Question: Read the following case study and answer all the questions given below the case study: ABC Corporation is a medium sized Brakes Manufacturing Company. The
Read the following case study and answer all the questions given below the case study: ABC Corporation is a medium sized Brakes Manufacturing Company. The President of the company read about TQM, got impressed and decided to implement TQM in his organization. The company was not doing well financially, due to Poor productivity, poor customer satisfaction and unhappy workers. The president believed that TQM can fix all his problems and make quick profit. Hence he hired a consultant to implement TQM. The consultant studied the system and interacted with the employees. He found that the company relied on inspection as the only method of quality management and Quality Targets were displayed all over the factory. He discovered that the company had good number of suppliers to avail price advantage from suppliers. About the employees, the employees had no idea of teamwork. They were relying on orders and instructions from the Managers. The communication among the departments was minimum. The President had I am the king attitude and no employee was ready to be honest with him in sharing feedback due to fear. He criticized most employees, and called it feedback. Managers were afraid of delegating any work to any employee. This was creating delays. The consultant started training the employees in Teamwork and communication. Employees started understanding that Quality is everyones responsibility. After few Months, the consultant told the president that he should change his personality and behavior. But, the President never understood that change meant everyone has to change, including him. One day the president called the consultant, blamed him that he was not doing his job properly. The president said to the consultant, that he was forcing the responsibility for quality onto all employees instead of implementing it himself. Hence, he fired the consultant. After a year, the company president appointed Mr.John as a Quality Department Manager. He understood the companys situation. He suggested to apply Quality cost method and got approval to implement that method. He emphasized that the company need to make effective use of monetary resources, and quality costing is one reliable tool for the evaluation of efficiency and effectiveness of companies financial systems. His main aim is to produce zero defect goods by the way of identifying the root causes of all quality related problems. Henceforth, he started quality planning, process planning programmes. And also initiated employee training programme with the help of HR department. He created quality inspection system, quality auditing system. Likewise, with the support of president, he purchased quality inspection equipment. He made a mindset to everyone in the organization to understand that producing the zero defect product is cost effective. QUESTIONS: 1- Analyse the case and explain the reasons for implementing TQM, evaluate any five (5) Demings Principles that are violated (broken) in the given case. In your opinion, was the president correct in firing the consultant? (Justify your answer.) 2- Based on the above case, draw and explain the suitable Quality Cost model. Similarly, from the case list out the prevention costs (at least 3), and appraisal costs (at least 3).
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