Operations Management Case Study

BUS 310AA Operations Management

Homework #5 - Case Analysis

1. The major factor that led Spectrum to initiate a total quality management program was quality. When the business first started, quality wasn’t a concern. They were still small enough to have control over the hands-on aspect of the business. As they grew, so did their acceptable-quality levels. Then, as the marketplace began to evolve, Spectrum’s competitors raised the bar in regards to quality. The Japanese had a style of quality that resembled “zero defects.” Soon, all of the suppliers had to incorporate and maintain a “zero defects” quality in order to remain a supplier.

A second factor is the waste in time and materials that Spectrum was consuming. They decided to take a closer look at customers shipping schedules. They had to know when to ship the products out based on their customer’s needs. Every time a shipment was returned, it cost them approximately $200 for the transshipping and $300.00 for the paperwork. Spectrum also examined how quality was maintained through their suppliers. They had 3 different suppliers producing the same bushing for them. The bushings were inspected twice, once before they left Spectrum, and again after they returned. This caused an almost 50 percent rejection rate of the bushings.

A third factor was getting training management. Everyone is afraid of change, but in order to have management make an impact on their employees, they have to be willing to change. They looked at the quality techniques the Japanese used, as well as reading books by Philip Crosby and videotapes highlighting W. Edwards Deming.

2. The first major element of Spectrum’s TQM program was zero defects. They learned to control and minimize defects in their products. Quality had to be brought back to life and focused on in order to keep their business competitive.

Another element was the training that management went through. Spectrum provided copies of Quality Is Free by Philip Crosby to its management. They also researched videotapes featuring W. Edwards Deming on the statistical control of quality.

The third element of the TQM program was changing the attitudes and habits of their worker’s. They were able to increase production just by being receptive to the suggestions of their line personnel.

3. The role employee training and education played in Spectrum’s TQM program was crucial. They were able to research Japanese quality techniques and implement them into their own every day jobs. Management was able to improve their people and administration roles within the company. This allowed the company to minimize costs and maximize profits. Spectrum looked to its employees that were on the job for better processes and improvements.

4. There are seven factors that must be present in an organization before a TQM