Diageo Scotch Producer 1.0 INTRODUCTION 2.0 PRODUCTS
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Diageo Scotch Producer 1.0 INTRODUCTION Diageo Scotch Producer is multinational alcoholic beverage company which has its head office in London (United Kingdom). Guiness and Grand Metropoliton merge their companies and forms Diageo Scotch Producer. It is known as the world’s largest producer of spirits whose chief products are wine and beer, vodka, rum and whisky. Diageo is also the world’s largest producer of whisky which manufactures in 28 distilleries and also in two grain distilleries. Its products are sold in 180 counties. It has several offices in around 80 countries. It has approximately 25000 employees in the world which is huge in count. Diageo started treading on December 17, 1997 at the London Stock Exchange. As of now it is the 12th-largest company on the London Stock Exchange on the basis of market capitalization which recorded almost £34.5 billion on 2011. It has many famous alcohol brands like Johnnie Walker, Crown Royal, J&B, Ciroc and Ketel One vodkas etc. In Scotch production in the world Diageo holds the largest number of shares. In 2012, the accurate sell of Diageo was 10,762 £ million and its growth increased 6% compared to 2011. 2.0 PRODUCTS Diageo has many brands that are very famous and acceptable by consumers. The products which are produced by Diageo which are given below- SPIRITS- The Diageo brand areas is 17 of the famous 100 premium distilled spirits brands in the world, and seven of the top 20 premium spirits brands. BEERS- It’s one of the second largest product is beer. WINES-Chalone Vineyard, Blossom Hill, Justerini & Brooks, Vignobles Internationaux, Piat d'Or, Rosenblum Cellars, Dom Pérignon, Sterling Vineyards. These famous wines are produce by Diageo and they are very likable by consumers. 3.0 DIAGEO’S MISSION- Diageo mission is customer centric. It understands the customers and their requirements and then researches, analyzes and develops new product as well as polishes its existing product. INNOVATION- Innovation is the reason for the success and popularity of their brands among customer because they know how the customers taste is changing with generation to generation. TRUST- Diageo one of the main factor in successful business is trust. They always focus to trust the customer taste. It is not only with new customers but also with existing customers. They maintain this factor with its research and development management and best services. EMPLOYEE MANAGEMENT- It’s another mission is employee improvement because it believed that good employee is one of the basic factor of the successful organization so they improve their employees by time to time training and monitoring. 4.0 DIAGEO KEY PERFORMANCE INDICATORS KPIs (key performance indicators) present a bunch of scope centralized on those conditions of organizational execution that are the most hard to do for the present and future goals of an organization (Carol Taylor Fitz-Gibbon 1990). There are only a few KPIs in an organization, and they have certain aspects. Diageo follow those KPIs to achieve their mission. 2011/12 2010/11 Change Financial summary £m £m % Net Sales 10,762 9,936 8 Marketing spend 1,691 1,538 10 Operating profit before exceptional items 3,198 2,884 11 Operating profit 3,158 2,574 18.4 Basic earnings per share before exceptional items (pence) 94.2 83.6 11.2 2011/12 2010/11 Change Financial summary £m £m % Basic earnings per share(pence) 77.8 76.2 2 Recommended final dividend per share (pence) 26.9 24.9 7.4 5.0 FISH BONE DIAGRAM SHOWS THE CAUSES OF A SPECIFIC EFFECT. CAUSE EFFECT Process People Equipment Problem Material Environmen Managemen t t Fish Bone diagram on the basis of Diageo services 6.0 FLOWCHART SHOWING CUSTOMER SALES ORDER FOR DIAGEO SCOTCH Customer visits the liquor shop for Diageo products Customer checks for his favorite Diageo liquor product Is Product Customer seeks for available? alternative Diageo product Customer chooses the liquor Purchase order generated Customer pays the money Home Customer collects Delivery the product Required? Product is delivered Customer leaves Customer details the store recorded Inventory Updated END 7.0 AFFINITY DIAGRAM This is a technique that can be used to collect large amount of data and arranged in groups based on customer requirement ( Kawakita.j 1960). The below shown affinity diagram represents the Diageo’s activeness in customer expectation. MAINTAING A SUCCESSFUL CI PROCESS Understand Provide Establish Getting Improve customer training comfort management communication requirement commitment in all areas Consult Know quality Establish Involve middle Grant access to customer improvement measurement mang. & top information tool system mang. Steering committee Interpret Investigate Develop Employee customer other effective Establish involvement requirement continuous connective consistent correct t in improvement action system reward system speca& design effort Break down Provide job barriers is Provide Make project security operational by project freedom to fail definition of improvement output Provide middle Determine managers with Identify process staff support customer capability Define Provide clear process program goal Provide the time for Middle Mgr. to participate Create a steering committee with real power 8.0 FMEA Analyses of Diageo’s services Failure Mode and Effects Analysis (FMEA) is a model used to find out defects based on their severity, frequentness and detection (Dyer, Morris K, 2001). It focuses on the impotence in the design or method currently followed, and prioritizes and makes consecutive efforts to improve the most risky areas. In our case this test has been performed on our Diageo services and the following defects have been found and mitigated. Sev Occur Dete Risk Prod Poten Poten erity Poten rence Curr ction Prio Action Mitigati uct tial tial tial ent rity Recom on Func Failur Effect (1- Caus (1- Con (1- Nu mende /Respo tions e s of 10) es of 10) trols 10) mbe d nsibility or Mode Failur Failur r Proc e e ess RP Step N s The Diag Bad Produ 8 Fault 5 Mon 9 360 Quality manag eo qualit ction y itor of ement prod y of depart produ in product of ucts produ ment ction onc s product ct not mach e should quality respo ine ever be must nding was y 4 improve recheck used. mon d so the ths that service custom s er is always Respon satisfie sibility – d. manag ement Team. The Diag Probl Marke 8 Effect 4 Mon 7 224 Proper system eo em in ting ive itor marketi of prod distrib depart mark in ng marketi ucts ution ment eting onc strategy ng must not soluti e should be respo on ever be recheck nding not y 6 followe ed provi mon d. ded ths. Respon sibility – manag ement Team. As it can be seen, that two potential failure modes have been found out. The highest RPN here in the two tests is 360 which denote the highest priority to improve the quality of services. 9.0 CUSTOMER REQUIREMENTS (WHATS) Following are the Customer Requirements from Diageo in the four basis aspects in which it provides its services Whats Meaning 1 Quality of Products The better the quality is the more the customers will tend to buy that liquor. 2 Brand name Customers will definitely look for the better brands as they have of reputation for serving better quality of liquors. 3 Taste The taste of the liquor plays a great role for the choice of Scotch selection. 4 Effect on Health If any liquor affects the health badly then people will stop getting attracted to it. 5 Cost of Product Customers may compromise on very high quality liquor having a high price and would prefer medium quality liquor with a comparatively reasonable price. 6 Product Makeover Makeover of the products also gives an impression to the customer. 7 Innovation Company must be innovative enough to bring changes in its products which can attract potential customers. 8 Variety of Products The company should have a various range of products to satisfy the customer needs. 9 Globally Procurable Any parts of the world would be able to buy the liquor of their favorite brand. 10 Age of the Product In order to store the liquor for a good number of years the company should preserve the liquors using proper procedures. 11 Liquor Style The choice of drinks depends entirely on the choice of taste of the customer or the occasion. 12 Aftertaste flavors Customers favors that liquor which have a good aftertaste flavors and have a long lasting effect 13 Customer Satisfaction The company should always try to research on constant innovation in taste and varieties of products so that the confidence of the customer grows. 14 Proper Concern The Company should be capable enough and rehearse assiduousness. 10.0 TECHNICAL REQUIREMENTS (HOWS) Following are the methodologies which Diageo applies in order to fulfill the customer requirements. How’s Meaning 1 Employee Training Employee training required so that they can work in a professional environment 2 Testing of Controls Mechanisms sketched out by its core management team over the various products in the market 3 Diversity in workforce Diageo consists of employees having diversified cultures and languages 4 Multitalented Employee Employees with several skills. 5 Sales Skills Skills required to sale a product or service. 6 Communication Skills Excellent communication skills. 7 Analytical Skills Ability to analyze complex problems 8 Ability to Synthesize Synthesize business details from different sources. 9 Creative Ability Creativity 10 Initiative Its initiatives throughout its operations, clients, supply chain and association. 11 Presentation skills Ability to represent well 12 Professional Team Able to perform all the jobs with a high satisfaction rate. 13 Knowledge of Industry Having experts with thorough erudition in various industries 14 Environmental sustainability The investment done strategically in environmental sustainability 11.0 HOUSE OF QUALITY The attached excel file below shows the House of Quality designed using the above parameters (WHATS and HOWS).