Recommendations for Cambell Soup Company

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Campbell Soup Company is a multinational company manufacturing high quality soups and sauces, baked snacks and healthy beverages in the globalised market. In this report, provide the strategy that should take by Campbell to make their company produce good performance especially in target costing of the product, pricing technique that they use, total quality management which gives benefit for them, and applying JUST IN TIME philosophy in the company.


Task 1: Evaluate the current systems of serving customers and develop an effective TQM team to manage the front-line workers to resolve any problems faced by the end users. The team must also design a quality cost report that covers prevention cost and appraisal cost. It must include both the internal and external failures on the current level of defective products and services.

Total Quality Management consist of 3 words, each word have their own meaning. Total means all area for one thing that need to be cover by the system or the person or etc, Quality means degree of excellence implies comparison is not absolute and grade of serviced or product reliability, safety, consistency and customer perceptions. Management means the person or system whose manage the product or service in good condition. Total quality management means management centered on quality on the participation of everybody which aims at the customer satisfaction and at the improvement of the company’s personnel, of the company and of the society.

As usual, all the company who has registered their company will have their own team who manage the TQM in order to become a successfully company. There a lot of company already success by applying TQM in their company, one of them is a Campbell Soup Company is a multinational company manufacturing high-quality soups and sauces, baked snacks and healthy beverage in the globalised market. But, during nowadays, there a lot of companies become a competitor for Campbell because the same product that produces by Campbell and the other company. In order to make their product become the first choices of customer, I have been appointed to form a group to do some research how to increase the sale of Campbell Soup company product.

First step that should take by the company is performing a test to compare their product with other product. So they can do some adjustment on their product, because customer will choose the best product and use it as their routine product when achieve their satisfaction on that product. Second is making some necessary inspection on the product and the management. As a human being, sometimes they can make mistake when producing the product, so it will influence the sale of the product. By doing inspection on the management, they can audit what they should do on their management to make company become profitability. Besides that, they can develop the management and company system after the inspection done. After all this have been done, maybe they can become the number one choices from the customer and make the company gain more profit rather than previous year.

After doing some research on the Campbell Soup company, one of the key success of the company is make the customer receive what their should receive after buying the product of the company. After almost 150 years, there are still focused on delighting consumers with great-tasting foods and beverages that meet their evolving preferences, needs and desires.With sales over 8 million annual, shows that, Campbell produce a quality product, and the product come from three core categories which is Soup & Simple Meals, Snacks and Healthy Beverages. Year after year, Campbell become led by iconic $2.1 billion Campbell’s brand, their portfolio extends beyond soup to foods such as Pepperidge Farm cookies and Goldfish crackers; Arnott’s, Kjeldsens and Royal Dansk biscuits; V8 juices; Bolthouse Farms super-premium beverages, carrots and dressings; Plum Organics premium organic baby food; Swanson broths; Prego pasta sauces; and Pace Mexican sauce.

Based on the word from President and CEO, Denise Morrison, there want to make some adjustment or reshaping the company to drive sustainable growth and enhance shareholder value by implementing a dual mandate to strengthen their core business and expand into higher-growth spaces, including new categories, segments, channel and geographies like packaged fresh foods in the retail perimeter and organic simple meals for children, faster-growing international markets like China and Indonesia and channels outside grocery.

In addition, marketing management also play important thing that can influence the sale of the product become high. Marketing management should do some research based on the market now. The result of the research from marketing management, it can help Campbell Soup Company cut the unnecessary cost that use by marketing department and plan something new strategy to make the product of Campbell can enter the market either in the national or international.

As a TQM team, the most important part when doing research on the company is the financial figure of the company. Because it consist all sales, purchases, cost that have been done by the company especially in the Campbell Soup Company. In the report that should produce by TQM team is shows the quality cost report that covers prevention cost and appraisal cost and must include the internal and external failures on the current level of defective product and services. By looking on the cost that has been found by the team, it can help management and shareholder evaluate the company. Besides that, they can look into which area that high cost and make some adjustment. If the cost that produce by the company high, it will affect the profitabil.ity of the company. Other than that, they can determine whether their target of selling product is achieved or not. As conclusion, the quality of the product that produce by Campbell Soup Company can be control, so it will help the company become stay longer in the field of business.

Task 2 : Develop a performance management framework to be supported by managers and other employees where their performance are recognized with rewards for achieving targets and what are the penalties to e imposed for the short-fall.

Nowadays, everyone compete with the others to be the number one for field they have involved in. But, if they didn’t have any goal or target in their life, it will become worse for them and do a thing like nothing. Same also for the company, performance management should be frame by the CEO of the company in order to maintain the quality of their management and put their management performance quality never ending. As a big company who has a lot of branch around the world, performance management framework should be applied by Campbell Soup Company as we know that product that produce by Campbell Soup company across over 100 countries in the world.

Some people mistakenly assume that performance management is concerned only with appraising and rating a board, management and staff performance. Actually, all the activity is the only one part of the overall process. First framework should be done by Campbell is planning work and setting expectation. As we know, all company has their own schedule when do job whether in the manufacturing company or servicing company. When planning work has been plan, it’s easy for the staff to cover which section that still needs to be cover or complete, because different department come with different staff and product and the result of timing to complete the job will be different also. Because of planning work also, it can make the management or CEO or shareholder can make some setting on their expectation that they have been set early.

Second is continually monitoring performance, Campbell should appoint one person who have integrity on his job to monitor performance by the staff of the company. Job for that person is monitoring performance, provide feedback, and conduct progress review from all jobs that should be done by their staff. When the person like this appear in the company, so KPI of company can be achieve easily and accurately based on the mission of the company. Thirdly is developing the capacity to perform, means when identified which section that have problem in order the complete their task, support from other staff will play important role for the company. They can backup their friend when this happen in the company.

Besides that is periodically rating and recording performance of completeness task. Campbell Soup Company needs this step to evaluate the actual figure of their company. All task should be record, it will useful in the future of the company. When recording of task has been done, it will have the company to put rate based on the job done by the members of the company. For example, Campbell Soup Company has department who produce sauces, so top management can be determine whether they have produce good sauces or not based on the rating that have been evaluate by them.

In addition, rewards for those give full commitment in the company should be produce by Campbell Soup Company in order to appreciate them for work in the company. There some worker does their job with full commitment and help the profitability of the company, there should receive some awards from the company. Besides that, it can the worker stay longer in the company because they know, if they work with full commitment, follow the rule that have been set by the company, finish the task was given they will receive an honor from top management, so they will feel enthusiastic when working. But, for those do their job incomplete or make some mistake should be imposed if they do the same mistakes twice or more. This action is needed because it will help the worker who do the mistake will change their personality especially complete the task that his receive from the management.

As conclusion, Campbell Soup Company is a big company; small mistakes will affect all the operation of the company. So, by looking in the framework above, maybe it can help to avoid the company gain looses on the business. Besides that, this framework can become one of most important thing in the company to make the company profitability increase.

Task 3: Just In Time Philosophy

As a one of company that receives a lot of competition in the world, Campbell Soup Company should take a new step and apply it into their company. Just In Time philosophy is a one option that can make Campbell become more better rather now. JIT focus on the elimination of waste in the whole of manufacturing. JIT defined as the production of the minimum number of different units, in the smallest possible quantities, at the latest possible time, thereby eliminating the need for inventory. But, JIT is wanted to make product just in time and not produce on time.

Based on the philosophy of JIT, there are few steps that should consider if Campbell wants to make this philosophy as a one key of success of their company. A first step is obtaining commitment from top management. In the basic of company, top management is a shareholder of the company, but commitment from them also needed, not only come from worker/employee. If management, show they also involve in the production of the company, it’s easy to gain co-operation from worker, so as a result, production of product will not be delay because of problem or anything.

After co-operation from top management and worker have been gain, the next step is produce a final assembly among them. During that time, highlight the important things; focus on the point that will produce big problem. For example, reduce set up time when producing product and how to achieve fixed model of production. This assembly provides important information for Campbell Soup Company to make some recovery on their manufacturing of the product. Next, when the producing of the product come to the final stages, worker or management can look into that whether the productions balance with the rate that have set during the final assembly. During this, correction maybe needed upon on mistake occur when producing the product.

Other step is remove work in progress from the storage rooms and put it on the shop floor (point of storage. After taking this step, all work in progress maybe can be complete it just in time. Delay in producing will influence the sales of the company. Besides that, remove purchased inventory from the stores room and put it on the shop floor (Point of use storage) easy for the start to see the actual purchasing if the inventory out from stores.

As conclusion, if Campbell Soup Company apply all this in their company, its easy for them to manage it and achieve the target or goal depends on what they want the company. JIT help management of the company to make the performance of the company from zero to good.



2) AIDT - Just-In-Time Manufacturing - September 11, 2006

3) note of TOTAL MANAGEMENT QUALITY receive from lecture.