Quality Management Strategies
Chhuya Agro Products mainly produces various related products to promote stable & optimal
growth of fish and poultry. We were impressed by their quality management strategies to make
these products the best. Here are some of the things we saw:
Total Quality Management (TQM): The factory firmly focused on TQM, which is a
mindset that emphasizes continuous advancement in all aspects of the business. We saw how the
employees were encouraged & empowered to identify and solve problems and in the company's
commitment to using data to drive decision-making. They also strongly emphasized delivering
products catering to customer needs and wants. And they made sure the products were made
perfectly with no mistakes.
Quality at the source: The factory firmly focused on this strategy, preventing defects from
occurring in the first place. The management achieved this through various measures, such as
training employees on quality control, mistake-proofing devices, conducting regular inspections
of the final finished product, and repairing machines when needed, leading to zero downtime.
Supplier quality management: The factory had a rigorous supplier quality management
process. The management team first evaluates potential suppliers, conducts audits of their
facilities, and works with them to improve quality performance. They were also extremely strict
with the quality of raw materials (i.e., shrimp oil, coal), as they first tested the quality of the
materials in their lab before letting the goods enter their warehouse. If the goods are satisfactory,
the entire batch gets accepted. This process helped to ensure that the factory was receiving highquality materials and components from its suppliers, which in return allowed them to produce
high-quality products.
Inventory Management
Just-in-time (JIT) inventory: The factory used a JIT inventory system, which means that
they only ordered raw materials and components as needed for production. They also used a twobin system along with 'JIT,' which is a simple but effective inventory management system that
uses two bins to store inventory: They had a working bin and a reserve bin. The working bin
keeps the stock currently used in the production process. The reserve bin holds the inventory
used when the working bin is empty. This system was implemented for most of the products,
including Carp Grower Feed.
ABC classification system: They also implemented the classification system so that they
could focus on managing 'Category A' items more closely, reducing the overall cost of their
inventory. This process also reduces the risk of losing sales or damaging their reputation due to
stockouts and can improve customer service, leading to improved sales and customer
satisfaction.
Inventory forecasting: The factory meets expected demand via inventory forecasting
software to predict future demand for raw materials and components. This method helps them to
ensure that they maintain a suitable portion of stock on hand to satisfy customer demand without
overstocking or understocking. They mainly use Seasonality analysis, which identifies seasonal
patterns in the market.
Safety stock: The factory also had an extra inventory to protect themselves against unexpected
fluctuations in demand or supply. It also helps them protect against unexpected decreases in the
stockpile, such as supplier delays or production disruptions. Lastly, it allows them to manage
lead time. By having safety stock on hand, the factory can avoid running out of inventory while
waiting for new goods.