In: Accounting
Quality Assurance in Foundry
Quality Foundry was established in the mid 2000’s in a 300 square
metre building with 10 people as a small family business to produce
castings. In the 2000s as business grew, the company expanded its
facilities and its capability to develop its own tooling patterns
and eventually moved into a 4000 square metre building. Over this
time period from 2000s to 2010s, the foundry industry
declined from more than 1200 companies to about 400.
With such a shrinking market, Quality Foundry began to listen more
to its customers. They discovered that customers were not happy
with the quality of the products supplied by them. In 2000, Quality
Foundry made a commitment to quality by hiring a quality assurance
manager Mr.Jim. Mr. Jim felt that the top management was committed
to quality and saw an opportunity to change the company's culture.
He also firmly believed in Deming's philosophy. The
first thing he did was to work with top management to develop a
mission statement which reads as below: Our mission at Quality
Foundry is to improve the return on investment. We can achieve this
by changing attitudes and incorporating a quality team environment.
This will improve the quality of our products, enhance our
productivity and elevate our service and response level to our
customers.
As we are in a low-growth, mature market arid the standards for
competitive levels of quality and service are becoming more
demanding, we must develop a strategy to improve quality and
responsiveness in all areas of the company in order to improve our
return on investment. We need to have all employees recognize the
importance of product quality and service and move toward
more favorable pricing. We need to change thinking throughout the
organization to get employees involved, to encourage team work, to
develop a more flexible workforce and adaptable organization. We
need to instill pride in the work place and the product.
Under Mr.Jim's direction, Quality Foundry made some substantial
improvements in the quality of castings, particularly reducing
scrap and reject rates. Mr.Jim worked closely with the factory
workers directly responsible for the products, asking them what
they needed to get the job done and ensuring management commitment
to provide the necessary resources. Quality Foundry
invested in new control equipments for furnaces to control
temperatures with digital read out. This helped the workers to
adjust the process as needed. The success of this project led the
company to empower employees to control many other aspects of the
system.
Five years later, the chief executive officer (CEO) of Quality
Foundry retired and the General Manager of a manufacturing company
was appointed as the new CEO. The new CEO felt that the mission
statement did not provide a clear direction. Consequently, he set
up a new task for senior management (including Mr. Jim) to develop
a new strategic vision.
Answer the following Questions with 150-200 words each.
1. Comment on the current mission statement of the company. Does it
provide a strategic direction necessary for success for Quality
Foundry?
2. If you are Quality Assurance Manager, How can the mission statement be improved? Suggest a better statement of mission and vision.
(1) .Mission statement of Quality Foundry is Improve return on investment. Mission of the company can be achieved by changing attitude and incorporating quality team. This will improve quality and enhance productivity, better customer service.
Based on above Quality foundry is focusing on better customer service by listening to them, developing strategy to improve, improve return on investment, friendly work environment within industry, encourage team work.
Quality foundry wanted to achieve their mission by working with top management. Following are the important elements of their mission.
1.Customer satisfaction- Listening to customers and provide solution, better service to them. Growth of the entity mostly depend on Happy customers.
2. Quality- Factor responsible for improved Return on investment is quality. Quality of product makes the people happy. Quality reduce the defects and rejections.
3. Co operation-. Friendly work environment is important for the health of industry. Workers Co operation with each other and building team work has beneficial for the growth.
Company also believe in Demings 14 points
1.Improve productivity and service,
2.Adopt new philosophy
3.Cease independenc on inspection for quality
4. Minimize total cost
5.Provide training on job
6. Drive out of fear
7. Focus on planning
8.Remove barriers between staff
9. Remove barrier between peoples
10.Eliminate slogans , targets for workers
11. Everybody's contribution is important
12.Eliminate quotas to workers and goal to management
13. Self improvement to everyone.
14. Adapt leadership.
Based on above mentioned, it provides strategic direction to succeed of Quality Foundry.
(2) Companies Mission statement can be improved by way of
Keeping short and concise
It should not be essay
It focus on long term
It should not be too limiting
It should be based on what your employees think.
Customer feedback should be considered
To making changes, don't be afraid.
Following is the better statement of mission and Vision
Mission statement defines companies business and objectives. Where as Vision is the goals desired future of the company.
*Vision statement
Create better economic opportunity and development to the company
Create employment opportunities
Making innovation to fulfill everything
*Mission statement
1.Build the best product for the company
2.Improve communication and connecting with people within and outside industry
3.Working hard for improvement in quality day by day
4.Deliver best service to customers
5.To create and promot better work environment.
6.Planning should be undertaken to better productivity of the company
7.Providing Training to employees.