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CASE TITLE :
A TV company branded ‘SS’ established in 80’s was selling its brand based on ‘price’
differentiation. With several MNC entering the market, SS started facing stiff competition. The
owner Mr. Nattan felt if he focuses his company’s image as a quality company then he can beat
the competition. Hence he shifted the company’s focus from ‘price’ differentiation to ‘service’.
He started concentrating in finding what the customer wants. Prior to quality introduction, the
performance measures were in terms of number of new clients, total billing etc. While meeting
the customer, the sales talk was on ‘high service delivery’ without any regard to customer’s
needed level of service or on the satisfaction as in the minds of the customer. There was hence a
possibility of not meeting their own stated level of service delivery which led to disappointment
among customers. Quality goals were now established which were felt to be the indicators of
quality – assuring the company in terms of tangible success.
Discuss:
1. Do you agree with the methodology adopted by the company for becoming ‘quality
organization’?
Ans: I agree with the methodology adopted by the company for becoming quality
organization.
The aim of quality management is to ensure that all the organization’s stakeholders work
together to improve the company’s processes, products, services, and culture to achieve the
long-term success that stems from customer satisfaction. The aim of quality management is
to ensure that all the organization’s stakeholders work together to improve the company’s
processes, products, services, and culture to achieve the long-term success that stems from
customer satisfaction. The process of quality management involves a collection of guidelines
that are developed by a team to ensure that the products and services that they produce are of
the right standards or fit for a specified purpose.
The proprietor, Mr. Shah Alam is a strict disciplinarian who is 70 years old. He is known for his
autocratic style of management. Mr. Shah Alam attended seminar organized for executives on
quality management. Attracted by the principles taught in the seminar, he wanted to make his
company a quality company. The same day he sat alone till 2 am and formulated a vision
statement for his company. The next day morning at 8 am he called for an urgent meeting of all
the 60 employees he had and announce proudly his intentions of making the company a quality
company. He also announced the vision statement for the company. By 10 am about 100
placards with the vision statement were made ready and fixed in all important locations. All the
employees were surprised to see the placard everywhere and wondered what it is all about. Mr.
Shah Alam enforced that the vision of the company has to be adhere to by everyone. He was
confident that company will soon become a quality company.
One month later, Mr. shah Azad approached his brother Mr. Shah Alam to help him in starting a
joint venture company. Mr. Shah Azad was new to business. Mr. Shah Alam being very much
attached to his family, readily agreed to his brother’s proposal to start a new company. For the
next six months, Mr. Shah Alam spent more than 80% of his time in the establishment of the new
company.
In the meantime, Brix & Co in Dhaka, had a setback. Even though Brix & Co has set targets to
exports, the situation was so bad, they could not even penetrate the local market. Percentage
rejection increased and the balance sheet showed heavy loss.
Discuss:
1. What according to you is the reason for the setback in Brix & Co?
2. What would be your advice to Mr. Shah Alam to revamp the situation?
3. What would have been the right strategy for Mr. Shah Alam in the beginning?
4. Do you feel that Mr. Shah Alam should not have started the second company? If he still
wanted to start what he should have done?
Chennai is famous for housing many prestigious and old colleges. SS College situated in the
suburbs of Chennai, recently celebrated 50th anniversary. It offers BE degree programme in eight
different descriptions. About 4000 students are studying in the college. The principal of the
college is in the verge of retirement. He has served the college for 35 years. The teaching staff
strength is 55; in addition 25 non-teaching staff are also working. Most of them are there for
more than 25 years.
Recently there has been a series of complaints from students that the facilities they get is in no
way comparable to the fees paid by them. All the hostel students went on a day fasting strike to
express their dissatisfaction. The college management was disturbed by this. They appointed a
one man committee to looking to the affairs of the college and offer remedies.
The one man committee, during the interrogation with students and staff found that there are
many problems in the college which have not come out earlier. The students were unhappy with
the teaching offered at the college. It was found that the results are also poor and the pass
percentage has been decreasing over the years. When enquired about the reason for this the staff
and students were blaming each other. It was noticed that even among staff there is no co-
ordination. The committee noticed that the age old practices are being followed both in teaching
and administration. In the meanwhile one of the parents wrote a strong letter to management,
expressing his displeasure about the treatment he got during his last visit to the college. Already
the government issued a notice to the college to improve the library facilities.
With all these, the management is perplexed and looking for a direction to move.
Discuss:
Mr. Tom is a manager in M/S Texon, a company producing goods for export. Third world
countries are their main customers. The company has been in existence for more than 40 years.
From Managing Director down to workers there are 9 cadres in the organization. Most of the
employees are specialists in their work area. Company has been doing good. The rejection rate
has been only about 1%. Employees are all demanding for wage increase, threatening to go on
for indefinite strike. There are about 4 unions active and the employees are equally divided. The
Managing Director of the company is a very busy person and manages about 6 different firms in
different countries. He visits this firm once a month and stays for 2 to 3 days. Suddenly the
customers have posed a few restrictions. They wanted to buy products only from quality
companies. Mr. Tom has been given the responsibility of sustaining the market share.
Discuss:
Mr. Suresh is a student of an engineering college doing 1 st year BE. He stays in the college
hostel. In the first semester, he was a regular student but could not score good mark. In the
second semester, the college introduced ‘shift’ system for classes, with the good intention of
providing about 4 to 5 hours of time at a stretch for studies and other useful purpose. It was
expected that he would improve his studies and score good marks. On the contrary, he has failed
in a couple of subjects.
Discuss:
Make a check sheet and then a Pareto diagram for the following car repair shop data:
A glass manufacturing company produces flat glass sheets, with target final thickness of 0.130
inch and a known standard deviation of 0.0078 inch. The company decided to construct a 3-
sigma control chart to know in and out of control situations. The values in the following table
are obtained for samples of size 6, in 8 consecutive days.
Days 1 2 3 4 5 6 7 8
Average
thickness of
samples 0.1196 0.1351 0.126 0.1192 0.1212 0.125 0.1275 0.1195
(Bayfield's corporate offices and its largest plant are located in Orange, Texas, which is just west
of the Louisiana-Texas border.) Wet-Land Drilling had filed a complaint that the 50-pound bags
of treating agents that it had just received from Bayfield were short-weight by approximately 5%
The light-weight bags were initially detected by one of Wet-Land's receiving clerks, who noticed
that the railroad scale tickets indicated that the net weights were significantly less on all three of
the boxcars than those of identical shipments received on October 25, 1990. Bayfield's traffic
department was called to determine if lighter-weight dunnage or pallets were used on the
shipments. (This might explain the lighter net weights.) Bayfield indicated, however. that no
changes had been made in the loading or palletizing procedures. Hence, Wet-Land randomly
checked 50 of the bags and discovered that the average net weight was 47.51 pounds. They noted
from past shipments that the bag net weights averaged exactly 50.0 pounds, with an acceptable
standard deviation of 1.2 pounds. Consequently, they concluded that the sample indicated a
significant short-weight. (The reader may wish to verify the above conclusion.) Bayfield was
then contacted, and Wells was sent to investigate the complaint. Upon arrival, Wells verified the
complaint and issued a 5% credit to Wet-Land. Wet-Land's management, however, was not
completely satisfied with only the issuance of credit for the short shipment. The charts followed
by their mud engineers on the drilling platforms were based on 50-pound bags of treating agents.
Lighter-weight bags might result in poor chemical control during the drilling operation and
might adversely affect drilling efficiency. (Mud treating agents are used to control the pH and
other chemical properties of the cone during drilling operation.) This could cause severe
economic consequences because of the extremely high cost of oil and natural gas well drilling
operations. Consequently, special use instructions had to accompany the delivery of these
shipments to the drilling platforms. Moreover, the light-weight shipments had to be isolated in
Wet-Land's warehouse, causing extra handling and poor space utilization. Hence, Wells was
informed that Wet-Land Drilling might seek a new supplier of mud treating agents if, in the
future, it received bags that deviated significantly from 50 pounds.
The quality control department at Bayfield suspected that the light-weight bags may have
resulted from "growing pains" at the Orange plant. Because of the earlier energy crisis, oil and
natural gas exploration activity had greatly increased. This increased activity, in turn, created
increased demand for products produced by related industries, including drilling muds.
Consequently, Bayfield had to expand from a one-shift (6:00 A.M. to 2:00 P.M.) to a two-shift
(6:00 A.M. to 10:00 P.M.) Operation in mid-1988, and finally to a three-shift operation (24 hours
per day) in the fall of 1990.
The additional night-shift bagging crew was staffed entirely by new employees. The most
experienced foremen were temporarily assigned to supervise the night-shift employees. Most
emphasis was placed on increasing the output of bags to meet the ever-increasing demand. It was
suspected that only occasional reminders were made to double-check the bag weight-feeder. (A
double-check is performed by systematically weighing a bag on a scale to determine if the proper
weight is being loaded by the weight-feeder. If there is significant deviation from 50 pounds,
corrective adjustments are made to the weight-release mechanism.)
To verify this expectation, the quality control staff randomly sampled the bag output and
prepared the following chart. Six bags were sampled and weighed each hour.
Average Range
Weight
Smallest Largest
Time (Pounds)
6:00 A.M. 49.6 48.7 50.7
7:00 50.2 49.1 51.2
8:00 50.6 49.6 51.4
9:00 50.8 50.2 51.8
10.00 49.9 49.2 52.3
11:00 50.3 48.6 51.7
12 Noon 48.6 46.2 50.4
1:00 P.M. 49.0 46.4 50.0
2:00 49.0 46.0 50.6
3:00 49.8 48.2 50.8
4:00 50.3 49.2 52.7
5:00 51.4 50.0 55.3
6:00 51.6 49.2 54.7
7:00 51.8 50.0 55.6
8:00 51.0 48.6 53.2
9:00 50.5 49.4 52.4
10.00 49.2 46.1 50.7
11:00 49.0 46.3 50.8
12 Midnight 48.4 45.4 50.2
1:00 A.M. 47.6 44.3 49.7
2:00 47.4 44.1 49.6
3:00 48.2 45.2 49.0
4:00 48.0 45.5 49.1
5:00 48.4 47.1 49.6
6:00 48.6 47.4 52.0
7:00 50.0 49.2 52.2
8:00 49.8 49.0 52.4
9.00 50.3 49.4 51.7
10:00 50.2 49.6 51.8
11:00 50.0 49.0 52.3
12 Noon 50.0 48.8 52.4
1:00 A.M. 50.1 49.4 53.6
2:00 49.7 48.6 51.0
3:00 48.4 47.2 51.7
4:00 47.2 45.3 50.9
5.00 46.8 44.1 49.0
6:00 46.8 41.0 51.2
7:00 50.0 46.2 51.7
8:00 47.4 44.0 48.7
9:00 47.0 44.2 48.9
10:00 47.2 46.6 50.2
11:00 48.6 47.0 50.0
12 Midnight 49.8 48.2 50.4
1:00 A.M. 49.6 48.4 51.7
2:00 50.0 49.0 52.2
3:00 50.0 49.2 50.0
4.00 47.2 46.3 50.5
5:00 47.0 44.1 49.7
6:00 48.4 45.0 49.0
7:00 48.8 44.8 49.7
8:00 49.6 48.0 51.8
9:00 50.0 48.1 52.7
10:00 51.0 48.1 55.2
11:00 50.4 49.5 54.1
12 Noon 50.0 48.7 50.9
1:00 P.M. 48.9 47.6 51.2
2:00 49.8 48.4 51.0
3.00 49.8 48.8 50.8
4:00 50.0 49.1 50.6
5:00 47.8 45.2 51.2
6:00 46.4 44.0 49.7
7:00 46.4 44.4 50.0
8:00 47.2 46.6 48.9
9:00 48.4 47.2 49.5
10:00 49.2 48.1 50.7
11.00 48.4 47.0 50.8
12 Midnight 47.2 46.4 49.2
1:00 A.M. 47.4 46.8 49.0
2:00 48.8 47.2 51.4
3:00 49.6 49.0 50.6
4:00 51.0 50.5 51.5
5:00 50.5 50.0 51.9
Discussion:
Chapter 3 Bayfield
Gagnon's first stop later that day was the production floor. His discussions with the production
supervisors in the winding department indicated they had no real grasp of what the problem was
or what to do to correct it. A tour of the winding operation indicated that there were three
machines that wound wire onto plastic cores to produce the primary and secondary electric motor
windings. After inspection by quality control (QC), these windings then went to the packaging
department. Packaging personnel, Gagnon found, inspect their own work and make corrections
on the spot. The problem is that too many windings are found to be defective and require
reworking before they can be packaged.
Gagnon's next stop was the quality control department where he obtained the records for the past
month's winding department rejects (Table 1).
Table 1
Discussion:
Given the following data for the number of defects per spool of cable, using three sigma limits, is
the process in control?
Sample No. No. of failures Sample No. No. of failures
1 12 11 9
2 9 12 10
3 25 13 12
4 16 14 9
5 10 15 8
6 13 16 11
7 11 17 24
8 18 18 13
9 12 19 10
10 8 20 11
B 33 1 30 39
Their only advantage is being the sole distributorship which is getting them the sales. Complaints
from the customer have reached EX Motorbikes and the company is now on the lookout for
another dealer for that area.
Mr. Pal Singh of Moon Motors finds himself to the brink of business. He has to immediately do
something. Getting to talk with his employees, he found 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 decked up, flashy and sparkling bright,
while the service station was dirty. There were oil stains all over; the service staff clothes were
all messy. The instruments were lying all over the place. One mechanic was shouting for a size 4
spanner and his colleague was finding difficulty in locating it. Mr. Pal returned back to his AC
cabin since there was a call on his cell informing him that officials from EX Motorbikes are
waiting in his office.
Discuss:
Naneen found that ‘Eskimo’ was taking away a major share of his family-car market. Naveen
wanted to use his company’s niche on quality and tradition. He called for a meeting of the
managers and briefed them on the market situation. He said the company would have to obtain
either the C11 quality award or Peacock award for quality in two years time. The top officials put
their heads together and came out with a vision ‘market leadership through quality’. They
stressed the need to bring in quality into the process, which would ensure product quality.
Naveen in all meetings kept stressing that total quality management is a never ending process. It
is a process of continuous improvement of continuously questioning the way you do things, and
of continuously re-evaluating the market, customers needs and work process and procedures. It is
a process if done properly would continuously renew itself.
Training was focused so that everyone in the organization is aware and come in unison towards
the management’s vision. Top manager were first trained on TQM. It was their responsibility to
train their subordinates who in turn was asked to train their immediate juniors. Over a period of
three months the entire organization was reared towards TQM. The organization started bringing
in improvisation in the commercial vehicle segment. There was a new fleet of vehicles. The
design was made using the feedback from their existing customers. Some of the vehicles were so
designed that they could also be used as a family car. The family car ‘Scotto’ continued in the
market. Another mini car was attached to the family cars category called ‘Flash’. ‘Flash’ was
brought in to compete with ‘Eskimo’ in the mini car category. The entire team had worked
towards the vision and was waiting for the launch of the new breed of commercial vehicles and
family cars in the national auto fair. A quality consultant was approached and was asked how to
proceed further and how to launch the products. There was a 200% price hike announced by
‘Eskimo’. The original price seemed to be an introductory offer.
Discuss:
1. The new set of vehicles have been designed considering the existing customers feedback.
Do you feel it is sufficient in the present scenario? What will be your suggestions?
2. As the quality consultant what will be your recommendations?
3. How “Pokayoke” can be used in this scenario?
Discuss:
1. As a quality lead assessor advise the type of certification the Enviaud can get?
2. what are the pre-requisites and the methodology to be followed to get the certificate?
Presently he finds it is six months since he has given his moped for service. During last one
month, there were three times the moped didn’t start and he had to tow it to a roadside machine,
who normally took 3 hours for repairing it. The fault was very often minor such as carbon
deposit in the spark plug, etc. the machine had charged between Taka 50 to taka 100.
Shyam was considering whether he should go for dealer service where the standard service
charge was taka 75 plus additional charges for items replaced. Leaving at the dealer service
would normally take 2 days since there are several mopeds in queue in the dealer service
stations. Shyam is wondering whether he can go for a new spark plug which would cost him taka
150. Shyam noticed in a magazine the failures of spark plug under normal operating conditions
during the total period of 10 years as follows:
Time 0 1 2 3 4 5 6 7 8 9 10 Total
No. of failure 0 3 11 17 30 10 9 7 6 4 3 100
Discuss:
1. Calculate the failure rate and the probability of survival of spark plugs using the
reliability figures, the service downtime, and the cost.