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Air Quality Inc

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AIR QUALITY INC CASE STUDY SCM880ZS
February 18, 2015

OVERVIEW
Air Quality Inc. was founded in 1984, and Patrick Wallace is the plant manager at Air Quality Inc. Their mission is to improve the quality of life by creating manufacturing and marketing innovative energy recovery products. Their management belief was based on 4 principal keys: assembly, design, steel fabrication and the manufacture of aluminium head recovery ventilators.
Patrick believed that defective equipment had been shipped to customers and he had to react immediately.
BACKGROUND
AQS manufactured ventilation, air-cleaning and heating equipment for residential and commercial applications. They have a very high reputation for quality and technical innovations. Approximately 60% of 3400 parts used in manufacturing operations is procured from suppliers, while the remaining 40% remains in house.
Most important products are singled sourced and less important one were usually purchased from other suppliers at low cost that met the expectation of quality, quantity, and delivery. They sold more than 300 different products under Air Purity brand to large distributors that sod the wholesalers, which in return sold them to independent contractors.
These products were installed in homes and commercial properties. Their product prices for HRV varied between $550-750.
QUALITY PROBLEM
Wallace noticed that the foam insulation was peeling off the doors in a batch of HRV equipment that had been manufactured recently and awaiting for shipment.
The foam was separated from PVC layer leaving a layer of adhesive on the door.
And this separation could cause the HRV unit to malfunction. Patrick expected that similar problem might have occurred with some product that may have already shipped to customers.
So he stopped all HRV deliveries until the

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