Tecsmart Electronics

TecSmart Electronics is known for its good quality products due to its product development programs with its suppliers. The management has been guided with Deming’s framework in carrying out its philosophy to maintain focus on quality, service, and value. Although the framework was bound to improve its operational process, there are certain limitations or disadvantages including the organization’s lack of performance assessment to employees. Lack of assessment usually befalls to grievances when it comes to rewarding and promoting staff. In addition, if the organization put too much emphasis on Deming’s points at the center of their quality management, it becomes preoccupied with internal processes while external issues are ignored.

Background Information

TecSmart Electronics designs, manufactures, and repairs electronic power supplies for a variety of original equipment manufacturers in the computer, medical, and office products field. The company’s focus is summed up in three simple words - quality, service, and value. The organization originally adopted Deming’s 14 Points as guide process; although, the current CEO decided to pursue Baldrige criteria to identify opportunities for improvement.

Problem Statement

In pursuit of performance excellence, how can TecSmart Electronics further improve its quality to gain competitive leadership?

Objectives of the Study

In line with the organization’s established process, the objectives of the study are the following:

1. To identify opportunities for improvement at TecSmart’s operations using different quality models.

2. To explore the insights that can be gained from considering the Malcolm Baldrige criteria for TecSmart Electronics’ business model.

3. To conduct a self-assessment review of TecSmart Electronics’ business model using Baldrige criteria to drive process improvement.

Areas of Consideration

The group analysed the data presented in the case and has come up with the below SWOT Analysis:

Strengths:

1) Management’s Support and Commitment -

2) 360 Feedback on Quality – (a) Internal Audits, (b) Employee Opinion Surveys, (c) Customer Feedback

3) Training and Development – (a) Customer Relationship Training, (b) Quality Training, (c) 5-step Problem Solving Process, (d) Six Sigma

4) Collaboration among team members – (a) Quarterly Communication Meetings with all employees, (b) Suppliers being involved in early stages of product development.

5) Comprehensive strategic planning process - All key members of the supply chain network has been involved and considered for constant improvement.

6) Established processes on Quality Control – (a) Six Sigma, (b) Four Interim Reviews by Management on Product Development, (c) Statistical Process Control, (d) Escalation Management, (e) Process Improvement.

Weaknesses:

1) Complaints Management – Currently, all complaints are handled by the Vice President of Sales and are resolved within two days.

2) Resistance to Change – Number of employees wouldn’t embrace process change due to uncertainty or lack of competence.

3) Salespeople are authorized to travel whenever they feel it necessary for customer service.

4) Quality control - Quality is being assessed by internal audit team in which results can be manipulated .

5) Unequal distribution of workload - Important job functions for quality improvements are under senior leaders which can be done by quality control team.

Opportunities:

1) Suppliers involvement in the early stage of product development - Certified supplier’s materials are already exempt from incoming inspection.

2) Collaborative and long-term relationship with suppliers - TecSmart can move to a single supplier for every item/raw material to minimize supply chain cost resulting to increase in the company’s profit margin.

3) Collaborative engagement with external auditors - Aside from its internal auditors, TecSmart may also consider to use external auditors for its quality control to avoid any partiality with the results.

4) External benchmarking - TecSmart may also consider to benchmark its core processes across the industry

Threats:

1) Threats from emerging competitors.

2)

Analysis of Alternatives

Having derived the opportunity for TecSmart Electronics to further improve its process for managing quality and driving process improvement, the group come up with the following alternatives:

1. Retain Deming’s 14 Points as the standard framework for TecSmart Electronics in managing quality and process improvements but determine the processes that require further improvement.

Pros:

- Deming philosophy has already been tried and tested by the company and its employees.

- The operations of the company run smoothly since employees are very familiar with the principle.

Cons:

- There will be no opportunities for improvement.

2. Adopt the Baldrige principle as the new framework for TecSmart Electronics in managing quality and process improvements.

Pros:

- New philosophy provides new insights and opportunities for improvement.

-

Cons:

- Trainings and seminars will be needed which would result to additional costs.