COURSE: TOTAL QUALITY MANAGEMENT

COURSE CODE: 20MBA23

Case Analysis Book

Name of the Student: Pavankumar Hegde

USN: 1DS21BA060

Faculty In charge:
Prof. Ganesha K S,
Assistant Professor,
Department of Management studies, DSCE
 UNIT 2

Case 4: Romeo Engine Plant

1. What were the main objectives of the Romeo Engine Plant’s manufacturing strategy?

* Highest quality
* Competitive cost
* Product should be able to meet most customer requirements.
* Build human resource competency in engine design and manufacturing.
According to the Mission and Operating Philosophy of the Romeo Engine Plant (REP)
Manufacturing Handbook of August 1989, “The Purpose of the Romeo Engine Plant is
to produce the highest quality production engines in the world that meet all of our
customers' requirements at a cost lower than the competition, and to develop teams of
employees who are the best engine builders in the world.” Ford seemed to continue to
use REP with the same objectives; only to market their brand instead of REP’s.
During 1992, REP produced 400,000 engines in two engine models: a 4.6 liter, 2 valve
engine used in the Lincoln Town Car, Ford Crown Victoria, and Mercury Grand
Marquis, and a 4.6 liter, 4 valve engine used in Ford Motor Company's Lincoln Mark
VIII luxury car. Sales of these automobiles for Ford were strong and Ford Motor
Company would continually introduce new car models that would use the Romeo
engines; so REP was to be Ford’s captive supplier. By 1996 REP expected to produce
more than 800,000 engines per year.

2. What specific initiatives did the management of Romeo implement to achieve these
objectives?

* Creating work teams to handle different functions like product managemtn , engineering,
manufacturing and quality systems.
* Implementing zero defect policy for cost reduction and improvisation of vendors
manufacturing quality.
* Implementing engine exchange program.
* Implementation of information systems (MMS) * Checkbook system * Weekly meetings
3. What management control and feedback systems was in-place at Romeo. How did these
management control systems assist with the implementation of Romeo’s overall
manufacturing strategy?

* Belief system, all managers are made to understand core values of better quality at
minimum cost and complete satisfaction.

* Diagnostic control systems like management information system/ checkbook and

labour management system commands total control over costs

* Diagnostic control systems like zero defect policy and engine exchange program
helps to build a commitment towards diagnosis of actual problems and remove bottlenecks.

4. Evaluate the strengths and weaknesses of the Romeo Engine Plant’s Total Quality
Management (TQM) implementation. What, if any, improvements would you suggest?

Strengths * Responsibility and ownership by managers. * Cost effective production. *

Quality output * Maximum utilization of resources * Collective learning and problem
solving attitude. * Effective use of manager’s time.

Weaknesses: * May result in strained relationships with vendor.

5 What are the challenges in implementing change management processes?

According to authorlist Change management
efforts are absolutely essential for the surviving and thriving of the organization but they
are also extremely difficult to implement. Some of the biggest obstacles in implementing
change efforts are –

Change efforts create an environment of uncertainty in the organization that impacts not
only the productivity in the organization but also the level of trust in the organization.

Thank You