Executive SummaryThis report is based on Fantastic Foods Pty Ltd. , an Australian company that manufactures and markets noodles. In March-April 2012, the company issued a product recall for two of its noodles brands. The recall was issued after customers complained that the noodles had a stale taste that they (the noodles) were accompanied by an unpleasant odour. In this report, the writer argues that the recall was the culmination ineffective operations management. Most specifically, the report identifies the lack of quality management systems as the apparent gap in operations management that led to the product recall.
The lack of effective management system is identified as the main cause of the controversy that hit the company because preliminary findings published by the Australian Competition and Consumer Commission indicates that the cooking oil used in making the noodles may have been responsible for its unsavoury qualities as evident in the reported the taste and odour. The report also identifies the steps that Fantastic Snacks took in order to remedy the situation, and specifically identifies several operations management concepts that are applicable in the case study.
The concepts include total quality management, supply chain management, risk management, and inventory and capacity management. The report recommends that the featured organisations needs to improve several aspects of its operations management, which have been identified as: quality management systems; project management; and the roles of the project manager. Specifically, the report recommends that Fantastic Snacks need to advance its use of quality management systems in order to avoid a recurrence of a scenario that culminated in a product recall. Further, the report recommends that risk management be put in place in order to enable the organisation identify activities or operations that need to be subjected to project management.
Finally, the report recommends that the project manager at Fantastic Snacks need to work with other departments most specifically in procurement, human resource, and marketing since the objectives of operations management cannot be attained without involving all such departments. Rationale for the case studyCase studies are touted by Voss, Tsikriktsis, and Frohlich (2002) as providing ‘excellent means of studying emergent practices’, since they build on theory (p.
199). Similar sentiments are shared by Coughlan and Coghlan (2002, p. 221), and Bertland and Fransoo (2002, p. 243). This case study is based on Fantastic Snacks Pty Limited (hereunder Fantastic Snacks), an Australian company that is fully owned by San Remo Macaroni Company Pty Ltd. In the March-April 2012 period, the company recalled two brands of its noodles products due to what was described as ‘an unpleasant odour and stale taste’ (Australian Competition & Consumer Commission (ACCC) 2012, n. pag). Initial investigations indicated that the product defects were cause by the chemical compositions of the cooking oil used during the manufacturing processes of the affected products.
On closer look however, the defects reveals a deeper problem that this report links to the absence of a critical quality management system especially considering the mass customization of noodles and the risks posed by such form of mass production. Mass customization impacts on operations management since the operations manager faces more challenges in ensuring that the produced goods meet customer quality expectations (Ahstrom & Westbrook 1999, p. 264; Duray 2000, p. 315; Muditha, Senanayake, & Little 2010, p.
283; abd Hart 1995, p. 40).