Case Analysis - Tecsmart Electronics

TECSMART ELECTRONICS
Case Analysis
POINT OF VIEW
We are analyzing the case from the point
of view of the company’s CEO that desires to
pursue the Baldrige criteria in replacement of its
current philosophy which is Deming’s 14 points
BRIEF SUMMARY
TecSmart Electronics is an entity that 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, value. The
organization originally adopted Deming’s 14 Points
as guide process; although, the current CEO
decided to pursue Baldrige focus to identify
opportunities for improvement.
STATEMENT OF THE PROBLEM
In pursuit of performance excellence, how
can TecSmart Electronics implement / adapt
Baldrige focus for an effective application of
total quality management?
SITUATIONAL ANALYSIS
STRENGTHS SWOT ANALYSIS
TRAINING AND DEVELOPMENT
They trained most of the employees by sending them to Deming
seminars.
COLLABORATION AMONG TEAM MEMBERS
Senior leaders participate in the quarterly meetings with all the
employees to discuss company issues and answer questions
COMPREHENSIVE STRATEGIC PLANNING PROCESS
All key members of the supply chain network has been involved and
considered for constant improvement.
STRENGTHS SWOT ANALYSIS
ESTABLISHED PROCESSES ON QUALITY CONTROL
Six Sigma, Four Interim Reviews by Management on Product
Development, Statistical Processes Control, Escalation
Management, Process Improvement
MANAGEMENT SUPPORT AND COMMITMENT
THE COMPANY FOCUSES ON CUSTOMER

SATISFACTIONS
WEAKNESSES SWOT ANALYSIS
COMPLAINTS MANAGEMENT
Currently, all complaints are handled by the Vice President of
sales and are resolved within two days
RESISTANCE TO CHANGE
Employees might have a hard time adjusting and getting used to
the new philosophy which is the Baldrige focus.
OPPORTUNITIES SWOT ANALYSIS
SUPPLIERS INVOLVEMENT IN THE EARLY STAGE OF
PRODUCT DEVELOPMENT
Certified suppliers’ materials are already exempt from incoming
selection
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.
OPPORTUNITIES SWOT ANALYSIS
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.
EXTERNAL BENCHMARKING
TecSmart may also consider benchmarking its core processes across
the industry
THREATS SWOT ANALYSIS
EMERGING COMPETITORS
Other electronics manufacturing company
SALESPEOPLE ARE AUTHORIZED TO TRAVEL

WHENEVER THEY FEEL IT NECESSARY FOR
CUSTOMER SERVICE.
ALTERNATIVE COURSES OF ACTION
O Alternative Course #1 PROS:
1. Additional training would
enhance employees’
Add extra hours of understanding of the Baldrige
Focus
internal quality/service- 2. Since a new philosophy would
related training of the be applied, adding extra hours
of training would reduce the
employees with regards to employees’ confusion
concerning Baldrige
the adaptation of the CONS:
Baldrige Philosophy. 1. Additional hours of training
might be against the will of the
employees
2. It would be more expensive
O Alternative Course #2 PROS:
1. It can help improve the
Make the employees company since both of them
provides different sets of
become accustomed to the strengths.
Baldrige focus as well as the 2. Applying both can generate
good result for the company if
Deming's 14 points for the done appropriately
training of the employees CONS:
and the improvement of the 1. Employees will more likely be
confused with the addition of a
company new philosophy
2. It is time consuming and more
costly
O Alternative Course #3
PROS:
1. The Deming philosophy already proved
that it would bring success to the
Retain their former 2.
company
The quality of the Deming's 14 points had
philosophy which is the already been tried and tested by the
company as well as the employees since
Deming's 14 points
the said philosophy carried the company
into the 21st century
3. The flow of activities in the company will
run smoothly since the management
technique that will be implemented is still
the Deming’s 14 point, a philosophy
where the company’s employees are
very familiar.
CONS:
1. The company will not innovate
2. The employees will not grow as a flexible
company personnel
RECOMMENDATION
Proposed Course #2
Make the employees become accustomed to
the Baldrige focus as well as the Deming's 14
points for the training of the employees and
the improvement of the company
PROPOSED ACTION PLAN
Time Frame Responsibility
Activity
Start Completion Direct Support
Study both of the
philosophies and
Company Top
determine its strengths as Month 1 Month 2
Researchers management
well as the differences.
Find a training agency or

someone to conduct
Top Training
seminars to the employees Month 2 Month 4
management Agencies
regarding the two
philosophies.
Activity
Work out the costs for the Company

Top
training and find a way to Month 4 Month 5 Financial
management
minimize them. consultants
Notify the employees

Top
about the changes that will Month 6 Month 7 Employees
Management
be made.
Activity
Contact the training

agency or the persons to Top
Month 7 Month 8 Trainers
conduct seminars to the management
employees
Send the employees to the

Top
seminars of both Month 8 Month 12 Employees
Management
philosophies
Ensure if the employees

Top
improved by surveying Month 12 Month 13-14 Employees
Management
them regularly
CONTINGENCY PLAN
Proposed Course #3
Retain their former philosophy which is the
Deming's 14 points
ANSWERS TO DISCUSSION QUESTIONS
1. Discuss how the practices that TecSmart
identified supports Deming’s 14 Points.
1. “Create and publish to all  It is evident that TecSmart has
a focus on Quality, Service &
employees a statement of the Value. This is also reinforced
aims and purposes of the by making plans and
company or other organizations. disseminating it down the
The management must organization, wherein
demonstrate constantly their leadership team can focus on
commitment to this statement” three key values. By holding
quarterly communications
meeting, senior leaders can
reinforce their statement of
purpose.
2. “Learn the new philosophy, top  A dedication to learning is
shown in #3, #7, and #13. The
management and everybody” best way to learn is to teach
something, as the executives
do in #3. They are also
learning as they gather inputs
for the strategic planning
process in #7. Finally, in #13,
provision is made not only for
training, but learning through
the quality/service-related
training sessions.
3. “Understand ’he purpose of Inspection is not
Inspection, for improvement of explicitly addressed,
processes and reduction of cost.” but based on di,
which can involve
inspection, are
routinely made.
4. “End the practice of awarding a  The basis on which decisions
are made for purchasing
business on the basis of price tag parts and services is not
discussed. However, item
alone.” #18 states that suppliers are
involved in early stages of a
product development
program. That implies that
there is a close working
relationship between the
company and suppliers, and
that cost concerns are
discussed and worked out to
minimize quality issues.
5. “Improve Constantly and A process is in place to
forever the system of production train employees in a 5-
and service.” step problem solving
process, and new
processes are
documented and
variation in ongoing
processes is monitored for
corrective action.
6. “Institute Training”  As stated earlier, training and
learning seem to be built into
the company, such that
executives teaching courses
at TecSmart University.
Customer relationship training
is also required for all
employees. Also, provision is
made for 72 hours of training
on service/quality topics, and
sales, engineers, office staff,
and managers must all be
trained.
7. “Teach and Institute Leadership is evident in
Leadership.” objective-setting,
communication and
teaching, planning
complaint resolution, and
middle management
coaching.
8. “Drive Out Fear. Create trust. While driving out fear is not
Create a climate for innovation.” specifically addressed, it
seems likely that the
quarterly communication
sessions with top
management, employee
empowerment through self-
managed teams, and the
annual employee surveys
would do a great deal to
reduce or eliminate fear.
 Teams and staff have been
9. “Optimize toward the aims and organized as indicated by the
purposes of the company the following statements
 Senior leaders set company
efforts of teams, groups, and staff objectives and guide cross-
functional teams.
areas”  They also participate in
quarterly communications with
all the employees. They also
teach in TecSmart University.
 TecSmart sets six sigmas for
most of its processes
 All employees are trained in a
five-step problem-solving
process
10. “Eliminate Exhortations for the Goals are set and
workforce.” measurement processes
are used extensively, but
exhortations are never
mentioned.
11. “Eliminate numerical qoutas for Again, no mention is
production, instead learn and made of quotas or MBO.
institute methods for Understanding of the
improvement” need for improvement,
and to know the
characteristics of
processes abounds.
12. “Remove Barriers that rob “Hourly workers can make
people of pride of workmanship.” process changes with the
agreement of only one
person, and sales people
are authorized to travel
wherever they feel it
necessary for customer
service.”
13. “Encourage Education and Learning, training, and
self-improvement for everyone.” education seem to all be
inter-related at TecSmart.
Nothing was explicitly
stated about education,
however.
14. “Take Action and accomplish The company has taken
the transformation.” action to institute quality
on a number of fronts,
already. The greatest
transformation for this
company would be the
innovation from one to
philosophy to another.
2. How did these practices support the Baldrige criteria?
Specifically, identify which of the questions in the criteria
each of these practices address.
1. Leadership
Senior leaders guide cross functional teams
Senior leaders participate in quarterly communication meetings with
employees.
2. Strategic planning
Senior management set company objectives
Each department operates to serve company's objective
3. Customer and Market focus
 All employees received CRM Training.
 Customer satisfaction data is acquired from sales representatives.
 All complaints were handled by Vice president of sales
 Meetings were held with customers to identify requirements of their products
2. How did these practices support the Baldrige criteria?
Specifically, identify which of the questions in the
criteria each of these practices address.
4. Information and analysis
 Senior leaders guide cross functional teams
 Senior leaders participate in quarterly communication meetings with employees.
5. Human resource focus
 All employees were involved to discuss problems & issues
 All employees were trained for handling problems
6. Process management
 Company collects operational data in every dept to evaluate information
requirements
 Company has set Six sigma goals for its processes
 All employees trained in 5 step problem-solving process
3. What are some of the obvious opportunities for improvement relative
to Baldrige criteria? What actions would you recommend that
TecSmart do to improve its pursuit of performance excellence using
the Baldrige criteria?
TecSmart Electronics has so many “obvious” strengths.
However, strategic planning (Category 2) appears to be an
area where some improvement could take place. No mention is
made of how goals are set, benchmarks are chosen, or cycles
of improvement in the planning process take place. In pursuing
performance excellence through Baldrige criteria, all of the
categories must be practiced thoroughly by TecSmart
Electronics’ employees and the top management, since the
said philosophy is new to them. The company should also
perform a quarterly survey on how Baldrige Focus affects their
performance to asses

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TECSMART ELECTRONICS

THE COMPANY FOCUSES ON CUSTOMER

SALESPEOPLE ARE AUTHORIZED TO TRAVEL

Find a training agency or

Work out the costs for the Company

Notify the employees

Contact the training

Send the employees to the

Ensure if the employees

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