Case Study 1: Quality Indicator for a TV Company A TV comp company any bran brande ded d ‘SS’ ‘SS’ estab establi lish shed ed in 80’s 80’s was was sell sellin ing g its its bran brand d base based d on ‘pri ‘price ce’’ differentiation. With several !" entering the mar#et$ SS started facing stiff competition. The owner r. !attan felt if he foc%ses his company’s image as a &%ality company then he can beat the competition. 'ence he shifted the company’s foc%s from ‘price’ differentiation to ‘service’. 'e started concentrating in finding what the c%stomer wants. (rior to &%ality introd%ction$ the performance meas%res were in terms of n%mber of new clients$ total billing etc. e tc. While meeting the c%stomer$ the sales tal# was on ‘high service delivery’ witho%t any regard to c%stomer’s needed level of service or on the satisfaction satisfaction as in the minds of the c%stomer. There was hence a possibility of not meeting their own stated level of service delivery which led to disappointment among c%stomers. )%ality goals were now established which were felt to be the indicators of &%ality * ass%ring the company in terms of tangible s%ccess. Satisfaction of c%stomer is indicated thro%gh • • • •
+ills paid on time ,etaining c%stomer ret%rn at -0 Acco%nts receivable days o%tstanding is improved by /0 within the net 1 months "%stomer satisfaction s%rvey will indicate c%stomer satisfaction to be above 20
Satisfaction of employee is indicated by • • •
T%rnover rate bro%ght down by / in 1 months time Absenteeism is lowered by 30 4mployee satisfaction s%rvey indicating a level above 25
6rowth of the organi7ation is indicated by • • •
btaining 9S certification 9ncrease in share price by /0 9ncrease in n%mber of c%stomers
Discuss:
3. :o yo% yo% agree agree with with the meth method odol ology ogy adopte adopted d by the the comp company any for beco becomi ming ng ‘&%al ‘&%alit ity y organi7ation’; <. 4val%ate 4val%ate the firm’s firm’s ‘indicator ‘indicatorss of &%ality’ which is epected epected to meas%re &%ality &%ality.. /. 9dentify 9dentify a few &%ality &%ality indicators indicators to to meas%re meas%re &%ality effecti effectiveness veness for for a company gearing gearing towards T) =. :isc%ss :isc%ss the the dimensi dimensions ons of of &%ality &%ality for for the the (rod%ct (rod%ct >TV? 5. :isc%s :isc%sss how SS SS can impro improve ve their their &%ali &%ality; ty;
Case Study 2: Establishment of Quality Strategy for ri! " Co
+ri @ "o is a proprietorship firm located in :ha#a. 9t is a TV Spare parts man%fact%ring company. 9t is in eistence for more than 55 years. There are recent plans in the company to eport its prod%cts abroad. Twenty yo%ng professionals who are highly talented were also recr%ited recently. The proprietor$ r. Shah Alam is a strict disciplinarian who is -0 years old. 'e is #nown for his a%tocratic style of management. r. Shah Alam attended seminar organi7ed for eec%tives on &%ality management. Attracted by the principles ta%ght in the seminar$ he wanted to ma#e his company a &%ality company. The same day he sat alone till < am and form%lated a vision statement for his company. The net day morning at 8 am he called for an %rgent meeting of all the 10 employees he had and anno%nce pro%dly his intentions of ma#ing the company a &%ality company. 'e also anno%nced the vision statement for the company. +y 30 am abo%t 300 placards with the vision statement were made ready and fied in all important locations. All the employees were s%rprised to see the placard everywhere and wondered what it is all abo%t. r. Shah Alam enforced that the vision of the company has to be adhere to by everyone. 'e was confident that company will soon become a &%ality company. ne month later$ r. shah A7ad approached his brother r. Shah Alam to help him in starting a oint vent%re company. r. Shah A7ad was new to b%siness. r. Shah Alam being very m%ch attached to his family$ readily agreed to his brother’s proposal to start a new company. Bor the net si months$ r. Shah Alam spent more than 80 of his time in the establishment of the new company. 9n the meantime$ +ri @ "o in :ha#a$ had a setbac#. 4ven tho%gh +ri @ "o has set targets to eports$ the sit%ation was so bad$ they co%ld not even penetrate the local mar#et. (ercentage reection increased and the balance sheet showed heavy loss.
:isc%ssC 3. <. #$ +$
What according to yo% is the reason for the setbac# in +ri @ "o; What wo%ld be yo%r advice to r. Shah Alam to revamp the sit%ation; %hat &ould ha'e been the right strategy for (r$ Shah )lam in the beginning* Do you feel that (r$ Shah )lam should not ha'e started the second company* If he still &anted to start &hat he should ha'e done*
Case Study #: Implementing TQ( for an institution
"hennai is famo%s for ho%sing many prestigio%s and old colleges. SS "ollege sit%ated in the s%b%rbs of "hennai$ recently celebrated 50th anniversary. 9t offers +4 degree programme in eight different descriptions. Abo%t =000 st%dents are st%dying in the college. The principal of the college is in the verge of retirement. 'e has served the college for /5 years. The teaching staff strength is 55D in addition <5 nonEteaching staff are also wor#ing. ost of them are there for more than <5 years. ,ecently there has been a series of complaints from st%dents that the facilities they get is in no way comparable to the fees paid by them. All the hostel st%dents went on a day fasting stri#e to epress their dissatisfaction. The college management was dist%rbed by this. They appointed a one man committee to loo#ing to the affairs of the college and offer remedies. The one man committee$ d%ring the interrogation with st%dents and staff fo%nd that there are many problems in the college which have not come o%t earlier. The st%dents were %nhappy with the teaching offered at the college. 9t was fo%nd that the res%lts are also poor and the pass percentage has been decreasing over the years. When en&%ired abo%t the reason for this the staff and st%dents were blaming each other. 9t was noticed that even among staff there is no coE ordination. The committee noticed that the age old practices are being followed both in teaching and administration. 9n the meanwhile one of the parents wrote a strong letter to management$ epressing his displeas%re abo%t the treatment he got d%ring his last visit to the college. Already the government iss%ed a notice to the college to improve the library facilities. With all these$ the management is perpleed and loo#ing for a direction to move. Discuss:
3. <. /. =.
What wo%ld be yo%r recommendation to the college management; 'ighlight five critical areas wherein foc%s is needed. 6ive reasons also. What wo%ld be the best s%ited T) model for this college; What are the problems yo% anticipate while implementing T) and how will yo% tac#le them;
Case Study +: S%,T analysis for a Company
r. Tom is a manager in FS Teon$ a company prod%cing goods for eport. Third world co%ntries are their main c%stomers. The company has been in eistence for more than =0 years. Brom anaging :irector down to wor#ers there are 2 cadres in the organi7ation. ost of the employees are specialists in their wor# area. "ompany has been doing good. The reection rate has been only abo%t 3. 4mployees are all demanding for wage increase$ threatening to go on for indefinite stri#e. There are abo%t = %nions active and the employees are e&%ally divided. The anaging :irector of the company is a very b%sy person and manages abo%t 1 different firms in different co%ntries. 'e visits this firm once a month and stays for < to / days. S%ddenly the c%stomers have posed a few restrictions. They wanted to b%y prod%cts only from &%ality companies. r. Tom has been given the responsibility of s%staining the mar#et share.
:isc%ssC 3. What will be yo%r SWT analysis for the company; <. What will be the strategic planning process that yo% wo%ld recommend;
Case Study -: .ishbone analysis for an Educational Institution r. S%resh is a st%dent of an engineering college doing 3st year +4. 'e stays in the college hostel. 9n the first semester$ he was a reg%lar st%dent b%t co%ld not score good mar#. 9n the second semester$ the college introd%ced ‘shift’ system for classes$ with the good intention of providing abo%t = to 5 ho%rs of time at a stretch for st%dies and other %sef%l p%rpose. 9t was epected that he wo%ld improve his st%dies and score good mar#s. n the contrary$ he has failed in a co%ple of s%bects. :isc%ssC 3. Analy7e this problem and draw a fish bone diagram. <. S%ggest methodologies for solving the problem.
Case Study /: -S Implementation for (oon (otor oon motors has been the sole distrib%tors of 4G motorbi#e in the "hal%# district. The 4G motorbi#e was #nown for its &%ality and oon motors were hence able to establish a name for themselves thro%gh high sales. They also did the servicing of 4G motorbi#es b%t the servicing department had been facing several complaints from c%stomers. The c%stomer complaint r%ns as followsC • • • • •
Service personnel are r%de The delivery of a serviced vehicle is not prompt The stated fa%lts are not completely rectified Servicing cost is high "%stomers coming to the service station have to wait standing in the d%st and oil
Their only advantage is being the sole distrib%torship which is getting them the sales. "omplaints from the c%stomer have reached 4G otorbi#es and the company is now on the loo#o%t for another dealer for that area. r. (al Singh of oon otors finds himself to the brin# of b%siness. 'e has to immediately do something. 6etting to tal# with his employees$ he fo%nd that there is lot of friction between the sales and service personnel. Also sales office was in direct contrast to the service department. Sales office was at the front end and the place was really dec#ed %p$ flashy and spar#ling bright$ while the service station was dirty. There were oil stains all overD the service staff clothes were all messy. The instr%ments were lying all over the place. ne mechanic was sho%ting for a si7e = spanner and his colleag%e was finding diffic%lty in locating it. r. (al ret%rned bac# to his A" cabin since there was a call on his cell informing him that officials from 4G otorbi#es are waiting in his office. Discuss:
•
What are the problems with oon otors; 9f the officials of 4G otorbi#es have come to find o%t how they can helpE may be giving
•
a si months test periodE before they terminate the distrib%torship then what ass%rance wo%ld they demand from r. (al and what promises can r. (al ma#e; 'ow can 5S benefit in this scenario; 'ow will yo% implement 5S here;
•
Case Study 0: oa 3oe model for an )utomobile company !aveen Scott was r%nning an established a%tomobile man%fact%ring b%siness. The firm man%fact%red family cars %nder the trade name ‘Scotto’ and commercial vehicles ‘otto’. The vehicles were #nown for their &%ality and tradition."hanges in government policies bro%ght in m%ltinationals. A competitor to ‘Scotto’ entered the b%siness with tieE%ps with m%ltinationals. The firm with its brand of ‘4s#imo’ flooded the mar#et with small cars for a n%cle%s family$ which was five times lower in price than ‘Scotto’. ‘4s#imo’ also came in from a &%ality certified ho%se since this was insisted by the m%ltinational. !aneen fo%nd that ‘4s#imo’ was ta#ing away a maor share of his familyEcar mar#et. !aveen wanted to %se his company’s niche on &%ality and tradition. 'e called for a meeting of the managers and briefed them on the mar#et sit%ation. 'e said the company wo%ld have to obtain either the "33 &%ality award or (eacoc# award for &%ality in two years time. The top officials p%t their heads together and came o%t with a vision ‘mar#et leadership thro%gh &%ality’. They stressed the need to bring in &%ality into the process$ which wo%ld ens%re prod%ct &%ality. !aveen in all meetings #ept stressing that total &%ality management is a never ending process. 9t is a process of contin%o%s improvement of contin%o%sly &%estioning the way yo% do things$ and of contin%o%sly reEeval%ating the mar#et$ c%stomers needs and wor# process and proced%res. 9t is a process if done properly wo%ld contin%o%sly renew itself. Training was foc%sed so that everyone in the organi7ation is aware and come in %nison towards the management’s vision. Top manager were first trained on T). 9t was their responsibility to train their s%bordinates who in t%rn was as#ed to train their immediate %niors. ver a period of three months the entire organi7ation was reared towards T). The organi7ation started bringing in improvisation in the commercial vehicle segment. There was a new fleet of vehicles. The design was made %sing the feedbac# from their eisting c%stomers. Some of the vehicles were so designed that they co%ld also be %sed as a family car. The family car ‘Scotto’ contin%ed in the mar#et. Another mini car was attached to the family cars category called ‘Blash’. ‘Blash’ was bro%ght in to compete with ‘4s#imo’ in the mini car category. The entire team had wor#ed towards the vision and was waiting for the la%nch of the new breed of commercial vehicles and family cars in the national a%to fair. A &%ality cons%ltant was approached and was as#ed how to proceed f%rther and how to la%nch the prod%cts. There was a <00 price hi#e anno%nced by ‘4s#imo’. The original price seemed to be an introd%ctory offer. :isc%ssC 3. The new set of vehicles have been designed considering the eisting c%stomers feedbac#. :o yo% feel it is s%fficient in the present scenario; What will be yo%r s%ggestions; <. As the &%ality cons%ltant what will be yo%r recommendations; /. 'ow >(o#ayo#e? can be %sed in this scenario;
Case Study 4: %esto'er Electrical5 I6C$
Westover 4lectrical$ 9nc.$ is a medi%mEsi7ed 'o%ston man%fact%rer of wire windings %sed in ma#ing electric motors. Hoe Wilson$ perations anager$ has eperienced an increasing problem with reected prod%ct fo%nd d%ring the man%fact%ring operation. I9Jm not s%re where to begin$I said Hoe at the wee#ly staff meeting with his boss. I,eects in the winding department have been #illing %s the past two months. !obody in operations has any idea why. 9 have %st bro%ght in a cons%ltant$ ,oger 6agnon$ to ta#e a loo# at the sit%ation and ma#e recommendations abo%t how we can find o%t what is going on. 9 donJt epect ,oger to ma#e technical recommendations EE %st see if he can point %s in the right direction.I 6agnonJs first stop later that day was the prod%ction floor. 'is disc%ssions with the prod%ction s%pervisors in the winding department indicated they had no real grasp of what the problem was or what to do to correct it. A to%r of the winding operation indicated that there were three machines that wo%nd wire onto plastic cores to prod%ce the primary and secondary electric motor windings. After inspection by &%ality control K)"L$ these windings then went to the pac#aging department. (ac#aging personnel$ 6agnon fo%nd$ inspect their own wor# and ma#e corrections on the spot. The problem is that too many windings are fo%nd to be defective and re&%ire rewor#ing before they can be pac#aged. 6agnonJs net stop was the &%ality control department where he obtained the records for the past monthJs winding department reects KTable 3L.
9n !ovember 3220$ Hohn Wells$ a c%stomer service representative of +ayfield %d "ompany$ was s%mmoned to the 'o%ston$ Teas$ wareho%se of WetENand :rilling$ 9nc.$ to inspect three bocars of m%dEtreating agents that +ayfield %d "ompany had shipped to the 'o%ston firm. K+ayfieldJs corporate offices and its largest plant are located in range$ Teas$ which is %st west of the No%isianaETeas border.L WetENand :rilling had filed a complaint that the 50Epo%nd bags of treating agents that it had %st received from +ayfield were shortEweight by approimately 5 The lightEweight bags were initially detected by one of WetENandJs receiving cler#s$ who noticed that the railroad scale tic#ets indicated that the net weights were significantly less on all three of
the bocars than those of identical shipments received on ctober <5$ 3220. +ayfieldJs traffic department was called to determine if lighterEweight d%nnage or pallets were %sed on the shipments. KThis might eplain the lighter net weights.L +ayfield indicated$ however. that no changes had been made in the loading or palleti7ing proced%res. 'ence$ WetENand randomly chec#ed 50 of the bags and discovered that the average net weight was =-.53 po%nds. They noted from past shipments that the bag net weights averaged eactly 50.0 po%nds$ with an acceptable standard deviation of 3.< po%nds. "onse&%ently$ they concl%ded that the sample indicated a significant shortEweight. KThe reader may wish to verify the above concl%sion.L +ayfield was then contacted$ and Wells was sent to investigate the complaint. Mpon arrival$ Wells verified the complaint and iss%ed a 5 credit to WetENand. WetENandJs management$ however$ was not completely satisfied with only the iss%ance of credit for the short shipment. The charts followed by their m%d engineers on the drilling platforms were based on 50Epo%nd bags of treating ag ents. NighterEweight bags might res%lt in poor chemical control d%ring the drilling operation and might adversely affect drilling efficiency. K%d treating agents are %sed to control the p' and other chemical properties of the cone d%ring drilling operation.L This co%ld ca%se severe economic conse&%ences beca%se of the etremely high cost of oil and nat%ral gas well drilling operations. "onse&%ently$ special %se instr%ctions had to accompany the delivery of these shipments to the drilling platforms. oreover$ the lightEweight shipments had to be isolated in WetENandJs wareho%se$ ca%sing etra handling and poor space %tili7ation. 'ence$ Wells was informed that WetENand :rilling might see# a new s%pplier of m%d treating agents if$ in the f%t%re$ it received bags that deviated significantly from 50 po%nds. The &%ality control department at +ayfield s%spected that the lightEweight bags may have res%lted from Igrowing painsI at the range plant. +eca%se of the earlier energy crisis$ oil and nat%ral gas eploration activity had greatly increased. This increased activity$ in t%rn$ created increased demand for prod%cts prod%ced by related ind%stries$ incl%ding drilling m%ds. "onse&%ently$ +ayfield had to epand from a oneEshift K1C00 A.. to
Time
)'erage %eight ?ounds@
Smallest
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=2.1
=8.-
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=2.3
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50.0
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50.5
53.5
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Discussion:
3. What proced%res wo%ld yo% recommend to maintain proper &%ality control;
Case study 1A: (oped ;eliability )nalysis Shyam$ a third year college st%dent had p%rchased a moped$ < years bac#. :%ring the first year of p%rchase$ there were fo%r free service co%pons available and he had given reg%larly his moped for servicing. (resently he finds it is si months since he has given his moped for service. :%ring last one month$ there were three times the moped didn’t start and he had to tow it to a roadside mechanic. The mechanic too# normally three ho%rs for repairing it. The fa%lt was very often minor s%ch as spar# pl%g. The mechanic charged between 50 to 300 ,s. Shyam was considering whether he sho%ld go for dealer service where standard service was ,s -5 pl%s additional item cost. 9t wo%ld ta#e < days if left at dealer service. Shyam is wondering whether he sho%ld b%y a new spar# pl%g which will cost his ,s. 35 0. 'e fo%nd the n%mber of fail%res of spar# pl%g in ten years time in a maga7ine which is as followsC
Time
3
<
/
=
5
1
-
8
2
30
!o. of fail%res
/
33
3-
/0
30
2
-
1
=
/
)%estionsC 3. 9dentify all the options available to shyam. <. "ond%ct Bail%re ,ate analysis and ean Bail%re rate /. Bind the co%rse of action for him based on above analysis and costs.
