Hank Kolb Case

Hank Colb Case (Quality Control)

Hank Kolb Case:

Quality Control

Product & Operations Management (346), Section 2, December 1, 2010

Professor: Bud Roychoudhury

INDEX:

* Introduction..................................................................................................................... Page 2

* Definition of Problem..................................................................................................... Page 2

* SWOT analysis................................................................................................ Page 2-6

* Root Problem...................................................................................................... Page 6

* Alternative solutions .................................................................................................. Page 6-8

* Solution Suggestion........................................................................................................ Page 8

* Conclusion........................................................................................................................ Page 9

INTRODUCTION

When analyzing this case, it is obvious that this company has some areas they could improve upon. We plan to provide a solution to these various problems through extensive definition of the problem, thorough SWOT analysis, and suggestion of various solutions and alternatives that are best fit to improve the quality inside this business. Each section is filled with our detailed observations, all coming together in the end with one goal in mind: making your business better.

PROBLEM DEFINITION

SWOT Analysis

The SWOT analysis begins by looking inside your business for both the apparent and hidden strengths and weaknesses of your operation. A company's strengths should be realistic and not modest. The first apparent strength is the experience that Hank Kolb has gained through the attendance of the seminar on quality. He now has the knowledge that something is going wrong and can start taking the actions to correct it. His experience will provide insights regarding how to go about different issues involved in running the business. Also, with solving these problems he will have gained the communication skills and the valuable dedication of the organizations people. The case states that Greasex was rushed to the market to beat competitors. This means that the Greasex name has become a recognized brand name which gives it a competitive advantage over the competitors. Another strength is the cutting-edge design of the Greasex can distinguishes it from any other, which will help the consumer to see how easy it is to use over the competitors design.

Weaknesses are internal forces that could serve as a barrier to maintain or achieve a competitive advantage. Weaknesses should be truthful so that they may be overcome as quickly as possible. We also isolated several weaknesses with our SWOT analysis. The first one is the lack of the importance of a "quality attitude" within your business. The enthusiasm is great, as previously mentioned, but it seems "quality of product" is not a priority among the employees. This becomes even more apparent with the absence of formal training for the operator of the filling equipment, coupled with no quality standard or manual for reference. Poor equipment is partially to blame for the lack of quality, with numerous work orders, and no preventative maintenance, the machine is almost guaranteed to produce a product with a different problem every time. This is emphasized by the nonstandard downtime statistic of 15% of actual run time. Insufficiently finished components, such as the plastic nozzle used on the Greasex can, also contribute to poor overall quality by ignoring the burr which prevents the nozzle from fitting properly. Lack of testing for the effects of the new contoured can on filling pressure is a likely candidate for quality issues. The overall disregard for quality comes down to the importance placed on gaining an increased market share instead of safety and quality. This is shown by the bypass of rework for cases of cans found to have unacceptably high pressures, in order to meet production quotas. Promotions based on production numbers will inherently place a higher emphasis on quantity than quality within a business, as made apparent by the foreman's neglect for rework.

The opportunities of a company are any favorable situation, whether it be now or in the future, that are in the external environment. Opportunities typically involve possibilities to leverage your existing strengths to exploit new openings provided by the market. With all the weaknesses within the case, there are equal opportunities for improvement within the Greasex line. The first opportunity that this company has is growing technology developments that open prospects for products like Greasex and render other products obsolete. This is an important opportunity for a company to assess because new technology is developing continuously. Greasex could be surpassed by a competitor with a new form of degreasing technology if technology isn't always being addressed. Another opportunity that the Greasex line could take advantage of is to partner with another product on the local or global context. Greasex could be paired with a product that has a high brand awareness which would help the line move into a new market with more potential for loyal consumers. One opportunity that Greasex should not miss out on is exploiting the weaknesses of its competitors. If this company is having these problems, other competing companies are probably experiencing some of the same quality issues, pointing out how easy it is to have quality issues and what Greasex is doing better than the competitors will gain market share and increase sales.

Threats are external forces that could inhibit the attainment of a competitive advantage. They can be thought of as any unfavorable situation in the external environment that is potentially damaging now or in the future. One major threat is that new technology can render the company's products obsolete. If a company isn't continually trying to better their technology developments, the competitor could come out with something newer and better for the consumer and could take a lot of the market. This could also mean