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Chrysler Tqm

In: Business and Management

Submitted By faico
Words 2668
Pages 11
Term project Operation Management
CHRYSLER:
[pic]
Total Quality Management

Submitted to Dr. Chafik Abid
CONTENTS

-Introduction………………………………………………….
-Chrysler Total Quality management……………………….
-Chrysler SWOT Analysis……………………………………
-Chrysler service Quality……………………………………..
-Chrysler service and dealership Problems (Middle East)…
-Chrysler Service solution…………………………………….
-Conclusion…………………………………………………….
-Work Cited……………………………………………………
INTRODUCTION:
DaimlerChrysler AG with its businesses Mercedes-Benz Cars, Daimler Trucks, Daimler Financial Services, Mercedes-Benz Vans and Daimler Buses, is a globally leading producer of premium passenger cars and the largest manufacturer of commercial vehicles in the world. As it can be seen above that the integration of the two different companies with similar line of production makes the company stronger, reliable, and caters the best for its customer needs and satisfactions. As a result, we chose this company to discuss further on its Total Quality Management and other related issues.

Total Quality Management is a set of management practices throughout the organization, geared to ensure the organization consistently meets or exceeds customer requirements. TQM places strong focus on process measurement and controls as means of continuous improvement. TQM views an organization as a collection of processes. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge and experiences of workers. The simple objective of TQM is "Do the right things, right the first time, every time". TQM is infinitely variable and adaptable. Although originally applied to manufacturing operations, and for a number of years only used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in service and public sector organizations. There are a number of evolutionary strands, with different sectors creating their own versions from the common ancestor. TQM has three main principles. The first and major TQM principle is to satisfy the customer--the person who pays for the product or service. Customers want to get their money's worth from a product or service they purchase. A second TQM principle is to satisfy the supplier, which is the person or organization from whom you are purchasing goods or services. The third principle of TQM is continuous improvement. You can never be satisfied with the method used, because there always can be improvements. Certainly, the competition is improving, so it is very necessary to strive to keep ahead of the game.
CHRYSLER TQM:
At DaimlerChrysler, quality always comes first.
Automotive parts help keep passengers safe. This has been the company’s belief since the company was founded. All employees at the company are focused on the customer and committed to continuous quality improvement. The company works under the principle that quality always comes first: the entire product manufacturing process is the process of quality control. The standard of quality that earned the company Deming Prize in 1961 and allowed it to receive QS9000 accreditation in 1996 is still present in its Total Quality Management (TQM) activities. As part of TQM, Chrysler’s top executives determine quality objectives, create frameworks, and lead the Consumer Satisfaction (CS) Improvement Committee, Quality Assurance Council, and TQM contests, which serve an important motivational role for employees. Each year the CS Improvement Committee defines the main goals, and then directs focus on improving these areas. In fiscal 2003 attention focused on strengthening the quality assurance system at Chrysler's production bases in Europe and china. In addition to this, in March 2004, all companies (all business departments and departments with associated roles) received the European automobile industry quality management system qualification, ISO/TS 16049:2002.

CHRYSLER SWOT ANALYSIS
Strengths:
As the number two auto manufacturer in total revenues DaimlerChrysler has positioned itself as an industry leader, with this come many strengths:
The DaimlerChrysler umbrella covers many well-known brands such as Dodge, Chrysler, Mercedes Benz, and Jeep. This means DaimlerChrysler has strong brands that are recognizable in almost every part of the world. Within these brands DaimlerChrysler also has wide variety of automobile products that span all price ranges and model types, from economy cars to luxury models. Brands such as Jeep are recognized worldwide for off-road and SUV vehicles, while Mercedes Benz is one of the highest quality luxury car makers in the industry. DaimlerChrysler is even represented in the realm of ultra luxury with its Maybach brand which competes directly with manufacturers such as Bentley and Rolls Royce.

In the arena of American car makers the Chrysler brand stands out as a leading innovator in vehicle design. Chrysler is well known for category breaking models such as the PT Cruiser and Plymouth Prowler. The Dodge Viper is a vehicle that broke away from the mold of other American sports cars to drive the imagination of car buyers, and increase the connection of style and image with DaimlerChrysler vehicles.

DaimlerChrysler is currently a leader in hydrogen fuel cell technology. Hydrogen, considered to be the next big breakthrough in automobile engines, has the ability to revolutionize the industry. If or when this is the case DaimlerChrysler’s commitment to research and development of the technology will help ensure the company remains on the top of the automotive world.

Weaknesses:
With all of the strengths that come with being a top auto manufacturer every company must also face weaknesses that can arise from the current business landscape and DaimlerChrysler is not immune to these shortcomings. As the automotive industry continues to move in the direction of globalization it is important for manufacturers to be strongly represented in all large and emerging world markets. Although DaimlerChrysler is well represented in the American and European markets they are not strongly represented in the Asian markets. DaimlerChrysler has no brands of its own that command significant market share in either the Japanese or emerging Chinese markets. DaimlerChrysler’s partial stake in Mitsubishi was supposed to be an answer to this problem but current drops in Mitsubishi’s market share accompanied by other problems has left DaimlerChrysler’s future investments in Mitsubishi uncertain, and more importantly with no strong plan to compete in Asian markets.

Related to the problem of Asian representation is the reality that none of DaimlerChrysler’s brands are truly marketable to worldwide consumers. Brands such as Dodge and Chrysler are strong in the US, but have had limited success in other markets. The Mercedes Benz brand is the most recognizable world wide, but as a luxury car maker it is harder to market to a majority of consumers in different markets. The Jeep brand is well known and respected throughout most markets, but its appeal is limited to the specialized group of SUV and off-road buyers.
The growing use of hybrid engines could also cause problems for DaimlerChrysler. There strategy to focus on the entirely new hydrogen technology has left them behind many other major manufacturers in the development of hybrid technology. As other major car companies are preparing to roll out hybrid options for many of there most popular models DaimlerChrysler does not plan to do the same anytime soon. By hitching there wagon to hydrogen power and not trying to capitalize on rising hybrid trends DaimlerChrysler could be missing out.

What has been billed as a merger between America’s Chrysler and Germany’s Daimler Benz has turned out to be more of an acquisition of Chrysler by Daimler Benz. The result is that most top managers of DaimlerChrysler are from Daimler Benz and many of the leaders of Chrysler choose to leave or retire. Many have speculated this “brain-drain” of Chrysler executives could hurt the innovative reputation of the American brands in DaimlerChrysler’s portfolio of manufacturers. Much of the operations of DaimlerChrysler have also been moved to Germany where current wage rates and labor laws have made it hard for DaimlerChrysler to cut costs and bolster its bottom line.

Opportunities:
With the evolution and changing environment of the Automotive industry DaimlerChrysler has many opportunities to increase its strengths and fix some weaknesses. With DaimlerChrysler’s current shortage of Asian market share there Jeep brand could be a bright spot. With the growing trend of consumerism in China it is currently the fastest growing auto market in the world, and the Chinese desire for all things American could provide DaimlerChrysler with a golden opportunity. In Chinese surveys of the most sought after American brands in China, Jeep is in the top 5. DaimlerChrysler has also recently inked deals to build manufacturing plants for Mercedes Benz in Beijing, China. These recent developments provide DaimlerChrysler with more chances to push its products into a hugely coveted consumer market.

The decision to focus on hydrogen power research and development could also bode well for DaimlerChrysler if the current prices of oil and gas become a future standard. The high prices will help to put more focus and energy into viable fuel alternatives which could push the demand for hydrogen powered vehicles, as well as provide opportunities for government subsidies for continuing advancement of the technology. As a leader in hydrogen power DaimlerChrysler is poised to be a large benefactor of any of these scenarios.
Threats:
Along with new opportunities come the inevitable threats and opportunity costs associated with any course of action which have the ability to affect DaimlerChrysler.

A current major threat is the shaky alliance between DaimlerChrysler and Mitsubishi. The current downturn of Mitsubishi has left DaimlerChrysler in a very vulnerable condition. If they continue in the partnership and hope Mitsubishi can pull out of its slump DaimlerChrysler could still face the consequences of not finding other ways to bolster presence in Asian markets even is Mitsubishi does right the ship. Even worse if Mitsubishi continues to flounder DaimlerChrysler may have to cut its losses and find itself even further behind other manufacturers in the race to sure up some of the largest auto markets in the world.

Another great threat is due to DaimlerChrysler’s decision to put all its eggs into the hydrogen fuel basket. If the current trend of hybrid engines continues to catch on and grow throughout world markets DaimlerChrysler’s reluctance to follow suit could cause loss of market share to rivals who offer better hybrid engines in more vehicle models. Even worse, if hydrogen proves not to be a viable energy source in the near future than DaimlerChrysler would not be able to profit from recent heavy investments in the technology and be faced with huge sunk and opportunity costs.
CHRYSLER SERVICE QUALITY:
Daimler Chrysler’s service quality is focused on three main areas, namely: experts, insurance and equipments and information. • Experts
The company trains its staff at The Daimler Chrysler Training Centres and improves their qualifications on a regular basis. The secrete of DaimlerChrysler’s achievements lies in new training technologies and a great deal of practice on training cars and components under control of its instructors. In this way the company gets through professionals who have thorough knowledge of their business. • Instruments and equipment
With all characteristic features of your car in mind the company uses unique instruments and equipment designed specially for Chrysler, Jeep and Dodge brands and approved by the DaimlerChrysler Company. This allows the company to be sure of precise diagnostics and quality of any service operation. • Information
Only the authorized partner can have exhaustive data on innovations and their performance and repair procedures. Besides, the partner has at all time direct on-line communication with a special group of engineers of the manufacturing plant and is able to get technical data on any particular problem.
Such an approach results in top quality service maintenance.
The company is surely proud of such achievement and is happy to offer it to its customers worldwide.

PROBLEMS:

Problems the Company has been facing recently:1) Vehicle quality, safety defects and poor services

2) Rattling noises coming from under jeep

3) Shackles won’t fit over the new leaf

4) Design has not undergone drastic change for the past 20 years, quality declined dramatically

5) Cost was cut down in order to increase the overall profitability of the company
Alternatives:
1) Should improve the vehicle quality especially that of the seatbelts because a lot of the customers have been complaining that it is not safe. Therefore they should do it as soon as possible to retain customers and gain their trust

2) The direction of every lift kit that has been installed is said to be checked after x number of miles

3) The leaf-spring bolts come loose therefore; control-arm bolt can come loose • In this case, the company has suggested that control –arm bushings need to be removed and retightened after the first 500-1000 miles • And the lug nuts on the wheels should be checked after first tank of gas • Liquid soap should be used to help slide the shackles over
4) They also should consider changing their design so that they can attract more customers, rather than just sticking to one design for the past over 20 year.
Problems that the company is facing:
1) Continues to deceive its consumers regarding a known potential threatening vehicles defect such as unsafe seatbelts and steering, which continues to put consumers lives at risk everyday, rather than taking care of this problems Chrysler seems more concerned with rushing into production.
2) Chrysler also continues to reduce its warranty expenses blaming the consumers whenever possible such as defective engines where on schedule oil changes can be proven.

3) Chrysler has also not followed an industry standard which is far safer and much reliable therefore, has a history of not following safer industry standards as it has done in the past with unsafe Gen3 seatbelts, unsafe lift gate latches and lack of brake shift interlock on some of their vehicles
Alternatives:

1) The steering design needs to be recalled due to the unique weakness and sensitivity of the steering design that is of poor quality. 2) Chrysler should redesign and recall the steering rack
Some Dealership Problems:
1) Dealers here in the UAE are supposed to inspect new cars if problems aren't caught and fixed immediately before the customer experiences them if not the customer will form a lower opinion of the car's quality.
2) Some bad dealers take minor problems and multiply them because they feel few people can tell the difference between manufacturing defects and poor service.
3) Many dealers' service process, particularly for low- to mid-range car lines like Chrysler's, clearly disrespects customers' time and intelligence.

4) People blame the company for dealer problems; either they don't realize the dealer is individually owned, or they feel the company shouldn't tolerate bad dealers.
Alternatives

1) They should offer dealers product and service training programs that would guide the entire dealerships in terms on continuous improvement.

2) Owners or managers should do research on quality and participation systems

3) They could also take up to 90 days for survey to be sent out, making the company look unresponsive and possibly leading to bias in the results.
4) Dealership should be convinced that they need change and move to a higher service model
5) Chrysler should seek improvements and customer expectations should be pushed upward by leaders in dealer service.

In conclusion, the purpose of this report is to examine some very important success factors of the total quality management. As mentioned in the above report there are some major quality problems and product redesign which Chrysler has to consider. Because it has problems such as the vehicle quality, service problems, defects despite quality claims and stylish new DaimlerChrysler Vehicles it has got really poor quality, premature Dodge, Chrysler engine, transmission, steering failures, fires, refusal to honour valid warranty claims. Increasing staff and customer participation, and adding common quality practices, Chrysler hopes to achieve successful continuous improvement within all Five Star dealerships. Chrysler's application of strategic measurement and involvement to service is unusual in both scale and in the attempt to raise quality among a diverse group of independently owned business. This shows that Chrysler knows that customer satisfaction is important therefore; should try and focus on their customers in order to achieve their customer’s satisfaction.

Work cited List

Graham, Alex. “Automotive News Europe.” 6 Apr. 2008. Business Source Premier. AUD Lib. 29 Nov. 2007

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Cover Letter and Resume

...Your Name Your Name August 1st, 2012 Michael Manley Chrysler Group P.O Box 3895 San Diego, CA 92173 Dear Mr. Manley: I am applying for your Multicultural Marketing position with the job number 996296 that was advertised on the career section of your website. I am 2 months away from receiving my Bachelor of Science degree from Cetys Universidad in Marketing Administration. With the knowledge and skills I have learned through my career, and my previous experience working in the marketing area has led me to believe that I am qualified to work in the Multicultural Marketing position. I have always had a strong interest in cars, but in the past 3 years I discovered the capabilities of 4x4 trucks and the thrill of going off road, that was when I became a Jeep Wrangler enthusiast. I have always liked the way the Jeep brand uses advertising to create a sense of attachment between people and their cars. I have previously worked in the Advertising and Market Research area on my University, and I strongly believe that the experience that I’ve obtained during the time that I worked for my school could be applied on the job position that you’re requesting. Since a lot of the work that I had to do was intended to be printed an also distributed, I had to be sure of not making any mistakes, and I believe that is an ability that Jeep Company seeks in their employees. Some of my advertising job qualified to be shown through the three campuses of Cetys Universidad, and that...

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