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    Canbidge- Central Engineering Group

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    Task -

    The Central Engineering and Research Group (CERG)is a service group. Since Deming, Juran and Crosby wrote primarily about "products". How do their theories apply to your group? Discuss this with the other analysts.


    You have been promoted to senior analyst in the Distribution Engineering, Maintenance, and Productions Management group of the Central Engineering Department of the Canbide Corporation, near Torrance, CA. At this location is a facility for the electronics business. Based upon your previous successes in the electronics division, you will now spend most of your time with the chemical plants.
    The Canbide Corporation is a U.S.-based, multi-national, publicly traded, manufacturing company with annual sales nearing $10 billion. Canbide is one of the pioneers of the petrochemical industry and is the acknowledged technology leader in several market sectors, and benefits from large licensing royalty checks for those technologies. Canbide is the low cost producer for a number of commodity products. Canbide's current marketing approach is based on providing a wide selection of products from a single location, more than any of their competitors.
    In a suburb of Tulsa, OK, Canbide operates a facility for the Chemical Business Group, which contains the Divisional Research and Engineering Department (DRE), the experts on the specific reactions and equipment associated with that division's production processes, and the Central Central Engineering and Research Department (CERG), experts in specific subjects that cross divisional boundaries. The employees in CERG generally work as internal consultants for the divisional research and engineering groups and often work on plant level issues.
    Mr. Villani, president of the Chemicals Business Group, is pressing his divisional VPs to solve several problems. There is internal pressure for a new distribution facility in the Midwest. There continue to be quality problems at a facility near Toledo, OH that serves the automotive market in Michigan. There are customer service problems at most of the distribution locations, but especially at a facility near Denver, CO. There are inventory and materials handling problems at the production facility near Huntsville, AL.
    Your supervisor has alerted you to three important projects for the coming year.
    Product Quality and Distribution Problems at the Denver facility: This facility has experienced slow physical growth since its beginning in the 1930s. Over the years, new production units (measuring 2 km x 1 km) have been added on the periphery of the facility, in a widely scattered manner. Unfortunately, your previous recommendations regarding customer service have not yet been implemented due to budgetary constraints; customers desiring to pickup multiple products must now drive from point to point within the plant to pick up each product. There are often waiting lines at each loading point. This is causing gridlock within the facility caused by the arrival pattern of trucks picking up products. In addition, there are product quality problems, primarily due to new rules that the automotive industry (ISO 9000) is imposing on all of their suppliers.
    New Distribution Facility in the Northeast: For years, long before you joined Canbide, the Divisional Sales and Marketing Departments have clamored for a new distribution facility located near New York to serve many customers throughout the Northeast. Previous studies have always indicated that the benefits of a New York location are outweighed by the costs. In spite of this, you are being asked to take another look.
    A Quality Program for CERG: With the increasing prevalence of ISO 9000 programs, Canbide has initiated a corporate wide Excellence through Quality (EQ) program. Most of the plants and operational locations have already launched their EQ programs. Now, Mr. Harkins, the VP of Central Engineering and Research Group (CERG), has picked you to help develop and implement the EQ program for his corporate level engineering and R&D groups.

    The three methodologies will all assist the organization with their quest for quality managment. However, their approaches are more structured towards products and our organization or CERG group is provides a service thus I am needing assistance aligning how their methodologies will align with our services and that of the company.

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    Solution Preview

    Even though CERG group provides a service and the approach of other divisions are more structured towards products, there is a high degree of synergy and interdependence between these groups in achieving the common goals of the organization, ie, total quality management throughout the organization.

    Since CERG group is concerned with all other divisions and their tasks lead them to cross divisional boundaries, it is extremely important to initiate the total quality management within this group in order to create a strong foundation for other divisional groups. The high level of interdependency of the CERG group with other divisions makes it imperative for them to achieve highest standards in their services.

    The CERG group act as consultants for various plant level issues and the quality of their services ...

    Solution Summary

    Canbidge- Central Engineering Group