Risk Management and Quality Control at Cadbury

The provided assignment focuses on two critical aspects of a business entity: Risk Management and Quality. It explores how Cadbury manages risks and ensures quality control through various approaches such as Total Quality Management (TQM), Lean production, and Kaizen. The assignment also examines the impact of quality issues on the brand image and value of Cadbury.

Quality, Risk and
Procurement Management

Table of Contents
SECTION 2: BUSINESS DESCRIPTION OF CADBURY...........................................................1
SECTION 5: RISK MANAGEMENT.............................................................................................2
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

SECTION 2: BUSINESS DESCRIPTION OF CADBURY
Cadbury is a confectionery company engaged in manufacturing and provision of a wide
variety of products to customers all across the globe in order to gain high satisfaction from them.
The offerings of this entity include bars, bags and boxes, chocolates, ice creams, roll, beverages,
biscuits, desserts etc. Among all of these also, the entity has wide array of items so that people
can choose products as per their choice and convenience (Myerson, 2018).
The offerings of Cadbury are available in a number of sizes so as to make it affordable
for all sections of society. The most famous and well regarded brands of this multinational
corporation are Dairy Milk, Caramel, Crunchie, Boost, Curly Wurly, Milk Tray, Heroes, Fudge,
Chocolate Buttons, Wispa etc.
At present, Cadbury offers its chocolate and other confectionery products to customers
within more than 40 nations across the global territory while the manufacturing operations of this
corporation takes place within over 15 countries.
(Source: CADBURY 2017 FACT SHEET, 2019)
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Illustration 1: CADBURY 2017 FACT SHEET

Within the confines of Australia, the chocolate brands of Cadbury include Cherry Ripe
Bar, Freddo, Crunchie Bar, Roses Boxed Chocolate, Time Out Bar, Favourites Boxed
Chocolates, Cadbury Dream Block, Boost Bar etc. Over time, many of the brands of this
corporation have gained success within Australia. Out of all these, company's Dairy Milk stays
the most renowned and famous among the population of the respective nation.
The quality component of Cadbury is clearly segmented into 3 aspects, namely, Quality
Planning, Quality Assurance and Quality Control. Quality Management System (QMS) can be
referred to as the procedure that is taken into use by the respective corporation in order to ensure
an atmosphere of safety and security within the global operations of this company (Huang and et.
al., 2019). Further, this system also provides assistance in adhering to the standards and measures
associated with maintenance of quality. In this regard, the review of internal QMS is done on a
constant basis by some legal bodies with a view to ensure alignment with laws, legislations, ISO
standards, regulations etc.
SECTION 5: RISK MANAGEMENT
To rectify the quality issues that have been identified in the premises of Cadbury, the
management of this corporation has applied the principles of Total Quality Management in
company.
Total Quality Management
This is an effective system of management which tends to focus upon making the
organisation customer centric by indulging the entire workforce in the process of continuous
improvement. This is a strong method of maintaining quality within the organisational premise
by tactically accumulating the data, strategic course of action and communication (Rostamzadeh
and et. al., 2018). This is aimed at making quality assurance and management an internal part of
company. Cadbury is making use of this technique in order to rectify the issues in quality that
have come in highlight in last some years. This corporation is applying all the 8 principles of
TQM within the operations of entity, especially production, so that high quality products can be
made accessible to people across the globe. Such principles are briefly explained below:-
Customer-focused:
The quality of an entity is finally decided by the customers. They are the decision makers
regarding whether or not the efforts of corporation (example: training sessions for employees,
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integration of quality into product designing, update of quality management software) to
maintain quality are worth it.
Overall worker engagement:
This principle applied within Cadbury focuses upon the engagement of all the employees
in operations aimed at the accomplishment of predetermined goals and objectives. This takes
place only when a positive and healthy working premise is provided to the staff. For facilitation
of this, Cadbury enforces High Performance Working throughout the organisational premises.
Process-centred:
This is one of the most crucial principles of TQM as this is concerned with process
thinking. The production and other essential processes are made clear to all the employees to
avoid discrepancy. Further, performance measurement is constantly carried out within Cadbury
so that there is least variance between actual and desired performance.
Integrated system:
Even though an entity consists of several functional specialities organised within
vertically structured departments, generally it is the horizontal procedures which interconnect
such functions within Cadbury.
Strategic and systematized approach:
One of the critical aspects of QMS is the structural approach that is adopted by Cadbury
in order to attain the vision and mission of corporation. This procedures is referred to as strategic
planning and constitutes the development of a plan which incorporates quality into the
organisational culture (Friday and et. al, 2018).
Continuant improvement:
This is a significant component of TQM which drives the respective corporation to
undergo constant improvement with a view to meet the expectations and needs of stakeholders
and customers.
Fact-based judgement devising:
It is essential for an entity to carry out performance measurement in order to enhance the
procedure of proper decision making and attain consensus.
Communication:
At the time of an organisational change or for the effective facilitation of daily business
activities, strong communication is vital within an entity. This is used by Cadbury in order to
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boost the morale of staff, thereby encouraging them to work in a manner which ensures proper
quality management at all times.
Further, the organisation also makes use of Kaizen and Lean production as best practice
models to ensure quality in managerial decision making process.
Lean production
It can be referred to as a structural approach used in operational management for waste
minimization that ultimately aids in inflating the quality of offerings. This is associated with the
effective usage of manpower and resources in order to accelerate the efficiencies (Heldman,
2018). There are 5 principles in this quality management technique, namely, determination of
value from customer’s perspective, flow creation, mapping of value stream, Pull system
establishment and pursuing perfection by way of continuous process improvement.
Kaizen
It is an ongoing approach which aids the company to inflate the quality of its offerings.
Hereby, the commodities of a corporation are enhanced with the passage of time by giving due
focus on quality of the offerings (Fewings and Henjewele, 2019). This helps Cadbury to take
managerial decisions which result in acceleration of quality within the organisational premises. It
makes it easier for the corporation to meet the needs and demands of customers. Here, delivery
methods are consistently improved in accordance with efficiency, effectiveness and flexibility.
This approach is ascertained to be beneficial for the corporation to ensure its sustainability within
market place and make effective relations with customers.
CONCLUSION
The above assignment discussed the two most essential and significant aspects of a
business entity, namely, Risk Management and Quality. The quality management within the
respective corporation depicted that the entity abides by a customer driven approach aiming at
constant improvement of business operations. Further, it has been analysed that the organisation
is undergoing certain quality issues which have been hampering the brand image and value of
corporation. To deal with this, the respective entity is ascertained to be making use of Total
Quality Management which consists of a number of principles ensuring the alignment of
production operation with the standards of quality.
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REFERENCES
Books and Journals
Fewings, P. and Henjewele, C., 2019. Construction project management: an integrated
approach. Routledge.
Friday, D. and et. al, 2018. Collaborative risk management: a systematic literature
review. International Journal of Physical Distribution & Logistics Management. 48(3).
pp.231-253.
Heldman, K., 2018. PMP: project management professional exam study guide. John Wiley &
Sons.
Huang, H. and et. al, 2019. Multi‐Attribute Procurement Auctions in the Presence of Satisfaction
Risk. Production and Operations Management. 28(5). pp.1206-1221.
Myerson, P., 2018. Lean Demand-driven Procurement: How to Apply Lean Thinking to Your
Supply Management Processes. Productivity Press.
Rostamzadeh, R. and et. al, 2018. Evaluation of sustainable supply chain risk management using
an integrated fuzzy TOPSIS-CRITIC approach. Journal of Cleaner Production.175.
pp.651-669.
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