BJB Manufacturing Company produces high-end compact disc (CD) changers for the automobile aftermarket, which at this time has no quality program. The president of BJB wants his company to become the premier producer of high-end CD changers for the new car and aftermarket segments of the overall market. It is important to note that BJB is attempting to penetrate a new market segment in doing this. The leadership of BJB must ascertain the precise quality requirements of all new car manufacturers. The chairman of the strategic planning committee has designated five members of the committee to serve as a task force for submission of recommendations to revise the Strategic Plan. BJB must also insure that all vendors/suppliers are cognizant of the quality standards of BJB and the new car manufacturers.
Analyze factors that should be considered when measuring the results of quality initiatives by using the Deming Theory for BJB. Address the leadership's roles in successfully deploying an initiative. Then determine how this approach would help enhance the accomplishment of the following:
- Reduction of the number of product failures
- Material and labor costs due to gains in operational efficiencies
Deming's philosophy can be defined by a comparison of two thoughts. (1) Focusing primarily on quality will lead to quality increasing and costs falling. The ratio is Quality = Results of work efforts/Total costs. (2) Focusing primarily on costs will lead to costs rising and quality falling. The costs mismanaged are (1) not reducing waste, (2) not focusing on high amount of rework, (3) not fully appreciating workers, (4) not quickly handling issues, (5) not realizing that there is no product improvement and (6) loss of customers.
Deming recommended that managers exhibit and apply the four parts of the System of Profound Knowledge: (1) Thorough knowledge of the system such as: complete understanding of processes related to suppliers, producers and customers. (2) Understanding of variation such as: the various reasons of quality variation and applying statistic sampling and analysis. (3) Knowing the ...
This solution discusses Deming's philosophy, how it impacts management, and management's responsibilities in 548 words.