Quality Management Exercise - Jones Manufacturing, Inc: Hypothetical Quality Management Study Findings and Recommendations ANALYSIS RESULTS

Three Key Weaknesses:
1) Revenue Loss a. Revenue and profits have fallen dramatically over the last 12 months b. Non-conformance costs are skyrocketing c. Market share has dropped d. Customer complaints are at an all-time high
2) Low Morale a. Employee morale is at an all-time low b. High employee turnover continues unabated
3) Lack of Training a. Jones has no formal quality program in place

RECOMMENDATIONS

Revenue Loss: Improve Quality to Reduce Costs and Increase Productivity

1. Understand what poor quality is costing – Jones must assess and understand the true financial impact of its continued non-compliance and low customer satisfaction versus the costs associated with process and product reform. Using a Cost of Quality approach, the costs incurred in maintaining acceptable quality levels is added to the cost of failure to maintain that level and meet customer requirements. Given the costs associated with reworks, delays, customer complaints, returns, and non-conformance fines, analysis clearly indicates that Jones’ internal and external costs resulting from failure to meet requirements and expectations far outweigh investing in the prevention of non-conformance to requirements and appraising its products for conformance. The cost savings from increased process efficiency and productivity alone will offset the cost of the necessary quality monitoring and control measures.
2. Make a commitment to Total Quality – With the financial benefit of Cost of Quality to Jones’ bottom line understood, the company as a whole must declare Total Quality to be its first and most important priority. All