Purpose Defective parts in manufacturing is a serious issue faced by every manufacturer. Even after proper care in design, material selection and manufacturing of product, there exists a defective part. The purpose of this paper is to explore the quality of the manufacturing, and find the use of effective quality tools to reduce the part defect rate in an electrical parts manufacturing unit, thereby, reducing the replaced cost of defective parts. Design/methodology/approach With the help of quality initiatives, like total quality management (TQM) and Lean Six Sigma (LSS), the firms can produce quality product in each stage of production. The paper focuses on the primary data collected from the XYZ electric manufacturer. Findings The main finding of this case analysis is that by the effective use of quality tools, the defective part return rate can be reduced, because of which the firm can observe reduction in replaced cost of almost INR24 lakh. In addition, 10A switch part contributes more in replacement cost. Further, it adds to the 35 percent of the overall part rejection. Research limitations/implications The study is more focused on particular type of switch product and can extend to other types of products. In addition, the analysis reveals the results of only 88 percent of the defective products. Practical implications The study provides results of the improved quality by effective use of quality tools and discusses the different types of defects in the electrical parts manufacturing. Introducing TQM and LSS to manufacturing can reduce the customer return rate to 1,300 parts per million (PPM) and even to 1,000 PPM in future. Originality/value The paper discusses the quality issues in the electrical manufacturer. Moreover, the case analysis briefs effective ways to improve the product quality and reduce the rejection rate.
Business Process Reengineering (BPR) is a managerial tool used for bringing in drastic performance improvements in organizations. Towards this advanced techniques like Business Process Management (BPM) and Knowledge Management are employed the world over. In India, many Public Sector Undertakings (PSUs) were recently closed down and still more are on the verge of closure due to various reasons. Despite the utility of BPR in improving performance, Indian PSUs are yet to effectively use this tool. Data pertaining to 41 State PSUs (SPSUs) and two Central PSUs (CPSUs) in the State of Kerala were considered for the present study. The performance for the last 12 years and the factors responsible for poor performance were analyzed. The performance of most of the PSUs analyzed was found to be below satisfactory levels. This suggests the need for employing scientific tools like BPR to bring in drastic performance improvement. The study identified 12 factors that could contribute towards drastic performance improvement. An average improvement of 57.5 per cent was found to be possible in each of the 12 factors identified. The findings of the study have significant bearing on poorly performing PSUs in a developing country like India. The study also contributes substantially towards theory building, since it has identified certain additional factors of performance improvement.
The present study makes an assessment of the readiness/resistance to change of employees of State Public Sector Undertakings (SPSUs), compares readiness between executives and workers of SPSUs, employees of SPSUs and Central Public Sector Undertakings (CPSUs), and between employees of Public Sector Undertakings (PSUs) making profits as well as losses. The factors affecting readiness to change were identified from literature. A standard questionnaire was used to explore the factors that contribute to the success/failure of organizational changes. A comparative study of readiness to change among the employees of State and Central PSUs is carried out using statistical measures. The study established that the human factor in the State PSUs of Kerala is less resistant and more favorably disposed to change. The executives of SPSUs are more willing to change than workers. Comparing the readiness to change of employees of SPSUs and CPSUs, the former is found more willing. There is no significant difference in the attitude to change between employees of SPSUs making profits as well as losses. Employees of CPSUs in Kerala that are making losses are more willing and less resistant to change, whereas those making profits are less willing and more resistant to change. The present research makes use of an instrument already developed by a previous researcher in a similar study. Further there is a limitation by the adequacy of samples used. The findings of the present research are of much assistance in developing strategies for the revival of PSUs in Kerala. Resistance to change of employees is alleged to be the militating factor against revival of the PSUs in Kerala. The present study comes out with findings not only to disprove this notion but also that the workers, in general, welcome change.
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