Walkers Case Study

Walkers Case Study

MBA Program, University of the People

BUS 5611: Managing Projects and Program

Dr. Oluwakemi Osigbesan

May 22, 2024

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Established in 1948, Walker's is a leading British crisp manufacturer renowned for its

delicious and high-quality potato chips (Wayback Machine, n.d.). Over the years, they've

become a household name synonymous with satisfying snacking. Their commitment to

innovation and customer satisfaction has fueled their success, making them a favorite among

consumers. Walker's achievements extend beyond taste and brand recognition. Their dedication

to efficient management practices has played a crucial role in their journey. Efficient

management isn't simply about churning out products quickly and cheaply. As Walker's case

study demonstrates, achieving true efficiency requires a balanced approach that prioritizes

safety, quality, customer needs, and cost control. This analysis will examine each facet of

Walker's approach, examining how they ensure high-quality production while meeting customer

demands and maintaining cost-effectiveness.

Measuring Efficient Management

Based on Walker's case study , efficient management of tasks, quality, cost, and delivery

are achieved through a balanced approach that prioritizes safety and utilizes a system Walker's

refers to as a "balanced scorecard" (Wayback Machine, n.d.).

Quality Control Throughout: Walkers defines quality through a customer-centric lens,

ensuring their crisps deliver the benefits and satisfaction expected by consumers (Wayback

Machine, n.d.). They achieve this through a comprehensive approach called Total Quality

Management (TQM), which emphasizes building quality into the product at every stage of

production (Wayback Machine, n.d.). Their commitment to quality starts at the very beginning of

the supply chain. Walkers works directly with potato growers, providing them with seeds and

offering incentives to cultivate the highest quality produce (Wayback Machine, n.d.). While they

trust their suppliers, Walker's maintains high standards by selectively sourcing only from the

best (Wayback Machine, n.d.). This commitment extends throughout the processing stages.

Multi-level quality checks are implemented during washing, peeling, slicing, and other
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procedures to ensure everything meets their specifications (Wayback Machine, n.d.).

Additionally, trained technicians conduct laboratory testing and competitor analysis to uphold

their "Gold Standard" for quality (Wayback Machine, n.d.). Striking a balance is crucial, and

Walkers acknowledges the need to minimize waste while maintaining this high standard of

quality to achieve cost-effectiveness (Wayback Machine, n.d.).

Balancing Customer Needs: Walker's approach to customer service involves navigating the

needs of both internal and external customers (Wayback Machine, n.d.). They collaborate with

their head office, considered an internal customer, by adjusting production based on sales

forecasts and market trends (Wayback Machine, n.d.). This responsiveness allows them to meet

external customer demands, which include supermarkets and ultimately, consumers (Wayback

Machine, n.d.). Walkers demonstrates production flexibility by adapting to new flavor or quantity

demands (Wayback Machine, n.d.). They set a high bar for themselves, aiming for a 98.5%

on-time delivery rate within 24 hours for supermarkets, while also ensuring a minimum shelf life

of nine weeks before the "best before" date (Wayback Machine, n.d.). However, a key challenge

lies in balancing inventory management. Walkers aims to maintain buffer stock to meet

fluctuating consumer demand, but they must do so efficiently to avoid unnecessary costs

associated with excess inventory (Wayback Machine, n.d.). This balancing act highlights the

tension between economies of scale, which prioritize large-scale production efficiency, and the

need to fulfill specific customer needs (Wayback Machine, n.d.).

Cost Control through Efficiency: Walkers’ factories operate as independent profit centers,

motivating managers to focus on maximizing production output while keeping costs under

control (Wayback Machine, n.d.). High-volume production allows them to leverage economies of

scale, where small per-unit savings translate to significant cost reductions overall. Additionally,

maintaining high-quality standards minimizes waste and the need for rework, further reducing

production costs. They achieve efficient labor utilization by focusing on producing high-quality

products, minimizing downtime and optimizing how their workforce is deployed. Just-in-time
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inventory management ensures deliveries arrive precisely when needed for production,

reducing storage expenses and waste (Wayback Machine, n.d.). Finally, by minimizing excess

buffer stock through efficient production and distribution, they save on storage and inventory

management costs.

Key Goal

Safety is the Priority: Walker's commitment to safety goes beyond simply adhering to

regulations. They acknowledge the gravity of workplace accidents globally, emphasizing the

importance of their own safety initiatives (Wayback Machine, n.d.). This focus on safety is

evident throughout their company culture, where safe working practices are prioritized even

over production targets (Wayback Machine, n.d.). This strong safety culture is supported by

proactive measures. Managers actively assess and mitigate risks associated with machinery,

noise, and other potential hazards within the workplace (Wayback Machine, n.d.). Additionally,

staff are thoroughly trained on safe operating procedures to minimize these risks (Wayback

Machine, n.d.). The success of these efforts is reflected in Walker's exemplary safety record and

recognition by the Health & Safety Executive, solidifying their dedication to worker well-being

(Wayback Machine, n.d.).

Why is safety so pertinent to Walkers? While all four areas (safety, quality, customer

needs, and cost control) are crucial for Walker's success, safety is arguably the most

essential. Here's why:

● Foundation for Everything Else: Accidents can have devastating consequences,

impacting employees (physically and emotionally), the company's reputation, and

hindering production. A strong safety culture ensures a stable foundation upon which

quality production and efficiency can be built.

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● Cost Implications: Accidents are expensive. They can lead to medical costs, worker

compensation claims, production slowdowns, and even machinery damage. Prioritizing

safety minimizes these costs and ensures the smooth running of the factory.

● Legal and Ethical Responsibility: Companies have a legal and ethical obligation to

provide a safe working environment for their employees. Walker's commitment to safety

reflects this responsibility.

While safety is the foundation for Walker's success, it also positively impacts other areas:

● Quality:

○ Direct Measure: Reduced Scrap Rate: Safety incidents can damage equipment

or materials, leading to wasted product. Prioritizing safety minimizes such

incidents and reduces the amount of scrap produced.

● Delivery:

○ Indirect Measure: Improved Employee Morale: A safe work environment

fosters morale and well-being, potentially leading to increased productivity and

fewer missed shifts due to injuries. This can help Walker's maintain consistent

production flow and on-time deliveries.

● Cost:

○ Direct Measure: Lower Workers' Compensation Claims: Accidents often

result in workers' compensation claims, a significant cost for companies. By

prioritizing safety, Walker's reduces the likelihood of such claims and lowers their

overall costs.

Priority of Goals

While Walker's case study highlights four key goals (safety, quality, customer needs, and

cost control), safety should be the top priority, followed by quality, customer needs, and cost
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control. This ranking prioritizes the well-being of employees and the foundation for efficient

production, ultimately leading to long-term business success.

Justification for Ranking:

1. Safety: As discussed earlier, prioritizing safety minimizes accidents and disruptions. It

protects employees, safeguards the company's reputation, and avoids costly claims and

production slowdowns (Wayback Machine, n.d.). Safety is a fundamental human right

and ethical obligation for employers. A safe work environment fosters trust and morale,

potentially leading to higher productivity and employee retention. These factors

contribute significantly to a company's long-term success.

2. Quality: High-quality products are essential for customer satisfaction and brand loyalty,

ultimately driving sales and profitability (Ahire & Davies, 2019). However, quality is best

achieved through a safe and efficient production process. Safety measures like proper

equipment maintenance and training can minimize errors and product defects, leading to

higher quality output.

3. Customer Needs: Meeting customer needs is crucial for any business. However, this

needs to be balanced with the foundation of safety and quality. By ensuring safe and

efficient production of high-quality crisps, Walker's lays the groundwork for fulfilling

customer demands. Responsive communication and production flexibility allow them to

adapt to specific customer needs within the boundaries set by safety and quality.

4. Cost Control: While cost control is important, it should not come at the expense of

safety or quality. The long-term costs associated with accidents and poor-quality

products can outweigh any short-term cost savings. By prioritizing safety and quality,

Walker's avoids these costs and creates a foundation for efficient production, ultimately

contributing to better cost control in the long run.

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Conclusion

In conclusion, Walker's case study offers valuable insights into achieving efficient

management. Their "balanced scorecard" approach transcends a singular focus on cost

reduction, emphasizing a harmonious interplay between safety, quality, customer needs, and

cost control. This holistic strategy prioritizes safety, recognizing it as the bedrock for a

successful and sustainable business. By prioritizing safety, Walker's fosters a strong safety

culture that minimizes accidents and their associated costs. Walker's dedication to continuous

improvement is evident in their meticulous quality control measures, from selecting the best

potatoes to implementing multi-level quality checks throughout production. Their

responsiveness to customer needs further strengthens their position, allowing them to adapt to

market trends and deliver high-quality crisps consistently. Finally, their focus on efficient

production through economies of scale, just-in-time inventory management, and minimal waste

reduction ensures cost-effectiveness without compromising on safety or quality.

In essence, Walker's balanced scorecard approach serves as a recipe for success. By

prioritizing safety, ensuring quality, meeting customer needs, and maintaining cost control,

Walker's has secured its position as a leading crisp manufacturer, demonstrating that true

efficiency goes beyond simply churning out products quickly and cheaply. It's about striking a

balance that fosters long-term success and a commitment to all stakeholders - employees,

customers, and the company itself.

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References

Ahire, S. H., & Davies, T. D. (2019). Customer satisfaction and service quality: The
mediating role of perceived value. Journal of Business Research, 127, 1083-1091.
https://www.sciencedirect.com/science/article/pii/S2212567116000484

Success Through Managing Quality, Safety, Customer Service, and Cost: A Walkers
Case. (n.d.). Wayback Machine.
https://web.archive.org/web/20181222182654/http://businesscasestudies.co.uk/walkers/suc
cess-through-managing-quality-safety-customer-service-and-cost/introduction.html