Mindanao State University

Graduate School

Masters in Business Management

BA 242 Total Quality Management

TECSMART CASE ANALYSIS

Submitted to:

Dr. Aurea Pascual

By:

Wilson B. De La Cuadra

Napoleon M. Belleza Jr.

February 20, 2016

I. BRIEF SUMMARY
TecSmart is an entity that designs, manufactures and repairs electronic

power supplies. The management team started its quality journey following

on Deming's 14 point principle to guide the processes of the organization.

However, the current CEO decided to pursue Baldrige focus and began to

process assessment on all criteria.

Today most managers agree that the main reason to pursue quality is to

satisfy customers and performance excellence in the delivery of ever

improving value to customers and stakeholders and improvement of overall

organizations effectiveness and capabilities.

The researchers (Group 2) seek to help the Tecsmart find out the

following: (1) the performance of the company while using the Demings 14

point; (2) the opportunities for improvement relating to the companys

implementation of Baldrige Criteria; All such analyses lead the researchers to

the following alternative solutions: (1) make an extensive training for

implementation of Baldrige criteria; (2) adapt both Demings 14 points and

Baldrige criteria; and (3) retain the Demings 14 points.

With thorough assessment, the researchers (Group 2) recommend the

use of option 2, which seems to be optimum in terms of benefits and

feasibility. Such promotes continuous improvement and will not create

disruptions on the process if implemented properly. In lieu of the said choice,

retaining of Demings 14 points may be considered.

II. STATEMENT OF THE PROBLEM

This study aims to analyze the impact of Demings 14 points and

Baldrige system to Tecsmart Electronics to improve its pursuit of

performance excellence; to ultimately answer the question: How can

Tecsmart Electronics further improve its pursuit of performance excellence?

III. SITUATIONAL ANALYSIS

In order to have full grasp of the company, let us first identify the

companys strengths. Below are the strengths of Techsmart Electronics.

1. Senior leaders set company objectives and guide cross-functional

teams to review and develop individual plans for presentation to

employees.
2. Senior leaders participate in quarterly communication meetings with

all employees to discuss company issues and answer questions.

3. Senior leaders teach courses in TecSmart University on change

management, customer service, quality and leadership

4. The company collects operational data in every department and

evaluates its information.

5. TecSmart sets Six Sigma goals for most of its processes and converted

process measurements to parts per million on all product lines.

6. All employees are trained in a five-step problem solving process based

on defining problems, collecting data, analyzing the cause of the

problem, developing a solution and implementing change.

7. Inputs to the strategic planning process include customer feedback,

market research and benchmarking information from customers,

suppliers, competitors and industry leaders.

8. TecSmart uses more than a dozen different processes to gather

customer information.
9. All employees receive customer relationship training.
10. All complaints are handled by the vice president of sales and

resolved within 2 days.

11. Customer satisfaction data are acquired from sales

representatives, executive phone calls, visits and satisfaction surveys.

12. TecSmart uses self-managed work groups in which employees

make most day-to-day decisions while managers focus on coaching

and process improvement.

13. The average employee receives 72 hours of internal

quality/service-related training.
14. Employees are surveyed each year to gauge how effectively the

company implemented Deming's 14 Points.

15. Cross-functional teams guide product development which

includes reviews by executive management.

16. New product introduction teams work with design engineers and

customers to ensure that design requirements are met during

manufacturing and testing.

17. Quality is assessed through internal audits, employee opinion

surveys and customer feedback.

18. Suppliers are involved in early stages of a product development

program.
To know if how the companys actions and performance aligned to Demings

14 points and Baldriges criteria, the group put it in a tabulated form to

evaluate.

DEMINGS 14 STRENGHTS Baldriges Criteria STRENGHTS

POINTS Supported Supported

1.Constancy of 1 and 2 1.Leadership 1,2,3 and 7

Purpose
2.Learn the new 3,7 and 13 2. Strategic 1 and 7

Philosophy Planning
3.Understand 4,5, 6 and 8 3. Customer and 8,9,10,11 and 16

Inspection Market Focus

4.End Price Tag 18 4. Measurement, 4,5,7,8 and 11

Decision Analysis and

Knowledge

Management
5.Improve 6 and 16 5. Human 1,6,9 and 12

Constantly Resource Focus

6.Institute Training 3, 9 and 13 6. Process 4,8 and 16

Management
7.Teach and 2, 3, 7 and 12 7. Business 2,3,4,7 and 17

Institute Results

Leadership
8.Drive Out Fear 2, 12 and 14

and Innovate
9. Optimize the 7,12,15,16,17

efforts of Team
10. Eliminate 5,8 and 11

Exhortations
11. Eliminate

Quotas
12. Remove 12

Barriers
13. Encourage 13

Education and

Learning
14. Take Action All

Current companys strengths are aligned with both Demings 14 points and

Baldrige criteria as shown in the table.

IV. ALTERNATIVE COURSES OF ACTION

The table that follows presents strategies to improve the Tecsmart

Electronics pursuits of performance excellence.

COURSES OF
ADVANTAGE DISADVANTAGE
ACTION
OPTION 1: Enhancement of Additional Training
Extensive Training employees is expensive
for understanding of Time Consuming
implementation of Baldrige.
Baldriges criteria Lessen confusion and
resistance to Baldrige
OPTION 2: Can generate good Can create confusion
Adapt both the results for the company to employees
Philosophies of Transition is minimal More Costly
Deming and
Baldrige.
OPTION 3: Employees are already Employees will not
Retain the accustomed to it be flexible and grow
Demings 14 No transition needed Can loss its
points competitive
Flow of activity will run
 smoothly advantage by not
innovating.

V. RECOMMENDATION

The researchers (Group 2) recommend the use of option 2 which is

adapt both Deming and Baldrige. Among the alternatives, this option seemed

to be the most beneficial and practical. TecSmart is already known for its

good quality products as well as improving relationship internally. The current

CEO wants the company to be accustomed to Baldriges system but they

cannot easily replace the current Deming 14 points they are using now, the

sudden change would likely confuse the employees which may result to

process interruptions and can be hindrance to effectiveness. For these

reason the group suggests to adapt both since both provides different

strengths that can help improve the company.

VI. IMPLEMENTATION PLAN

The approach can be implemented with ease, following the standard

steps as follow:

Research and Study. Begin by studying both philosophies and

determine its strengths as well as its differences.

Training. Find a training agency for both philosophies. Set up Budget

for the training and start training all the personnel involved.
Implement. Implement both philosophies. Document changes made

during the actual implementation.

 Evaluate. Conduct system reviews regularly and evaluate the data

collected. Check how closely the results match the goals of the

company.
Adjust. If the results are successful, standardize the new method. If

the results are unsuccessful, revise the plan and repeat the process or

cease the approach.

VII. CONTINGENCY PLAN

In the event that Option 2 would not be feasible, it is recommended to

proceed with Option 3. Option 1 may be more desirable to the current CEO

but it was not yet proven and tested that it will work on the TecSmart

Electronics. While option 3 has been proven and tested in making the

company known for its good quality products and internal improvements.
CASE CONTENTS:

I- BRIEF SUMMARY
II- STATEMENT OF THE PROBLEM
III- SITUATIONAL ANALYSES
IV- ALTERNATIVE COURSES OF ACTION
V- RECOMMENDATION
VI- IMPLEMENTATION PLAN
VII- CONTINGENCY PLAN