SQSM Full Assignmentdoc (1)

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Student Assignment Covering Form

Course/Unit Information

Course Postgraduate diplomaUnit No. Unit 11

Unit Name Strategic Quality and Systems Management

Unit code H/602/22!

Learning Outcomes and Assessment Feedback

LearningOutcomes

Assessment Criteria (AC)AssessorFeedback

LO 1 TAS 1

Understand the role of

‘operations

management’

in an organization

1.1 - explain the importance of effectiveoperations management in achieving

organizational objectives

1.2 - evaluate the success of existing

operations management processes in

meeting an organization’s overall

strategic management objectives

LO !

Understand the

importance of

‘managing quality’

in an organization

2.1 - explain the importance of effectivequality management in achieving

organizational objectives

2.2 - evaluate the success of existing

quality management processes in

meeting an organization’s overallstrategic management objectives

LO "

Be able to plan a

strategic quality

change in an

organization

3.1 - plan a strategic quality change toimprove organizational performance

3.2 - define resources, tools and systemsto support business processes in a

strategic quality change



3.3 - evaluate the !ider implications of planned strategic quality change in an

organization

3.4 design systems to monitor the

implementation of a strategic qualitychange in an organization

LO # Be able torespond tochanges in themarketingenvironment Be

able to implement a

strategic quality

change in anorganization

4.1 - implement a strategic quality

change in an organization"

4.2 - embed a quality culture in an

organization to ensure continuous

monitoring and development

4.3 - monitor the implementation of astrategic quality change in an

organization

LO $

Be able to evaluatethe outcomes of a

strategic quality

change in an#rganization

5.1 - evaluate the outcomes of a strategic

quality change in an organization

5.2 - $ecommend areas for improvement

to a strategic quality change that align!ith organizational objectives

Over A%% &esu%t/'rade

Internal Verifcation ReportInternal Verifcation Done By Date

Assignment BrieAssessors Decision

eneral uidance

• Be certain to correctly cite and reference all resources, using the %arvard

$eferencing &ystem"

• 'he report should be grammatically correct and !ord processed" (ages should be

numbered"

• Use ) 'imes *e! $oman script"

)



!trategic "uality and !ystems #anagement

$co%ers learning outcomes 1 & 2 '

+ou are required to choose an organization !hich can include multi-national, private, or

public government companies, to understand the role of ‘operations management’ in

the organization, as !ell as to understand the importance of ‘managing quality’ in the

organization" 'o ans!er the questions given belo!, choose the organization !here youare currently employed or choose any other organization of your choice !hich has

adequate operational management and quality system processes"

uestions.

1. /hat are the objectives of your chosen organization and explain the importance of

effective operations management in achieving those organizational objectives 0A(1.1) 1xplain the importance of effective operations management in achieving

organizational objectives'.

2. 1xplain the various operations management processes implemented in your chosenorganization and evaluate ho! they contribute to!ards meeting your

organization’s overall strategic objectives" $A( 1.2) 1valuate the success of

existing operations management processes in meeting an organization’s overallstrategic management objectives'.

3. 1xplain the various quality management initiatives implemented at your

organization and explain ho! they have contributed to achieve your organization’s

objectives" $A( 2.1) 1xplain the importance of effective quality management inachieving organizational objectives'.

4. 1valuate the success of quality management processes and systems practiced in

your organization in meeting the overall strategic objectives in your organization2

$A( 2.2) 1valuate the success of existing quality management processes in

meeting an organization’s overall strategic management objectives'.

3



$co%ers learning outcomes 3* 4 & 5'

(ase !tudy) (+ery #otor (o.

,ackground

4hery 5otor 4o" !as founded in 667 in the underdeveloped 4hinese province of /uhu,largely to support the local economy" 8n 666, automobile production began using &19'

'oledo chassis, though 4hery’s lac: of proper licensing prohibited it from selling

automobiles outside of the province" 'he purchase of );< o!nership by &hanghai9utomotive 8ndustry 9ssociation in );; allo!ed the small firm to utilize the &984 retail

license, thus beginning the rapid expansion of the small 4hinese auto ma:er"

4hery’s first car exports !ere to &yria in );;, ma:ing the company the first to exportcars from the mainland" 'he company also began efforts to improve production quality

and technology by founding a research institute" 4hery hired a number of =apaneseautomotive consultants to assist the auto company in achieving the six sigma lean

process standard to her =apanese/estern competitors" 'hese efforts yielded almostimmediate results, !ith 4hery being granted 8&#'& >6?6.);;) production quality by

);;@A the strictest international production quality certification available"

'o improve aesthetic design, 4hery turned to Bertone and (ininfarina of 8taly, the fableddesign consultants to errari and Camborghini" 8n addition, 4hery contracted !ith 9DC of

9ustria to assist in the production of E ne! engine models for integration into ne!

models"

-ecord ,reaking -esults

&ales and exports follo!ed, buoyed by tax brea:s and burgeoning domestic demand"

'otal automobile sales rose from a meager ),;;; units in );;; to 3;@,;;; in );;>,ma:ing it the 3rd largest domestic auto company" oreign exports accounted for nearly

@;,;;; units, representing a 7E< increase from the year prior" #ther estimates suggested

similar gro!th rates for );;7"'o meet gro!ing sales, 4hery has invested in a variety of domestic and overseas

production facilities" 8n );;3, 4hery 5otor 4o" became the first 4hinese company to

open a foreign production facility !hen it began manufacturing several models in 8ran"&imilar plants opened in $ussia in );;@ and 5alaysia in );;>" (rimary importing

countries included $ussia, 1gypt, and other developing mar:ets"

(+inese Auto ndustry

'he successes of 4hery 5otor 4o ride on the !ave of general gro!th in the 4hinese auto

industry" 'otal 4hinese auto exports rose to 3?;,;;;, nearly t!ice the sales results of the

previous year" 5uch of this gro!th can be attributed to Beijing, !hich has set goals tohelp the domestic auto and auto parts export industry gro! from ;"7< of FG( to nearly

;< over the next ten years"

%o!ever, many analysts have suggested that the recent surge in exports and exportmindedness is at least in part attributable to overcapacity in the domestic 4hinese mar:et"

?

http://en.wikipedia.org/wiki/ISO_9000#Industry-specific_interpretations

http://en.wikipedia.org/wiki/Bertone

http://en.wikipedia.org/wiki/Pininfarina

http://en.wikipedia.org/wiki/ISO_9000#Industry-specific_interpretations

http://en.wikipedia.org/wiki/Bertone

http://en.wikipedia.org/wiki/Pininfarina



9ccording to the *ational Gevelopment and $eform 4ommission, demand came to just

7"@< of capacity in );;>" #ther reports indicate that 4hinese companies facerestrictions to building additional manufacturing plants unless certain capacity utilization

levels are met" &uch measures have only further incentivized the need to expand and

gro! exporting activities"

,arriers to ro/t+

'he expansion goals of 4hery 5otor 4o" and much of the 4hinese auto industry have been challenged by the quality issues facing auto exports from 4hina" 9 crash test

conducted by ="G" (o!er and 9ssociates in early );;7 yielded poor results for a variety

of 4hinese automa:ers, compounded general consumer concern !ith the quality and

safety of 4hinese automobiles" 1xperts such as *ic: $eilly, head of F5Hs operations inthe 9sia-(acific region, have commented on the logistical, servicing, and reverse duties

issues that !ould also plague 4hinese imports to *orth 9merica" ) Iey to successful

entry !ould also be an integrated dealership net!or:, a barrier that has proved pivotal to

entrants in times past"

$egarding foreign expansion, 4hery (resident +in 'ongyau said, J*orth 9merica

and 1urope have very tough and demanding safety and emission la!s that our

vehicles do not respect yet,K +in said"3 K/e need time"K 9ccording to +in andothers, 4hery’s expansion !ill come in stages" 4urrent exports are focused on the

emerging mar:ets of the 5iddle 1ast, Catin 9merica, and others" 8mproved quality

!ill also come by utilizing foreign firms as sources of necessary parts" Iey partnerships also offer the resources and expertise to improve manufacturing quality"

Figure 1) (+ery -esults

4hina 4ar 8ndustryHs 1xport 9mbitions, Business!ee:" 5ay 3rd, );;7

) 4ars from 4hina. *ot so fast" ortune" =an" )7th );;7

3 “DATELINE”,Turin, Italy. 2007

@



igure ). 4hina’s (roduction Cevels

8nternational 5otor Dehicle (rogram, 58'" 5ay >, );;@

>



Figure 3) 0rices or (+ery Automobiles and (omparables

Figure 4) (+ery 0roduct e%elopment Liecycle

&ource. The Growth of Independent Chinese Automotive Companies, 58'" );;>

7



igure @. (rofile of 4hery 9utomobile 4o", Ctd

4hery 9utomobile 4o", Ctd" !as founded by five 9nhui’s local state-o!ned investment

companies !ith a registered capital of $5B "7@) billion in 667, the construction of !hich commenced on 5arch E, 667" 8n );;>, it accomplished a sales volume of

3;@,);;, an increase of >)< over the same period of the previous year, and had a share of

7")< of the 4hinese car mar:et, ran:ing ?th in the 4hinese passenger car industry, thussho!ing its great strength in marching into the first camp of the 4hinese car industry

having been long monopolized by 4hinese-foreign jointly-funded brands and ta:ing a

commanding lead among independently managed car enterprises"

&ince its products entered the mar:et, 4hery has attached great importance to developingthe international and domestic mar:ets, guided by the principle of Jstabilizing through

the domestic mar:et, strengthening through the overseas mar:et and developing the

domestic mar:et through the oversea mar:et in a flexible !ayL and !ith the strategy of Jgoing outL, it became 4hina’s first car enterprise exporting complete vehicles, 4IG,

engines and vehicle manufacture technology and equipment to foreign countries" &o far,

E

http://www.cheryglobal.com/about_chery.jsp

http://www.cheryglobal.com/about_chery.jsp



it has exported products to over @; countries and regions in the !orld !ith its car export

volume ran:ing st for four years in a ro! in 4hina"

4hery no! o!ns a full set of manufacturing and $ M G systems, including t!o car

plants, t!o engine plants, a gearbox plant, an automobile engineering research instituteand an automobile planning and design institute" 8t has so far a total staff of )3,;;;, total

assets of $5B over )) billion and an annual production capacity of >@;,;;; completevehicles, ?;;,;;; engines and 3;;,;;; sets of gearboxes" 8ts current products include ten

series 01astar, 4o!in, 'iggo3, 9@, D@, 3, >, Iarry, $iich ) and 9N of complete

vehicles and their auxiliary engines, gearboxes and :ey parts and components" By the endof this year, 4hery !ill become one of the passenger car manufacturers offering most

varieties of products and most complete product series to the mar:et in 4hina"

9s early as at the beginning of its products’ entry into the mar:et, 4hery has established

the permanent aim of Jcustomer satisfactionL and the quality principle of offeringcustomers !ith zero-defect products and considerate service as the persistent objective of

each employee, and successfully passed 8; 8nternational uality &ystem

4ertification in ebruary );;" 9lso in #ctober );;), it too: the initiative in passing

6



8&#'&>6?6 uality 5anagement &ystem 4ertification of Fermany 'UD" 'he

unremitting control of quality made all 4hery cars conform to 4hinese national standardsin the surprise inspection of the &tate Bureau of 'echnical &upervision of 4hina, most of

!hich !ere even superior to the national standards"

'hrough years of continuous improvement, 4hery’s brand and corporate image has lifted

rapidly" 8n #ctober );;>, J4%1$+L !as ac:no!ledged as one of the 4hinese famoustrademar:s by the &tate 9dministration of 8ndustry and 4ommerce of 4hina" 8n

*ovember of the same year, 4hery !as honored as the th most favorable 4hinese

companies by ortune 5agazine, becoming the only 4hinese car manufacturer ran:ing

top )@ in the list"

&ource. http.!!!"cheryglobal"comaboutOchery"jsp

;



Figure ) (ompany imeline

#ilestones

5ar" 667 'he ground-brea:ing ceremony of 4hery *o" 1ngine plant mar:s the beginning of 4hery 9utomobile 4o", Ctd"

5ay 666 4hery’s first engine rolled off the production line 0494?E;N"

Gec" 666 'he first 4hery car came off the production line"

#ct" );; 'he first batch of 4hery cars !ere exported to &yria"

eb" );;3 4hery singed a 4IG agreement of producing 4hery cars in 8ran !ith8ranian &I' Froup"

#ct" );;? 4hery and 1gyptian 48F Froup held a grand launch ceremony in 4airo

for 4hery model and ul!in model"

*ov" );;? 4hery signed a cooperative agreement !ith 5alaysian 9C9G# 4ompany

9ug" );;@ 4hery signed an agreement of intent !ith an U:rainian company of aiming to conduct 4hery 4IG project in U:raine"

#ct" );;@ 4hery 94'14# series engines are released in 4hina"

Gec" );;@ 4hery set up a subsidiary company in $ussia, !hich !as the first one

overseas"

=an" );;> 'he agreement of &IG project on manufacturing 4hery cars in $ussia!as concluded !ith $ussian 9vtotor Froup"

5ar" );;> 'he agreement of 4IG project on manufacturing 4hery cars in 8ndonesia

!as signed !ith 8ndonesian 8ndomobile Froup"9pril );;> 'he first 4hery car produced by &IG assemblage in $ussia came off the

production line in Ialiningrad, $ussia"

9pril );;> 4hery cars !ere launched in 5osco!, $ussia"

=une );;> 'he official agreement of &IG project on producing 4hery cars in

U:raine !as signed !ith 4hery’s counterpart from U:raine"

=une );;> 4hery signed an agreement !ith 5ermerler Froup on selling 4hery carsto 'ur:ey"

9ug" );;> 'he first 4hery car produced by 4IG in 8ndonesia come off the

production line"

*ov" );;> iat Froup signed an agreement !ith 4hery of annually purchasing;;,;;; units of 94'14# engine"

5ar" );;7 'he E;;,;;;th 4hery car come off the assemble line"

5ar" );;7 'he contract signing ceremony bet!een 4hery 9utomobile 4o", Ctd" and

&#459, 9rgentina !as held in Beijing"

5ar" );;7 4hery became the champion in monthly sales !ith its monthly sales of

http://www.cheryglobal.com/about_chery.jsp?columnId=11736915090001

http://www.cheryglobal.com/about_chery.jsp?columnId=11736915090001



??,@>E units of cars"

=uly );;7 4hery and 4hrysler finalized cooperative agreement in Giaoyutai &tateFuesthouse, Beijing, 4hina"

9ug" );;7 4hery and iat reached a 5emorandum of Understanding to establish a joint venture for 5anufacturing passenger vehicles"

9ug" );;7 4hery, 8ran Ihodro and 4anada &olitac enter into an agreement of jointventure"

9ug" );;7 'he ,;;;,;;;th car of 4hery rolled off the assembly line, !ith the birth

of 4heryHs ne! model---93"

9ug" );;7 9long !ith the launching ceremony held in &antiago, 4hery products

!ere launched in 4hile"

&ource. http.!!!"cheryglobal"comaboutOchery"jsp2column8dP73>6@;6;;;

A 0artners+ip /it+ (+rysler

+in 'ongyau and 4hery 5otors sa! their fortunes improve in );;7 as 4hrysler began to

see the benefit of a strategic partnership !ith the young 4hinese automa:er" Ci:e the

other Getroit automa:ers, 4hrysler had struggled to compete !ith the lo! cost compactcars gaining popularity !ith rising oil prices" 9nalysts had also suggested a move to

4hinese manufacturing !ould help leverage corporate negotiators as they sought to deal

!ith U9/ pension negations"8n partnering !ith 4hery, 4hrysler gained access to cost-effective production of B-type

vehiclesA the li:e of !hich !ould compete !ith the 'oyota +aris and %onda it for sale in

the *orth 9merican and 1uropean mar:ets" U"&" &ales in this segment had surged @6< in

);;> to 3?,))@ units, largely reflecting the increase in petrol prices"4hery has suggested that co-production !ith 4hrysler !ill li:ely begin !ith the 9, a

compact car that !ill be sold in Catin 9merica around );;" 9utomobiles meant to enter

the U"&" mar:et are li:ely to enter sometime after that"'he deal is hardly one-sided, !ith 4hery receiving access to the technical and design

expertise of the !ell-oiled Getroit automa:er" 8n addition, the deal !ill lead to the

integration of 4hery made automobiles !ith the intensive 4hrysler dealership andservicing net!or: in *orth 9merica" #ne fact is certain, both companies see this

opportunity as necessary to accelerating to!ards future gro!th in an increasingly

globalized auto industry"

"uestions)

1. %o! did 4hery 5otor 4o" device a strategic quality change process to improve the

organizational performance to compete !ith the leading global competitors2

$A.(.3.1) 0lan a strategic quality c+ange to impro%e organiational

perormance'.

)



2. 1valuate the !ider implications of the planned strategic quality change

intervention by 4hery 5otor 4o" $A.(.3.3) 6%aluate t+e /ider implications o

planned strategic quality c+ange in an organiation'.

3. 8dentify the systems, designed by 4hery 5otor and 4o" to monitor the

implementation of a strategic quality change in an organization $A.(. 3.4) esign

systems to monitor t+e implementation o a strategic quality c+ange in an

organiation'

4. %o! can quality tools li:e (o:a +o:e and @-& be used to support and improve the business in the strategic quality change process" $A( 3.2) eine resources*

tools and systems to support business processes in a strategic quality c+ange'.

5. 1xplain ho! strategic quality change can be implemented at 4hery 5otor 4o" tocompete !ith one of the leading global competitors 0of your choiceN and evaluate

ho! this implementation process can be monitored" 9lso propose a quality culture

that can be embedded at 4hery 5otor to ensure continuous monitoring anddevelopment" $A( 4.1) mplement a strategic quality c+ange in an

organiation.'* $A( 4.2) 6mbed a quality culture in an organiation to ensure

continuous monitoring and de%elopment' & $A.(.4.3) #onitor t+e

implementation o a strategic quality c+ange in an organiation'.

. 1valuate the outcomes of a strategic quality change at 4hery 5otor 4o" andrecommend areas for improvement to align the change process !ith

organizational objectives" $A( 5.1) 6%aluate t+e outcomes o a strategic quality

c+ange in an organiation' & $A.(. 5.2) -ecommend areas or impro%ement

to a strategic quality c+ange t+at align /it+ organiational ob7ecti%es'.

3

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