Future Course of Action for the Company - Term Paper Example

Report on Future Course of Action For The Company Report Submitted by: Index 1. Summary of the situation and assessment 2. Client - Company interaction model 3. Discussion on product design and performance 4. Overcoming faulty production and Quality Control (Using Six Sigma) 5. Employee Training and Upgrading 6. Conclusion and recommendations Executive Summary Analysis of the current problems point out to five functional areas where some correction or rethinking is necessary to keep the current clients without complaints and also to enhance the product and promote Research and development of a better motor to avoid failure. Unless these functional areas, namely lack of progress in design and development, faulty production process with current lapses in the product and faulty Parts and assembly failure are tacked first, we will be in a very sorry position. Added to that we have to with due consideration of the loss of confidence of our client and what we ought to do about machinery and production process on an emergency basis to retain client confidence. In analyzing these problems this report presents some possible solutions within the ambit of current organizational structure and also using current resources to meet expectations of the star client and also expand to better models in the short term so as to bring about long term stability. This report discusses some viable options and proposals. 1. Summary of the situation and assessment On this day of analysis, some of the serious problems that have been noticed are that our motors are failing. Our product is not serving our clients in their assembly as much as they hope and the car user finds the window control system malfunctioning. Our client therefore receives complaints which have according to them a negative opinion of their car in the public mind, and are going to inspect our facility. The motors produced on a single day had to be scrapped because a single component was found to be faulty. The machines we have to assemble the product seem to be obsolete in comparison with the current market trends. With all that the production control and the management of production and research seem to be in chaos. We require liquid funds to create a product that can compete with other motors that are manufactured by competitors and also those likely to be available at lesser cost from abroad like from China for example. Analysis of the current problems in the light of all that seen above shows that the primary concern must be to keep the current clients without complaints and also to enhance the product and promote research and development of a better motor to avoid failure. This must be done in consultation with the clients and understanding the nuances of the window, its structure and why the current motor fails. The second major problem we have and which must be corrected immediately is our production process. If we continue to manufacture products that incorporate faulty components and waste resources, we cannot hope to be competitive and also deliver in time. Therefore there is a need to analyse the production process and restructure it. That brings us to the question of what we ought to do in future to upgrade the machinery and provide for long term solutions to research and creating now products. Thus the problems are simply based on the error of how we organize ourselves and how far we have been blind to some of our shortcomings. The need of the hour therefore is first to convince the client that we are improving, and show them that in future they can expect better service. To that end we need to create a quality mapping system that can be shown to be the company’s way of achieving optimum quality and a zero complaint from the public regarding the motor we supply. The funds required for the research and other up gradation expenses depends on our current client and also on marketing a better motor to new clients and finding alternate applications to the product in allied industries. This marketing and research venture ought to go hand in hand. Without such efforts we are likely to be ignored in future by the market. Therefore we have to simultaneously overhaul our whole system to meet the challenge forthwith. 2. Client – Company Interaction Model “Power windows are great… when they work. A bad power window motor or window regulator takes the fun out of driving. Motorists and passengers alike give utmost concern to comfort and convenience. Unfortunately, car window regulators sometimes give up the ghost, and you’re stuck with a car window that won’t open or close. Car window regulators and window motors can freeze up or get clogged and render your power windows useless. Worse, power window motors and window regulators are quite expensive to repair or replace.”1 That is a quote from a web log which shows the attitude of the end user of our product and it also shows the apprehension of our clients. The solution we have here during the clients visit is to follow a model of business interaction in such a way that we are able to specify the exact requirement of the client, and also the faults of our products along with the components that needs be changed. It is suggested that we revamp our business model with our client and follow the business interaction model suggested by Winograd, (Stanford) and Fernando Flores, 2 According to the model specifications the process has four phases. The first is the preparation, as in our case we thoroughly reanalyse and establish our client’s exact requirement and our current inadequacies. The second stage will be to negotiate the schedule and the method of delivery. This will be critical on account of the current situation. We must be able to agree and come to terms regarding our future schedules and delivery methods. We must also ensure that there is a clear understanding of what how and when the client expects us to deliver goods. If we follow this model in the future negotiations with all the clients, the end result will be according to the ActionWorks company, “A business process designed using the Business Interaction Model becomes a series of loops, one main loop and potentially hundreds of sub-process loops representing interactions between the Customers and Performers involved at different stages of the overall process. ..Because of the Model's basis in human interaction, our customers have been able to manage processes where mapping each potential variant was impossible.” 3 We must therefore switch to this interaction model at the earliest so that the company will benefit in terms of accountability, and customer satisfaction. In recreating our interaction and production model we must also consider the customization of products in detail. Juan Diego Frutos et al 4 have suggested an object oriented model to customise our product and services. According to them, mass customisation or the ability to provide individually designed products to all our customers is paramount. In this context we have to first design a strategy for assessing by interaction with the visiting officials of our clients, their needs and requirements and specifying which of our processes meet the requirements at the moment and which process need be replaced. It also should indicate to us which of our own suppliers regarding the components we must select and what quality we ought to insist from them. In other words for each set of clients we are going to have a similar negotiation and evaluation of our suppliers. The faulty components in this production and the previous defects call for a detailed interaction in this model with our suppliers. That should it is hoped, pave way for a better understanding with our clients and suppliers. Current implications: It will show our client that we are serious about our business and help them advise us on their needs. Long term implications: We will have a cost effective and efficient system in interacting with clients and will have evolved a precise method of evaluation and understanding client demands and thereby come up with the exact type of product that is required by the client. 3. Discussion on product design and performance One of the most important considerations we have to take up with care is the future design and product development. The automotive industry is a competitive one and the customers will change patterns on an annual basis. This will require that we come up with motors to suit the new models in a very short notice. Therefore research and development of new motors, or our product design process is a never ending and ongoing one. James Morgan the Vice President of Troy design summed it up aptly: “The ability to effectively bring innovative, high quality products to market rapidly has become a hallmark of the successful consumer driven enterprise. This is particularly true in the automotive industry where radically shortened product development cycle times and drastically increased product quality levels remain crucial differentiating factors between the best performing companies and the rest of the performers”5 Thus according to him, and it is evident also for us that speed in reaching the market is critical. This can only be achieved by being effective to the maximum in all stages, especially the designing stage where we make the foundations for the system and are able to create a design that meets our customer’s needs and also provide a competitive edge to them in their product development. Unless we work close with the client and recognize the subtle threads in the aspect of design, we cannot be successful. We require liquid funds to create a product that can compete with other motors that are manufactured by competitors and also those likely to be available at lesser cost from abroad. This must be done in consultation with the clients and understanding the nuances of the window, its structure and why the current motor fails. Funds will come in only if we are able to convince the clients that our product design will meet their standards and quality. This is a cycle that will be repeated each year. The combined practice of quality control and the product enhancement activities will result in market retention and also open up markets for the company. It will enable the company to become competitive and retain the current market share which is now being threatened. We will have a cost effective and efficient system for research and also can explore the future markets in other segments for which we will obtain expertise in carrying out the product design model. Further each year we will be encountering new products and will be competing with others and this process is expected to keep us in the top of the suppliers list of major clients once they become aware of the design process we initiate exclusively for each client. Current implications: It will make our products suited to the market and make us competitive and help us retain our market share. Long term implications: We will have a cost effective and efficient system for research and also can explore the future markets in other segments for which we will obtain expertise in carrying out the product design model. Further each year we will be encountering new products and will be competing with others and this process is expected to keep us in the top of the suppliers list of major clients once they become aware of the design process we initiate exclusively for each client. 4. Overcoming faulty production and Quality Control (Using Six Sigma) It is impetrative that we follow a six sigma model for quality control that will help us keep quality and reduce waste and also complaints. James O. Westgard says that 6 “It is a basic principle of Six Sigma Quality Management that well-designed processes are critical to achieving quality.” I point out that one of the major problems which we have at our hand is just the lack of quality caused by faulty components and failure of the motor. We must be able to establish a performance specification for our process with proper quality control at each stage of production. We must therefore be able to tell with precision the tolerance limit for each component. By creating a total allowable error margin and monitoring the process from the beginning we can eliminate the component failure mishaps that have just occurred. The aim of the quality control application will be to establish a better method of production and elimination of errors or keeping errors to minimum in the production process. It also will entail a detailed assessment of component quality and include our suppliers and their compliance with our quality requirements. Therefore the immediate need is to get the processes overlooked by a qualified agency that can advice us on getting our company qualified for the six sigma certification. This will help an external agency evaluate our process and pinpoint the flaws which we ought to correct. It will also make the company reach the benchmark for quality, which by itself is an asset and an investment. Current implications: Immediately it will galvanise our production and give a sense of commitment to the employees and at the same time send out signals to component suppliers that we will not tolerate faulty ones and strict quality control is in place. It will also signal our clients that the certification by the competent authorities mean that we have taken steps to become efficient.. Long term implications: By being six sigma compliant, our work and process will be audited by an external agency and it also involves all the workers and supervisors. It will thus instil a role and responsibility behaviour in them. It will also make the production process transparent and will help us identify flaws and bottle necks in the system. 5. Employee Training and Upgrading The important thing that automatically will evolve out of restructuring the system will be employee training and reorientation. With an external agency monitoring the quality process and with employees being evaluated constantly in the system we will have peak performance. A reward based systems of incentives for those employees who confirm to the minimum error level will produce enthusiasm and also efficiency. The benefits of employee education is manifold, as pointed out in the article “The Benefits of Skill-Based Training”7 The most important part is the increase in productivity which means that the company can take on additional commitments and also keep up current commitments. Those who are not trained reduce the turnover. Those properly trained have no issues and are happy at their work. Training will help in recruiting the proper personnel and weed out those who are incompetent. These are some of the singular effects we can achieve by employee training. The most important of all is the fact that if training sessions are conducted it will raise our value in the eye of our customers who will look upon our company as competent and skilful. Therefore we must begin by engaging a consultant to provide training in production to our employees and find a proper human resource agency for the purpose. Further Swisher, W.L. Says that “Response and flexibility have emerged as the key differentials in the electric motor industry. Customers demand product availability and flexible order policies in order to satisfy their demand requirements. The outdated techniques of schedule based manufacturing are no longer competitive. The proven tools of the mathematically based, Demand Flow(R) Technology (DFT) provide a viable alternative. By employing the DFT methodology, electric motor manufacturers can respond quickly to changing customer demands and can leverage the weapon established in manufacturing to gain market share and optimize margins” 8 Thus in all fronts we need to galvanize and reorient ourselves to remain in business. 7. Conclusion and recommendations The most important thing is to interact with our client thus and be able to convince them following the procedure explored above that we can assemble the product as per the specifications in future. This will show our client that we are serious about our business and help them advise us on their needs. In a proper setting the company will have a cost effective and efficient system in interacting with clients and will have evolved a precise method of evaluation and understanding client demands and thereby come up with the exact type of product that is required by the client. The product design must follow all the considerations and constraints that have to be met in a highly competitive environment. Having a proper product design system will l make our products suited to the market and make us competitive and help us retain our market share. In the long run it will help become cost effective and also provide for research and development. We have to also get an external agency evaluate our performance and make the company six sigma compliant. By being six sigma compliant, our production process will become more efficient and will help us upgrade with the market needs. This itself will prompt employee skill up gradation and monitoring. This we recommend that : 1. We closely interact with our clients and prepare a one-to –one production process for each client which means that we not only keep tabs of the suppliers but painstakingly train our employees for each model. 2. We always keep a constant upgrading and redesign policy for our motors in such a way that we are ready for any new model. 3. We follow the six sigma model of production and quality contriol and revamp the existing model using the available resources which is possible and is a feature of six sigma. 4. We spend and invest in employee training on an annual basis. 5. We consult and retain consultants for the time being in all aspects of the affairs of the company in which we find our expertise is lacking and try to build an in house team for the requirement in future. 6. Most important we always see that a communication facility and instant action provision is set in the company to immediately react to customer complaints. These recommendations are in brief to the recommendations made specifically and in detail in this report. References 1. Paula Blog Posted by Aftermarket Parts July 7, 2006 http://www.partstrain.com/blog/Aftermarket_Parts_and_Accessories/ Referenced 10th Dec 07 2. Terry Winograd, Ph.D. (Stanford) The ActionWorks® Business Interaction Model http://www.actiontech.com/BPM/BIM.cfm Referenced 10th Dec 07 3. Action Tech Company : Statement about the system http://www.actiontech.com/BPM/BIM.cfm 4. Juan Diego Frutos and Denis Borenstein Construction Engineering and Mgmt., Volume 129, Issue 3, pp. 302-313 (May/June 2003) 5. James Morgan, Applying Lean Principles to Product Development . htt 6. James O. Westgard, Ph.D.,Overcoming faulty production and Quality Control (Using Six Sigma) Quality Design and Control Processes 7. http://www.westgard.com/lesson67.htm 8. p://www.sae.org/topics/leanfeb02.htm 9. http://www.allbusiness.com/human-resources/careers-job-training/1151-1.html 10. Swisher, W.L.Electrical Insulation Conference, 1997, and Electrical Manufacturing & Coil Winding Conference. Proceedings Volume , Issue , 22-25 Sep 1997 Page(s):345 – 347 11. Citedfrom http://ieeexplore.ieee.org/Xplore/login.jsp?url=/iel3/5238/14154/00651140.pdf 12. King B. Better Designs in Half the Time: Implementing QFD Quality Function Deployment in America. 3rd ed. Methuan ME:Goal/QPC, 1989. Read More