Riordan Manufacturing’s strategic plan to strengthen the Riordan brand and gain market shares requires an evaluation of the company’s Total Quality Management (TQM) system and to improve all processes that is not working efficiently. The company has tasked this team of managers and employees to evaluate and make recommendations to improve the systems, policies, and processes currently used by the company. This paper will identify the process that is the least efficient, examine the data, and outline recommendations to improve the process.
To identify the least efficient process this team created a Pareto chart. “The Pareto chart is usually thought of as a problem identification tool, and it is. Once used to identify the potential causes of a problem, it can also report the progress of the corrective efforts.” (Hamilton, 2002,1). The Pareto chart revealed a problem in the manufacturing of plastic bottles used for water distribution. The team then did further analysis of the process to create the bottle and the quality control system designed to remove defects from the bottle. The analysis revealed that quality control system was operating at 98% efficiency, which indicated those defects are being injected into the system during manufacturing (Burrill & Ledolter, 1999). This team has identified the manufacturing process as the system not working efficiently and in need of the most improvement. The team will collect data on the systems and polices used by the workforce, as well as maintenances and calibration of the machines used in the manufacturing process.
Riordan Manufacturing and all employees are proactive in our efforts to increase the manufacturing of only quality products and the Pareto chart will reveal problem areas and show were improvements should be made.
The goals of our company are to increase operations to make the products as efficient as possible in all that we manufacture. The plastic bottles being produced at 98% with only 2% being taken out due to flaws in the materials is only 2% from perfection. The goal is to expand the same method to all goods that Riordan produces and this will save money on re-manufacturing due to low quality or sub-standard products. The Total Quality Management (TQM) used will be displayed so that all employees will know at any given time what is going on during production. The manufacturing process has been identified as one of the main problems and needs to be addressed as soon as possible and a new plastic bottle needs to be researched for a cost effective solution because some of the costume plastic parts used can be replaced by higher quality and cheaper plastics. The operating cost will drop by the 10% that we were looking for and add to the roadmap for improvement. The quality control before shipping will stay in place for anything missed during the transition and have a positive effect on the operating income by increasing market share.
Operations will also look for ways to increase quality through employee feedback and will pass along all suggested improvements to management. A bonus will be paid to any employee who finds a quality issue and stops the defective product from entering the production process and be shipped to a customer.
In order for a process to be effective, a company or organization needs to be able to analyze the process itself. By analyzing the process, a company can determine whether or not the procedures are sufficiently discovering errors or defects (Burrill & Ledolter, 1999). Analyzing the quality control or quality management process assures that the company is continuously focusing its efforts on improving the quality of its goods or services. Additionally, when a company sets up a system of regularly analyzing its process, the company can determine whether or not any changes are necessary in the project.
As the company enhances its products...