Concept explainers
Case summary:
M was originally a small car radio manufacturer in the 1920s. Since then it expanded into integrated circuits, paging systems, cellular phones, computers and wireless communication systems. At heart, M was an engineering company, however in the mid-1970s it shifted its focus from products to consumers. Following a goal of total customer satisfaction M is now known for its cutting-edge
In 1986, it devised the Six Sigma methodology. This method changed the measure of quality in the country. Ever since, Six Sigma has become the widely adopted standard measure of quality. Today Six Sigma has evolved from a measure into a comprehensive quality management system and has been implemented by most large corporations. M has reported over $17 billion in savings due to it.
The core focus of Six Sigma is to improve key processes in a company. This leads to drops in waste and cost, while improving quality, processes and customer satisfaction and loyalty and finally improving profitability.
To determine: What are some of the obstacles for a smaller company to implement a Six Sigma program? Are certain features and components of Six Sigma more applicable than others to a small company?
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OPERATIONS AND SUPPLY CHAIN MANAGEMENT
- Because of the poor quality of its cars, Hyundai watched its U.S. sales drop from 264,000 cars to 90,000 cars in just two years. Hyundai cars ranked 26th out of 35 car brands in terms of initial car quality as measured by the influential J.D. Power Initial Car Quality survey. With $6.6 million in debt, a $1 billion investment for a new manufacturing plant in Alabama, and the company’s first-ever loss, Hyundai’s new chairman, Chung Mong Koo, declared that improving quality was the only way to fix the company.The challenge for Chung was to get his managers to put quality, and not costs, first. So he sent a visible, meaningful message that poor quality would no longer be tolerated. During one plant visit, Chung demanded to see under the hood of a car on the production line. He was furious when he saw loose wires, tangled hoses, bolts painted four different colors - tremendous deviation from what the engine compartment was supposed to look like. On the spot, he instructed the plant…arrow_forwardDescribe the concept of Six Sigma quality. Why is such a high quality level important?arrow_forwardWhat are the main differences between ISO 9000 and the MBNQA? What are the key components of Six Sigma?arrow_forward
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