product quality – OM in the News

Restaurants Flex Their Strategic Muscles to Fight Inflation

After COVID, inflation is now a major threat to restaurants’ financial viability.

How have they responded? By relying on their competitive strengths in operations. Big chains have used their size to control purchasing costs, whereas mom and pop restaurants have emphasized their authenticity and superior quality. Both are attempting to maintain customer loyalty and mitigate new threats with existing assets and resourcefulness.

Video Spotlight: Restaurants Grapple with Rising Costs (September 15, 2022, CNBC Television)

This post is based […]

By Corinne M. Karuppan, Ph.D.|2022-12-07T21:49:13+00:00December 8, 2022|Tags: competitivness, economies of scale, mix flexibility, product quality, service quality, strategy, value analysis|

McDonald’s Cancels the McPlant

After a lackluster six-month test of the McPlant product in 600 U.S. restaurants, McDonald’s has pulled the item from its menu across the U.S. citing low sales.

In February 2020, OM in the News reported that Impossible Foods had bowed out of supplying plant-based burgers to McDonald’s, citing capacity concerns. For Beyond Meat, which took on the contract to supply the McPlant patty, the loss of this lucrative contract will no doubt have serious repercussions.

Video Spotlight:

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By Lisa M. Spencer|2022-09-19T05:03:13+00:00September 21, 2022|Tags: capacity planning, external environment, product design, product quality, service design, strategy|

Contaminated Baby Formula: The High Costs of Poor Quality

At the Sturgis plant, contaminated baby formula led to serious illnesses and a crippling shortage (see earlier post).

Sloppy procedures, deficient product testing, and a company culture prioritizing output quantity over quality were the precursors to a widespread crisis that could have been prevented. The FDA’s nonchalance and a lack of swift, corrective action have imperiled the lives of many and cast doubt that all root causes of the problems have been eradicated.

Video Spotlight:

By Corinne M. Karuppan, Ph.D.|2022-09-08T21:37:51+00:00September 10, 2022|Tags: costs of quality, product quality, product recall, quality control, six sigma|

New York Airports: From Disgrace to World Class

La Guardia was often described as one of the worst airports.

Today, it is one of the best airport buildings in the world. After decades of neglect and underinvestment, La Guardia, JFK, and Newark airports are being transformed into world class facilities. It is about time! Incoming tourists’ first impression of New York City was extremely unfavorable and embarrassing to its residents. The challenges involved in the renovations are substantial, but the Port Authority’s determination and efforts to recast New York […]

By Corinne M. Karuppan, Ph.D.|2022-08-08T22:35:37+00:00August 10, 2022|Tags: competitivness, product quality, project management, service quality, strategy|