Quality & Performance Excellence 6th Edition by James Evans

Exercise 8

Clifton Metal Works
Clifton Metal Works (CMW} was founded in the mid-1940s by Donald Claimer in a 3,000-square-foot building with nine people as a small family business to produce custom-machined pans. In the 1960s, as business grew, the company expanded its facilities and its capability to develop its own tooling patterns, eventually moving into a 40,000-square-foot building.
However, as technology advanced, small family businesses like CMW met stiff competition. To survive, the company knew it had to listen more to its customers. From surveys and focus groups, the firm discovered that customers were nor happy with the quality of the products they had been receiving. In 1985, CMW made a commitment to quality by hiring a quality assurance manager, Paul Levitt. Driven by the Deming philosophy, the company developed a variety of quality approaches and eventually became ISO 9000 certified in 1998. CMW made some substantial improvements in the quality of its products, particularly reducing scrap and reject rates. Paul worked closely with the factory workers directly responsible for the products, asking them what they needed to get the job done and ensuring management commitment to provide the necessary resources. For example, CMW invested in computer-based statistical process control technology, which enabled workers to monitor their processes and adjust them as needed. The success of this project led the company to empower employees to control many other aspects of the system.
Business remained steady, but after hearing prose cations from some Baldrige recipients, Chalmer teak, that a lot more could be done. In 2005, he hired senior executive for performance excellence, Jam Hubbard. Hubbard saw an opportunity to change the company's culture and introduce many Baldrige prime pies he had learned in his previous job at a manufacturing firm that had applied the Baldrige criteria for mar years. One of the first things he did was to review the current mission statement, which had remained relatively untouched since 1985:
Our mission at CMW is to improve the return on investment. We can accomplish this by changing an. Ludes and incorporating a quality/team environment This will improve the quality of our products, enhance our productivity (which in turn will allow us to quote competitive prices), and elevate our service and response level to our customers. There are several factor which make positive change imperative.
The standards for competitive levels of quality and service are becoming more demanding. The emergence of the "World Market" has brought on new challenges. We are in a low-growth, mature market. In order for CMW to improve return on investment, we must develop a strategy to improve quality and responsiveness in all areas of the company. We need to have all employees recognize the importance of product quality and service and move toward more favorable pricing. We need to change thinking throughout the organization to get employees involved, to encourage teamwork, to develop a more flexible workforce and adaptable organization. We need to instill pride in the workplace and the product.
We believe that we can best achieve the desired future state by study of and adherence to the teachings of W. Edwards Deming.
Hubbard did not feel that this mission statement provided a clear and vivid direction, especially in the twenty-first century. Consequently, he set up a planning retreat for senior management (including Chalmerl to develop a new strategic vision.
Discussion Questions
Comment on the current mission statement. Does it provide the strategic direction necessary for success for this company