Weaknesses and the Best Measures of Corrections of Grayson Manufacturing - Case Study Example

Running Head: Grayson Manufacturing Table of Contents Executive Summary------------------------------------------------------------------------------4 1. Introduction ..............................................................................................................5 2. Objectives..................................................................................................................5 3. Immediate Problems Identified-------------------------------------------------------------6 3.1. Hard problems in Grayson----------------------------------------------------------6 3.1.1. Poor Operator productivity ----------------------------------------------6 3.1.2. Outdated and faulty machines-------------------------------------------6 3.1.3. Frequent customer complaints------------------------------------------6 3.1.4. High scrap rate------------------------------------------------------------7 3.1.5. High Work In progress---------------------------------------------------7 3.1.6. Financial problems-------------------------------------------------------8 3.2. Soft Problems ------------------------------------------------------------------------8 3.2.1. Lack of team work -------------------------------------------------------8 3.2.2. Quality associated problems---------------------------------------------8 3.2.3. Lack of customer awareness---------------------------------------------8 3.2.4. Organization structure----------------------------------------------------9 3.2.5. Incentivisation ------------------------------------------------------------9 3.2.6. No quality culture---------------------------------------------------------9 3.2.7. Lack of TQM skills ------------------------------------------------------9 3.2.8. Lack of training and planning-------------------------------------------10 3.2.9. Quality Vs Quantity -----------------------------------------------------10 3.3.0. No feedback ---------------------------------------------------------------10 3.3.1. Lack of ownership -------------------------------------------------------11 3.3.2. Too much inspection ----------------------------------------------------11 4. Solutions to the problems-------------------------------------------------------------------12 4.1. TQM Model--------------------------------------------------------------------------12 4.2. Organization Culture----------------------------------------------------------------14 4.3. Organization structure--------------------------------------------------------------16 4.4. Organization System----------------------------------------------------------------16 5. Conclusions and Recommendations ------------------------------------------------------17 6. References -----------------------------------------------------------------------------------18 Executive Summary Grayson is a small company based in the UK and producing a variety of products. Throughout its operations it faces a lot of challenges to ensure maximum profit. Management of the company is concerned about the functionalities of the company which is on the verge of collapsing. This paper points out its weaknesses and the best measures of corrections. The paper outlines profoundly on the best practices which will revive the company from its predicament. Some of the issues addressed are international aspects which affects other companies. The international Organization for standardization (ISO) series program provides mechanisms for data documentation and audits which is a procedure of a quality management system. Although the ISO series is not essentially designated for emissions data development a better part of its principles is applied to ensure production of a quality inventory. This paper outlines such principles which would ensure qualitative production of Grayson’s products. Products production in the company requires proliferation of the system so that they can be useful assets to the company. This report points some of the areas which need urgent attention to aid management ensure efficient operations (Rose 2005). It’s the global trends which will spur directional growth of any company. Changing consumer demands, public relations and safety or quality of products are some of the issues which have led Grayson to stay redundant in its production cycles. It is imperative that any other company adopt change to survive in the current global market. This paper addresses some of the difficulties Grayson is experiencing due to management complacency to adopt new production techniques. Essentially it produces clear cut techniques which will ensure that the company remains competitive in the market (Loch 2003). 1. Introduction Grayson is a medium sized company which engages in production, its head office is based in the UK. With the current changing market Grayson is finding it hard to keep abreast of the ever eluding market demand. Its management is standing uncoordinated which has seen the company face huge challenges which would otherwise be easily solved. This paper outlines some other major setbacks the company is facing and the related solutions which will help spur growth. According to this paper, it takes more than the size of the company to ensure customer satisfaction. The paper illustrates some of the customer approach techniques which will help Grayson ensure market stability. At the end of the paper is a list of recommendations which if applied can help the company grow. 2. Objectives To observe Grayson’s shortcomings in its operations To analyse the market attributes of Grayson To illustrate policies to be adopted by Grayson to attain efficient operations To analyse the Grayson’s customer base To identify managerial pitfalls in the company To assess open opportunities in which Grayson would effectively venture To communicate proper ideas to relevant stakeholders on ways of market growth To evaluate managerial roles To formulate better production framework devoid of wastages To illustrate power sharing and responsibilities in the company To assert better policies of customer relations 3. Immediate Problems Identified The problems identified at Grayson can be categorized into; soft qualitative and hard quantitative problems. It is typical shortcomings which have led to Grayson’s malfunctioning in the market. The hard shortcomings include; poor methods of operations in production, outdated machines in the production line, machines developing faults hence inefficiency, frequent customer complaints, high scrap rate, high work in progress and financial constraints which can be attributed in the way management clasps the operations (Foster 2003). The soft problems can be illustrated by; organizational structure, lack of employee coordination, quality inspection failure, unwillingness to focus on the customers, bonus problems, quality assurance not incorporated in the organization, undifferentiating between quality and quantity, lack of total quality management, feedback unconsciousness, too much inspection, poor training and planning (Flamholtz& Randle 2011). 3.1. Hard problems in Grayson 3.1.1. Poor operator productivity Grayson operation team does not take into consideration the efficiency and effectiveness of its production level. They barely adopt modern techniques to gauge their production level. This eventually leads to substandard products. 3.1.2. Outdated and faulty machines The fact that Grayson cannot produce special line products means that its machines are typically the old-fashioned generation which cannot accommodate the new line of products. To a high extend this hampers its production criteria. Also faulty machines hamper efficiency in the production line this leads to high costs being carried by the products as the case of Grayson. 3.1.3. Frequent customer complaints Grayson has expected an emerging upsurge of customer complaints. The customers are frequently complaining of poor product quality and poor services offered by Grayson. For instance when Grayson is working on a special case of products for specific customers, there results in poor quality production of that specific product. The main reason attributed to this is its conservative means of engaging in old methods of production. 3.1.4. High scrap rate Grayson has a high capacity of irreparable machines throughout its production lines. This high rate of discrepancies in its machines makes the company to be curtailed in production. Grayson has not made any attempt to purchase new machines for production. At this trend the company is on the verge of collapsing. 3.1.5. High work in progress Grayson faces a challenge in production because of the physical constraints which exists in its value chains. The decision on what the company should input into the system and the expected output which should be maximized. This illustration depicts the work in progress (Cameron & Quinn, 2006). Some of the work in progress examples which are constrained in Grayson include: high inventory in the warehouse, high inventory in the retail shops and high work in progress in production which has immensely hampered efficiency in customer satisfaction approach. 3.1.6. Financial problems Management in Grayson is shared by a company which is barely making any profit. It is faced with a stunt financial crisis from the manner in which it operates. Some of the signals which point to financial pressure in Grayson include; spending limited money on necessities like machineries, incurring huge debts from creditors and late payments to clients and other financial sources (Woodside 2010). 3.2. Soft Problems 3.2.1. Lack of Team work Grayson lacks coordination among its department; there is no efficient communication between the departments. For example, the finance department does not take an initiative early enough to warn of the impending costs. Also on the other hand customer service department does not effectively communicate to the production department of customer complaints on product quality (Hierling, Yeh, Tai & Yu 2008). 3.2.2. Quality associated problems The quality assurance department in Grayson seems to be ineffective. Based on its role it should adopt a mechanism which leads to customer satisfaction but it is barely true in this case study. Products do not attain the customers’ demands which lead to rejections from the customers. A lot of products of this company are being returned over time due to their poor quality designs. 3.2.3. Lack of customer awareness Grayson has not done enough to promote its products. Ensuring customer awareness is one important aspect of an organization which wants to create sales revenue. In the case study it is predominant that Grayson’s sales and marketing departments have not partnered with the production department to educate and inform the customers about the wide categories of products available. Also management has not entrusted a particular group in the company to go out and do a field analysis which can aid customer awareness (Peelen 2010). 3.2.4. Organizational structures Grayson exhibits Pre-bureaucratic structures; this means that it has only one decision maker in its operation. Decision making in this scenario becomes a problem because of the protocols which have to be observed. For example, when the marketing manager wants to change the marketing strategies it becomes hard to do that (Inceoglu, 2010). 3.2.5. Incentivisation Grayson has not developed a good framework on which it can bring about both employee morale and stakeholders who may want to be part of the company. For instance in the case study it is depicted that employees are not motivated enough to undertake their roles. 3.2.6. No quality culture The company has not drafted a rule or policy which may guide its product production. It is not in the culture of this organization to ensure that products produced appeal in the eyes of the consumers. This attribute has immensely cost the company to loss sales which could have been achieved if it ensured or adapted a quality culture. Quality will have to change over time to attain the present market standards, but Grayson remains in its old methods of productions which restricts development. For example, when management is told to produce special products it remains reluctant (Brink & Berndt 2004). 3.2.7. Lack of TQM Skills Total quality management is an approach which management should adopt to cut on costs. It ensures efficiency and effectiveness in the company, Grayson does not utilize this technique in its production endeavours instead they let the company experience shortages, wastage and high costs which leads to high prices for the products. Some of the mistakes adopted by Grayson to impact on TQM include; separation of TQM from the activities of the company, not following up policies and regulations, lack of training of individuals to match the policies and a gap between management and performance which is all over the face of Grayson (Kumar& Reinartz 2011). 3.2.8. Lack of training and planning Management has not taken an initiative to train its workforce on production, customer service and marketing techniques which are very crucial for the company. Grayson is characterized with a group of uncoordinated workforce which cannot differentiate between quality and quantity of products. Management on the other hand has failed to plan effectively; it has only stuck to the outdated plans which are no longer beneficial. 3.2.9. Quality vs. Quantity A distinction should often times be established between quality and quantity. Return on investment to a large extent relies on quality of the products. High quality products will definitely fetch higher prices which mean that more revenue will be collected. On the other hand quantity may lead to an increase in market size in the short run, but in the long run customers will opt to go for quality of products. Grayson Company is competing on a quantity mechanism which is a short run approach. According to various researchers in marketing it is a very wrong mechanism in marketing and organizational growth. 3.3.1. No feedback Communication is a process which includes input and output which comes in the form of feedback. A feedback loop depicts the communication which should thrive between the company and the customers in the market.On great occasions Grayson Company has not followed the right channels of the communication process. Customer complaints are not essentially taken as feedback by management. For example, Tom Williamson does not take consideration of the fact that India and china produces quality goods which are far better than Grayson’s products (Espejo & Reyes 2011). 3.3.2. Lack of ownership The impact of lack of leadership is depicted in Grayson when the factory manager and the chief inspector are summoned by Tom Williams the chief executive officer of the company concerning the failure and defects experienced on some machines. Each of these leaders tries to avert the blame from him; none of them is ready to face the reality and absorb the blame. It is a very bad adventure as each of the members will on various occasions make a mistake and either blames the juniors or on other related senior staff members. A real leader will take the mistakes of their juniors and try to avert the same from happening on the next occasion. Grayson will only thrive if management takes responsibility of anything which may happen between the walls of the company (Sukhija 2009). 3.3.3. Too much inspection Close monitoring of employees may not be healthy for the organization, staff should at times be given mandate to make decisions which may lie between the boundaries of the policies of the work they are doing. Grayson is not giving its employees a chance to depict their strengths in the field they are employed to work in; employees in this company are infringed from making their decisions even in tight cases. For example the marketing manager goes around asking for permission from the general manager on product sales. 4. Solutions to these problems The Above fishbone diagram is an analytic approach of the problems which has engulfed Grayson. It depicts a number of workable solutions which can be adopted by all the departments in the company. It is a departmental decision enhancer; each employee is advised to come up with ideas which can favour the growth of the company. As depicted by the diagram above each of the attributes is discussed below in details. 4.1. Emphasis on the TQM Model (Applying the TQM model) Adoption of a TQM model means that all stakeholders will be taken care of; it also ensures that culture and organizational framework is changed to a better approach which will ensure productivity. Total management model integrates a system of principles or methods which provide a framework for organizations to achieve excellence in all their undertaking. Process management is used to gain a breakthrough in the market and increase on sales which are very important. Many organizations use process management to attain a stable environment which is capable of meeting customer demands. Grayson keen application of the model will ensure that there are no wastages experienced in its production line; product quality will be ensured hence customer satisfaction (Keyton 2011). Total participation attribute in the model ensure that the workers in the company work coherently. Coherence begins from the top leadership who take personal responsibilities for the implementation of policies and achieving organizational goals. The model illustrates that understanding customer needs is the key to organization’s performance in the market. Customers should be continuously satisfied with the products that the company produces. It is the customers, who will determine the direction of growth of the company; if they receive what they desire from the company, higher revenues will be recorded by the company and if their demands are not achieved then the company will never make enough sales (Espejo & Reyes 2011). A TQM model has a mechanism of collecting and analyzing the information in the market which will aid the company to adopt mechanisms which will fulfil consumer demands. Each customer’s information is never to be taken for granted, as it is what dictates the functionality and productivity of the company. Developing an approach which understands customer behaviours will facilitate organizations to make future predictions easily hence preparing adequately on the same. Through a TQM model competitor’s customers can also be assessed. It is through this knowledge of the customers from both directions; competitors and personal customers, which the company will be able to integrate this knowledge to plan and come up with procedures which will manage the activities of the company. A company will achieve its goals if it is capable of handling its customers in the market as a whole (Espejo & Reyes 2011). 4.2. Organizational culture Organizational success is immensely attributed to the kind of management in the company. If management is entirely committed to ensure success then the company will record a significant increase in the rate of its financial outcomes and societal impacts. Grayson’s management ought to take the mantle and steer the company in the right direction. All the employees in the company need to play a role in coming up with ideas on improving the performance of the company (Martin 2004). Management should consistently take the initiative to check on performance of each department in the company. Some of the best approaches management should adopt to depict their participation include; ensuring a safe and competitive environment of work, encouraging opportunities for improvement, valuing staff contribution and subsequently involving them in decision making, provision of effective tools of production among other undertakings. Awareness campaigns should continuously be inculcated as a critical purpose in the organization. Grayson should come up with awareness campaigns which will spur the growth of the company in the right direction. Clear cut goals should be established in the campaigns. For example, the company is giving out to the physically handicapped in the society; this will be a mirror which will enhance the company’s image in the society. Also it should target a given audience this is further culminated by a follow up of the campaigns to assess what worked and what did not so as to make adjustments on the weak areas (Mullins 2013). Grayson should adopt a corporate plan in its daily activities. This will be a systematic approach to analyzing and assessing the corporate objectives, decision making strategies and ensuring progress towards attaining of organization objectives. Essentially a corporate plan is illustrated as a set of instructions which guide managers of the organization in outlining the roles of each department as expected to attain organization’s goals. Grayson in its quest to achieve its goals has to inculcate a culture of corporate planning (Mullins 2013). Grayson should opt to apply a built in quality; this is a strategy which reduces the need of inspection on goods hence ensuring prompt solutions on problems at hand. It is a less costly measure which keeps both the customers and management contented. This process is inculcated in the company through training and skills updates on coming up with quality products or improving the existing products to suit customer demand (Barry 2000). No matter the size of the organization it should adopt a good framework of induction of its labour. It is through this process that the employees will be able to acclimatize to their jobs as well as the working environment. New employees will be able to learn about what is expected of them from the induction which is carried out in the organization. Grayson adoption of this will reduce clash of work between each employee leading to efficiency (Knights & Willmott 2007). 4.3. Organization Structure Grayson’s organization structure is a tall type of organization which is essentially ineffective. Trying to consolidate all the departments using the structure is very difficult because the communication channels are hampered by the length of communication time. For easier communication to exist in the company, Grayson should adopt a lean or flat organization structure. With a flat structure management will be able to dedicate decision making to various departments which will lead to high production (Hoxie 2010). Customer satisfaction is likely to be met if a customer can easily channel their complaints which are in turn dealt with in the shortest time possible. It is the problems in protocols which deter most customers from coming back to complain about the quality of services. In addition to this, in a flat organizational structure quality reporting is higher as compared to a tall structure which is encompassed by a number of hierarchies (Martin 2004). 4.4. Systems Grayson Company has to constantly introduce small incremental advances in its operations, this will go a long way to achieve efficiency and improve quality in its production cycle. Continuous improvement is an aspect which Grayson needs to adopt to achieve maximum profit at the lowest costs. This approach tends to give power to employees to determine the best and ideal nature of improvement which can be important to an organization. By encouraging this approach Grayson will be able to have a culture which is capable of encouraging and rewarding employees for their undertakings in the company (Baskerville, De Marco & Spagnoletti 2013). Kaizen can be operative under Kaizen groups or on the basis of quality groups; these are basically groups which work together to pinpoint areas of improvements in the organizations. Continuous approach is very compatible with team work since improvements are a basis of team working. It is also imperative that within this process Grayson will be able to improve its communication process among its workers and stakeholders. It is these very groups which are the basis of organization’s functions (Ashkanasy, Wilderom& Peterso 5. Conclusion and Recommendations It is important to note that for Grayson to succeed in the market it has to adopt a lean management approach which will aid it to formulate decisions which will improve its performance. It is paramount for the company to concentrate on efficiency and effectiveness in its production schedule. As depicted in the TQM model customer focus is a very important area of company concentration; customers should be the kings who dictate what the company produces. Further the fishbone diagram is an illustration of what is to be addressed by management of the company. Scenarios which call for management or supervisory attention should be quickly and timely addressed. For example, when customers air their grievances, customer relations department should be there in time to address the problem; it will be a better approach of curtailing any negative impacts which may be inflicted. Finally, decision making should be geared towards innovations and inventions. The company should be flexible enough to accommodate and emerging trends in the market. Conservatives is a virtue which should be discarded to allow new products development. References Ashkanasy, N. M., Wilderom, C. P. M., & Peterson, M. F. 2011. The handbook of organizational culture and climate. Thousand Oaks, SAGE Publications. Baskerville, R., De Marco, M., & Spagnoletti, P. 2013. Designing organizational systems: an interdisciplinary discourse. Berlin, Springer. Barry, J. 2000. Organization and management: a critical text. London, Business Press / Thomson learning. Brink, A., & Berndt, A. 2004. Customer relationship management & customer service. Landsdowne, South Africa, Juta. Cameron, K. 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Management and organizational behavior. London, Business Press Peelen, E. 2011. Customer relationship management. New Delhi, Pearson Education. Rose, K. 2005. Project quality management why, what and how. Boca Raton, Fla, J. Ross Pub. http://www.books24x7.com/marc.asp?bookid=18353. Sukhija, R. 2009. Quality management: an excellent model. New Delhi, Global India Publications. Woodside, A. G. 2010. Organizational culture, business-to-business relationships, and interfirm. Bingley, Emerald. http://lib.myilibrary.com?id=275298. Read More