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Question: tal quality esign pro ny compa e initiatives quality profiles...

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tal quality esign, pro ny compa- e initiatives QUALITY PROFILES AMERICAN ELECTRIC POWER AND PALS SUDDEN SERVICE The Conesville, Ohio, plant of American Electric A privately owned, quick-service restaurant Power (AEP) was a recipient of Ohios Gov- chain, Pals Sudden Service, serves hamburgers, ernors Award for Excellence, the state equivalent hot dogs, chipped ham, chicken, French fries of the Baldrige Award, in 2001. The plant is one of and beverages as well as breakfast biscuits with the largest in Ohio and one of the most complex in country ham, sausage, and gravy to primarily the United States. The plants difficult journey to drive-through customers at 17 locations, all performance excellence began with a major reor within 60 miles of Kingsport, Tennessee. The st competitors by offering competitively 1995, amidst a tense and emotional atmosphere, priced food of consistently high quality, deliv new leaders outlined a mission, vision, and goals ered rapidly, cheerfully, and without error. The for the first time, making trust and caring the companys Business Excellence Process is the key principal core values. The old culture that was integrating element, a management approach to characterized by a conservative, top-down lead- ensuring that customer requirements are met in functional silos, an adversarial every transaction, today and in the future. Car- and a highly political ried out under the leadership of Pals two top executives and its 17 store owner/operators, the irness prac- nizationa cing page). e previous 3 a sustain- ganization when the plant was forced to cut 25 percent of its workforce. In a two-day meeting in company aims to distinguish itself from fa food ementation unionized workforce atmosphere, had to be dismantled A leadership team, which included union rep- Business Excellence Process spans all facets of the resentatives, was established, new employee operation from strategic planning (done annu development programs were created in an atmos ally with two-year horizons) to online quality phere of empowerment and learning, all with a control. Every component process, including new focus on external and internal customers. those for continual improvement and product The cultúral changes included an employee introduction, is interactively linked, producing developed behavior-based safety program, data that directly or indirectly inform the others. weekly newsletters, systems thinking, opening In customer satisfaction, including food quality the books to all, improved manager communica service, and order accuracy, Pals is outper- tions, and solving problems internally rather than forming its primary competitor. Pals order escalating grievances. In a few short years, the handout speed improved more than 30 percent plant received the AFL-CIO National Labor-Man since 1995, decreasing from 31 seconds to 20 sec- agement Award, grievances fell from 37 to zero, onds, almost four times faster than its top com- and it received national recognition for its school- petitor. Errors in orders are rare, averaging less to-work program. Coupled with a new perfor than one for every 2,000 transactions.-In addit mance management program, a balanced Pals consistently receives the highest health scorecard, and a process-focused management inspection scores in its market and in the entire approach, the plant achieved record high produc- state of Tennessee. tions, a more than 100 percent increase in employee productivity, a 45 percent reduction in Sourgesr Ohio Award for Excallence Govemors Award Winnar operation and maintenance costs, and greater Proisonners, National Institute of Standards and Tech than $5 million in process improvement savings. nolagy, Department of Commence epre and Wain- ange more uickly and in gaining ing a crisis. Unfortu h foresight ting market ture a crisis presentstion, and the Malcolm Baldrige National Quality Awand, rsuing TO
HWII Read the quality profile about American Electric Power (AEP) provide on the web site. Relative to question sets one and two and framework three on how an organization can achieve QM, QA, QD, Qconf, Qcont, and thus goal congruency stakeholder centrism and a culture of continuous improvement implementation answer the following questions. 1) what was their belief regarding employees from Douglas McGregors perspective, 2) what do you feel AEP was doing wrong before their transformation, 3) what do you feel they changed to accomplish the transformation, and 4) how do you feel they implemented those changes.
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