ANSWERS TO CHAPTER 5 QUESTIONS ANSWER 5.1
The International Standards Organization (ISO) specified a set of quality standards in 1987. These standards focus on defining quality control processes to aintain a quality anageent syste sufficient for achie!ing sustaina"le product quality le!els. O!er 1#$ countries are ISO e"ers. %ithin ISO& there are #$$ technical coittees 'oring on 1$&$$$ standards. %orld'ide& there are #$$&$$$ organizations 'hich are no' ISO registered. Only $&$$$ copanies in the *S ha!e done so. In order to "ecoe certified to these standards& a copany needs to do the follo'ing+ ,. -Say what you do& "y prescri"ing all procedures (i.e.& sequences of 'ell/defined steps) engaged in a specific engineering function such as product design& custoer ser!ice& and technology ad!anceent. 0. -Do what you say& "y training eployees in!ol!ed in said function to understand and practice the procedures. . -Prove it "y ensuring that eployees can quicly locate any specific 'ritten procedures if called upon to do so. ,n ISO certified copany is regarded to ha!e achie!ed proficiency in practicing 'ell/defined procedures& thus they are also deeed a"le to "etter ensure product quality. The general categories of ISO standards are as follo's+ ISO 9 2 3uality anageent and assurance standards (general guidelines& ad!isory) ISO 9! 2 3uality systes (for copanies in!ol!ed in design& de!elopent& production& installation and ser!icing of products) ISO 9" 2 3uality systes (only for production and installation of products)
ISO 9# 2 3uality systes (only for final inspection and testing)
ISO 9$ 2 3uality anageent and quality syste eleents (ad!isory)
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4ach standard is descri"ed "y nuerous !olues of anuals. ,s an e5aple& the ISO 9$$# standard co!ers the follo'ing engineering acti!ities+ (1) anageent responsi"ility6 (#) quality syste6 () contract re!ie'6 () docuent control6 () purchasing6 () purchase supplied products6 (7) product identification and tracea"ility6 (8) process control6 (9) inspection and testing6 (1$) inspection& easuring and test equipent6 (11) inspection and test status6 (1#) control of nonconforing product6 (1) correcti!e actions6 (1) handling& storage6 pacaging and deli!ery6 (1) quality records6 (1) internal quality audits6 (17) training6 and (18) statistical techniques. ANSWER 5.2
The engineering anager should do the follo'ing+ ,. :an order the perforance of all staff in the departent "ased on perforance criteria agreed on at the "eginning of the year. 0. ;i!ide the departental staff into three groups& -e5cellent& -a!erage and -arginal& and assign to the a salary increase of .$ percent& #.7 percent& and 1.$ percent& respecti!ely. . %ithin each of these groups& the allocated salary increase ay "e su"di!ided to allo' additional differentiation. ;. The su of the indi!idual salary increases so assigned ust equal the total allo'a"le increase for the entire departent. 4. 45plain to staff face/to/face& at the perforance re!ie' tie& the 8 percent total salary increase constraint and the rationale of distri"uting indi!idual salary increases. ANSWER 5.3
The director should not appro!e the anagerot insignificant is the potential ipact
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on staff orale arising fro the percei!ed preferential treatent of a special indi!idual "y anageent. >o person is indispensa"le to any organization. ?anageent ust "e prepared to handle eergencies and une5pected personnel changes at all tie. ANWSER 5.4
The staggered lunch "rea did not allo' the operators to lunch together and then socialize for a period of tie. Social gathering and e"ership in a peer group are no'n to "e an iportant oti!ation factor. The operators "ecae less oti!ated as such a socializing opportunity 'as taen a'ay fro the. , reedial solution is to reinstall the original lunch "rea and to initiate additional social e!ents such as -shop picnics& -hristas parties&@ and -"o'ling nights to foster peer group acti!ities. ANSWER 5.5
The ey issue in!ol!ed in this situation is ho' to "alance the copanyo& 0ill arter should not "e gi!en the Ao". So far as the copany is concerned& it has gained one good procureent anager fro the outside 'hile still ha!ing 0ill ready to "e prooted into the anagerial ran. 0ill is ad!ised to "e patient and to continue practicing !arious anagerial sills& readying hiself for the ne5t anagerial opportunities. Bo'e!er& the departent anager should su"it a report to alert the copany
The follo'ing steps ay help resol!e the inforation o!er/ load pro"le at hand+ ,. Ciit inforational reports to one page and e5clude supporting details. They should include the proAect nae& o"Aecti!es& "udget& personnel& ey final results and percei!ed ipact. Only reports for proAect "udget e5ceeding D1$ illion should "e sent to the copany president and copied to the
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responsi"le E=s 'ho 'ill recei!e all other reports 'ith lo'er "udgets. The proAect support details are to "e preser!ed in full/ length reports 'hich can "e requested at a later tie. 0. *se -search and copile soft'are to generate pacages of one/page reports in order to gain a "roader perspecti!e o!er related acti!ities in the copany. . =rescreen and endorse all reports& 'hich request presidential appro!al& "y E=s and deli"erate the at staff eetings. ;. Send all reports !ia the Intranet to ensure speed. The copany should offer training to those 'ho need to "ecoe failiar 'ith this ne' style of reporting. 4. Bold quarterly re!ie' eetings to listen to iportant staff presentations prescreened "y E=s. F. onsult indi!idual contri"utors or departent heads regarding soe of the reported proAects and offer coents and feed"ac. ANSWER 5.7
The follo'ing steps ay help the departent head to regain control of the situation+ ,. Be should do his hoe'or to understand the aAor issues in!ol!ed such as+ (a) 4ase of use of these achines "y operators (e.g.& setup tie& con!enience in changing tools& etc.). (") Factors affecting producti!ity gain. (c) Cife cycle cost and deli!ery. (d) :easons for long/ter producti!ity ad!antages of S'iss/ ade achines o!er ,erican counterparts. (e) Others. 0. ,s "oth the autoation tea leader and the line super!isor to prepare and ae presentations "efore an outside autoation e5pert 'ho is to "e hired "y the departent head as a consultant to e!aluate the proposals and offer an ipartial recoendation. . Tell all staff "eforehand that the departent head 'ill decide on a course of action "ased on the inputs of this outside consultant and that he e5pects e!eryone to 'holeheartedly support the anageent decision.
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;.
Ipleent the plan to control the situation.
ANSWER 5-8
;iscriination& fa!oritis and property isuse are !ery serious charges. They ust "e dealt 'ith iediately to a!oid an eployee orale pro"le in the departent. ,s director of production& you should tae the follo'ing steps to e5ert control o!er the situation 'ithout delay+ ,. 3uery the engineers for facts (e.g.& the nature of the incidents as 'ell as dates& naes& circustances& facilities in!ol!ed& etc.) and as 'hy they thin that discriination& fa!oritis and facility isuse 'ere coitted. 0. Than the for the inforation and state that you 'ill personally loo into these atters iediately and 'ill let the no' your findings and disposition. ,ssure the that you 'ill eep confidential the fact that they filed coplaints. . all in the anager and as for facts related to the reported incidents. ,lso as 'hat actions 'ere taen and 'hat the rationale 'as "ehind these actions. ;. ontact additional people 'ho ay ha!e "een affected "y or "e a"le to !erify specific facts in the case& "ut refrain fro soliciting their interpretations 'hich could "e "iased in one 'ay or another. 4. ,ssess if isunderstanding andGor facts unno'n to the engineers 'ere the reasons for the coplaints. ;eterine if the rationale gi!en "y the anager aes sense fro the copany
es& the copany should tae the sall order 'hich ay precede ore sales in the future. ,ccepting the sall order 'ill
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also deonstrate the fle5i"ility of the copany in satisfying custoers< needs. Bire teporary people to tae o!er the esta"lished product de!elopent 'or so that e5perienced in/house product de!elopers ay de!ote tie to create the sall/order ne' products. ,dd teporary people to replace those in production so that e5perienced shop floor 'orers can tae on the Ao"s of odifying the production process for the sall order. ANSWER 5.10
Technical no'/ho' is typically deri!ed fro application e5perience. It is practically useful and& although it is costly to "ring forth& it is usually not of the type 'hich can "e patented. One e5aple is the use of a co"ination of sensors and soft'are a!aila"le in the open aret to easure the tolerance of large achined surfaces. 45pertise of this type is the -tried and true trics of the trade. *sually& sall "usinesses lac the financial resources needed to fight against the !iolation of confidential agreeents and the infringeent of intellectual property rights in foreign countries. The follo'ing ay e5eplify useful alternati!e steps to protect technical no'/ho'+ ,. For a Aoint !enture and rely on the doestic partner
The copany suffers fro t'o aAor policy deficiencies+ ,. ,uthority >ot oensurate 'ith :esponsi"ility / =lant anagers are responsi"le for profita"ility& and Eernon Scott controls the e5penditures required to ensure profita"ility such as aintenance& coputers and other facilities enhancing the plant producti!ity. 0. ;eficiency in 0udget ,ppro!al =olicy / >o distinction is ade "et'een capital "udget for production facilities !ersus that for supporting facilities. >o clear guidelines are esta"lished for
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appro!ing these e5penditures. ;isagreeents "et'een Scott and plant anagers 'ere not resol!ed to e!eryoneJs satisfaction. Heorge 4lrod should not fire >elson& "ut a 'arning should "e gi!en in order to preser!e respect for organizational authority. Specifically& Heorge 4lrod should tae the follo'ing steps+ (a) all in >elson and Scott to state that it 'as 'rong for >elson to purchase equipent coponent "y coponent and direct >elson not to do it again in the future. In the sae eeting& Heorge 4lrod should also confir >elsonJs responsi"ility for plant profita"ility and their direct accounta"ility to the president. ertain facility needs ust "e satisfied to ena"le hi to carry out those responsi"ilities. (") :equest that Scott esta"lish a re!ie' procedure to resol!e future proposal funding disagreeents. In particular+ •
,nnual facility "udget is to "e prepared for re!ie' and appro!al "y the 45ecuti!e oittee.
•
,dditional "udget requests "y plant anagers are to "e su"itted to Scott 'ith copies to 4lrod.
•
,ll appro!als and reAections& including Austifications& are to "e in 'riting.
(c) 3uery >elson and other plant anagers for ad!ice on ho' to re!ise the present "udget request and appro!al procedures& gi!en the need for corporate control and the plant anagers< needs to ensure profita"ility. (d) =u"lish a re!ised "udget request and appro!al procedure for use "y all. Answer 5.12
,ll 'orers respond to criteria "y 'hich they are easured and copensated. This case reflects a poor anageent Ao" done 'ith respect to setting perforance standards& 'hich ephasize quantity of output 'ithout regard to quality of output. The anufacturing anager needs to first define the accepta"le standards for noral operations& utilizing inputs fro production 'orers& industrial engineers and outside consultants in ters of the follo'ing+
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,.
3uantity of output.
0. @:ight/first/tie@ rate / the percentage of products 'hich pass through the production syste 'ithout re'or and achie!e accepta"le quality. .
Scrap rate.
;.
=ercentage of products 'hich are re'ored.
Su"sequently& the incenti!e progra for the anufacturing operations should "e structured to re'ard perforance e5ceeding these noral standards.
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