In: Operations Management
Al-Ain Electronics Company is a large manufacturer of
electronics and home appliances in the UAE. Over the past few
years, Al Ain Electronics has watched overseas competitors take
away market share with products that are priced lower and that at
the same time, have developed a reputation for better reliability.
The company is not in a dangerous position yet, but the Board of
Directors wants to see a concerted effort to improve the company's
competitive posture. Among the senior management, two factions have
developed. One, led by the vice president of operations, is
pressing the CEO to implement total quality management. After all,
the aim of TQM is to improve competitiveness, and that is just what
is needed. On the other hand, the manufacturing vice president and
the director of quality assurance are making the case for ISO
9000:2000.
Answer the following questions based on the above case:
Question-1: In your opinion which approach is more appropriate in
these circumstances? Why?
Question-2 Provide your arguments "for" and "against" the
implementation of each approach.
1. Total Quality Management is certainly much better approach to go with as compared to ISO 9000:2000.
The most important reason being ISO is just a certification and TQM is a holistic process that will improve the quality of product.
However, implementation of TQM does require a but longer time. As mentioned the company is not jn dangerous situation so it can take time and implement the TQM approach.
2.
TQM ->
For - I have already mentioned that proper implementation of TQM will lead to improved quality. Thus the customer that have left will definitely come back.
Against - Time taken to implement this is longer than getting ISO certification.
ISO 9000:2000 ->
For - Customers might get attracted to the certification rather than actually looking for quality product.
Against - It does not ensures quality. It is just an increase in documentation and bureaucracy.
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