Question

In: Accounting

In your new role as quality manager of high-tech unit of a large national company, you...

In your new role as quality manager of high-tech unit of a large national company, you identify a problem which is typified by the two internal memos shown below. Discuss in some detail the problems illustrated by this conflict, explaining how you would set about trying to make improvements. (You should discuss at least 2 problems)

From: Marketing Director

To: Managing Director

C.C

Production Manager

Works Manager

Date: 4 August

We have recently carried out a customer survey to examine how well we are doing in the market. With regards to our production range, the reactions were generally good, but the 24v byte micro winkle thrystor is a problem. Without exception everyone we interviewed said that its quality is not good enough. Although it is not yet apparent, we will inevitably lose our market share.

As a matter of urgency, therefore, will you please authorize a complete redesign of this product?

From: Work Manager

To: Production Director

Date: 6 August

This is ridiculous!

I have all the QC records for the past three years on this product. How can there be anything seriously wrong with the quality when we only get 0.1% rejects at final inspection and less than 0.01% returns from customers?

Solutions

Expert Solution

Apparently there are following problems above :

Problem-1 -Disconnect between the Customer/Market feedback and Returns experienced:

As per the Works Manager there are no issues highlighted by the Quality Tests consistently over the years.The rejection rates are as alow as 0.1%.This confidence in quality check is further affirmed by the fact that returns rom Customers of the product too are as low as 0.1%

With above it is a mysterious scenario that sample survey by Marketing gave an absolutely opposite feedback.

Problem-2 - Communication gap between Marketing and Production teams:

This apparently seems to be the other problem.Had the two heads been in regualr exchange this disconnect would not have arised.The fact the Production team is surprised means the exchanges are not regular or else element of surprise would not have been there.

Approach to Solving:

It is a typical situation.Both the heads have their basis and unfortunately the views are totaly opposite.

The correct approach to solve would be first to check the sample of size of Customers covered by marketing.

Secondly which particular parameter of the product was pointed out by Customers as not upto mark.

Once the specific parameter is known then it can be checked whether same is also part of the Quality check performed or not.If not then same needs to be coverered.

There also has to be a check on the definition of "Satandard" asper Prodcution and that eaxpected by Customers.


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