a phenomenal growth over the past decade. The implications of policy of the Porter Diamond theory on this industry would be easier as there are future scopes to develop in this sector (Beleska-Spasova, Loykulnanta Nguyen, 2016). The application of the theory by Thailands government to develop the medical tourism industry has been discussed in the essay. The medical tourism has an effective appeal to the emerging economies of Thailand. Thailand posses a significant share from the medical tourism sector growing at the rate of twenty percent every year. The possibility of impacting the healthcare organizations could be analyzed by the factors as explained by the Porters Diamond of National Competitiveness (Beleska-Spasova, Loykulnanta Nguyen, 2016). The framework of Porter comprised of four divisions of national attributes. These attributes has determined the competitive advantage of a country. This is known as the National Diamond. This includes the demand conditions, factor conditions, firm strategies and rivalry and related industries. Porter also suggested two more outside forces such as the government policy and the change supporting the national competitiveness. The government communicates with these determinants by backing the competitive advantage. As claimed by Porter, the determinants shape the surroundings where the local firms contests and promote the development of competitive conditions. This factor conditions of the framework by Porter, included the factors like geographical area and language barriers. To favor the attribute the natural environment of Thailand is found pleasant throughout the year. It has well planned road infrastructures with important international airports connected globally. Thailand has been leading the world in surgical procedures also. Applying the factor, medical tourism in the country has become cost advantageous for the government (Alberti et al., 2014). The demand condition of Potter denoted the amount of customer preferences in certain region. This is easily applicable to Thailand, as the strong demand for the cosmetic procedures has contribution on the overall development in the medical tourism. Thailand also stands first in surgical procedures. These demand for these services have generated specialist expertise for Thailands healthcare. (Alberti et al., 2014). The related and supporting industries factor could go for Thailand as the Bangkok region of Thailand has efficiently developed its infrastructure over the last decade. For this, Porter suggested to consider the growth of particular industries taken in cluster of several nations. Thailand was favorable for this due to the economic outburst in the region occurred by the creation of international airports. The Diethelm travel agency in collaboration with the Bumrungrad hospital has formed the leading inbound organization for the tourists (Alberti et al., 2014). For the firm strategy structure and rivalries, Porter claimed that the performance of the firm might be close to the national competitive advantage. It could be easily applied to Thailand as healthcares like Bumrungrad hospitals have pioneered the medical tourism. As a result of this, the inflow of the international patients increased about seven times in the past decade. (Coelho, 2015). The government plays the facilitators role of the national diamond, as suggested by Porter. The activities of the government were a crucial variable to the determinants of Porters framework. The government could act as the fundamental purchaser of healthcares. The supporting and related industries could get influenced by governments control on market regulations, tax policies and advertising. However, there exists the role of chance events. Some examples of it may be the shift in world financial market and political and war decision of the government (Alberti et al., 2014). Thailand has been competing in the medical tourism sector on the basis of cost price advantages. In order to sustain the development, these markets have to diversify in the areas of the treatment products. The national diamond theory of Porter provides a clear idea of sustaining the potentials by demonstrating the growth in medical tourism for a longer time. References: Alberti, F. G., Giusti, J. D., Papa, F., Pizzurno, E. (2014). Competitiveness policies for medical tourism clusters: government initiatives in Thailand.International journal of economic policy in emerging economies,7(3), 281-309. Beleska-Spasova, E., Loykulnanta, S., Nguyen, Q. T. (2016). Firm-specific, national and regional competitive advantages: The case of emerging market MNEsThailand.Asian Business Management,15(4), 264-291. Coelho, C. L. C. E. (2015).Healthcare and medical tourism-Cascais Municipality case study(Doctoral dissertation). Riasi, A. (2015). Competitive advantages of shadow banking industry: An analysis using Porter diamond model.Business Management and Strategy,6(2), 15-27.

Strategic Sourcing in Purchasing and Supply Chain Management Essay Example

Strategic Sourcing in Purchasing and Supply Chain Management Essay In the globalized era when most of the business organizations are involved in different business activities it has become inevitable for the firms independently perform all the functions. Most of the companies do not operate their supply chain and rely on other firms to perform the multi-faceted tasks. The successful and efficient combination of the operations of these firms provides the company with the competitive edge in the market. (Cook, DeBree, and Feroleto, 2001). Lummus and Vokurka   (1999) points out towards the need for the managers to understand the performance of all the stake holding firms in the supply chain. According to (Pohlen, 2003), this insight in the performance of each firm will enable the managers to develop measures in order to fulfil the demands of the customers. The main task of the supply chain management is to develop a strategy which can cater the need of the customers and is aligned with the company objectives (Pohlen, 2003). In this lieu it is important for the mangers to keep on measuring the performance of different parts of supply chain (Deloitte, 1999). It has been a proven fact that the improvement in the company’s performance cannot be undertaken with out improving the performance of its suppliers (Lummus, Vokurka, and Alber, 1999). The planning and information taking activities can be easily performed by the operations managers and senior executives it they have an up to date information regarding the performance of different supply chain firm and stake holders and the resources available to the firm. Authors (La Londe and Masters 1994; Lambert, Stock, and Ellram 1998; Mentzer et al. 2001) regard a supply chain as a set of firms involved in the upstream and downstream flows of products, services, information, and/or finances.   Mentzer et al. (2001, p. 4) described a supply chain as a set of three or more organizations directly linked by one or more of the upstream and downstream flows of products, services, finances, and information from a source to a customer. Thus, the nature of a supply chain is comprehensive so that membership is not limited to a supplier, a manufacturer, and a distributor, but open to any firm that performs various flow-related services (Mentzer et al. 2001). We will write a custom essay sample on Strategic Sourcing in Purchasing and Supply Chain Management specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Strategic Sourcing in Purchasing and Supply Chain Management specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Strategic Sourcing in Purchasing and Supply Chain Management specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The notion of production management has been transformed from the manufacturing activities and has expanded to activities as purchasing, warehousing, transportation, and other operations from the procurement of raw materials through various activities until a product in available to the buyer. The notion includes the process of delivering the services to the customers with the products. With the changing time the aspects covered are increasing, the process now also includes RD, value creation, marketing management, sales activities, accounting and finance. The operation management model constitutes of inputs and outputs. The list of inputs include, 1. customer needs 2. Information 3. Technology management 4. Fixed assets of the business 5. Human capital 6. Variable assets related to transformation process. Information and the physical factors play an important role for managers in order to produce outputs. Most of the physical assets remain unchanged. These include buildings, land, manufacturing plants, warehouses etc. Planning, operating and controlling are the important constituents of transformation process. The improvement in the system is also an important aim of the model. Outputs consist of products and services and may even be information, such as that provided by a consulting organization. (Koontz and Weihrich, 1994; p 633, 634) The international sourcing policy effects the corporate, marketing, purchasing, and other strategies.   It is important for the firm to connect the future objectives with corporate objectives and strategy. The purchasing function should also be undertaken in order to support the corporate objectives. It is often observed that the purchasing functions in the firms are undertaken without gathering proper and enough information. Also the purchasing decision of most of the companies are not undertaken in the line of the strategy of the company. It is also important for the companies to undertake strategic planning while undertaking the purchasing decision. Most of the researchers emphasize the need of aligning the purchasing function with the firm’s strategic planning process. In order to undertake effective planning according to the company’s goal it is important to plan and implement strategic planning more effectively at the departmental level. Some of the researches a lso pay great attention in establishment of the link between the customers and the suppliers as part of their purchasing strategy. The purchasing decision in the right direction can also help the company in acquiring the market leadership through cost reduction. â€Å"Purchasing’s contributions to corporate strategic planning include the following: monitoring supply market trends, interpreting the impact of these trends on the firm, identifying the materials and services required to support company and strategic business unit strategies, and developing supply options.† (Ellram and Carr, 1994) There are many techniques, which can be undertaken by the management in order to improve the quality of management process. Some of them are described below. Time-Event Networks: Time network analysis is a logical extension of the famous Gantt chart. Often referred to as the program Evaluation and Review Technique (PERT) an in its essentials as the Critical Path Method (CPM), this technique of planning and control has wide potential use in many applications. But PERT and its various refinements, like PERT/COST, have considerable potential for use in many aspects of planning and controlling operations (Koontz and Weihrich, 1994; p.648). For a company having the expanded supply chain PERT/ COST analysis should be performed in order to evaluate the effectiveness of supply chain. Value Engineering: A product can be improved and its cost lowered through value engineering, which consists of analyzing the operations of the product or service, estimating the value of each operation, and attempting to improve that operation by trying to keep costs low at each step or part. The following specific steps can be taken in order to improve the supply chain. 1.  Ã‚  Ã‚  Ã‚  Ã‚   Identify the costs for each part and operation. 2.  Ã‚  Ã‚  Ã‚  Ã‚   Identify each part’s relative contribution value to the final unit or product. 3.  Ã‚  Ã‚  Ã‚  Ã‚   Find a new approach for those items, which appear to have high cost and low value. (Koontz and Weihrich, 1994; p.648) Work Simplification: Work methods can be improved through work simplification, which is the process of obtaining the participation of workers in simplifying their work. Training sessions should be conducted in the company to teach concepts and principles of techniques such as time and motion studies, workflow analyses, and the layout of the work situation. (Koontz and Weihrich, 1994; p.648) Quality Circles The supply chain management should establish a group of people from the same organizational area who meet regularly to solve problems they experience at work. (Goldstein, 1985; p.504-517) Members should be trained in solving problems, in applying statistical quality control, and in working in-groups. A facilitator should work with each group consisting of six to twelve members. The QCs may meet 4 hours a month. Although QC members may receive recognition, they should also receive monetary rewards. Quality circles should evolve from suggestion programs. In both approaches, workers will participate in solving work-related problems. Although in suggestion programs the problems are usually quite specific, those dealt with by quality control circles are often more complex and require the involvement of several team members. The team should consist primarily of rank-and-file workers and sometimes it can also include supervisors. (Koontz and Weihrich, 1994; p.649) The Concept of TQM: TQM is defined as both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. It is the application of quantitative methods and human resources to improve all the process within an organization and exceed customer needs now and in the future. TQM integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach. (Besterfield, Michna, Besterfied Sacre, p.1) Possibilities for improvements of the downstream supply chain: TQM is based on a number of ideas. It means thinking about quality in terms of all functions of the enterprise and is a start is a start-to-finish process that integrates interrelated functions at all levels. It is a systems approach that considers every interaction between the various elements of the organization. Thus, the overall effectiveness of the system is higher than the sum of the individual outputs from the subsystems. The subsystems include all the organizational functions in the life cycle of a product, such as (!) design, (2) planning, (3) production, (4) distribution, and (5) field service. The management subsystems also require integration, including (1) strategy with a customer focus, (2) the tools of quality and (3) employee involvement (the linking process that integrates the whole). A corollary is that any product, process, or service can be improved, and a successful organization is one that consciously seeks and exploits opportunities for improvement at all level s. The load-bearing structure is customer satisfaction. The watchword is continuous improvement. (Ross) Hence following steps should be taken in order to improve the supply chain of the company: 1. Management Commitment: Top management must become convinced of the need for quality and must clearly communicate this to the entire company be written policy, starting that each person is expected to perform according to the requirement or cause the requirement to be officially changed to what the company and the customers really need. 2. Quality improvement team: From a team composed of department heads to oversee improvements in their departments and in the company as a whole. 3. Quality measurement: Establish measurements appropriate to every activity in order to identify areas in need of improvement. 4. Cost of quality: Estimate the costs of quality in order to identify areas where improvements would be profitable. 5. Quality awareness: Raise quality awareness among employees. They non-conformance. 6. Corrective action: Take corrective action as a result of steps 3 and 4. 7. Zero defects planning: From a committee to plan a program appropriate to the company and its culture. 8. Supervisor training: All levels of management must be trained in how to implement their part of the quality improvement program. 9. Zero defects day: Schedule a day to signal to employees that the company has a new standard. 10.  Ã‚  Ã‚   Goal setting: Individuals must establish improvement goals for themselves and their groups. 11.  Ã‚  Ã‚   Error causes removal: Employees should be encouraged to inform management of any problems that prevent them from performing error free work. 12.  Ã‚  Ã‚   Recognition: Give public, non-financial appreciation to those who meet their quality goals or perform outstandingly. 13.  Ã‚  Ã‚   Quality councils: Composed of quality professionals and team chairpersons, quality councils should meet regularly to share experiences, problems, and ideas. 14.  Ã‚  Ã‚   Does it all over again: Repeat steps 1 to 13 in order to emphasize the never-ending process of quality improvement. (Ross) Conclusion: Production management refers to all those activities necessary to manufacture products; it may also include purchasing, warehousing, transportation, and other operations. Operations management has a similar meaning, referring to activities necessary to produce and deliver a service as well as a physical product. It is important for the supply chain management to give importance to all of the above activities. Since a low level of performance from any part of supply chain can effect the whole process.   (Koontz and Weihrich, 1994; p.653) The method of operations research, which is the application of scientific methods to the study of alternatives in a problem situation to obtain a quantitative basis for arriving at the best solution, should be used. Other tools of production management such as linear programming inventory planning and control, the just-in time inventory system, and distribution logistics should be used to enhance the productivity of the Company. Other tools and tech niques such as time-event inventory system, engineering, work simplification, quality circles, total quality management, and a variety of computer-aided approaches can also be used according to the need. (Koontz and Weihrich, 1994; p.653) Strategic Sourcing in Purchasing and Supply Chain Management Essay Example Strategic Sourcing in Purchasing and Supply Chain Management Essay In the globalized era when most of the business organizations are involved in different business activities it has become inevitable for the firms independently perform all the functions. Most of the companies do not operate their supply chain and rely on other firms to perform the multi-faceted tasks. The successful and efficient combination of the operations of these firms provides the company with the competitive edge in the market. (Cook, DeBree, and Feroleto, 2001). Lummus and Vokurka   (1999) points out towards the need for the managers to understand the performance of all the stake holding firms in the supply chain. According to (Pohlen, 2003), this insight in the performance of each firm will enable the managers to develop measures in order to fulfil the demands of the customers. The main task of the supply chain management is to develop a strategy which can cater the need of the customers and is aligned with the company objectives (Pohlen, 2003). In this lieu it is important for the mangers to keep on measuring the performance of different parts of supply chain (Deloitte, 1999). It has been a proven fact that the improvement in the company’s performance cannot be undertaken with out improving the performance of its suppliers (Lummus, Vokurka, and Alber, 1999). The planning and information taking activities can be easily performed by the operations managers and senior executives it they have an up to date information regarding the performance of different supply chain firm and stake holders and the resources available to the firm. Authors (La Londe and Masters 1994; Lambert, Stock, and Ellram 1998; Mentzer et al. 2001) regard a supply chain as a set of firms involved in the upstream and downstream flows of products, services, information, and/or finances.   Mentzer et al. (2001, p. 4) described a supply chain as a set of three or more organizations directly linked by one or more of the upstream and downstream flows of products, services, finances, and information from a source to a customer. Thus, the nature of a supply chain is comprehensive so that membership is not limited to a supplier, a manufacturer, and a distributor, but open to any firm that performs various flow-related services (Mentzer et al. 2001). We will write a custom essay sample on Strategic Sourcing in Purchasing and Supply Chain Management specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Strategic Sourcing in Purchasing and Supply Chain Management specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Strategic Sourcing in Purchasing and Supply Chain Management specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The notion of production management has been transformed from the manufacturing activities and has expanded to activities as purchasing, warehousing, transportation, and other operations from the procurement of raw materials through various activities until a product in available to the buyer. The notion includes the process of delivering the services to the customers with the products. With the changing time the aspects covered are increasing, the process now also includes RD, value creation, marketing management, sales activities, accounting and finance. The operation management model constitutes of inputs and outputs. The list of inputs include, 1. customer needs 2. Information 3. Technology management 4. Fixed assets of the business 5. Human capital 6. Variable assets related to transformation process. Information and the physical factors play an important role for managers in order to produce outputs. Most of the physical assets remain unchanged. These include buildings, land, manufacturing plants, warehouses etc. Planning, operating and controlling are the important constituents of transformation process. The improvement in the system is also an important aim of the model. Outputs consist of products and services and may even be information, such as that provided by a consulting organization. (Koontz and Weihrich, 1994; p 633, 634) The international sourcing policy effects the corporate, marketing, purchasing, and other strategies.   It is important for the firm to connect the future objectives with corporate objectives and strategy. The purchasing function should also be undertaken in order to support the corporate objectives. It is often observed that the purchasing functions in the firms are undertaken without gathering proper and enough information. Also the purchasing decision of most of the companies are not undertaken in the line of the strategy of the company. It is also important for the companies to undertake strategic planning while undertaking the purchasing decision. Most of the researchers emphasize the need of aligning the purchasing function with the firm’s strategic planning process. In order to undertake effective planning according to the company’s goal it is important to plan and implement strategic planning more effectively at the departmental level. Some of the researches a lso pay great attention in establishment of the link between the customers and the suppliers as part of their purchasing strategy. The purchasing decision in the right direction can also help the company in acquiring the market leadership through cost reduction. â€Å"Purchasing’s contributions to corporate strategic planning include the following: monitoring supply market trends, interpreting the impact of these trends on the firm, identifying the materials and services required to support company and strategic business unit strategies, and developing supply options.† (Ellram and Carr, 1994) There are many techniques, which can be undertaken by the management in order to improve the quality of management process. Some of them are described below. Time-Event Networks: Time network analysis is a logical extension of the famous Gantt chart. Often referred to as the program Evaluation and Review Technique (PERT) an in its essentials as the Critical Path Method (CPM), this technique of planning and control has wide potential use in many applications. But PERT and its various refinements, like PERT/COST, have considerable potential for use in many aspects of planning and controlling operations (Koontz and Weihrich, 1994; p.648). For a company having the expanded supply chain PERT/ COST analysis should be performed in order to evaluate the effectiveness of supply chain. Value Engineering: A product can be improved and its cost lowered through value engineering, which consists of analyzing the operations of the product or service, estimating the value of each operation, and attempting to improve that operation by trying to keep costs low at each step or part. The following specific steps can be taken in order to improve the supply chain. 1.  Ã‚  Ã‚  Ã‚  Ã‚   Identify the costs for each part and operation. 2.  Ã‚  Ã‚  Ã‚  Ã‚   Identify each part’s relative contribution value to the final unit or product. 3.  Ã‚  Ã‚  Ã‚  Ã‚   Find a new approach for those items, which appear to have high cost and low value. (Koontz and Weihrich, 1994; p.648) Work Simplification: Work methods can be improved through work simplification, which is the process of obtaining the participation of workers in simplifying their work. Training sessions should be conducted in the company to teach concepts and principles of techniques such as time and motion studies, workflow analyses, and the layout of the work situation. (Koontz and Weihrich, 1994; p.648) Quality Circles The supply chain management should establish a group of people from the same organizational area who meet regularly to solve problems they experience at work. (Goldstein, 1985; p.504-517) Members should be trained in solving problems, in applying statistical quality control, and in working in-groups. A facilitator should work with each group consisting of six to twelve members. The QCs may meet 4 hours a month. Although QC members may receive recognition, they should also receive monetary rewards. Quality circles should evolve from suggestion programs. In both approaches, workers will participate in solving work-related problems. Although in suggestion programs the problems are usually quite specific, those dealt with by quality control circles are often more complex and require the involvement of several team members. The team should consist primarily of rank-and-file workers and sometimes it can also include supervisors. (Koontz and Weihrich, 1994; p.649) The Concept of TQM: TQM is defined as both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. It is the application of quantitative methods and human resources to improve all the process within an organization and exceed customer needs now and in the future. TQM integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach. (Besterfield, Michna, Besterfied Sacre, p.1) Possibilities for improvements of the downstream supply chain: TQM is based on a number of ideas. It means thinking about quality in terms of all functions of the enterprise and is a start is a start-to-finish process that integrates interrelated functions at all levels. It is a systems approach that considers every interaction between the various elements of the organization. Thus, the overall effectiveness of the system is higher than the sum of the individual outputs from the subsystems. The subsystems include all the organizational functions in the life cycle of a product, such as (!) design, (2) planning, (3) production, (4) distribution, and (5) field service. The management subsystems also require integration, including (1) strategy with a customer focus, (2) the tools of quality and (3) employee involvement (the linking process that integrates the whole). A corollary is that any product, process, or service can be improved, and a successful organization is one that consciously seeks and exploits opportunities for improvement at all level s. The load-bearing structure is customer satisfaction. The watchword is continuous improvement. (Ross) Hence following steps should be taken in order to improve the supply chain of the company: 1. Management Commitment: Top management must become convinced of the need for quality and must clearly communicate this to the entire company be written policy, starting that each person is expected to perform according to the requirement or cause the requirement to be officially changed to what the company and the customers really need. 2. Quality improvement team: From a team composed of department heads to oversee improvements in their departments and in the company as a whole. 3. Quality measurement: Establish measurements appropriate to every activity in order to identify areas in need of improvement. 4. Cost of quality: Estimate the costs of quality in order to identify areas where improvements would be profitable. 5. Quality awareness: Raise quality awareness among employees. They non-conformance. 6. Corrective action: Take corrective action as a result of steps 3 and 4. 7. Zero defects planning: From a committee to plan a program appropriate to the company and its culture. 8. Supervisor training: All levels of management must be trained in how to implement their part of the quality improvement program. 9. Zero defects day: Schedule a day to signal to employees that the company has a new standard. 10.  Ã‚  Ã‚   Goal setting: Individuals must establish improvement goals for themselves and their groups. 11.  Ã‚  Ã‚   Error causes removal: Employees should be encouraged to inform management of any problems that prevent them from performing error free work. 12.  Ã‚  Ã‚   Recognition: Give public, non-financial appreciation to those who meet their quality goals or perform outstandingly. 13.  Ã‚  Ã‚   Quality councils: Composed of quality professionals and team chairpersons, quality councils should meet regularly to share experiences, problems, and ideas. 14.  Ã‚  Ã‚   Does it all over again: Repeat steps 1 to 13 in order to emphasize the never-ending process of quality improvement. (Ross) Conclusion: Production management refers to all those activities necessary to manufacture products; it may also include purchasing, warehousing, transportation, and other operations. Operations management has a similar meaning, referring to activities necessary to produce and deliver a service as well as a physical product. It is important for the supply chain management to give importance to all of the above activities. Since a low level of performance from any part of supply chain can effect the whole process.   (Koontz and Weihrich, 1994; p.653) The method of operations research, which is the application of scientific methods to the study of alternatives in a problem situation to obtain a quantitative basis for arriving at the best solution, should be used. Other tools of production management such as linear programming inventory planning and control, the just-in time inventory system, and distribution logistics should be used to enhance the productivity of the Company. Other tools and tech niques such as time-event inventory system, engineering, work simplification, quality circles, total quality management, and a variety of computer-aided approaches can also be used according to the need. (Koontz and Weihrich, 1994; p.653)