...WENGART AIRCRAFT: BRIEFING NOTES Source: Harvey, D. & Brown, D. (2001). An experiential approach to Organisation Development (6th. Ed.). Upper Saddle River: Prentice-Hall. President Ralph Larsen of Wengart Aircraft has become increasingly concerned about profits. Though he is not fearful of a company takeover, he does feel an obligation to maximize shareholders' return on their investment. He and about a dozen top executives receive sizable stock bonuses, so it is to their advantage to obtain a high share price. Wengart manufactures commercial and military aircraft. It is number two in its industry, which is composed of nine companies. Its profits, however, are ranked seventh. It is disturbing to Larsen and his top management team that they are not able to maximize profits. QUALITY PROBLEMS Quality has been identified by the top management team as one of the major problems at Wengart. Aircraft have to be reworked even after they are sent to the customer. The federal government, one of Wengart's largest customers, shares the concern for quality to the extent that several letters have been sent to Larsen from the Secretary of Defence warning him that unless quality is improved by 20 percent within 6 months, the government will exercise its contract provision to withhold partial payment as a penalty. This will place even more pressure on profits. Nongovernmental customers have also expressed serious concerns about quality. There have been major stories in The Wall...
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...Risk Factor Analysis— A New Qualitative Risk Management Tool John P. Kindinger, Probabilistic Risk and Hazards Analysis Group, Los Alamos National Laboratory John L. Darby, Probabilistic Risk and Hazards Analysis Group, Los Alamos National Laboratory Introduction Project risk analysis, like all risk analyses, must be implemented using a graded approach; that is, the scope and approach of the analysis must be crafted to fit the needs of the project based on the project size, the data availability, and other requirements of the project team. Los Alamos National Laboratory (LANL) has developed a systematic qualitative project risk analysis technique called the Risk Factor Analysis (RFA) method as a useful tool for early, preconceptual risk analyses, an intermediate-level approach for medium-size projects, or as a prerequisite to a more detailed quantitative project risk analysis. This paper introduces the conceptual underpinnings of the RFA technique, describes the steps involved in performing the analysis, and presents some examples of RFA applications and results. project activity flow chart to help organize the RFA. The flow chart defines the tasks to be modeled and their interrelationships for the project schedule analysis. WBS and schedule tasks may be consolidated and/or expanded to explicitly highlight those tasks and influences that are expected to have a significant technical risk and/or significant uncertainty in schedule or cost performance. The flow chart is developed...
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...I. Problems: A. Macro 1. Culture Resistance To Change – Currently the Director of Accounting and the Production Manager are against the proposal because of the high risk, the uncertain results, and the need for new machinery for the current production line. Without all the management in agreement it can prevent the company from remaining competitive or adapting to a changing environment. 2. The Organization needs to remove the fear of failure and provide a climate that supports the risk that is being taken. B. Micro 1. The management team is questioning Mr. Spinks because the feel he is often autocratic, strong-willed, and impatient. Mr. Spinks has to show he has the same ethical and value as the organization. 2. Determining the Priority of the Goals – Is Mr. West looking for Mr. Spinks to just make him look better after having a bad couple of years or is the goal the Mr. West really have in mind is for the better of the company. II. Causes: 1. Dim Lighting Company has not produced new products or set them apart from the competition. In order to be successful the company needs to standout from their competitors. 2. With changing technology Dim Lighting Company needs to come up with innovated ideas to make them stand out. They need to keep the customers coming back and not going to the competitors. 3. All companies have to look at change to continue to grow and stay competitive. Without change profits can become stagnant and can this could be the demise of the...
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...Wengart Aircraft Case 1. What are the macro and/or micro level problems? 2. What are the potential causes (please support your view)? 3. What are your recommendations? The macro problems include top management not thoroughly understanding, implementing or communicating TQM to their employees. This caused negative rumors to develop. Larsen also said that he was too busy which indicates that the company does not have management buy-in on the TQM project. The micro problems include the quality of production is impacting the company’s reputation and they are dangerously close to losing more clients,. Upper management is focusing on profits only instead of the individual pieces that can improve profits. One cause is that the company tried to implement TQM by only putting the production manager in charge instead of listening to Lopez who suggested that human resources and production work together under the direction of Larsen’s office to implement the changes. This was a mistake because TQM requites a culture of quality at all levels of the organization. To implement the changes was going to require education and training and these items should have been considered. My recommendations would be to restructure the TQM to be run from Larsen’s office and have all managers involved. I would also suggest hiring an OD professional to manage this project as well as develop a plan to improve profits. I would also get the necessary training and education for the workers....
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...Wengart Aircraft Problems Macro There is a lack of understanding of TQM and how to implement it. Management did not fully commit to TQM; management looked at the TQM as a production issue and focused its leadership to solve the problem with its Vice President (VP) of production. It also failed to recognize that TQM is an organization wide effort and must be enforced, encouraged and supported from Top management in word, deed and philosophy at every opportunity. Training, is knowledge and management focusing on profits and not the implementation of TQM. There is lack of trust from unionized workers. The workers suspected this was profit motivated and perpetrated by top management to benefit top management with credit and profits. The workers held their own meeting and decided that increases in quality and efficiency meant cut backs in the labor force and loss of jobs. They decided on their own the way to fix the quality problems was to slow down the work and ensure their where no defects to the products before it left the factory. Their reasoning is by slowing production quality will increase and no one will lose their job. Inversely, if they increase quality and efficiency, jobs will be lost and this normally is blue collar jobs that get cut. Micro There is a deterioration of profits and lack of quality. Top management is focusing on profits and not TQM. There is wasted time and lack of team work between the different sections. Causes Some of the causes...
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...Pricing: Overall, Porsche is strongly positioned to differentiate themselves and produce vehicles at a profitable, competitive price. Technology sharing with the Volkswagen group allows for efficient cost competitive production that should become even more efficient over time, and current assets help keep fixed costs down. One major weakness at this point is the dilution of brand image. Although Porsche was saved from bankruptcy by the introduction of down-market or recession models such as the Boxster and Cayman, their success has been self sacrificing, and the brand is no longer valued as highly. This reduces the premium consumers are willing to pay for a Porsche product, although the decrease is presently minimal and is largely replaced with high engineering abilities. However it is important to note that Porsche 911’s advantages in having a small, compact design and having the most fuel-efficient car may have a distinct effect on future markets three years from now, making their benefits more relevant in the future, and thus consumers would be more willing to pay a price premium for. Porsche should focus on a pricing strategy of enhancing the sales mix, and apply the pricing strategy of layered pricing especially upon offering different versions of the 911 to different segments of the target market at different price points according to specific needs. However, this can be further augmented by increasing price while offering the same benefits. Applying this deep...
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...Analysis Wengart Aircraft Case Week 5 At its core, Total Quality Management (TQM) is a management approach to long-term success through customer satisfaction (Brown, 2011, p. 344). TQM is an organization-wide change movement towards streamline work-groups and structure. In a TQM effort, all members of an organization participate in improving processes, products. One of the large problems facing Wengart Aircraft is total quality management (TQM) is not being communicated clearly and concisely to the entire company. By Allen Yoshida doing a presentation to only the managers and supervisors on what TQM was this left room for “various interpretations of TQM” by the managers, supervisors and front line workers (Brown, 2011, p. 365). The fact that during the presentation Allen Yoshida did not clearly illustrate how TQM would affect the company’s everyday activities or how it would be implemented only further confuses the miscommunications happening thought the company. TQM calls for creating constancy of purpose for improving products and services. If the message received by the lower level employees is not consistence then the improvements or change will not be consistent either. Another large problem facing Wengart Aircraft is total quality management should be worked towards by the whole company, from the top of the company down, all groups should be embracing this change. CEO and other top managers visibly support TQM, which is not happening at Wengart Aircraft...
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...communicated throughout the organization what the successes and failures are. All members need to realize the strengths and weakness of the company and how they can be altered. Make sure the accomplishments are measured at all levels. Also, the managers must provide a common language to be shred within the organization. Hence, the scorecard reshapes the company’s alignment. It helps align each member individually and collectively. It is a way to capture the market niche, gain power, and improve on the company’s current market share. The final key success factors are to provide the best service possible, respect the individual and its environment, and excellence through technological advantages is the way of life of production. Technical Wengart technological systems are also affected. The portions of the system that can be fixed are the way they check the vulnerability of the aircraft. That way it will help eliminate problem areas as they arise and can be restored. The company should empower individuals that can represent each subunit. For example, an information systems representative that can report directly to the project manager that will retain close ties with the division. Also by having a technical representative can also aid in the advancement of training, output of quality components, new techniques of production. This will eliminate mistakes in the inventory process and not so much time being spent on reworking defective equipment. The company needs to impact the contextual...
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...President Ralph Larsen of Wengart Aircraft has become increasingly concerned about profits. Though he is not fearful of a company takeover, he does feel an obligation to maximize shareholders’ return on their investment. He and about a dozen top 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. Its profits, however, are ranked sixth. It is disturbing to Larsen and his top management team that they are not able to maximize profits. Quality Problems The top management team has identified quality as one of the major problems at Wengart. Aircraft have to be reworked even after they are sent to the customer. The federal government, one of Wengart’s largest customers, shares the concern about quality. The Secretary of Defense has sent Larsen several letters warning that unless quality is improved by 20 percent within six months, the government will exercise its contract provision to withhold partial payment as a penalty. This will place even more pressure on profits. Nongovernmental customers have also expressed serious concerns 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...
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...Wengart Aircraft Case Study Wengart Aircraft Problems Macro There is a lack of understanding of TQM and how to implement it. Management did not fully commit to TQM; management looked at the TQM as a production issue and focused its leadership to solve the problem with its Vice President (VP) of production. It also failed to recognize that TQM is an organization wide effort and must be enforced, encouraged and supported from Top management in word, deed and philosophy at every opportunity. Training, is knowledge and management focusing on profits and not the implementation of TQM. There is lack of trust from unionized workers. The workers suspected this was profit motivated and perpetrated by top management to benefit top management with credit and profits. The workers held their own meeting and decided that increases in quality and efficiency meant cut backs in the labor force and loss of jobs. They decided on their own the way to fix the quality problems was to slow down the work and ensure their where no defects to the products before it left the factory. Their reasoning is by slowing production quality will increase and no one will lose their job. Inversely, if they increase quality and efficiency, jobs will be lost and this normally is blue collar jobs that get cut. Micro There is a deterioration of profits and lack of quality. Top management is focusing on profits and not TQM. There is wasted time and lack of team work between the different...
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...Lindo Enterprises is one of the small-scale industries which has established and positioned their product in the market. They are in the business of processing raw seafood into a packed-snacks. Their financial data had shown an increasing sales and profit year after year since 1998. However, they are faced with a challenge of maintaining their competitive advantage and market position through a sustainable 10% annual growth rate for the next five years. Achieving this target would require the considerations and a careful study of the major threat or problems that the business is, and is going to face. Competition is on the top list, distribution of the product both locally and internationally through export-consolidators considering the quality standard, the increasing worldwide trend towards health consciousness which negates the consumption of processed snack foods and the stricter health and sanitary requirements on the import goods of the export markets are the major threat that must be resolved or given action. The analyst had come up with the recommended plan of action that could counter strike the above mentioned threats or problems. A strong campaign for marketing strategies to promote the product and gain the competitive advantage, a nationwide distribution of the product must be targeted, a continuous innovation of the product focusing on its quality and standards that could surpass the export requirements and of course considering to go with the direct exporting which...
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...Charlotte Beers (Ogilvy & Mather) Case analysis At the point of planning to the launch of the business, the owner of the business is very passionate and usually experienced in the line-of-business; as David Ogilvy was at the age of 38 when he started his own advertising agency in 1948. Ogilvy & Mather, an advertising agency was started in New York and expanded worldwide. By 1991, O&M was ranked the largest marketing company in the world.[1] But there comes a time when a company must look to adapt a change. With competition growing, clients of O&M changed their demands. O&M was a high-cost agency that was failing in controlling their budget and lowering their cost; they failed to see the reason for a change. Due to that fact, O&M had lost few of their multi-million dollar accounts. Many companies may have either filed bankruptcy or have shutdown in the process of losing their clients but O&M was not the type of company that would give up that easily. In 1992, Charlotte Beers was appointed CEO of O&M and a massive change was underway. She was not the type of person who would dwell on the past, but instead look to better the future. Charlotte Beers clearly made an impression on the O&M employees as she had the ability to inspire. But more importantly, she came up with three strategies which turned the company around 360 degrees; Client Security, Better Work/More Often, and Financial Discipline. Yes these strategies were formed for an advertising agency...
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