QUALITY ASSURANCE

As the largest fast-food chain KFC is committed to serve only Finger Licking' Good food.
Through a series of stringent food safety procedures, we provide customers with high quality
products including our Original Recipe fried chicken with 11 secret herbs and spices.

OUR PRODUCTS

Our quality control begins from the supply of all the raw materials. An annual supplier audit is
conducted by an international third party auditing company appointed by YUM. Audits are also
carried out by a team of food technologists from the KFC Quality Assurance Department to
ensure food safety, quality systems, packaging facility, distribution and transportation.

Temperature & Shelf-Life Control

Our products are cooked at high temperatures, well above the minimum set by World Health
Organization (WHO), in line with our strict temperature and shelf-life control, to ensure that food
served are safe and fresh.

Product Handling

Stringent procedures are implemented to minimize risk of cross-contamination between raw and
ready-to-eat products.

Nutrition & Health Assurance

Nutritional information of KFC products are provided to assist customers to plan a wholesome
and balanced meal. 100% cholesterol free non-hydrogenated palm oil are used to fry all
products.

New Flavors & Concepts

A team of food technologists constantly experiments with new flavors and concepts to provide
more value, and healthy options for our customers.

SUPPLIER QUALITY

We constantly monitor our suppliers' performances through submission of quality reports that
are reviewed by our regional franchisor.

● Quarterly QA evaluations are also conducted by our food technologists on our in-house
suppliers.

● Our chicken suppliers are closely monitored by the Department of Veterinary Service
and chickens from KFC poultries are slaughtered by State Islamic Department certified
personnel to ensure that Halal procedures are met

RESTAURANT QUALITY

Every KFC restaurant throughout Malaysia and Brunei are audited three times a year by our
team of QA executives based on the main attributes for KFC restaurant excellence - CHAMPS.

● C - Cleanliness

● H - Hospitality

● A - Accuracy

● M - Maintenance

● P - Product Quality

● S - Speed of Service

This YUM-owned audit program covers all aspects of CHAMPS such as cleanliness and
maintenance, sanitation and personal hygiene as well as product quality. It also takes
into account the speed of service, hospitality, personal safety, training and
documentation.

All KFC restaurants are audited twice a year by YUM-appointed auditors from
international firms to focus on food safety practices.

To gather direct feedback from customers, an online survey program is used. Here,
customers can rate and comment on the cleanliness, staff friendliness, speed of service,
order accuracy, food taste and overall satisfaction. The results from both internal and
external audits, as well as customer surveys will then be used to ensure compliance and
continuous improvement.

SANITATION & HYGIENE

A specific daily operations standard is implemented for sanitation of equipment and
utensils to ensure food preparation is free from dangerous germs. Only food-safe
equipments and easy-to-clean utensils are used during food preparation.

Every employee working in the restaurants are required to attend the Food Handlers
Course for training and certification as required by the Ministry of Health (MOH).
Restaurant teams are also vaccinated against typhoid upon employment and again once
every three years.

Adequate handwash facilities are provided and strict handwashing procedures are
implemented to ensure cleanliness. No bare hands policy is also implemented, where
single-use disposable gloves, sanitized scoops or tongs are required when handling
ready-to-eat products.

SALES PROMOTION
Sales promotion is a process that involves all the motivation tools which are utilized by
the firm to complement and highlight advertising; the sales force action, and to stimulate
more rapidly generously proportioned purchase of a good or service often locally and in
anon-permanent way.

Consumer promotion: KFC uses A direct, indirect or imaginary advantage such as

sample coupons, rebates, refund etc. that is offered is to customers to encourage the
purchase of a product in this consumer promotion.

Sales promotion also helps to promote customer awareness with so much competition
from other fast food chains, KFC needs to promote their menu items because they are a
bit more expensive but they are of better quality. If customers try they will be attracted by
the price and at the same time become aware of the quality.

KFC is trying to promote at a good price to grab customer’s, including new customers,
interest and attention so that when it goes back to a regular price, the customer won’t
forget about because they have already tried it . In that way, future demand for the
product is created.

KFC uses internal audit techniques in order to assess and evaluate company’s internal
performance. It also helps in formulating strategies for them. This audit includes all the
managers at all levels to participate in the audit of the company.

External audit includes the external environment assessment. It is a completely professional area
in any firm to assess the opportunities and threats that the external environment poses. All the top
managerial staff and also few experts are brought together to perform these functions. This
assessment is even more important to company than internal assessment or any other because the
progress, survival of the company is dependent upon that.

SWOT ANALYSIS OF KFC

STRENGTHS:

Strengths describe the factors that which the organization is good at and what
separates it from its competitors.

–Strong global presence: With a presence in over 130+ countries and with 21,000+
stores, KFC has an impressive global presence.KFC is the world’s 2nd largest restaurant
chain and market leader in a majority of the countries in the Non-veg food segment.

–Loyal Customer Base: KFC has its own loyal follower base and all thanks to its secret
chicken recipe. It’s the taste and the crunchiness of KFC’s chicken that is loved by the
consumers.

–Variety in Menu: One of the major strengths of KFC is the variety of food that KFC
offers to its customers. KFC tweak’s its menu and food offerings, basis the region in
which it operates. For example – KFC offers veg food in India just to cater to vegetarian
customers along with chicken lovers.

—KFC’s Secret recipe: Sanders’ Original Recipe of “11 herbs and spices” is one of the
most famous trade secrets in the catering industry. A copy of the recipe, signed by
Sanders, is held inside a safe inside a vault in KFC’s Louisville headquarters, along with
eleven vials containing the herbs and spices.

WEAKNESS:

Weaknesses stop an organization from performing at its optimum level. They are areas
where the business needs to improve to remain competitive:

–Supply chain and Distribution issues: Early this year, KFC has faced a major
distribution issue with the delivery of the chicken. This issue became so big that it led to
the closing of some of its stores in the UK.

It took a KFC a lot of logistical and marketing effort to come out of this coup.

In order to avoid facing the same issue in the future, KFC needs to take extra care of its
supply chain and distribution of its raw materials like Chicken, spices etc.
–Managing Franchisees: Franchisee management is one of the critical issues in the
success of the fast food chains and due to conflicting operational issues between KFC
and its franchisees many of its outlets got closed since its inception.

OPPORTUNITIES:

–Expanding to new Geographies: Emerging economies, changing lifestyle of

consumers and their increasing buying propensity is allowing fast food giants to explore
new geographies to increase their market share and revenue.

–Exploring new food items in Menu: Catering to the changing food demands and
needs of the millennials, KFC has a big opportunity to introduce healthy foods in their
menu that are low in fats and calories.

THREATS:

— Changing consumer food trends and preferences: Due to the emergence of

Millennials, the food trends and preferences are changing. Consumers are preferring
foods that are healthy in nature (low in fats and calories).

These changing food preferences of the consumers are putting additional pressure on
the fast food giants like KFC.

— Food quality challenges: Food quality is an important challenge before KFC. KFC
has faced criticism in the past as well for the quality of oils it uses for cooking its food.
Also, the laws related to food quality have become quite stringent in different countries
and is becoming a major challenge for fast food chains.

— Competition from global and local players: Despite having grown very fast during
the past few years, it is still not at number one. KFC faces stiff competition from not just
global players but also local players as well. Competitors are introducing new food items
to their menu to grow their market share and customer base and KFC too needs to be
on its toes to beat the competition.

Operation Management
 Operations management is the administration of business practices to create the highest
level of efficiency possible within an organization. It is concerned with converting
materials and labor into goods and services as efficiently as possible to maximize the
profit of an organization. Operations management teams attempt to balance costs with
revenue to achieve the highest net operating profit possible

Operation Management at KFC

KFC uses various tools and techniques to determine the best selection of its location,
such as factor rating method, cost-profit-volume analysis, and transportation and
simulation models. KFC considers lot of factors in designing their facility

They ensure their proximity to the consumers, so that they can be easily approached.
This is why they have opened so many locations in each city. They understand it is
important to remind the consumers about their presence. They always select a favorable
location for its outlets, which will lead to increased sale. They make sure that all the
outlets are located on the main road, so that footfall rises

Since they are operating in a saturated and a highly competitive market, they need to
keep the prices low. For this, they choose locations that are available at low costs. All
these decisions will help them to keep the price of their product low. They locate their
outlets where proper infrastructure is available and where there is abundance of skilled
labor. This can reduce labor cost as they are easily available and easy access to stores
for consumers is possible

Importance of Operation Management at KFC

As a fast food supply chain, KFC had their own unbroken reputation in global market
because of their strong operation management skills. According to the KFC
management structure Operation management is important for;

 improve overall productivity

 Maintain customization

 Increase revenue and leading to enormous profit

DEMAND FORECASTNG
Demand Forecasting refers to the process of predicting the future demand for the firm's product. In
other words, demand forecasting is comprised of a series of steps that involves the anticipation
of demand for a product in future under both controllable and non-controllable factors.

Forecasting is one of the most important thing which contribute in profit making it is always wrong and
it is better to aggregate forecast because when we forecast in bulk than there are less chances of
mistakes. KFC forecast their sales by analyzing historical sales data and extrenal factors
CONCLUSION
KFC focuses on

● Share information
● Ensure the market information
● Enhance product promotion
● Improve the living standard
● Ensure the high level of corporation
● Capture opportunities and rapid response capability
● Ensure the procurement of raw materials and inventory control.