Question
A major South African furniture manufacturer, Creative Design (PTY) LTD, is concerned about its record relating to the high volume of customer returns on TV
A major South African furniture manufacturer, Creative Design (PTY) LTD, is concerned about its record relating to the high volume of customer returns on TV cabinets. A considerable amount of time is spent on repairs of items under warranty. Common complaints include that shelves are loose, doors are not closing, and the edges are loose. Most of the returns are from major chain stores. This is creating high levels of uncertainty. One of the major chain stores recently cancelled all their orders and threatened to close their account should this pattern of returns continue. Another frustration is the turnaround time of repairs: it takes 15 to 20 working days to repair a TV cabinet. The numerous problems identified include long lead times for raw materials, load shedding, the high rate of incomplete jobs, poor quality materials used to repair damages, non-conforming materials and incorrect parts received from suppliers. Further delays are caused by inexperienced artisans, high absenteeism and unspecified parts replaced, causing further returns and reworks. The chief operating officer of Creative Design (PTY) LTD has tasked you as the operations manager to design and implement a quality plan to solve the problems as the costs are escalating and customers are moving away from Creative Design (PTY) LTD popular brand. 2.1 Creative Design (PTY) LTD has a series of problems that need to be addressed. What is the required commitment of quality in all functions to establish quality and to achieve and improve the business performance? Examine how Creative Design can become effective by establishing quality to increase business performance? (6) 2.2 In dealing with Creative Design's customer returns and customer complaints, apply the Operation Requirement of the ISO 9001: 2015 standard specifically "release of products and services" and "control of non-conforming outputs. Explain how the high levels of uncertainty can be reduced by using this application? 2.3 In improving Creative Design PTY (LTD)'s customer complaints of poor-quality materials and non-conforming materials. Elaborate on how you would implement the designing [TURN OVER] 8 aspects of quality to meet customer requirements, cost, and production? (8) 2.4 Creative Design PTY (LTD) is struggling to retain its customers due to high levels of returns and reject factors. You have realised the organisation's internal dynamics require a larger process-based system to integrate customers and suppliers' interests. Justify how you as the Operations Manager would organise people for quality as part of your plan to solve the problems of the organisation? (8)
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