QUESTION 1 [40 MARKS]

Read the following caselet and answer the question that follows.

This question carries 40 marks. Maruapula Furnishers (PVT) LTD has been overwhelmed by customer complaints over substandard products which are over-pricing and late delivery of orders to customers. Customers have been threatening to boycott the companys products and petition the local Member of Parliament (MP) to approach the relevant authorities to close the company. As a response to the unbearable pressure from its key stakeholders (customers and potential customers), the Board of Directors has adopted new measures that stimulate the involvement of all departments in facilitating quality in the organisation. The Board has also made it a policy that every employee will be held accountable for poor quality in the organisation. All production processes will be checked thoroughly and will be certified by qualified and experienced quality auditors every morning before production commences. The Board has adopted a strategic view of quality. Procedures will be adopted to see to it that defects are prevented in the long term. Employees who will be found conducting inspections to establish defects after production will be penalised.

Question With the aid of a diagram, explain how Maruapula (PVT) LTD can apply the SEVEN elements of the Kaizen Cycle for Continuous Improvement to resolve the challenges of poor quality that confront it and facilitate TQM.