Introduction
- Global competition require companies to adopt better competitive strategies.
- Emerging companies from emerging economies such and China, India and Four small tigers countries is a major challenge to US companies.
- Quality is a major competitive factor in global market.
- Hawthorne Corporation is one of the pioneer companies in petrochemical Industry.
- Quality and distribution challenge need to be addressed for Hawthorne to remain competitive.
Although globalization has brought more opportunities for business, it has come with its challenges. One of the major challenges is increased competition. Any company in the world has fairly equal opportunity in the global market. Emerging companies from emerging economies such and China, India and Four small tigers countries is a major challenge to US companies. Increased competition implies that companies in the US should do everything possible to remain competitive in the increasingly competitive global market. One of the areas of importance to manufacturing companies is quality. Without ensuring that commodities produced meet the required quality, manufacturing companies in the US cannot be able to compete effectively and may end up loosing market to emerging aggressive companies.
Hawthorne Corporation is one of the pioneer companies in petrochemical Industry. The company has a firm foundation in this industry and has established itself as a leader in technology in many of areas of the market. Despite of these successes, Hawthorne has address some of its current challenges to be able to remain competitive. One of Hawthorne’s competitiveness strategies is to provide its variety of products from a single location. By addressing current Quality and distribution challenges, Hawthorne can be able to solidify and increase its current 10 billion annual sales.
Overview of Problem
- Although quality and distribution problem is experienced in the whole company in general, some facilities have unique problems;
- Need for new distribution facility in the Midwest;
- Quality issues in the facility near Toledo;
- Customer service issues;
- inventory and material handling.
Identifying a problem is the first step towards coming up with solution. Although quality and distribution problem is experienced in the whole company in general, some facilities have unique problems. The company need to establish a new distribution facility in the Midwest in order to overcome distribution issues in that region. Apart from distribution, the company faces quality related issue. Quality issue is a major challenge in the facility near Toledo, especially with requirement of Iso 9000. Customer service is an important pillar in an organization’s competitive advantage. Customer service issues in the company but most especially at distribution facility near Denver is a major setback. In addition, the company experience challenges in inventory and material handling especially at production facility near Huntsville.
The above mentioned problems have various effects on Hawthorne. The distribution problem is a major setback to sales. Some manufactured goods are not able to reach the market in good times. The problem also hinders the company from exploiting the available market as well as venture in to other markets. Quality is an important factor that is considered by customers when making decision to by a product. Thus, the quality problem has negative long-term effect on the company.
Excellence through Quality
- Quality is an important factor that is considered by customers when making decision to by a product.
- Quality problem has negative long-term effect on Hawthorn corporation.
- Excellence through Quality is a model where an organization try to achieve it goals by quality.
- The bottom line to success through excellence is an organization to be keen is establishing new direction and come up with plans for improvement.
- Excellence through quality calls for not only changing people but changing the systems.
Having superior products is not a guarantee to success; poor customer service has severe effect on sales. Customer service influence on the way customers perceive a company and its product thus influencing their buying decisions. Inventory system has great influence on a company’s ability to meet with demands for goods. Problems in supply of raw material and dispatch of finished products is a barrier to competitiveness.
Every organization want to succeed in its area of specialization. Excellence through Quality is a model where an organization try to achieve it goals by quality. Basically, an organization achieve excellence through quality by applying new knowledge. The baseline to success through excellence an organization to be keen is establishing new direction and come up with plans for improvement. Organizations also need to gain knowledge from current and prospective customers in order to recognize their needs and expectations. Improving quality is a far-reaching task. It does not involve only changing people but changing the systems. It is only by improving systems that that long-term improvement on quality. Changing ineffective people does not have major effect of quality. As long as the systems remain the same, quality level can go back to its initial level.
Strategies for Achieving Excellence through Quality
- Establish culture of Quality.
- Adopt Total Quality Management (TQM) Model.
- Offer Training to customer service representatives.
- Improve delivery system.
- Involve all state-holder.
Improve delivery System
- Shortage of raw materials is one of the major challenges at Hawthorn;
- This lead to negative effect on productivity and competitiveness of the company;
- Hawthorn should be able to obtain raw materials whenever it requires it;
- grand raw materials requirement can be calculated;
- this would ensure that required raw materials for finished products are available.
One of the major challenges is shortage of raw materials as well as well as product. This has negative effect of productivity and competitiveness of the company. To be successful, Hawthorn should be able to obtain raw materials whenever it requires it. The supplies should be timely and in the right quantity. Since finished products cannot be produced without the raw material, the problem of delivery seems to be closely linked to scheduling. Usage of raw material should be well studied to ensure that the problem of scheduling is addressed. Taking this advice, grand raw materials requirement can be calculated. This would ensure that required raw materials for finished products are available. Appropriate scheduling criteria would help to shorten production process. This would lead to better utilization of resources and reduction in wastage. By matching scheduling criteria on known lead times and orders for all materials required can help in doing away with the problem. The implication of a better delivery system is that all required materials will be available when they are required in the production process . Having specific and limited suppliers is an important criterion for better scheduling. In addition, better relationship with suppliers would help to overcome most of the scheduling challenges.
Quality culture
- Excellence through quality requires a cultural change in an organization.
- leaders have a higher responsibility to establishing the culture.
- Leaders should establish environment to support excellence through excellence.
- reinforce principles that are geared towards quality.
- Focus on value adding principles:
- Teamwork and cooperation;
- Focus on good working environment;
- alue towards employees and customers.
Excellence through quality requires a cultural change in an organization. Although it require contribution from all individuals in an organization to achieve quality, leaders have a higher responsibility. The leaders have to create an environment that support change toward quality. Instead of delegating quality, leaders implementing quality through excellence establish environment that support this principle. This implies that management that is focused on excellence should have a different approach towards management. They should be able to reinforce principles that are geared towards quality. As a positive approach, cultivating a culture of quality should involve all individuals in management positions but must of all those with senior management positions.
Management in organizations that are focused quality is different from that in other organizations. Organizations that intend to achieve excellence through quality have to give importance on value adding principles. Value adding principles include such principles as teamwork, cooperation, focus of good working environment, and value towards employees and customers. Culture for quality implies that all individuals in an organization think differently towards quality. By having a culture for quality, an organization is guaranteed long-term high quality.
Total Quality Management
- Hawthorne Corporation need to adopt Total Quality Management (TQM) model to achieve quality through excellence.
- objective of this strategy is to reduce anomalies that can happen in service provision or manufacturing.
- strategy hopes to bring about higher customer satisfaction by providing them with high quality products.
- Strategy should aim at streamlining supply chain, incorporating modern equipments and providing high training to workers.
- Set high standard such a maximum of one error in a million of produced goods.
To achieve quality through excellence, Hawthorne Corporation should adopt Total Quality Management model. Quality is an important factor in manufacturing. Many manufactures try to improve quality by performing various things. Total Quality Management (TQM) is one of the strategies that aim at improving quality (Greasley 74). The objective of this strategy is to reduce anomalies that can happen in service provision or manufacturing. As a consequence, the strategy hopes to bring about higher customer satisfaction by providing them with high quality products. Some of the strategies of the approach include streamlining supply chain, incorporating modern equipments and providing high training to workers. The approach set high standards for quality such as allowance of one error in a million of manufactured products. By incorporating total quality management principles, the organization will be able to ensure high quality in all its sectors. TQM principles ensure that no sector is left behind in quality but all departments move toward excellence through quality.
Training of Customer Service representatives
- Customers today are kings.
- An organization should ensure that is customers are well served in order to remain competitive.
- customer complains at Hawthorn is a reason to worry.
- Training is an important intervention the Quality issues.
- Workers in organization are in constant contact with production and customers.
- Customer service representatives have special role of being intermediaries between the company and its customers.
- Ensure proper scheduling.
Unlike in the past, customers today are kings. Everything in organization is done with customers in mind. An organization should ensure that is customers are well served in order to remain competitive. Considering the importance of customers in success of an organization, high customer complains at Hawthorn is a reason to worry. Without immediate intervention, this stake to get out of hand leading to high loses. Total quality management approach a lot of emphasis on customers. TQM philosophy aims at tying customer need with profit. By implementing these principles, an organization is expected to take close focus on customers in its move toward profitability. Training is essential in achieving high customer service. Workers in organization are in constant contact with production and customers. This implies that workers are in a better position to identify any customers’ needs and respond appropriately to the needs. Customer service representatives have special role of being intermediaries between an organization and its customers.
Deming, Juran and Crosby Principles
- Dr Deming has great contributions to quality management.
- Propose that individuals involved in quality should have consistency in strive toward quality.
- Borrowing from Deming, need for quality culture was identified.
- Quality culture can constitute on-job training, good leadership and establish better working environment.
- Juran emphasized on need for commitment on quality.
- Top management is expected to lead by example by showing commitment to quality.
- Training can help achieve ‘NO Defect’ as proposed by Crosby.
Dr Deming has great contribution to quality management. His fourteen quality management criteria forms a foundation for excellence through quality. Deming propose that individuals involved in quality should have consistency in strive toward quality. He advices that a company should be able to adopt a new philosophy that aims at implementing quality. Borrowing from Deming, need for quality culture was identified. Creating quality culture implies changing the way all individuals in a organization conduct themselves. Quality culture can constitute on job training, good leadership and establish better working environment. Deming advices on better inventory management by working with one or few supplies. This can help in reducing cost as well as establish better monitoring on suppliers.
Juran’s quality principles are incorporated. Juran emphasized on need for commitment for quality. He advice that all individuals in a company, from top management to junior workers, should be committed to quality. In establishing quality culture, top management is expected to lead by example by showing commitment to quality. According to Juran, setting goals and working toward the goals is essential in achieving sustainable high quality. Crosby on the other hand propose a ‘No Defect’ principle in order to ensure quality.
Reference List
- Sharma, J. (1998). Excellence through Quality Circle. RBSA Publishers.
- Barry, T. (1991). Management excellence through quality. ASQC Quality Press.