Case Study: "Solution" Eurasia International: Total Quality Management in the Shipping Industry
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CASE STUDY: “SOLUTION”
TOTAL QUALITY MANAGEMENT IN THE
This Case gives an account of how a ship management company was able to set itself apart from competitors and from its clients’ own in-house technical and crew-management capabilities by embracing a culture of continuous improvement and by implementing Total Quality Management systems. The shipping industry was not alone in having regulation imposed upon it, but its distinctly international nature made ship managers, as cost-cutting practitioners, particularly open to criticism. A ship management company’s very existence hinged upon its ability to convince ship-owners that it would preserve their valuable assets and maximize…show more content… Since it was inclined to remain a boutique, Eurasia was cautious about pursuing growth but was still willing to take risks in its company philosophy and business model. As a member of the Schulte Group of companies, it was able to offer the advantages of economies of scale, yet was also able to customize its service delivery to suit different customers’ needs. By contrast, many of its larger competitors had gone through mergers and acquisitions to remain economically viable, and thus risked losing their personal touch with the customer. To offer even closer proximity to its clients, Eurasia embarked on a five-year plan to expand its operations, and established a network of regional offices that could operate in the same region and time zone as the customer.
3. What is Total Quality Management (TQM), and why was it an appropriate organizational change mechanism for Eurasia?
The term TQM was widely used to describe a focus on the pursuit of quality within an organization. Early discussions of TQM hinged around the Deming Management Method and statistical process control techniques, particularly in connection with manufacturing environments. The works of later TQM experts such as Philip Crosby have been less statistically and technically oriented and more people-oriented. Regardless, TQM is built on core mandates to continually