Question

CASE: WENGART AIRCRAFT President Ralph Larsen of Wengart Aircraft has become increasingly concemed about profits. Though he is not mha te and about a dozen top company takeover, he does feel an obligation to maximize shareholders' return on their inv executives receive sizable stock bonuses, so it is to their advantage to obtain a high share price. Wengart manufactures private and military aircraft. It is number two in its industry, which consists of seven companies are ranked sixth. It is disturbing to Larsen and his top management team that they are not able to maxi- Its profits, however, mize profits. Refer to Figure 13.2 for Wengart Aircraft's organization chart Quality Problems top management team has identified quality as one of the major problems at Wengart. Aircraft have to be reworked even Wengant's largest customers, shares the concem about qual- Larsen several letiers warning that unless quality is improved by 20 percent within six sovenment will exercise its contract provision to withhold partial payment as a penalty. This will place even mone customers have also expressed serious concens about quality. There have been major stories in the Wall Street Journal and Business Week about Wengart's quality problems and deteriorating financial condition. The Department of Defense, in its latest letter to Larsen, said it would look favorably upon Wengart's implementing a TQM program similar to programs at other aircraft, automobile, and electronic firms, By Presidential Executive Order 12552 applying after they are sent to the customer. The federal government, one of ity. The Secretary of Defense has sent executive agencies, the Department of Defense is encouraging all defense contractors to adopt TOM Total Quality Management and the OD Practitioner Larsen, in an effort to learm more about TQM, hired an OD practitioner to explain it. The practitioner made several a two-hour meeting with Larsen: points at Customer, engineering, production, and product support functions are integrated into a team ·The customer is the next person in line. Therefore, for someone within the company, the customer can be the next per- son on the production line, and for the company the customer is the purchaser of Wengart's planes. Everyone in the company is both a customer and a producer Ralph Larsen Mara Lopez Vice President Human Resources Kent Kely Vice President oner Vice Presidents Allen Yoehida Pico Durango Plant Manager Other Other Division Division Head Other Department Heads Head Mary Rome Other George Oher Line FIGHRE 13.2 Wengart Aircraft Organization Chart

Answer 1

Answer:

I-A- Macro problems

• Due to decrease in quality of products Wengart aircrafts is losing its customers which is one of the major macro problem.
• Communication problems and deficiencies between employees and management lighted negative rumours and uncertainty amongst the workers and employees.

B- Micro problems

• Company's reputation is directly impacted by the quality of production.
• Higher management wants to seek and have higher profits.

II- Causes

• The company tried to implement TQM by directing Toshiba, 1 plant manager to implement the new direction which was a mistake because TQM would be all of management playing a major role in the transition process.
• They must have implemented training and had higher communication meetings to relay the new process design and thereason company needed to do so.

III- System affected

• i. Structural – the company's structure is majorly not proportioned well. The entire company rolls to 1 of 3 Vice Presidents.
• ii. Psychosocial factors are also there where the company's psychological activities are noticed.
• iii. Technical – All the employees lack proper training to keep up with competitors.
• iv. Managerial – Mangers lack definite and proper training on how to effectively manage employees using TQM methods.