ENGM 620
Fall 2010
Session Three Homework Solutions
Many of these questions do not have a universal answer. Therefore, the answers are
written to elicit a range of potential answers based on differing perspectives. When this
is true, it is particularly important for the student to concentrate on justifying their
selected perspective.
Chapter Four Discussion Questions
2. A study by the U.S. General Accounting Office reported that, on average, a firm takes
3.5 years to see significant results from a quality improvement program. What do you
think it takes so long to see significant results? Please make your answer as substantive
as possible.
In the section The Importance of Time in Quality Improvement, the length
of time that it takes for implementing an effective quality program is
discussed. The estimates vary from 3.5 years (US General Accounting
Office) to 25 years (Shigeo Shingo). In the discussion, however, the point
is made that a slower process is more effective than a rapid one. The
Management by Dictate model is discussed: in this case, management
specifies a time frame and an expected level of accomplishment. On page
108 the text says
According to Donald Wheeler, a professor at the University of Tennessee,
when goals such as these are set, one of three things will occur:
1. People will achieve the goals and incur positive results.
2. People will distort the data.
3. People will distort the system.
The text states that for the process to be successful, firms need to
put in place a process that will allow learning to occur. Allow people to be
a part of the change.
Quality improvement, if it is successful, is a change to the culture
of the company. On page 108 Deming said that continuous quality
improvement was a slow process that required commitment of resources
and time.
3. According to the quality literature, without top management leadership, quality
improvement will not occur. Why do you believe this is the case?
The text maintains that Leadership Equates with Power. This power is
defined as:

Power of expertise

Reward power

Coercive power

Referent power

Legitimate power
The text also states that for the employees to feel empowered, power must
be shared. This establishes an environment where a leader can effectively
influence the organization through mutual trust.
Employees also must trust that if they make recommendations for
improvement, the recommendations will be taken seriously and considered
for implementation by management. Nothing can damage a quality
improvement effort faster than management’s failure to consider
implementing changes that employees recommend. Employees may begin
to think, “nothing will really change.” Quality specialists who find
themselves in companies not implementing a majority of employee
suggestions need to work with management to increase the percentage.
This all implies that direction, in the form of strategic planning,
must originate from the top. In an environment where the mutual trust has
been established, the line will then follow along.
5. Trust has been identified as a very important attribute for leaders who are initiating
quality improvement efforts. Why do you believe trust is such an important attribute?
As quality becomes a continuing part of the line, the worker is, by
default, more visible. For a genuine quality environment, an employee
must feel that he is part of the solution, not the problem. An employee
who feels that he is not trusted might not show the initiative to suggest
methods for ongoing quality improvement. On page 111, the text states:
One reason trust is important is because quality improvement
efforts are often associated with productivity and efficiency improvement
efforts that have resulted in reductions in the workforce. Therefore, it is
important that leaders are consistent over time in their actions so that
employees will trust the leader enough to pursue quality. One major
U.S. corporation overcomes this trust issue with a written policy
stating: “ The company reserves the right to adjust work forces in
accordance with market and economic changes. However, the company
will never have a reduction in force as a result of quality and process
improvement efforts.”
Employees also must trust that if they make recommendations for
improvement, the recommendations will be taken seriously and considered
for implementation by management. Nothing can damage a quality
improvement effort faster than management’s failure to consider
implementing changes that employees recommend. Employees may begin
to think “nothing will really change.”
11. Describe the difference between external and internal failure costs. Is one cost more
important than the other? Explain your answer.
The following two tables illustrate the situation:
They are associated with product failure after the production
process. External failure costs include failure after the customer takes
possession of the product. While the cost of failure may vary across
circumstances, common sense says that external failure costs are the most
expensive. It is always better to catch mistakes as soon as possible. The
worst possible scenario is to find out that a part is defective after the
customer has already started using it.
The Lundvall-Juran model illustrated below is a simple economic
model. It shows the difference in expenditures between internal and
external expenditures.
16. Describe the benefits of strategic planning.
On page 105, the text outlines the basic reasons for strategic
planning:
The basis for assuring quality is strategic planning that prioritizes
and plans quality improvement. The question is: “If we want to achieve
our goals, how are we going to get there?”
Continuous quality improvement is dependant upon long-range
strategic planning.
Figure 4-6 illustrates the steps needed for supply chain strategic
planning. The steps:
 Define
 Identify
 Observe
 Organize
 Implement
 Monitor
They are integral for any activity.