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Case Study: Total Quality: Management (TQM)

This case study examines how a large ready mix concrete producer implemented Total Quality Management (TQM) to address problems of escalating costs and declining customer service across its seven locations. The company first conducted a TQM readiness assessment and communicated the new vision to employees. A steering committee was formed and management was trained. Corrective action teams then focused on five critical TQM areas to improve trucking operations. This resulted in restored reputation as preferred supplier, increased flexibility, cost reduction initiatives of $600,000, and $300,000 in savings. TQM helped the company address productivity issues during an economic downturn in the construction industry.

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101 views3 pages

Case Study: Total Quality: Management (TQM)

This case study examines how a large ready mix concrete producer implemented Total Quality Management (TQM) to address problems of escalating costs and declining customer service across its seven locations. The company first conducted a TQM readiness assessment and communicated the new vision to employees. A steering committee was formed and management was trained. Corrective action teams then focused on five critical TQM areas to improve trucking operations. This resulted in restored reputation as preferred supplier, increased flexibility, cost reduction initiatives of $600,000, and $300,000 in savings. TQM helped the company address productivity issues during an economic downturn in the construction industry.

Uploaded by

elaine bertumen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Case Study : Total Quality

Management [TQM]

Submitted by:
Group 1
Mary Joy P. Pastor
Jessie Oraa

Submitted to:
Ma’am Anne Saboya
INTRODUCTION

Multi-location ready mix supplier companies face the twin problems of


escalating cost and eroding customer services. MLE was engaging to
support the President a he implemented his vision for the firm. This
reported the savings of $2 million to $3 million of the company.

Background

 The firm is one of the largest ready mix concrete producers in


the Mid-Atlantic region.
 Over 350 employees are spread over seven different locations
and four major divisions.
 Managers and employees were very loyal to the company.
 Had a “shirt sleeve style” typical of construction industry.

Productivity Problem
 Management team recognized the need to change the
productivity system.
 Increasingly aggressive competition.
 Expectationally low turnover by national regional standards.
 The prolonged recession in commercial and residential
construction had put the in vulnerable position.
The Process
 The first step was to perform TQM readiness assessment.
 The next step was to communicate the vision to every
employees in the company.
 The next step was to organize the steering committee and train
the management team.
Increase in Productivity

Corrective action team use each 5 critical areas in TQM to


generate the needed changes in their trucking operations:
 Customer focus
 Teamwork
 Problem solving
 Waste elimination
 Continuous improvement
Results

 Their premiere service reputation was restored and they became


the preferred supplier to many contractors.
 Gained much more flexibility and responsiveness.
 Over three months they generated cost reduction initiatives
worth $600,000 and implemented over $300,000 0f cost
savings.

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