Wednesday, November 11, 2009

Quality Control and Improvement 11/12/09

Although Walmart hasn't been known for having the best quality merchandise in the past it does however attempt to incorporate quality measures in it's companies procedures. Walmart is a retailer not a manufacturer and its quality control measures are differentiated. Walmart actively participates in its suppliers quality control measures in order to achieve better quality items on their shelves. Before merchandise is ordered from a specific supplier an initial inspection of a sample is required. I researched ten companies that supply Walmart from toothpaste manufacturers to food suppliers and most use a three sigma system. In the past Walmart has had to enforce tighter quality control measures on it's Chinese suppliers. Many of the Chinese companies now utilize continuous improvement methods for managing their quality control efforts.

- Source: Thomson Reuters

Sunday, November 1, 2009

Service Process Design 11/1/09

-Service Product Bundle:

The service product bundle consists of explicit services, implicit services, and facilitating goods. Walmart being in the retail as well as grocery business lacks partially in the services end of the product bundle. Walmart's merchandise is defined as the actual facilitating goods in the product bundle. The implicit service can be the satisfaction derived from the monetary savings achieved by purchasing their products as well as having particular needs satisfied. The explicit service is the most difficult to clearly define but in a Super-Walmart's case (meaning having groceries) tangible services can be having meats, sandwiches, etc. prepared at the deli. Also included can be having knowledgeable staff located in the store to assist customers. Most of Walmart's hardware departments offer paint mixing or blending as well as key cutting services both can be considered explicit services. The book depicts businesses such as these as being about ninety to ninety five percent goods and five to ten percent services.