elaborate at least five key features of the existing pattern of behavior and thoughts of the entire company that would hinder the Wengart Aircraft from successfully implementing Quality Management. Please also elaborate three most important roots (assumptions) of this pattern of behavior. B) Please also identify the driving forces and restraining forces toward acceptance of the TQM programme at the top management level. 2) Please use a “fish bone diagram” (or Cause and Effect Diagram) to illustrate why the implementation of the TQM programme at this firm has been a failure up till now. 3) Please recommend at least 5 steps the leadership should take in order to help “unfreeze” the existing pattern of behavior and thoughts, before it can implement any quality management programme. 4) Please provide 3 reasons for and 3 reasons against the implementation of ISO9001 in Wengart Aircraft. 5) After President Ralph Larsen had realized the unfortunate situation as described in the case, he invited you to be a consultant to Wengart’s top management. Please kindly outline a list of 5 feasible steps, in descending order of a 5 importance, that should be undertaken by Wengart Aircraft for it to succeed in the TQM programme. Case 13.1 Wengart Aircraft President Ralph Larsen of Wengart Aircraft has become in- creasingly concerned about profits. Though he is not fear- ful of a company takeover, he does feel an obligation to maximize shareholders’ return on their investment. He and about a dozen top executives receive sizable stock bonuses, so it is to their advantage to obtain a high share price. Wengart manufactures commercial and military, air- craft. It is number two in its industry, which is composed of nine companies. Its profits, however, are ranked seventh. It disturbing to Larsen and his top mangement team that they are not able to maximize profits. QUALITY PROBLEMS Quality has been identified by the top management team as one of the major problems at Wengart Aircraft have to be reworked even after they are sent to the customer The federal government, one of Wengart’s largest cus- tomers, shares the concern for quality to the extent that several letters have been sent to Larsen from the Secre- tary of Defense warning him that unless quality is im- proved by 20 percent within 6 months, the government will exercise its contract provision to withhold partial payment as a penalty. This will place even more pressure on profits. Nongovernmental customers have also ex- pressed serious concerns about quality. There have been major stories in The Wall Street Journal and Business Week about Wengart’s quality problems and its deteriorating fi- nancial condition The Department of Defense, in its latest letter to Larsen, said it would look favorably upon Wengart implementing a “total quality management (TQM) program similar to pro- grams at other aircraft, automobile, and electronic firms. By Presidential Executive Order 12552 applying TQM to all federal executive agencies, the Department of Defense is encouraging all defense contractors to adopt TQM.” . Quality is giving customers what they have a right to expect • Substantial increases in education and training are required. Teamwork is a basic building block of TQM. . As the CEO, Larsen and his top mangement team must be committed to TQM and communicate its importance by word and deed at every opportunity. • TQM will have to become part of Wengart’s culture. The CEO must believe in work principles that include im- proved leadership, working conditions, and job security. Larsen thanked the consultant and said he would take it from here. To Larsen, TQM was a matter of common sense. It was what they were doing or should be doing. Larsen decided that they had no other choice but to im- plement TQM. He called a meeting of his vice presidents (see Exhibit 13.1) and explained TQM. Mr. Larsen placed Kent Kelly, vice president of production, in charge of the program. However, Maria Lopez, vice president of human resources, tried to convince him that TQM should be a joint project between human resources and production with the president’s office coordinating the program. Larsen ex- plained to them that he didn’t have time to get involved with TQM personally as he wanted to spend his time and energies improving profits. Mary Romero, a supervisor of the wire harness assem- bly team for the F-24 aircraft, is responsible for 11 people on the swing shift. Her people put together the thousands of color-coded electrical wires that make up a “harness.” An- other production team places the harness in place in the air- craft by running the harness from the aircraft’s central computer to the other sections of the aircraft. The F-24 is a new and highly advanced fighter aircraft for the U.S. Air Force using the latest in electronic and computer controls in combination with a stealth design. Romero’s team, like every team on the F-24, is critical to the plane’s ability to fly. Two months ago, all managers and supervisors within the Pico Durango plant including Romero attended a meet- ing called by the plant supervisor, Allan Yoshida, where he explained TOM. Supervisors came away from the meeting with various interpretations of TQM, thus line workers tended to get different ideas about TQM. Within a day after the meeting, all workers in the plant received a brief memo from Yoshida in which he outlined TOM, said that super- visors had details, and that everyone was to support the program. Romero was very enthusiastic about TOM. She was taking a management course through a local university, TOTAL QUALITY MANAGEMENT AND THE CONSULTANT Larsen, in an effort to learn more about TOM, hired a man- agement consultant to explain TQM. The consultant made several points at a 2-hour meeting with Larsen: . Customer, engineering, production, and product sup- port functions are integrated into a team. • The customer is the next person in line. The customer can, therefore, be the next person on the production line for someone within the company or it can be the pur- chaser of Wengart’s planes. Everyone in the company is both a customer and a producer. 390 Part V Changing for Success Ralph Larsen President Maria Lopez VP Human Resources Kent Kelly VP Production Other Vice Presidents Allan Yoshida Pico Durango Plant Manager Other Plant Managers Division Head Other Division Heads Department Head Other Department Heads Mary Romero Supervisor Other Supervisors George Karas Shannon Potowski Other Line Workers Exhibit 13.1 Wengart Aircraft organization chart and her class had recently spent several class meetings learning about TQM. She was, however, confused at the brevity of the TQM information she and the other super- visors got from Yoshida. Two of Romero’s veteran workers, George Karas and Shannon Potowski, said it sounded just like the other man- agement programs where the union workers did all the work and management, especially top management, got the credit-and the bucks. Both of the workers made some rough calculations and figured that, under the old system, at least 20 percent of their time was spent reworking a de- fective harness after it had been installed in a plane, wait- ing on products coming from the previous production team, or waiting on delayed inventory items. The waiting time, which was also common with other teams, was a good opportunity to go to the company store, take a little longer coffee break, or visit with friends on other produc- tion teams. After comparing notes with other workers around the plant, plant workers generally concluded that Allan Yoshida was trying to speed up production so that the midnight shift could be cut. This morning, Romero and several other supervisors went around their department and divison heads to see Yoshida. They explained the rumors they had heard from workers about a worker plan to get the job done right the first time, but to make sure it took so long that no one would be laid off. Yoshida, unsure about what to do, referred to the seven-page memo Kent Kelly had sent him on how to im- plement TQM. Yoshida’s knowledge about TQM was lim- ited to the memo he had received from Kelly. The situation the supervisors were explaining was valid, said Yoshida. Unfortunately, Kelly’s memo did not address the problem. After looking at the way Kelly had set up the plant goals, Yoshida decided that quality was what mattered most. Yoshida quickly reasoned his next promotion was dependent on meeting his quality goals—not improving productivity. Getting the workers mad at you could be a sure-fire way to lose both quality and production. He told the supervisors at the meeting to pass the word that lay- offs were not the purpose of TQM and just make sure quality was top-notch. After the meeting, Yoshida wondered if he should call Kelly and see if there was any more to TQM he should know about. But then he decided after several minutes that if the program was very important, he surely would have heard something more. Best not to make waves.


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