SCLM449 - Case Study 2 - Group 7 - Process Control And Improvement.docx - EIU - Report

2009 words - 9 pages

1 |
P a g e
Lecturer: Giang Nguyen SCLM 449
Case Study 2
Group 7:
Nguyen Hieu Nhi
Nguyen Thi Ai Vinh
Nguyen Thi Tu Trinh
Truong Thi Tu Nguyen
Duong Thi Phuong Thao
Summary of the current situation and quality management system of VWG 3
Suitable alternative tools and techniques 4
New approaches for quality management system for the company 5
Recommendations for implementation action plan and possible timeline 7
Conclusion 8
References 9
P a g e
I. Summary of the current situation and quality management system of VWG
In 1947, VWG had been founded in Blackpool. This company began to manufacture hand crafted automotive parts.
In the early 90s, small sports cars became popular, they decided to make an innovation. It means that they would modify, assemble in order to enhance the quality of cars. Their products are premium cars which are different from the other companies. Therefore, they placed craftsmanship ate the heart. This was why their products have a high price.
In 2010, with the demand of customers, VWG sold their in-house products and designs to other car assembly plants. Moreover, they could manufacture high end a chrome plated gear shift, dash surround assemblies and door handle which were their innovation.
With this achievement, their products penetrated the foreign market.
However, in 2013, turnover was higher than £38 million, pre-tax profits were only £2.8 million which was seen as the lowest profit margin in the previous 5 years. The CEO explained that: “During the transition, the company has not achieved efficiencies of production, so we have to find some solutions to fix this problem.’’
Quality management system:
· Firstly, all cars which leave the assembly line will be inspected in order to ensure that they satisfy the high standards of the company.
· Secondly, they take 10% most items as a batch “ sample basis” in order to check the quality. This activity will be completed after the polishing process but before packaging process. If any batches are rejected, they will be inspected 100%. Regarding the chrome plated gear shift, they will be inspected 100% for both surface finish as well as dimensional accuracy. If the degree of the defect can not accept, rejected parts will be reworked or scrapped.
· Thirdly, Quality Assurance Department staff have a right to check quality problems of the production staff. But in fact, the quality and manufacturing team can negotiate together. Therefore, the inspectors are usually joked and pranked in terms of enjoying the expense of Jonh’s team.
II. Suitable alternative tools and techniques
From the perspective of finding the problems in the VWG car manufacturing company in the early stage, there are many factors related to the quality issues in the company thereby needing a tool that has specific features in defining, analyzing and covering the whole problems. Therefore, we should use the cause – n – effect diagram (Fishbone diagram, Ishikawa).
The Production
The Polishing Shop
Do not know how to decide what constitutes a serious scratch that needed to be
Unsure how to measure the
The production team was too busy to discuss about keeping production levels
The production staff thought the expectation was too
The bonus are paid for production efficiency not
The production staff could not spend all day worrying about every little
One batch of gear sticks had deep scratches and half of them had serious dints,
The perception between Sam Aston in the polishing shop and Bill Ratchet, the production supervisor were
100 cars sold, around five had been returned with complaints about paint defects, dented body panel and serious electrical problem.
When the customers returned the products which must cost a lot of money in the long
The overtime costs is largely due to re – working product in Polishing and on the car line.
Customers Services and the sales team
Financial Perspective
The reason why we choose this diagram in order to define and analyze the dilemma in this case:
· Firstly, this tool can describe the relationship clearly and logically. From this diagram, we can recognize what departure in the company has the most influent in the quality thereby recognizing the small details in each reason easily.
· Next, show all causes simultaneously. Any cause or causal chain featured on the fishbone diagram could lead to the problem. Therefore, we can pursues and visualize the chain of the problems and know the reason that made a great contribution to the problems more easily.
· Finally, using the Fishbone diagram (Ishikawa) we can brainstorm all the process and factors that play a crucial role in causing the dilemma. Thus, having the whole picture about the problems in finding the solution might lead the result effectively.
III. New approaches for quality management system for the company
The VWG has been applied some methods such as 5S, Kaizen and Total Productive Maintenance (TPM) but they are not efficiency and accuracy. Hence, there were many mistakes cannot be eliminated. The firm should apply “six sigma” quality control method to deal with any problems and improve the quality level of the products. Six-sigma is a methodology to enhance the capacity of business processes based on statistic to reduce defects and improvement in profits and quality of cars as well as customers satisfaction.
This method can find defects per millions by five phases:
Define phase
Define the issue, improving activity, the project goals, and customer (internal and external) requirements. It is important to understand the voice of customers to understand mistakes of the process need to be solved.
There are some problems in car production, the rework and customers return costs.
Measure phase
The purpose of this phase is to collect data from the process performance and understand the current quality of products. To be more precise, the team focuses on measure what data is collected and from what source which takes time and effort to the team. It is critical and possible to gain the most reliable results.
Employees should conduct 100% quality inspection for cars.
Analyze phase
The purpose of this phase is to research the business process and the data collection to determine potential root causes of variation, waste, and defects. In this phase, the team uses statistical data analysis techniques to arrive at potential causes of the issue. Statistical data tool is necessary to gain value of this stage of this process.
Having about 10 cars returned with defects and complaints from customers per 100 cars sold. The client complains about paint mistake, noisy brakes, air conditioner not working or attitudes of sellers. Hence, the managers should have some punishes and training again for their employees.
Improve phase
Improving process performance by addressing and eliminating the root causes. This means that the team should choose a solution to improve the system. This is a phase for staffs to create new ways to do something better, cheaper or faster.
Control phase
Controlling the improved of the process and future process performance. The team set up controls to sustain the system improvements and implements the solution and transfers the new improved process to the responsible owner.
Total Quality Management (TQM)
The VWG should also apply the Total Quality Management (TQM) methods to deal with the quality problems.
TQM method uses to improve quality and performance in the organization which will meet client expectations. The purpose of TQM is to ensure all employees work toward the objectives of improving goods quality as well as improve productivity and maintaining employee morale.
To be successful, VWG should focus on eight key elements:
1. Ethics
Ethics is the discipline concerned with good and bad in any situation. Organization establishes a business code of ethics that all staffs are to adhere in the performance of their work. Individual ethics include personal rights or wrongs.
2. Integrity
Integrity implies honesty, morals, values, fairness, and sincerity.
3. Trust
Trust is important to make sure customer satisfaction. Therefore, trust builds the cooperative environment crucial for TQM. It allows decision making at appropriate levels in the organization.
4. Training
Training is very important to enhance productivity for employees. Supervisors are responsible for implementing TQM within departments and impart knowledge for their employees the philosophies of TQM.
5. Teamwork
To become successful in business, teamwork is also a crucial element of TQM. Teams provide more permanent improvements in processes and operations. It helps the business receive a better solution to solve problems. Therefore, the VWG should encourage employees to concentrate in teamwork.
6. Leadership
It is the most important element in TQM. Leadership is common in the organization and requires the manager to provide an inspiring vision, make strategic directions that are understood by all values. More importantly, the supervisor has to commit in leading his employees to be successful in the business.
7. Communication
It binds everything together. The success of TQM demands communication with the organization members, suppliers, and customers. Communication with sharing of correct information is important.
8. Recognition
It should be provided for both suggestions and achievements for teams as well as individuals.
IV. Recommendations for implementation action plan and possible timeline
We use PDCA (plan-do-check-act) to implement approaches including Six-sigma and the Total Quality Management for improving quality management system for the company. This is a cycle with four steps consisting of planning, doing, checking and acting. In these steps, we will explain what the company will implement the action plan with a possible timeline.
· Plan: they need to collect information to describe the whole problem through using use the cause – n – effect diagram (Fishbone diagram, Ishikawa). Thanks to this tool, they
can discover and analyses the root cause. And this is the quality issue. Thus, to solve this problem, we recommend the company the approaches including Six-sigma and the Total Quality Management. We think that it takes five days to implement. It means that they spend one day for collecting data and two days for analyzing the data to find the problem. After that, we spend two days to decide what approaches will be applied.
· Do: the company will execute as we planned. We will implement Six-sigma and Total Quality Management approaches to improve the quality level. It takes 10 days to implement this step.
· Check: the company needs to audit internally to determine the level of compliance. They also have to monitor the quality inspection. It means that they observe the level of defections through the control chart. Whether or not the defections excess the upper control level and the trend of defections. Depending on this chart, they can know how well or badly they apply the strategy. We think this step will happen within five days.
· Act: standardization of the successful solution to continual improvement. The company has to review the process that if the fraction defective excess the upper control level, they need to fix immediately. This step takes the company five days to do this step.
V. Conclusion
The company didn’t achieve the efficiency of production and the problem is the quality. The VWG has applied many ways to enhance the quality, but they are not efficiency and accuracy because of many mistakes cannot be eliminated. The board of director decides to use suitable alternative tools and techniques to find and evaluate the problems before solving them. The company then applies many methods to deal with quality problems. Firstly, the company use the six-sigma method to control the quality, the six-sigma is a good methodology to improve the quality to help find the defects through five phases. Finally, Total Quality Management (TQM) method solves the quality problems. TQM improves production and maintaining employee morale to enhance the quality.
ASQ (n.d). What is Six Sigma? Retrieved from
Investopedia (n.d). Total quality management-TQM. Retrieved from
Master (n.d). The DMAIC approach: 5 phases of six-sigma. Retrieved from
Padhi (n.d).The Eight elements of TQM. Retrieved from tqm/

More like SCLM449 - Case Study 2 - Group 7 - Process Control And Improvement.docx - EIU - Report

Group Assignment: Employment Health & Safety Case Study

5168 words - 21 pages ... , lecture 7), there are 10 critical steps that employers are required to take in the investigation process: 1. Define the scope of the investigation 2. Select the investigators and assign tasks 3. Brief the investigating team regarding the description of accidents, list of witnesses etc. 4. Visit the accident site (Prepare sketches, take photos) 5. Interview victims and witnesses 6. Determine what, where, when and how the abnormality occurred 7 ...

LS Group (A) Case Study Solutions

1128 words - 5 pages ... LS Group Case(a) For LS Group, what specific reasons were presented to justify the ERP implementation project? Did these reasons warrant an ERP implementation project?Reasons:1) LSG currently uses an information system, which is outdated and slow. Furthermore, it is not compatible which makes communication impossible. Hence, transmitting data is time consuming and required a lot of manpower as the staff was required to reenter data into each ...


2353 words - 10 pages ... Management (FM) services. According to the given case study, the Scope, Time and Cost variation with project modifications were not discussed with SA health and this scenario is considered as an extreme risk but later resolved with a state commercial settlement. In the audit report, they have mentioned few recommendations for a better procurement management, which is as follows: · Frequency and content in reporting about the clinical equipment ...

Control Systems In Petroleum Industry - University - Case Study/ Research Paper

3019 words - 13 pages ... Unit Title Control Systems Name of Lecturer Dr Ganesh Kothapalli Due Date 11/04/2018 Topic of Assignment Case Study Report on Process Control Systems Group or Tutorial (if applicable) Course I59 – Master of Engineering Campus Joondalup I certify that the attached assignment is my own work and that any material drawn from other sources has been acknowledged. This work has not previously been submitted for assessment in any other unit or course ...

A Report On Case Study Analysis

2151 words - 9 pages ... This case study report is requested by Dr xxx, the lecture of managing communications technology in xxx University . The case study comes from course study guide of managing communications technology (2008). This report is due on 05th of May, 2008.1.2Company backgroundTwo companies, Gretham Young (GY) and Jameson Business Systems (JBS) formalized their relationship and became a new company which is named Gretham Jameson Consulting (GJC). The new ...

Case Study Report On Information Management Systems - Martni College IMS100 - Case Study Report

2088 words - 9 pages Free ... Case Study Report IMS100 INformation management Systems Assessment 3 Student Name: Introduction ABC Timber and Hardware are a small chain of hardware stores operating out of 12 branches across the state. The current Information Management System (IMS) requires expert personnel to extract relevant information from the accounting system and therefore requires a longer period of time to progress down the supply chain. As a result, sales ...

Nutrition And Health - Case Study - Nutrition And Health - Case Study

2434 words - 10 pages ... sweetened beverages X Recommendation = limit intake of added sugar and choose water Alcohol consumption X Recommendation = <4 drinks/day (men) <2 drinks/day (women) Vegetable consumption X Recommendation = 5 serves/day Fruit consumption X Recommendation = 2 serves/day Recommendations Physical activity: In the self-report survey it was noted that you participated in 120 minutes of vigorous activity and 360 minutes of moderate physical activity ...

Case Study 2 - Accident Causation - Saint Leo HRA-330 - Case Study Assignment

795 words - 4 pages ... Case Study 2 2 August 30, 2018 HRA-330 Case Study 2 Abstract This case study will discuss the concerns at hand as an HR representative. In this case study, Joe is the employee who brought some safety and health concerns to light and declined to continue you doing his current duties in fear of his life. Joann, his boss, declines his request and uses intimidation, threatening to fire Joe. This case is examined from an HR perspective and discusses ...

BBA102 Report Case Study Business Of Management - BBA Macquarie University - Case Study

1537 words - 7 pages ... ………………………..6 Conclusion………………………………………………………………7 Reference List……………………………………………………….….7 INTRODUCTION The success to creating a positive and dynamic environment begins firstly with understanding groups and managing teams. Sir Richard Branson: managing groups and team objectives explore the characteristics of group teams and behaviours, functions and roles of managers and approaches to management. Discussed within this case study involves the argument ...

CIS 210 Application Architecture - Strayer - Case Study 2

728 words - 3 pages ... Running Head: APPLICATION ARCHITECTURE 1 BUILDING A PAYROLL PROGRAM 6 Case Study 2: BUILDING A PAYROLL PROGRAM Kanda Massaquoi Professor Nancy Romero CIS 210 May 26, 2017 ABSTRACT A job is given to build a payroll program for a large organization with offices spread across the united states. The organization insist on one large data center so that each office will have access via Wide Area Network (WAN). Having to build a payroll program for ...

Lab #7 Case Study On Digital Millennium Copyright Act: Napster - Legal Issues In Information Systems - Lab 4

1039 words - 5 pages ... In your Lab Report file, describe the case and be sure to include the following topics: · How did Napster try to defend itself against RIAA’s claims? Napster claimed that its activities fell within safe harbor space of the DMCA. · What does contributory infringement of copyright mean and how did this affect Napster? One who knowingly induces, causes or materially contributes to copyright infringement, by another but who has not committed or ...

True Fruits Case Study, SWOT And PEST

1056 words - 5 pages ... marketing team 4. International distribution network 5. Market leader for smoothies in Germany 6. Use of exclusive, quality ingredients 7. Innovative production methods 8. Makes use of progressive technology and invests in new technology (high focus on innovation and market research) 9. High brand equity 10. Emotional affiliation with consumers Weaknesses 1. Limited experience in expanding to countries outside the EU region 2. Businesss ...

Netflix Case Study And Survey Results

2266 words - 10 pages ... . Respondents were unlikely to want to reveal more information on illegal downloading practices and declined further surveys. After the prescreen questions, we asked respondents to tell us on a scale of 1-7 with 1 being “not at all interested” and 7 being “extremely interested” how interested they would be in renting a DVD online instead of in a store for a similar price which included return mail service. Out of the 106 total respondents, about ...

Case Study Of Comsyst Technologies - Management, People And Teams - Case Study

3879 words - 16 pages ... or group participation contribution to their final mark. Grading Matrix Member Name/ID Maximum Teamwork Mark (%) Average Participation Score (1-5)2 10 1 Daniela Villota 20 5 2 Navjot Kaur Bumrah 20 5 3 Maziel Rodríguez 20 5 4 Zsuzsa Harangi 20 5 5 Ekene Nwankwo 20 5 MGT600 – Managing People & Teams – Case Study 20 Appendix 2: Peer Evaluation Grading Scheme Rating Description 5 Builds team’s identity and commitment Leads team Evaluates teams ...

Case Study Templete For Work Health And Safety - MIT - Case Study

603 words - 3 pages Free ... Car Parks Poorly Visible Route Comments: CLIENT WORK SITE (Internal) HAZARDS Access Obstacle Areas of Concealment Public Access Fire Doors Stairwells Doorways Passageways Lifts Escalators Comments: Sample form for the risk management process July 2014 Page 2 of 2 CLIENT WORK SITE SECURITY FEATURES Cash Office Hold-up Alarm On Site Security On Site Security Armed Access Control Closed Circuit Television Coverage Other Comments: COMMUNICATIONS ...